MARKET VIEW FOR THE WEEK 16TH APRIL 2012 TO 20TH APRIL 2012

WEAK RESULT & POOR GUIDANCE BY INFOSYS, INDICATIONS OF TSUNAMI IN INDIA DUE TO EARTHQUAKE IN INDONESIA, DISAPPOINTING IIP DATA AND WEAK GLOBAL CUES LED TO THE INDIAN EQUITY MARKETS TO END ON THE LOWER NOTE IN SECOND CONSECUTIVE WEEK. SENSEX & NIFTY CLOSED ALMOST 2% LOWER ON WEEKLY BASIS AT 17094.51 & 5207.45 RESPECTIVELY. BSE MID-CAP & SMALL-CAP INDEX ALSO FELL ALMOST 2% LOWER.

AS ALREADY MENTIONED IN THE PAST WEEK THAT MARKETS WILL HOLD THE KEY LEVEL SUPPORT AND TRADE IN A TIGHT RANGE AHEAD OF RBI MONETARY POLICY  SCHEDULED ON 17TH APRIL.

AN IMPORTANT WPI INFLATION DATA ON 16TH APRIL AND RBI POLICY ACTION ON 17TH APRIL WILL NOW DECIDE THE FATE OF THE MARKET IN VERY SHORT TERM, SAY FOR A WEEK. IF RBI COMES ONLY WITH THE CRR CUT, Chance of which is high, THEN THERE WILL BE LITTLE EASE IN THE BANKING SECTOR AND WE COULD SEE A MOMENTUM COVERING, HOWEVER ANY CUT IN INTEREST RATE (Repo or Reverse Repo) COULD LEAD TO A SHARP RALLY ON BOURSES, WHICH COULD LEAD NIFTY TO 5650++ LEVELS. KEEP CLOSE EYE ON MOVEMENT OF INTEREST RATE SENSITIVE SECTORS LIKE BANKING AND REALITY.  

RESULTS OF MAJOR COMPANIES LIKE RIL, HDFC BANK, CAIRN, JINDAL POWER, ACC WILL KEEP THE MARKETS VERY VERY VOLATILE.

IN CONCLUSION THE KEY EVENT TO WATCH ARE INFLATION FIGURES & MONETARY POLICY....... KEEP CLOSE EYE ON IT.............. TO GET THE FUTURE OUTLOOK OF THE MARKET.........

NOTE THE LEVELS VERY CAREFULLY , 5130 & 5330. IF NIFTY CLOSES BELOW 5130 NIFTY MAY COLLAPSE TO 4970-4950 ON THE OTHER SIDE A CLOSE ABOVE 5330 WILL TAKE NIFTY TO 5400 & 5510 IN THE VERY SHORT TERM. HENCE ITS RECOMMENDED TO BUY AND KEEP SHORT TERM LONG POSITIONS WITH A STRICT STOP-LOSS OF 5130.

FOR THIS WEEK:  NO TRADING RANGE FOR THE MARKET IS 5130 AND 5270. NOTE THAT IN THIS RANGE NIFTY WILL BE VERY VOLATILE & UNCERTAIN, HENCE THOSE WHO TRADE WILL CERTAINLY LOOSE MONEY.

Every day I reply hundreds of queries on Nifty direction and I tell every one to check the No- Trading Range(NTR) before asking. Please don't ask me the same repeated question without fully reading the blog........

BUY CE5300 & CE5400 IF NIFTY MOVES ABOVE 5270 , KEEPING STOP-LOSS OF 5130 FOR THE TARGET OF 5330 & 5400

BUY PE5100 & PE5000 IF NIFTY SUSTAINS BELOW 5130, KEEPING STOP-LOSS OF 5270 FOR THE TARGET OF 5050 & 4970.

NOTE: ALL NIFTY TRADERS ARE ADVISED TO STRICTLY FOLLOW THE ABOVE POINTS AND SAVE THEM SELVES FROM A BIASED TRADES....


FOLLOWING STOCKS LOOK GOOD TO INVEST (DELIVERY ONLY) FOR THE SHORT TERM OF 45-60 DAYS HOLDING: 




1. GRAPHITE(92.60): BUY AND ADD ON THE DIP FOR THE TARGETS OF 98-110-126+++++


2. HONEYWELL AUTO(2991.25):BUY AND ADD ON THE DIP FOR THE TARGETS OF 3200-3400++++

3. PIRAMAL CLASS(111.80):BUY AND ADD ON THE DIP FOR THE TARGETS OF  

4.RALLIS(128.30):BUY AND ADD ON THE DIP FOR THE TARGETS OF 136-141++++( MUST BUY) 

5. SAINT GOBAIN(51.00):BUY AND ADD ON THE DIP FOR THE TARGETS OF 55-60-65+++

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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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.