CAUTIOUS MARKET OUTLOOK: 11TH MAY 2011

FOR LAST FEW DAYS AN ATTEMPT HAS BEEN MADE TO BRING FORWARD THE POSSIBLE RISKS AND REWARDS TO THE MARKET GOING FORWARD. I HAVE RECEIVED SEVERAL CALLS FROM MY MEMBERS WHO HAVE APPRECIATED THE WAY THINGS HAVE BEEN PUT HERE IN TEACH YOUR SELF STYLE. I SHALL TRY TO BRING THE MOST VALUABLE INFORMATION AND VIEWS OF VARIOUS ANALYSTS, WHO HAVE EXPERTISE AND THE CONCLUSIVE VIEWS. THANKS TO THE MEMBERS FOR THEIR CO-OPERATION.

THE MACRO HEADWINDS AND THE GLOBAL CHALLENGES HAVE BROUGHT CROSSROADS FOR INDIAN MARKETS. OPTIONS AND MARKET DATA SHOW THAT IT MAY CONSOLIDATE IN THE TIGHT RANGE 5480-5630. BREAK ON THE EITHER SIDE SHALL BRING THE MOVE OF AT LEAST 200 POINTS. THE CHANCES ARE MORE THAT MARKET WILL GO DOWN FROM HERE, PROBABLY 5350-5250 AS THE BIAS OF THE MARKET IS DOWN ANALYSTS BELIEVE THAT MARKET WILL GRADUALLY DRIFT DOWN TO 5000 LEVELS IN NIFTY AFTER SOME POLICY ANNOUNCEMENT, OIL PRICE SHOCKS, GEO POLITICAL INSTABILITY, INFLATION FIGURES, IIP FIGURES AND MONSOON CONDITIONS  DURING EFFLUX OF TIME MAY BE BY JUNE/JULY OR EARLIER. AFTER THE HIKE IN INTEREST RATE AND EARNINGS CONTRACTION, SENSEX MAY TEST 15000 AND NIFTY 5000 ANY TIME. HENCE DON'T LEVERAGE YOUR PORTFOLIO AND CASH SHOULD HAVE 70% SHARE IN IT.

FOLLOWING STOCKS ARE BEST TO ACCUMULATE ON STEEP FALL & DIPS:



SKUMAR NATION

ARVIND

ALOK

TIMKEN

COAL INDIA

PIRAMAL GLASS

CAMLIN

INGERSOLL RAND

ORCHID

CANFIN HOME

LIC HOUSING FINANCE

OBEROI REALITY

SURAJ DIAMOND

V-GUARD

VIP

RELIANCE IND

ITC

HUL

LUPIN

CIPLA

NO FRESH DELIVERY IS SUGGESTED, INTRA-DAY TRADE SHALL BE THE BEST PLAY FOR THE DAY TRADERS AND SPECULATORS AFTER CONSULTATION FROM THEIR FINANCIAL ADVISORS.

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.

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.