GOOD MORNING!!!
IT TURNED OUT TO BE ANOTHER PATHETIC TRADING SESSION FOR THE INDIAN STOCK INDICES WHICH GOT CLOBBERED OUT OF SHAPE BY AROUND ONE AND HALF A PERCENTAGE POINTS ON THE EXPIRY DAY OF JANUARY F&O SERIES. THE BULLS REMAINED UNDER COVERS ALL THROUGH THE DAY AS BEARS PARTIED HARDER AFTER THE MINISTRY OF COMMERCE AND INDUSTRY RELEASED THE DISAPPOINTING FOOD INFLATION NUMBERS WHICH STAYED ABSOLUTELY FLAT AT 15.57% ON ANNUAL BASIS DURING WEEK-ENDED JAN 15 COMPARED WITH 15.53% RECORDED IN THE PREVIOUS WEEK. INITIALLY MARKETS GOT OFF TO AN OPTIMISTIC NOTE TRACKING THE ASIAN INDICES WHICH TRADED MOSTLY IN THE GREEN AS SENTIMENTS REMAINED OPTIMISTIC ON THE BACK OF THE US FEDERAL RESERVE'S STATEMENT THAT IT WILL CONTINUE TO TAKE EFFORTS TO SUPPORT THE ECONOMIC GROWTH ALONG WITH THE BETTER THAN EXPECTED US' NEW-HOME SALES DATA. HOWEVER, THE FRONTLINE INDICES FAILED TO CAPITALIZE ON THE INITIAL MOMENTUM AND DRIFTED INTO THE NEGATIVE ZONE AND DETERIORATED FURTHER AS THE DAY PASSED BY. HOWEVER, THE INDICES GYRATED IN A NARROW RANGE THROUGH THE FIRST HALF AND HUGE BOUTS OF PROFIT TAKING WAS WITNESSED IN THE LATE SECOND HALF OF THE SESSION ENSURING THAT THE BOURSES GO HOME WITH LARGE CUTS OF AROUND ONE AND HALF A PERCENT IN THE ABSENCE OF ANY SHORT COVERING IN LATE TRADE. MARKET BREADTH REMAINED WEAK THROUGHOUT THE DAY, ON THE SECTORAL FRONT THE MAJOR LOOSERS WERE REAL ESTATE AND PHARMA LOOSING 3.5% AND 2.61%. ALL THE SECTORAL INDICES WERE TRADING IN RED BY THE CLOSE OF THE TRADE.
TODAY MARKETS LOOKS FLAT AND TO REMAIN NARROWLY RANGE BOUND IF NIFTY TRADES BELOW 5597 THEN LIKELY TO MAKE ITS DOWNWARD JOURNEY TO 5540 LEVELS AND 5500 ANY BREACH AND CLOSE BELOW 5597 WOULD DRAG NIFTY TO 5400 AND THERE AFTER TO 5200 LEVELS. ON THE FLIP SIDE AS LONG AS NIFTY TRADES ABOVE 5597 WE CAN SEE NIFTY TO MOVE UP TO 5646 AND THEN TO 5692 LEVELS IN THE NEAR TERM 5765 WOULD BE A MAJOR RESISTANCE. IF NIFTY TRADES ABOVE ANYWHERE ABOVE 5597 IS ONLY BUY ON INTRADAY AND NOT ON POSITIONAL AND ONCE NIFTY BREACHES 5597 AND TRADES STAY AWAY FROM LONGS. ON THE POSITIONAL FRONT WE ARE IN A VERY NEGATIVE ZONE THOUGH 5597 IS A CRUCIAL SUPPORT AND WE ARE HOVERING AT THE SAME PLACE SO ONE IS CAUTIONED ON THIS ON THE LONG SIDE IF NIFTY TRADES ABOVE 5750 WE CANT AFFORD TO HOLD ANY LONG POSITIONS IN NIFTY, BETTER TO DRIVE OURSELF WITH THE TREND.
BUY NATIONAL ALUMINIUM SL 390 TGT 396/400/405
SELL BRFL BELOW 240 SL 243.6 TGT 234/228/222/216 (SHORT TERM)
