MARKET VIEW FOR 24TH AUGUST 2011

AFTER POSITIVE OPENING, MARKET MOVED INTO THE NEGATIVE ZONE AND LACKLUSTER TRADE WAS SEEN, HOWEVER MARKET RECOVERED SHARPLY IN AFTERNOON ON THE BACK OF BUYING IN TECHNOLOGY & CAPITAL GOODS. POSITIVE GLOBAL CUES WERE SUPPORTIVE TO THE MARKET. NIFTY CLOSED AT 4948.90 UP BY 50.10 POINTS AND SENSEX ENDED AT 16498.47 UP BY 156.77. BOTH MID-CAP & SMALL-CAP INDEX WERE UP BY MORE THAN 1%. MARKET BREADTH WAS POSITIVE AND FIIs WERE NET SELLERS HOWEVER DIIs WERE NET BUYERS.


AS SAID EARLIER THE U.S ECONOMIC POLICY SYMPOSIUM ON 26TH AUGUST 2011 WILL BE THE NEXT MAJOR EVENT TO GOVERN THE DIRECTION OF THE MARKETS AROUND THE WORLD & DOMESTIC INSTABILITY RAISED BY SRI ANNA HAZARE MOVEMENT SHALL BE THE FOCUS. TILL THEN THE MARKET SHALL REMAIN RANGE BOUND WITH DOWN TREND BUT POSITIVE 
BIAS.


DUE TO SETTLEMENT OF THE AUGUST SERIES ON 25TH AUGUST, ITS VERY IMPORTANT TO SEE THAT HOW MUCH ROLL-OVER IS SEEN IN THESE TWO DAYS. IF THERE IS COMPLETE ROLL-OVER (OF HUGE SHORT POSITIONS IN BANKING & I.T. SECTOR SHARES), THEN THERE WILL BE HIGHER RISK OF MARKET SLIPPING DOWN TO 4800 AND EVENTUALLY TO 4600 IN SEPTEMBER SERIES. ON THE OTHER HAND IF THE ROLL-OVER IS LOW, IT MEANS THAT SHORT POSITIONS IN THE AUGUST SERIES HAVE BEEN COVERED AND FRESH SHORT POSITIONS IN SEPTEMBER SERIES IS NOT BEEN INITIATED.


THE OTHER CLUE TO LOOK THAT WHAT WILL BE THE SEPTEMBER SERIES START IS THAT:
IF NIFTY SETTLES AT 4800 OR BELOW, IT MEANS THAT SHORT POSITIONS IN AUGUST SERIES HAVE BEEN COVERED TILL 4965.80 LEVELS(HIGHEST LEVEL OF YESTERDAY) AND FRESH SHORTS IN SEPTEMBER SERIES HAVE BEEN CREATED OR ROLLED-OVER, BROUGHT THE MARKET DOWN ON SETTLEMENT DATE BELOW 4800. HENCE IN SUCH A CASE NIFTY COLD TEST 4600 OR BELOW.
IF NIFTY SETTLES AT 5000 OR ABOVE, IT MEANS THAT SHORTS IN AUGUST SERIES HAVE BEEN COVERED TILL 5000 OR ABOVE (BUT NOT AT 4800 OR BELOW) AND FRESH SHORTS IN THE SEPTEMBER SERIES HAVE NOT BEEN CREATED OR ROLLED-OVER. HENCE IN SUCH A CASE NIFTY COULD TEST 5100-5200 LEVELS ALSO.


TO CONCLUDE IF NIFTY SETTLEMENT TAKES PLACE AT 5000 OR ABOVE THEN NIFTY MAY TEST 5100-5200 ALSO AND WE SHALL BE BUYING CALLS(CE5000 & CE5100), BUT IF NIFTY SETTLEMENT TAKES PLACE AT 4800 OR BELOW THEN WE SHALL BE BUYING PUTS(PE4800 & PE4700).


FOR TODAY: NIFTY HAS SUPPORT AROUND 4900-4910 AND RESISTANCE AROUND 4980-5000. IF NIFTY BREAKS BELOW 4900 THEN IT MAY TEST 4870 & 4830. HOWEVER ON THE HIGHER SIDE IF NIFTY BREAKS ABOVE 4980 THEN 5020 & 5080 MAY BE TESTED. NIFTY WILL BE VOLATILE  AND STOCK ADJUSTMENT WILL TAKE PLACE AHEAD OF SETTLEMENT 
TOMORROW.


FOLLOWING ARE SOME STOCK FUTURE IDEAS:


1.CENTURY TEXT FUT: BUY ABOVE 296.50 SL 290.50 TARGET 303-306.


2.RELINFRA FUT: BUY ABOVE 459.50 SL 448 TARGET 470-480.


3.BHEL FUT: BUY ABOVE 1767 SL 1753 TARGET 1790-1800


4.TATAMOTOR FUT: BUY ABOVE 725 SL 695 TAGRET 790-800


5.AXIS BANK CE1100: BUY AROUND 7-8 TARGET 20+++

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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