INTRADAY TIPS FOR 09 FEBRUARY 2011

GOOD MORNING!!!

IT WAS A BRUTAL ASSAULT FOR THE MARKETS DAY BY DAY IT SEEMS AS IF MARKETS ARE BEING GANG RAPED BY FII’S, DII’S, POLITICIANS, RBI, RETAILERS, INFLATION, AND WHAT NOT CORNERING EACH AND EVERY INVESTORS FOR THE INVESTMENTS THEY MADE. TILL DECEMBER END MAJORITY OF THE FIIS WERE ON LEAVE FOR THE VACATION NOW EVERY PROMOTERS AND INVESTORS ARE MADE TO MOVE ON A VACATION TO FORGET THIS NIGHTMARE FOR THE INVESTMENT THEY MADE. MARKETS AS USUAL FOLLOWED THE TREND OF THE LAST FEW DAYS STARTING ON A FLAT NOTE ON THE BACK OF STRONG CUES FROM THE OVERNIGHT US MARKETS WHICH GOT A LIFT FROM GOOD EARNINGS REPORT AND SOME MERGER ANNOUNCEMENTS. HOWEVER THE INDICES PLUNGED INTO THE RED AFTER TRADING IN THE POSITIVE TERRAIN FOR A VERY BRIEF PERIOD IN THE EARLY TRADE AS SELLING PRESSURE GATHERED GREATER MOMENTUM MARKETS FAILED TO SHOW ANY KIND OF RESILIENCE THEREAFTER AND PAVED WAY FOR ITS JOURNEY TOWARDS SOUTH. WE HAVE WITNESSED HEAVY UNWINDING OF OPEN LONGS IN THE MOST PART OF THE DAY AFTER FIIS CONTINUED TO BOOK PROFIT ACROSS THE TABLE DRAGGING THE MARKETS TO LOWER LOWS, WITH PRESSURE FROM RETAILERS MARKETS AND FIIS MARKETS COMPLETELY LOST ITS GROUND BREACHING THE CRUCIAL SUPPORT LEVELS AND HAS COME TO THE LEVELS OF JULY 2010 FOR THE FIRST TIME. THE MARKET BREADTH WAS DREADFULLY NEGATIVE WITH CONSUMER DURABLES, REAL ESTATE, AUTO AND BANKS PLUNGED TO THE MAXIMUM POSSIBLE LEVELS.

WITH CHINESE CENTRAL BANK HIKING THE INTEREST RATES WE MAY SEE CHINESE MARKETS TO PLUNGE DOWN IN THE OPENING AND MAY HAVE EQUAL PRESSURE ON ALL THE ASIAN COUNTER PARTS AND WITH THE CONTINUING SELLING PRESSURE THESE WOULD ADD FUEL TO THE FIRE IN THE INDIAN MARKETS WE MAY WITNESS SOME MORE SELLING PRESSURE TO CROP-IN IN THE MARKETS. TODAY IF NIFTY TRADES BELOW 5300 WE MAY DIRECTLY HEAD DOWN TOWARDS 5200 LEVELS THERE IS NO DOUBT IN THAT, THAT WE MAY HAVE ANY PAUSE IN THE MARKETS BUT IF NIFTY DOESN’T HOLD 5200 LEVELS WE MAY SEE SOME SELLING TO CROP IN THEREBY TAKING NIFTY TO BELOW 5000 LEVELS. THOUGH WE MAY HAVE SOME PAUSE ON THE PSYCHOLOGICAL FRONT AFTER BREACHING 5300 ON THE BROADER FRONT WE MAY SEE NIFTY TO 5200 LEVELS. IF NIFTY BREAKS AND TRADES BELOW 5300 THEN WE WOULD SEE NIFTY AT 5260 LEVELS AND THEN TO 5220 LEVELS AND BREAK BELOW THAT WE MAY SEE NIFTY AT 5200 LEVELS AND ANY CLOSE BELOW THIS WOULD WITNESS SHORT BUILDUP AND POSITION SQUARE OFF IN THE MARKETS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5340 LEVELS WE MAY SEE IT TO GO UP TO 5360 LEVELS AND BREAK ABOVE THAT WE HAVE POSSIBILITY TO SEE NIFTY AT 5390 LEVELS AND AS LONG AS NIFTY CLOSES ABOVE 5500 LEVELS ONE CAN STAY ON THE SHORT.

INTRADAY TIPS FOR 08 FEBRUARY 2011

GOOD MORNING!!!

INDICES MADE A VERY CAUTIOUS MOVE ON THE START OF THE MARKETS DESPITE POSITIVE CLOSE OF US MARKETS OVERNIGHT, AS INVESTORS PREFERRED STAYING ON THE SIDELINES AS THEY LACKED CONVICTION FOR THE STRENGTH OF THE MARKET AFTER THE MASSIVE LOSS ON FRIDAY ON WORRIES OVER SURGING INFLATION AND INTEREST RATES IN THE COUNTRY. HIGHER THAN ESTIMATES OF GDP NUMBERS DID GIVE SOME RELIEF FOR A VERY BRIEF PERIOD COULDN’T MANAGE TO HOLD TILL THE END, JUST AFTER NIFTY INCLINED BY 40 ODD POINTS FELL SUDDENLY ON A PROFIT BOOKING NOTE WITH HUGE VOLUMES IN JUST FIVE MINUTES OF TIME TO BRING THE MARKETS TO THE NEGATIVE ZONE AND BOUNCED BACK FROM LOWS OF THE DAY TO CONSOLIDATE THE INDICES AND CLOSED THE MARKETS ON A FLAT NOTE. THOUGH THE MARKETS ENDED THE SESSION IN THE GREEN TERRITORY SUPPORTED BY GAINS IN THE FMCG, REALTY, OIL & GAS AND SELECT METAL COMPANIES, BUT THE TRADE REMAINED LACKLUSTER AFTER THE HUGE SELL OFF WITNESSED IN THE MARKETS ON FRIDAY AND THERE IS HARDLY ANY CONVICTION SEEN AMONG THE INVESTORS AT THESE LEVELS.

TODAY MARKETS WOULD OPEN FLAT AND RANGE BOUND THOUGH GLOBAL CUES ARE POSITIVE MAY NOT MAKE AN IMPACT TO THE INDIAN MARKETS AS THE SENTIMENT STILL REMAINS WEAK THERE IS HARDLY ANY CONVICTION SEEN IN THE MARKETS BY INVESTORS. WE MAY SEE ANOTHER LEG OF SELL OFF BEFORE OR AFTER A RETRACEMENT IN THE MARKET. IF NIFTY TRADES BELOW 5380 THEN LIKELY TO COME DOWN TO 5360 AND THEN TO 5320 LEVELS AND ANY BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5300 AND THEN TO 5200 LEVELS. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 5450 THEN LIKELY TO MOVE UP TO 5500 AND THEN TO 5540 LEVELS ANY CLOSE ABOVE 5540 IS A SIGN OF POSITIVE WAVE TILL THEN WE MAY TAKE EVERY OPPORTUNITY FOR INITIATING FRESH SHORTS.

INTRADAY TIPS FOR 07 FEBRUARY 2011

GOOD MORNING!!!

MARKETS GOT ON TO A CAUTIOUS NOTE DESPITE POSITIVE CUES FROM THE OVERNIGHT US MARKETS WHICH REMAINED OPTIMISTIC AS THE BENCHMARKS THERE SURGED IN LATE HOURS AFTER GETTING GOOD JOBS DATA. HOWEVER THE INDICES MANAGED TO BREAK INTO THE GREEN FOR A BRIEF PERIOD IN THE MID-MORNING SESSION BUT THAT TURNED OUT TO BE A SUCKER’S RALLY AS THE BOURSES DRIFTED BACK IN TO THE RED. MARKETS HAVE TAKEN A TURN FOR THE WORSE AS INVESTORS AT LARGE RESORTED TO HEFTY PROFIT BOOKING AFTER WITNESSING A RELIEF RALLY ON THE MARKETS IN TWO PREVIOUS TRADING SESSIONS. FOREIGN INSTITUTIONAL INVESTORS (FII) ARE RELENTLESSLY ATTEMPTING TO PLOUGH BACK THEIR HOT MONEY FROM THE UNDERPERFORMING EMERGING MARKETS BECAUSE OF THE ACCELERATION SEEN IN THE DEVELOPED WESTERN ECONOMIES LIKE US AND ALSO ON EXPECTATIONS THAT THE RESERVE BANK OF INDIA WILL BE CONTINUING WITH INTEREST RATE TIGHTENING CYCLE GOING FORWARD. MOUNTING UNCERTAINTIES OVER THE LINGERING CIVIL UPHEAVAL IN EGYPT TOO HAS PUMMELED LOCAL SENTIMENTS ON THE LAST TRADING DAY OF THE WEEK. THE HEAVYWEIGHTS FAILED TO SHOW RESILIENCE AND TRAVELLED TOWARDS SOUTH. THE MARKETS SAW POSITION SQUARING FOR MOST PART OF THE DAY AND EVENTUALLY FINISHED THE DAY’S TRADE AROUND THE DAY’S LOW WITH EXTENSIVE LOSSES. VOLUMES FOR MARKETS REMAINED SIGNIFICANTLY HIGHER COMPARED TO PREVIOUS DAYS. THE MARKET BREADTH ON WAS DREADFULLY NEGATIVE

TODAY MARKETS MAY BE VOLATILE AND RANGBOUND IF NIFTY TRADES BELOW 5366 THEN LIKELY TO COME DOWN TO 5321 AND BELOW THIS LEVEL WOULD DRAG NIFTY TO 5276 LEVELS AND THEN TO 5200 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5404 THEN LIKELY TO MOVE UP TO 5449 AND THEN TO 5500 LEVELS, AS LONG AS NIFTY TRADES BELOW 5550 ONE IS ADVISED TO STAY SHORT AS NIFTY LIKELY TO REMAIN WEAK THOUGH THERE IS EVERY POSSIBILITY FOR NIFTY TO BOUNCE BACK IT WOULD BE ON THE RETRACEMENT FRONT, WHICH MAY RAISE TO 5600 AND THEN TO 5720 LEVELS BUT LIKELY TO COME DOWN MUCH BELOW THE RECENT LOWS IN NIFTY. KEEP AN EYE ON FERTILIZERS.

NO RECOS FOR INTRADAY

INTRADAY TIPS FOR 04 FEBRUARY 2011

GOOD MORNING!!!

MARKETS STARTED ON A CAUTIOUS NOTE AFTER THE VOLATILITY WITNESSED IN THE LAST HOUR OF WEDNESDAY'S TRADE, IT WAS LIKE A DEAD CAT BOUNCE. INDICES MANAGED TO CAPITALIZE ON THE INITIAL GAINS AS ABSENCE OF ANY FOLLOW-UP PROFIT BOOKING SEEMINGLY LED TO THE RETURN OF CONFIDENCE AMONG INVESTORS. THE FRONTLINE INDICES SHOWED GREAT RESILIENCE DESPITE THE DISAPPOINTING INFLATION NUMBERS AND PAVED ITS WAY TOWARDS NORTH AFTER THE INITIAL SLUGGISHNESS. THE BOURSES SAW BARGAIN HUNTING FOR MOST PART OF THE TRADE AND EVENTUALLY FINISHED THE DAY’S TRADE AROUND THE HIGH POINTS OF THE DAY WITH SUBSTANTIAL GAINS. THOUGH THE BREADTH OF THE MARKETS REMAINED VERY POSITIVE BUT THE ONLY CONCERN IN THE MARKETS GROWTH WAS VOLUMES, VOLUMES FOR MARKETS REMAINED MARGINALLY LOWER WHEN COMPARED TO PREVIOUS SESSIONS. WE HAVE SEEN A RALLY ON THE BROAD BASED ON THE SHORT COVERING AHEAD OF BUDGET 2011.

MARKETS WOULD OPEN FLAT BUT AS LONG AS NIFTY TRADES ABOVE 5546 LIKELY TO MOVE UP TO 5625 AND THEN TO 5758 IN THE BROAD SENSE AS NIFTY HAS COME ON TO THE SHORT TERM POSITIVE ZONE, BUT AGAIN LIKELY TO DECLINE EVEN BELOW THE PREVIOUS LOWS OF THE INDICES AS THE LONG TERM BREADTH OF THE MARKETS REMAIN WEAK THOUGH THE SHORT TERM SEEMS TO BE ON THE RECOVERY WILL NOT LIVE LONGER. ON THE INTRADAY FRONT IF NIFTY TRADES ABOVE 5550 THEN LIKLEY TO MOVE UP TO 5575 WHICH MAY FACE TOUGH RESISTANCE AND THEN TO 5620 THERE AFTER WOULD MOVE TO 5650. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5530 LIKELY TO MAKE ITS JOURNEY TO 5500 AND THEN BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5470 AND 5428 LEVELS.

INTRADAY TIPS FOR 03 FEBRUARY 2011

GOOD MORNING!!!

MARKETS GATHERED STRENGTH FROM THE STRONG US CLOSING AND SANGUINE ASIAN MARKETS TO POST A STRONG OPENING WITH A GAP UP TRADE AND CONTINUED TO SUSTAIN THE SAME LEVELS ALMOST TILL THE LAST HOUR OF TRADE HOWEVER, THE RELIEF RALLY FIZZLED OUT BY THE END OF TRADE AS INVESTORS RESORTED TO HEFTY PROFIT BOOKING AND EVENTUALLY PARED MOST OF THE INTRA-DAY GAINS TO FINISH THE DAY WITH MARGINAL GAINS, AROUND THE CRUCIAL SUPPORTS.. HOPES OF THE PULLBACK RALLY FOR THE MARKETS GOT SHATTERED AS MANY FRONTEND STOCKS SAW SHORT COVERING THE OPENING SESSION TILL AFTERNOON LATER LOST THE GROUND IN THE LATE HOURS. THOUGH MARKETS HELD ITS NERVE TILL THE LAST HALF AN HOURS IT SEEMED AS IF BEARS WERE ONLY PERSONS TO HAVE THE LAST ON THE MARKETS AS THEY STALLED THE RESURGE IN THE LAST HALF AN HOUR TRADE.

TODAY NIFTY MAY OPEN FLAT TO NEGATIVE IF NIFTY TRADES BELOW 5410 THEN LIKELY TO COME DOWN TO 5377 AND BREAK BELOW THIS LEVEL WOULD TAKE NIFTY FURTHER DOWN TO 5233 LEVELS ONE NEEDS TO HAVE A CAREFUL THOUGHT BEFORE TAKING LONG POSITIONS AND ANOTHER IMPORTANT NOTE IS IF NIFTY CLOSES BELOW 5400 WE CAN SEE ANOTHER 200 POINTS DOWNSIDE RALLY. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5450 THEN LIKELY TO MAKE AN UPMOVE TO 5470 AND THEN TO 5488 LEVELS ANY BREAK ABOVE 5500 WOULD TAKE NIFTY TO 5530 AND CLOSE ABOVE 5530 WOULD TURN MARKETS POSITIVE.

INTRADAY TIPS FOR 02 FEBRUARY 2011

GOOD MORNING!!!

MARKETS YET AGAIN TAKEN TO A TOSS AFTER CLOSING THE FIRST DAY OF THE FEBRUARY MONTH ON A FIRM NOTE. BREADTH OF THE MARKETS HAS SHOWN NO INTENTIONS OF BOUNCING BACK AND CONTINUED ITS DOWNWARD JOURNEY WITH INTENSE SELLING. THOUGH, THERE WAS SOME KIND OF SHORT COVERING IN THE AFTERNOON SESSION COULDN’T REALLY HOLD ITS GAINS AS INVESTORS YET AGAIN TOOK PROFITS OUT OF THE TABLE LEADING TO THE FALL IN MARKETS AND EVENTUALLY FINISHING THE DAY ON A VERY WEAK NOTE. ACROSS THE BOARD RUTHLESS SELLING AND INVESTORS SHOWING NO INTEREST TOWARDS HOLDING LONG POSITIONS HAVE FURTHER WEAKENED, THE MAJOR CAUSE OF CONCERN IN THE INDIAN MARKETS ARE FII WHO ARE CONTINUOUSLY ON THE SELLING NOTE.

TODAY, WITH THE BETTER THAN FORECASTED US CONSUMER SPENDING NUMBERS, WHICH HAS HELPED TO CLOSE US INDICES WITH OVER ONE PERCENT GAINS ALONG WITH A POSITIVE CLOSING OF EUROPE AND POSITIVE CUES FROM THE ASIAN MARKETS WOULD HELP INDIAN MARKETS TO OPEN ON AN OPTIMISTIC NOTE TURNING THE SENTIMENTS. THOUGH THE SENTIMENT WAS VERY WEAK IN THE LAST DAYS TRADE BUT MARKETS TOOK SUPPORT AT A VERY CRUCIAL PHASE AT 5400 LEVELS. TODAY IF NIFTY TRADES ABOVE 5438 THEN LIKELY TO MOVE UP TO 5474 LEVELS AND MOVE UP ABOVE THIS POINT WOULD TAKE IT TO 5500 AND ANY BREAK ABOVE THIS WOULD TAKE NIFTY TO 5545 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5420 THEN LIKELY TO DIP DOWN TO 5386 LEVELS AND ANY BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5222 LEVELS IN A SHORT TIME. ONE IS ADVISED TO SEE 5400 AS A CRUCIAL LEVEL IF NIFTY CLOSES BELOW 5400 THEN LIKELY TO DIP DOWN TO 5222 LEVELS. IF NIFTY CLOSES POSITIVE WE MAY EVEN SEE A POSITIVE OPENING TOMORROW ANOTHER IMPORTANT POINT TO REMEMBER IS WE ARE IN A WEAK ZONE WHERE WE ARE LIKELY TO DECLINE BELOW THE PREVIOUS LOWS YET AGAIN SHORTLY AS LONG AS NIFTY STAYS BELOW 5560 ONE SHOULD UNDERSTAND THAT WE ARE IN A WEAK TERRITORY AND ONE SHOULD MAKE USE OF EVERY UPSIDE TO SHRED THE POSITIONS AS LONG AS IT STAYS BELOW 5560 LEVELS.

INTRADAY TIPS FOR 01 FEBRUARY 2011

GOOD MORNING!!!

MARKETS CRACKED OVER ONE AND HALF A PERCENT IN THE OPENING TRACKING GLOBAL CUES THE GLOBE GOT ANNIHILATED ON THE BACK OF LINGERING PUBLIC PROTESTS IN EGYPT WHICH SHOWED LITTLE SIGNS OF DYING DOWN WHICH REMAINED HIGHLY UNSUPPORTIVE WHILE SOARING DOMESTIC INFLATION AND RATE RISE FEARS TOO WEIGHED. ADDING TO THE WEAK GLOBAL CUES ANOTHER POINT OF CONCERN IN THE MARKET WAS RUTHLESS POSITION SQUARING HAVE DONE SOME MORE DAMAGE TO THE MARKETS IN THE FIRST SESSION. AND IN THE SECOND HALF OF THE MARKETS JOURNEY WHEN INDICES CAME DOWN TO THE CRUCIAL SUPPORT LEVELS THERE WAS SOME SHORT COVERING WHICH PULLED THE MARKETS CLOSER TO THE NEUTRAL LINE. MARKETS BREADTH WAS WEAK. THE HIGH BETA, REAL ESTATE STOCKS ONCE AGAIN LANGUISHED AT THE BOTTOM OF THE SECTORAL LIST AFTER TUMBLING 2.23%, THE FMCG COUNTER TOO WITNESSED HUGE PROFIT BOOKING AS IT SHAVED OFF 2% ON THE FLIPSIDE, CAPITAL GOODS PACK WENT HOME WITH 3.26% GAINS ALONG WITH IT POWER STOCKS TOO SAW HUGE BUYING INTERESTS AS IT GAINED 1.31%

TODAY NIFTY WOULD TRADE IN A NARROW RANGE WITH RANGE BOUND ACTIVITY. IF NIFTY TRADES BELOW 5500 THEN LIKELY TO COME DOWN TO 5442 AND BREAK BELOW THIS LEVEL WOULD COME DOWN TO 5400 LEVELS AND ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5550 THEN LIKELY TO MOVE UP TO 5590 LEVELS AND BREAK ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5620 LEVELS ANY CLOSE ABOVE 5600 WOULD BE ON THE POSITIVE TRACK. ONE CAN SHORT NIFTY AT HIGHER LEVELS WITH A STOPLOSS OF 5625 LEVELS. WE CAN SEE ONE MORE LEG OF SELLING BUT THE INTENSITY OF SELLING IS PURELY TAKEN INTO ACCOUNT ON WHERE THE NIFTY IS TAKING SUPPORT AT, NIFTY CAN TAKE SUPPORT AT 5400, 5200 OR 4800 LEVELS SO ONE CAN TAKE CHANCE TO BUY PARTIAL QUANTITIES AROUND THESE LEVELS. IF YOU SEE BOUNCE BACK WE CAN GO FORWARD TO ONE OF THE BIGGEST BULL RUNS WE HAVE EVER SEEN. POSITIONAL INVESTORS SHOULD NOT REALLY BOTHER ABOUT THESE UPS AND DOWNS WHICH COME EVERY NOW AND THEN, FUNDAMENTALLY MARKETS HAVE NOT CHANGED ANYTHING AND WE HAVE A GOOD GOWTH STORY INTACT WE CAN HEAD MUCH AHEAD FROM THE LEVELS WHERE WE ARE CURRENTLY. BUT THERE ARE SERIOUS CONCERNS IN THE MARKET IN THE CURRENT SITUATION WITH THE CRUDE MOVING TO THE TWO YEAR HIGHS WHICH WILL HAVE GREATER IMPACT ON THE INFLATION IN TURN THE INTEREST RATES ONE HAS TO BE VERY CAUTIOUS FOR FRESH BUYS. WE ARE LIKELY TO FACE ONE MORE SELL-OFF IN A SHORT NOTE.