Strong external markets and better than expected economic data helped markets stage a strong recovery after previous week’s fall. Both Sensex and Nifty managed to inch up close to 4% during the week. The market breadth was extremely heartening as 10 stocks rose for each falling stock. Almost all sectors participated except pharma. Banking and Metals were among the biggest gainers. SAIL, NTPC, Hindalco, Tata Steel, Suzlon, Reliance Infra, ICICI Bank, Tata Motors and Reliance were among the top gainers in Nifty.
Nifty is trading at a crucial juncture at this point in time. 5150-5200 is a crucial resistance and Nifty is placed at a fresh one and a half year high. If it manages to breach 5200, we may see the rally extending to 5600. We may see a buoyant market in terms of stock specific action and we recommend short term traders to trade long for immediate gains. Supports are placed at 5070 and 5000. The chances of this impending rise could be negated only if it manages a close below 5000. The exuberance must reach to irrational levels for the markets to subside from here. Buy for immediate term with adequate stoplosses.
BUY
CROMPGREAV @ 418-420 Tgt 444 SL 410
SESAGOA @ 386-388 Tgt 425 SL 376
PANTALOONR @ 364-366 Tgt 400 SL 358
BHUSANSTL @ 1410-1420 Tgt 1600 SL 1370
OPTOCIRCUI @ 224-226 Tgt 260 SL 220
HINDZINC @ 1190-1200 Tgt 1260, 1400 SL 1170
MPHASIS @ 720-725 Tgt 760 SL 710
Monday, December 28, 2009
Sunday, December 20, 2009
21-Dec-09
Markets were trading with negative bias throughout the week and corrected sharply after consolidating in narrow range last week. The market breadth was negative and the fall was more or less across the board. Pharma, Technology and Cement were the sectors which stood out for their outperformance. Ranbaxy, ACC, HCL Tech, Wipro, Cipla, Sun Pharma and Infosys were among the top gainers while Unitech, Axis Bank, IDFC, HDFC Bank, RCom and DLF for the top losers in Nifty.
The global cues are mixed we may witness some range bound activity back home. Nifty closed below 5000 once gain after repeated attempts to breach 5200 failed during the past one month. Immediate term resistance on Nifty remains at 5070 and a strong short term resistance remains above 5150. Supports exist at 4940 and further at 4800. Long positions must be exited if it manages a close below 4940. Markets may trade stock specific and hence short term trading is recommended with adequate stoplosses. Metals look particularly strong and we expect weakness in Banking stocks.
BUY
HINDALCO @ 140-142 Tgt 152, 160 SL 136
SESAGOA @ 354-356 Tgt 400 SL 344
PANTALOONR 358-360 Tgt 400 SL 350
OPTOCIRCUI @ 218-220 Tgt 232, 260 SL 208
SAIL @ 208-210 Tgt 234 SL 204
SELL
TATACOMM @ 340-342 Tgt 320 SL 348
HDFC @ 2600-2610 Tgt 2480 SL 2640
ANDHRABANK @ 104-105 Tgt 99, 92 SL 107
EDUCOMP @ 720-724 Tgt 680, 620 SL 740
BANKINDIA @ 364-365 Tgt 348 SL 372
The global cues are mixed we may witness some range bound activity back home. Nifty closed below 5000 once gain after repeated attempts to breach 5200 failed during the past one month. Immediate term resistance on Nifty remains at 5070 and a strong short term resistance remains above 5150. Supports exist at 4940 and further at 4800. Long positions must be exited if it manages a close below 4940. Markets may trade stock specific and hence short term trading is recommended with adequate stoplosses. Metals look particularly strong and we expect weakness in Banking stocks.
BUY
HINDALCO @ 140-142 Tgt 152, 160 SL 136
SESAGOA @ 354-356 Tgt 400 SL 344
PANTALOONR 358-360 Tgt 400 SL 350
OPTOCIRCUI @ 218-220 Tgt 232, 260 SL 208
SAIL @ 208-210 Tgt 234 SL 204
SELL
TATACOMM @ 340-342 Tgt 320 SL 348
HDFC @ 2600-2610 Tgt 2480 SL 2640
ANDHRABANK @ 104-105 Tgt 99, 92 SL 107
EDUCOMP @ 720-724 Tgt 680, 620 SL 740
BANKINDIA @ 364-365 Tgt 348 SL 372
Sunday, December 6, 2009
07-Dec-09
Markets staged a strong bounce back after the last week’s weakness. The news from Dubai sunk in and Nifty almost touched the recent high and settled somewhere close to the one and a half year highs. All sectors participated in the rally. Pharma and Metal stocks were amongst the biggest gainers. Realty stocks rebounded sharply after collapsing after the news of Dubai financial crisis. Ranbaxy and Cipla both moved up more than 10% during the week while Tata Motors, Hindalco, Idea, SAIL and Unitech were the other Nifty stocks which moved up more than 10% week on week. HUL, Hero Honda and BHEL were the only losers in Nifty.
Markets are looking good for medium term with stock specific performances. Metals, Pharma, Auto and Banking sectors look good going ahead. Nifty faces strong resistance at 5200, which looks difficult to breach in the immediate term. Breach of 5200 may see it climbing upto 5500 in the short term. On the downside strong support exists at 4800. We may see consolidation in the range of 4800-5200 before markets take any direction. It is advisable to trade stock specific with adequate protection.
Markets are looking good for medium term with stock specific performances. Metals, Pharma, Auto and Banking sectors look good going ahead. Nifty faces strong resistance at 5200, which looks difficult to breach in the immediate term. Breach of 5200 may see it climbing upto 5500 in the short term. On the downside strong support exists at 4800. We may see consolidation in the range of 4800-5200 before markets take any direction. It is advisable to trade stock specific with adequate protection.
Sunday, November 29, 2009
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
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
Sunday, November 22, 2009
23-Nov-09
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
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
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
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