INTRADAY TIPS FOR 17 JANUARY 2010

GOOD MORNING!!!

MARKETS FAILED TO GAIN ANY KIND OF MOMENTUM INITIALLY AS GLOBAL CUES REMAINED WEAK. ASIAN BOURSES TRADED IN THE RED ZONE AS INVESTORS OPTED TO TAKE PROFITS OFF THE TABLE TRACKING THE WEAK CLOSE IN OVERNIGHT US MARKETS. THE EQUITY INDICES IN INDIA HAVE BEEN SMASHED TO SMITHEREENS FOR THE SECOND STRAIGHT DAY OF TRADE AS DREADFUL DECEMBER INFLATION NUMBERS CONTINUED TO TORMENT THE LOCAL EQUITY INDICES AFTER A TEPID IIP NUMBERS. THE FRONTLINE INDICES REMAINED RANGE BOUND IN THE MORNING SESSION BUT IN THE LATE MORNING TRADE THE INDICES ERASED ALL THE LOSSES AND MANAGED TO BREAK IN TO THE GREEN AS IT STOCKS SUPPORTED THE PULL BACK. AFTER TRADING IN THE POSITIVE TERRITORY FOR A COUPLE OF HOURS, SELLING PRESSURE RE-EMERGED AS INVESTORS LACKED CONVICTION AND THEY SQUARED OFF POSITIONS. EVENTUALLY, THE BOURSES SUCCUMBED TO THE PRESSURE AND TUMBLED LIKE A HOUSE OF CARDS TO SETTLE WITH DEEP CUTS OF OVER ONE AND HALF PERCENT AS THERE WAS NO SHORT COVERING. VOLUMES WERE SUBSTANTIALLY HIGHER. THE MARKET BREADTH WAS EXTREMELY NEGATIVE.

MARKETS ARE NOW AT A CRUCIAL JUNCTURE WHERE, NIFTY LIKELY TO TAKE SUPPORT AT 5600 TO AVOID FURTHER BLEEDING. TODAY, IF NIFTY TRADES BELOW 5640 THEN LIKELY TO COME DOWN TO 5597 LEVELS AND ANY BREACH BELOW THIS LEVEL WOULD TAKE NIFTY TO 5540 LEVELS AND ANY CLOSE BELOW 5600 WOULD DRAG NIFTY FURTHER DOWN IN COMING DAYS TO 5380 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES 5670 THEN LIKELY TO MAKE ITS UPWARD JOURNEY TO 5720 LEVELS AND FURTHER BREACH ABOVE THIS POINT WOULD TAKE IT TO 5773 LEVELS. ONE HAS TO STAY CAUTIOUS IN THE MARKET, AVOID HEAVY BUYING, HEDGE YOUR POSITIONS COMPLETELY. MARKETS ARE SHOWING NO STRENGTH SO STAY CAUTIOUS.

BUY HARRISON MALAYALAM SL 88 TGT 93/96/100