Wednesday, February 16, 2011

Technical Outlook :Bulls holding fort....

Market Outlook: Indian markets are expected to open in mixed trend with volatility but positive. Asian markets trading firm; Hang Seng flat; Nikkei up while Wall Street ends lower on mixed economic news. Overall outlook for the markets today is that of cautious optimism as the bulls must hold the Nifty above the 5420 levels sustain ably to manage an upmove in the coming session. Now comes the time for a consolidation before the next move up to 5560.

Results Today: Aventis Pharma, Hexaware Tech

Global events to watch

Þ Industrial Production

Þ Housing Starts

Þ Producer Price Index

Global indices Update @ 8:

Dow Jones : 12226 (-41.55)

NASDAQ : 2804 (-12.83)

Nikkei 225 : 10788 (+41.46)

Hang seng : 22859 (-40.12)

SGX CNX Nifty : 5470 (- 06.00)

INR / 1 USD : 45.45

Technical Outlook :Bulls holding fort....

After two days of strong rise, it was nothing unusual to see the market stall a bit at higher levels. Skepticism is still quite high in the minds of people and hence profit taking would be hurried as soon as there are signs of tiring. So be prepared to buy into the first pullback into support. Yesterday's fall halted at the 5400 levels. We can also use dips into that region as a signal to buy. Stocks, after two days of bullishness have now begun wearing a mixed look. Sugar and metal were at the receiving end as were real estate counters. This situation may repeat into today. ADAG stocks have been into some good recovery and one should be wary of chasing them now. Banks have also become selective. So one may need to be a bit alert in stock picking today and cannot jump into every tip that comes along.


There may be a greater willingness to sell or short among the traders now that the pace of rise has waned. Hence look for some volatility now. Take a sentiment poll around you- if people still remain very skeptical of the outlook then expect the rise to continue from the first levels of support. Trade only when some decent volume support is visible. Else one may get trapped in price spikes. It may also be a good idea to mix it up with both long and short positions as trends may remain mixed. Reliance was up yesterday so continue to check the trends there today also as it can help the index along if it remains up.

Stocks to buy if market is strong


Having topped out at a high around 220 during Oct 2010, prices since then have been on a steady fall, forming a sequence of lower tops and bottoms. Last week prices hit a new low of 127 and bottoming out there have attempted a fresh pullback. RSI after few days of staying below 40 has pushed back above it this week. Looking good, go long.




Buy above 143

2 points

146 / 148-49

Or dips to 141-40

2 points

143 / 144.5


After a series of lower tops and bottoms over the last few months, prices finally formed their first minor higher bottom this week. This is a good sign for a possible pullback. Prices yesterday showed a nice upmove confirming the same. Momentum and volumes are picking up, buy.




Buy above 22.3

1.5 points


Stocks to sell if market is weak


This small cap chemical counter has been going thru a massive sell attack, plunging vertically and moving to deep lows. Prices in recent sessions did make a pullback attempt but as we note on the daily chart, the bullish momentum has been lacking. Yesterday prices turned down afresh and RSI dipped down from 40 levels. Continuing to look weak, go short.




Sell below 243

3.5 points

238 / 235


Buy Nifty above 5505 stop 5490 rise to 5580

Buy Nifty on dips to near 5405 with stop 5385 for rise to 5485


Buy Unit Phos around 142-144 stop 141.50 target 149

Sell Triveni Eng below 82 stop 83.50 target 78

Stocks in Action for the day: Jaiprakash Power, McleodRussel, Confidence Petroleum, GEI Industrial.

No announcement related to EGoM meeting on fertilizers yesterday

Jaiprakash Power Venture will merge two of its subsidiaries, Bina Power Supply and Jaypee Karcham Hydro with itself. The merger will result in creation of 14% treasury stock of JPVL, which fully owns Bina Power and holds 56.9% in JKHCL. The balance 43% JKHCL stake is owned by Jaiprakash Associate (JAL), the group flagship.

Zicom Electronic Security Systems reported net loss of Rs 92 lakhs for quarter ended December 2010. Net sales were at Rs 44.80 crores December 2010 quarter. The company's board approved investments in proposed subsidiary and another entity.

Sources Say M&M Fin Launches QIP Worth Rs 426 Cr M&M Fin QIP Priced At Rs 695 JM Fin, Kotak, Citi Merchant Bankers To M&M Fin QIP

IT department seeks to raise Rs 1100 cr from over 90 companies that bought land & properties on lease from MMRDA, RIL liable to pay Rs 100 cr as TDS (ET)

Sources Say Govt to present eco survey, FY12 rail budget on Feb 25

2G Update Unitech's Sanjay Chandra At CBI HQ For Interrogations Sanjay Chandra Says Meeting CBI To Personally Clarify Issues Raised Unitech Has Co-operated With With Investigating Agencies Unitech Has Nothing To Hide :: Our Officers Provided All Records For Examination

Tata Tele To Network18: No Summons To Any Tata Executives In 2G Scam Have Provided Clarifications Sought By CBI

Sun TV Says Sun TV MoU With Astro Group In 1997 Aircel Was Not In Existence Then Dayanadhi Maran Not A Shareholder In SUN DIRECT TV Dayanadhi Maran Not Connected With DTH Biz SUN DIRECT TV Has No Connection With Aircel BSNL Gives Out `300 Cr Tender To CMS CMS Tender To Centralise Billing System In 3 Locations CMS Tender Spread Across 7 Years

Anand Sharma Says Proposes $9 Bn Fund To Finance Infra Projects Proposed Fund To Be Set Up Jointly With Japan Fund Aimed For Delhi-Mumbai Industrial Corridor Project See $100 Bn Invest In Delhi-Mumbai Corridor Plan

Jindal Steel wins MoEF nod to build a Rs 25,025 cr plant in Orissa (Mint) From DJ JSPL Says Govt Okays Orissa Steel, Power Plant Project Asked To Set Aside 2% Profit From Project For Social Work

Shree Ganesh Forgings’ main production line has been shut due to persistent labour and working capital problems. The company is running its machining facility only in order to fulfil some of its earlier unfinished orders. The Company proposes to restart its operation upon the implementation of the CDR package.

Mcleod Russel India’s wholly owned subsidiary Borelli Tea Holdings has acquired 60% shares of Rwanda-based Gisovu Tea Company. “The official communication and the procedures for completion of the transaction are awaited,” the company said in a statement to exchanges.

Confidence Petroleum has added four auto LPG dispensing stations and commenced commercial operation at Kangeyam (Tamil Nadu), Sawarkundla (Gujarat), Tumkur (Karnataka) & Bhilwara (Rajasthan).

McNally Bharat Engineering has received Rs 13.81 crores order from Goa Shipyard for supply of one number 45 Ton level luffing crane for jetty. The schedule time for completion is 14 months.

GEI Industrial Systems has secured four orders worth Rs 60 crores for supplying air cooled vacuum steam condensers from Ultratech Cements, Sravanthi Infratech and Wonder Cement.

Nitesh Estates has launched a luxury residential project, "Nitesh Logos" near M.G. Road, Bangalore. The project has a potential to generate revenue of around Rs 100 crores. It is expected to be completed in 18 to 24 months.

Cairn Says Continue Working With GoI To Close Vedanta Deal By April 15

M&M seals $ 470 million for the ailing Korean auto major Ssangyong (TOI)

GMR Infra raised around Rs 520 cr of debt from IIFCL for modernizing Delhi International Airport (BS)

Opto Circuits foray into US Stent market may take 2-3 years more (DNA)

Syndicate Bank: board meet on19th to consider allotment to GOI via pref equity

Andhra Bank: board meet on 18th to consider Preferential Allotment of equity of Government of India

Advanta: board meet on 18th to consider fund raising

Ashapura Minechem: board meet on 17th to consider Issue of Securities

Listing of Equity Shares of Bil Energy Systems Limited pursuant to Scheme of Arrangement today

India Cements says Indonesia mine buy delayed on account of environmental clearance from the Indonesian govt (DNA)

KFA in F&O ban

Archies seen an Increase in Sales during Valentine week by 31.74%


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