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

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

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.

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

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

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

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