Relief rally haaaaan

OUR BTST - NIFTY ,BANKNIFTY,PATEL ENG

LOTS OF OTHER INTRADAY,BTST,INVESTMENT CALLS

FOR OUR SUBSCRIBER'S ONLY

FII Gross purchases Rs 4117 Cr, Gross sales Rs 5216 Cr, Net Sellers Rs 1089 Cr.
MF Gross Purchases Rs 701 Cr, Gross Sales Rs 495 Cr, Net Buyerss Rs 207 Cr.

Today, Nifty has support at 5,698 and resistance at 5,837 and BSE Sensex has support at 18,936 and resistance at 19,416

Markets on the back of positive global cues are likely to trade in the positive zone.A business daily reports that RCF is planning to sell the Mumbai land. If turned true the stock is likely witness huge action and likely to propel stocks like Bindal Agro travelling in the same boat. Land bank stories are still active and come 2008 we believe slowly market is likely to lose interest in the land bank buzz. But Realy and Infrastructure are likely to enjoy market favour unless any setbacks in the form of next year's fiscal budget.

HOT PICKS - PATEL ENG,ELDER HEALTHCARE,JB CHEMICALS,NEYVELI LIGNITE,ONGC,ISPAT(all time darling)

Pyramid Retail(Rs.174.55) stock price is likely to continue the upside journey after the buy out by IndiaBulls

Stocks in News:

PowerGrid Corporation plans foray into entertainment business and is in talks with Zee Network for a JV.

Pfizer is short of clinical research staff as it is set to expand the number of trials done in India.

Royal Orchid would make an international foray with plans to @�
�����<���om beach resort over a 30-acre property in Dar-es-Salaam, Tanzania.

JSW Steel looking at buying an ore mine in Latin America.

The hearing for US$400mn claim filed by Flag Telecom against VSNL would be decided by early 2008.

BEML expects to start producing medium speed rail coaches from 2008-09.

BEML expects Rs40bn order book by the end of the current financial year.

Wockhardt is conducting phase-II clinical trials of an anti-infective molecule WCK771

Maruti has offered discounts ranging from Rs18,500 to Rs57,500 across models before January price hike.

Indian Oil Corporation has set aside US$3bn for overseas acquisition.

Jindal Power likely to invest over Rs50bn in adding another 1,320MW to its thermal power project in Chhattisgarh.

Voltas has entered the water treatment business.

The Bombay High Court has approved the demerger of Bajaj Auto into two separate entities.

Rallis India plans foray into newer specialty chemicals segment and will look at areas such as construction chemicals.

GTL Infra to invest $450-600mn over next three years for setting up telecom towers.

Glenmark to acquire multi generic front end US$15mn company in Europe.

REL plans to foray in to Africa, to bid for projects in 3 African countries.

HDFC has sought the approval of NHB to retain stake in HDFC Bank.

Spice Jet, Air Deccan to hike prices by around Rs500-1,000.

PSU banks to go on strike from February if proposed plan on consolidation and mergers is not withdrawn.

Farmers' association wants a removal of ban on wheat and rice futures.

Regulators agree to partially open the ECB window for NBFCs.

States to meet Prime Minister to take up new mineral policy.

The Government to ease norms governing airport construction, to allow new airports to come up within 150km of existing ones.

Maharashtra Government plans to invest in Co-Operative Sugar factories to reduce burden of loans.

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The market is expected to open on a weak note today;
traders are advised to assume short positions if Nifty fails to
hold 5750 levels with a stop loss placed at 5820 levels for
downsides of 5700 and 5640 levels. Alternatively, long positions
can be assumed if Nifty finds support at 5640 levels.

The breadth of the market declined to 228:954
suggesting selling pressure prevailed in mid -cap and small-cap
stocks as well. Nifty Futures have witnessed fresh build up of
short positions; Nifty December futures have added 7 lakh
shares in open interest with premium shrinking to 2.80 points
from 24.10 points. On the options front Nifty call options have
witnessed buying while, put options have seen short closure
shuggesting market to remain highly volatile with a downward
bias .

HOT PICKS - GTL INFRA,UNICHEM LAB,BHARATI TELE,KAUSHALYA INFRA

We have a Cautiously Bullish view on Reliance. We recommend a Protective Put strategy:
o Buy One Reliance Dec Fut @ 2790-2800
o Buy One Reliance Dec 2800 PA @ 55 – 60
o BEP: 2860
o Investment: Rs.80,000 (Approx)
o Time Frame: 8-10 Days

Market highly volatile

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FII Gross purchases Rs 6910 Cr, Gross sales Rs 5827 Cr, Net Buyers Rs 1082 Cr.
MF Gross Purchases Rs 1011 Cr, Gross Sales Rs 1192 Cr, Net Sellers Rs 181 Cr.

As per provisional data, FIIs sold shares worth a net Rs 647.10 crore on Friday, 14 December 2007. Domestic institutional investors bought shares worth a net Rs 105.18 crore on that day.

FIIs were net sellers of index futures worth Rs 1359.88 crore on Friday. They were net sellers to the tune of Rs 50.63 crore in index options on that day. FIIs net sold stock futures to the tune of Rs 785.05 crore. They net sold individual stock options to the tune of Rs 10.71 crore.

We expect a softer opening today and another volatile day for the market today. The main attraction will be outside the key indices.Today, Nifty has support at 5,923 and resistance at 6,102 and BSE Sensex has support at 19,680 and resistance at 20,125

Indian midcaps/smallcaps are in no mood to listen to the global music, continue to flare up. Though the run up is broad based the intensity of the run up is definitely a cause of concern. Operator driven stocks are running crazy leaving behind the valuations. Extreme caution is adviced in rumour based stocks and remember history repeats but trying to time the fall is not advisable

Indiabulls Financial will be in action as the Delhi High Court has cleared its demerger plans.

HOT PICKS - INDIA CEM,RDB INDUSTRIES,FORTIS HEALTHCARE,FINOLEX INDUSTRIES

Market: News for the day...

1) Ford set to announce Tata Group as preferred bidder for Jaguar and Land Rover.
2) Tatas eye UK investment bank Close Brothers. Tata among six others suitors.
3) IFCI board meet today, sets conversion price of Rs 107 for FIs, 3 firms Shinsei-PNB, Sterlite-Morgan and Cargill-Texas in fray.
4) Lanco Infra to create holding co for verticals and appoints AT Kearney & E&Y to recommend changes.
5) NSE F&O curb: Alok Industries, Neyveli, TTML, Power Grid, Rajesh Exports, Essar Oil, MRPL, Gitanjali Gems, Nagar Fert, Hotel Leela, Bongaigaon, Adlabs, and GMR Infra. Out of curb: Oswal Chem, Parsvnath, IFCI, Arvind Mills.
6) Phoenix Lamps eyes Surya Roshi's lightining biz.
7) Bajaj Auto Demerger - hearing in Bombay HC concludes; HC to issue order on Monday.
8) Govt may rein revenue sharing agreement to compensate GMR lead consortium for possible loss of revenues due to proposed Greater Noida airport.
9) SBI eyes more banks abroad.
10) Bid for Govt's 36.7% stake in Gujarat Alkalies will be invited post elections.
11) Jindal Drilling: To make pref issue of 1.2 m shares to Citigroup at Rs 1,280/share. Jindal Drilling Issue to Citi represents 10.47% of post-issue cap.
12) Era Infra Engineers open offer at Rs 615/sh.
13) General insurance to get full pricing freedom from Jan 1.
14) India Glycols acquires Shakumbari Sugar and Allied Ind for Rs 47 cr.
15) Power Grid gets finance ministry clearance to procure USD 1600m loan from World Bank and ADB.
16) Coal India hikes prices by 10-15%.
17) Mold-Tek will sell 10% in KPO unit to PE firms.
18) ABG Shipyard to raise USD 200m for expansion.
19) Cummins India eyes USD 2bn auto sourcing deals.
20) Colgate to resume trading and would be part of NSE F&O; lot size 550 shares; options strike prices between Rs 80-680.
21) Manaksia IPO opens today; offer of 1.55 cr shares; price band Rs 140-160.
22) Precision Pipes IPO opens today; offer of shares up to Rs 75 cr; price band Rs 140-150.
23) Porwal Auto Components IPO opens today; offer of 50 lakh shares; price band Rs 68-75.
24) Phoenix Mills board meet on Dec 19 on stock split.
25) Mahindra Holidays & Resorts India files DRHP for IPO of 1.07 cr shares.
26) Allied Digital: Likely to close about USD 5 m domestic co buy in Dec. Sees FY09 revenue at Rs 650 cr; profit at Rs 75 cr.

8 reasons why stock market traders lose money

Many people think trading is the simplest way of making money in the stock market. Far from it; I believe it is the easiest way of losing money. There is an old Wall Street adage, that "the easiest way of making a small fortune in the markets is having a large fortune."
I discuss below eight ways of undisciplined trading which lead to losses. Guard against them, or the market will wipe you out. I am qualified to speak on this subject because I was myself an undisciplined trader for a long time and the market hammered me into line and forced me to change my approach.
1. Trading during the first half-hour of the session
The first half-hour of the trading day is driven by emotion, affected by overnight movements in the global markets, and hangover of the previous day's trading. Also, this is the period used by the market to entice novice traders into taking a position which might be contrary to the real trend which emerges only later in the day.
Most experienced traders simply watch the markets for the first half of the day for intraday patterns and any subsequent trading breakouts.
2. Failing to hear the market's message
Personally, I try to hear the message of the markets and then try to confirm it with the charts. During the trading day, I like to watch if the market is able to hold certain levels or not.
I like to go long around the end of the day if supported by patterns, and if the prices are consistently holding on to higher levels. I like to go short if the market is giving up higher levels, unable to sustain them and the patterns support a down move of the market.
This technique is called tape watching and all full-time traders practice it in some shape or form. If the markets are choppy and oscillate within a small range, then the market's message is to keep out.
Hearing the message of the market can be particularly important in times of significant news. The market generally reacts in a fashion contrary to most peoples' expectation. Let us consider two recent Indian events of significance.
One was the Gujarat earthquake that took place on 26 January 2001 and the other the 13 December 2001 terrorist attack on the Indian parliament. Both these events appeared catastrophic at first glance. TV channels suggested that the earthquake would devastate the country's economy because Gujarat has the largest number of investors and their confidence would be shattered, making the stock market plunge.
Tragic as both the events were, the market reacted in a different way to each by the end of the day. In both cases the markets plunged around 170 points when it opened, in both cases it tried to recover and while it managed a full recovery in the case of the Gujarat earthquake, it could not do so in the Parliament attack case.
The market was proven correct on both counts. The Gujarat earthquake actually held the possibility of boosting the economy as reconstruction had to be taken up, and also because most of the big installations, including the Jamnagar Refinery, escaped damage. In the case of the attack on parliament, although traders assessed that terrorist attacks were nothing new in the country but the market did not recover because it could see some kind of military build-up ahead from both India and Pakistan. And markets hate war and uncertainty.
In both these cases what helped the cause of the traders were the charts. If the charts say that the market is acting in a certain way, go ahead and accept it. The market is right all the time. This is probably even truer than the more common wisdom about the customer being the king. If you can accept the market as king, you will end up as a very rich trader, indeed.
Herein lies one reason why people who think they are very educated and smart often get trashed by the market because this market doesn't care who you are and it's certainly not there to help you. So expect no mercy from it; in fact, think of it as something that is there to take away your money, unless you take steps to protect yourself.
3. Ignoring which phase the market is in
It is important to know what phase the market is in -- whether it's in a trending or a trading phase. In a trending phase, you go and buy/sell breakouts, but in a trading phase you buy weakness and sell strength.
Traders who do not understand the mood of the market often end up using the wrong indicators in the wrong market conditions. This is an area where humility comes in. Trading in the market is like blind man walking with the help of a stick.
You need to be extremely flexible in changing positions and in trying to develop a feel for the market. This feel is then backed by the various technical indicators in confirming the phase of the market. Undisciplined traders, driven by their ego, often ignore the phase the market is in.
4. Failing to reduce position size when warranted
Traders should be flexible in reducing their position size whenever the market is not giving clear signals. For example, if you take an average position of 3,000 shares in Nifty futures, you should be ready to reduce it to 1,000 shares.
This can happen either when trading counter trend or when the market is not displaying a strong trend. Your exposure to the market should depend on the market's mood at any given point in the market. You should book partial profits as soon as the trade starts earning two to three times the average risk taken.
5. Failing to treat every trade as just another trade
Undisciplined traders often think that a particular situation is sure to give profits and sometimes take risk several times their normal level. This can lead to a heavy drawdown as such situations often do not work out.
Every trade is just another trade and only normal profits should be expected every time. Supernormal profits are a bonus when they -- rarely! -- occur but should not be expected. The risk should not be increased unless your account equity grows enough to service that risk.
6. Over-eagerness in booking profits
Profits in any trading account are often skewed to only a few trades. Traders should not be over-eager to book profits so long the market is acting right. Most traders tend to book profits too early in order to enjoy the winning feeling, thereby letting go substantial trends even when they have got a good entry into the market.
If at all, profit booking should be done in stages, always keeping some position open to take advantage of the rest of the move. Remember trading should consist of small profits, small losses, and big profits. Big losses are what must be avoided. The purpose of trading should be to get a position substantially into money, and then maintain trailing stop losses to protect profits.
Most trading is breakeven trading. Accounts sizes and income from trading are enhanced only when you make eight to ten times your risk. If you can make this happens once a month or even once in two months, you would be fine. The important point here is to not get shaken by the daily noise of the market and to see the market through to its logical target.
Remember, most money is made not by brilliant entries but by sitting on profitable positions long enough. It's boring to do nothing once a position is taken but the maturity of a trader is known not by the number of trades he makes but the amount of time he sits on profitable trades and hence the quantum of profits that he generates.
7. Trading for emotional highs
Trading is an expensive place to get emotional excitement or to be treated as an adventure sport. Traders need to keep a high degree of emotional balance to trade successfully. If you are stressed because of some unrelated events, there is no need to add trading stress to it. Trading should be avoided in periods of high emotional stress.
8. Failing to realise that trading decisions are not about consensus building
Our training since childhood often hampers the behaviour necessary for successful trading. We are always taught that whenever we take a decision, we should consult a number of people, and then do what the majority thinks is right. The truth of this market is that it never does what the majority thinks it will do.
Trading is a loner's job. Traders should not talk to a lot of people during trading hours. They can talk to experienced traders after market hours but more on methodology than on what the other trader thinks about the market.
If a trader has to ask someone else about his trade then he should not be in it. Traders should constantly try to improve their trading skills and by trading skills I mean not only charting skills but also position sizing and money management skills. Successful traders recognise that money cannot be made equally easily all the time in the market. They back off for a while if the market is too volatile or choppy.

Market highly volatile

HOT PICKS - ISPAT,MUNDRA PORT, RAMA NEWSPRINT, HIND ORGANICS

Today, Nifty has support at 5,946 and resistance at 6,143 and BSE Sensex has support at 19,829 and resistance at 20,319.

we believe the markets are likely to trade up today. Daily it is a routine to witness new stocks rallying and sitting pretty on circuits. The trend is likely to continue irrespective of the front liners. We always believed in midcaps due to low valutions and rapid growth and never concentrate on large caps except few.The market is expected to stay sideways in absence of major positive trigger in near term. However high volatility may be seen as the market consolidates at higher levels. Overseas cues will also to some extent dictate the near term sentiment. However small and mid-cap stocks may continue their rally on momentum buying, as indicated by strong market breadth in the past few days

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 401.76 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 226.65 crore on Thursday, 13 December 2007.

GMR Share is tipped to touch Rs.280 mark by the year

Tata Tele(Mah) is likely to divest 49% of the stake in its tower business.we have our bet placed likely to double from these levels in the next one year

Abhishek Mills(Rs.71) mentioned couple of times in this section is a multibagger. The stock appear to be eyeing the century level

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BULLS vs BEARS

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OUR TRADING CALL OF KS OILS ALSO FLARED ALMOST 10% OH GOD. WHAT A GAIN.

OUR BTST are NTPC,RNRL,PUNJLLOD,INDIAN OIL

The market is expected to open on a flat to positive note today.
However, profit booking from the higher levels cannot be ruled
out. Traders are advised to assume long positions from lower
support of 6150 and 6120 levels with final stop loss placed
below 6110 levels.However, Nifty witnessed
sharp bounce from the lower support of 6000 levels in the initial
hour of the trade itself. Buying in telecom pivotal assisted the
Nifty to test li fe time high at 6175 levels. Buying continued in
mid -cap stocks as indicated by strong market breadth at
797:377. Nifty December futures have seen fresh accumulation
of long positions ; December futures have added 40 lakh shares
in open interest with significant increase in premium to 29.75
points from 10.05 points. On option fronts ; call options have
seen mixed trend while put options have witnessed writing
across the strikes suggesting limited downsides in the market.

HOT PICKS - SPICE TELE,NICHOLAS PIRAMAL,PORRITTS & SPENCER

Delivery
EDELWEISS CAP. : Short Term Target 1700+
IFCI : Target 150+

AMD Metplast(Rs.51.75) is being cornered by insiders. Watch for good gains in the short term
Buy MTNL Buy for a target of 215 and above for 4 days
Adlab target 2000

We have a moderately view on NTPC. We recommend a Covered Call strategy:
o Buy One NTPC Dec Fut @ 252 - 254
o Sell One NTPC Dec 260 CA @ 7.00 – 7.50
o BEP: 247
o Investment: Rs.1,56,000 (Approx)
o Time Frame: 8-10 Days

Maruti Buy 1050-1060 sl 1043.10 for target 1110-1120 for 2-3 Days
LOTS OF OTHER INTRADAY,BTST,INVESTMENT CALLS

FOR OUR SUBSCRIBER'S ONLY

GAP DOWN OPEN

The Market is likely to have negative opening, as the cues from global markets are not in favor. The market surged yesterday to hit new landmarks by creating a rally over the sectoral indices scrips on the back of heavy buying across the counters. Both the benchmark indices closed lifetime high with handsome gains.

Today, Nifty has support at 5,962 and resistance at 6,139 and BSE Sensex has support at 19,928 and resistance at 20,396

The Index of Industrial Production (IIP) data for October 2007 is due today, 12 November 2007. IIP had slumped 6.4% in September 2007 over 12% in September 2006. Industrial output moved down 9.2% in April-September 2007 compared with 11.1% in April-September 2006.

Stocks in News:

Wipro is looking to earn one-sixth of its global revenues by March 2009 from system integration business.

Pfizer's patent for new HIV follow up treatment drug Celzentry in India may face opposition from patient groups and NGOs.

Marico is currently test marketing hair oil, gel and shampoo for children.

ITC to provide supply solutions to help small stores place orders over mobile phones.

TV18 Group to buy a majority 53% stake in Infomedia India.

Ansal API receives UP government’s approval for two SEZs.

Jindal Drilling plans to divest 10% stake to fund expansion plans.

Nalco is investing Rs300bn over the next five years for setting up smelter and power plant in Indonesia.

SBI expects slowdown in personal loans by 5-10% in second half of FY08.

Shriram Transport Finance is looking at the replacement market to sustain its loan growth at 50% in H2 FY08.

Idea Cellular offers Rs16.5bn for additional 4.4MHz spectrum.

Reliance Industries to spend US$12bn to develop three gas basins.

IOC says it would stop fuel supply to the railways if the latter continues to insist on discounts.

United Phosphorus is set to bid for Australia's largest agriculture chemical company, Nufarm.

Tata Steel has entered into a joint venture with SODEMI for the developing Mount Nimba iron ore deposits in Ivory Coast in West Africa.

Suzuki announces that Maruti Suzuki India will make its next global car, the A-Star.

Mercator Lines raises about US$142.5mn from its listing at the Singapore stock exchange.

Reliance Industries sings contracts for exploration in two oil and gas blocks in Colombia.

Reliance Energy led consortium will contest Sea King while bidding for the Mumbai Trans-Harbour link.

Reliance Energy’s 4,000MW Shahapur project gets environment clearance.

L&T acquires 26% stake in New Delhi based consulting and engineering firm Feedback Ventures for Rs400mn.

JSW Energy invites bids for BoP package for its proposed 3x400MW coal fired power plant in Ratnagiri.

Commerce Minister Kamal Nath rules out any possibility of relaxation of land rules for SEZs.

The RBI may soon tighten norms for foreign exchange derivatives.

The Government is likely to extend Software Technology Parks of India scheme only to Indian ITES/BPO firms beyond 2009.

The Petroleum & Natural Gas Regulatory Board has urged the petroleum ministry to offer targeted subsidy on petrol, diesel, LPG and kerosene.