MARKET VIEW FOR THE WEEK STARTING 7TH JANUARY 2013

Surprisingly after a last minute deal pieced together by US politicians to avoid the fiscal cliff  sent a wave of optimism gave a much relief to market participants resulting in rise in global as well as domestic indices. In the first week of January 2013, Nifty closed above 6000 levels after the gap of 2 years signalling the undertone bullishness in the market. Nifty closed at 6016.15 & Sensex at 19784.08 with a weekly gain of around 1.75% over the previous week.

Going forward Indian Markets is likely to remain range bound due to lack of major triggers. Corporate earnings scheduled to begin next week may induce in stock specific moves.

IIP data is scheduled on 11th January 2013 may have minimal impact on markets as the expectations of rate cut by RBI on 29th January 2013 is already priced in the market. Market may gradually approach to 6150-6200 levels in Nifty by then. Hence our buy on stock specific approach with adding more on dips is maintained.

For last 8 months I have been in the view to be buyer on every dip and now it could be felt clearly the this strategy has been right....

Technically, the analysts hold the view "The daily chart of Nifty is showing that it has been moving in the range of 8.20% in a time span of one and half month. The short term trend still looks positive. The immediate short term resistance of Nifty is around 6030-50 and a conclusive breach of this level is likely to take Nifty higher to 6180-6250 in the extreme short term. Hence hold the long positions in trading with stop-loss of 5950. 

FOR THIS WEEK:

No trading range of the Nifty is 5950-6050

Go long in Nifty above 6050, keeping stop-loss of 5950, for the target of 6120-6180-6250.

Go short in Nifty below 5950, keeping stop-loss of 6030, for the target of 5870-5800-5750.

FOLLOWING STOCKS ARE GOOD TO BUY IN TRADING ACCOUNT FOR 45-60 DAYS OR INVESTMENT OF 6-8 MONTHS:

1. SAINT GOBAIN(37.50): Buy for the target of Rs. 45-50-55-60-70++++. This is news driven stock and a de-listing candidate. Must buy in portfolio.

2. DELTA CORP(82.90): Buy for the target of Rs. 84-88-90-95-99-105++++. This is news driven stock. Must buy in portfolio.

3. HEXAWARE TECHNO(90.00): Buy for the target of Rs. 98-105-120++++. This is news driven stock. Must buy in portfolio.

4. KRBL(26.95): Buy for the target of Rs. 29-32++++.

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.