18-Jan-2010

The week belonged to technology and it was technology which saved the markets this week. The IT index moved by as much as 9% lead by TCS which gained more than 13% followed by Wipro (+9.8%) and Infosys (+8%). The results from the IT biggies and the guidance re-instated the faith in the sector which triggered major buying interest in the technology stocks. Some of the midcap stocks saw action and it was a week of stock specific performances. The major benchmarks Sensex and Nifty just managed to close in positive as the gains provided by technology were offset by Banking, Metals and FMCG. SBI, Jindal Steel, Suzlon, ICICI Bank, Hindalco, Sterlite, HUL and Reliance Infra were among the biggest losers which capped the upside in Nifty. Cement stocks ACC, Ambuja Cement and Grasim, ABB, Axis Bank, Rcom and Siemens were among the biggest gainers apart from the Technology pack.

The IIP numbers indicate strong growth YoY which would limit the downside going ahead unless something very bad happens with the overall global economy. Markets may trade volatile with positive bias as results continue to drive the markets. Market players keep their fingers crossed for the presentation of Railway budget once the results season gets over. Markets may open with downside gap on Monday morning due to weak global cues but that should be treated as a buying opportunity in specific stocks. Nifty will find support below 5200 and continue to march ahead. One should have an overall day close stoploss below 4940 and continue to trade long on dips. Be stock specific and maintain adequate stoplosses.

BUY
MTNL @ 86-87 Tgt 92 SL 84
KSOILS @ 74-74.50 Tgt 81, 90 SL 72
ONGC @ 1190-1200 Tgt 1360 SL 1150
BHARATFORG @ 288-290 Tgt 310 SL 280
HDIL @ 370-372 Tgt 400 SL 364
GESHIP @ 308-310 Tgt 360 SL 295
PANTALOONR @ 410-412 Tgt 440 SL 400

SELL
ABB @ 860-863 Tgt 825 SL 875
RELCAPITAL @ 905-910 Tgt 860 SL 920
PRAJIND @ 109-110 Tgt 100 SL 114