MARKET VIEW FOR THE WEEK 21st JANUARY 2013 TO 25th JANUARY 2013

Indian Stock Market closed higher on the last day of the previous week , where Sensex closing above 20,000 for the first time in 2 years. Market was led by oil & gas sector while I.T shares were down due to disappointing guidance by Wipro. Sensex closed at 20039.04 and Nifty at 6064.40 both up almost 2% over the week. 

Going forward, Indian Markets are likely to continue the momentum, which commenced with the initiation from the government side to partially de-regulate the diesel prices. However going forward there remains some uncertainty regarding the RBI's monetary policy stance in the upcoming policy meet in last week of January 2013. Looking at inflation figures , some senior person has remarked that RBI may not cut the rate of interest in its January policy. This has created a sense of apprehension in the market. On the result side heavy weight results were better than expected led by Reliance. This shows the optimism may reflect on screen. This week we shall see the important results like LT, HUL, HDFC, Maruti, NTPC, etc.

Its important to point out here that inspite of many challenges and apprehensions Indian Stock Market continued the rally so far, we have seen the GAAR issues, global issues, Fiscal Cliff of America and many others, but all of them were unable to stop the inflow of foreign funds in India. This is a very clear indication that India has a relatively  higher edge over other investment destinations in Asia Pacific. 
After talking to various fund managers and analysts review its could be concluded that Indian Stock Market shall continue to march and  we shall see new top very soon, may be before budget. Hence the buy on dips and holding the portfolio could prove beneficial and reward significantly. We shall see 6300++ and 21500++ where we shall review of holdings. Buying shall be done in shares like HDFC, CESC, NTPC, RELIANCE, SBI, DELTACORP for investment purpose.

Technically speaking the experts say, "the daily chart of Nifty is showing that it has given a positive rally of almost 9% in a time span of two months. The short term trend of Nifty is still positive and it is likely to test 6180 in the extremely short term. However a breach of 5910-5900 would indicate the end of current rally and in that case Nifty may go down to 5800-5650 in the short term. (This could happen if RBI defers the rate cut in January end policy meet). Hence Long position could be held only with the stop-loss of 5910-5900. 

FOR THE COMING WEEK:
No trading range of the Nifty is 5950-6090.
Go long in the Index(Future/Call Options) if Nifty sustains above 6090 for the extreme short term target of 6130-6180-6220+++, keeping Stop-Loss of 6040-6010.
Go short in the Index(Future/Put Options) if Nifty breaches below 5950 for the extreme short term target of 5910-5820-5650, keeping Stop-Loss of 6010-6030.

FOLLOWING STOCKS ARE GOOD TO BUY IN SHORT TERM DELIVERY (45-60 DAYS):

1. RELIANCE(898.95): Buy the share in both long term delivery hold and short term buying for the target of 920-40-960-980-1000+++

2. UNITED PHOS (141.10): Buy the share in both long term delivery hold and short term buying for the target of 150-156-160+++

3. CERA SANITARY(439.60): Buy the share in both long term delivery hold and short term buying for the target of 450-480-520+++

4. RCOM(83.25): Buy the share in both long term delivery hold and short term buying for the target of 86-92-99+++

5. WANBURY(32.90): Buy the share in both long term delivery hold and short term buying for the target of 35-38-42-45+++

6 J.P.POWER(35.70): Buy the share in both long term delivery hold and short term buying for the target of 36.50-38.20-39.40+++

7. AKZO NOBEL(985.65): Buy the share in both long term delivery hold and short term buying for the target of 1000-1080-1120-1160+++

8. SHALIMAR PAINTS(128.95): Buy the share in both long term delivery hold and short term buying for the target of 140-145+++

9. BERGER PAINTS(160.20): Buy the share in both long term delivery hold and short term buying for the target of 175-180+++

10.  NTPC(164.50): Buy the share in both long term delivery hold and short term buying for the target of 175-180-185-190+++

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.