Monday, March 3, 2008

Time for another plunge ?or BLACK MONDAY

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Due Global conditions we are expected to open negative today butwith a gap down

On the downside we find immediate support at 5200 but that is not expected to be held, and we may drag down straight between 5110 - 5130.


The zone between 5110- 5130 should act as a good support and any break below this and trade below this level for sometime can create panic and we could see 4880 - 4920on Nifty.

The zone between 5360 - 5410 is acting as a very good resistance and many time I kept on saying that. And why we say that --- see market is taking reversal either coming nearer to this zone or by entering and then reversing. Let us have a few look at it

On 25th Jan market saw a high of 5399 and close at 5383. and then on 28 Jan (as 26 and 27 Jan we holidays) we saw market reversing even came down to 5071 but closed at 5274 The next day 29 Jan again market went high to 5391 then again reversal happened and market close at 5280

On 4th Feb Market again tried to cross 5400 and this time it was successful and even went high up to 5545 but then close at 5463 and the next trading day (6th Feb) we saw reversal and market came down and close at 5322 by hitting a low of 5257

On 19th Feb, market went high to 5368 and then it saw a reversal from there and from there market went down to as low as 5116 on 20th Feb.

And recently on 27 Feb, market again went high again to 5368 and then a reversal from there made market went low to 5098 on 29 Feb.

Let market give the direction clear and then enter. Expected to play between 5110 - 5200 any side breakout should then be carefully taken

Chidambaram, Indian Finance Minister as expected announced more reforms, wasting a golden oppurtunity to boost the reeling Dalal Street. Though there were not much of expectations from the budget this year negative global cues might have a say on the street today. Trading volumes reduced by as much as 30 percent in the last two months. Brokerage stocks are likely to be impacted negatively on the news of increase of STT.

Few midcaps are likely to continue the run on positive implications from the budget. Indian markets are going through a bad patch, inline with their global peers. We are still positive on the economy and favour the Bulls. We expect a worst case scenario of BSE Sensex slipping to 14,000 levels in case of a recession. But value investors should not be concerned about the same.

Watch for VSNL (Tata Communications), Tata Teleservices and GTC Industries in today's trade

Stock in news - GTC Industries, ICSA, Kinetic Engineering,Tata Teleservices, VSNL are the stocks in news today.


Shipping Corporation in reported to be in talks with Korea’s STX for a shipbuilding Joint Venture.

Tata Communications Ltd, formerly Videsh Sanchar Nigam Ltd, is in discussions with Temasek Holdings Pvt. Ltd for a possible stake sale in its retail and broadband business.

Cigarette manufacturer GTC Industries announced that its board of directors has considered and granted an in-principle approval to demerge the tobacco and the real estate business into two separate entities.

ICSA is eyeing Rs 100 crores from oil and gas infrastructure projects.

Spice Communications registered Rs 399.92 crores net profit in Q3

Reports say ICICI Securities Ltd, the broking arm of ICICI Bank Ltd is planing to sell about 3% of its equity to institutional investors through private placement.

Tata Teleservices will launch Virgin Mobile, a UK based Virigin Group Company in 50 cities initially and in more than 1,000 cities by the year end.

Pune based Kinetic Engineering sold 14.5 percent stake to AIG.