Monday, December 28, 2009


Strong external markets and better than expected economic data helped markets stage a strong recovery after previous week’s fall. Both Sensex and Nifty managed to inch up close to 4% during the week. The market breadth was extremely heartening as 10 stocks rose for each falling stock. Almost all sectors participated except pharma. Banking and Metals were among the biggest gainers. SAIL, NTPC, Hindalco, Tata Steel, Suzlon, Reliance Infra, ICICI Bank, Tata Motors and Reliance were among the top gainers in Nifty.

Nifty is trading at a crucial juncture at this point in time. 5150-5200 is a crucial resistance and Nifty is placed at a fresh one and a half year high. If it manages to breach 5200, we may see the rally extending to 5600. We may see a buoyant market in terms of stock specific action and we recommend short term traders to trade long for immediate gains. Supports are placed at 5070 and 5000. The chances of this impending rise could be negated only if it manages a close below 5000. The exuberance must reach to irrational levels for the markets to subside from here. Buy for immediate term with adequate stoplosses.

CROMPGREAV @ 418-420 Tgt 444 SL 410
SESAGOA @ 386-388 Tgt 425 SL 376
PANTALOONR @ 364-366 Tgt 400 SL 358
BHUSANSTL @ 1410-1420 Tgt 1600 SL 1370
OPTOCIRCUI @ 224-226 Tgt 260 SL 220
HINDZINC @ 1190-1200 Tgt 1260, 1400 SL 1170
MPHASIS @ 720-725 Tgt 760 SL 710

Sunday, December 20, 2009


Markets were trading with negative bias throughout the week and corrected sharply after consolidating in narrow range last week. The market breadth was negative and the fall was more or less across the board. Pharma, Technology and Cement were the sectors which stood out for their outperformance. Ranbaxy, ACC, HCL Tech, Wipro, Cipla, Sun Pharma and Infosys were among the top gainers while Unitech, Axis Bank, IDFC, HDFC Bank, RCom and DLF for the top losers in Nifty.

The global cues are mixed we may witness some range bound activity back home. Nifty closed below 5000 once gain after repeated attempts to breach 5200 failed during the past one month. Immediate term resistance on Nifty remains at 5070 and a strong short term resistance remains above 5150. Supports exist at 4940 and further at 4800. Long positions must be exited if it manages a close below 4940. Markets may trade stock specific and hence short term trading is recommended with adequate stoplosses. Metals look particularly strong and we expect weakness in Banking stocks.

HINDALCO @ 140-142 Tgt 152, 160 SL 136
SESAGOA @ 354-356 Tgt 400 SL 344
PANTALOONR 358-360 Tgt 400 SL 350
OPTOCIRCUI @ 218-220 Tgt 232, 260 SL 208
SAIL @ 208-210 Tgt 234 SL 204

TATACOMM @ 340-342 Tgt 320 SL 348
HDFC @ 2600-2610 Tgt 2480 SL 2640
ANDHRABANK @ 104-105 Tgt 99, 92 SL 107
EDUCOMP @ 720-724 Tgt 680, 620 SL 740
BANKINDIA @ 364-365 Tgt 348 SL 372

Sunday, December 6, 2009


Markets staged a strong bounce back after the last week’s weakness. The news from Dubai sunk in and Nifty almost touched the recent high and settled somewhere close to the one and a half year highs. All sectors participated in the rally. Pharma and Metal stocks were amongst the biggest gainers. Realty stocks rebounded sharply after collapsing after the news of Dubai financial crisis. Ranbaxy and Cipla both moved up more than 10% during the week while Tata Motors, Hindalco, Idea, SAIL and Unitech were the other Nifty stocks which moved up more than 10% week on week. HUL, Hero Honda and BHEL were the only losers in Nifty.

Markets are looking good for medium term with stock specific performances. Metals, Pharma, Auto and Banking sectors look good going ahead. Nifty faces strong resistance at 5200, which looks difficult to breach in the immediate term. Breach of 5200 may see it climbing upto 5500 in the short term. On the downside strong support exists at 4800. We may see consolidation in the range of 4800-5200 before markets take any direction. It is advisable to trade stock specific with adequate protection.

Sunday, November 29, 2009


Markets started trading the week on a positive note and were in positive territory for the first half of the week and then news of Dubai property and realty firms struggling to pay back their debt and are looking for restructuring their loans once again gripped the markets. Markets toppled during the latter half of the week before recovering smartly during the fag end. Both Sensex and Nifty lost more than 2% week on week with all the sectoral indices closing the week with losses. The market breadth was negative but yet there were some stock specific performances. BPCL was the biggest Nifty gainer with nearly 12% wow gain while the other gainers included Ranbaxy, GAIL, Hero Honda, Cipla. IDFC, JP Associates, Siemens and Jindal Steel were among the biggest Nifty losers.

The cues going into the week are positive as global markets stage strong recovery after the fall. The Dubai tumors look like beginning to fade but we expect the cracks would continue to haunt the markets going forward. The coming week’s market behavior would determine the medium term direction of the markets. If the deep financial crisis could be averted by synchronized collective stimuli from major nations, we feel this crisis should well be prevented from escalating. If markets succeed in touching the lows of Friday, then we might have some more pain left in the system. One must remain cautious for this week and traders must maintain strict stoplosses.

RANBAXY @ 438-440 Tgt 460 SL 432
GVKPIL @ 50-50.25 Tgt 52.50, 58 SL 49
GSPL @ 94-94.25 Tgt 100 SL 92
ORCHIDCHEM @ 178-180 Tgt 200 SL 172

IDFC @ 162-163 Tgt 156, 151 SL 166

Sunday, November 22, 2009


Markets were trading undecided for the initial part of the week but move up on the last session to close the week with a gain of over 1% on both the Sensex and Nifty. While technology stocks corrected after witnessing steady rallies, Shipping and Cement stocks showed signs of reversal after staying low for many a month. Metals, Auto and Banking saw good gains while other sectors traded mixed for the week. Suzlon, Tata Steel, SAIL, Reliance Capital and Hero Honda were the major Nifty gainers with over 5% WoW rise while Reliance Infra, Bharti and HCL Tech were the major losers.

Markets are likely to trade stable with positive bias going forward. Any correction should be seen as more of a buying opportunity than a sign of reversal. Nifty may find support at 5000 and we may see 5200 being tested once again this week. We expect steel and banking stocks to witness rally in the coming weeks. Technology may remain sluggish while steel and banking may witness further upside. Trade stock specific and avoid short positions for the time being.

BEL @ CMP Tgt 1680 SL 1560
AUROPHARMA @ 776-780 Tgt 840 SL 760
TATASTEEL @ CMP Tgt 585 SL 540
DENABANK @ 79.5-80 Tgt 88 SL 76

Thursday, November 19, 2009


Markets continue to move up in line with positive global markets and strong fundamental data emanating domestically. The IIP numbers show strong demand growth. The market breadth was extremely positive for second week in a row. Almost all sectors participated in the rally. HCL Tech, SAIL, IDFC, Reliance, Tata Motors, TCS, ICICI Bank, ZEE, Axis Bank, Siemens, Infosys, Jindal Steel, Wipro, Reliance Infra, M&M, Grasim, Reliance Capital and HDFC Bank were among the top gainers, all gaining more than 5% over the week.

Markets continue to strengthen as fears of the recession alleviate with every passing day. The global economy seems stabilizing. While the data across the globe suggest that the worst is behind us, it is amply clear that the next growth engines for the global economy are China and India. The possibilities of a fresh peak remain open from here. On the down side, we may see support coming in from funds, market participants and retail investors at every decline. Corrections should be utilized to buy into the strong momentum stocks. Nifty may find support below 4800 and may try to make an attempt to reach 5200 once again. Avoid carrying short positions.

BEL @ 1580-1590 Tgt 1680 SL 1560
ZEEL @ 253-255 Tgt 282 SL 248
TATATEA @ 895-900 Tgt 945 SL 880
HINDZINC @ 900-905 Tgt 960 SL 890
NATIONALUM @ 376-380 Tgt 404 SL 365
AUROPHARMA @ 755-760 Tgt 840 SL 730

RELCAPITAL @ 845-850 Tgt 800 SL 870

Sunday, November 8, 2009


Markets recovered from the lows taking cues from the global markets and on back of extremely encouraging auto sales and cement dispatch numbers. After falling sharply at the beginning of the week, markets recovered sharply to end the week with close to 1.8% gain on Nifty. The market breadth was positive with 4 stocks advancing for each losing stock. Bharti, ICICI Bank, Ranbaxy, GAIL, Unitech, Tata Steel, Zee and M&M were the prominent Nifty gainers while Ambuja Cement, Tata Power, ACC, HUL and Idea figured among the major losers in Nifty.

The results season is over and the overall direction of the markets would depend on the sentiment from global financial markets. Markets may trade volatile during the coming week finding resistance between 4850-4900 and support between 4500-4550. We expect the action to remain stock specific and hence it is recommended to resort to stock specific trades on either side.

WIPRO @ 590-592 Tgt 620 SL 580
CROMPGREAV @ 376-378 Tgt 400 SL 370
MCDOWELL-N @ 1055-1060 Tgt 1120 SL 1030
TATAMOTORS @ 558-560 Tgt 594 SL 550

BHARTIARTL @ 323-325 Tgt 300 SL 330
GMRINFRA @ 66-67 Tgt 63 SL 68
M&M @ 992-995 Tgt 940 SL 1020

Monday, November 2, 2009


Both Sensex and Nifty lost more than 5% over the week amid extremely negative market breadth. Almost all sectors witnessed profit taking without any exception. Only some of the IT and Pharma stocks showed some resilience. Dr Reddy, Ranbaxy, Tata Motors, Wipro, Sun Pharma, Zee and Grasim were the only stocks which managed to escape the week without losses. The prominent losers were RCOM, Suzlon, DLF, Unitech, Reliance Capital, Reliance Infra, Hindalco, Reliance Power, ICICI Bank, JP Associates, Idea, Bharti, Siemens, Tata Steel, Jindal Steel and SAIL all of which lost more than 10% over the week.

As predicted last week, markets witnessed correction throughout the week amid volatile global markets. The correction may extend further as markets face resistance at every rise. 4500/4400 on Nifty is still a possibility but we may see a bounce back before that happening. 4850-4900 is a strong resistance for immediate term and we may see Nifty honoring this resistance. However, we may witness stock specific action going forward. Sell weaker sectors/stocks on rises and buy stronger ones on dips. Falls like these give opportunities to buy strong medium term stocks. Following are some of these stocks.

INDIANB @ 148-150 Tgt 220 SL 135
SUNPHARMA @ 1300-1320 Tgt 1600 SL 1220
POLARIS @ 150-152 Tgt 200 SL 140
OFSS @ 2050-2070 Tgt 2600 SL 1960

Sunday, October 25, 2009


Markets slipped from nearly one and a half year highs amid extremely negative market breadth. Both Sensex and Nifty lost close to 3% as mid caps and all sectoral indices, with the exception of Technology and metals, lost ground. Heavy weights Reliance, Grasim and L&T broke down sharply and figured among the biggest losers in Nifty. There were losers in almost all sectors except some outperformers from Metals and Technology. HCL Tech, Nalco, Hindalco, TCS, ITC, Infosys and Wipro were among the major gainers while Grasim, Reliance, Reliance Capital, L&T, Tata Steel, Suzlon, Unitech and Reliance Infra were the major losers.

During the last few months, markets didn’t look as fluid as they are looking at this point of time. There are certainly reasons for this.
a. The market breadth during the last week was extremely negative.
b. There were some significant breakdowns in some of the heavy weights which make the markets not as lucrative as they looked for last few months. Heavy weights like Reliance, L&T, Grasim and Bharti have seen strong breakouts on the downside which doesn’t augur well for the markets. Charts signal that medium term peaks are made in these stocks and further downside looks imminent though we may see intermittent bounce backs. Any rise in these stocks is a selling opportunity and hence we recommend traders to avoid.
c. Nearly one fifth of the stocks traded in the F&O segment are trading near their respective lows for the month.
If Nifty were to breach 4900 decisively, then we may see sharp downside towards 4400, a fall which is long overdue. Exit long positions if Nifty closes below 4900 and look for opportunities to create shorts.

JPHYDRO @ 75-76 Tgt 70 SL 76.60
SESAGOA @ 330-333 Tgt 300, 284 SL 340
RELCAPITAL @ 890-900 Tgt 800 SL 920
FINANTECH @ 1300-1310 Tgt 1200 SL 1330
SUZLON @ 86-86.50 Tgt 80, 72 SL 88
HCLTECH @ 330-333 Tgt 300 SL 340
RELMEDIA @ 335-337 Tgt 310 SL 345

Monday, October 19, 2009


Markets continued the uptrend and both Sensex and Nifty moved up close to 4% during the week. It was a perfect rally before Diwali with fireworks from all sectors. The second quarter results were heartening and so far there is no big disappointment. The market breadth was extremely positive and provides inkling about the future. SBI, Jindal Steel, Cairn, DLF, Tata Power, SAIL and TCS were among the top gainers while Ambuja Cement, BPCL, RCOM and Bharti remained top losers.

The global clues are strong and we may expect a strong opening here back home. We may see Nifty finding resistance at 5200 and retrace for the day. If we look at the medium term, as long as it remains above 4900, the possibilities of a fresh peak beyond 6000 are open. It requires a close below 4860 to put an end to this stupendous rally. Now the baton passes on to Reliance and ONGC to lead the rally from here on. Accumulate these stocks for surprising gains.

The following are the positional calls for the coming couple of months.

ESSAROIL @ CMP Tgt 200 SL 160
ONGC @ CMP Tgt 1560 SL 1140
RELIANCE @ CMP Tgt 2700 SL 2120
IVRCLINFRA @ 395-400 Tgt 500 SL 380

Sunday, October 4, 2009


Markets continued the uptrend both Sensex and Nifty moved up more than two and a half percentage points during the week. It was a shortened week lasting just 3 trading days. Technology, private sector banks, metals and telecom were among the sectors which gained the most. Axis Bank, ICICI Bank, TCS, Wipro, Rcom and Bharti were the top nifty gainers. Grasim, BPCL, Dr Reddy and Unitech were among the biggest losers.

The global cues are anything but strong going into the next week. We may see markets open with a downward gap as suggested by SGX nifty. Supports for Nifty exist at 5000 and further at 4920. We may see markets finding support below 5000 and continue the trend. The trend is intact as long as Nifty trades above 4860. We expect Reliance to lead the next leg of rally and support may come from Cement, Infrastructure, Realty and other mid-caps. Caution is advised if Nifty closes below 5000.

ABAN @ 1620-1625 Tgt 1900 SL 1600
DABUR @ 140-141 Tgt 148 SL 137
GAIL @ 358-360 Tgt 380 SL 354
ESSAROIL @ 155-156 Tgt 166, 172 SL 150
TATACHEM @ 274-276 Tgt 300 SL 268

IDEA @ 74-74.50 Tgt 71, 68.50 SL 75.50
HDFC @ 2700-2710 Tgt 2590 SL 2740
FINANTECH @ 1400-1410 Tgt 1320 SL 1430
RNRL @ 88-88.50 Tgt 84, 78 SL 89.50
TV-18 @ 100-102 Tgt 88, 82 SL 105

Monday, September 21, 2009


Markets continued the uptrend and both Sensex and Nifty gained close to 3%. It was a commendable performance given the fact that the global markets and the overall sentiment were not very encouraging for most part of the week. More over the market breadth looked further better with 6 out of every 10 stocks traded in the F&O segment gaining more than 5% over the week. Banking stocks started from where they left last week and continued to rally. Metals, Auto, Infrastructure, Technology, Capital Goods and Pharma stocks were among the major gainers. It was a week where even laggards like Telecom, Shipping, Hotels and Aviation participated. The top Nifty gainers were

Markets are far stronger than what they looked like on the face of it. The rally has not seen participation from the heavy weights like Reliance, ONGC, NTPC, Bharti etc. One could imagine what it could have been if only these biggies participated. There is more steam left in the markets. It reminds of a typical secular bull run where all sectors participate in turns. It was banking which lead the rally during the past couple of weeks and now it is the turn of Infrastructure and realty. We expect the laggards to take the lead and keep the markets buoyant from here. We’ve already seen a hint of that happening on Friday, when ADAG group stocks started moving up. We may not see a very big correction in the indices atleast. Reliance breaching 2200 and we may see markets entering the next leg which may take Nifty towards 5600. Stay Long.

LITL @ 458-460 Tgt 500 SL 440
WIPRO @ 564-566 Tgt 584, 600 SL 555
HDIL @ CMP Tgt 360 SL 310
LICHSGFIN @ 750-752 Tgt 800 SL 740
IVRCLINFRA @ 372-374 Tgt 400 SL 366
UNITECH @ 110-111 Tgt 120, 132 SL 106

BANKINDIA @ 403-406 Tgt 380 SL 412
ORIENTBANK @ 233-234 Tgt 220 SL 240

Sunday, September 13, 2009


Markets made a strong bounce back after remaining range bound the previous week. Both Sensex and Nifty gained more than 3%. Banking Index contributed to the rises by rising more than 6% week on week. Metals and Pharma were the other sectors which gained the most. It was not a very good week for Technology, FMCG, Auto, Cement and Power. Erstwhile outperforming Sugar sector lost some momentum and ended the week with losses. Reliance rose nearly 8% during the week and other biggest gainers were Hindalco, ICICI Bank, Sterlite, Tata Steel, SBI and Tata Motors. The major Nifty losers were REC, HUL, Maruti, M&M, Suzlon and DLF. All in all it was a good week for stock specific traders.

Markets refuse to come down irrespective of whatever fundamentals. The entire rally is driven by liquidity and every rise is being treated with caution. As long as caution is in the air, we don’t expect the markets to correct substantially. Hence one must trade long with STRICT STOP LOSSES. Buy on sharp corrections with an overall stop of 4460 on Nifty. 4600 remains a strong support in the short term and the next resistance comes only at 5000. Since most of the asset classes across the globe are moving in tandem, expect our markets to follow the global trend. One must not commit long term funds in the markets since it would be difficult to contain the fall when it really happens. Wait for the confirmation of reversal to build short positions.

LITL @ 410-412 Tgt 444, 500 SL 390
POWERGRID @ 107 Tgt 111, 115 SL 105
YESBANK @ 170-172 Tgt 182, 190 SL 168
ADLABSFILM @ 340-342 Tgt 374, 410 SL 334
HDIL @ 298-300 Tgt 360 SL 288
ABAN @ 1460-1470 Tgt 1900 SL 1400
UNITECH @ 103-104 Tgt 120, 132 SL 97

Sunday, September 6, 2009


After losing sharply for the first 4 days of the week, markets reversed sharply to negate most of the losses and closed the week with slender losses. Both Sensex and Nifty lost more than 1% week on week. PSU oil marketing companies were in the lime light along with other PSU stocks. RCom, Maruti, Unitech, Hero Honda, Tata Motors and HUL were the other Nifty gainers (5%+). Bharti, Dr Reddy, BHEL, Reliance and Sterlite were among the major losers.

The global cues are positive and hence we may see a strong opening here. 4750-4760 on Nifty acts as a strong resistance. Multiple supports are identified between 4560-4600. Markets may trade range bound with stock specific rallies. A close above this level may turn the things for a rally towards 5000. Trade stock specific with adequate stop losses.

LITL @ 408-410 Tgt 444, 500 SL 390
ICSA @ CMP Tgt 224, 260 SL 200
YESBANK @ 167-168 Tgt 182 SL 162
ADLABSFILM @ CMP Tgt 374, 410 SL 340
HDIL @ 294-295 Tgt 322 SL 288

Sunday, August 23, 2009


Markets opened the week on a weak note and traded weak for the first half but saw a late recovery to close with week on week gains. Both Sensex and Nifty gained just over a percentage points over the week. All the major indices were marginally in red week over week. All sectors witnessed mixed action. Cement, banking and metals were the sectors, which saw selling pressure. Ranbaxy, HDFC, BHEL, NALCO and ABB were the top Nifty gainers while Cipla, Unitech, Reliance Infra, Tata Motors, ACC, Reliance Capital and Sterlite were the major losers.

The cues going into the next week are positive. US and European markets witnessed a rally on Friday and Asian markets are trading strong this morning. Nifty faces huge resistance in the zone of 4600-4620 in the immediate term. We expect Nifty to honor this resistance and retrace. Supports are identified at 4450 and further at 4360. A close above 4600 is crucial for this rally to sustain. It is expiry week and we may see the volatility increase. The global markets need to be watched closely since all asset classes are moving in tandem globally irrespective of broader fundamentals. For the time being, trade stock specific with adequate stoplosses.

LITL @ 408-410 Tgt 440, SL 400
ABAN @ 1155-1160 Tgt 1220, 1300 SL 1120
YESBANK @ 168-170 Tgt 182, 190 SL 164
IVRCLINFRA @ 333-336 Tgt 380 SL 325
VOLTAS @ CMP Tgt 160 SL 137

Sunday, August 16, 2009

Markets staged a strong bounce back after initial weakness and ended the week with good gains. The market breadth was positive and all mid-cap and sectoral indices were up more than 2% WoW. Technology, Pharma, Oil & Gas and Metals were sectors which were in lime light. Ranbaxy, Tata Motors, HCL Tech, Unitech, DLF and GAIL were the top nifty gainers while M&M, HUL, ACC and Ambuja Cements figured among the top losers.
The global markets are trading weak this morning and the sentiment going into the week is negative. We may see a strong down ward movement and a consolidation with a downward bias going forward. 4600 is a strong resistance and hence only a close above this level could turn things for good. 4400-4420 is a strong short term support zone. A move below this level could take the markets down sharply towards 4000. Trade stock specific with strict stoplosses.

GAIL @ 334-335 Tgt 360 SL 328
EKC @ 188-190 Tgt 212 SL 180
TATACHEM @ 250-252 Tgt 271, 292 SL 244

IDEA @ 78-79 Tgt 76, 72.5 SL 81
HINDUNILVR @ 260-262 Tgt 249, 242 SL 266
TATACOMM @ CMP Tgt 478, 460 SL 515
ASHOKLEY @ 37-37.20 Tgt 34.5, 32 SL 38
YESBANK @ 160-161 Tgt 151 SL 164

Sunday, August 9, 2009


Sensex and Nifty both lost by more than 3% WoW due to heavy selling pressure during the later half of the week. The fall was lead by Chinese markets, which were showing glimpse of collapse and the sentiment percolated to some of the other markets. However, positive non-farm payroll data from US pushed the markets higher on Friday and the sentiment going into the next week is positive.

The global cues are positive and we may see positivism at the opening. Weak monsoon on the fundamental front is a big worry and hence that may weigh high on Indian equities in the medium term. 4600 is a big resistance for nifty in the immediate term and it finds support at 4420. One has to take stock specific exposure and trade with strict stoplosses.

LICHSGFIN @ CMP Tgt 660 SL 610
HINDZINC @ 735-740 Tgt 765, 800 SL 720
PATNI @ 342-345 Tgt 362 SL 338
LITL @ 400-402 Tgt 422, 441 SL 390

Sunday, August 2, 2009


Sensex and Nifty gained 1.9% and 1.5% respectively lead by technology and mid-cap stocks. The market breadth was positive with average gain of close to 3% on F&O segment. The rally was driven by better than expected corporate earnings, strong global markets and rallies in commodities and other asset classes.

The sentiment is clearly bullish but we may see stock specific directional movement going forward. It is a buy on dips markets with a day close stop loss on Nifty below 4400. Support and Resistances on Nifty exist at 4540 and 4800. Nifty may take support below 4600 and make an attempt towards 4800 in the coming week. The situation on the fundamental front does not look too rosy as it is made out to be but as long as the markets are trending, let us be with the markets. It is a traders’ market and hence positions should be initiated with trading perspective with strict target objectives and stop losses.

BANKBARODA @ 430-432 Tgt 450 SL 425
PUNJLLOYD @ 240-242 Tgt 275 SL 236
CANBK @ 282-284 Tgt 320 SL 275
FINANTECH @ 1400-1410 Tgt 1600 SL 1370
APIL @ 520-525 Tgt 590 SL 510

Sunday, July 12, 2009


Markets tanked after the announcement of the Budget. There was nothing much that can be done since the FM was struck between the devil and the deep blue sea. When markets build optimism based on illusions and not on reality, such reactions are bound to happen. Both sensex and nifty lost close to 10% week on week as almost every sector gave in to the selling pressure. ITC, Hero Honda, Ambuja Cement were among the top Nifty gainers while Suzlon, Reliance Capital, Reliance Infra, Unitech, DLF, ICICI Bank, R Com, Tata Steel, L&T, Siemens, Axis Bank, R Power and SBI lost anywhere between 15-30% week on week.

The fundamentals of the economy are certainly looking bleak. For me the major problems are unemployment, the security threat from our neighbours and the effect of global recession on India. There are talks of green shoots sprouting up all around but we are no way near to a ‘U’ shaped recovery. The rises that we’ve seen do not support any recovery theory. There are already rumours in the air that a downgrade on India is likely in the immediate future. Every positive news must be sold into and we do not expect the markets to stage a very strong recovery from these levels. The momentum would remain on the downside in the short to medium term. Our markets may open with a gap down going by the global cues but we may see recovery towards 4000. On the upside 4020 is a strong resistance and any move above 4000-4200 should be utilized to create medium term short positions. Sell on rises and maintain short positions. Avoid any long positions. Sell not for today, always sell for tomorrow.

Sunday, July 5, 2009

Dated 6th June, 2009

Markets were trading cautious throughout the week and ended the week with slender gains. Both Sensex and Nifty gained over a percentage points while Bank Nifty closed up with more than 2% week on week gains. Tata Steel, ONGC, GAIL and BPCL were the prominent gainers in Nifty and Zee, Axis Bank, Sail, HDFC, PNB and M&M were other gainers. Suzlon and Tata Motors were among the worst performers with more than 10% erosion week on week. Rcom, ACC and Hindalco were among the other losers.

Markets took some positives from the Railway budget and moved higher on the last trading day of the week. The big event is due on Monday - The Union Budget. The budget this year is a very crucial event since this is the first budget of the UPA’s second term and would provide us the broad intent on policy and direction. One must be cautious and avoid trading just before the budget. The indications so far point towards a clear long-term vision by looking at the measures taken on educational reforms and the intention to provide national ID cards. The big question still is to see whether the reforms process could continue with out much tinkering with the basic tax structure in the wake of falling revenues due to global economic meltdown and the indications of scanty rainfall for this Kharif season. If one excludes the first couple of days of this week, the overall direction of the equity markets would still be dictated by the global factors. We expect to see some stock/sector specific rallies going forward but the overall direction would remain bearish.

Sunday, June 21, 2009

Dated 22nd June, 2009

Sensex ended its relentless rally and closed in the red after 14 weeks of WoW gains. Sensex lost 4.7% while Nifty went down by 5.9%. The mid cap indices moved lower in line with the broader markets. Market breadth was negative for almost the entire week. Banking stocks were among the gainers while all other sectors corrected. PNB, Reliance Infra, Cipla and SBI were the top nifty gainers. Reliance was the most prominent loser with a fall of more than 13%. Sterlite, Hindalco, ACC, NTPC, SAIL and ONGC were the other Nifty stocks, which lost more than 10%.

The weakness is visible across all sectors. The global cues suggest a strong opening here in our markets but the rises from here are not likely to sustain. 4400 on Nifty acts as a stiff resistance for immediate term while support exists at 4200. It may try to trade and consolidate in this band for a couple of days before breaking out. Long positions must be avoided at any juncture and stock specific short positions are recommended with strict stop losses. Stocks like Union Bank, Central Bank, Mphasis, LIC Housing Finance and sugar stocks Renuka, Bajaj Hindustan are looking strong. Hence avoid these counters and longs can be contemplated with a strict short term view in these stocks. Cement, Metals and Infra stocks show weakness. One should utilize rises to create short positions in these counters with predefined stoplosses. Sell Lupin, Sterlite, ACC, Rajesh Exports, FSL, Wockhardt and Karnataka Bank for immediate gains.

Sunday, May 24, 2009

Dated 25th May, 2009

Markets opened with circuits up after the unexpected outcome of the elections. Sensex and Nifty moved up 14.08 and 15.44% respectively. Almost everything moved up with the exception of front rung IT stocks. Mid-cap stocks moved up very sharply and half the stocks traded in f&o segment went up by more than 25%. Banking Index gained by one fourth too.

It is becoming increasingly difficult to fathom the reasons for a sustained rally in global financial markets. The momentum is up and hence it is risky to expect the markets to fall immediately. We might see a correction as sharp as the rally when the sentiment turns negative. The fundamentals will hurt the markets more than they hurt them now. Long positions should be contemplated only for intraday and long positions that hurt the most should be liquidated at the end of the day. Avoid carrying long positions. Wait for the change in direction for going short.

Sunday, May 17, 2009

Dated 18th May, 2009

It was 10th consecutive week of gain for Sensex, the longest rally we’ve witnessed in recognizable past. Almost all sectors traded mixed during the week with reasonably good market breadth. Nalco, Zee Tele, Ranbaxy, HDFC and ICICI Bank gained more than 10% during the week while Cairn, ONGC, Sterlite and Tata Communications lost anywhere between 5-10%.

Looking at the outcome of the Elections and the clear mandate given to UPA, our markets should open with a huge gap up as is indicated by the Singapore Nifty. There is a possibility that we may see them losing ground from then. We might see a reversal from here and hence selling is surely recommended at the higher levels of Monday with a strict day close stop losses. SGX Nifty points a level of 4100-4150 at the opening. If this were to be the case, one can have a tight day close stop loss of 4250 and look for selling opportunity in Nifty and specific stocks. Risk averse traders better avoid the markets and wait for clear direction before entering.

Sunday, May 10, 2009

Dated 11th May, 2009

Markets went up for another week. Sensex and Nifty gained more than 4% along with all mid cap indices. The rally was due to the huge rally at the beginning of the week. Our markets under performed almost all the global peers due to nervousness of announcement of election results due this weekend. Metals were among the top gainers and Cement stocks witnessed notable losses. Oil marketing stocks saw weakness due to rising crude oil prices.

The momentum is losing strength, particularly here in Indian markets. Global markets still support gains. Charts in many global markets and commodities suggest another leg of rally before crashing. The election results should be a big trigger and in all probability we will be witnessing a huge crash. By the beginning of the next week, we see even global markets cooling off adding to the pain. One should get out of all long positions by the end of this week. We expect the cement and auto numbers to give negative surprises on their month on month numbers of May and hence recommend traders to create short positions on rises. Trade cautiously with adequate stoplosses.

Tata Power@ 895-900 Tgt 920, 1000 SL 870
Tata Tea @ 708-710 Tgt 760, 800 SL 690
Welspun Gujrath @ 110-111 Tgt 119, 124 SL 107

United Spirits @ 682-685 Tgt 654, 640 SL 694
Tata Communication @ 568-570 Tgt 540, 525 SL 580
Hero Honda @ 1230-1235 Tgt 1160, 1100 SL 1260
NTPC @ 193-194 Tgt 186, 182 SL 198

Sunday, May 3, 2009

Dated 04th May 2009

Though indices managed to move up during the last couple of weeks, distribution could be seen in many second rung stocks. The negative market breadth is a clear indicator to this effect. All the global markets are trading in green and SGX nifty suggests huge gap up opening back home. Nifty should find its peak anywhere between 3700-3800 range. A crack after a gap up opening is another possibility, which cannot be ruled out. We expect very little upside in many stocks and a huge potential downside. It will take a single session to wipe out the gains accrued all these days and hence one should trade the markets cautiously with strict stoplosses. Conserve your money and time for the big fall and initiate short positions before the fall. We shall send you an alert when we sense a big downside opportunity. Following are some calls for this month, which should be initiated at the appropriate levels with strict day close stoplosses.

Tata Power @ 875-880/above 920 Tgt 920, 1000 SL 850
Nalco @ CMP Tgt 238, 260 SL 200
GE Shipping @ 198-200 Tgt 220, 260 SL 190

Hero Honda @ 1220-1230 Tgt 1100, 1000 SL 1260
Bank of India @ 260-262 Tgt 240, 220 SL 270
Divis Lab @ 890-900 Tgt 800, 760 SL 930
NTPC @ 198-200 Tgt 182, 170 SL 206
Ambuja Cement @ 85-87 Tgt 78, 64 SL 94

Sunday, April 19, 2009

Dated 20th April, 2009

It was another week of gains for the markets but not as vigorous as was seen for the past few weeks. The market breadth was positive and the markets witnessed extreme volatility during the later half of the week. Banking stocks were in thick of the action as Bank Nifty rose more than 10% week on week. Metal stocks, after rallying relentlessly for few weeks, corrected from the highs witnessed early this week. SBI was the top Nifty gainer followed by Axis Bank, Reliance Capital, ICICI Bank, Unitech, ABB, BHEL and PNB. Nalco, Hindalco, Cairn, TCS, Tata Communication, GAIL, SAIL and Reliance power were the top Nifty losers.

The increasing volatility signals the end of this intermediate Bull Run in the markets. One can start looking at selling specific stocks at rises and liquidating all long positions. We might see another sharp rise to the levels of 3500 on Nifty and 11400 on Sensex before they crash down below 3000 and 10000 respectively. The fall is imminent but it is the question of timing the markets. Due to lack of fundamental support for the rise, once the selling starts it will be difficult to contain and the ensuing fall may be sharper than the rise. We see a possibility of stocks and indices eroding all the gains that were recorded during the month at this expiry itself. Hence one should only look at creating Medium term/Long term short positions. Avoid long positions at any level.

Sunday, April 12, 2009

Dated 13th April,2009.

Markets went up for 5th week in a row. It was one of the most spectacular rises we have seen for a long long time. It was a strong breakout technically without any fundamentally solid reason primarily driven by the strong support from global markets. The market breadth remained extremely positive and a third of the stocks traded in F&O segment recorded gains in excess of 10%. The major gainers included L&T, Tata Steel, Unitech, HCL Tech, Reliance Infra and Suzlon while BHEL and ACC were among the losers.

The pace of this rise may raise many eyebrows but it is for real. Though the rally lacks any fundamental backing, it was strong enough to keep the markets afloat and keep them above the October-November lows for some time. The results season is about to begin and looking at the indications we are getting, we are not going to witness any positive news flow from the companies in terms of guidance. The elections go underway this week and we don’t expect much there as well. All in all, this is a baffling move, which may culminate with a sharp rise upside in a couple of days before starting its downward journey again. Avoid carrying long positions.

Sunday, March 22, 2009

Dated 23rd March, 2009

Markets ended with gains for second consecutive week. It was the week where individual stocks got more attention than the markets. More than one fourth of the stocks traded in F&O segment ended the week with more than 10% gain. Technology, Aviation, Metals, Realty, Infra and Pharma were the sectors, which witnessed positive momentum whereas Cement, Auto and PSU banks and oil marketing stocks were showing relative weakness. DLF, Hindalco, Sterlite, Suzlon, HCL Tech, Nalco, Sail, Rcom and Zee were the top gainers. L&T, BPCL, ACC, Cipla and Unitech remained the top Nifty losers.

We might see our markets open with an upside gap due to strong Asian markets and may retrace from the highs. Utilize these opportunities to exit the markets. Nifty might face stiff resistance between 2860- 2900. We might see the month of April bringing a whole lot of negative surprises on the elections and results front hence we view this as the right opportunity for short and medium term traders to initiate and hold on to the short positions. One must progressively short Metals, Auto and Cement stocks since they are the ones, which outperformed the overall markets due to some positive news flow. I expect these sectors to lead the next leg of correction. Initiate short positions at higher levels and hold the positions for the coming 2 months.

Yes Bank @ 47-48 Tgt 42, 38.50 SL 49
Ranbaxy @ 150-152 Tgt 134, 122 SL 155
JSW Steel @ 192-194 Tgt 180, 172 SL 198
Titan @ 740-745 Tgt 700, 680 SL 755

Sunday, March 15, 2009

Dated 16th March, 2009

Both the major indices rallied sharply on the last trading session taking cues from global markets. Auto, Banking, Technology and Cement stocks participated in the rally. PSU oil marketing stocks were particularly weak as per our prediction last week. Tata Motors, ICICI Bank, Sterlite, HDFC, Nalco, Tata Communications, Reliance and RPL were among the major Nifty gainers. HPCL, BPCL, Bharti, IOC and Zee were the major losers.

We might see a positive opening on Monday on back of a buoyant Friday close and there may be some follow up buying. But these rises are not likely to sustain. Technically major resistance for Nifty comes around 2800. Short traders must wait for opportunities to sell anywhere around this level. Be stock specific and trade short at higher levels. Fundamentally we don’t see any major reason for a sustained rally. There are some positive indications on the auto sales and cement dispatch figures. We feel that these numbers do not reflect the true picture due to extraneous reasons like election fever and the govt schemes running on fast track. But this myopia is likely to evaporate in 1-2 months. Aptech, Moser Baer, Yes Bank, IDFC, Hotel Leela, Canara Bank, Bharti and Idea may try to test lower levels in the coming week. One can trade short in these stocks with adequate stoplosses. Avoid long positions.

Sunday, March 8, 2009

Dated 9th March, 2009

Though it was a surprise, technically the pull back had to happen after such a steep cut. As time passes, it is becoming increasingly difficult for the markets to sustain a pull back. I am afraid we might see a time, not in the very distant future, when even pull backs as vigorous as this would be hard to come by. Any rise like this should be utilized to sell into irrespective of the valuations. We see no reason for the markets even to stabilize at this juncture, let alone a rally. Let all traders accept this reality and continue moving out of the markets and creating short positions. At levels that we are going to witness a few quarters from now, we might not dare to sell. Make the most of these relatively good times and SELL.

IOC @ 433-435 Tgt 424, 413 SL 438
Praj Industries @ 50-50.5 Tgt 46, 41 SL 52
India Infoline @ 42-43 Tgt 38.60, 35 SL 44
Aditya Birla Nuvo @ 360-364 Tgt 340, 320 SL 370
HPCL @ 276-278 Tgt 268, 260 SL 282
Reliance Capital @ 296-300 Tgt 271, 260 SL 305

Sunday, March 1, 2009

Dated 2nd March, 2009

Markets managed to end the week in green despite weakness in global markets. Auto stocks lead the pull back. M&M, Tata Motors and Maruti were the top gainers in Nifty. Infosys, ONGC, Tata Communication, NTPC and BHEL were among the other gainers. Ranbaxy was the worst loser losing over a fifth of its market cap in the week. ABB, ACC, PNB, HDFC, SAIL and Zee were the other losers.

Most of the global markets breached October lows and drifted much lower. The outperformance of our markets is not likely to last for long given the bleak global outlook. Asian markets are trading weak and we should expect a gap down opening and the cuts may get much deeper during the course of the week. 2660-2680 is the strong support for Nifty and if it manages to breach this level, the next support comes only at 2520, the RIL-RPL merger not withstanding. Sell at the opening and hold on to short positions.

Divis Lab @ 860-864 Tgt 824, 800 SL 875
ABB @ 370-372 Tgt 348, 336 SL 380
ACC @ CMP Tgt 494, 478 SL 526
Reliance Capital @ 360-362 Tgt 333, 320 SL 370
Tech Mahindra @ 254-256 Tgt 232, 220 SL 262
Grasim @ 1370-1375 Tgt 1320, 1200 SL 1400

Monday, February 23, 2009

Dated 24th February, 2009

Markets plunged sharply amid growing concerns of slow down and uninterrupted flow of bad news from the global markets. Almost all sectors too the hit with Banking index falling by a whopping 14% week on week. Small, medium and large cap stocks fell with out any exception. ICICI bank was the worst Nifty loser and lost more than one fifth of its market cap. Hindalco, Rcom, Reliance Infra, Tata Steel, Tata Communication, M&M, SAIL, HDFC, Suzlon, SBI, Unitech, PNB, RPL, L&T and Reliance were other counters which lost more than 10% week on week. Maruti, BPCL and ITC were the only Nifty stocks, which managed to end the week with out any losses.

Unlike the trend has been for years, we are going to witness the overall markets dominating the futures movement and the expiry rather than futures outstanding dictating the overall market trend. Markets might open with a downside gap and may take support at lower levels. 2660-2680 provides a good support for Nifty and we may see a bounce back from these levels. It Nifty manages to close below this band, we might see another sharp fall to 2500 very soon. Markets have to correct to levels of October-November lows sooner or later in line with the other global markets and it is a good opportunity for traders to build short positions in Nifty at rises. The heavy weights have to correct from this juncture and we will witness the 2500 levels in Nifty very soon. We have been recommending short positions since past 6 months and we continue to hold this belief that markets are heading for much lower levels. And the outlook cannot be complete with this last sentence “Avoid long positions at any level”.

Sunday, February 15, 2009

Dated 16th February, 2009

Nifty managed to close well above 2900 with good market breadth. Almost all sectors participated in the move. Technology remained subdued while sectors like Fertilizer, Auto, Financials and Capital goods moved up. DLF, M&M, Siemens, Nalco, Unitech, RCom, Zee and L&T were the top Nifty gainers. HCL Tech, Dr Reddy, Ranbaxy, Infosys and ABB figured among losers.

Nifty decisively broke the level of 2900 and closed above it. Multiple resistances exist above 3000 and we do not see any reason for the markets to add on to these gains. The interim budget is going to be presented in the Parliament today and hence expect volatility for this week. One should try to get out of equities at every opportunity. Medium term traders should utilize the opportunity to progressively build shorts with 2-3 month perspective.

ABB @ 444-446 Tgt 430, 419 SL 454
Praj Industries @ 61.5-62 Tgt 56 SL 64
India Infoline @ 52-53 Tgt 48 SL 55
Sterlite Industries @ 280-282 Tgt 263 SL 294

Sunday, February 8, 2009

Dated 9th February 2009

Markets recovered from the lower levels in line with the global markets and were held strong on the last trading day. Some of the small cap counters in F&O rallied after being beaten down continuously for past many months. Market breadth was negative for the major part of the week. Realty stocks witnessed mixed trends as the biggies DLF and Unitech got a drubbing while the smaller counters recovering smartly from the lows due to short covering. IT, Banking, Pharma and Financials lost further ground during the week while Cement and Shipping stocks were among the sectors which gained the most. Grasim, HCL Tech, ACC, SAIL and GAIL were the top Nifty gainers while Hindalco, M&M, Suzlon, HDFC, Reliance Infra, L&T, Reliance Power, Tata Motors and Sterlite lost anywhere between 5-10%.

2880-2900 is a crucial resistance area for Nifty in the short term. Markets may open with an upside gap given the strong global clues but there is every possibility that they may correct. A close above 2900 on Nifty may spring an upside surprise of another 100 points but the rallies are not likely to sustain. We might see distribution in many stocks taking place in the coming week/s and markets, in all probability, may resume their downward journey again. Wait till later half of the week for higher levels to create short positions progressively with a 2-3 month perspective. The possibility of negative surprises is looming large in the markets and it may come in at any time and in any form. Avoid long positions at any levels.

HCL Tech @ 130-132 Tgt 118 SL 135

Polaris @ 52-53 Tgt 48 SL 55

Mercator Lines @ 32-33 Tgt 28 SL 35

Sesa Goa 100-102 Tgt 90 SL 106

Ispat Industries @ 12-12.20 Tgt 10.60 SL 12.60

Sunday, February 1, 2009

Dated 2nd February, 2009

Markets moved up sharply after falling for 3 consecutive weeks. Stocks across all sectors moved up and most of the moves were due to short covering more than anything else. Metals, Auto, Banking and Sugar were sectors, which showed rises. Reliance Infra, Unitech, Zee, SAIL, Ranbaxy, Sterlite, Reliance, ICICI Bank and RPL were among the major Nifty gainers. Suzlon, GAIL and PNB were the only counters which ended the week in red.

The rally we saw just now is purely due to short covering and is not backed by genuine buying and hence we feel that it is not sustainable. The bounces that we are witnessing are bear market rallies, which have the tendency to create lower tops. We feel that it will take a very long time for this bear market to reverse or even find a bottom. One should trade on both sides once the markets finish the fall and form a trading range. At this point in time we recommend remaining only short. Short term resistance on Nifty exist at the current levels and a close above the Friday’s close may see Nifty trying to stage back to 2950 and further 3100 levels. But that looks an uphill task given the fact that markets already rallied quite a bit last week. One should not be fooled by the rallies of this kind and continue selling without worrying too much about the upside. We expect fall in Sugar, Cement and Infrastructure stocks in the following weeks and hence recommend traders to build short positions with adequate stoplosses.

Monday, January 26, 2009

Dated 27th January, 2009

It was another week of downfall and almost all major and sectoral indices saw major falls. Reliance came out with better than expected quarterly numbers but still could not climb much. The weakness was visible all across and Banking was particularly weak despite good results from PSU banks. Powergrid was the biggest Nifty gainer with a 13% rise during the week while Zee lost about a fourth of its market cap. Nalco, Jet airways, Cipla and Hero Honda managed to hold into the green while Tata Steel, M&M, DLF, Ranbaxy, ICICI Bank, Hindalco, Siemens, RCom, Grasim, L&T, Maruti, Tata Motors, Maruti, SBI, HDFC, PNB, Wipro and Sail lost between 10-20% during the week.

A decisive close below 2700 on Nifty more or less indicates the things to come. There seems to be unanimity of opinion about the fall now and what we are going to witness is a range bound movement in Nifty for this week. The put call ratio suggests a range of 2600-2700 on Nifty until this expiry. One should indulge in stock specific short trades and pick the right counters to stay short. Cement counters remained quiet without much downside in January. We might see sharp downward rallies in cement in the coming month and hence we recommend traders to stay short in cement. The chances of negative shocks far exceed the possibility of a positive surprise and we may going forward see some more skeletons falling as promoters feel the funds crunch and had to come out in open due to desperation. We don’t want to get struck with another Satyam, or do we? Avoid buying.

Following are some of the positional calls for the month of February. Initiate short positions in counters where the Feb futures are tradina at or nearing initiation prices with appropriate day close stoplosses. Some stocks may not hit Initiation prices but the targets are in tact. Wait for the right opportunity and go short. Avoid trading long.

Sunday, January 18, 2009

Dated 19th January, 2009

Nifty took support around 2680-2700 band and bounced back. The results so far didn’t do too much to give any big boost to the sagging markets. Realty, Infra, Banking and Metal stocks were among the major losers. Reliance Infra, Infosys, Hero Honda and M&M were among the major Nifty gainers while Unitech, Siemens and DLF lost more than 10% during the week.

Asian markets are trading strong and we might see opening gains on Monday. Short term resistances exist at 2860, 2950 and 3150. The action would remain stock specific as the third quarter results keep coming in. There are two reasons to remain short in the markets. The first one is that the overall medium and long term outlook looks extremely bleak and the other one is what happened with Satyam and Rolta can happen with a host of other companies in terms of price erosion. A negative surprise may see a stock crash in a single day and the days of pleasant surprises are more or less over. Risk takers should go ahead and initiate short positions in counters, whose results are due and cover positions after the announcement of results. Out of every 10 stocks we might see returns in 7-8 counters. One should only remain short at rises and do not carry any long positions.

Hero Honda, Indian Bank, Akruti, Chambal Fertilizer, Gail, Noida Toll, Maruti, GTL and GMR Infra are depicting relative strength and we might see some gains in short term. Avoid short positions in these stocks.

We might see fall in some of the PSU banking stocks which erstwhile remained strong throughout. Other counters where one can expect a fall in short term include IVRCL Infra, Financial Tech, DCB, Hindalco, JSW Steel, Punjlloyd, Pantaloon, Unitech, Voltas, Mc Dowell, Polaris and Jindal Saw.

Sunday, January 11, 2009

Dated 12th January, 2009

It was the most unfortunate day for the corporate India when Mr Ramalinga Raju confessed that Satyam was a fraud. It came as a shocker and nothing less than a ban and a disgorgement order against the auditors of the company should compensate the loss of credibility that India has suffered. A fraud of this nature is beyond imagination and the reaction from the markets is not very surprising. Almost all sectors took a hit and stocks with not so sound credentials were beaten to dust. Not surprisingly, Satyam was the biggest Nifty loser with a fall of 86%. DLF, Rcom, Unitech, Reliance Infra, Siemens, Reliance Power, L&T, HCL Tech, Ranbaxy, RPL, Nalco and Reliance were the biggest losers. Grasim, Maruti, TCS, M&M, HDFC, HUL and Infosys were the top gainers.

The next week is going to be crucial as the results season begin with the announcement of results from Infosys. The results this quarter are likely to throw some negative surprises and we should be prepared for some nasty blows on specific stocks. One should remain short in the markets as we are convinced about the long term bearish outlook.

Sunday, January 4, 2009

Dated 5th January, 2009

Indices recovered from the lows and markets gave a tremendous bounce back in terms of market breadth. Almost all sectors participated prominent among them were Media, Realty, Infrastructure, Metals, Banking, Technology, Capital Goods and Power. Unitech was the top gainer Satyam Computer, RCOM, Sail, Reliance Infra, Hindalco, Ranbaxy, Suzlon, Nalco, ABB, ICICI Bank, Tata Motors, Siemens and L&T were among the top gainers gaining anywhere between 10-35% over the week.

It was one of the worst weeks for us in terms of the success ratio of our weekly calls and outlook. Almost everything went wrong as markets staged a big rally. Markets defy everybody at one point or other and we are at the receiving end last week. We still maintain our overall view about the markets and recommend an exit for investors. We see resistance for Nifty coming at 3160 and further at 3250. We feel that markets are in a secular bear spiral and we might see a prolonged bear run on the markets and the rally that we have seen is a corrective rally which will fizzle out sooner or later. We do not recommend going against the trend and hence are vary of recommending a buy at this point. We suggest traders to wait for opportunities and remain sellers on the way down. Those who are holding on to the short positions should continue to hold the positions as we see troubled times ahead. Avoid long positions at any juncture.