Friday, Apr 1 - Morning brief for the stock market:

Stocks To Watch: GSK Pharma; Hero Honda; Kalpataru Power

Friday, Apr 1 - Morning brief for the stock market:.

BIG PICTURE

* India Apr-Feb fiscal gap 2.75 trln rupees, down 27% on year.

TOP EVENTS TODAY

* Trade data for Feb to be detailed by commerce ministry.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Mar 31: FII 33.25, DII (17.17)

* Institutional net buy/(sale) in bln rupees, Mar 30: FIIs 10.43, MF (2.49)

* FII NSE futures net buy/(sale) in bln rupee, Mar 31: index 13.38, shr (4.63)

* Sensex 19445.22, up 155.04 points; Nifty 5833.75, up 46.10 points.

* Crude: $106.72/bbl; Rupee: 44.59/$1; Gold: $1,438.9/ounce; 10-yr yld: 7.9820%.

OUTLOOK

* Local shares are seen opening flat amid subdued global cues. Trade is likely to be thin as market participants may prefer to keep positions light ahead of the weekend.

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GLOBAL STOCK MARKETS

* US: US share indices ended down Thursday after a Federal Reserve official said interest rates might need to rise to slow inflation.

* ASIA: Asian share indices were mixed after an official from the US Federal Reserve said interest rates might need to be raised, while on the other hand, data showed China's manufacturing growth accelerated in March.

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IPO WATCH

* Calyx Chemicals and Pharmaceuticals has sought SEBI nod for 6.83-mln-share issue

* L&T Finance Holdings has sought SEBI nod for a 17.5-bln-rupee issue.

* MCX files draft prospectus for its 6.43-mln-share issue.

* Prime Retail has sought SEBI nod for its 75-mln-share issue.

* Sheetal Refineries sought SEBI approval for a 6-bln-rupee issue.

SECTOR NEWS

* AUTOMOBILE: Japan's Honda Motor Co will temporarily halt production at its Indian facility from May due to parts' supply constraints from Japan. (PTI)

* AVIATION: Government has agreed to offer sovereign guarantee for refinance of a 220-bln-rupee loan raised by Air India to buy new aircraft.

Civil aviation ministry asks domestic airlines to submit a plan of action to implement new ground handling policy. (var)

Air India expects to turn profitable by 2013-14 (Apr-Mar) via financial restructuring. (Mint)

Low-cost carrier IndiGo will buy 300 new engines for its 150 new aircraft from Airbus. (var)

* BANKING: Reserve Bank of India has allowed banks to fix service charges on speed clearing of cheques with value over 100,000 rupees. (PTI)

* CHEMICALS: Chennai-based Sanmar Group exits joint venture Fisher Sanmar by selling around 51% stake in the company to US partner Emerson. (ET)

* CORPORATE: Indian companies raised $1.44 bln through external commercial borrowings and foreign currency convertible bonds in February, sharply down from $2.71 bln raised in January.

* ECONOMY: India Feb CPI industrial workers inflation 8.82% vs 9.30% Jan.

Govt says India Dec end external debt at $297 bln, up 14% since Mar 2010.

* ENERGY: State-owned oil marketing companies hike jet fuel prices by average 915.12 rupees/kL.

French energy company Schneider Electric is in advanced talks to buy majority stake in Delhi-based Luminous Power Technologies. (ET)

* EXCHANGES: NCDEX says integrating spot, futures markets key challenge.

National Stock Exchange has applied for extension of deadline to divest its 6.1% stake in National Commodity and Derivatives Exchange.

* EXPORTS: Government lifts restrictions on export of cotton yarn to tap international markets. (var)

* FINANCE: Task force on direct subsidies for liquefied petroleum gas, fertiliser, and kerosene--headed by Unique Identification Authority of India chairman Nandan Nilekani--has discussed proposed model of cash subsidy with Finance Minister Pranab Mukherjee. (ET)

* GOVERNMENT: Panel appointed to investigate conduct of Commonwealth Games 2010 has uncovered inflated contracts and wasteful expenditure of around 16 bln rupees. (Mint)

* RAILWAYS: To stop transporters from using wagons for short periods, the railways ministry will levy demurrage on chartering companies who do not complete loading within 9 hours and 15 minutes. (Mint)

* REGULATORY: SEBI says foreign institutional investors can invest in bonds of unlisted infrastructure companies.

* SUGAR: Government may re-impose 60% import duty on sugar from today as India's sugar production is likely to exceed demand. (PTI)

STOCKS

* BAJAJ AUTO: Expects to clock sales volume of 20% in both the two- and three-wheeler segments in 2011-12 (Apr-Mar).

Plans to launch small car, which is likely to take on Tata Motor's Nano, in 2012. (var)

* BAJAJ HINDUSTHAN: Is likely to start commissioning the first of its five standalone coal-based capacities of 90 MW each from Jul-Aug. (BL)

* BALRAMPUR CHINI MILLS: Bought back 447,246 shares on Mar 31.

* BAYER CROPSCIENCE: Has inked a pact to sell around 100 acres land in Thane, received 2.6 bln rupees earnest amount.

* BIRLA MACHINING: Board approves co's merger with BIRLA PRECISION TECHNOLOGIES.

* BROADCAST INITIATIVES: Has filed draft papers for a rights issue of 20.25 mln shares in the ratio of 8 for every 10 held in the company.

* CLUTCH AUTO: Promoter to get 1.25 mln shares on warrant conversion.

* COAL INDIA: Is in pact with the coal ministry under which it is targeting production of 452 mln tn and coal offtake of 454 mln tn in 2011-12. (ET)

* GLAXOSMITHKLINE PHARMACEUTICALS: Supreme Court orders company to pay 710 mln rupees on drug overpricing.

* GMR INFRASTRUCTURE: Macquarie SBI invests 8.93 bln rupees in company's arm GMR Airports Holding.

* GODREJ CONSUMER PRODUCTS: Has completed the merger of Godrej Household Products with self.

* HERO HONDA MOTORS: To announce new export markets, new brand name, and make public terms of separation from Honda Motor Co in less than a fortnight. (FE)

* HINDALCO INDUSTRIES: Has tied up loans worth 78.75 bln rupees from a consortium of lenders for its 359,000-tn Mahan aluminium smelter project.

* JET AIRWAYS INDIA: Plans to use lighter and slimmer economy class seats on domestic routes to shed weight and increase the number of seats. (Mint)

* JK PAPER: Redeems foreign currency convertible bonds worth $5 mln.

* KALPATARU POWER: Gets orders worth 9.5 bln rupees. (

* KINGFISHER AIRLINES: Has allotted 231.87 mln equity shares to lenders and promoters on conversion of preference shares, resulting in decline in promoter holding to 58.6% from 66.3%.

* KREBS BIOCHEMICALS: To issue shares to promoter on preferential basis.

* MIRC ELECTRONICS: The maker of consumer durables under the Onida brand plans to raise prices of air conditioners and television sets by 4-5%. (DNA Money)

* MINDTREE: To announce a new chairman today, likely to be one of the nine founders of the company. (BS)

* NIIT: Future Group and NIIT plan to partner with the National Skill Development Corp to train 7 mln people each over 10 years, where Future Group will enter into a JV with NSDC, and NIIT will invest 2 bln rupees. (ET)

* NTPC: Has commissioned unit 3 of Simhadri super thermal power project, which has capacity of 500 MW.

* STATE BANK OF INDIA: Has extended its special home loan scheme until further review.

TATA MOTORS: Plans to introduce a range of smaller trucks by May-Jun, which will ride on its Prima platform. (DNA Money)

* TATA POWER: To end electricity-supplying agreement with RELIANCE INFRASTRUCTURE from today and divert the power to its own consumer base in Mumbai. (Mint)

* SOBHA DEVELOPERS: May look at monetising more land to raise funds as the company prepares to launch projects in new markets such as the National Capital Region, and Chennai. (DNA Money)

* VADILAL INDUSTRIES: Has increased ice-cream production capacity to 325,000 ltr per day, and expects 40% growth in sales during FY12.

* VIPUL DYE CHEM: Acquires 56% stake in Shree Ambika Naturals.

* WINDSOR MACHINES: Approves reduction in share capital, stock split.

* WS INDUSTRIES: Sells 31,000 shares of arm WS Electric to arm WS Insulators for 387.5 mln rupees.

Who care’s whats happening with Libya……

No one cares about the International markets when our markets are doing good.

Everyone’s forgotten about Gadaffi, after the Japan sinked by the Tsunami. Researchers feel that there is a lot of buying opportunity in Japan. Japan will soon regain its strength. But what has triggered buying in Indian markets. Crude which was a major concern in the last 2 weeks, commodities is still at their peak. Inflation is almost there at its highest levels. Still no outcome for the pranksters which are held in the scams. Then why have the Indian markets turned positive suddenly.

It might be just a technical reason. Indian markets in the last few months have been in the downtrend. Since the start of this year indices gave negative returns of almost 15-18%. Nifty from the high of 6200 tanked down to make a low of almost 5200 levels. Sensex made a low of 17295 from the high of 20650 odd levels. At 5200 levels Nifty was trading in the oversold zone. Currently the Nifty is at 5650 and Sensex at 18800.

Indices have almost bounce 10% from their lows but the stocks are still way below their peaks. Midcap stocks are struggling hard to reach up to their 50% crashed mark. Select Largecap stocks have helped markets to regain strength.

Real Estate stocks have been performing very badly on the brousers. The growing inventory has proved bad for the stocks. House registration is down almost 35-40%. But the prices are still to collapsed. Coming next financial year prices should cool off.

Portugal might have no alternative to accepting a financial rescue from the EU and the International Monetary Fund after the parliament rejected severe austerity measures.

Technically Nifty bounced back from it’s over sold zone and made a recent high of 5667. Nifty is just few points below its 200DMA. Nifty on Thursday has given breakout. Nifty close above the trendline. On Friday Nifty and Sensex both opened with a gap. 5600 has been a very crucial levels to cross over. In the last two occasions also Nifty did try to close above the same but could not do so. Finally on Friday markets opened with a gap and close above the 5600 levels. Nifty will face resistance at 5690 levels. On Friday, Nifty closed above its 50% retracement levels also. Close above 5690 will take the Nifty to 5726-5747 levels. Nifty will support levels at 5624-5590.

This writer had advice to buy Silver on every levels right from the $16 levels. And now it’s at $36. I would still advice my readers to buy Silver with a long term prospective. None of the commodities will give better returns as this one…… Buy buy buy…..

This weeks call

Buy Allahabad bank above 221 SL 219.

Buy Areva with a SL of 242.

Buy Axisbank close above 1377 SL 1370.

Buy BOB close above 933.

Buy Brfl close above 267.

Buy Educomp with a SL 417.

Buy Fintech close above 874.

Buy Sbi above 2728. SL 2717.

Oils Not WELL with the Indian markets

Oil rose over $114 a barrel as fighting intensified in Libya, and OPEC said it saw no need to old an emergency meeting on ease supply fears. Heavy fighting in Libya had forced the shut down of one of its biggest refineries. The Zaiyah refinery is the biggest provider of gasoline in Libya, and has a total capacity of 120000 barrels per day. Finally at all this pain OPEC has decided to raise the oil output. Leading OPEC producer Saudi Arabia is already pumping more oil – upto 9 million barrels per day. The rise in the crude oil price will surely effect the Indian government who has done their Fiscal math. Oil marketing companies in India are already making a loss of around Rs.450Cr a day.

Spain has been downgrade once again. According to the estimate, Spain will need as much as Euro 50 bn ($ 69 bn) to meet new capital requirements. Spain has taken unprecedented measures to avoid following Greece & Ireland into a bailout, implementing the deepest budget cuts in three decades, As European leaders negotiate a reinforced rescue effort, Spain is tightening capital requirements for banks in a bid to show investors that its lenders can weather a 4^th year of economic slump. China reported an unexpected $7.3bn trade deficit, the biggest in seven year.

IIP data for the month of Jan is at 3.7% vs 1.6% in Dec. Manufacturing Rises 3.3%. Mining Output Rises 1.6% In January. Electricity Production Rises 10.5%. Consumer Goods Production Rises 11.3%. India’s exports jumped 50% in Feb. Indian crossed the $200bn target for the fiscal year. Inflation dropped down to its 3 month low at 9.52% as compared to 10.39% in the week before.

Crude at the start of the week continued its upward move but cooled down at the end of the week. Silver once again made its all time high of almost Rs.55000. Investors are still advice to buy Silver at all the levels.

Japan has been hit by one of the worst Tsunami’s in the recent times. Stock markets tanked in the late hours of the last session. Nifty and Sensex closed down nearly 2%. Oil & Gas sector indices was the only sector which managed to close in green by 1%. Rest of the Indices closed down in Red. Capital Goods, Metal & IT Index tanked nearly 3% each. Auto & Bankex closed down 2%.

Few midcaps had their jolly time on the brousers. Tata coffee jumped almost 50% in a single week. Oswal chem. Rallied 36%, while Apollo tyre surged 12%. Most of the frontline stocks tanked in the week leading to a fall in the Indian markets. Bpcl sinked 6.3%, Sbi 5%, Tcs -6%, Lnt & Maruti nearly 4%. Tata Stell 6, Bhel 5.5%. In the mid cap Educomp tanked the most by 11%, GVK 6.5%, Renuka by 3.8%.

The rally in the start of the week showed great strength and it felt the worst may be soon over. But the markets tanked on the last 2 session, Nifty closed down at 5445 levels. Nifty is trying really hard to close above its 50% retracement levels. It did close above the same for a day but the next day again the markets tanked that failed the consecutive close of the Nifty above the same. On the last day of the trading session Nifty closed just near to its 20DMA.

Nifty after making a low of 5177 on 11^th Feb bounced back sharply to make a high of 5608 in the last week. But again close down at 5445 levels. Close above its 50% retracement levels can prove to be good, but till that time the markets will remain bearish.

This Weeks Call

Short Andhra Bank below 134 SL 137.

Buy Asian Paint close above 2530 SL 2514.

Sell Bharti Air below 320 SL 326.

Sell Bhel with SL of 1973.

Buy Hdil close above 168 SL 165.

Buy Ongc above 285 SL 281.

Sell Tata Steel with SL of 595.

All Credit goes to Gadaffi…

The fear can be seen in the market prior to the Budget session that will be conducted on Monday. FII have been selling in the Indian markets since last few trading sessions. Not only has this had the Libya issues taken most of the emerging markets for a toss. Fear of more civil war has impacted the global markets. Libya being the 12th largest Oil export is been in trouble since last few weeks. All thanks to the ruler Muammar Gadaffi. Crude oil has shoot up $100 a barrel. Brent crude is nearly $120 a barrel.

Consumer confidence rose to a 3yr high in Feb. but the home prices for the 6th month in row in Dec suggests that the economy still faces significant hurdles. The expectations rose to its highest level to 95.1, its highest level since Dec 2006, From 87.30.

Nifty and Sensex tanked nearly 3% in a week. Midcap and Smallcap were badly hit during the fall. Both the index fell more than 4%. The entire sector index closed in red. Capital good Index fell more than 6% while bankex, Reality and Healthcare Index fell down nearly 4.5%. Automobile Index lost 5.3%. After the Rail budget most of the rail related stocks fell heavily. Kalindee rail & Titagarh Wagon lost 20% while Texmaco lost 11%. Sesagoa, Bpcl & Dlf lost 8% each. M&M, Lnt, Tata Motor, Sbi, Rcom lost in the range of 6 – 7.5% each. Bhel, Ntpc, Jaiprakash & Hdfc Bank lost nearly 5.5% each.

In the stocks Aurobindo was one of the major looser which lost 25%. Mphasis after its results update fell 32%. Orchidchem by 11%.

ADAG stocks were in the limelight. All negative rumors flew in the market about Anil Ambani.

Oil jumped to the highest in more than two years in New York as intensifying violence in Libya stoked concern that supplies from the holder of Africa’s largest crude reserves may be disrupted. Brent crude may trade in the range of $105-110 in the unrest continues. As Libya continues to simmer, the whole world is waiting to see if the crisis will spread to other oil producing nations in West Asia. Analysts estimate that as many as a million barrel if Libyan oil a day have been removed from world markets in recent days, and investors fear that more oil production could be disrupted if the unrest spreads to other crucial producing nations, like Algeria.

Finally the Indian government has taken front seat to punish the culprits in the 2G & CWG scams.

Highlights of Economic Survey 2010 – 11 • Economy expected to grow at 8.6% in 2010-11 and 9 per cent in next fiscal • Growth broad based with rebound in Agriculture, continued momentum in manufacturing and private services • Fundamentals strong with Savings & Investments up, exports rising rapidly and inflation falling • Agriculture likely to grow at 5.4% in 2010-11; • Industrial output grows by 8.6% ; manufacturing sector registers 9.1% • Exports in April-December 2010 up by 29.5 % • Imports in April – December 2010 up by 19% • Trade gap narrowed to US $ 82.01 bn in April-December 2010 • 59% rise in Net Bank Credit • Social program spending stepped up by 5 percentage points of GDP over past 5 years • 9.7% growth of GDP at market prices.

Monday’s the day when most of the Indian people will have their head in the Idiot box. Not even Indian’s; FII’s too will be looking for the ‘Budget day’.

Some of the expectation from the Budget 2011.
· Possibility of the hike in Excise duties- Negative for Automobile.
· Import duty may be cut- Positive for Coal.
· Expect increase in Central Excise duty – Negative for Engineering
· Expect increase in outlay for defense – Negative for Engineering
· Reduction in the duties on crude oil – Positive for Oil sector
· Expect higher Plan allocation to power sector & housing and provision of basic amenities – Positive for Metal.
· Expect continuation of Technology upgradation Fund Scheme – Positive for IT
· Expect reduction in import duty – Positive for Textile.

The last article which I had written was on 5th Feb 2011. Nifty was trading at 5395. I had mentioned that the Nifty is controlled by the Bears. (Nifty will find support at 5348 but close below the same will take the Nifty to 5232 levels directly) Nifty Friday made a low of 5232 and closed at 5303. In the chart we can see that the Nifty closed below the 61% retracement level on Friday. Close below the same will a kind of a blood bath in the Indian markets. In the fall of the 2008 nifty bounced back but could not cross the resistance at 5232-5250 levels and we all know what the impact was. Nifty might come down to 4800 levels also. This target will be only in the extreme case which can be achieved. With all the bad rumors I don’t think that the Nifty will turn up so soon.

This weeks call
Sell Bharat Forge close below 302 SL 307 tgt 298-294- 288.
Sell Bhel below 1961 SL 1973.
Sell Cromptrom below 240 SL 243.
Sell M&M below 587. SL 595.
Buy Mundra Port close above 148 SL 145.
Sell Ongc below 260 SL 264.
Sell Rcom below 85 SL 87.
Sell Rinfra below 637.

Now its Egypt’s turn

The political unrest in Egypt, which threatens to destabilize the oil rich Gulf region, fuelled a rally in oil and Gas exploration company shares on Monday. Markets men expects rally to continue for couple of more days. The higher crude prices will be beneficial to Ongc, Gail, Oil, and Cairn & Ril Ind. Many Indian Fmcg companies will be surely impacted.

Nifty and Sensex have fallen by 10% 2011 ytd on concerns such as high inflation, high crude oil prices, lack of progress in govt reforms, fear of populist moves by Indian govt in the wake of 5 state elections scheduled in May. I believe that while higher inflation may be partly priced, we are yet to see significant selling by foreign institutional investors yet. FII selling can take markets down by 10%-15% more.

After the record inflow in the Indian markets last year, this year since the start has been proved bad for the individual investors. Markets have lost more than 12% in just 1 month. There have been lots and lots of bad news in the markets since the start of the New Year. Political instability fear is also there. Scams have become a routine part of our life. Sebi have cautioned traders or investors to trade carefully in nearly 1900 scripts which are illiquid. 2G scam has roped in many others company which has been tangled with Mr.Raja.

FII have already sold equities worth $1053.50 mn in Jan and continued selling in Feb too. Increasing number of scams in the listed company and the political instability has been the major reason why the FII have been turned sellers in the Indian markets. Rupee depreciated 2.3% vis-à-vis the US dollar this year. In the last few articles this writer had mentioned that these will the main reason why the FII will the selling Indian equities.

Prices of crude oil have gone up to $92 which was around $85 earlier in the weak. It is likely to reach $100 and may be above.

Global markets have been rallying since last week. Dow Jones closed above 12000 for the fist time since 2008. New US claims for unemployment benefits fell sharply last week. Growth in the US services sector in Jan was the fastest in more than 5 yrs. Another sign the economy is started the New Year on a solid grounds. But Indian markets remained lackluster with low volumes and sinked nearly 10-12% since start of the New Year.

This weak Indian markets tanked nearly 2.2%. All the indices have closed in red. IT & Auto index lost nearly 3%. Fmcg and Reality index were the major looser. The index lost more than 6% in a weak.

Inflation is the major concern for the government now. To tackle the inflation the bank rates have to be increased once again in the near future. Reality sector have lost their shine as the sales have nose dive in the last few months. Prices in some places have risen too fast and too much and its out of the reach of the common people. Increase in bank lending rate will surely have an impact on the pockets of the common people.

Finally the Nifty closed below 5400 levels. Nifty did try to close above its 50% retracement levels but failed to do the same. Thursday Sensex surged more than 300 points but the gains were washed out on the every next day. Sensex dropped more then 475 points. Sensex and Nifty close down nearly 2.2% in a week.

This writer have been constantly mentioning that if Nifty closes below the 5700 levels than the next good support is at 5400 only in between there will be small supports. This week Nifty closed below its 5400 after a ‘DEAD CAT BOUNCE’ of 350 points on Thursday. Nifty is still below its 200DMA. This week for the first time nifty close below its 200DMA in last 5 months. Nifty will find support at 5348 but close below the same will take the Nifty to 5232 levels directly. 5348 is a 61% retracement levels.

Viewers can see that Nifty is trading in line with the Fibonacci Retracement levels. RSI is now in the oversold zone.

Last Weeks Call

Short United Phos below 151 SL 153 tgt 146-142. Tgt reached. Made a low of 134.

Buy Union Bank above 328 SL 323 tgt 333-339-342. Made a high of 335.

Short Torrent Power below 235 SL 238. Buy if closes above 241.50. Made a low of 213.

Sell Tata Motor Close below 1182 SL 1192 tgt 1172-1162-1141. Made a low of 1063.

Buy Tata Motor only above 1210. Did not trigger the buy price.

Buy SBI with SL of 2590 tgt 2610-2634. Did not trigger the buy price.

Buy SesaGoa with SL of 330. SL triggered.

Buy Relcom above 138 small resistances at 139. With SL of 134. Did not trigger the buy price.

Sell PNB close below 1125. SL 1133. Made a low of 1051.

Buy Icici bank above 1069 SL 1063.. Did not trigger the buy price.

This Weeks Call

Sell Icici Bank below 990 sl 998 tgt 964.

Sell Axis Bank below 1218 sl 1223 tgt 1201-1995-1182.

Sell Biocon below 340 sl 343 tgt 333-331-320.

Sell Cairn below 320 sl 323 tgt 314-312.

Sell Hcl Tech below 478 sl 481 tgt 470-462.

Sell Hdfc bank below 2005 tgt 2017 tgt 1995-1984-1967.

Sell Hdfc Ltd below 600 sl 605 tgt 592-589-582.

Sell Ibreal below 115 sl 118 tgt 108.

Sell Maruti below 1176 sl 1182 tgt 1150

Wednesday, Feb 2 - Morning brief for the stock market

TOP EVENTS TODAY

* Nifty companies detailing Oct-Dec earnings:

+ Bharti Airtel (net profit seen 15.70 bln rupees, down 30% on year)

+ Hero Honda Motors (net profit seen 5.74 bln rupees, up 7% on year)

* Oct-Dec earnings to be detailed by: Aarti Drugs, Aarti Industries,

Alphageo (India), Apcotex Industries, Apar Industries, Arshiya International,

Bemco Hydraulics, Cinemax India, Essar Shipping Ports & Logistics, Halonix,

Fedders Lloyd Corp, Great Offshore, GlaxoSmithKline Consumer Healthcare,

ICRA, Infinite Computer Solutions (India), Jai Corp, Jet Airways (India),

Jenson & Nicholson (India), Lloyd Electric & Engineering, Krebs Biochemicals,

Muthoot Capital Services, Nahar Industrial Enterprises, Neuland Laboratories,

Nitco, Sagar Cements, SEL Manufacturing Co, Sirpur Paper Mills, SJVN, State

Trading Corp of India, Taj GVK Hotels & Resorts, TTK Healthcare, Vardhman

Textiles, Voltas, Wanbury, and Wockhardt.

* Board Meetings of:

+ Gitanjali Gems to mull fund raising plans via convertible bonds, shares.

+ Kavveri Telecom Products to consider 4-mln-share preferential allotment.

INDICATORS (previous session)

* NSE provisional net buy/(sale) in bln rupees, Feb 1: FII (10.37), DII 6.30

* Institutional net buy/(sale) in bln rupees, Jan 31: FIIs (9.00), MF 4.15

* FII NSE futures net buy/(sale) in bln rupee, Feb 1: index 7.30, shr 0.03

* Sensex 18022.22, down 305.54 points; Nifty 5417.20, down 88.70 points.

* Crude: $90.77/bbl; Rupee: 45.75/$1; Gold: $1,338.80/ounce; 10-yr yld: 8.1527%.

OUTLOOK

* Local share indices are seen opening up tracking strong cues from overseas

shares. Initial resistance for the Nifty is pegged at 5450 and support at 5400.

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GLOBAL STOCK MARKETS

* US shares ended up Tuesday, with the Dow Jones Industrial Average closing

above the 12000-mark for the first time since June 2008, driven by stronger-

than-expected growth in the US manufacturing sector.

* Asian equities were higher in early trade today tracking the US data and

higher commodity prices on the London Metal Exchange.

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SECTOR NEWS

* AUTOMOBILE: Luxury carmaker Mercedes-Benz is planning to roll out up to 22 new models and variants in India during FY12.

* BPO: Aegis has formed a JV with Saudi Telecom Co to manage the latter's customer care ops, which may earn revenue of over $2 bln over eight years.

* COAL: Prime Minister Manmohan Singh is learnt to have asked the ministry toexpedite clearances to coal blocks in the "no-go" areas.

* ENERGY: Gamesa appoints investment bank Morgan Stanley to scout for wind power assets in India. (Mint)
Ratnagiri Gas and Power Pvt Ltd's plan to add to 2,100 MW at its Dabhol power plant stuck as Maharashtra government unwilling to pay more for the power. (Mint)

* GOVERNMENT: Life Insurance Corp of India paid dividend of 10.30 bln rupees to the central government for 2010-11 (Apr-Mar).

* POLITICS: National Democratic Alliance will not budge from the demand for a Joint Parliamentary Committee probe into the 2G spectrum allocation scam.

* REALTY: The Reserve Bank of India asks banks to secure realty loans with escrow accounts and keep a tab on the end use of funds. (ET)

* TELECOM: The Supreme Court has declined a plea to suspend the controversial telecom license allotments made in 2008. Vodafone Essar defers plan to sell 7,000 towers across seven circles due to ongoing dispute between the joint venture partners Vodafone and Essar. (ET)

Department of Telecommunications asked all mobile companies to provide report on implementation of mobile number portability by today. (ET)

Vodafone Essar appoints Goldman Sachs to assess Essar's 33% stake in joint venture. (FE)

STOCKS

* BANK OF BARODA: Has raised interest rates on deposits of most tenures by 25-50 basis points.

* BANK OF INDIA: Has increased its Base Rate by 50 bps to 9.50% and BenchmarkPrime Lending Rate also by 50 bps to 13.75% effective Feb 3.

Has approved raising funds via issue of 30 mln shares.

* DABUR INDIA: May hike prices of some products in Apr-Jun if costs of raw materials continue to rise.

* DENA BANK: Has hiked Base Rate by 50 bps to 9.45% effective from Feb 1.

* EICHER MOTORS: Eicher Trucks and Buses sold 3,524 vehicles in January, up 28.5% from a year ago.

* FINANCIAL TECHNOLOGIES (INDIA): Has launched Bahrain Financial Exchange.

* GATI: Hires consultants for to draw blueprint for the makeover, plans buyouts.(DNA Money)

* GLENMARK PHARMACEUTICALS: Starts manufacturing samples at its new plant in Indore, samples to be shipped to US for FDA approval. (ET)

* GVL POWER & INFRASTRUCTURE: Emerges top bidder for IDFC's arm Dheeru Powergen which will set up 1,050 MW power plant at Korba in Chhattisgarh. (Mint)

* HERO HONDA MOTORS: Sold 466,524 two-wheelers in January, up 19.7% from the corresponding month last year.

* HINDUSTAN MOTORS: Planning to launch small car in July. (FC)

* HOUSING DEVELOPMENT FINANCE CORP: Raised floating rate on home loans by 25 basis points, effective Feb 1, for existing and new customers.

* IFCI: Delhi High Court has slapped a contempt notice on the company forhaving issued notices to shareholders of TOURISM FINANCE CORP of India convening an EGM.

* INDIAN OIL CORP: Planning to invest 50 bln rupees to expand its Koyali refinery in Gujarat to 18 mln tn from current 13.7 mln tn. (BS)

* INDUSIND BANK: The RBI has allowed foreign institutional investors to buy the bank's shares after obtaining prior approval.

* INFOSYS TECHNOLOGIES: Chief Operating Officer S.D. Shibulal to succeed Kris Gopalakrishnan as chief executive officer in April. (ET)

* MADHUCON PROJECTS: IS mulling to dilute 15-20% stake in subsidiary Simhapuri Energy to raise 5 bln rupees. (FC)

* MCNALLY BHARAT ENGINEERING CO: Has raised its holding in London Stock Exchange-listed Specialist Energy Group to 13.88% from 11% earlier.

* NTPC: Has got approval from the Ministry of Environment and Forests to start operations at its captive coal mine at Pakri Barwadih in Jharkhand.

* OIL AND NATURAL GAS CORP: Has said the government must resolve the issue of royalty payment on Rajasthan crude oil before the company launches its follow-on public offer.

Arm ONGC Videsh to exit oil blocks in Egypt as it did not find the discovery commercially viable. (BL)

* RELIANCE INDUSTRIES: Arm Infotel Broadband Services has invited bids from telecom tower operators willing to lease out 26,000 towers across India. (Mint)

* TATA STEEL: Is considering to issue a perpetual bond to raise $500 mln in Apr-Jun. (DNA Money)

* VISESH INFOTECNICS: Has bagged a Punjab government contract worth 23 mln rupees.

This article was written on 27^th Jan and the levels mentioned are based on the 27^thJan levels.

Nifty continued its downward movement. This week as the Nifty ended its Jan F&O series, Nifty spot fell below the long term support levels of 5700 once again. Nifty and Sensex lost more than 8% in the Jan series. Most of the frontline stocks lost heavily as the Nifty slide continued. Heavyweights like Bajaj Auto lost 14%. HUL which is normally considered the stock with rock solid performance lost nearly 13%. Jsw steel and Sail shred 18% & 12% respectively. In the Reality space Unitech and DLF lost 17%. Ongc tanked more than 14% in the Jan series alone. Hdfc and Icici bank also lost in the range of 10-12%. Sterlite lost 10%.

Finally as expected FM have mentioned that the government will not be questioning the Black Money lying in the Swiss Banks. The Black money can be brought back to India with a tax payment here. I really could not calculate the benefit achieved by doing this. It seems that Indian politicians are aware of the people and the amount kept in the Swiss Banks but they do not want to disclose. This might reveal most of the highend Netas name too….

Banks which gained the most in the last week, slipped down this week on the as the Reserve Bank of India (RBI) on Tuesday increased the key policy rates by 25 basis points (bps) each, as the central bank steps up its efforts to tackle a stubbornly high inflation at the cost of some moderation in economic growth.

The repurchase rate (repo rate) has been hiked by 25 bps to 6.50%, while the reverse repo rate has also been increased by 25 bps to 5.50%. The central bank also extended the 1% leeway in the SLR up to April 8. CRR has been left unchanged at 6%.

The inflation target for FY11 has been increased to 7% from 5.5% earlier while the GDP forecast for the current fiscal year has been kept steady at 8.5% with an upward bias.

In the last weeks article I had mentioned that the Nifty will face resistance at 5725 and levels and fall below the 5662-5639 levels may take it to 5580 levels. Nifty on the close of the Thursday’s close fell down to make a low of 5593.70 but close marginally higher above 5600 levels.

Nifty have slipped below its 38.2% retracement levels and close at 5607 after making a low of 27^th Jan 2011. Nifty closed below its 200DMA. The fall will continue till 5540 levels. Close below the same will take the nifty to 5488-5400 levels. Nifty is not at all in the mood to trend upwards. Rolls have been way below the average. Volumes have been vanishing from the markets. Nifty in the short term may trigger 5400 levels.

Nifty have been in the sell mode since when it closed below the 5700 levels. These have been mentioned in my last few articles also. The above mentioned levels are just the small support levels where we might see some pull back coming and then sell off at the end. These levels are for the traders who want to take some short term positions.

Last Weeks Call (prices as of 27^th Jan 2011)

Short United Phos below 151 SL 153 tgt 146-142. Target still not achieved.

Buy Union Bank above 328 SL 323 tgt 333-339-342. 2nd Tgt reached. Made a high of 340.

Short Torrent Power below 235 SL 238. Buy if closes above 241.50. Made a low of 230.50.

Sell Tata Motor Close below 1182 SL 1192 tgt 1172-1162-1141. 2nd Tgt reached. Made a high of 1160.

Buy Tata Motor only above 1210. Did not trigger the levels.

Buy SBI with SL of 2590 tgt 2610-2634. Made a high of 2737.

Buy SesaGoa with SL of 330. Made a high of 344.

Buy Relcom above 138 small resistance at 139. with SL of 134. Did not trigger the levels.

Sell PNB close below 1125. SL 1133. Made a low of 1102.

Buy Icici bank above 1069 SL 1063. Made a high of 1092.

This Weeks Call

Sell Adani Ent close below 612 SL 618 tgt 600-590-584.

Sell Ashok Leyland close below 58. SL 60 tgt 55-53.

Sell Asian Paint below 2600 tgt 2575-2547.-2520.

Sell Hdfc Bank below 2030. SL 2049.

After the Dubai bailout, Arab leaders are also moving forward to finally implement a proposed $2billion program to revamp the faltering economics across the region amid fears of protest over high unemployment, rising prices and rampant corruption, such as those that brought down Tunisia’s government.

Nifty is finding it hard to cross over above the 5700 that is around its 38.20% retracement levels. Nifty took support at its lower Bollinger band but failed to close above the 5700 levels on weak on weak basis. Nifty is almost close to it’s over sold zone.

RIL- 3Q FY2011 Results – in line with street estimates, marginally lower than our estimates.

Bottom-line at Rs51,360mn v/s our expectation of Rs53,142m and Street estimate of around 5,1890m. Topline at Rs597,890mn as against street expectation of 6465,620 m and our expectation of 6,03,030 m. Other income higher than estimates expectation was Rs 5410 m.

Banks were the flavor for the week. Banking stocks outperformed the markets. Last 2 days banking stocks were in light. Bank Index jumped 4.2% out performing rest of the stocks. Axis bank closed 7% higher, Sbi gained 3.8%, BOI gained them most by 10.5%. Kotak Bank was up 4%, Dena Bank 8.5%. Sensex and Nifty closed marginally higher, recovering just 0.7% on week on week basis after the sell off in the last week. IT Index surged 3%, while Metal Index was up more that 2%.

Sail which close at its 52 week low in the last week closed higher 3.8%. Bajaj Auto who came out with results gained nearly 5%. Hcltech too gained nearly 6% after the announcement of its 3Q results. TCS gained 8%. M&M gained 4%. In the Midcap space Shree Ashtavinayak gained nearly 30% after the sellers turned Buyers in the week. Lloyd steel once again saw some buying as it used to see before the 2008 meltdown. Stock rallied 25% in a week. Rumors in the market that the stock can touch Rs.40.

After the SEBI barred Anil Ambani to trade in the securities market for a year. ADAG stocks seem to have a free fall on the brousers. Rel infra sinked 7.5%. Relcapital lost almost 5%. Oil Index lost 2.3%. Ongc lost nearly 6.5%, Gail close down 7%. RIL lost 1.5% before the announcement of the results. Capital Good closed down 2%. Lnt close down 3.5%. Hero Honda tanked 3.5% while Bharti Airtel lost 2.5%. HCC tanked 8% while GVK project lost 6%.

Nifty for the upside move have to close above the 5750 levels. Till that time Nifty will trade in a narrow range of 5650-5750 levels. Nifty will continue to face resistance at 5725-5750 levels. At the lower levels Nifty will find support at 5662-5639 levels. Nifty if closes below 5639 then the levels that could touch is 5600-5580 levels.

Gold seems to be in the correction mode now. Buy silver in correction…

Last Weeks Call

Short AB nuvo below 738 SL 745 tgt 724-708. 1^st Tgt reached. Made a low of 719.

Short Andhra Bank below 128 SL 130 tgt 123-119. Made a low of 124.

Short Axis Bank below 1198 SL 1215 tgt 1156-1150. Did not trigger the sell price.

Short Bharat Forge below 348 SL 352 Tgt 350-341. 1^st Tgt reached. Made a low of 342.

Short Cipla below 339 SL 344 tgt 335- 330. Did not trigger the sell price.

Short Cummins below 708 SL 711 tgt 697-690. Did not trigger the sell price.

Short Hdfc bank below 2050 SL 2055 tgt 2030-2010. Did not trigger the sell price.

Short Icici Bank below 1013 tgt 1001-995. Tgt reached. Made a low of 993.

Short PNB below 1108 SL 1120 tgt 1091-1080. Did not trigger the sell price.

This Weeks Call

Short United Phos below 151 SL 153 tgt 146-142

Buy Union Bank above 328 SL 323 tgt 333-339-342

Short Torrent Power below 235 SL 238. Buy if closes above 241.50.

Sell Tata Motor Close below 1182 SL 1192 tgt 1172-1162-1141.

Buy Tata Motor only above 1210.

Buy SBI with SL of 2590 tgt 2610-2634.

Buy SesaGoa with SL of 330.

Buy Relcom above 138 small resistance at 139. with SL of 134.

Sell PNB close below 1125. SL 1133.

Buy Icici bank above 1069 SL 1063.

Bear control. FINALLY!!

Finally the Government had given the intimation that it cannot control the inflation. HAHA how so the government realized it. After so many exports now Indian government have started importing the same thing again back in India. The big example is Onion.

Bears have totally got in control of the market. Nifty dropping and closed below 5700 and Sensex below 19000 levels for the first time since Sep 2010. This writer in the last few article has been constantly informing the readers about the impact on the market when Nifty will break below 5700 levels. Nifty finally closed below its long term support levels of 5700 and closed at 5646.

Last weeks trading session was clearly based on the technical moves. Fall from the high of 6178 on 3^rd Jan 2011 which was near the long term trendline (marked in chart), nifty within few 3 trading session closed below the 23.6% retracement and the fall continued to find support at its 38.2% retracement levels as per the Fibonacci Theory.

Indian indices tanked for one of the worst levels since Sep 2010. Nifty and Sensex closed down nearly 4.5% in a week. Midcap & Smallcap Index closed down in the range of 3-4%. Capital Goods, Bankex and Real Estate index lost over 5% in week. IT Index and Metals lost around 3.5%. In the banking space Hdfc bank tumbled down more then 10%. Banking stocks lost their grounds in fear of the rate hike by RBI (informed in last article). Hdfc Ltd lost 6.4%. Ril close down 6%. Sail after its tragic fall in the Net profit closed down at its new 52 week low. Sail planning for FPO in the coming month. Kotak bank too lost 9%, Idfc 8%. Tata steel fell 6% just few days before the open of its FPO. Infosys after its lackluster results tumbled down 5% in week. All eyes are now on TCS results. Lnt lost 8%. Hdil fell 11%. Zee announced its results this week. Icici bank tanked 4%.

The Chinese government will surely be in severe pressure to devalue Yuan against Dollar after the formers trade surplus narrowed in 2010for the second straight year. China still remains the largest car producer in the world. European Central Banks threw Portugal a temporary lifeline on Monday by buying up its bonds as market and peer pressure mounted for Lisbon to seek and international bailout soon.

Industrial growth slumped to an 18 month low of 2.71% in Nov 2010 as compared to last year’s 11.3% in Nov 2009 coupled with the high inflation pressures, impact of interest rate increase and a modernization in export growth all weighed down IIP growth during the month.

In the last week Nifty close below its 23.6% retracement. Nifty in the current week decisively closed below the 5700 levels. Nifty tried to close above the long term trendline but could not do so. In the last Nifty closed below its 50DMA and continued the fall to close at 5646 levels. Nifty will find support at 5639-5590-5540. 5540 is again its 50% retracement levels. Close below the same will take the Nifty to 5400 levels. On the upside the Nifty will face resistance at 5800. Nifty will find support at is 200DMA.

Last Weeks Call

Sell Infosys below 3350 with SL of 3357. Made a low of 3185.

Sell Rel Cap with SL of 637 tgt 625-615. Tgt reached. Made a low of 595.

Sell Hdfc Bank below 2265 SL 2271 tgt 2240-2220-2208. Tgt reached. Made a low of 2030.

Sell Ambuja below 127 SL 128.50 tgt 126-121-119. 1^st tgt reached. Made a low of 123.7.

Sell Andhra Bank below 141 SL 141.50 tgt 138-134. Tgt reached. Made a low of 129.

Sell Axisbank below 1276. SL 289 tgt 1263-1245. Tgt reached. Made a low of 1195.

Sell Biocon below 400 tgt 395-391. Tgt reached. Made a low of 375.

Sell Canara bank below 602 tgt 585. Tgt reached. Made a low of 547.

This Weeks Call

Short AB nuvo below 738 SL 745 tgt 724-708.

Short Andhra Bank below 128 SL 130 tgt 123-119.

Short Axis Bank below 1198 SL 1215 tgt 1156-1150.

Short Bharat Forge below 348 SL 352 Tgt 350-341.

Short Cipla below 339 SL 344 tgt 335- 330.

Short Cummins below 708 SL 711 tgt 697-690.

Short Hdfc bank below 2050 SL 2055 tgt 2030-2010.

Short Icici Bank below 1013 tgt 1001-995.

Short PNB below 1108 SL 1120 tgt 1091-1080.

Inflation burns the pocket now…

Food inflation in India has surged to 18.32%. It surged to its high peak in the last one year. Food prices last month exceeded the level of the crisis of 2008 when a dramatic rise in agricultural costs sparked riots in over 30 countries.

Sharp recovery in the last week has been suddenly wiped out with the sell off in the Indian markets. Markets tanked for nearly 4%, the most sell off came on the last day of the trading session. Last weeks sharp rise, confirmed many people that the markets are in a good mood and the run will surely continue for some time. But nothing happened like this. Markets tanked on rising inflation and to control that the RBI may hike rates before the Policy Review.

The last week’s article named “Sensex 25000” seems to be realistic but there is still more time to see the actual figure. Indian markets tanked nearly 4% in a week. Midcap and the Smallcap Indices too sinked nearly 4%. Selling in the frontline stocks by the FII and the DII triggered the sell off in the Indian markets. Frontline stocks tumbled down in the range of 5-10% in a week. The major looser was the Auto Index which lost almost 7.5%. Bajaj Auto after the downgrade by CLSA tanked almost 15%, while Tata Motors lost 9%. Hero Honda and Maruti close down nearly 6%. Real Estate and the Bankex closed down 6.5% each. DLF contributed the most to the sell off, falling almost 8%. In Banking stocks Icici and SBI shrinked in the of 7.5-8.5% range while Hdfc lost 6%. Indusind and Yes bank collapsed 14% in a single week. Capital goods Index lost 4.8 while Metals continued its downward journey in 2011 also. Metal Index sinked 3.5%. Lnt closed down6.5%. Hindalco and Sterlite Ind closed down in the range of 5.5-6%. Jindal steel lost 14%. IT Index lost 2% and Oil & Gas Index lost a percentage. Hcltech closed down 2%. Ongc & Bpcl lost almost 6%.

The possible trigger for sell off in the Global markets could be because of possible worsening of European Sovereign crisis. Chinese policy makers rising key rates to tackle the rising inflation. The stock market is highly overvalued. It follows then that stock investments are nearly guaranteed to deliver poor, long-term returns. The rally since August 2010 isn't based on sound and sustainable economic factors, but on unsound and fragile faith in the Fed's ability to inflate asset prices. Stocks are extremely overbought when momentum indicators and the number of stocks reaching new 52-week highs stay below their cyclical highs, thereby not confirming the current run up. There is a debt crisis brewing, not just in Europe, but also in Japan and the U.S. The financial sector's problems have not been solved, but only papered over with money printing. In China a huge bubble economy has developed. Since Beijing has already implemented a turn in monetary policy, this bubble is prone to pop in 2011, posing a major threat for a still very fragile global economy.

Technically speaking rise gave trigger to buying spear. But the positive divergence changed to sudden selloff and the positive divergence once again changed drastically. Nifty as mentioned in my earlier article faced resistance at 6180 and fell from the same levels. Nifty made a high of 6178.55 and low of 5883. Sensex lost more the 500 points on the single day to close at 19691.On Thursday Nifty closed below the long term trendline. On Friday Nifty once again close below its 23.6% retracement levels. Nifty tanked below its 100DMA on the last day of the trading session for the week. Nifty immediate support at 5855-5800. Close below the same at 5800 Nifty will trigger selling pressure till 5700 levels.

Last weeks Call

Buy Ashok Leyland with SL of 62.25. Made a high of 68.75.

Buy Axis Bank above 1354 SL 1345. Tgt 1365-1370-1384. Made a high of 1776.

Sell Bpcl below 656 with SL of 661. Made a low of 614.

Sell DrReddy below 1662 SL of 1676. Made a low of 1636.

Buy Hdil SL 188. SL triggered

Buy Ibreal SL 127. SL triggered

Sell Infosys below 3430 SL 3440. Made a low of 3356.

This Weeks Call

Sell Infosys below 3350 with SL of 3357.

Sell Rel Cap with SL of 637 tgt 625-615.

Sell Hdfc Bank below 2265 SL 2271 tgt 2240-2220-2208.

Sell Ambuja below 127 SL 128.50 tgt 126-121-119.

Sell Andhra Bank below 141 SL 141.50 tgt 138-134.

Sell Axisbank below 1276. SL 289 tgt 1263-1245.

Sell Biocon below 400 tgt 395-391.

Sell Canara bank below 602 tgt 585.

SENSEX 25000

I wish all the readers a “HAPPY AND A BULLISH NEW YEAR.”

In 2010 Informed investor had given me an opportunity to share my views in a conference organized at Thane and my topic was SENSEX 25000. That time the nifty was trading at 5500 odd levels and Ril Ind at 950 odd. When I started the seminar the topic raised many eyebrows about the figure. But I was successful in answering them. I had given nifty target of new high and sensex at 2500 within a year. Nifty made a high of almost 6300 levels. I hope this year we shall see new highs in market.

2010 proved to be very good for some many people but at the same time has been one of the nightmares to some. CWG scam, 2G scam and lot more are now in public. The peopled linked with the scams have surely been made a killing on their Income. No doubt if the Indian markets have just given a return of 15%, but some have turned up multiple times also. But at the same time many people have tasted dust too. Investors who are stucked up with the midcap and smallcap stocks are still trading at their lower circuit levels after their names announced in connection with the stock operators.

Indian equity markets have gained almost 15% with the highest ever FII inflow. FII inflow for 2010 totaled to $28.8bn. On the MF side saw an outflow of nearly $7bn. But Domestic Insurance saw an inflow of $11.5bn. Only Metal index gave a negative return while the other entire index gained in the range of 20-50%.

Crude prices have gained 13%. Silver has gained the most in the precious stone side. It gained nearly 80% while Gold gained just 28%. This reader had suggested buying SILVER at $16. Now it’s almost $30. The Bull Run will continue the same way with some hiccups.

China to control its rising inflation raised the Interest rates on Last Saturday, the second rise in just over two months. The Peoples Bank of China said it would increase the lending rate by 25 bps and deposit rate also by 25 bps.

Inflation in India is been a major concern since a long time. Rising commodity prices lead to the rising inflation rate. Crude Oil prices are on the run and will continue the same in the coming months. There will be no stoppage for the same, as there is no immediately alternative available in such a big quantity.

Coming month once again we will witness volatility and stock specific movements on back of Quarter 3 results. Banking stocks will be in limelight.

In the metals sector, a trader will think gold and silver will be good performer sin 2011, but industrial metals like lead, zinc, copper, nickel and aluminum are more likely outperform than others. The world is running in to potential supply shortages in copper and nickel, demand remains strong.

In precious metals, platinum is also undervalued with relation to gains of gold and silver.

Gold is up more than 28% in 2010 and silver 81% but platinum is only 16% up while copper gave gains of 24%. Investors purchased gold and silver primarily as safe havens for inflation hedge. China has been buying and maintaining stock of copper which is used in wiring, cable and plumbing has a great potential for global growth. London Metal Exchange copper future hit a new all time high in December.

An aggressive pick is crude oil, the world demands more and more. An investor will see some significant appreciation in the coming next year for such reasons. The record high price of 2008 may not be seen in the near term, but technically, crude looks bullish for the coming year. On the other side, OPEC seems happy with higher prices and doesn’t look to change production levels, where as demand from emerging markets and low interest rate environment will have lead to addition in demand in US and the world.

Technically speaking Nifty has given breakout on the upside. As mentioned in my last article that the Nifty chart has shown some positive signs. Nifty had taken good support at its 23.6% retracement levels and bounced back. Today it has closed above its long term trendline. Last week MACD has given positive divergence. And this week Indices gained. Nifty closed at 6134. Sensex closed at 20509.

Nifty will face resistance at 6145-6180 levels. It seems that the Nifty is now in a new territory and the run will continue for some more weeks. Nifty chart suggests that now it’s in the making of a “W” recovery. It has breakout above its trendline and looks firm. Nifty might in the coming weeks may cross.

Last weeks Call

Buy SBI with a SL of 2730 tgt 2792-2805. Tgt reached, made a high of 1827.

Sell Ultratech Cement below 1040 SL 1045 tgt 1030-1018-1007. Did not trigger.

Sell Torrent Power with SL of 270. SL triggered

Sell Tata motors belo 1303 SL 1307 tgt 1286- 1269. Tgt reached, made a low of 1252.

Buy Suzlon above 51 SL 49.50. Made a high of 55.35

Buy Sunpharma above 470 SL 467. Made a high of 490.

Buy Relcapital With SL of 641. Made a high of 672.50.

Buy Rcom with SL of 132. Made a high of 146.35.

This weeks call

Buy Ashok Leyland with SL of 62.25.

Buy Axis Bank above 1354 SL 1345. tgt 1365-1370-1384.

Sell Bpcl below 656 with SL of 661.

Sell DrReddy below 1662 SL of 1676.

Buy Hdil SL 188.

Buy Ibreal SL 127.

Sell Infosys below 3430 SL 3440.