26-Apr-2010

Markets moved up sharply after consolidating in narrow band for initial part of the week. Both Sensex and Nifty ended the week with less than a percentage gains but Banking took the lead and Bank Nifty moved up sharply by close to 5%. Sugar continued to reel under pressure while Technology, Metals, Telecom and Capital goods saw profit taking. SBI and HCL Tech were the biggest Nifty gainers with over 10% WoW gains. Axis Bank(7.62%), Tata Motors(7.61%), JP Associates(6.32%), HUL(5.33%), Unitech(5.18%) were among other major Nifty gainers. Sun Pharma(6.89%), Tata Steel(6.81%), Sterlite(5.07%), TCS(4.28%), Wipro(4.18%) and Cairn(3.44%) were the top nifty losers.

The sentiment remains positive as we go into the next week. Markets across all asset classes recovered and show strength. Nifty should find support near 5260 and inch towards the crucial resistance of 5400-5420. If this band is taken out, we may see levels of 5600 on Nifty very soon. There are no negative surprises this time in the corporate results. Markets are trading with less volatility and as we move closer to the expiry date. Options build up indicate that Nifty shall close the month near 5300. It will be a range bound market trading between 5260-5420.

[B]BUY[/B]
JINDALSTEL @ CMP Tgt 740, 760 SL 710
INDIANB @ 190-191 Tgt 202, 220 SL 187
AXISBANK @ 1220-1225 Tgt 1300 SL 1200
JPASSOCIAT @ 154-155 Tgt 168 SL 152
TATATEA @ 1030-1034 Tgt 1014 SL 1120

19-Apr-10

Markets corrected despite positive global cues and better than expected numbers. Both Sensed and Nifty lost close to 2% each week over week. Infosys came out with reasonably good results and the entire IT sector reacted taking the CNX IT index up by over 3% in a falling market. The fall came amid higher volumes and weak market breadth. Unitech was the biggest Nifty gainer with a 6.8% rise followed by Infosys (4.2%), TCS (2.97%), Tata Steel (2.88%) and HUL (2.55%). The losers were HDFC (5.92%), ICICI Bank (5.71%), RCom (5.56%), Sterlite (5.37%), M&M (4.93%) and Reliance Capital (4.81%).

Global markets reacted negatively to the fraud charges levied against Goldman Sachs by SEC taking the US and European markets tumbling down on Friday. The impact on the Asian Markets is no less severe. All the indices are trading with deep cuts and in we are in for a gap down opening. Nifty may find support near 5180-5200, which acts as a immediate term support. On the upside resistance is strong resistance is placed near the recent high of 5400. Nifty should find support below 5200 and bounce back. If markets do not recover today, then we are in for some pain during the week.

BUY
HDFCBANK @ 1940-1945 Tgt 2000 SL 1920
PANTALOONR @ 408-409 Tgt 422, 440 SL 404
LUPIN @ 1640-1645 Tgt 1720 SL 1620
JINDALSAW @ 214-216 Tgt 227, 240 SL 211

12-Apr-2010

Markets are at a fresh 2 year high as both the major indices moved up by 1.35% each as the Q4 corporate results started coming in. The mid-cap side of the market is enthusiastic with a very positive advance decline ratio. All sectors inched up with the exception of Technology. Infrastructure, Realty, Banking, Cement, Financials, Shipping and Telecom were the sectors which saw positive build up. DLF was the biggest Nifty gainer with a 6.87% rise followed by BHEL (6.12%), Hero Honda (5.74%), RCOM (4.74%) and Tata Motors (4.11%). SAIL was the biggest Nifty loser with a close to 7% cut after the announcement of its FPO. The other losers included HUL (3.93%), HCL Tech (3.74%), Hindalco (2.69%), ONGC (1.9%) and Ranbaxy (1.83%).

Infosys comes out with its yearly numbers on Tuesday and in all probability we may witness some positive comments from the management. The IT stocks have already run up significantly to afford another big rally. A correction after positive numbers cannot be ruled out. The global markets are looking good going into the week and Nifty may see some positive momentum. Strong immediate term support is placed at 5290 (low placed on 8th) followed by multiple supports near 5180-5230. Last week’s high of 5400 acts as immediate resistance. We recommend traders to trade in specific stocks with strict stoplosses as the event risks loom large.

05-Apr-10

It is 8 weeks in a row that both Sensex and Nifty managed to close positive. The market breadth was positive and everything seems to be working in favor. The global clues were positive with all Asian, European and American markets firing on all cylinders. HDFC was the biggest gainer in Nifty followed by DLF, Unitech, Cairn and Sterlite while Hero Honda, Infosys, HCL Tech, Idea and TCS were among the top losers.

The optimism is back in the markets again and greed is taking over slowly. The most heartening part of this rally is that non-performing sectors were kept out for too long. It gives an indication of a sustained rally upwards with stocks and sectors outperforming in turns. We have seen IT stocks correct during the week but Banking and Metals took over and kept the action alive. In all probability we are in for 5600 and higher levels on Nifty with any corrections holding support of 5100-5200. It is time to have a look at the performers from the lagging sectors and bet. Buy specific stocks on every correction and ride the wave.

BUY
CANBK @ CMP Tgt 440, 460 SL 406
CENTURYTEX @ CMP Tgt 542, 590 SL 510
AREVAT&D @ CMP Tgt 338 SL 300
WELGUJ @276-278 Tgt 296 SL 274
BHUSANSTL @ 1740-1745 Tgt 1800 SL 1720
GESHIP @ CMP Tgt 321 SL 286
VOLTAS @ 176-177 Tgt 182, 190 SL 174