GOOD MORNING!!!
MARKETS STARTED THE DAY ON A FLAT NOTE AFTER THREE CONSECUTIVE DAYS OF CONSOLIDATION, SENSE OF WEAKNESS FINALLY GOT TRICKLED IN TO THE LOCAL MARKETS WITH REAL SIGNS OF PROFIT BOOKING EMERGING ON THE LAST TRADING DAY OF THE WEEK. INVESTORS OVERLOOKED THURSDAY'S 7.1 MAGNITUDE AFTERSHOCK IN JAPAN AS THEY EXPECTED THAT DAMAGE DUE TO THE NATURAL CALAMITY WOULD BE LESS THAN INITIALLY FEARED. THE MARKETS TRADED IN THE GREEN ZONE FOR A BRIEF PERIOD AND DRIFTED INTO THE NEGATIVE TERRITORY SOONER THAN LATER AS THE INDICES MET WITH SEVERE RESISTANCE AT PSYCHOLOGICAL LEVELS. THE BOURSES MADE A DESPERATE ATTEMPT TO RISE ABOVE THE NEUTRAL LINE IN THE NOON TRADES BUT FAILED MISERABLY AS THEY WENT AHEAD TO MAKE FRESH INTRADAY LOW LEVELS IN THE LATE HOURS. SELLING PRESSURE IN HEAVYWEIGHTS GATHERED FORCE AFTER BRENT CURDE PRICES SURGED ABOVE $124 PER BARREL LEVEL, ADDING OVER A PERCENT POINT IN THE SESSION, ON REPORTS THAT FIERCE FIGHTING IN LIBYA DAMAGED THE COUNTRY'S LARGEST OIL FIELD EMERGED. THE REPORTS BUTTRESSED INTERNATIONAL OIL PRICES WHICH LED TO POSITION SQUARING ACROSS THE BOARD AS PROSPECT OF LONG-TERM SUPPLY CUTS IN CRUDE OIL UNDERMINED LOCAL MOOD AS INDIA IS DEPENDENT ON IMPORTS OF OIL TO THE EXTENT OF AROUND 80%. BOURSES FEARED THAT RISING OIL PRICES WOULD LEAD TO HEIGHTENED INFLATIONARY PRESSURE WHICH IN TURN WILL COMPEL THE RBI TO TAKE POLICY ACTIONS IN ITS ANNUAL MONETARY POLICY REVIEW MEET NEXT MONTH. HOWEVER, LATE SHORT COVERING BY INVESTORS HELPED THE BENCHMARKS TO CLAW BACK TO SOME EXTENT AFTER TOUCHING THE LOW POINT OF THE DAY TO EVENTUALLY SNAP YET ANOTHER SESSION IN THE RED TERRAIN. MARKET BREADTH TURNED NEGATIVE.
TODAY MARKETS WOULD OPEN NEGATIVE AND CONTINUE TO REMAIN ON THE NEGATIVE TERRITORY AND MAY WEAKEN ON THE CONCERNS OF OIL PRICES AS THEY ARE INCHING HIGHER AND HIGHER WHICH WILL PUT LOT OF PRESSURE ON THE INFLATION WHICH WILL IN TURN PAVE WAY TO THE REVIEW IN MONETARY POLICY, MARKETS MAY TAKE A CONSERVATIVE STAND FROM HERE ON AS THE INFLATION PRESSURE WILL HAUNT THE STREETS VERY BADLY FROM HERE ON TILL THE TIME CRUDE DOESN’T COOL. IF NIFTY TRADES BELOW 5872 ONE CAN STAY SHORT AND FOR A TARGET OF 5827 AND BREAK BELOW THIS LEVEL WOULD DRAG NIFTY DOWN TO 5800 AND BREACH BELOW THIS LEVEL WOULD DRIFT DOWN TO 5765 LEVELS. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5885 THEN ONE CAN INITIATE LONGS FOR A TARGET OF 5908 AND THEN TO 5921 AND 5944 WHICH IS REMOTE FOR TIME BEING. STAY CAUTIOUS IN THE MARKETS FOR TAKING LONG POSITIONS AS THIS IS NOT THE IDEAL TIME TO DO SO, WE MAY SEE ONLY STOCK SPECIFIC ACTIVITY ON THE UP MOVE ONLY ON THE BASIS OF RESULTS. IIP NUMBERS MAY CHANGE THE DIRECTION AT ONE STAGE BUT MAY NOT HOLD TO THE MAXIMUM, IIP NUMBERS EXPECTED TO BE POSITIVE FOR THE STREET.
BUY ESSAR OIL SL 138 TGT 143/145/149
BUY SUZLON ABOVE 55.30 SL 55 TGT 56.30/57/58
