GOOD MORNING!!!
INDICES CONTINUED THEIR STRUGGLE FOR THE THIRD CONSECUTIVE SESSION OF TRADE WITH ABOUT HALF A PERCENT OF LOSS. SUBDUED SENTIMENTS AHEAD OF THE CORPORATE EARNINGS SEASON COUPLED WITH SHARP SURGE IN FOOD INFLATION NUMBERS WEIGHED HEAVILY ON THE FRONTLINE INDICES. THOUGH MARKETS COMMENCED THE DAY IN THE GREEN ZONE TRACKING ASIAN MARKETS WHICH GAINED STRENGTH AFTER THE US MARKETS CLOSED ON A STRONG NOTE ON GETTING BETTER THAN EXPECTED JOBS REPORT. BUT THE FRONTLINE INDICES DRIFTED INTO THE RED SOON AND AFTERWARDS COMMENCED A SOUTH BOUND JOURNEY FOR THE DAY. INDICES GYRATED IN A NARROW RANGE THROUGH THE DAY AND HUGE BOUTS OF PROFIT TAKING IN THE DYING HOURS LED THE BOURSES WEAK. THE MARKET BREADTH WAS EXTREMELY NEGATIVE, RATE-SENSITIVE’S LIKE BANKING, REALTY AND AUTO COUNTERS THE WITNESSED THE MAXIMUM BRUNT AMID GROWING APPREHENSIONS THAT THE TOWERING FOOD INFLATION WILL PRESSURIZE THE RESERVE BANK OF INDIA (RBI), WHICH LEFT BENCHMARK POLICY RATES UNCHANGED IN THE LAST REVIEW, TO STEP DOWN FROM ITS SELF IMPOSED MORATORIUM IN NOVEMBER REVIEW AND TIGHTEN THE STANCE OF MONETARY POLICY FURTHER IN THE FORTHCOMING POLICY REVIEW SCHEDULED FOR JANUARY 25. REAL ESTATE COUNTER REMAINED IN DOLDRUMS AND LOST ABOUT TWO AND HALF A PERCENT. AUTO HEAVYWEIGHT BAJAJ AUTO PLUMMETED 3.60% ON WEDNESDAY, ON CONCERNS THAT THE TWO-WHEELER INDUSTRY GROWTH WOULD MODERATE OVER FY12-13 AND COMPETITION WOULD INTENSIFY. WHILE FERTILIZER STOCKS TOOK A DEEP CUT AFTER A GROUP OF MINISTERS (GOM) HEADED BY FINANCE MINISTER PRANAB MUKHERJEE DEFERRED ITS DECISION TO DECONTROL UREA PRICES AND BRINGING IT UNDER THE NUTRIENT BASED SUBSIDY (NBS) POLICY REGIME FOR NOW EVEN AS A PANEL OF SECRETARIES WERE ASKED TO WORK OUT A VIABLE MODEL FOR DECONTROLLING THE PRICES. AMONG THE OTHER LOSERS, CEMENT PRODUCERS INCLUDING AMBUJA CEMENT AND ACC SULKED 5.15% AND 4.25% RESPECTIVELY AHEAD OF THE EARNINGS SEASON, ON FEARS THAT COMPANIES WILL FACE COST PRESSURE ON INCREASING COAL PRICES. ON THE OTHER HAND, INFORMATION TECHNOLOGY STOCKS BUCKED THE WEAK MARKETS FOR THE SECOND STRAIGHT DAY AND WITNESSED SOME BUYING INTERESTS TODAY TAKING CUE FROM THE STRENGTH IN THE DOLLAR.
TODAY MARKETS WOULD BE RANGE BOUND TRACKING THE MIXED GLOBAL CUES, MARKETS WOULD REMAIN IN A BAND UNTIL THE RANGE IS BREACHED ON EITHER LEVELS. IF NIFTY TRADES BELOW 6064 THEN LIKELY TO COME DOWN TO 6040 LEVELS AND BREACH BELOW THIS LEVEL WOULD TAKE IT FURTHER DOWNSIDE TO 6010 AND THERE ON IT MAY TAKE SUPPORT AT 5980 LEVELS. ON THE FLIP SIDE OF IT IF NIFTY TRADES ABOVE 6100 THEN LIKELY TO MOVE UP TO 6122 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT TO 6154 LEVELS. ONE HAS TO STAY CAUTIOUS IN THE MARKETS AS INFLATION PRESSURE WILL CONTINUE TO HAUNT THE INDUSTRY.
TODAY MARKETS WOULD BE RANGE BOUND TRACKING THE MIXED GLOBAL CUES, MARKETS WOULD REMAIN IN A BAND UNTIL THE RANGE IS BREACHED ON EITHER LEVELS. IF NIFTY TRADES BELOW 6064 THEN LIKELY TO COME DOWN TO 6040 LEVELS AND BREACH BELOW THIS LEVEL WOULD TAKE IT FURTHER DOWNSIDE TO 6010 AND THERE ON IT MAY TAKE SUPPORT AT 5980 LEVELS. ON THE FLIP SIDE OF IT IF NIFTY TRADES ABOVE 6100 THEN LIKELY TO MOVE UP TO 6122 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT TO 6154 LEVELS. ONE HAS TO STAY CAUTIOUS IN THE MARKETS AS INFLATION PRESSURE WILL CONTINUE TO HAUNT THE INDUSTRY.
BUY BINANI INDS SL 252 TGT 268/275/289
BUY JINDAL SAW SL 210 TGT 214.40/217.75/219.55 (SHORT TERM 240/275)
BUY HARRISON MALAYALAM SL 88 TGT 92/95/97
POSITIONAL TRADES
BUY AFTEK TGT 20/23
BUY RELIANCE INDS TGT 1200
BUY INFOSYS TGT 4000/5000
BUY OFSS TGT 2500/3000
