INTRADAY TIPS FOR 30 NOVEMBER 2009

GOOD MORNING!!!

INDICES HAVE RECOVERED HUGE INTRADAY LOSSES AFTER EUROPEAN STOCKS RECOVERED AFTER THE OPENING. NEWS THAT CHINA HAS PLEDGED TO STICK WITH A PRO-GROWTH STANCE IN 2010 ALSO HELPED. THE MARKET RECOVERY AFTER A HEAVY SELL-OFF EARLIER. BROADER FEARS THAT GLOBAL FINANCIAL MARKETS HAVE NOT HEALED PROPERLY SINCE LAST YEAR'S CRISIS, AND THAT THE DUBAI PROBLEM COULD EXPOSE THESE WEAKNESSES. INTRADAY VOLATILITY WAS HIGH. INDIA AND THE UNITED ARAB EMIRATES (UAE), OF WHICH DUBAI IS A MEMBER, ARE SEPARATED BY THE ARABIAN SEA AND CLOSELY LINKED BY THE MILLIONS OF INDIANS WHO WORK IN THE REGION. INDIANS MAKE UP ABOUT 40% OF THE UAE'S POPULATION, ACCOUNTING FOR 10% TO 12% OF INDIA'S INWARD REMITTANCES, THE UAE WAS THE SECOND-BIGGEST EXPORT DESTINATION FOR INDIA DURING THE NINE MONTHS THROUGH DECEMBER 2008, ACCOUNTING FOR $14.6 BILLION, OR 11.15% OF INDIA'S TOTAL. ANOTHER IMPORTANT MATTER OF CONCERN IN THE PRESENT SITUATION IS THE FOOD PRICE INDEX WHICH ROSE 15.58% AND PRIMARY ARTICLE INDEX ROSE 11.04% IN 12 MONTHS TO 14 NOVEMBER 2009,
TODAY MARKETS WOULD POSITIVE WITH RANGE BOUND AND THE HEALTH OF THE MARKET STILL IN A BEARISH PHASE ON A POSITIONAL BASIS ONE HAS TO LOOK ABOVE POINTS IN VIEW BEFORE TAKING ANY POSITIONS BUT THE TREND AS OF NOW REMAINS POSITIVE ON INTRADAY TERMS BUT ONE HAS TO TAKE PROFITS AT REGULAR INTERVALS. TODAY IF NIFTY TRADES ABOVE 5011 THEN MARKET WOULD GO TO 5070 ONE CAN GO LONG INITIALLY FOR A TARGET OF 5011 IN THE MARKET BUT ABOVE THIS LEVEL IF NIFTY HOLDS WITH VOLUMES THEN IT IS EVIDENT THAT WE SEE NIFTY TO TOUCH 5070. ON THE DOWN SIDE IF NIFTY TRADES BELOW 4939 ONLY THEN ONE CAN GO SHORT FOR AN IMMEDIATE TARGET OF 4843.
BUY RELCAP SL 824.7 TGT 846
BUY SUZLON SL 72 TGT 75/79
BUY JSW STEEL SL 932 TGT 942/960/977
BUY DLF SL 342 TGT 350/355

INTRADAY TIPS FOR 27 NOVEMEBER 2009

GOOD MORNING!!!

WEAKNESS IN EUROPEAN MARKETS FOLLOWING A SETBACK IN CHINESE STOCKS TRIGGERED A SELL-OFF ON THE DOMESTIC BOURSES IN THE SECOND HALF OF THE DAY'S TRADING SESSION. WORLD STOCKS FELL AS NEWS OF DUBAI ASKING FOR A CREDITOR STANDSTILL AT DUBAI WORLD AND VIETNAM'S CURRENCY DEVALUATION, INCREASED INVESTORS' AVERSION TO RISK. SELLING PRESSURE WAS CONSPICUOUS IN BANKING, IT AND OIL & GAS STOCKS. THE MARKET BREADTH WAS WEAK WITH SMALL AND MID-CAP STOCKS UNDER SELLING PRESSURE. INTRADAY VOLATILITY WAS HIGH AS TRADERS ROLLED OVER POSITIONS IN THE DERIVATIVE SEGMENT FROM NOVEMBER 2009 SERIES TO DECEMBER 2009 SERIES AHEAD OF THE EXPIRY. THE MARKET CUT LOSSES AFTER AN INITIAL SLIDE. HOWEVER, THE INTRADAY RECOVERY PROVED SHORT-LIVED. THE MARKET WEAKENED IN EARLY AFTERNOON TRADE AS ASIAN STOCKS FELL. AS PER REPORTS, ROLLOVER OF NIFTY POSITIONS WAS ABOUT 64% WHILE MARKET WIDE ROLLOVER STOOD AT 66% AT THE END OF WEDNESDAY'S (25 NOVEMBER 2009) TRADE. IN INDIVIDUAL STOCKS, HINDUSTAN UNILEVER, CAIRN INDIA, INDIA CEMENTS, MARUTI SUZUKI AND POWER GRID CORPORATION HAVE WITNESSED HIGH ROLLOVER. CHINESE STOCKS TUMBLED ON THURSDAY, LED BY LOSSES IN BANK STOCKS, AS INVESTORS FLED THE MARKET AMID MOUNTING WORRIES THAT THE GOVERNMENT MAY TAKE STEPS TO CLAMP DOWN ON SURGING ASSET PRICES. BANKS FELL ON CONCERNS ABOUT SHRINKING LENDING AND A POSSIBLE NEED TO RAISE FUNDS NEXT YEAR TO SHORE UP THEIR CAPITAL. MEANWHILE, DUBAI'S FINANCIAL HEALTH HAS COME UNDER SCRUTINY AFTER A MAJOR, GOVERNMENT-OWNED INVESTMENT COMPANY ASKED FOR A SIX-MONTH DELAY ON REPAYING ITS DEBTS. DUBAI WORLD, WHICH HAS TOTAL DEBTS OF $59BN IS ASKING CREDITORS IF IT CAN POSTPONE ITS FORTHCOMING PAYMENTS UNTIL MAY NEXT YEAR. DUBAI WORLD HAS ALSO APPOINTED GLOBAL ACCOUNTANCY GROUP DELOITTE TO HELP WITH ITS FINANCIAL RESTRUCTURING. THE COMPANY HAS BEEN HIT HARD BY THE GLOBAL CREDIT CRUNCH AND RECESSION. IT WAS DUE TO REPAY $3.5BN OF ITS DEBTS NEXT MONTH. THE REQUEST FOR A DELAY IN REPAYMENTS LED TO MAJOR CREDIT RATINGS AGENCIES DOWNGRADING A NUMBER OF STATE-BACKED COMPANIES. MEANWHILE, VIETNAM'S STOCK MARKET TUMBLED AFTER THE NATION'S CENTRAL BANK DEVALUED THE CURRENCY BY AROUND 5% AGAINST THE US DOLLAR AND RAISED INTEREST RATES BY A PERCENTAGE POINT TO 8% FROM 1 DECEMBER 2009. CLOSER HOME, THE FOOD PRICE INDEX ROSE 15.58% AND PRIMARY ARTICLE INDEX ROSE 11.04% IN 12 MONTHS TO 14 NOVEMBER 2009, DATA RELEASED BY THE GOVERNMENT TODAY SHOWED. THE FUEL PRICE INDEX DECLINED 1.51%.

TODAY MARKETS WOULD OPEN GAP DOWN WITH LOT OF PRESSURE FROM THE ABOVE FACTORS. TODAY IF NIFTY TRADES BELOW 4997 IT IS LIKELY TO TOUCH 4939 WHICH IS GOOD SUPPORT BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 4844 CLOSING ANYTHING BELOW 4900 IS CONSIDERED TO BE WEAK AND WOULD LEAD NIFTY 4720 LEVELS. AND ON THE UPSIDE ONE HAS TO GO LONG ONLY ABOVE 5032.
SELL CAIRN INDIA SL 281 TGT 266/258/246
SELL STERLITE SL 851 TGT 833/821/810
SELL RELIANCE SL 1066 TGT 1040/1031/1026
SELL ICICI BANK SL 866 TGT 846/837/826
SELL TATASTEEL SL 551 TGT 532/522/516

INTRADAY TIPS FOR 26 NOVEMBER 2009

GOOD MORNING!!!

INDICES PARED GAINS AFTER HITTING THEIR HIGHEST LEVEL IN MORE THAN A MONTH. CONCERNS THAT A GLUT IN SHARE SALES MAY SOAK AVAILABLE LIQUIDITY IN THE SECONDARY MARKET PULLED THE MARKET OFF THE HIGHER LEVEL. INDEX HEAVYWEIGHT RELIANCE INDUSTRIES ROSE TODAY AFTER THE FIRM REOPENED RETAIL FUEL OUTLETS. BANKING AND FMCG STOCKS GAINED. BUT REALTY STOCKS FELL. THE MARKET BREADTH TURNED WEAK, EASING FROM A STRONG BREADTH IN EARLY TRADE. THE MARKET RECOVERED AFTER FALLING INTO THE RED FOR A BRIEF PERIOD IN EARLY TRADE. THE MARKET EXTENDED GAINS LATER. ROLLOVER IN NIFTY FUTURES WAS ABOUT 54% AT THE END OF TUESDAY'S (24 NOVEMBER 2009) TRADING. ROLLOVER IN MIN NIFTY FUTURES WAS ABOUT 33%. THE MARKET WIDE ROLLOVER WAS ABOUT 48%. IN INDIVIDUAL STOCKS, HINDUSTAN UNILEVER, MARUTI SUZUKI, POWER GRID CORPORATION, RELIANCE POWER AND BHARAT HEAVY ELECTRICALS (BHEL), HAVE WITNESSED HIGH ROLLOVER. CONCERNS THAT A GLUT IN SHARE SALES MAY SUCK LIQUIDITY FROM THE SECONDARY MARKET PULLED THE MARKET OFF THE HIGHER LEVEL. MORGAN STANLEY EXPECTS INDIAN FIRMS TO RAISE ROUGHLY $70 BILLION THROUGH SHARE SALES OVER THE NEXT THREE YEARS, MORGAN STANLEY'S INDIA COUNTRY HEAD NARAYAN RAMACHANDRAN SAID AT AN INVESTMENT SUMMIT ON WEDNESDAY, 25 NOVEMBER 2009. STAKE SALES IN STATE-RUN FIRMS WILL ACCOUNT FOR $10-$15 BILLION OF THAT, RAMACHANDRAN SAID. THE UPCOMING AUCTION OF THIRD-GENERATION MOBILE SPECTRUM WILL ALSO SPUR POTENTIALLY BILLIONS OF DOLLARS IN EQUITY RAISING, ALTHOUGH NOT NECESSARILY FROM THE PUBLIC MARKETS, HE SAID. INDIAN COMPANIES HAVE RAISED ABOUT $18 BILLION IN EQUITY THUS FAR THIS YEAR TO REPAY HIGH-COST DEBT OR TO FUND EXPANSION PLANS. LAST YEAR, INDIAN FIRMS RAISED $7.2 BILLION IN EQUITY. MEANWHILE, THE FINANCE MINISTRY ON TUESDAY CONSTITUTED A WORKING GROUP TO SUGGEST WAYS OF RATIONALIZING EXISTING REGULATIONS RELATING TO FOREIGN PORTFOLIO INVESTMENTS, IN ORDER TO ENCOURAGE FOREIGN INVESTMENT INTO THE COUNTRY. THE GROUP WILL REVIEW THE LEGAL AND REGULATORY FRAMEWORK TO SIMPLIFY RULES RELATED TO OVERSEAS INVESTMENT IN THE FORM OF FOREIGN INSTITUTIONAL INVESTMENT (FII), FOREIGN VENTURE CAPITAL INVESTMENT (FVCI), PRIVATE EQUITY AND NRI INVESTMENT, ACCORDING TO NOTIFICATION ISSUED BY THE FINANCE MINISTRY. THE PANEL WILL FURTHER STUDY ARRANGEMENTS RELATING TO USE OF PARTICIPATORY NOTES (PN) AND SUGGEST ANY CHANGES REQUIRED TO INCREASE TRANSPARENCY. THE COMMITTEE, WHICH WILL SUBMIT ITS REPORT WITHIN FOUR MONTHS, WILL IDENTIFY CHALLENGES IN MEETING THE FINANCING NEEDS OF THE LNDIAN ECONOMY THROUGH THE FOREIGN INVESTMENT. IT WILL SUGGEST SPECIFIC SHORT, MEDIUM AND LONG TERM LEGAL, REGULATORY AND OTHER POLICY CHANGES. THE GROUP WILL FURTHER REVISIT THE ROLE OF TRANSACTION TAXES. CAPITAL MARKET TRANSACTIONS ARE SUBJECT TO SECURITIES TRANSACTION TAX (STT) AND ALSO A 15% SHORT-TERM CAPITAL GAINS TAX. THERE IS DEBATE IN THE POLICY ESTABLISHMENT AS TO WHETHER THE STT SHOULD BE CONTINUED AND WHETHER ORDINARY INCOME AND CAPITAL GAINS NEED TO BE TAXED AT DIFFERENT RATES.

TODAY MARKETS WOULD BE HIGHLY VOLATILE WITH FNO CONTRACT EXPIRING FOR THE MONTH OF NOVEMBER. IF NIFTY TRADES BELOW 5111 THEN WOULD GO DOWN TO 5070 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5032 AND ON THE UPSIDE IF NIFTY TRADES ABOVE 5111 THEN WOULD TAKE NIFTY TO 5159 AND TRADING ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5277 IN A VERY SHORT TERM, ANY CLOSE ABOVE 5159 IS CONSIDERED TO BE BULLISH AND ANY CLOSE BELOW 5066 IS CONSIDERED TO BE WEAK.

BUY PSL ABOVE 150.05 TGT 155/159/165**
SELL RELINFRA BELOW 1053 SL 1066 TGT 1045/1032
SELL RELIANCE CAP BELOW 850 SL 856 TGT 843/837
SELL DLF BELOW 360 SL 364 TGT 354/351
SELL JSWSTEEL BELOW 1000 SL 1014 TGT 986/970
SELL TATASTEEL SL 566.8 TGT 548/539
SELL JINDALSTEEL BELOW 693 SL 702 TGT 679/672
POSITIONAL TRADES
BUY SHARP INDIA TGT 100%

INTRADAY TIPS FOR 25 NOVEMBER 2009

GOOD MORNING!!!

VOLATILITY WAS IMMENSE WITH KEY INDICES MOVING UP AND DOWN FOR THE ENTIRE DAY. A SHARP SLIDE IN CHINESE STOCKS AND WEAK EUROPEAN MARKETS WEIGHED ON INVESTOR SENTIMENT ALONG WITH FNO EXPIRY NEARING. INDEX HEAVYWEIGHT RELIANCE INDUSTRIES (RIL) FELL. METAL AND FMCG STOCKS ALSO FELL. BUT IT STOCKS GAINED. THE MARKET BREADTH WAS NEGATIVE, COMPARED TO A STRONG BREADTH IN EARLY TRADE. BANK STOCKS LED DECLINE IN WORLD STOCKS AFTER GLOBAL RATING AGENCY STANDARD & POOR'S SAID ON MONDAY IT FOUND MOST BANKS IN A GLOBAL STUDY WERE WEAKLY CAPITALIZED, WITH CITIGROUP, UBS AND MIZUHO FINANCIAL GROUP MORE THAN TWO-THIRDS BELOW THE AVERAGE. MANY GLOBAL STOCK INVESTORS HAVE TURNED CAUTIOUS HEADING INTO THE YEAR-END, WANTING TO LOCK IN PROFITS AFTER A VERY GOOD RUN IN 2009

TODAY MARKET WOULD BE HIGHLY VOLATILE AS THE FNO EXPIRY IS TOMORROW. MARKETS ARE AT A VERY CRUCIAL PHASE OF RESISTANCE SO ONE HAS TO BE VERY CAUTIOUS ON THE UPSIDE. WE WOULD SUGGEST TO AVOID HUGE VOLUMES TILL FNO EXPIRY. TODAY MARKET MAY BE WEAK AS THE CLOSING WAS WEAKER ALONG WITH THE GLOBAL QUES SHOWING NEGATIVE TO FLAT. NIFTY MAY PHASE A TOUGH RESISTANCE AT THESE LEVELS. TODAY IF NIFTY TRADES BELOW 5073 THEN WILL TAKE NIFTY TO 5045 AND TRADING BELOW THIS LEVEL NIFTY WOULD TOUCH 5020 LEVELS BUT BREACH BELOW 5000 WOULD TAKE NIFTY ON THE NEGATIVE FRONT. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5073 THEN WE CAN SEE NIFTY TO TOUCH 5096 AND TRADE ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5124.
BUY M&M SL 1059 TGT 1080/1089
BUY ESCORTS SL 111 TGT 119.7/122/124.9
BUY LANCO ABOVE 570 SL 564 TGT 574/579/584
SELL JINDAL STEEL SL 711 TGT 698/695/680
SELL ABAN BELOW 1348 SL 1366 TGT 1333/1316/1301

SELL JINDAL SAW SL 901 TGT 877/856/831
POSITIONAL TRADES
BUY SUNSHIELD CHEMICAL (530845) TGT 100
BUY UNI ABEX ALLOYS (504605) TGT 300/450/600
BUY MEDICAMEN BIOTECH LTD (531146) TGT 45

INTRADAY TIPS FOR 24 NOVEMBER 2009

GOOD MORNING!!!

VOLATILITY RULED THE KEY IN THE LAST TRADING SESSION. MARKET AFTER OPENING BELL WAS AROUND 40 POINTS ON THE UPSIDE AND CONTINUED TO REMAIN ON THE POSITIVE TERRITORY TILL THE END OF THE DAY AND INDICES (NIFTY AND SENSEX) ATTAINED THEIR HIGHEST CLOSING LEVELS IN MORE THAN A MONTH. FIRM GLOBAL STOCKS AIDED THE RALLY ON THE DOMESTIC BOURSES. INDEX HEAVYWEIGHT RELIANCE INDUSTRIES (RIL) LED THE RALLY. THE STOCK SURGED MORE THAN 3% YESTERDAY, AFTER THECOMPANY SAID IT HAS PUT A BID TO ACQUIRE BANKRUPT CHEMICALS MAKER LYONDELLBASELL INDUSTRIES. METAL, FMCG AND BANKING AND AUTO STOCKS ROSE. THE MARKET BREADTH WAS STRONG. TRADERS ROLLED OVER POSITIONS IN THE DERIVATIVE SEGMENT FROM NOVEMBER 2009 SERIES TO DECEMBER 2009 SERIES AHEAD OF THE EXPIRY OF THE NEAR MONTH NOVEMBER 2009 CONTRACTS ON THURSDAY, 26 NOVEMBER 2009 A WEAK DOLLAR BOOSTED WORLD STOCKS, AS TRADERS BORROW AGAINST THE LOW-YIELDING GREENBACK TO REINVEST ELSEWHERE IN WHAT'S KNOWN AS THE CARRY TRADE. THE DOLLAR INDEX, WHICH TRACKS THE PERFORMANCE OF THE GREENBACK AGAINST A BASKET OF OTHER MAJOR CURRENCIES, FELL 0.7% TO 75.153 IN RECENT TRADING. THE DOLLAR HAS TUMBLED THIS YEAR ON SPECULATION THE US FEDERAL RESERVE WILL KEEP INTEREST RATES LOW FOR A PROLONGED PERIOD OF TIME TO AID RECOVERY IN THE US ECONOMY.

TODAY MARKET WOULD BE VOLATILE, MARKET AS TOLD YESTERDAY IF IT CROSSES 5085 THEN WE CAN SEE NIFTY TO MOVE TO 5159. WE MAY SEE NIFTY TO MOVE TO 5159 IN TODAYS SESSION AND NIFTY IS EXPECTED TO REMAIN VERY VOLATILE IN THE NEXT 2 DAYS OF TRADING AHEAD OF EXPIRY, NIFTY MAY FACE A STILL RESISTANCE AROUND 5159 ZONES AND ONE IS ADVISED TO STAY CAUTIOUS AT THIS LEVEL BEFORE THIS EXPIRY BUT ANY CLOSE ABOVE 5159 IN NIFTY TODAY MAY TAKE NIFTY TO 5276 LEVELS BUT ONE IS ADVISED TO STAY VERY CAUTIOUS AND TRADE WITH VERY LOW QUANTITY. AND ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5080 THEN ONE CAN GO SHORT WITH A STOPLOSS OF 5121 FOR A TARGET OF 5010 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 4937 ANY CLOSE BELOW 4980 IS CONSIDERED TO BE WEAK AND ONE CAN TAKE POSITIONAL SHORTS.
BUY AXIS BANK SL 984 TGT 1004/1018
BUY TATASTEEL SL 565 TGT 577/584
INTRADAY CALLS WILL BE GIVEN DURING MARKET HOURS TO THE REGISTERED CLIENTS

INTRADAY TIPS FOR 23 NOVEMBER 2009

GOOD MORNING!!!

INDICES EXTENDED GAINS TO HIT FRESH INTRADAY HIGHS AT THE FAG END OF THE TRADING SESSION ON FIRM EUROPEAN STOCKS. COMMENTS BY THE DEPUTY CHAIRMAN OF THE GOVERNMENT'S PLANNING COMMISSION THAT THE GOVERNMENT IS NOT CONSIDERING IMPOSING A TAX TO CURB AN INFLUX IN OVERSEAS FUNDS ALSO HELPED EASE WORRIES OF LIKELY MEASURES FROM POLICYMAKER TO STEM INFLOWS. INITIALLY THE MARKET OPENED IN RED AND RECOVERED LITTLE IN THE MORNING SESSION AND PROVED TO BE SHORT LIVED, MARKET NOSE DIVED TO TOUCH OUR TARGETS OF 4937 AS TOLD AND THERE AFTER MARKET RECOVERED IN THE MID AFTERNOON FROM LOWER LEVELS WITH MORE INTENSE BUYING GIVING NO ROOM TO SHORT SELLERS AND HAS HIT OUR UPPER TARGETS AS GIVEN.
TODAY MARKETS WOULD BE RANGE BOUND UNTIL THE LEVELS ARE BREACHED. THIS IS THE FIRST DAY OF LAST WEEK FOR THE SETTLEMENT OF FNO EXPIRY. THERE MAY BE LOT OF VOLATILITY IN THE WEEK AHEAD. NIFTY HAS BREACHED GOOD RESISTANCE LEVEL AND CLOSING OF NIFTY IS CONSIDERED TO BE GOOD AND NIFTY CAN BE CONSIDERED BULLISH IF IT CLOSES ABOVE 5085. ON THE CLOSING BASIS IF NIFTY CLOSES ABOVE 5085 IS A SIGN OF FURTHER UPMOVE TO 5159. AND ON THE DOWNSIDE IF NIFTY TRADES BELOW 5034 THEN WOULD COME DOWN TO 4998 AND BELOW THIS WE CAN SEE NIFTY TO SLIDE DOWN TO 4947 AND THEN TO 4911 SO ONE HAS TO BEAR IN MIND THAT 5085 IS A STRONG RESISTANCE AND CLOSING ABOVE THIS WOULD TAKE NIFTY SERIOUSLY UPSIDE SO STAY CAUTIOUS WITH THIS LEVEL. WATCH BANKING SECTOR.
BUY ACC SL 753 TGT 779/788/804
BUY TATASTEEL SL 545 TGT 560/565
BUY RANBAXY SL 419 TGT 430/434/438
BUY IDBI SL 126 TGT 129/130.70
SELL WELSPUN SL 285 TGT 274/267
SELL TITAN BELOW 1352 SL 1367 TGT 1330/132
POSITIONAL TRADES
BUY BHARTI SHIPYARD @ 165 TGT 200/250 (MEDIUM TERM/LONG TERM)
BUY GVKPIL TGT 65 (SHORT TERM)
BUY PROVOGUE TGT 76 (SHORT TERM)

INTRADAY TIPS FOR 20 NOVEMBER 2009

GOOD MORNING!!!

VOLATILITY RULED THE ROOST AS STOCKS LOST GROUND WITH THE SENTIMENT HIT BY BRAZIL'S LATEST MOVE TO CURB CAPITAL INFLOWS. DECLINE IN EUROPEAN SHARES AND LOWER US INDEX FUTURES ALSO WEIGHED ON SENTIMENT. METAL, AUTO, BANKING, REALTY AND IT STOCKS DECLINED. THE MARKET BREADTH WAS WEAK IN CONTRAST TO A STRONG BREADTH IN EARLY TRADE. INTRADAY VOLATILITY ON THE BOURSES WAS HIGH. THE MARKET RECOVERED FROM LOWER LEVEL IN MORNING TRADE HOWEVER, THE INTRADAY REBOUND PROVED SHORT-LIVED. THE MARKET CUT LOSSES AFTER HITTING A FRESH INTRADAY LOW IN LATE TRADE. EQUITIES MAY REMAIN VOLATILE OVER THE NEXT FEW DAYS AS TRADERS ROLLOVER POSITIONS IN THE DERIVATIVE SEGMENT FROM NOVEMBER 2009 SERIES TO DECEMBER 2009 SERIES AHEAD OF THE EXPIRY. THE MARKET SENTIMENT WAS HURT BY BRAZIL'S LATEST MOVE TO CURB CAPITAL INFLOWS. BRAZIL TOOK ANOTHER STEP ON WEDNESDAY TO TRY TO CONTAIN THE APPRECIATION OF ITS CURRENCY, UNVEILING A 1.5% TAX ON CERTAIN TRADES INVOLVING AMERICAN DEPOSITARY RECEIPTS ISSUED BY BRAZILIAN COMPANIES. THE BRAZILIAN GOVERNMENT, LAST MONTH, IMPLEMENTED A 2% FINANCIAL TAX ON FOREIGN INFLOWS INTO STOCKS AND FIXED INCOME INVESTMENTS. AMONG OTHER OVERSEAS MARKETS, SOUTH KOREA ANNOUNCED MEASURES ON THURSDAY AIMED TO TIGHTENING CONTROLS OVER CURRENCY LIQUIDITY TO MAKE THE BANKING SYSTEM LESS VULNERABLE TO THE CAPITAL FLIGHT. THE FINANCIAL SERVICES COMMISSION SAID IT WILL LIMIT THE SIZE OF FORWARD FOREIGN EXCHANGE TRANSACTIONS THAT SOUTH KOREAN COMPANIES CAN ENTER INTO, TO A TOTAL VALUE OF NOT MORE THAN 125% OF THE UNDERLYING TRANSACTIONS THEY ARE HEDGING AGAINST, WHICH COULD MEAN LESS-THAN-EXPECTED SELLING OF DOLLAR-FORWARDS BY EXPORTERS IN THE FUTURE. TAIWAN HAS ALREADY BANNED FOREIGNERS FROM INVESTING IN TIME DEPOSITS. EARLIER, A NEWSPAPER REPORT SUGGESTED THAT THE GOVERNMENT IS TAKING ITS FIRST SIGNIFICANT STEP TO WARD OFF A SURGE IN FOREIGN CAPITAL INFLOWS THAT MAY THREATEN THE STABILITY OF THE FINANCIAL SYSTEM BY DRAWING UP NEW RULES THAT WILL MAKE OVERSEAS LOANS COSTLIER FOR COMPANIES. INDIAN STOCKS HAVE RISEN SHARPLY THIS YEAR ON ROBUST INFLOW FROM FOREIGN FUNDS. REPORTS HAD SUGGESTED THAT THE GOVERNMENT WAS CONSIDERING AUCTIONING OF CORPORATE ENTITLEMENTS TO BORROW ABROAD, A MOVE THAT COULD MAKE SUCH BORROWING COSTLIER. A GLOBAL GLUT OF LIQUIDITY HAS PUSHED UP STOCK MARKETS ACROSS THE GLOBE SINCE MARCH THIS YEAR. GOVERNMENTS AND CENTRAL BANKS AROUND THE WORLD HAVE INJECTED TRILLIONS OF DOLLARS IN THE PAST ONE YEAR OR SO TO PULL THE WORLD OUT OF A MOST SEVERE RECESSION SINCE THE 1930S GREAT DEPRESSION.
TODAY MARKET WOULD BE NEGATIVELY BIASED ALONG WITH ALL MAJOR GLOBAL INDICES STARTED GETTING WEAKER, OUR INDICES ARE ALSO PRONE AND WILL SUCCUMB TO FALLING PRESSURE ALONG WITH GLOBAL INDICES, IF NIFTY TRADES BELOW 4990 THEN WE CAN SEE NIFTY TO SLIDE DOWN TO 4937 AND BREAK BELOW THIS WOULD LEAD NIFTY TO 4909 IF NIFTY BREACHES 4900 THEN IT MAY TAKE SUPPORT AT 4780. AND ON THE UPSIDE IF NIFTY TRADES ABOVE 5007 THEN WE CAN EXPECT NIFTY TO TOUCH 5053 AND ABOVE THAT LEVEL IT MAY GO TO 5076. MARKET IS NEGATIVELY BIASED AND ONE CAN STAY SHORT, POSITIONAL TRADES CAN TAKE SHORT POSITIONS WITH A STOPLOSS OF 5068. WE MAY SEE LOT OF VOLATALITY IN THE COMING DAYS SO DON’T TRADE WITH SMALL STOPLOSSES AS THEY MAY HIT VERY FAST KEEP LITTLE BIGGER STOPLOSS AND KEEP BOOKING PROIFTS AT REGULAR INTERVALS.
STOCKS IN NEGATIVE ZONE : CHAMBAL FERTILIZERS, ADLABS, ALLAHABAD BANK, IDBI, INDIANBANK, IOB, KOTAK BANK, M&M, NAGARJUNA CONSTRUCTION, PNB, RELINFRA, RCOM, STER, TATA CHEMICALS, SYNDICATE BANK, TRIVENI, UNION BANK, UNIPHOS, VOLTAS, ZEE, MOSER BAER, PUNJLLOYD, PRAJ IND, UNITECH, JP, ROLTA, RENUKA, PTC, ICSA, FSL, OPTOCIRCUITS, NOIDA, INDIA INFO
SELL BAJAJ HINDUSTAN SL 210 TGT 204/200/196
SELL CENTURY TEXTILES SL 481 TGT 470/462
SELL DLF SL 371 TGT 361/355
SELL ESSAR OIL SL 136.1 TGT 132.6/130.1
SELL HDFC BANK SL 1731 TGT 1706/1691/1661
SELL ICICIBANK SL 892 TGT 870/861/850
SELL AXIS SL 1001 TGT 978/971/954
SELL LICHSG FUTURES SL 862 TGT 823/806

SELL SIEMENS SL 559 TGT 546/537/526