Markets witnessed short covering in many F&O counters but indices saw slender gains due to sharp cuts in Reliance and some technology stocks. Banking stocks were the major gainers during the week with a sharp rise of close to 12% on Bank Nifty. Reliance lost as much as 11% and was the one of the major Nifty losers along with Sterlite, Tata Steel, Satyam, Infosys and ABB. Suzlon was the top gainer with a 60% gain after the severe drubbing it got in the last couple of months. Ranbaxy, DLF, Reliance Infra, Reliance Power, PNB, BPCL, Siemens, ITC, SBI and ONGC gained anywhere between 10-30% during the week.

Asian markets saw huge rallies this morning and we may see a gap up opening at the beginning. Multiple resistances exist for Nifty between 3260-3400 and it is not likely that Nifty will breach this zone effortlessly. It is highly unlikely that equities witness across the board buying in the foreseeable future. We believe that the rises that we are seeing every now and then are due to short covering and not genuine long term buying. The valuations in many stocks are looking reasonable at this juncture but the fundamentals are changing as quickly. If the alacrity with which markets sold off during the past couple of months is any indication, we feel we are in for troubled times. Do not commit funds for buying equities and wait for at least another 2 quarters. The markets are here to stay and the stocks, which saw stupendous rallies during the past, are not going to be the same money making machines. Next time it will be a new set of stocks that will make money for investors. We recommend traders to create fresh shorts and hold.

Maruti Sell @ 610-614 Tgt 564, 540 SL 626
Rolta Sell @ 168-170 Tgt 146, 138 SL 174
Siemens Sell @ 307-310 Tgt 278, 250 SL 314
Bharti Airtel Sell @ 670-674 Tgt 618, 600 SL 685
Sun Pharma Sell @ 1230-1240 Tgt 1165, 1120 SL 1260
Zee Limited Sell @ 145-147 Tgt 136, 124 SL 150