CREDIT POLICY BY RBI & MARKET VIEW FOR 16TH JUNE 2011

AS EXPECTED THE MARKET STARTED TO SHOW THE SIGNS OF WEAKNESS AHEAD OF CREDIT POLICY & WEAK GLOBAL CUES.

NOW TODAY IS THE TREND DECIDING DAY, MARKET HAS PRICED IN 25bps HIKE IN REPO & REVERSE REPO RATE, ANY THING TO THIS EFFECT WILL HAVE NO MAJOR BEARING ON THE MARKETS AND THE RANGE BOUND TRADE WILL CONTINUE, HOWEVER ANY THING MORE THAN THAT(i.e., 50bps HIKE,OR HIKE IN CRR OR A HAWKISH KIND OF LANGUAGE AND INABILITY TO CONTROL INFLATION) WILL CREATE PANIC IN THE MARKET AND NIFTY MAY TAKE TOLL BELOW 5350-5300.ELSE NIFTY MAY RECOVER AFTER THE LOSSES, BEFORE OR ON ANNOUNCEMENT OF CREDIT POLICY. IF THE POLICY IS IN EXPECTED LINES THEN MARKET WILL TAKE GLOBAL CUES AND REACT TO IT.AMERICA CLOSED EXTREMELY WEAK IS ALSO BAD FOR INDIAN MARKETS BROADLY.ON THE HIGHER SIDE 5550-5600 WILL REMAIN HE RESISTANCE.

AS THE LONG TERM AND INTERMEDIATE TREND IS DOWN MAKETS SHOULD TECHNICALLY GO LOWER & LOWER FROM HERE, HOWEVER THIS SHOULD BE KEPT IN THE MIND THAT ONE CAN NEVER CATCH THE BOTTOM.MARKET AT ANY TIME MAY GET BUYING AND TECHNICALS WILL FAIL TO PROVE THAT. HENCE ALL THE READERS ARE SUGGESTED TO KEEP ON BUYING THE QUALITY STOCKS ON ANY DEEP CUT AND FALL IN A PHASED MANNER OR STAGGERED BUYING COULD BE DONE ON QUALITY MIDCAP STOCKS.

ASTROLOGICALLY THERE WILL BE A FALL IN INDICES IN GLOBAL AS WELL AS INDIAN MARKETS FROM THE DAY OF LUNAR ECLIPSE(15TH JUNE 2011), WHICH MAY CONTINUE TILL 1ST JULY 2011 WITH SOME SHARP SHORT COVERNGS AND SPIKES.THEREAFTER CONSOIDATING IN JULY THERE WILL BE A SHORT TERM SHARP RALLY FROM AUGUST 2011

FOLLOWING STOCKS SHOULD BE LOOKED FOR BUYING FOR 3-4 MONTHS PROSPECTIVE AS THEY ARE NOT AFFECTED BY INFLATION & INTEREST RATE:

1.SKUMAR NATION(66.20): READY FOR DECENT UP MOVE VERY SHORTLY. JUST BUY THIS IN FUTURE.KEEP STOP LOSS OF 56 HOLD FOR TARGET OF 88-94+++.EVERY ONE MUST BUY JULY FUTURE OR IN DELIVERY.

2.PIRAMAL GLASS(133.25): BUY FOR A VERY SHORT TERM TARGET OF 155++. EVEN A LONG TERM CALL ON THIS STOCK IS VERY BULLISH.

3.PATNI(357.70): BUY THIS STOCK FOR DECENT GAINS AS IT HAS DE-LISTING NEWS ON CARDS. THE STOCK COULD GIVE DECENT UP MOVE FROM HERE.IT MAY TAKE 3-4 MONTHS TIME.

4.SAINT GOBAIN(42.70):THIS STOCK IS CONSISTENTLY MOVING UP FOR HUGE GAINS TILL 55-60 LEVELS. HOLD TIS STOCK FOR 3-4 MONTHS. YOU COULD GAIN 30% TO 45% IN DELIVERY IRRESPECTIVE OF MARKET.

5.KENNAMETAL IND(670.75): THIS STOCK HAS HUGE POTENTIAL TO MOVE TO 1000++ VERY SOON ON SOME NEWS FLOW.BUY THIS STOCK ON EVERY DEEP CUT.

KTKBANK(121.70):BUY THIS STOCK FOR DECNT UPSIDE MOVE OF 15% TO 20% FROM CMP BY NEXT 30-45 DAYS.

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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