It’s private party only for MID & SMALL CAP. NO FRONTLINE allowed

It’s private party only for MID & SMALL CAP. NO FRONTLINE allowed

I hope every one had a Blasting time on 31^st Dec 2009. Indian Markets have welcomed the New Year in a very special way. Retail clients might have definitely enjoyed the markets in this week. Midcap stocks and Smallcap stocks rocked the party this week. Leaving the Major Indices move in a very slim range of 0.5% to 0.75%. Midcap Index gained nearly 2.5% while Smallcap Index was the winner gaining almost 4% in a week. In the Year 2009, mostly frontline stocks enjoyed the party, but the scenario will not remain the same in the current year. Midcap stocks will outperform the Frontline stocks. New Midcap and Smallcap funds will be out in the markets.

This week the only looser in the Index was IT Index loosing 5%. Reality stocks gained the most 5.8%. HDIL & DLF rallied 8.5 & 7.5% respectively. Metals also did pretty good by gaining almost 4.5% while Oil & Gas Index gained 2.2%. There were equal numbers of the gainers and the losers in the Index list. Grasim gained the most 11.3%. JP Ass was up 10.5%, Cairn was up 8%, Siemens 7.8% & Tata Power & MNM 7%. In the losers list Maruti topped the charts by losing almost 8% in the week. In the IT stocks TCS lost 7%, Infosys & HCL tech lost about 5.2%. In the small and the Midcap Ucal fuel gained 54%, Bombay Dyeing 25%. Satyam was up 15%, Uttam Steel 13%.

Global Markets too ended flat in the week. No major activity by the FIIs and the local Inst left the markets will a marginal gain of just 0.5% on week on week basis. Despite the extension in the trading time, volumes in the markets remained subdued. Reliance block deal on Monday showed some volumes in the Exchanges. F&O volumes have been decreasing day by day.

Nifty slipped below 5250 levels on profit booking. Nifty made a high of 5310.85, but failed to close above the same. It closed at 5281.80 on the same day. Since then Nifty has been slipping. On week on week basis Nifty closed at 5247. In the past also last year, Nifty faced resistance at 5300 levels. This year too Nifty facing resistance at the same level. In the last week, it was clearly mentioned that the Nifty will find resistance at 5300 levels. Nifty made high of 5310. Nifty faced stiff resistance at 5200 levels also, but we saw decisive breakout the same. Now 5200 levels will prove to give good support at 5200 levels. Nifty can be bought we the SL of 5200 levels, we might see Nifty touching the same, do not panic, hold ur positions till 5181 levels.

BUY Rel Cap above 915 SL of 896.

Short Bharti Airtel below 323 SL 326

BUY DLF above 396. SL

BUY Gail above 430

Short HDFC below 2600 tgt 2550