Markets were trading undecided for the initial part of the week but move up on the last session to close the week with a gain of over 1% on both the Sensex and Nifty. While technology stocks corrected after witnessing steady rallies, Shipping and Cement stocks showed signs of reversal after staying low for many a month. Metals, Auto and Banking saw good gains while other sectors traded mixed for the week. Suzlon, Tata Steel, SAIL, Reliance Capital and Hero Honda were the major Nifty gainers with over 5% WoW rise while Reliance Infra, Bharti and HCL Tech were the major losers.
Markets are likely to trade stable with positive bias going forward. Any correction should be seen as more of a buying opportunity than a sign of reversal. Nifty may find support at 5000 and we may see 5200 being tested once again this week. We expect steel and banking stocks to witness rally in the coming weeks. Technology may remain sluggish while steel and banking may witness further upside. Trade stock specific and avoid short positions for the time being.
BUY
BEL @ CMP Tgt 1680 SL 1560
AUROPHARMA @ 776-780 Tgt 840 SL 760
TATASTEEL @ CMP Tgt 585 SL 540
DENABANK @ 79.5-80 Tgt 88 SL 76
Sunday, November 22, 2009
Thursday, November 19, 2009
16-Nov-09
Markets continue to move up in line with positive global markets and strong fundamental data emanating domestically. The IIP numbers show strong demand growth. The market breadth was extremely positive for second week in a row. Almost all sectors participated in the rally. HCL Tech, SAIL, IDFC, Reliance, Tata Motors, TCS, ICICI Bank, ZEE, Axis Bank, Siemens, Infosys, Jindal Steel, Wipro, Reliance Infra, M&M, Grasim, Reliance Capital and HDFC Bank were among the top gainers, all gaining more than 5% over the week.
Markets continue to strengthen as fears of the recession alleviate with every passing day. The global economy seems stabilizing. While the data across the globe suggest that the worst is behind us, it is amply clear that the next growth engines for the global economy are China and India. The possibilities of a fresh peak remain open from here. On the down side, we may see support coming in from funds, market participants and retail investors at every decline. Corrections should be utilized to buy into the strong momentum stocks. Nifty may find support below 4800 and may try to make an attempt to reach 5200 once again. Avoid carrying short positions.
BUY
BEL @ 1580-1590 Tgt 1680 SL 1560
ZEEL @ 253-255 Tgt 282 SL 248
TATATEA @ 895-900 Tgt 945 SL 880
HINDZINC @ 900-905 Tgt 960 SL 890
NATIONALUM @ 376-380 Tgt 404 SL 365
AUROPHARMA @ 755-760 Tgt 840 SL 730
SELL
RELCAPITAL @ 845-850 Tgt 800 SL 870
Markets continue to strengthen as fears of the recession alleviate with every passing day. The global economy seems stabilizing. While the data across the globe suggest that the worst is behind us, it is amply clear that the next growth engines for the global economy are China and India. The possibilities of a fresh peak remain open from here. On the down side, we may see support coming in from funds, market participants and retail investors at every decline. Corrections should be utilized to buy into the strong momentum stocks. Nifty may find support below 4800 and may try to make an attempt to reach 5200 once again. Avoid carrying short positions.
BUY
BEL @ 1580-1590 Tgt 1680 SL 1560
ZEEL @ 253-255 Tgt 282 SL 248
TATATEA @ 895-900 Tgt 945 SL 880
HINDZINC @ 900-905 Tgt 960 SL 890
NATIONALUM @ 376-380 Tgt 404 SL 365
AUROPHARMA @ 755-760 Tgt 840 SL 730
SELL
RELCAPITAL @ 845-850 Tgt 800 SL 870
Sunday, November 8, 2009
09-Nov-2009
Markets recovered from the lows taking cues from the global markets and on back of extremely encouraging auto sales and cement dispatch numbers. After falling sharply at the beginning of the week, markets recovered sharply to end the week with close to 1.8% gain on Nifty. The market breadth was positive with 4 stocks advancing for each losing stock. Bharti, ICICI Bank, Ranbaxy, GAIL, Unitech, Tata Steel, Zee and M&M were the prominent Nifty gainers while Ambuja Cement, Tata Power, ACC, HUL and Idea figured among the major losers in Nifty.
The results season is over and the overall direction of the markets would depend on the sentiment from global financial markets. Markets may trade volatile during the coming week finding resistance between 4850-4900 and support between 4500-4550. We expect the action to remain stock specific and hence it is recommended to resort to stock specific trades on either side.
BUY
WIPRO @ 590-592 Tgt 620 SL 580
CROMPGREAV @ 376-378 Tgt 400 SL 370
MCDOWELL-N @ 1055-1060 Tgt 1120 SL 1030
TATAMOTORS @ 558-560 Tgt 594 SL 550
SELL
BHARTIARTL @ 323-325 Tgt 300 SL 330
GMRINFRA @ 66-67 Tgt 63 SL 68
M&M @ 992-995 Tgt 940 SL 1020
The results season is over and the overall direction of the markets would depend on the sentiment from global financial markets. Markets may trade volatile during the coming week finding resistance between 4850-4900 and support between 4500-4550. We expect the action to remain stock specific and hence it is recommended to resort to stock specific trades on either side.
BUY
WIPRO @ 590-592 Tgt 620 SL 580
CROMPGREAV @ 376-378 Tgt 400 SL 370
MCDOWELL-N @ 1055-1060 Tgt 1120 SL 1030
TATAMOTORS @ 558-560 Tgt 594 SL 550
SELL
BHARTIARTL @ 323-325 Tgt 300 SL 330
GMRINFRA @ 66-67 Tgt 63 SL 68
M&M @ 992-995 Tgt 940 SL 1020
Monday, November 2, 2009
03-Nov-09
Both Sensex and Nifty lost more than 5% over the week amid extremely negative market breadth. Almost all sectors witnessed profit taking without any exception. Only some of the IT and Pharma stocks showed some resilience. Dr Reddy, Ranbaxy, Tata Motors, Wipro, Sun Pharma, Zee and Grasim were the only stocks which managed to escape the week without losses. The prominent losers were RCOM, Suzlon, DLF, Unitech, Reliance Capital, Reliance Infra, Hindalco, Reliance Power, ICICI Bank, JP Associates, Idea, Bharti, Siemens, Tata Steel, Jindal Steel and SAIL all of which lost more than 10% over the week.
As predicted last week, markets witnessed correction throughout the week amid volatile global markets. The correction may extend further as markets face resistance at every rise. 4500/4400 on Nifty is still a possibility but we may see a bounce back before that happening. 4850-4900 is a strong resistance for immediate term and we may see Nifty honoring this resistance. However, we may witness stock specific action going forward. Sell weaker sectors/stocks on rises and buy stronger ones on dips. Falls like these give opportunities to buy strong medium term stocks. Following are some of these stocks.
BUY
INDIANB @ 148-150 Tgt 220 SL 135
SUNPHARMA @ 1300-1320 Tgt 1600 SL 1220
POLARIS @ 150-152 Tgt 200 SL 140
OFSS @ 2050-2070 Tgt 2600 SL 1960
As predicted last week, markets witnessed correction throughout the week amid volatile global markets. The correction may extend further as markets face resistance at every rise. 4500/4400 on Nifty is still a possibility but we may see a bounce back before that happening. 4850-4900 is a strong resistance for immediate term and we may see Nifty honoring this resistance. However, we may witness stock specific action going forward. Sell weaker sectors/stocks on rises and buy stronger ones on dips. Falls like these give opportunities to buy strong medium term stocks. Following are some of these stocks.
BUY
INDIANB @ 148-150 Tgt 220 SL 135
SUNPHARMA @ 1300-1320 Tgt 1600 SL 1220
POLARIS @ 150-152 Tgt 200 SL 140
OFSS @ 2050-2070 Tgt 2600 SL 1960
Sunday, October 25, 2009
26-Oct-09
Markets slipped from nearly one and a half year highs amid extremely negative market breadth. Both Sensex and Nifty lost close to 3% as mid caps and all sectoral indices, with the exception of Technology and metals, lost ground. Heavy weights Reliance, Grasim and L&T broke down sharply and figured among the biggest losers in Nifty. There were losers in almost all sectors except some outperformers from Metals and Technology. HCL Tech, Nalco, Hindalco, TCS, ITC, Infosys and Wipro were among the major gainers while Grasim, Reliance, Reliance Capital, L&T, Tata Steel, Suzlon, Unitech and Reliance Infra were the major losers.
During the last few months, markets didn’t look as fluid as they are looking at this point of time. There are certainly reasons for this.
a. The market breadth during the last week was extremely negative.
b. There were some significant breakdowns in some of the heavy weights which make the markets not as lucrative as they looked for last few months. Heavy weights like Reliance, L&T, Grasim and Bharti have seen strong breakouts on the downside which doesn’t augur well for the markets. Charts signal that medium term peaks are made in these stocks and further downside looks imminent though we may see intermittent bounce backs. Any rise in these stocks is a selling opportunity and hence we recommend traders to avoid.
c. Nearly one fifth of the stocks traded in the F&O segment are trading near their respective lows for the month.
If Nifty were to breach 4900 decisively, then we may see sharp downside towards 4400, a fall which is long overdue. Exit long positions if Nifty closes below 4900 and look for opportunities to create shorts.
SELL
JPHYDRO @ 75-76 Tgt 70 SL 76.60
SESAGOA @ 330-333 Tgt 300, 284 SL 340
RELCAPITAL @ 890-900 Tgt 800 SL 920
FINANTECH @ 1300-1310 Tgt 1200 SL 1330
SUZLON @ 86-86.50 Tgt 80, 72 SL 88
HCLTECH @ 330-333 Tgt 300 SL 340
RELMEDIA @ 335-337 Tgt 310 SL 345
During the last few months, markets didn’t look as fluid as they are looking at this point of time. There are certainly reasons for this.
a. The market breadth during the last week was extremely negative.
b. There were some significant breakdowns in some of the heavy weights which make the markets not as lucrative as they looked for last few months. Heavy weights like Reliance, L&T, Grasim and Bharti have seen strong breakouts on the downside which doesn’t augur well for the markets. Charts signal that medium term peaks are made in these stocks and further downside looks imminent though we may see intermittent bounce backs. Any rise in these stocks is a selling opportunity and hence we recommend traders to avoid.
c. Nearly one fifth of the stocks traded in the F&O segment are trading near their respective lows for the month.
If Nifty were to breach 4900 decisively, then we may see sharp downside towards 4400, a fall which is long overdue. Exit long positions if Nifty closes below 4900 and look for opportunities to create shorts.
SELL
JPHYDRO @ 75-76 Tgt 70 SL 76.60
SESAGOA @ 330-333 Tgt 300, 284 SL 340
RELCAPITAL @ 890-900 Tgt 800 SL 920
FINANTECH @ 1300-1310 Tgt 1200 SL 1330
SUZLON @ 86-86.50 Tgt 80, 72 SL 88
HCLTECH @ 330-333 Tgt 300 SL 340
RELMEDIA @ 335-337 Tgt 310 SL 345
Monday, October 19, 2009
20-Oct-2009
Markets continued the uptrend and both Sensex and Nifty moved up close to 4% during the week. It was a perfect rally before Diwali with fireworks from all sectors. The second quarter results were heartening and so far there is no big disappointment. The market breadth was extremely positive and provides inkling about the future. SBI, Jindal Steel, Cairn, DLF, Tata Power, SAIL and TCS were among the top gainers while Ambuja Cement, BPCL, RCOM and Bharti remained top losers.
The global clues are strong and we may expect a strong opening here back home. We may see Nifty finding resistance at 5200 and retrace for the day. If we look at the medium term, as long as it remains above 4900, the possibilities of a fresh peak beyond 6000 are open. It requires a close below 4860 to put an end to this stupendous rally. Now the baton passes on to Reliance and ONGC to lead the rally from here on. Accumulate these stocks for surprising gains.
The following are the positional calls for the coming couple of months.
BUY
ESSAROIL @ CMP Tgt 200 SL 160
ONGC @ CMP Tgt 1560 SL 1140
RELIANCE @ CMP Tgt 2700 SL 2120
IVRCLINFRA @ 395-400 Tgt 500 SL 380
The global clues are strong and we may expect a strong opening here back home. We may see Nifty finding resistance at 5200 and retrace for the day. If we look at the medium term, as long as it remains above 4900, the possibilities of a fresh peak beyond 6000 are open. It requires a close below 4860 to put an end to this stupendous rally. Now the baton passes on to Reliance and ONGC to lead the rally from here on. Accumulate these stocks for surprising gains.
The following are the positional calls for the coming couple of months.
BUY
ESSAROIL @ CMP Tgt 200 SL 160
ONGC @ CMP Tgt 1560 SL 1140
RELIANCE @ CMP Tgt 2700 SL 2120
IVRCLINFRA @ 395-400 Tgt 500 SL 380
Sunday, October 4, 2009
05-Oct-09
Markets continued the uptrend both Sensex and Nifty moved up more than two and a half percentage points during the week. It was a shortened week lasting just 3 trading days. Technology, private sector banks, metals and telecom were among the sectors which gained the most. Axis Bank, ICICI Bank, TCS, Wipro, Rcom and Bharti were the top nifty gainers. Grasim, BPCL, Dr Reddy and Unitech were among the biggest losers.
The global cues are anything but strong going into the next week. We may see markets open with a downward gap as suggested by SGX nifty. Supports for Nifty exist at 5000 and further at 4920. We may see markets finding support below 5000 and continue the trend. The trend is intact as long as Nifty trades above 4860. We expect Reliance to lead the next leg of rally and support may come from Cement, Infrastructure, Realty and other mid-caps. Caution is advised if Nifty closes below 5000.
BUY
ABAN @ 1620-1625 Tgt 1900 SL 1600
DABUR @ 140-141 Tgt 148 SL 137
GAIL @ 358-360 Tgt 380 SL 354
ESSAROIL @ 155-156 Tgt 166, 172 SL 150
TATACHEM @ 274-276 Tgt 300 SL 268
SELL
IDEA @ 74-74.50 Tgt 71, 68.50 SL 75.50
HDFC @ 2700-2710 Tgt 2590 SL 2740
FINANTECH @ 1400-1410 Tgt 1320 SL 1430
RNRL @ 88-88.50 Tgt 84, 78 SL 89.50
TV-18 @ 100-102 Tgt 88, 82 SL 105
The global cues are anything but strong going into the next week. We may see markets open with a downward gap as suggested by SGX nifty. Supports for Nifty exist at 5000 and further at 4920. We may see markets finding support below 5000 and continue the trend. The trend is intact as long as Nifty trades above 4860. We expect Reliance to lead the next leg of rally and support may come from Cement, Infrastructure, Realty and other mid-caps. Caution is advised if Nifty closes below 5000.
BUY
ABAN @ 1620-1625 Tgt 1900 SL 1600
DABUR @ 140-141 Tgt 148 SL 137
GAIL @ 358-360 Tgt 380 SL 354
ESSAROIL @ 155-156 Tgt 166, 172 SL 150
TATACHEM @ 274-276 Tgt 300 SL 268
SELL
IDEA @ 74-74.50 Tgt 71, 68.50 SL 75.50
HDFC @ 2700-2710 Tgt 2590 SL 2740
FINANTECH @ 1400-1410 Tgt 1320 SL 1430
RNRL @ 88-88.50 Tgt 84, 78 SL 89.50
TV-18 @ 100-102 Tgt 88, 82 SL 105
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