30-Nov-09

Markets started trading the week on a positive note and were in positive territory for the first half of the week and then news of Dubai property and realty firms struggling to pay back their debt and are looking for restructuring their loans once again gripped the markets. Markets toppled during the latter half of the week before recovering smartly during the fag end. Both Sensex and Nifty lost more than 2% week on week with all the sectoral indices closing the week with losses. The market breadth was negative but yet there were some stock specific performances. BPCL was the biggest Nifty gainer with nearly 12% wow gain while the other gainers included Ranbaxy, GAIL, Hero Honda, Cipla. IDFC, JP Associates, Siemens and Jindal Steel were among the biggest Nifty losers.

The cues going into the week are positive as global markets stage strong recovery after the fall. The Dubai tumors look like beginning to fade but we expect the cracks would continue to haunt the markets going forward. The coming week’s market behavior would determine the medium term direction of the markets. If the deep financial crisis could be averted by synchronized collective stimuli from major nations, we feel this crisis should well be prevented from escalating. If markets succeed in touching the lows of Friday, then we might have some more pain left in the system. One must remain cautious for this week and traders must maintain strict stoplosses.

BUY
RANBAXY @ 438-440 Tgt 460 SL 432
GVKPIL @ 50-50.25 Tgt 52.50, 58 SL 49
GSPL @ 94-94.25 Tgt 100 SL 92
ORCHIDCHEM @ 178-180 Tgt 200 SL 172

SELL
IDFC @ 162-163 Tgt 156, 151 SL 166