MARKET VIEW FOR THE WEEK 21ST MAY 2012 TO 25TH MAY 2012

INDIAN MARKETS OUTPERFORMED THE MOST OF THE GLOBAL MARKETS, HOWEVER CLOSED ALMOST  0.75% LOWER ON THE WEEKLY BASIS IN BOTH NSE & BSE. NIFTY CLOSED AT 4891.45 & SENSEX CLOSED AT 16152.75. VALUE OF RUPEE SLID TO ALL TIME LOW TO MAKE A NEW HISTORY MAINLY DUE TO HUGE OIL IMPORTS. INFLATION FIGURE FOR APRIL 2012 WAS AT SHOCKING 7.23%, WHICH RAISED WORRIES ON FACES OF INVESTORS ABOUT THE FURTHER ACTION OF RBI ON RATE CUTS. GLOBAL WORRIES OVER THE EURO-ZONE CRISIS AND CURRENT A/C DEFICIT OF INDIA MADE THE INVESTORS NERVOUS.

AS EXPECTED NIFTY TOOK SUPPORT AROUND 4750-4800 LEVEL ZONE AND BOUNCED BACK HELPED BY BETTER THAN EXPECTED RESULTS OF SBI, WHICH LED ALL ROUND BUYING IN BANKING SECTOR. THE VALUE GENERATED DUE TO DECLINE IN CRUDE OIL PRICES INTERNATIONALLY  HAS BEEN ERASED OR OFF-SET BY FALL IN VALUE OF RUPEE. HENCE THERE IS NO CHEER DUE TO DECLINING CRUDE PRICES ON INDIAN STOCK MARKET. 

GOING FORWARD THE COMING WEEKS WILL BE VERY ACTION PACKED. GOVERNMENT & RBI BOTH MAY COME OUT WITH ACTIONS NEEDED TO CONTAIN THE FALL IN VALUE OF RUPEE. THIS MAY GIVE STABILITY TO VALUE OF RUPEE IN TERMS OF FOREX AND CONSEQUENTLY WE MAY SEE STABILITY IN STOCK MARKETS ALSO.

GLOBALLY DEVELOPMENTS IN EURO-ZONE AND GREECE MAY AFFECT THE SENTIMENTS.

I CONTINUE TO HOLD THE SAME VIEW -- MARKETS WILL GET STRONG SUPPORT AT 4800 LEVELS AS IT TRADES AT 12xFY13 EPS WHICH IS INEXPENSIVE. ALSO INFLATION MAY COOL AND GRADUALLY THE MONSOON PROGRESS WILL MAKE TYE MARKETS TO MOVE UP  FROM JUNE. HENCE I MAINTAIN BUY IN SELECT  STOCKS....

TECHNICALLY, THE DAILY CHART O NIFTY SHOW THAT IT HAS GIVEN A CORRECTION OF ALMOST 9.30% IN JUST 15 DAYS TIME SPAN. IT IS EXPECTED TO GET STRONG SUPPORT AT 4720. IF NIFTY BREACHES THIS LEVEL SHORT TERM TREND WILL BECOME NEGATIVE AND IT MAY FURTHER GO DOWN TO 4640. HOWEVER BREACH OF 4960 WOULD INDICATE THE REVERSAL OF CURRENT TREND AND IN THAT CASE NIFTY MAY TEST 5130 IN VERY SHORT TERM. HENCE TRADERS ARE ADVISED TO KEEP THE STOP-LOSS OF 4720 TO ALL LONG POSITIONS. INVESTORS ARE ADVISED TO BUY AND ADD MORE ON EVERY DIP FOR INVESTMENT PERSPECTIVE OF 12-18 MONTHS.

FOR THIS WEEK: NO TRADING ZONE FOR THE NIFTY IS 4770-4960.

BUY CE5000 & CE 5100 IF NIFTY MOVES ABOVE 4960 KEEPING STOP-LOSS OF 4770 FOR THE TARGET OF 5040-5130

BUY PE4800 & PE4700 IF NIFTY MOVES BELOW 4770 KEEPING THE STOP-LOSS OF 4960 FOR THE TARGET OF 4720-4640.

I HAVE POSITIVE VIEW ON THE FOLLOWING STOCKS FOR INVESTMENT (12-18 MONTHS):

1. DELTA CORP (62.60): BUY FOR THE TARGET OF 150+++

2. ZEE LEARN (18.75): BUY FOR THE TARGET OF 200+++( A VERY GOOD BUY FOR ALL)

3. CERA SANTIARY (249.85): BUY FOR THE TARGET OF 1000++

4. LOVABLE (311.05): BUY FOR THE TARGET OF 2000+++

JUST BUY THE SHARES IN DELIVERY AND ADD ON EVERY FALL

ASTROLOGICALLY: MARKETS WILL BE POSITIVE AFTER THE 3RD JUNE 2012. PLANETS WILL FAVOR BULLS IN JUNE SERIES........

ENJOY!!!!!!!!!!!!!!!!

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.