09-Aug-2010

Markets rallied once again after taking break during the week before. Both Sensex and Nifty went up close to 1.5% week on week. Shipping, Metals, FMCG, Energy and Auto stocks were among the gainers.

The global economic data was not so heartening and hence we may see some correction in asset markets across the globe. Markets back home are likely to remain firm despite weak global cues and hence every correction should be treated as a buying opportunity. The risk reward over medium term is highly in favour of buyers. We may witness huge rallies in specific stocks over the coming 1-2 years and hence one should pick the right stories and play long. 5340 Should be the stoploss in Nifty for a target objective of 5800 over the coming 4-6 months.

BUY
TATACHEM @ 352-354 TGT 392 SL 340
PANTALOONR @ 464-466 TGT 500 SL 454
MUNDRAPORT @ 770-772 TGT 820 SL 755
APIL @ 722-724 TGT 760 SL 715

02-Aug-10

The cues from global markets are positive this morning and our markets back home are looking promising going ahead. Nifty kissed the crucial short term support level of 5350 and bounced back. 5350-5340 remains a crucial short term support in the near term while resistances are placed near 5450-5460. Hence markets may find resistance at higher levels and hover around 5400. 5340 is the support which needs to be watched. If markets are able to breach this level we may witness a correction towards 5260 immediately. Short positions may be contemplated in Nifty at the breach of 5340 with a strict stoploss of 5360. Buyers may hold long positions on Nifty with a stoploss of 5340 for a target objective of 5800. Wait for the markets to consolidate before committing. Today’s closing will be crucial for the markets and hence wait for a day or two.

Buying may be contemplated in Tata Chemicals, Pantaloon Retail, Voltas, CESC, United Phosphorous and ITC.