MARKET VIEW FOR THE WEEK 30TH JULY 2012 TO 3RD AUGUST 2012

Last week due to lack of domestic and global triggers, Indian stock market moved in a tight range, while several stocks witnessed a sharp fall and some stocks took a deep cut of around 20% to 45%. There was rumor in the market that those companies which had promoter's holding being pledged were sold in panic and much more than that.......... however on Friday market received some positive global cues and bounced back. However there was clear cut nervousness among the traders and investors due to concerns over monsoon, inflation, global crude prices, delay in reform policy, lesser chances of interest rate cut etc, etc., Sensex closed at 16839.19 & Nifty at 5099.85


Going forward, Indian market is likely to trade choppy on poorer than expected earnings from PSU Banks and major shortfall in rainfall during this monsoon. However on the other hand better than expected earnings from other heavy weights may negate major falls and Nifty may bounce back from 5000-4950 levels, which is expected to be major support levels for the markets. Also the major events like FOMC meeting and RBI Monetary Policy review on 31st July 2012 may give major direction and movement of the market. Hence keep close eye on developments of 31st July and 1st August 2012.


Personal View: There are many Analyst, mostly technical ones, who always cry on slightest correction to be a major fall or crash on anvil, however they have no idea of fundamentals and dynamism other than technical lines..... No one can time the market ever, however one can always be victorious if follows the basic principles and rules of investing..... Hence keep on buying on every dip or sharp correction even if you find the market below 5000, chances of which are very less, buy select Large-Cap and Mid-Cap Stocks which shall yield good returns by next 6-8 months. Some good fundamental Stocks are Sashun Pharma, Exide Ind, Trent, Delta Corp,  Dabur, ITC, HUL, SBI, HDFC, Reliance, Zensar Techno, Kenna Metal etc.,


Technically: As per some technical analysts the daily chart of Nifty is showing that it has given a correction of almost 6% in the last two weeks. Now it is expected to face a strong support near 5010. If Nifty breaches 5010 it may further go down and take support near 4920. However , a breach of 5265 would indicate the reversal of current trend and in that case Nifty may test 5400 in the near future. Hence long trading position could be held with strict stop-loss of 5010.


OPTION STRATEGY FOR THIS WEEK:
No trading zone for the Nifty is 5010-5150.
BUY NIFTY CALLS(CE5100 & CE5200): If Nifty moves above 5150, keeping 5010 as stop-loss for the target of 5220-5265
BUY NIFTY PUTS(PE5000 & PE4900): If Nifty moves below 5010, keeping 5100 as stop-loss for the target of 4950-4920


FOLLOWING STOCKS ARE GOOD FOR SHORT TERM DELIVERY(45-60 DAYS):


1. Shasun Pharma(119.15): Buy in parts for the target of 140-160+++
2. United Breweries(549.00): Buy in parts for the target of 600-640+++
3. Tech Mahindra(716.65): Buy for the target of 730-750-780-800++++ 
4. Jubliant Food (1138.20): Buy in parts for the target of 1180-1220-1300+++
5. Exide (126.55): Buy in parts for the target of 135-140-145++++. Very positive.


FIVE TO SIX MONTHS DELIVERY( Nifty Rally to 6000+++):
1. DELTA CORP: Target 100-125-150++++
2. TRENT: Target 1200-1400-1500+++
3. KENNA METAL: Target 1200-1400-1600+++
4. BATA: Target 1000-1200-1400+++
6. NESCO: Target of 750-900-1000-1200+++


ASTROLOGICALLY: Markets will remain very choppy and uncertain till 8th August as Mercury remains retrograde. There after we could see some up-side. August month will be full of uncertainties and trading could result in losses. Market Rally will start in September till December 2012. Hence New Highs will be made in Nifty by the year end as Saturn will be in Libra forming a very good combination for BULLS........ Buy on Dips


Cheers!!!!!!!!!!!!!!!!!

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.