Monday, January 31, 2011

Eygpt, the new thorn in the flesh

The bad news seems to be flowing unabated, this time in the form of Egyptian crisis as the voilence spreads, sending negative signals to investors across the globe. Dalal Street is likely to gap down with Singapore Nifty showing massive losses of nearly 95 points.

Wall Street was hit badly on Friday as voilent protests marred Cairo streets seeking Mubarak's resignation. Crude oil reversed trend and is inching back towards $90 levels.

News Bytes

* Vodafone mulls new pact with Essar

* Crisil downgrades ICICI car loan portfolio

* NTPC Vidyut to start getting solar power by Oct

* 3L borrowers took teaser home loans:SBI

* Lavasa files another plea against MoEF

* Fraud not to impact Citibank India's short-term rating: Fitch

Markets - Panic opening likely

Looking at Singapore Nifty, we expect a gap down of nearly 80-90 points for Nifty today. 5450 might act as the saviour and a massive bounceback is not ruled out. Going by day today events, Dalal Street appears to get no respite from selling.

Investors have limited choices at these levels except to hold and hope for the best as majority of the damage is done. While still there are punters who predict 4500 and 4200, we believe that would be a tough scenario

Friday, January 28, 2011

FIIs extend the selling spree, Asia trading mixed

Indian equities are likely to extend the slide started early this month on concerns of inflation and FII selling as Dalal Street continues to underperform rest of the globe.

Markets Outlook

Day by day the bearish clouds intesify their cover on Dalal Street. While fundamentally speaking the fears are overblown but technically the markets look weak and watching the tape sends scary signals. With stocks trading at 5 month lows and no FII support in sight it seems more downsides are on the cards. FII selling has intensified on the street over the last two months. These are definitely tough times for investors who is in two minds to stay invested or get out.

Thursday, January 27, 2011

Range bound trade expected on Expiry day

Indian equities are likely to have a muted day ahead on account of F&O expiry and mixed Asian markets on Thursday morning. Dow Jones kissed magic 12,000 level only to retrace back.

Expiry to hold markets for the day

Market players might be eyeing 5700 levels on the expiry day for Nifty. While the talk on the market sentiment on India in particular is getting worse by the day and February jynx might add to woes. We believe this time there is a chance of pre-budget rally which not even a single person on the street is expecting.


Sms.......Was Sent to Buy...."BF-UTILITIES" @ 770....After that's It's Flared and Hit 794 Mark..Yes Our Target Was 790.

In Today's Trade...Our Client's are Holding "ACC & VIP INDUSTRIES" Let's See....How these Will Perform on the Bourses.........!!!

Tuesday, January 25, 2011

All eyes on RBI meeting today, Street factors in 25 bps rate hike

The Dow Jones Industrial Average finished within striking distance of 12,000 Monday, fueled by weakness in dollar and buying interest in tech stocks. Bank home RBI policy meeting today is keenly observed by the Street. While the markets are discounting 50 bps rate hike, Mr.Subba Rao might surprise with a 25 bps hike.


Markets - Ranged

We expect Nifty to close between 5700-5800 for the expiry on thursday. With the Street shutting tomorrow on the eve of Republic Day, we might see a volatile trade today as RBI policy decision is key to the road ahead.

Midcap and smallcap stocks have slowly started the upward journey. We are upbeat on Indian economy and same with stocks.

Monday, January 24, 2011

Asia markets wave green flag, SBI beats

Indian equities might open marginally higher on Monday moring as rest of the Asian markets trade higher. Investors eye RBI meeting on Jan 25th as expectations of a higher rate hike build up.

News Bytes

* RBI may hike rates 25 bps to tame inflation

* R-Power to save Rs 6,500 cr on funding Sasan project

* Natco may seek compulsory licence for Bayer's cancer drug

* SAIL decision on FPO likely by next month

* GACL partners with German firm for HPPO project

* Oil India, IOC to give up oil blocks in Libya

* SBI beats Street estimate; net profit up 14% at Rs 2,828 cr

Markets - Range bound

With expiry on thursday and a holiday on the 26th, we believe choppy trade will be the name of the game going ahead. Volatility might mar trading tomorrow as RBI will decide on the interest rates.

State Bank delivered good numbers on saturday. Overall Corporate India's Q3 performace is satisfactory. We picked up bullish feelers from two major FIIs Goldman Sachs and JP Morgan. Let us see what is in store soon

Friday, January 21, 2011

Wipro and Reliance to report today

Gold fell to a two-month low on Thursday as stronger-than-expected US jobless figures pushed the dollar higher and sending investors rushing to sell on improving economic situation. Dalal Street might see a minor sell-off today.

Asian markets are trading mixed Friday morning

Reliance to dictate the future course

While technically Reliance Industries is looking weak, the quarterly numbers might set the tone for the equity markets in the short run. Wipro also reports today. Markets are trading extremely volatile and it is better for oneself to stay away from trading for the next few days till things get sorted out. We believe 5700-5800 is the place Nifty might take rest during the F&O expiry which is slated for next thursday

Thursday, January 20, 2011

LIC Housing beats the street, Tata Steel FPO receives lukewarm response on Day 1

Dalal Street is all set to open marginally in the red on weaker global cues on Thursday with investors eyeing Q3 earnings. US stocks pulled back Wednesday to session lows as softer-than-expected earnings from big banks weighed on sentiment.

Asian markets are trading in the red today

Markets - Down but not out

While big FIIs like Credit Sussie were bearish on India atleast for the new quarters, we expect things to change rapidly from the next few weeks. The amount of negative news flow India is witnessing is stupendous but one should understand the dynamics of an economy that is growing leaps and bounds. While the corrections are swift and the pullbacks are even faster, the current correction is definitely beating the devil out of investors. Value buying yesterday shows some signs of recovery round the corner

Wednesday, January 19, 2011

D-Street likely to see ranged trade

Indian equities are likely to witness a ranged trade today with negative bias after a final hour rally that took short sellers by surprise yesterday. Wall Street extended the rally with Dow Jones adding up 50 point gain. IBM and Apple reported stellar numbers after hours on Tuesday

Markets - Not of woods, but end in sight

We are not convinced with yesterday's rally but expect the end of the selling soon. While midcap and smallcap stocks are out of favour understandbly as the recovery happens in the frontliners.

We expect markets to touch new lows (around 5500-5550) levels soon and then likely to bounce with a vengeance. RBI rate hike might be much needed trigger for the Bulls as the overhang will be done with

Tuesday, January 18, 2011

Q3 numbers not too far from expectations so far, D-Street to open in green

Stocks are likely to witness a gap up open marginally though, followed by a volatile ride on positive Q3 results from TCS. Wall Street closed for trade on Monday on account of Martin Luther King holiday.

Among noted companies that declare Q3 today include DCB, GAIL, Indiabulls Real Estate, Mindtree, Petronet, Tata Elxsi.

News Bytes

* Dandekars in talks to sell 15% stake in Camlin.

* Infosys told to pay Rs 400-cr tax on onshore sales

* Essar Oil posts profit of Rs 273 crore

* Larsen & Toubro's order inflow drops 25% in Q3

* TCS profit jumps 30% on all-round growth

* Axis Bank net rises 36% on robust credit growth

* IL&FS may infuse Rs150 crore in Maytas Prop

* Parsvnath targets Rs13,000 cr sales

* GAIL scouts for US shale gas assets; may invest $500 mn

* JSW buys Bellary Steel for Rs 2.1 bn

Nifty - Struggling to inch up

Yesterday's session indicate markets are beaten down on every attempt to rise. Disecting FII data yesterday's suggests a positive move today. FIIs bought nearly 600 cr worth Index Futures yesterday while sold 400 cr worth Index options.

We might find a bottom later this week.

Monday, January 17, 2011

D-Street to witness subdued session, China rate hike might take toll on metals

While global markets are hitting new highs every alternative day especially Wall Street and Nikkei, Dalal Street is stuck in the clutches of Bears, taking a severe beating in the last two weeks.

Wall Street hit a 30-month high while Nikkei is trading near to 8 month highs.

News Bytes

* Infosys plans to acquire smaller US outsourcers

* Allied Digital looks for UK JV partners

* UTV may exit Indiagames

* GMR, GVK groups may bid for Bali airport revamp project

* No Sebi ban on me or my firms, says Anil Ambani

* SBI to raise up to Rs 2K cr by bonds


Metals to lose sheen

Metal stocks might take a hit after China raised rates on Friday. From an investor perspective it is really tough to invest on D-Street with the kind of negative news flow one is witnessing. But we believe majority of the downsides are factored in and RBI policy meet next week might be the "Buy on News" signal.

Coming to traders this market is for bravehearts only and the volatility has driven traders out of the marke

Friday, January 14, 2011

Street looking towards the saviour (Nifty - 5700

Traders will be keenly keeping an eye on 5700 level for Nifty and might go all out shorting the market once the levels are broken. Asian markets are trading in the red on Friday morning

Nifty - Watch out for 5700

We believe this level will be tested in the early morning trade. Any bounce back in Nifty above 5820 levels will create panic among short sellers. While bulk of the selling is done there is still some more pain. The indicators are turning bullish though fresh shorts were created in the system yesterday.

For investors it is better to wait and watch while traders should carefully watch the levels

Thursday, January 13, 2011

Dalal Street to extend pull back rally, eye Infosys numbers

Global markets found comfort in Portugal's ability to sell 10-year bonds at reduced borrowing costs with a decent rally. Wall Street closed with near to one percent gains on Wednesday. Asian markets are currently trading with decent gains on Thursday

Markets - Extending the pull back

Nifty is likely to extend the pull back rally with another round of short covering. This pull back rally to convert into a massive rally requires regulatory action.

For traders it is time to ride the rally while investors are advised to wait till Nifty crosses 6000 levels. Infosys numbers before market opens might impact the trade today.

Wednesday, January 12, 2011

Investors keep an eye on IIP data, indices showing no signs of a pull back

Indian equities continues to look jittery despite of an intraday bounce yesterday with traders and investors keeping a tab on the IIP data to be released later in the day.

5690 - the final saviour

Nifty bounced back yesterday from 5700 levels. While 5690 on Nifty is considered as the final support level before Nifty takes a plunge into a new territory, not seen in the last four months.

We still believe a bounce to 5950-6000 levels is still due but given the ferocity of the fall chances look bleak. India story was tamed by factors like inflation, interest rates etc

Tuesday, January 11, 2011

Panic grips Street,Deadcat bounce on cards

Dalal Street is likely to witness a subsdued opening with investors and traders keeping an eye onIndex of Industrial Production (IIP) data, to be released today.

Aluminium major Alcoa late Monday swung to a fourth-quarter profit on a 4% increase in revenue to $5.65 billion from the year-ago period. Asian markets are trading mixed today with minor gains.

Markets - At critical levels

Nity is at crossroads currently with the near term and major support at 5720, below which Nifty has an easy target of 5600 .

A deadcat bounce is not ruled out, given the speed of selling in the last one week. Expect huge volatility from here on. We believe markets to take support around these levels and bounce back will be sharp

Monday, January 10, 2011

Battering in Auto stocks likely to extend, Nity support between 5800-5840

Crude oil jumped back to $90 levels after news the Trans-Alaska Pipeline network was shut down due to a leak. Indian equities are unlikely to recover from the shock and awe of last week.

Nikkei is closed while chinese markets are trading in the green today.

News Bytes

* iGate set to announce Patni acquisition today

* PowerGrid plans Rs 10,000-cr bond issue in 2011-12

* Fortis wants to expand in West, S-E Asia

* Nalco eyes 25% jump in net profit in 2010-11

* Cotton output forecast raised to a record 329 lakh bales

Nifty - Some more pain ahead

While markets are unlikely to take support at current levels, we expect 1-2 pct cut in Nifty from here on. We believe Indian markets are unlikely to slide below 5800 levels. Except for Inflation the tide is still with the Bulls though no major buying was witnessed in the past one week. Expect value buying in the coming week, which might rescue Indian markets

Friday, January 7, 2011

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Thursday, January 6, 2011

Asian Markets off to a flyer

Dalal Street is likely to witness a gap opening today with higher chances of a decent close on positive Wall Street, followed by rally in Asian Markets on Wednesday.

News Bytes

* Merck ends pact with Ranbaxy

* NMDC gets green nod for Himachal limestone project

* Gitanjali Gems likely to close PE deal by Feb

* Indian Bank plans insurance foray

* Gujarat NRE sees floods raising coking coal demand

* Suzlon chairman says ‘no question’ of family exiting

* Dr Reddy’s to contest Pfizer’s patent suit

* Keep hiking rates to cool inflation: IMF

RBI - Rate hike Fears?

While stories in media suggest that RBI might hike rates again and markets are jittery on the same. We believe a rate hike in January is already factored in and do not expect a major hiccup in the short term. We expect a 25 bps hike in Interest rates.

Slow down in FII Inflows?

Analysts are expecting a slow down in the FII inflows in the new year. We expect a thumping number in the first quarter followed by a cool-off, only to pick up in the second half of the year.

Nifty - Takes support at 6070

Nifty took support at 6070 but failed to cross 6170. A cross above 6170 might take Nifty to 6300 levels. Stay invested as global indicators point to a January rally.

Wednesday, January 5, 2011

Expect a subdued opening and lacklustre trade in the first half

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Indian equities might see a flattish opening and a lacklustre trade in the morning session of trade today on flattish global markets. Investors abandoned red-hot commodity shares on Tuesday, while fears of lower supermarket profits hit food retailers, sending the S&P and Nasdaq lower while Dow Jones closed in the green.

Asian markets are trading mixed with Shangai taking a knock of nearly one percent and Nikkei trading flat.

News Bytes

* L&T to be split into nine independent entities

* Natco seeks Pfizer nod for HIV drug clone

* Maruti sales jump 17% in Dec, exports drop 29%

* Lakshmi Vilas Bank eyes QIP in February-March

* Max India to seek shareholders nod to invest Rs 750 cr

* Iconix signs licensing deal with Arvind for Mossimo

* Cement overcapacity set to double inside two years

* Dishman eyes $20-25 million revenues from China API unit

* IGate, Apax set to buy Patni in 3-stage deal for around $1 bn

* FDI dips 7% to $1.6 bn in November

* RPower targets 1,000 MW renewable capacity

Markets - Some more consolidation before take off

We expect markets are likely to spend some more time in this band before the take off.Bearish signs are not in sight and we do not expect major correction till March-April this year. Till then it is time to ride the rally. Midcap and smallcap stocks will outperform large caps this year on account of thumping performance

Tuesday, January 4, 2011

Asian markets on the run, D-Street to extend the rally

Indian stocks are likely to extend the four day rally on Tuesday on positive global cues and overnight gains in the US market. Wall Street stocks posted strong gains of roughly 1% during 2011's first trading session as promising manufacturing and construction data bolstered confidence in the U.S. economy's recovery prospects. Stocks are expected to rally in January, potentially marking 2011 as the year investors returned in number to the equities market.

Asian Markets are trading in the green on Tuesday.

News Bytes

* Nalanda Capital hikes Voltamp stake to 8%

* Lupin settles litigation over Lunesta with Japanese firm

* Patni-iGate deal hit by procedural delays

* Exports rise 26.5% in Nov, may exceed $200-bn target

* Rubber output up in Dec; consumption drops 1.3%

* ACC, Ambuja despatches rise in December

* KEC International strengthens order book to Rs7,500-8,000 crore

* Reliance Cap’s unit buys 26% stake in ICEX from Indiabulls

Railway Stocks might cut loose

Its time for the Railway budget stocks to spike up. Kalindee Rail, Titagarh Wagons, Texmaco and Kernex are the ideal bets in this space. Realty and Infra started showing momentum and might inch up today also. Second rung IT looks promising while Banks and Autos will be pushed to the back burner.

We had a decent start to the F&O segment while our latest swing trade call is on the move with gains of 8 pct till date.

Monday, January 3, 2011

New trading year likely to start with a bang

Dalal Street is likely to open in the green on the first trading day of year 2011 on the back of positive global cues. Inflows are expected to be a major booster for the markets in the next two months. One should not be surprised if the markets run up another 10 pct in two months.

News Bytes

* iGate cancels announcement of deal with Patni

* External debt exceeds forex reserves after 7 yrs

* Tata Steel, Nippon to ink Rs 2,400-cr JV by Jan-end

* Govt explores capping FDI in pharma

* NTPC to set up 4,000 MW unit in Vizag

* China manufacturing growth slows

Get ready for the run

While technically FIIs start punching cash orders from the second week of January, we believe the rush for midcap and smallcap stocks is likely to continue this week too. With Q3 numbers round the corner, the onus is on the frontliners to deliver goods.

Kalindee, Titagarh are looking good while Coal stocks are likely to see massive interest on the back of Australian floods. Realty stocks are looking interesting too.