08-Mar-2010

Markets recovered sharply and traded the entire week with positive bias. The market breadth was extremely positive as both the major indices inched up more than 3% over the week. The midcaps were more active and many midcap stocks rallied as both Nifty junior and CNX midcap improved by close to 6% each. IT stocks showed some fatigue and failed to participate as rupee started appreciating against dollar during the week. Suzlon was the major Nifty gainer with over 12% WoW gain, followed by Tata Motors, JP Associates, Jindal Steel, Tata Power, Unitech, Tata Steel, SAIL, Bharti, DLF and M&M all gained over 5%. BPCL was the major Nifty loser with just over 4% fall. ONGC, HCL Tech and Axis Bank were the only other losers.

The global markets look good going into the next week. We may see Nifty opening with a positive gap but should find resistance at higher levels. 5200-5250 seems like a formidable immediate term resistance and Nifty may take some time to take out this resistance. We see a band of 4940-5250 during the coming week on Nifty. Markets may trade stock specific with laggards catching up.

BUY
SUZLON @ 79-80 Tgt 90 SL 76
KSOILS @ 72.5-73.00 Tgt 76, 80 SL 71.50
TRIVENI @ 124-125 Tgt 132, 140 SL 122
ADANIENT @ CMP Tgt 524, 540 SL 490
BHUSANSTL @ 1740-1750 Tgt 1810 SL 1720
JINDALSAW @ 210-211 Tgt 224 SL 206

SELL
TATAMOTORS @ 800-804 Tg 760 SL 815
ROLTA @ 183-185 Tgt 172 SL 187
HCLTECH @ 364-366 Tgt 352, 340 SL 372
TATAPOWER @ 1340-1345 Tgt 1280 SL 1360