GOOD MORNING!!!
INDICES MADE A NERVOUS START AS INVESTORS REACTED ON SATURDAY’S REPORTS OF DMK'S DECISION TO WITHDRAW ITS SIX MINISTERS FROM THE UNITED PROGRESSIVE ALLIANCE (UPA) GOVERNMENT WHICH DRAGGED THE INDICES LOWER AS TRADING PROGRESSED. WORRYING INDIAN POLITICAL SITUATION TORMENTED LOCAL SENTIMENTS AND ADDING TO THIS WAS THE OTHER MOST CRUCIAL PROBLEM I.E., CRUDE SORING TO ALMOST 29 MONTH HIGH HITTING ALMOST 107$ FOR A BARREL DRAGGED THE INDICES TO INTRA-DAY LOWS. HOWEVER, MARKETS BOUNCED BACK ON SOME SHORT COVERING IN THE LATE HOURS OF TRADE AND EVENTUALLY SNAPPED THE DAY WITH LOSSES. BREADTH OF THE MARKET REMAINED WEAK. NOW INVESTORS ARE VERY MUCH WORRIED ABOUT CPI (CRUDE PRICES, POLITICAL UNCERTAINITY, INFLATION FEARS) THESE THINGS WILL DEFINITELY HAUNT THE MARKETS TILL THE TIME THINGS STABILIZE.
TODAY MARKETS WOULD OPEN NEGATIVE AND TRADE IN A NARROW BROAD RANGE AS LONG AS NIFTY BREAKS DOWN THE CRUCIAL LEVELS. IF NIFTY TRADES BELOW 5440 THEN WE CAN SEE FURTHER DOWNSIDE IN THE NIFTY 5400 LEVELS AND ANY BREAK BELOW THIS LEVEL WE CAN SEE NIFTY TO SLIDE DOWN TO MUCH LOWER LEVELS, ONE CAN STAY SHORT IF NIFTY CLOSES BELOW 5440 LEVELS. ON THE POSITIVE SIDE AS LONG AS NIFTY TRADES ABOVE 5500 ONE IS ADVISED TO STAY AWAY FROM LONGS. ON THE POSITIONAL FRONT NIFTY HAS WEAKEND AND ONE IS ADVISED TO STAY OUT OF LONG AT THE MOMENT.
BUY DR REDDY ABOVE 1610 SL 1603 TGT 1627/1641/1650
BUY UBL SL 479 TGT 495/506/512*
