MARKET VIEW FOR THE WEEK 4TH JUNE 2012 TO 8TH JUNE 2012

EVEN AFTER THE NEGATIVE DOMESTIC & GLOBAL CUES, POOR GDP NUMBERS, FEARS OF FURTHER DEEPENING OF EURO ZONE CRISIS, NIFTY TOOK SUPPORT OF 4800 AND FAILED TO TAKE A SHARP KNOCK. SENSEX ENDED AT 15965.16 & NIFTY AT 4841.60 DOWN ALMOST 1.50%.


GOING FORWARD THE POOR GDP NUMBERS MAY PROPEL THE RBI TO CUT THE RATES FURTHER. ALSO THE FALLING CRUDE PRICES MAY ALSO LEAD TO THE LOWERING OF INFLATION AND ON EXPECTATION OF AVERAGE TO GOOD MONSOON MAY LEAD TO BOOST THE SENTIMENTS.
THE FURTHER WEAKENING OF THE INDIAN RUPEE MAY BE CHECKED BY THE AGGRESSIVE INTERVENTION OF RBI. HENCE I MAINTAIN MY VIEW THAT NIFTY MAY TAKE STRONG SUPPORT AT 4800 LEVELS AT WHICH IT TRADES AT 12xFY13, WHICH IS INEXPENSIVE. ANY GLOBAL CONTINGENCY OR SHOCKING NEWS, ESPECIALLY ON EURO-ZONE CRISIS MAY WEAKEN THE SENTIMENTS FURTHER BELOW 4800 BUT FOR VERY SHORT TERM GIVING AN OPPORTUNITY TO BUY AT THE LOWER LEVELS.
BUYING OF QUALITY STOCKS LIKE HIND UNILEVER, ITC, SBI, AXIS BANK, 


FOR LAST 18 TRADING SESSIONS NIFTY HAS BEEN CONSOLIDATING IN THE RANGE OF 4790-5020. NOW THE IMMEDIATE CRUCIAL SUPPORT OF THE NIFTY IS 4770, BREAK ON WHICH NIFTY SHALL TEST 4720 & 4660. ON THE HIGHER SIDE BREACH OF 5040 MAY INDICATE TREND REVERSAL OF CURRENT TREND AND THEN NIFTY COULD ALSO TEST 5130-5250. HENCE ALL TRADERS ARE ADVISED TO KEEP A STRICT STOP-LOSS OF 4770 TO ALL LONG POSITIONS.


FOR THIS WEEK: NO TRADING ZONE FOR THE NIFTY IS 4770-4910.
BUY NIFTY CALL(CE4900 & CE5000) IF NIFTY SUSTAINS ABOVE 4910 FOR THE IMMEDIATE TARGET OF 4960-5040 KEEPING STOP-LOSS OF 4770.
BUY NIFTY PUT(PE4800 & PE4700) IF NIFTY BREAKS BELOW 4770 FOR THE IMMEDIATE TARGET OF 4720-4640 KEEPING STOP-LOSS OF 4910.


FOLLOWING STOCKS SHOULD BE BOUGHT IN DELIVERY FOR 45-60 DAYS HOLDING.


1. MCNALLY (532629 - CMP:87.70): BUY FOR THE TARGET OF 95-100++++


2. SHALIMAR PAINT(509874-CMP: 590.20): BUY FOR THE TARGET OF 650-700+++

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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