Sunday, February 21, 2010


Markets ended the week on mixed note as Sensex managed to close the week in green while Nifty lost nearly half a percentage points week on week. Banking and Technology indices managed to pull through the week with over 1% gain apiece while the mid cap indices lost marginally. It was a week with weak market breadth and high volatility. Pharma, Metals and Technology stocks were among the gainers. Realty, Infrastructure, Sugar, Telecom, Energy and Media stocks lost fair bit of ground. Hindalco, Ranbaxy, HDFC Bank, Axis Bank and Tata Steel were the top nifty gainers with more than 5% rise each. Bharti was the biggest loser with an 11% cut week on week followed by Unitech, Reliance Infra and DLF, all losing more than 5% over the week.

Most markets reacted adversely after the announcement of discount rate hike by the FOMC but Dow Jones managed to escape losses. There are enough indications that the easy money availability would come to an end sooner than later and Fed’s action last week is a step in that direction. Markets are in dilemma as uncertainty still looms large. Hence it would be a stock specific market till the direction is clear. There were head and shoulder formations observed in many individual stocks traded in F&O Segment. The indications are of a reasonably big correction in next month, strictly going by the charts. However, there is an event risk pending as the budget is going to be presented on 26th of this month. Hence it is advisable to stay away from the markets and do not carry many positions.

EDUCOMP @ 720-725 Tgt 680 SL 740
IDEA @ 59-59.50 Tgt 54, 52 SL 60
IFCI @ 50-50.50 Tgt 46.00 SL 51
FSL @ 30.2-30.4 Tgt 27.20 SL 31
INDIAINFO @ 114-115 Tgt 107 SL 118
RELCAPITAL @ 760-765 Tgt 720 SL 775
HCC @ 134-135 Tgt 128 SL 137
RELINFRA Below 990 Tgt 940 SL 1020

Sunday, February 14, 2010


Markets ended the losing streak and bounced back from the lows of last week amid volatile trading. Both Sensex and Nifty gained more than 2% with all mid cap indices participating. Almost all sectors participated during the last week’s rise as most of them have beaten down to their respective multi month lows within a couple of weeks. Unitech, Ambuja Cement, Hero Honda, Grasim, JP Associates, Infosys and ACC were the major Nifty gainers all gaining over 5% during the week. Tata steel was the major loser with nearly 2% loss.

The global markets are marred by the deepening fears of sovereign defaults as some of the European nations fail to muster enough support on the bailout packages. Though there is consensus to save these nations from going into bankruptcy, there is much haggling going on as to who should be funding. Nifty faces major resistance at 4940 in the short term. Possibilities are open for fall towards 4600 of Nifty fails to sustain the current levels. It will be a stock specific market with range bound index movement. Pick the strong stocks from the mid-caps for big gains.

Monday, February 8, 2010


Due to unavoidable reasons "Outlook for the Week" couldnt be published this week.

Markets would continue to find resistance at higher levels and drift lower. Stock specific performances would still be visible.