Markets inched up sharply on the first trading day and corrected during the entire week to manage a close near the last week’s levels. Both Sensex and Nifty closed flat amid range bound trading. Mid cap stocks were active entire week and laggards were trying to play catch up with the markets. All the midcap and small cap indices closed the week with gains. Oil refiners and marketing companies got the deregulation boost from the govt and they staged a strong rally on Friday. Technology stocks corrected fair bit during the week while FMCG stocks were among major gainers.
Markets look undecided as to the direction and hence trade range bound for the coming week. 5200-5400 should be the band in Nifty and it requires breach of either of these levels to take a direction. The action will remain in midcap and small cap stocks as indicated by the market breadth previous week while indices consolidate in a narrow range. The laggards shall take charge here and play catch up. Global markets look for direction too and hence sluggish trading activity is expected across all asset classes. Stay stock specific with proper target objectives and adequate stoplosses.
BUY
BHARATFORG @ 284-286 TGT 304, 320 SL 278
TV-18 @ 90-91 TGT 100 SL 88
RELCAPITAL @ 758-760 TGT 840 SL 736
Sunday, June 27, 2010
Sunday, June 20, 2010
21-June-2010
Markets continue from where they left and extended the gains. Both Sensex and Nifty rallied closed to 3% over previous week. Market breadth was positive and markets traded with upward bias throughout the week. From a low of 5120 Nifty went on to touch one and a half month high breaching 5300 before settling down below 5300. Metals, Infrastructure, Technology, Telecom, Capital Goods and Power were the sectors which gained ground. Reliance ADA Group stocks need a special mention as all of them rallied after truce between Ambani brothers. Reliance Capital (7.75%), DLF (7.72%), L&T (7.24%), RCom (7.01%), Sterlite (6.78%), Reliance Power (6.66%) and Infosys (5.91%) were the major Nifty gainers. BPCL (3.57%), Grasim (3.30%), Bharti (3.13%) and Axis Bank (2.75%) were the major losers.
Global markets are trading positive this morning and we might see our markets open with small upside gap. The immediate resistance for Nifty exists near 5300 and a strong resistance awaits at 5400. It finds strong immediate term support at 5200. Only a breach of this level would negate the short term bullish momentum. Markets are likely to find resistance near 5400 and correct. The sovereign debt crisis is threatening to percolate to other Euro nations and this is going to be a major headwind for the global economic growth in the coming few quarters. There is a major risk of markets going into tailspin if the nations with high public debt to GDP ratios fail to garner much support and able to borrow with reasonable difference to benchmark rates. The recent demand for Spanish Bonds issue should be viewed as a short term reprieve. Hence in the medium term, the upside is capped near 5400 with the possibilities of Nifty attaining 4500 remaining open if the global issues escalate.
OPEN POSITIONS
UNIPHOS Bought @ 180 Tgt 200 SL 178
NAGARCONST Bought @ 176 Tgt 202, 220 SL 176
LITL Bought @ 60 Tgt 72 SL 64
YESBANK Bought @ 281 Tgt 304 SL 274
BUY
FEDERALBNK @ 324 Tgt 360 SL 316
Exited
MPHASIS SL Trig @ 590
HINDZINC SL Trig @ 990
Global markets are trading positive this morning and we might see our markets open with small upside gap. The immediate resistance for Nifty exists near 5300 and a strong resistance awaits at 5400. It finds strong immediate term support at 5200. Only a breach of this level would negate the short term bullish momentum. Markets are likely to find resistance near 5400 and correct. The sovereign debt crisis is threatening to percolate to other Euro nations and this is going to be a major headwind for the global economic growth in the coming few quarters. There is a major risk of markets going into tailspin if the nations with high public debt to GDP ratios fail to garner much support and able to borrow with reasonable difference to benchmark rates. The recent demand for Spanish Bonds issue should be viewed as a short term reprieve. Hence in the medium term, the upside is capped near 5400 with the possibilities of Nifty attaining 4500 remaining open if the global issues escalate.
OPEN POSITIONS
UNIPHOS Bought @ 180 Tgt 200 SL 178
NAGARCONST Bought @ 176 Tgt 202, 220 SL 176
LITL Bought @ 60 Tgt 72 SL 64
YESBANK Bought @ 281 Tgt 304 SL 274
BUY
FEDERALBNK @ 324 Tgt 360 SL 316
Exited
MPHASIS SL Trig @ 590
HINDZINC SL Trig @ 990
Sunday, June 13, 2010
14-June-2010
Markets moved up sharply during the latter half of the week after witnessing sharp fall for the initial half. Both Sensex and Nifty closed down by a meager loss of 0.31% week on week. The market breadth was negative with stock specific performances. Oil & Gas, Technology and Metals were particularly weak while Automobile and Cement stocks gained strength. M&M, Cipla, HDFC Bank and Siemens were among the top gainers while DLF, BPCL, Hindalco, HCL Tech and Unitech were the top Nifty losers.
Global markets are trading positive this Monday morning and we might see our markets open with small upside gap. The immediate resistance for Nifty exists at 5200. Nifty finds strong immediate term support near 5060 and would attempt to reach 5200. 5200-5220 band would act as a major resistance zone. If Nifty is able to breach this resistance, we may see it attaining 5400 in short term. The sovereign debt crisis is threatening to percolate to other Euro nations and this is going to be a major headwind for the global economic growth in the coming few quarters. There is a major risk of markets going into tailspin if the nations with high public debt to GDP ratios fail to garner much support and able to borrow with reasonable difference to benchmark rates. The recent demand for Spanish Bonds issue should be viewed as a short term reprieve. Hence in the medium term, the upside is capped near 5400 with the possibilities of Nifty attaining 4500 remaining open if the global issues escalate.
OPEN POSITIONS
UNIPHOS Bought @ 180 ON 8-JUN TGT 200 SL 175*
NAGARCONST Bought @ 176 ON 8-JUN TGT 202, 220 SL 176*
LITL Bought @ 60 ON 9-JUN TGT 72 SL 60*
MPHASIS Sold @ 570 ON 7-JUN TGT 520* SL 590
HINDZINC Sold @ 960 ON 7-JUN TGT 920* SL 990
FRESH POSITIONS
YESBANK Buy @ 280-282 TGT 304 SL 274
* Revised.
Global markets are trading positive this Monday morning and we might see our markets open with small upside gap. The immediate resistance for Nifty exists at 5200. Nifty finds strong immediate term support near 5060 and would attempt to reach 5200. 5200-5220 band would act as a major resistance zone. If Nifty is able to breach this resistance, we may see it attaining 5400 in short term. The sovereign debt crisis is threatening to percolate to other Euro nations and this is going to be a major headwind for the global economic growth in the coming few quarters. There is a major risk of markets going into tailspin if the nations with high public debt to GDP ratios fail to garner much support and able to borrow with reasonable difference to benchmark rates. The recent demand for Spanish Bonds issue should be viewed as a short term reprieve. Hence in the medium term, the upside is capped near 5400 with the possibilities of Nifty attaining 4500 remaining open if the global issues escalate.
OPEN POSITIONS
UNIPHOS Bought @ 180 ON 8-JUN TGT 200 SL 175*
NAGARCONST Bought @ 176 ON 8-JUN TGT 202, 220 SL 176*
LITL Bought @ 60 ON 9-JUN TGT 72 SL 60*
MPHASIS Sold @ 570 ON 7-JUN TGT 520* SL 590
HINDZINC Sold @ 960 ON 7-JUN TGT 920* SL 990
FRESH POSITIONS
YESBANK Buy @ 280-282 TGT 304 SL 274
* Revised.
Sunday, June 6, 2010
Both Sensex and Nifty moved up close to one and a half percent amid stable to weak global markets. Markets recovered sharply during the last two weeks rising strongly from the low witnessed on 25th of last month. Sensex broke 17000 once again and managed a decent close for the week. Small and Mid cap stocks fared better with CNX midcap index inching up by more than 4% week on week. RCom (14.35%), Idea (11.45%), Maruti (8.56%), M&M (7.19%), HUL (6.49%), Bharti (5.98%), IDFC (5.69%), ONGC (5.09%), Reliance Infra (5.06%), Reliance Capital (4.97%), Sun Pharma (4.48%) were the top Nifty gainers while Suzlon (8.60%), Sterlite (4.88%), Grasim (4.07%), Jindal Steel (3.80%), JP Associates (3.66%) and Unitech (3.06%) were among the top losers.
US markets saw sharp decline on Friday with fears at Euro Zone aggravating with each passing day. EUROUSD corrected sharply as the fears of sovereign defaults refused to recede. The fears saw asset classes across the board tumble as safer currencies Dollar and Gold managed strong gains. Our markets will try to test the support of 4800 before any further move. We may see our markets open with a sharp gap down and try to test the immediate support of 4960. Strong support awaits the markets at 4760-4800. Much would depend on how the global markets fare. Wait for better opportunities to buy strong counters.
BUY
UNIPHOS @ 178-180 Tgt 200 SL 172
NAGARCONST @ 176 Tgt 202, 220 SL 170
LITL @ 59-60 Tgt 72 SL 57
SELL
EDUCOMP @ Mkt Tgt 480 SL 540
TECHM @ Mkt Tgt 610 SL 720
MPHASIS @ 570-575 Tgt 520 SL 590
HINDZINC @ 950-960 Tgt 820 SL 990
US markets saw sharp decline on Friday with fears at Euro Zone aggravating with each passing day. EUROUSD corrected sharply as the fears of sovereign defaults refused to recede. The fears saw asset classes across the board tumble as safer currencies Dollar and Gold managed strong gains. Our markets will try to test the support of 4800 before any further move. We may see our markets open with a sharp gap down and try to test the immediate support of 4960. Strong support awaits the markets at 4760-4800. Much would depend on how the global markets fare. Wait for better opportunities to buy strong counters.
BUY
UNIPHOS @ 178-180 Tgt 200 SL 172
NAGARCONST @ 176 Tgt 202, 220 SL 170
LITL @ 59-60 Tgt 72 SL 57
SELL
EDUCOMP @ Mkt Tgt 480 SL 540
TECHM @ Mkt Tgt 610 SL 720
MPHASIS @ 570-575 Tgt 520 SL 590
HINDZINC @ 950-960 Tgt 820 SL 990
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