INTRADAY TIPS FOR 04 DECEMBER 2009

GOOD MORNING!!!

THE KEY BENCHMARK INDICES REMAINED FIRM TILL AFTERNOON TAKING NIFTY TO NEW HIGHS AFTER COMMENTS BY A TOP ECONOMIC ADVISER AND DATA SHOWING A SURGE IN FOOD PRICE INFLATION REINFORCED MARKET EXPECTATION OF A HIKE IN CASH RESERVE RATIO BY THE CENTRAL BANK TO SUCK OUT EXCESS LIQUIDITY IN THE BANKING SYSTEM, LATER IN THE AFTERNOON WITH THE UNION CABINET DECISION ON THE PENSION FUND REGULATORY & DEVELOPMENT AUTHORITY BILL THAT SEEKS TO BRING FOREIGN DIRECT INVESTMENT (FDI) INTO THE SECTOR. IN A MOVE THAT IS AIMED AT SIGNALLING THE UPA GOVERNMENT'S INTENT TO AGGRESSIVELY PUSH THE REFORM AGENDA, THE CABINET WILL CLEAR THE PENSION FUND REGULATORY & DEVELOPMENT AUTHORITY BILL THAT SEEKS TO BRING FOREIGN DIRECT INVESTMENT (FDI) INTO THE SECTOR. THE BILL PROPOSES TO ALLOW FOREIGN PLAYERS TO HOLD UP TO 26% STAKE IN INDIAN PENSION FUND COMPANIES. IT WOULD ALSO PERMIT PENSION FUNDS TO DEPLOY PART OF THEIR CORPUS ABROAD IN APPROVED INSTRUMENTS. THE PENSION BILL, ORIGINALLY INTRODUCED IN PARLIAMENT IN 2005, COULD NOT BE CLEARED DUE TO STIFF OPPOSITION FROM LEFT PARTIES. IT WAS THEN REFERRED TO THE PARLIAMENTARY STANDING COMMITTEE ON FINANCE, WHICH RECOMMENDED THE BILL WITH SOME MODIFICATIONS. BUSINESS ACTIVITY AMONG INDIAN SERVICES COMPANIES EXPANDED IN NOVEMBER 2009 BUT AT A SLOWER PACE THAN IN THE PREVIOUS MONTH, WITH BROAD GROWTH ACROSS ALL SECTORS, A SURVEY RELEASED ON THURSDAY SHOWED. IN OCTOBER, THE RBI WITHDREW EMERGENCY LIQUIDITY MEASURES AND INCREASED SOME LOAN PROVISIONING REQUIREMENTS, BUT LEFT ITS KEY POLICY RATES UNCHANGED. A HIGH INFLATION WILL REQUIRE MONETARY ACTION ON LIQUIDITY, THE FOOD PRICE INDEX ROSE 17.47% IN YEAR TO 21 NOVEMBER 2009,

TODAY MARKETS WOULD OPEN NEGATIVE AND THE MARKET LOOKS ON THE WEAKER SIDE. TODAY IF NIFTY BREAKS BELOW 5111 WOULD LEAD NIFTY TO 5070 AND BREAK BELOW THIS THERE WOULD SOME PROFIT BOOKING ON SHORT SIDE AT 5040 AND THE MAJOR SUPPORT SEEN IS AROUND 5003 ONE HAS TO WATCH CAREFULLY THIS LEVEL FOR SHORT ENTRY IF MARKET BREACHES THIS LEVEL AND CLOSES THEN WE CAN SEE FURTHER DIP IN MARKETS. ON THE UPSIDE IF NIFTY TRADES ABOVE 5046 THEN ONE CAN GO LONG FOR A TARGET OF 5164 AND ONE CAN STAY INVESTED IN LONGS AS LONG AS NIFTY IS ABOVE 5164 ONE LOOK FOR A TARGET OF 5267. AVIATION STOCKS LOOKS GOOD (JET AIRWAYS, SPICEJET & KFA)
BUY SASKEN COMM SL 162 TGT 175/178
BUY CIPLA SL 340 TGT 352/358
SELL TATAMOTORS SL 711 TGT 700/696/691
SELL ICICI BANK SL 891 TGT 875/866/857
SELL RELIANCE SL 1103 TGT 1081/1072

GOOD MORNING!!!

MARKETS WERE VERY RANGE BOUND, THERE WAS SOME PROFIT BOOKING ON THE TWO STRAIGHT DAY GAINS, PROFIT TAKING WAS TRIGGERED BY EUROPEAN MARKETS SLIDING DOWN FROM HIGHS. MARKETS ARE AT A GREAT RESISTANCE POINT AND AFTER A SURGE IN INDEX ON A VERY STRAIGHT NOTE MARKET IS EXPECTED TO CONSOLIDATE AT THIS STAGE TO FURTHER MOVE UP OR DECLINE IN THE FORM OF RETRACEMENT AND PROFIT BOOKING. ONE IS ADVISED TO STAY CAUTIOUS ON THE TRADING FRONT. ONE HAS TO BEAR IN MIND THAT 5165 IS THE CRUCIAL RESISTANCE AND CLOSING ABOVE THIS POINT MEANS THAT MARKET IS EXPECTED TO MOVE FURTHER 100 POINTS FROM THERE AND ONE IS ADVISED TO CLOSE SHORTS IF ANY.
TODAY MARKET WOULD BE RANGE BOUND, IF NIFTY TRADES BELOW 5111 THEN IT IS LIKELY TO TOUCH 5070 LEVELS BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5040 AND 5003. ON THE UPSIDE IF NIFTY TRADES ABOVE 5140 THEN IT IS LIKELY TO TOUCH 5165 AND TRADING ABOVE THIS ZONE IS A POSITIVE SIGN AND ANY CLOSE ABOVE THIS POINT WOULD LEAD MARKETS TO 4265 LEVELS.
BUY RANBAXY SL 485 TGT 500/508
BUY DISHTV SL 41.90 TGT 43.50/44
BUY IDBI SL 131.20 TGT 133.5/135/137
BUY PATEL ENGINEERING SL 472.9 TGT 485/490/496
BUY TATA CHEMICALS SL 302 TGT 311.6/314/318
BUY SYNDICATE BANK SL 98.75 TGT 102/104/106
SELL TATAPOWER SL 1356 TGT 1333/1321/1306
SELL ORIENT BANK SL 283 TGT 274/272.5/266
POSITIONAL TRADES

BUY INDIA GLYCOLS TGT 185/200

INTRADAY TIPS FOR 02 DECEMBER 2009

GOOD MORNING!!!

BUYING AT CLOSING OF THE MARKETS IN INDEX PIVOTALS PROPELLED KEY BENCHMARK INDICES TO FRESH INTRADAY HIGHS. CURTAINING OF DUBAIS FINANCE WOES HAVE TRIGGERED ALL THE EUROPE, ASIA AND US MARKETS TO A FRESH INTRADAY HIGHS AND ROBUST NOVEMBER AUTO SALES NUMBERS ADDED TO THE POSITIVE SENTIMENT TRIGGERED BY BETTER-THAN-EXPECTED GDP DATA, HELPING THE INDIAN INDICES REGAIN THE PSYCHOLOGICAL 17,000 AND 5000 MARK. EXPORTS FELL 6.6% TO $13.19 BILLION IN OCTOBER 2009 OVER OCTOBER 2008, THEIR 13TH STRAIGHT MONTHLY FALL. IMPORTS DROPPED 15% FROM A YEAR EARLIER TO $22 BILLION. THE TRADE DEFICIT SHRUNK TO $8.8 BILLION IN OCTOBER 2009 FROM $11.74 BILLION A YEAR EARLIER. EXPORTS FOR APRIL-OCTOBER, THE FIRST SEVEN MONTHS OF THE 2009-10 FISCAL YEAR, WERE DOWN 26% AT $91.05 BILLION FROM THE SAME PERIOD IN THE PREVIOUS YEAR. THE LATEST NUMBERS DO INDICATE THAT INDUSTRY AND SERVICES ARE GROWING VERY STRONGLY, THIS COULD HELP OFFSET TO A VERY LARGE EXTENT THE IMPACT OF THE DECLINE IN AGRICULTURAL PRODUCTION. MEANWHILE, DUBAI WORLD, THE HOLDING COMPANY AT THE HEART OF THE DUBAI CRISIS, ON MONDAY ANNOUNCED A RESTRUCTURING PLAN INVOLVING $26 BILLION IN DEBT. HOWEVER, THE DUBAI GOVERNMENT SAID IT WAS NOT RESPONSIBLE FOR DUBAI WORLD'S DEBTS, DEALING A BLOW TO CREDITORS' ASSUMPTIONS THAT THE ARAB EMIRATE WOULD GUARANTEE THE GOVERNMENT-CONTROLLED CONGLOMERATE'S LIABILITIES. DUBAI WORLD, ONE OF THE EMIRATE'S MAIN STATE HOLDING COMPANIES, LAST WEEK, ASKED FOR A DELAY ON MATURITIES UNTIL AT LEAST 30 MAY 2010. THE COMPANY HAS TOTAL DEBTS OF $59 BILLION, INCLUDING $3.52 BILLION OF ISLAMIC BONDS DUE 14 DECEMBER 2009 FROM ITS PROPERTY UNIT NAKHEEL. AUTO STOCKS RALLIED FOLLOWING ROBUST MONTHLY SALES IN NOVEMBER 2009.
TODAY IF NIFTY TRADES ABOVE 5139 THEN IT WOULD TOUCH 5165 THIS IS ONE OF THE MOST CRUCIAL RESISTANCE IN NIFTY, IF NIFTY BREAKS THIS LEVEL AND CLOSES THEN NIFTY WILL TOUCH 5270 LEVEL. IF NIFTY CLOSES ABOVE 5165 THEN WE CAN TAKE A FRESH LONG POSITIONS IN NIFTY AND ONE HAS TO REMEMBER IF NIFTY TRADES BELOW THIS LEVEL THEN WITH THIS AS STOPLOSS ONE CAN GO SHORT AS WELL BUT ONLY WHEN THE JOURNEY IS TOWARDS DOWN AND NOT ON THE UPWARD JOURNEY. IF NIFTY TRADES BELOW 5111 THEN WOULD TAKE NIFTY TO 5070 LEVELS AND BREAK BELOW THIS LEVEL WOULD TAKE MUCH MORE DOWN SIDE TO 5040.
BUY TATA MOTORS SL 699 TGT 714/719
BUY M&M SL 1069 TGT 1094/1104
BUY IBREAL SL 208 TGT 218/222/229
BUY HCC SL 139.9 TGT 146/150
BUY DLF SL SL 367 TGT 380/384
BUY RELCAP SL 849 TGT 884/890

INTRADAY TIPS FOR 01 DECEMBER 2009

GOOD MORNING!!!

KEY BENCHMARK INDICES SURGED AS THE LATEST DATA SHOWED THE ECONOMY EXPANDED AT A STRONGER-THAN-EXPECTED 7.9% PACE IN THE SECOND QUARTER. HOWEVER, INTRADAY VOLATILITY WAS HIGH. ASIAN STOCKS SURGED AFTER UNITED ARAB EMIRATES CENTRAL BANK ON SUNDAY, 29 NOVEMBER 2009, OFFERED ADDITIONAL LIQUIDITY TO LOCAL AND INTERNATIONAL BANKS IN THE UAE AND REASSURED INVESTORS IT "STANDS BEHIND" THE LENDERS. ALSO BOOSTING THE SENTIMENTS, GLOBAL BANKS OUTSIDE THE GULF SAID THEY WERE NOT HEAVILY EXPOSED TO DUBAI DEBT. GOVERNMENT DATA RELEASED TODAY SHOWED THE GROSS DOMESTIC PRODUCT (GDP) GREW BY 7.9% IN Q2 SEPTEMBER 2009, FROM 7.1% IN THE PREVIOUS YEAR, SHATTERING FORECASTS AS STIMULUS MEASURES BOOSTED DEMAND AND MANUFACTURING ACTIVITY SURGED. THE ECONOMY HAD REGISTERED A 6.1% GROWTH IN THE FIRST QUARTER. THE BULK OF THE RECOVERY WAS LED BY A 9.2% GROWTH IN MANUFACTURING, WHILE MINING AND CONSTRUCTION ACTIVITIES ALSO EXPANDED BY 9.5% AND 6.5%, RESPECTIVELY. BUT AGRICULTURE CONTINUED TO ME A MAJOR DRAG WITH A MERE 0.9% GROWTH.
TODAY MARKET WOULD BE RANGE BOUND. NIFTY IF TRADES ABOVE 5040 THEN IS LIKELY TO MOVE UP TO 5070 AND BREAK ABOVE THIS LEVEL AND TRADE WITH GOOD VOLUMES MAY TAKE NIFTY TO 5111 ANY CLOSE ABOVE 5070 IS CONSIDERED TO BE VERY GOOD SIGN AND ONE CAN GO LONG POSITIONALLY. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5040 THEN LIKELY TO SEE NIFTY AT 5001 AND BREAK BELOW THIS LEVEL WOULD TAKE IT TO 4978 ONE CAN STAY SHORT IF NIFTY TRADES BELOW 5000.
BUY JSL SL 105 TGT 114/117
BUY RANBAXY SL 451 TGT 460/465/469
BUY HEROHONDA SL 1744 TGT 1714/1719/1724
BUY TATASTEEL SL 571 TGT 563/569
POSITIONAL TRADES
BUY CHOKSI IMAGING LTD TGT 200%/500%

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%