RBI HIKED REPO RATE & REVERSE REPO RATE BY 25bps IN EXPECTED LINES BUT THE LANGUAGE WAS HAWKISH AS THERE IS A ROOM FOR MORE HIKES TO CONTROL INFLATION ON THE NEXT REVIEW OF CREDIT POLICY ON MAY 3RD 2011. THIS MADE MURKY SENTIMENT IN THE MARKET AND IN ANTICIPATION FOR MORE RATE HIKE MARKET LOST THE GROUND AND THERE WAS PROFIT BOOKING WHICH MADE NIFTY TO CLOSE AT 5446.65. POLITICAL MESS, RISE IN THE YEN AGAINST THE DOLLAR AND RISING CRUDE PRICES WERE ALSO RESPONSIBLE FOR THE PROFIT BOOKING AND WEAK MARKETS. SOME INSTITUTIONAL SELLING WAS SEEN IN LARGE CAPS LIKE RELIANCE, INFOSYS, WHICH BROKE BELOW 3000 DUE TO RISING YEN, AND SBI.
NIFTY HAS VERY NARROW RANGE OF TRADE BETWEEN (5400-5420) TO (5520-5535). BELOW 5420 SENTIMENT WILL BE VERY MURKY AND THERE WILL BE MORE DOWN SIDE OPEN TILL 5200. ABOVE 5550 SENTIMENT WILL BE BULLISH AND NIFTY MAY CROSS 5600 TO TOUCH 5700 ALSO. HENCE THE BROAD RANGE OF NIFTY IS 5200-5700.
THE BULLS ARGUMENT FOR GOING HIGHER FROM HERE:
1. THERE IS A CONTINUOUS INSTITUTIONAL BUYING BY BOTH FOREIGN & DOMESTIC.
2. MARKET BREADTH IS BROAD, WHICH MEANS THAT ENTIRE MARKET IS PARTICIPATING IN THE UP MOVE. HENCE THERE MAY BE A UP SIDE BREAK OUT.
3. THERE IS A SIGNIFICANT ADDITION IN THE OPEN INTEREST OF STOCK FUTURES.
THE BEARS ARGUMENT FOR GOING DOWN FROM HERE:
1. ONCE AGAIN THE COMMODITY PRICES LIKE COPPER ETC, HAVE STARTED RISING IN THE INTERNATIONAL MARKETS. CRUDE OIL HAVE STARTED TO TRADE AROUND $100 OR ABOVE WILL BE NEGATIVE FOR THE INDIAN MARKETS.
2. VOLUME IN THE CASH & DELIVERY MARKET IS VERY LOW, SHOWING THAT LACK OF INTEREST AND PARTICIPATION WITH CONFIDENCE, WHICH IS NOT GOOD FOR MARKETS TO RISE.
3. SITUATION IN THE JAPAN COULD WORSEN AND THERE MAY BE HEAVY REDEMPTION PRESSURE BY JAPANESE INVESTORS. SEE THE RISE IN JAPANESE YEN AGAINST THE DOLLAR.
ASTROLOGICALLY: AS ALREADY SAID THAT MARKETS WILL BE WEAK & POOR TO TRADE BETWEEN 7TH MARCH TO 18TH MARCH. SUPER MOON ON 19TH COULD CAUSE MORE NATURAL DISASTER IN DAYS TO COME. HENCE THERE WILL BE POOR SENTIMENT AND UNCERTAINTY LOOMING IN THE DIRECTION OF THE MARKET, WHICH WILL BE VERY NEGATIVE FOR THE MARKETS. THIS MAY PUSH INDIAN MARKETS TO NEW LOWS ANY TIME!!!!!!!
TODAY MARKETS COULD OPEN HIGHER DUE TO GLOBAL CUES BUT THE MARKETS SHALL BE IN THE RANGE OF 5420-5535 ONLY. ONE SHOULD BE CAUTIOUS IN CARRY OF HUGE TRADE BUT SHALL PARTICIPATE VERY LOW.
FOLLOWING STOCKS LOOKS GOOD TO TRADE AND WATCH FOR
FOR BULL & GOING LONG:
1. BOMBAY DYEING(354.55): THE STOCK HAS SOME NEWS OF LAND BANK SALE, MAY RISE IN THE SHORT TERM. GOOD DELIVERY BUY FOR THE TARGET OF 380-400+++++
2. IDEA (61.75): GOOD DELIVERY/ INTRADAY BUY FOR THE TARGET OF 65-67+++. KEEP STOP LOSS OF 56.
3. LIC HOUSING FINANCE(198.90): GOOD DELIVERY BUY FOR THE TARGET OF 220+ IN THE SHORT TERM AND 300 IN THE MEDIUM TERM. KEEP STOP LOSS OF 184
4. LUPIN(392.45): GOOD DELIVERY/ INTRADAY BUY FOR THE TARGET OF 400-408-420+++ IN THE SHORT TERM.KEEP STOP LOSS OF 380.
5. HDFC BANK(2181.50): GOOD DELIVERY BUY FOR THE TARGET OF 2220-2280+++. KEEP STOP LOSS OF 2140
6. INDIAN HOTEL(77.85): GOOD FOR DELIVERY BUYING AT CURRENT MARKET PRICE OR IN FALL FOR THE LONG TERM INVESTMENT TARGET OF 300++++++
FOR BEARS & GOING SHORT/SELL:( ONLY ON FALLING MARKETS OR WEAKNESS IN THE STOCK)
1. BANK OF INDIA(449.15): STOCK IS WEAK ON CHARTS AND COULD TEST 420 IN THE NEAR TERM. KEEP STOP LOSS OF 465
2. MARUTI(1165.10): STOCK MAY SHOW WEAKNESS AS YEN IS RISING AGAINST THE DOLLAR & THE RUPEE DUE TO JAPAN FACTOR. SHORT THE STOCK FOR THE TARGET OF 1100 OR LOWER WITH THE STOP LOSS OF 1210.
Safe Harbor
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.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
NIFTY HAS VERY NARROW RANGE OF TRADE BETWEEN (5400-5420) TO (5520-5535). BELOW 5420 SENTIMENT WILL BE VERY MURKY AND THERE WILL BE MORE DOWN SIDE OPEN TILL 5200. ABOVE 5550 SENTIMENT WILL BE BULLISH AND NIFTY MAY CROSS 5600 TO TOUCH 5700 ALSO. HENCE THE BROAD RANGE OF NIFTY IS 5200-5700.
THE BULLS ARGUMENT FOR GOING HIGHER FROM HERE:
1. THERE IS A CONTINUOUS INSTITUTIONAL BUYING BY BOTH FOREIGN & DOMESTIC.
2. MARKET BREADTH IS BROAD, WHICH MEANS THAT ENTIRE MARKET IS PARTICIPATING IN THE UP MOVE. HENCE THERE MAY BE A UP SIDE BREAK OUT.
3. THERE IS A SIGNIFICANT ADDITION IN THE OPEN INTEREST OF STOCK FUTURES.
THE BEARS ARGUMENT FOR GOING DOWN FROM HERE:
1. ONCE AGAIN THE COMMODITY PRICES LIKE COPPER ETC, HAVE STARTED RISING IN THE INTERNATIONAL MARKETS. CRUDE OIL HAVE STARTED TO TRADE AROUND $100 OR ABOVE WILL BE NEGATIVE FOR THE INDIAN MARKETS.
2. VOLUME IN THE CASH & DELIVERY MARKET IS VERY LOW, SHOWING THAT LACK OF INTEREST AND PARTICIPATION WITH CONFIDENCE, WHICH IS NOT GOOD FOR MARKETS TO RISE.
3. SITUATION IN THE JAPAN COULD WORSEN AND THERE MAY BE HEAVY REDEMPTION PRESSURE BY JAPANESE INVESTORS. SEE THE RISE IN JAPANESE YEN AGAINST THE DOLLAR.
ASTROLOGICALLY: AS ALREADY SAID THAT MARKETS WILL BE WEAK & POOR TO TRADE BETWEEN 7TH MARCH TO 18TH MARCH. SUPER MOON ON 19TH COULD CAUSE MORE NATURAL DISASTER IN DAYS TO COME. HENCE THERE WILL BE POOR SENTIMENT AND UNCERTAINTY LOOMING IN THE DIRECTION OF THE MARKET, WHICH WILL BE VERY NEGATIVE FOR THE MARKETS. THIS MAY PUSH INDIAN MARKETS TO NEW LOWS ANY TIME!!!!!!!
TODAY MARKETS COULD OPEN HIGHER DUE TO GLOBAL CUES BUT THE MARKETS SHALL BE IN THE RANGE OF 5420-5535 ONLY. ONE SHOULD BE CAUTIOUS IN CARRY OF HUGE TRADE BUT SHALL PARTICIPATE VERY LOW.
FOLLOWING STOCKS LOOKS GOOD TO TRADE AND WATCH FOR
FOR BULL & GOING LONG:
1. BOMBAY DYEING(354.55): THE STOCK HAS SOME NEWS OF LAND BANK SALE, MAY RISE IN THE SHORT TERM. GOOD DELIVERY BUY FOR THE TARGET OF 380-400+++++
2. IDEA (61.75): GOOD DELIVERY/ INTRADAY BUY FOR THE TARGET OF 65-67+++. KEEP STOP LOSS OF 56.
3. LIC HOUSING FINANCE(198.90): GOOD DELIVERY BUY FOR THE TARGET OF 220+ IN THE SHORT TERM AND 300 IN THE MEDIUM TERM. KEEP STOP LOSS OF 184
4. LUPIN(392.45): GOOD DELIVERY/ INTRADAY BUY FOR THE TARGET OF 400-408-420+++ IN THE SHORT TERM.KEEP STOP LOSS OF 380.
5. HDFC BANK(2181.50): GOOD DELIVERY BUY FOR THE TARGET OF 2220-2280+++. KEEP STOP LOSS OF 2140
6. INDIAN HOTEL(77.85): GOOD FOR DELIVERY BUYING AT CURRENT MARKET PRICE OR IN FALL FOR THE LONG TERM INVESTMENT TARGET OF 300++++++
FOR BEARS & GOING SHORT/SELL:( ONLY ON FALLING MARKETS OR WEAKNESS IN THE STOCK)
1. BANK OF INDIA(449.15): STOCK IS WEAK ON CHARTS AND COULD TEST 420 IN THE NEAR TERM. KEEP STOP LOSS OF 465
2. MARUTI(1165.10): STOCK MAY SHOW WEAKNESS AS YEN IS RISING AGAINST THE DOLLAR & THE RUPEE DUE TO JAPAN FACTOR. SHORT THE STOCK FOR THE TARGET OF 1100 OR LOWER WITH THE STOP LOSS OF 1210.
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.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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