GOOD MORNING!!!
A LACKLUSTER DAY OF TRADE ENDED WITH ON A QUIET NOTE WITHOUT ANY MAJOR TRIGGERS IN THE MARKETS. IT IS A DAY OF CONSOLIDATION OF LARGE CAPS, WHICH TRADED IN A NARROW RANGE FOR THE ENTIRE DAY. THE KEY BENCHMARK INDICES GOT A SUBDUED START TRACKING THE SLUGGISH ASIAN MARKETS FOLLOWING CHINA'S LATEST TIGHTENING MEASURES TO FIGHT INFLATION. AFTER TOUCHING THE LOW POINT OF THE DAY, INDICES SHOWED HIGHLY VOLATILE TREND IN DAY’S TRADE LACKING ANY MAJOR TRIGGERS. THERE WAS SOME RECOVERY IN THE SECOND HALF WHICH SAW THE INDICES TOUCH INTRADAY HIGH LEVELS WHICH PROVED TO BE SHORT LIVED WHERE MAJORITY OF THE INVESTORS TRIED TO SQUARE OFF THEIR POSITIONS AT THE HIGH LEVELS WHICH BROUGHT THE BOURSES OFF THE DAY’S HIGH TO EVENTUALLY END THE CHOPPY TRADING SESSION IN THE POSITIVE TERRITORY BUT WITH ONLY MODEST GAINS. THE MARKET BREADTH WAS EXTREMELY NEGATIVE. THE MAJOR SET BACK IN THE MARKET WAS, THE SELLING IN ADAG PACK FOLLOWING THE MARKET REGULATOR SEBI PASSING A CONSENT ORDER WITH REGARD TO ITS PROBE INTO POSSIBLE VIOLATION OF SECURITIES MARKET NORMS BY R INFRA AND RNRL.
TODAY MARKETS LOOK FLAT AND RANGE BOUND, ONE HAS TO REMEMBER FOR THAT NIFTY IS IN A VERY CRUCIAL ZONE, THOUGH WE MAY LIKELY TO HAVE LITTLE RECOVERY IT WOULD BE ON A VERY SHORT NOTE AND LIKELY TO COME DOWN MUCH MORE IF IT BREACHES 5648 LEVELS WHICH IS CONSIDERED TO BE A 200 EMA, AS LONG AS NIFTY TRADES AND CLOSES ABOVE 5648 LEVELS ONE CAN CONSIDER THIS AS A CRUCIAL SUPPORT AND CAN RETAIN LONGS BUT ONCE THIS LEVEL IS BREACHED AND CLOSED AT THE END OF THE SESSION THEN ONE IS ADVISED TO STAY AWAY FROM LONGS AS WE MAY LIKELY TO HEAD MUCH LOWER LEVELS. ONE CAN GO LONG IN TODAYS TRADE WITH A STOPLOSS OF 5534, WE CAN SEE NIFTY TO 5682 AND THEN TO 5700 LEVELS AND ANY BREAK ABOVE THIS POINT WOULD TAKE IT TO 5740 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5634 THEN LIKELY TO MAKE ITS DOWNWARD JOURNEY TO 5597 AND ANY BREAK BELOW THIS POINT WOULD DRAG NIFTY TO 5544. ANY CLOSE BELOW 5648 IS CONSIDERED TO BE WEAK BUT ANY CLOSE BELOW 5597 WOULD BE CONSIDERED TO HAVE VERY GOOD SELLING AND SEE BEARS MAKING ABSOLUTE BLAST IN THE DAYS AHEAD.
BUY ISPAT INDS SL 24 TGT 24.65/24.80/25
BUY NELCAST SL 117 TGT 121/123/126.70
BUY HIND ZINC SL 1357 TGT 1378/1392/1411
