MARKET VIEW FOR 23RD MARCH 2011

TRIGGERED BY  STRONG GLOBAL CUES MARKET WITNESSED A STRONG RALLY. NIFTY GAINED 49.10 POINTS TO CLOSE AT 5413.85 AND SENSEX WENT UP 149.25 POINTS TO SETTLE AT 17988.30. SECTORS LIKE OIL & GAS, INFRASTRUCTURE, AUTO, REALITY, METAL, TELECOM AND SELECT FINANCIAL COMPANIES PARTICIPATED IN THE RALLY.


THE DAY WAS MARKED WITH MAJOR EVENT OF WARRANT BUFFET COMING TO INDIA WITH HIS INVESTMENT PLANS FOUND INDIA TO BE LOGICAL INVESTMENT DESTINATION. GST BILL AND BANKING AMENDMEND BILL WAS PRESENTED IN THE LOK SABHA AND THE FINANCE BILL 2011 WAS PASSED, WITH SOME CRUCIAL CHANGES LIKE:


1. REDUCING DIVIDEND DISTRIBUTION TAX (DDT) THRESHOLD FOR FOREIGN COMPANIES TO 26%.
2. CUT IN EXCISE DUTY DUTY FOR COMPLETELY KNOCKED DOWN (CKD) AUTOMOBILE KITS TO 30% FROM THE PROPOSED 60%. EFFECT WILL BE POSITIVE FOR MARUTI AND M&M.
3. REMOVAL OF 5% TAX ON HEALTH SERVICES, DUR TO WIDESPREAD DEMAND TO WITHDRAW THE PROPOSAL. EFFECT WILL BE POSITIVE FOR FORTIS, WOCKHARDT, APPOLO HOSPITAL ETC.
4. ON THE BASIC 10% LEVY ON READYMADE GARMENTS, RELIEF WAS GIVEN IN THE FORM OF INCREASING THE TURNOVER BASED ABATEMENT FROM 40% TO 55%. ALSO IMPORT DUTY ON RAW SILK WAS FROM 30% TO 5% TO PUSH IMPORTS. ITS MAY NOT CHEER UP THE TEXTILE INDUSTRY, WHO ARE PROTESTING FOR LAST 22 DAYS FOR ROLL BACK THE DUTY COMPLETELY.PANTALOON RETAIL, TRENT MAY SEE SOME MOVEMENTS.
5. SEVEN COMPUTER PARTS WOULD BE EXEMPT FROM CUSTOMS DUTY. WILL BE GOOD FOR HCL COMPUTERS, & 
6. IMPORTED COOKING COAL WOULD BE EXEMPT FROM CUSTOMS DUTY. COAL INDIA SAW BUYING INTEREST TODAY.




ANALYSTS BELIEVE THAT THE CURRENT UPSWING MAY NOT SUSTAIN AT THE HIGHER LEVEL AND MARKET WILL GRADUALLY DRIFT TO NEW LOWS SOONER OR LATER. HENCE THE BUYING OPPORTUNITY SHALL BE THERE AT THE SHARP CORRECTION WHICH MIGHT GET TRIGGERED AT ANY TIME ON BAD NEWS FLOW. 5600 SHALL BE VERY STIFF RESISTANCE AND 5300 AS A STRONG SUPPORT. NIFTY THOUGH MAY REMAIN RANGE BOUND IS LIKELY TO BREAK ON THE LOWER SIDE TO MAKE NEW LOWS, 5100 OR EVEN 4800. HENCE WAIT AND WATCH FOR NEXT FEW WEEKS & MONTHS MAY GIVE GOOD BUYING OPPORTUNITY ELSE ONE SHOULD CONSIDER BUYING ONLY WHEN NIFTY MANAGES TO MOVE ABOVE 5600-5650 DECISIVELY.SUGAR STOCKS MIGHT SEE SOME RALLY IN DAYS TO COME AS EGoM HAS ALLOWED EXPORT OF 5 LAKH TONNES OF SUGAR.


FOLLOWING STOCKS LOOKS GOOD TO WATCH & TRADE FOR FUTURE/DELIVERY BASIS:


1. INDUSIND BANK(244.20): BUY THIS STOCK KEEPING THE VIEW OF SETTLEMENT DATE 31ST MARCH TARGET OF Rs.253++ WITH A STOP LOSS OF Rs.240


2. SAIL(161.65): BUY THIS STOCK KEEPING THE VIEW OF SETTLEMENT DATE 31ST MARCH TARGET OF Rs.166++ WITH A STOP LOSS OF Rs.158


3. PIRAMAL HEALTH (471.50): BUY THIS STOCK KEEPING THE VIEW OF SETTLEMENT DATE 31ST MARCH TARGET OF Rs.490 ++ WITH A STOP LOSS OF Rs.458.00


4. ESCORTS(143.00): BUY THIS STOCK KEEPING THE VIEW OF SETTLEMENT DATE 31ST MARCH TARGET OF Rs.150++ WITH A STOP LOSS OF Rs.138.00


5. TIMKEN INDIA(162.60): BUY THIS STOCK IN DELIVERY FOR 30-45 DAYS AS THERE WILL BE NEWS OF BUY BACK BY THE PROMOTERS. STOCK COULD MOVE TO 185+++


6. PIPAVAV SHIPYARD(79.20): BUY THIS STOCK IN DELIVERY FOR 30-45 DAYS AS IL&FS HAS ACQUIRED 7.7% STAKE IN IT. STOCK COULD REACH ABOVE TRIPLE DIGIT (100+++) BY NEXT 45-60 DAYS. VERY +++++++++VE STOCK FOR SHORT TERM. MUST BUY


   
FOLLOWING STOCKS LOOK WEAK FOR NEAR TERM:


1. KIRI DYES(278.50): STOCK MAY CORRECT TO 260-255 IN THE NEAR TERM. ONE CAN  SHORT ON INTRA DAY BASIS AS IT HAS NEGATIVE BIAS.


2. SKS MICRO(565.00): STOCK MAY CORRECT TO 530-520 IN THE NEAR TERM. ONE CAN  SHORT ON INTRA DAY BASIS AS IT HAS NEGATIVE BIAS.


3.INFOSYS TECH(2947.00) STOCK MAY CORRECT TO 2870 TILL SETTLEMENT DATE IN THE SHORT TERM. ONE CAN SHORT IN FUTURE WITH STOP LOSS OF 3010. STOCK HAS NEGATIVE BIAS.