Indices stuck in a narrow band

Trading in Indian markets has become a boring routine now a days, as the stock indices have hovered around the same level for the past 5 sessions. Expect the benchmark index to trade in a band of 50 points. There is lot of negative sentiment in the market, but this is being negated by market manipulation by funds with long positions

The enthusiasm in the market is dying down every day with the volumes taking a hit due to the lack of interest in equities. This is being prompted by directionless indices and little or not triggers to take index to the next level. we have seen a dramatic turn around in the markets in latter half of the day on some index manipulation by players who have taken bullish futures positions

Our Pre-market review pick Transport Corporation has gained to more than 19 percent giving handy gains to traders. We see the stock hitting Rs 125 level in the next 2-3 days. Texmo Pipes and Jayswal Neco were other stock that looked active yesterday. We see Thomas Cook and Rain Commodities giving decent returns to short term traders in the coming session

Indices face stiff resistance at current levels

Market are likely to be indecisive on the first trading day of the week, with a negative bias. Expect the benchmark index or the Sensex to trade in a narrow band, as it has been the case in the last 3 trading sessions. Most of the action is likely to be in the speculative scrips as funds are wary to commit to new purchases at the current levels

Commodities is one space that is looking attractive trading play, even in a dull market like these, while Realty and Consumer Goods saw some profit booking. Oil and Gas releated plays like Ciarn India and Chennai petro were active on Friday. Fortis Health, one of our favorite stocks moved up following hospital acquisition in Singapore.

Among the Midcap space, Hangung Toys Ltd (Rs164, mentioned on our Thursday premarket review) looks really strong with room for an appreciation of Rs 40 or a target of Rs 200.For traders, Goldstone Infra and Shivam Autotech are two stocks that look attractive for people willing to game and assume heavy risk.Transport Corporation and Indowind Energy, might be interesting short term plays.Overall a lacklustre day of trading with a negative bias.

Markets to stay range bound, Speculative activity to continue

Bull rally is likely to extend for one more day, as investors as Bulls are unlikely to give up their hold on the markets. expect a gain of 50 to 100 points on the benchmark index or the Sensex on the last trading day if the week.Midcaps will continue to dominate the scene as there are not triggers in the near term and investors will continue to look for new opportunities

Yesterday's gains in the Sensex could be attributed to some decent gains in IT and Technology related stocks, whose sectoral indices gained by more than one percent for the day.Wipro, Infosys and TCS helped the IT index and the Nifty. Bharti Airtel and Sterlite Ind were other heavy weights that contributed the gains in the Sensex.

Select Midcap stocks were in limelight inspite of the fall in the Midcap index and this trend is likely to continue going forward.New listing Man Infra finished off the day higher by 37 percent and there was lot of interest in the stock as reflected by the heavy volume in this stock. Another recent listing Syncom Healthcare gained 10 percent on strong operator activity and we see no value in this company.

As expected Texmo Pipes is close to the Rs 150 mark and offer no upside from the current levels. Core Project is another stock, that has seen string operator activity. Triveni Eng, MoserBaer India, Phillips Carbon are some the stocks that are worth watching from an intra day perspective

Trade Stock Specific,Midcaps on hot seat

Indian markets might open flat on global cues on Thursday morning, after coming off from highs of the day yesterday. Expect the benchmark index or Sensex to trade in range bound today. Midcap space is getting heated up. Although we have not seen a broad based move in Midcaps. There is very hight interest in select stocks.

Oil & Gas and FMCG stocks led the gainers yesterday with help from gains in ITC, ACC Ltd and Reliance Ind. While Technology, Banking and Realty stocks took a breather. The new listing Texmo pipes surged more than 54 percent on its first day and finished at Rs 138.60. We might see amove of another 10 bucks are so in this stock. We advice investors to stay away from this stock, as the company is overvalued at current levels, while traders can try their hand from an intraday perspective.

Our Pick (recommended to our subscribers at Rs 60) Man Ind vaulted more than 15 percent to finish at rs 77. The scrip might face some profit booking. Speculative stocks like Crew Bos and Global Vectra were very active in yesterday's dealings and it is not bad idea to keep distance from these scrips.Zylog Systems is one stock that stood out after upbeat comments from the CEO on acquistion in Canada. The stock spurted by 14 percent on huge volumes.

After Man Ind, we have come up with pick in Renewable Energy space that might give returns of more than 20 percent in the coming week. We like Nagarjuna Fert, IFCI and Hanung Toys from a 5-7 day perspective. Overall a good day for the bulls for especially the second and third rung stocks

Markets to trade in a narrow band

Major indices in Mumbai might coninue to stay in a narrow band for most of the day, as investors are wary of taking bets at higher levels and are undecided about the direction of the market going foward. Expect the benchmark index or the Sensex to trade in aband of 50 points for the day

We have witnessed some profit booking in Metals and PSU stocks with the sectoral indices losing nearly 1.5 percent each. Hindalco and Tata Steel pushed the Metals sector lower, while NMDC was the main culprit for the fall in PSU stocks, after the government has decided to fix the price band of the FPO between Rs 300 and Rs 350Tata Motors was another casualty among the index stocks giving up nearly 4 percent on the news that Auto major Daimler will offload its 5.3 percent stake in the company at a discount to the current market price.

Hanung Toys and Jubilant Foodworks led the gainers list and are looking relatively strong when compared to the other Midcap stocks. Prithvi Info has seen speculative activity and strong operator activity is not ruled out. We like Hangung Toys at Rs 156 level, as we believe that the company is fundamentally strong and fresh break out might suggest further upside after some consolidation at the current level of Rs 158. We see a target of Rs 200 in this stock, if the market maintains its momentum

Major indices to consolidate, Midcaps to shine

Nifty levels send by sms trade in fixes zone

Stocks on D-Street are likely to consolidate after a decent rally in the past 5 sessions. Expect the benchmark index or the Sensex to hover around the 17,000 mark for some time before making a decisive move. The global cues have been neutral and we at IndiaBears.com are of the opinion that this has set perfect platform for the Midcaps to shine in the next two trading sessions

Realty took a breather and was the only sector in red yesterday as investors booked profits in this sector after gains of over 5 percent in the last week.Auto and Banking stocks stole the show, led by Mahindra and Hero Honda, which gained 4 and 3 percent respectively. Banking was another space that looked explosive yesterday. Cement stock played catch up with ACC Ltd and Ambuja Cement garnering handy gains.

The market lacks triggers and there is no news on both sides to move the market. Midcaps is the space short term traders should look to. We might see some fireworks from this space today.Third rung stocks like Raj Television, Ajmera Realty and Global Vectra were among the high fliers. Mahindra Forgings continued to rise after M&M increased stake in the company at Rs 135 level.

We like Shipping stocks and investor should look at GE Shipping while it is worth taking an intra day position in Mercator Lines RS 60.75 might give a pleasant surprise to the upside. Mercator is my pick for the day today.Stay away from third rung counters and take some short term position sin quality Midcaps.

8 Shorts calls for Viewers

1. SHORT VOLTAS CMP 169 SL 173 TGT 165 / 162



2. SHORT UNION BANK CMP 270 / SL 275 / TGT 266 / 264



3. SHORT UCO BANK CMP 60 / SL 61.20 / TGT 59 / 58 /57



4. SHORT TITAN CMP 1810 / SL 1834 / TGT 1790 / 1780 /1770



5. SHORT PTC CMP 115 / 117 / 113 / 111



6. SHORT IDBI CMP 123.50 / SL 126 / TGT 120.20 / 118



7. SHORT BHEL CMP 2431 / SL 2451 / TGT 2411 / 2404 / 2394



8. SHORT CROMPTON GREVES CMP 443 / SL 448 / TGT 439 / 437

NIFTY WEEKLY ANALYSIS FOR WEEK ENDING 12 MARCH, 2010

WEEKLY INDICATORS:
ON WEEKLY CHARTS, THE CONTINUOUS SLIDE FROM 6TH JAN TOP OF 5310 NIFTY HAD TAKEN THE
WEEKLY INDICATORS AND OSCILATORS INTO THE LOWER ZONE, HOWEVER SMALL BOUNCE DURING PREVIOUS 3 WEEKS NIFTY WEEKLY INDICATORS TO TURN UP FROM OVERSOLD LEVELS BRINGING IN HOPES OF FURTHER RISE IN COMING WEEKS. WEEKLY RSI WHICH HAD GONE BELOW THE 50 MARK HAS INCHED UP TO 52 LEVELS, WEEKLY SLOW STOCHASTIC WHICH HAD GONE DOWN NEARER TO THE LOWER ZONE AT 20% HAS TURNED UP ABOVE THE 20 LEVEL, SIMILAR IS THE CASE WITH WEEKLY W%R THAT HAS ALSO TURNED UP JUST BEFORE ENTERING THE LOWER ZONE. WEEKLY MACD ALTHOUGH IS SLOPPING DOWN YET BOTH THE MACD & ITS SIGNAL LINE ARE ABOVE THE ZERO LINE. WEEKLY ADX AT 21, +VE DMI AT 22 & -VE DMI AT 17 ARE EARLY SIGNS OF BULLISHNESS OR CONTINUATION OF BULLISHNESS ON WEEK TO WEEK BASIS.
THERE IS EVERY POSSIBILITY OF RESUMPTION OF THE UP MOVE TOWARDS NEW HIGHS ABOVE 5310 IN NEXT FEW WEEKS, WITH A STRONG STOP LOSS OF 5026 AND FOLLOWED BY 4930 (BASIC SUPPORT LVL OF BULL)

AILY INDICATORS:
ON DAILY CHARTS, THE CONTINUOUS RISE FROM 8TH FEB, 2010 FROM NIFTY DAY LOW LVL 4675 TO TILL THIS 5TH MARCH 2010 OF NIFTY LVL 5118 = TOTAL 443 POINTS GAIN MADE NIFTY IN OVERBOGHT . NOW NIFTY TUNED WITH INTERNATIONAL MARKET, SPECIALLY DOW AND OTHER ASIAN MARKET.
IN DAILY CHARTS, RSI @ 63 MARK HAS INCHING UP EVERYDAY, DAILY SLOW STOCHASTIC IS AT 95 THIS IS HUGHE OVER HEATED OR AT OVERBOUGHT ZONE, SIMILAR IS THE CASE WITH DAILY W%R THAT HAS ALSO TURNED UP. DAILY MACD IS MOVING UP, YET BOTH THE MACD & ITS SIGNAL LINE ARE ABOVE THE ZERO LINE. DAILY ADX AT 31, POSITIVE DMI AT 27 & NEGATIVE DMI AT 15 ARE SLIGHTLY OVERBOGHT SO, ONE SHOULD BE CAUTIOUS FOR PAUSE / SIDEWAYS OR INTRADAY CORRECTIONS, BUT AS SOON AS NIFTY INDICATORS COOL DOWN, OR MAY CONTINUATION NIFTY AGAIN MOVE UP TOWARDS A NEW HIGH TILL 5049 AND 5002 NOT BREAKS, WE ARE AT BULL RUN.
NIFTY SUPPORTS - 5067 TO 5063 / 5049 / 5028 / LASTLY, 5002 – FOR DAILY BASIS
NIFTY RESISTANCE – 5115 / 5135 / 5165 / 5191 / 5220 / 5267 / FINALLY, 6TH JAN HIGH OF 5311