22-Sep-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.


BUY
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


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

14-Sep-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.

Buy
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

07-Sep-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.

BUY
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