Indian Markets ended the previous week on a volatile note among the various news flow like huge petrol price hike, developments in the Euro Zone, falling value of rupee being the main. Sensex ended at 16217.82 & Nifty at 4920.40 on 0.5% hike on weekly basis.
Going forward Indian markets are likely to remain volatile because of global cues, uncertainties in Euro-Zone regarding Greece, absence of any positive domestic trigger and policy paralysis on the part of government.
Government may soon take decision on roll back on petrol price hike, F&O Settlement on 31st May, GDP Figure of India for Q4FY11-12 on 31st May are the main very short term factors which should be watched for.
Its important to note that the volatility in the value of rupee shall come to settle only after the Greece issue is resolved which could be any time after the second elections on 17th June and the monsoon reports which will start trickling in from the June first week, which will decide the future course of market in June series.
As valuation wise Nifty is trading around 12xFY13 EPS which is cheap and hence augurs the buying around these levels of Nifty 4800. As inflation, crude and dollar will cool down in near term and RBI may go on with more rate cuts in future, markets will anticipate this and give a bullish rally breakout till 5650-5800++ in near term.
Hence I recommend to shut down all TV Channels, websites and tip providers and start buying the select stocks........
Nifty is consolidating in the range of 5040 and 4790 and it is expected the it will continue to remain in the same range for some time. If nifty is able to remain and close above 5040 it may test 5130. However breach of 4790 shall bring a fall in Nifty till 4720 and then 4640 in the extreme short term. Hence traders should maintain the stop loss of 4770 for long positions.
FOR THIS WEEK: No trading zone for Nifty is 4880-4960.
Buy CE4900 & CE5000 if Nifty breaks above 4960 for the target of 5040-5130
Buy PE4900 & PE4800 if Nifty breaks below 4880 for the target of 4790-4720.
TRADING TIPS OF THE WEEK:
1. TATA STEEL(408.60): Buy for the target of 430-444 buy next 14-15 days.
2. CAN BANK(396): Buy for the target of 407-419 by next 14-15 days.
Astrologically: Markets are likely to take up trend from the 2nd week of June series. No Panic and no worries soon we will see rise..................
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.
Disclaimer:
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.
Going forward Indian markets are likely to remain volatile because of global cues, uncertainties in Euro-Zone regarding Greece, absence of any positive domestic trigger and policy paralysis on the part of government.
Government may soon take decision on roll back on petrol price hike, F&O Settlement on 31st May, GDP Figure of India for Q4FY11-12 on 31st May are the main very short term factors which should be watched for.
Its important to note that the volatility in the value of rupee shall come to settle only after the Greece issue is resolved which could be any time after the second elections on 17th June and the monsoon reports which will start trickling in from the June first week, which will decide the future course of market in June series.
As valuation wise Nifty is trading around 12xFY13 EPS which is cheap and hence augurs the buying around these levels of Nifty 4800. As inflation, crude and dollar will cool down in near term and RBI may go on with more rate cuts in future, markets will anticipate this and give a bullish rally breakout till 5650-5800++ in near term.
Hence I recommend to shut down all TV Channels, websites and tip providers and start buying the select stocks........
Nifty is consolidating in the range of 5040 and 4790 and it is expected the it will continue to remain in the same range for some time. If nifty is able to remain and close above 5040 it may test 5130. However breach of 4790 shall bring a fall in Nifty till 4720 and then 4640 in the extreme short term. Hence traders should maintain the stop loss of 4770 for long positions.
FOR THIS WEEK: No trading zone for Nifty is 4880-4960.
Buy CE4900 & CE5000 if Nifty breaks above 4960 for the target of 5040-5130
Buy PE4900 & PE4800 if Nifty breaks below 4880 for the target of 4790-4720.
TRADING TIPS OF THE WEEK:
1. TATA STEEL(408.60): Buy for the target of 430-444 buy next 14-15 days.
2. CAN BANK(396): Buy for the target of 407-419 by next 14-15 days.
Astrologically: Markets are likely to take up trend from the 2nd week of June series. No Panic and no worries soon we will see rise..................
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.
Disclaimer:
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.
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