MARKET AS ON 24TH DECEMBER 2010 & SETTLEMENT LEVEL

SECOND DAY OF LACKLUSTER TRADE IN NIFTY AND THE TIGHT RANGE OF NIFTY WAS SEEN. NOW ON THE LAST WORKING DAY OF THE MARKET DON'T EXPECT ANY DIRECTIONAL MOVE TODAY.


NIFTY RANGE IS 5960-60 TO 6015-30. BREAK ON EITHER SIDE ( IF IT HAPPENS) THEN THERE SHALL BE ANOTHER 50 POINTS MOVE TO 5910 OR 6080. 


NIFTY OPTION DATA SUGGEST THAT NIFTY SETTLEMENT SHALL TAKE PLACE ABOVE 6000 OR NEAR TO 6000. IT MAY HAPPEN THAT NIFTY SHALL MOVE TO 6O80-6100 AS THERE IS STILL 4 MORE DAYS TO SETTLEMENT ON 30TH DEC (THURSDAY) AND THERE COULD BE SHORT COVERING AND THE CALL WRITER MAY COVER THE CE6000. HOWEVER I WILL KEEP UPDATING ON THE SETTLEMENT AS OF NOW NIFTY WILL SETTLE ABOVE 6000.(ALMOST 99.99% POSSIBILITY) 


HOWEVER ACTION IN NIFTY WILL BE SEEN IN THE JANUARY MONTH AND NIFTY SHALL TEST 6100-6180 ANY TIME SOON.  HENCE I HAVE RECOMMENDED TO BUY NIFTY CALLS.


NOTE: I HAVE BEEN RECOMMENDING BUYING ON CALLS OF NIFTY FOR LAST 15 DAYS , ALSO WHEN NIFTY WAS TRADING AROUND 5750-5800 AND THERE WAS LOT OF RUMOR OF 5500 IN NIFTY. IT IS IMPORTANT TO MENTION HERE THAT RETRO MERCURY AND ECLIPSE ON 4TH JANUARY 2011 SHALL BE THE CAUSE OF WORRY AS THERE WILL BE SUDDEN CHANGE IN TREND DUE TO ANY BREAKING NEWS BUT THAT CORRECTION OR FALL WILL BE SHORT LIVED. HENCE OPTIONS SHALL BE BEST PLAY FOR THE MARKET PARTICIPANTS AS IT LIMITS THE RISK AND SHALL GIVE GOOD RETURNS IF THE MARKET PERFORMS AS PER THE EXPECTATION.


FOLLOWING STOCKS LOOK GOOD TO ACCUMULATE:


SUGAR: BAJAJ HIND, RENUKA, EID PARRY, TRIVENI ENGG
FERTILISER: CHAMBAL AND RCF
METAL: HINDALCO, SESA GOA & STERLITE
BANK: SBI, ICICIBANK & YES BANK
PHARMA: SURYAPHARMA & DRREDDY
IT: POLARIS, ROLTA & AZTEC
AUTO ANCILLARY: NELCAST & IGRASI


BUY THESE STOCKS IN DELIVERY FOR GAIN IN JANUARY 2011 

Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.

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