INTRADAY TIPS FOR 16 FEBRUARY 2011

GOOD MORNING!!!

INDICES THOUGH STARTED THE TRADE ON A VERY CAUTIOUS NOTE TRACKING GLOBAL CUES WITH THE ASIAN MARKETS EXHIBITING MIXED TREND. HOWEVER THE INDICES FAILED TO CAPITALIZE ON THE INITIAL MOMENTUM IN THE MORNING SESSION AS THE FRONTLINE INDICES COULD NOT SUSTAIN THE HIGH LEVELS AND SUCCUMBED TO PROFIT BOOKING SOON AFTER THE MARKETS OPENED BUT HEFTY SHORT COVERING IN THE AFTERNOON SESSION UNDERPINNED SENTIMENTS WHICH LED THE INDICES TO BOUNCE BACK INTO THE GREEN ZONE FROM THE LOW POINT OF THE DAY. SUSTAINED BUYING ACROSS THE BOARD HELPED THE INDICES CLIMB ABOVE PSYCHOLOGICAL RESISTANCE LEVELS TO EVENTUALLY MAKING IT A POSITIVE CLOSE ON THE STRAIGHT THIRD DAY OF THE MARKET. THE BREADTH OF THE MARKET WAS POSITIVE IT TURNED OUT TO BE A VOLATILE DAY OF TRADE AS THE INDICES REBOUNDED AFTER DRIFTING TO LOWER LEVELS IN THE MORNING SESSION AS SUSTAINED POSITION BUILD UP WAS WITNESSED ACROSS THE BOARD. THE OIL & GAS WAS THE BIGGEST GAINER; THE RATE SENSITIVE BANKEX POCKET TOO SOARED AFTER WITNESSING HEFTY BUYING IN TOP BANKING SHARES. ADAG PACK HAS COMPLETELY OUT PERFORMED THE MARKETS.

TODAY MARKETS WOULD BE RANGE BOUND. IF NIFTY TRADES ABOVE 5480 THEN LIKELY TO MOVE UP TO 5500 AND THEN TO 5535 AND ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5560 LEVELS WHERE NIFTY WOULD FACE TOUGH RESISTANCE WOULD LIKELY TO COME DOWN FROM THERE ON. ONE IS ADVISED TO STAY OUT OF NIFTY IF TRADES BELOW 5520 AFTER BREAK ABOVE 5535 AND IF NIFTY TRADES BELOW 5440 BEFORE BREACHING 5500 THEN ONE IS ADVISED TO STAY SHORT BELOW 5440 LEVELS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5440 THEN ONE CAN SEE NIFTY TO MOVE DOWN TO 5400 AND THEN 5356 LEVELS. ONE IS ADVISED TO STAY CAUTIOUS THOUGH ALL STOCKS ARE MOVING POSITIVE SINCE THE STRENGTH OF THE MARKET IS NOT CLEARLY VISIBLE IN ALL THE STOCKS WE HAVE SEEN RECOVERY IN ONLY FEW HEAVY WEIGHT WHICH HAS PUSHED THE MAREKTS TO A DECENT LEVEL FROM THE RECENT FALL BUT IF ONE LOOKS AT THE MARKETS ON A BROADER PERSPECTIVE WE HAVE SEEN NOTHING MUCH HAS HAPPENED IN THE MARKET ON THE POSITIVE FRONT. IF YOU LOOK AT PORTFOLIOS OF THE INVESTORS, ALMOST MAJORITY OF THE PORTFOLIOS HAVE LOST ABOUT 25% TO 30% THOUGH IF YOU SEE THERE’S ONLY 10% DECLINE IN THE INDEX. THERE IS NO CONVICTION IN THE MARKETS, TILL THEN STAY CAUTIOUS. ANOTHER POINT OF CONCERN IS WORRYING FIGURES OF FIIS CONSTANTLY THEY ARE DRIVING THEMSELVES OUT OF THE INDIAN MARKETS WHICH IS ONE OF THE MOST NEGATIVE POINT FOR OUR MARKETS.

INTRADAY TIPS FOR 15 FEBRUARY 2011

GOOD MORNING!!!

CUPID STRUCK TO THE STOCK MARKETS ALL OVER THE WORLD AND INDICES CONTINUED ITS PULLBACK RALLY, INITIALLY STARTED WITH GAP-UP TRACKING THE STRONG ASIAN MARKETS, WHICH WERE IN RALLY MOOD SINCE BEGINNING AND CLOSED IN GREEN NOT ONLY THE ASIAN BUT ALSO THE ENTIRE WORLD EQUITY INDICES SURGED ON HOPES THAT GLOBAL ECONOMIC RECOVERY WILL STRENGTHEN AS OIL PRICES RETREATED AFTER THE POLITICAL TENSIONS SUBSIDE WITH THE RESIGNATION OF EGYPTIAN PRESIDENT HOSNI MUBARAK. WITH THE CHINESE SHANGHAI COMPOSITE SHOOTING UP WITH THE NEWS THAT CHINA’S $5.88 TRILLION GDP SURPASSED JAPAN’S $5.47 TRILLION IN 2010, THEY WENT CRAZY AND CLOSED OVER 2.5% WHICH HAS IGNITED AND INFLUENCED MAJORITY OF THE ASIAN INDICES NOT ONLY THE EXTERNAL NEWS BUT ALSO THE INTERNAL NEWS OF THE IMPRESSIVE RESULTS, ESPECIALLY FROM TATA MOTORS AND MAHINDRA SATYAM, TOO CONTRIBUTED TO THE BUOYANT MOOD OF THE MARKETS IN THE MID MORNING SESSION. INDICIES GAINED FROM STRENGTH TO STRENGTH AND RE-CONQUERED CRUCIAL LEVELS TO EVENTUALLY SETTLE AROUND THE HIGH POINT OF THE DAY. THE MARKET BREADTH OF THE MARKET WAS EXTREMELY OPTIMISTIC AND CLOSED ABOVE THE PSYCHOLOGICAL LEVELS.

TODAY MARKETS WOULD BE FLAT AND RANGE BOUND, IF NIFTY TRADES ABOVE 5460 THEN LIKELY TO MAKE AN UPMOVE TO 5498 LEVELS AND ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5547 LEVELS ONE IS ADVISED TO STAY CAUTIOUS AFTER NIFTY REACHES 5547 AND AVOID POSITIONALLY AFTER NIFTY REACHES 5547 AS MARKETS LIEKLY TO SEE SOME DOWNSIDE ANYWHERE AFTER REACHING 5547 AND WOULD TAKE A U-TURN FROM THERE ON, ONE IS ADVISED TO STAY VERY CAUTIOUS IN THE MARKETS AFTER IT ATTAINS 5547 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5440 THEN LIKELY TO COME DOWN TO 5408 LEVELS AND ANY BREAK BELOW 5400 LEVEL WOULD TAKE NIFTY TO 5366 LEVELS ONE IS ADVISED TO BE ON THE POSITIVE SIDE FOR ANOTHER 90 POINTS IN NIFTY THERE AFTER WE MAY HEAD TOWARDS SOUTH AND BREACH PREVIOUS LOWS TOO.