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.