MARKET OUTLOOK FOR THE WEEK 4TH JULY TO 8TH JULY 2011

AFTER THE GAP UP OPENING ON FRIDAY INDIAN MARKET FACED SOME PROFIT BOOKING,HOWEVER NIFTY MANAGED TO SUSTAIN ABOVE 5600 PSYCHOLOGICAL LEVEL. THE SENSEX CLOSED AT 18763, DOWN 83 POINTS FROM ITS PREVIOUS CLOSE AND NIFTY CLOSED AT 5627 DOWN 20 POINTS. MARKET BREADTH WAS POSITIVE AND BOTH MID-CAP & SMALL-CAP INDEX WAS UP MORE THAN 0.7%.


FUNDAMENTALLY, INDIAN STOCK MARKET SURGED TO ITS HIGHEST LEVEL IN MORE THAN 8 WEEKS ON AGGRESSIVE BUYING BUY FIIs AND EASING OF GREECE'S DEBT WORRIES.GOVERNMENT HINTED AT GETTING ON WITH THE KEY REFORMS WITH A BELATED FUEL PRICE HIKE.A STRING OF ENCOURAGING ECONOMIC STATISTICS LIKE DROP IN FOOD INFLATION, CONTRACTION IN CURRENT A/C DEFICIT AND IMPROVEMENT IN CORE SECTOR GROWTH ADDED FUEL TO THE FIRE.GOING FORWARD,THE TREND IS LIKELY TO REMAIN UPBEAT, ESPECIALLY IF FII INFLOWS REMAIN HEALTHY AND CORPORATE EARNINGS ARE SOLID.MARKETS WILL TRADE IN A BROAD RANGE OF 5550-5750,IN THIS WEEK.BEFORE THE START OF THE Q1 EARNING NUMBERS MARKET MAY TAKE CUES FROM PROGRESS OF MONSOON,EXPECTED DECLINE IN THE COMMODITY PRICES DUE TO END OF QE2 AND MONTHLY NUMBERS OF STEEL,CEMENT,AUTO SALES. ACC & M&M HAVE ANNOUNCED MARGINALLY BETTER NUMBERS THAN ITS PEERS. 


TECHNICALLY,THE BROAD RANGE FOR THE NIFTY IN THIS WEEK SHALL BE 5550-5750. IF NIFTY MANAGES TO MOVE ABOVE 5751 NIFTY MAY FACE RESISTANCE AT 5800 & 5885 ON THE OTHER HAND BELOW 5550 NIFTY MAY FIND SUPPORT 5495 & 5435.THE SHORT TERM & MEDIUM TERM TREND OF THE MARKET IS UP BUT THE LONG TERM TREND IF THE MARKET IS DOWN, WHICH WILL TURN UP ONLY ABOVE 5929-5935,HENCE IN SHORT TERM THE CURRENT RALLY MAY MOVE UP TO 5929-5935 ZONE BUT THE WEEK WILL BE VERY VOLATILE AS THE NIFTY IS OVERBOUGHT CORRECTION TO 5470 CAN NOT BE RULED OUT.


FOLLOWING STOCKS ARE GOOD TO BUY IN DELIVERY FOR 1-2 MONTHS HOLD VIEW:


1. NDMC(264.00): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 250 AS STOP LOSS IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 280-300.


2. DLF(220.30): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 207 AS STOP LOSS IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 240++


3. MAHINDRA SATYAM(84.70): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 82 AS STOP LOSS(CLOSING BASIS) IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 90-94++


4. PFC(184.05): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 176 AS STOP LOSS IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 200+++


5. SAIL(138.30): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 135 AS STOP LOSS IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 148+++


6. 3I INFO(47.00): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 46 AS STOP LOSS IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 50-54++++


7. DEWAN HOUSING FIN(222.60): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 205 AS STOP LOSS(CLOSING BASIS) IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 255-270


8. LIC HOUSING FIN (FUT)(237.00): BUY THIS STOCK ON DIPS KEEPING 230 AS STOP LOSS , THE STOCK MAY MOVE UP TO 245-250+++


9. GMDC (FUT)(156.50): BUY THIS STOCK ON DIPS KEEPING 152 AS STOP LOSS, THE STOCK MAY MOVE UP TO 165-170++


10. ENGINEER'S INDIA(278.20): BUY THIS STOCK IN SHORT TERM DELIVERY KEEPING 265 AS STOP LOSS (CLOSING BASIS)IN TRADING PORTFOLIO, THE STOCK MAY MOVE UP TO 300-315++++


NEWS DRIVEN STOCKS:


1. ASAHI SONGWON(108.40): Stock may rise up to 120-125+++


2. DHANLAKSHMI BANK(115.00): Stock may rise up to 140++. Very positive bias for the stock in the short term on some good news flow.


3. HANUG TOYS(152.00): Stock has seen huge rise in volumes in last two weeks. There is a rumor that company has to come up with GDR issue, which may spurt the price of the stock in the short term, to say 180++++


4. STERLITE TECHNO(53.00): The company is trading around the bottom prices, which may rise sson asfter the Q1 numbers. Buy in short as well as long term portfolio. The Stock may move to 61+++ in short term.


5.JMC PROJECTS(155.95):The Stock may see an up ward movement to 170+++ on some positive news flow.


ASTROLOGICALLY: This week may start on some positive moves on the up side on Monday(4th July,2011), but Tuesday and Wednesday shall shall see some selling pressure and market may close in negative on these two days(5th & 6th July, 2011). From 7th the upward journey may resume and may continue to 8th also. I.T. Stocks will see rise in this week(on market rise), while banking Stocks to remain weak(on market fall).PSU Banks more weak than Private Banks. Automobile and Metals will see buying on 7th & 8th.
Overall a stock specific week.

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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