OUR STBT - NIFTY
We will see gap down nearly 200 points , but with volatile session through out the day. Trade carefully
On downside I see a support existing 5413 - 5400 , 5363, 5240 and finally 5143
Among all the supports above 5413 - 5400 and 5143 are the strong supports, and especially 5143 is not expected to be broken.
On the upside 5575 should comes a first hard resistance break of which can take us to next hard resistance of 5680.
Indian markets are likely to open weak on the above mentioned cues but likely to recover. We strictly advice investors against going short on the market. Though we do not expect any positives from today's trading we are not with the bears. Markets are likely to recover after the initial dips.
Three reasons : Why dont we expect a recovery ??????
1. We do not see excessive positions in the F&O segment.
2. Reliance Power IPO refunds, likely to enter primary market will support the market.
3. Midcaps are already reeling and there is limited scope for down side from these levels.
As mentioned many times these are tough times and only patient investors can survive. While sticking to our 60-40 odds in favour of no recession we want to play purely on Technicals. In our earlier review we mentioned Dow Jones need to cross 12,750 level and should close two times above the same. Now we see a minor support at 12,150 level for Dow Jones and the final major support level of 11,940. After that level we cannot imagine the plight of equities.
Reliance "Power" is likely to arrest the downfall. Very few die hard bulls will place their bets on a limited fall in the Indian indices and we are few among them
Pick No 1 - Buy NTPC - Stock is currently trading at 223.10. Looks good at 208 level for both intraday and positional keeping a stop loss of 199 for intraday and for positional . Remember opening is expected to be negative tomorrow so just don't hurry up and trade wait for the market to settle first. Final target and stop loss only for clients. Clients will be informed regarding this through SMS.
Pick No 2 - Buy DISH TV - Stock is currently trading 69.90. Looks good at 65 level to buy keep a stop loss of 62 and buy. Remember opening is expected to be negative tomorrow so just don't hurry up and trade wait for the market to settle first. Final target and stop loss only for clients. Clients will be informed regarding this through SMS
STOCK IN NEWS
IT bellwether Tata Consultancy Services Ltd(TCS) laid off nearly 500 employees citing performance reasons.
Indiabulls Financial Services is planning to hit Singapore stock exchange with an IPO of $1.2 billion
Reliance Communications is likely to tie up with sweedish based GPS service provider Wayfinder Systems.
Sources say MTNL- BSNL merger is likely to proceed in the next month
HCL Technologies is all set to bad a one billion dollar outsourcing deal from a global major.
Suzlon Energy bags order for wind turbines from an Australian company.
SBI tied up with Tata Power for Rs 4,450 cr power plant
L&T is on the look out for a mega shipyard location, to build ship engines
Hyderabad based Prime Focus ties up with Warner Bros MPI
Oil exploration company Deep Industries is likely to join hands with IOC to develop and market gas
Crisil limited is reported to be in talks with US based Equifax and Tata Capital, a Tata group firm to form credit information company.
Ceat limited is on the verge of selling the 32 acres of land at Bhandup, a Mumbai suburb for nearly Rs.100 crores