MARKET VIEW FOR 4TH MARCH 2011

NIFTY OPENED WEAK RECOVERED ON NEWS OF LYBIA SETTLEMENT AND THEN AGAIN THERE WAS PROFIT BOOKING AT THE END OF THE DAY. HENCE MARKET IS IN A RANGE AND SUCCESSIVE CLOSING ABOVE 5550-5600 WILL NEGATE THE CURRENT DOWN TREND AND SHALL MOVE ABOVE TO 5690-5820-5900. HOWEVER IT WILL BE IMPORTANT TO KEEP IN MIND THAT THERE IS LOT OF SKEPTICISM AMONG THE FIIs ON HOW THE GOVERNMENT WILL TACKLE THE INFLATION, WHAT WILL HAPPEN TO THE INTEREST RATES, AND HOW WILL BE THE GROWTH PERFORMANCE BY THE INDIA INC BY NEXT TWO QUARTERS AS OIL HAS NOW BEEN TO $100 WHICH MAY INCREASE BY 20% TO 30% ON UNCERTAIN GLOBAL ENVIRONMENT. THIS MAY LEAD TO PRESSURES ON MARGINS AND THE BOTTOM LINE OF THE COMPANIES. HENCE THE EARNINGS DOWNGRADES, WHICH MAY COME ANY TIME, WILL LEAD TO FALL IN THE MARKETS AND THE RANGE FOR THE NIFTY WILL NOW BE 5650-5250.


ON THE HIGHER SIDE 5600-5650 ONE CAN BUY PUTs IN NIFTY SAY PE5600, PE 5500 & PE 5400 FOR BOOKING PROFITS AROUND 5250.


TODAY NIFTY MAY OPEN GREEN ON THE STRONG GLOBAL CUES AND IN AT LEAST FIRST HOUR NIFTY MAY EVEN TOUCH 5600-5630  AREA, FOLLOWED BY THE VOLATILE MOVES BY BULLS & BEARS & FINALLY PROFIT BOOKING AND LOWER CLOSING AT THE END.




1. DISH TV (61.80) SELL/SHORT FOR THE TARGET OF 56-52 IN A DAY OR TWO.


2.SBIN(2682.50):SELL/SHORT FOR THE SHORT TERM TARGET OF 2600-2540 IN A DAY OR TWO.


3.TVS MOTORS(55.15):LOOKS HOT TO BUY FOR RALLY TILL 60-63 IN A DAY OR TWO, ON MARKETS MOVING HIGHER.