Dated 22nd September

Last week saw huge volatility due to turmoil in US financial market but the response in the end was more than heartening. We closed the week in positive after nearly touching the lows of July. Maruti, HDFC, Reliance, NTPC, SAIL and ONGC were the major Nifty gainers all gaining more than 5% week on week. Ranbaxy was the top loser followed by Satyam, Tata Steel, Dr Reddy, DLF, Zee and Hindalco.

All global markets surged on the weekend and the Asian markets opened with strong gains. In all probability we might see a gap up opening and Nifty may try to test the levels of 4400 this week. Irrespective of the global indices and the direction of our markets we might see stock specific movements this week due to the F&O expiry. There is a short build up in many counters and we might see sharp upside rallies in some stocks because of short covering. Trade with caution and utilize sharp rallies to exit long positions. 4560 and 4640 are very strong medium term resistances and hence any move on Nifty towards these levels should be an opportunity to exit and even initiate shorts.
BUY
Tata Communication @ 452-456 Tgt 474, 500 SL 444
Akruti City @ 895-900 Tgt 960, 1000 SL 875
Power Grid @ 94-95 Tgt 99, 101, 104 SL 92.50
Bharti Airtel @ 795-800 Tgt 836, 870 SL 785

SELL
Sobha Developers @ 221-223 Tgt 211, 202 SL 226
GVK Power @ 32.80-33 Tgt 31, 29.80 SL 33.50
ONGC @ 1110-1120 Tgt 1040, 1000 SL 1140
Punj Lloyd @ 322-324 Tgt 304, 286 SL 333
JSW Steel @ 620-624 Tgt 581 SL 634