GOOD MORNING!!!
INDICIES OPENED ON A FLAT NOTE TRACKING LEADS FROM ASIAN INDICES WHICH WERE TRADING MIXED AS INVESTORS REMAINED ON SIDELINES SEEING THE MODEST RISE IN THE WALL STREET AS CONCERNS OVER SPIRALING CRUDE OIL PRICES WHICH TRIGGERED HIGHER. INDICES CONTINUED TO TRADE ON A SOMBER NOTE THROUGH THE FIRST HALF BUT MADE A DESPERATE ATTEMPT TO RISE ABOVE THE NEUTRAL LINE IN AFTERNOON SESSION TRACKING THE POSITIVE OPENING OF THE EUROPEAN PEERS. HOWEVER, THE INDICES SOON DRIFTED INTO THE RED ZONE AFTER TOUCHING THE HIGHPOINT OF THE DAY IN THE MID AFTERNOON SESSION AS CAUTIOUS INVESTORS CHOSE TO BOOK PROFITS AT HIGHER LEVELS. FINALLY, THE BOURSES FAILED TO KEEP THEIR HEAD ABOVE THE WATER FOR YET ANOTHER SESSION AND SETTLED WITH MARGINAL LOSSES BELOW THE PSYCHOLOGICAL 5,900. THOUGH THE BREADTH OF THE MARKETS WERE EXTREMELY POSITIVE THE VOLUMES WERE ON LOWEST IN THE LAST FEW MONTHS.
TODAY MARKETS WOULD OPEN FLAT AND REMAIN IN A NARROW RANGE. WE MAY SEE NIFTY TO REMIAN VERY VOLATILE AND RANGE BOUND AND IF THERE IS ANY FURTHER SURGE IN THE OIL PRICES AND ANY REVIVAL IN CREDIT POLICY BY RBI THEN WE MAY WITNESS SOME SELLING ALONG WITH SOME PROFIT BOOKING IN THIS FAST RALLY. EVEN WITH NEWS LILKE SURGING OIL PRICES AND OTHERS MAY NOT PUT INDICES IN A DEEP TROUBLE AS WE HAVE BEEN NOTICING THAT CONSISTENT FOREIGN FUND INFLOW, SECOND CONSECUTIVE DROP IN INDIA’S WEEKLY FOOD INFLATION NUMBERS AND EXPECTATIONS OF UPBEAT QUARTERLY EARNINGS PERFORMANCES BY HEAVYWEIGHTS COMPANIES IN FOURTH QUARTER LIMITED THE DOWNSIDE RISKS FOR THE FRONTLINE INDICES TO THE MAXIMUM EXTENT. IF NIFTY TRADES BELOW 5898 THEN LIKELY TO COME DOWN TO 5886 AND THEN TO 5867 AND ANY FURHTER BREACH BELOW THIS POINT WOULD TAKE NIFTY TO 5850 LEVELS, IF NIFTY CLOSES BELOW 5867 THEN ONE CAN RETAIN SHORTS OVER NIGHT. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5918 LEVELS THEN LIKELY TO MAKE AN UPMOVE TO 5936 AND THEN TO 5950 LEVELS ONE HAS TO STAY CAUTIOUS ON THE UPSIDE FOR TIME BEING THOUGH WE MAY WITNESS STOCK SPECIFIC MOVES TO TAKE PLACE. FERTILIZERS LOOK GOOD.
BUY MIC SL 27.60 TGT 29.25/30/30.75
POSITIONAL TRADES
BUY CHAMBALFERT TGT 100
BUY UNITECH TGT 65
BUY GMR INFRA TGT 55
BUY ABAN TGT 850
BUY BIOCON TGT 450
BUY BATA (I) TGT 550
BUY JP POWER TGT 65
