Sunday, January 27, 2013

MARKET VIEW FOR THE WEEK 28TH JANUARY 2013 TO 1ST FEB 2013

Last week Indian Stock Markets settled lower due to poor result by Tata Motors and chaos of carnage in reality companies like HDIL and IVRCL. Volatile sessions amid the uncertainties of rate cut by RBI kept the sentiments of investors on the cautious mode. Sensex closed at 20103.53 and Nifty at 6074.65.

Going forward the participants shall have keen watch on the RBI policy meet scheduled on 29th January 2013. Rate cut of 0.25% is expected and any thing against this shall bring large moves on the either side. If there is more than 0.25% rate cut, then the market shall celebrate the cheer and we shall witness the same on indices reaching the all time high in near future, on the other hand if the builti-in expectation is brought to jolt with RBI procrastinating or deferring the same on inflation concerns, markets shall witness a sharp correction of 150-200 points in Nifty in weeks to come.
Another major trigger shall be the F&O settlement on 31st January. If Nifty manages to settle above 6100-6150 then we shall witness new highs very soon in the form of pre-budget rally. However we shall keep in mind that markets shall consolidate in the range of 5750-6180 in normal circumstances till the pre-budget rally starts...

After talking to the various analysts and fund managers it is concluded the one should be buyer in the market and every dip should be utilized to accumulate the quality large-cap and mid-cap shares. They expect markets to make new highs before Union Budget 2013.

Technically speaking the broader range of market in terms of Nifty is with the resistance of 6150 and support of 5940. Short term trend of Nifty remains bullish above 5940. A fall below this would indicate reversal of short term up-trend and Nifty may test the next support level 5800-5820. Hence all long positions should be held with a strict stop-loss of 5940.
Profit booking could be seen around 6100-6150 and a break of this levels could bring next significant move in Nifty(to 6250-6350++) (which may come if rate cut by RBI is more than 25bps) else in normal circumstances Nifty may move in the short term range of 5940-6150.

FOLLOWING STOCKS ARE GOOD TO BUY AND HOLD AND ADD ON DIPS FOR A DELIVERY PERIOD OF 45-60 DAYS TO 4-6 MONTHS:

1. AEGIS LOGISTICS(168.05):Buy for the medium to long term holding target of 1000++ in investment account. Short term target of 178-188-196-210+++++ in trading account.

2. L&T FIN HOLDING(85.55): Buy for the medium to long term holding target of 1000++ in investment account. Short term target of 90-94-100 +++++ in trading account.

3. L&T(1607.30):Buy for the medium to long term holding target of 4000++ in investment account. Short term target of 1680-1720-1760-1800+++++ in trading account.

4. RCOM(86.10):Buy for the medium to long term holding target of 200++ in investment account. Short term target of 90-94-100+++++ in trading account.

5. NAVNEET PUBLICATIONS(64.30): Buy for the medium to long term holding target of 250++ in investment account. Short term target of 68-72-76+++++ in trading account.



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. 

  

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