NEWSLETTER 26.08.08

Sonata Software has formed diamond bottom with huge volumes. Buy with a target of 25% to 30% return within 3~4 weeks.

Nifty at a support of 4300 and 4250 with resistance at 4360 and 4400 levels.

Cash: Buy RELINFRA above 1002 target 1060 with 987.

Cash: Buy PUNJLLOYD above 282 targets 295 with S/L 272.

Future: Buy BOB above 266 targets 280 with S/L 258.

Future: Buy HDFC BANK above 1240 target 1310 with S/L 1220.

Nifty (4338) Sup 4290 Res 4400

Buy M&M (573) SL 568
Target 583, 585

Buy Crompton Greaves (267)
SL 263 Target 275, 277

Buy Sun Pharma (1488)
SL 1470 Target 1530, 1540

Buy Kotak Bank (597)
SL 592 Target 607, 610

Sell Unitech (160)
SL 163 Target 154, 152

Positional/Delivery Calls :-

1) Buy Aban Lloyd Ltd at cmp 2140-2145 Target 2500 by September End...

2) Buy Amtek Auto Ltd at cmp 170-172 Target 222 by September End...

3) Accumulate Tata Steel Ltd between 560-580 levels for Delivery/Positional Target 1000 within 1 year...

4) WWIL set for a Target of 34 & 38 by October end...

5) Accumulate Videocon Ind at cmp 270-275 Target 420 within 3 months....

6) Buy Prajay Engineers Ltd at cmp 60-62 Set for a Target of 120 (Double) within 6 months...

7) Accumulate Pyramid Samira theaters Ltd at cmp 142-145 Target 224 & 248 within 3 months...

8) Indian Hotels Ltd ready to spurt up to 108 & 116 levels within 2 months....

9) Gujarat Ambuja Cements Ltd set to fly up to 112 & 120 levels .... in 3-4 months...

10) Radico Khaitan Ltd Target 94 & 108....cmp 70-72

Nifty View - In coming 8-12 months Nifty Range 4050/4100 on the downside & on the upside maximum of 4800 to 5000 levels...it is in the consolidation mode...Expect new highs in Nifty after 1 to 1.5 years....

1. Sharekhan has suggested tip for Infosys Technology as Buy with target price as 2,130.00

2. India Infoline has suggested tip for Kalpataru Power as Buy with target price as 1,047.00

3. Reliance Money has suggested tip for Take Solutions Ltd. as Buy with target price as 760.00

4. CLSA has suggested tip for DLF Ltd. as Underperformer with target price as 510.00

5. HDFC Securities has suggested tip for Tata Motors Ltd. as Sell with target price as 454.00

6. Karvy Stock Broking has suggested tip for Jubilant Organosys as Outperformer with target price as 428.00

7. CLSA has suggested tip for Zee Entertainment En as Buy with target price as 280.00

8. India Infoline has suggested tip for Phillips Carbon as Buy with target price as 250.00

9. Angel Broking has suggested tip for Balaji Telefilms Ltd as Buy with target price as 215.00

Dated: August 26, 2008

MARUTI (625)

Maruti had a v good rise due to crude coming down sharply last month. However, it has given up almost all its gains mainly due to high inflation and steel prices which most probably will effect its 2nd quarter results.

The stock may come down to 525 levels if it breaks the support of 600 in the coming days, hence those who have bought the stock recently, should remain cautious on there trading strategy.

We are basically not going anywhere and are stuck in the 4400 - 4250 range. The stage is being set for a bigger move - probably a downward breakout. Note the falling ATR. As of now 4250 holds but is likely to breakdown.

Buy Sail - Target 165 - Within One Month
Buy Hindustan Dorr Oliver - Target 118 - Within One Month

Stock Close Stop Loss Target
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SBI 1370 1360 1389-1408
BHEL 1721 1704 1745-1768
L & T 2618 2601 2641-2664
Reli. Inf 1001 990 1016-1030
ICI Bank 666 651 686-705
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Nifty Close : 4337
Good above : 4322
Resistance : 4360-4383
Suport : 4298-4260
_________________________

Market may open down. Market may up between 10.32 and 10.49 Market may steady or up side between 11.55 and 12.15. Market may close at up to previous closing.




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Opening Bell Call
Buy

RELIANCE - Reliance Industries Ltd
NEYVELILIG - Neyveli Lignite Corporation Limited
RNRL - Reliance Natural Resources Limited
IFCI - IFCI Limited
PUNJLLOYD - Punj Lloyd Limited
POLARIS - Polaris Software Lab Limited

On 26th August 2008 - The BSE Sensex closed at 14482 (up 31 points) while the NSE Nifty closed at 4,337 (up 2 points).

Opening Bell Call
Sell

SUZLON - Suzlon Energy Limited
TCS - Tata Consultancy Services Limited
NIITTECH - NIIT Technologies Limited
ELECON - Elecon Engineering Co Ltd
TATASTEEL - Tata Steel Limited

Technical Analysis for 27th August 2008

BSE-SENSEX - Major Support - 14421, 14384, 14347, 14279, 14212, 14107, 14003
BSE-SENSEX - Major Resistance - 14488, 14556, 14593, 14630, 14734, 14839, 14943

NSE-NIFTY - Major Support - 4321, 4310, 4298, 4279, 4259, 4228, 4197, 4166
NSE-NIFTY - Major Resistance - 4341, 4360, 4372, 4383, 4414, 4445, 4476, 4507

Sensex Technical View :
Sensex seems cramped for last few days waiting for a trigger to either hit 14100/13700 or take a shot at 14800/15100 + . Well where would it go ! wont like to take a speculative bet and wait for the markets to give a cue and then take a call coz it can remain sideways for more time also.
Its not necessary to trade everyday !!!

Market Observations :
Change of hands in pennar inds is something happening?? .Vintage Cards reduction of capital and then zooming ! isnt it unusual !

Crude and gold getting in a range too .. Crude reacts from 122 to sub 113 and bounces. Gold frm 840 to 810 and bounces. All markets seem to be in sleepy mood.

Stocks to watchout for :

IDFC seems to be settling around the 90 zone . Can buy for a bounce near to 90-93 with a stop of 88.

Jindal Saw and Motilal Oswal look good for bottom fishing. Investors will need patience to see returns as slow movers.

Cipla above 243 and Gtl infra above 42.5 could see some momentum for quick traders.

Again gonna be another flat and volatile day. below 4333 nifty fut will be weak, but may not break 4290 for the day.

sustaining above 4333, nifty will be bullish and can hit 4360-4386 for the day.

it will be very slow and volatile movement, so trade cautiously.

a closing above 4360 will be very bullsh.


The markets again remained sluggish and showed directionless movement.
Technically the markets looks more volatile and should see some more upsides on bouts of short covering.
However due to f/o expiry week , the markets are likely to remain sluggish with huge volatility.
The frontline indices are stuck in a range on both sides and doesn’t gives a good feeling to a trader.
Structurally the markets will again see whipsaw movement and will show directionless movement.
The supports for the nifty is at 4275 levels and resistance at 4450 levels
The supports for the sensex is at 14250 levels and resistance at 14700 levels


Stocks to watch

Icici bank

Tinplate

Core projects

Nifty :: Once again Nifty close above channel support. Last candle made Long Legged Doji. A bullish sign with three white candles, but still too many strong resistances at higher level watch strong resistance 4374 for break out, above 4374 momentum turns up and above 4400 momentum once again turn strong. Till then our strategy for 27th Aug. Sell at high (S.L 4400) buy on deep (S.L 4263).Supports at 4329/4300/4291/4263/4211.. Resistance for up move at 4348/4374/4395/4400/4433/4447/4495..
(Avoid shorting above 4400)

NIFTY HAS MAJOR RESISTANCE AT 4355 AND 4367 LEVELS.....SO TRADE CAUTIOUSLY AS FRM THESE LEVELS DOWNSIDE CAN BE EXPECTED....WILL STICK TO MY ST TARGET OF 4227 IF CLOSING IS BELOW 4355...RELIANCE INDS STILL IN BEARISH MODE...2201 CAN COME TMRW...BUT OVERALL DOWNSIDE XPECTED IN D COUNTER.


Yesterday indian market didn't take any negatives of global cues and this is only because of expiry setting up and today it looks good, but volatility will continue for this week.On global scenario,The Dow Jones closed up 26.05 points at 11,412.30 and U.S. crude settled up $1.16 at $116.27 a barrel.Oil is raising and is little concern now and market mover Reliance Industries is struggling a lot and unless it clears its hurdles at 2220 and 2250, it will remain weak only and will face selling at higher levels.Lots of volatility is seen in this expiry time.For today, if nifty breaks above 4340, it will face strong hurdle at 4380-4390 and failure to cross will invite heavy selling and if gets past that resistances it will race to 4420. On downside, 4280 will act as strong support for nifty today.

Stock watch for the day:

Kotak Bank (598): Buy this stock with stop loss 586 for target 615-620

The Indian market opened on weak note and saw smart recovery at the last hour of trading session .For the coming session we can expect more upside towards 4400- 4423 levels .on the upside 4431 will act strong resistances and that is key levels if nifty able to cross 4450 we can see nifty testing 4700-4750 levels on the lower side 4284 will act as support zone
27aug callBUY HCLTECH ABOVE 231 TGT 235>239 STOPLOSS 229
BUY HDFCBANK ABOVE 1262 TGT 1276>1295STOPLOSS 1251

The Nifty opened weak today and remained flat for the next couple of hours today. It was only at noon that the upmove started and except for a small three quarters of an hour long correction at about 1pm, it remained a unidirectional move for the Nifty from 12 noon. This move was so good that the Nifty, which was about 50 points in the red, managed to close 2 points in the green before the day ended. In the process, it formed another doji and this time it was a dragonfly doji, generally a bullish sign. This is what Street Authority says about a dragonfly doji.

Seen above is the daily chart of the Nifty along with the Directional Movement ADX Indicator. As mentioned in earlier posts, the Nifty is locked inside a trading range inside 4200-4650, as is shown in the green rectangle. The directional movement ADX indicator is the speedometer of a trend. Like the speedometer of a car measures the speed of the car, the ADX indicator measures the speed of the trend. We get a rising line when a trend is in place, irrespective of whether it is a downtrend or an uptrend, and a falling one when the market slows down and is going through less volatile patches. Values below 20 means that the markets are currently inside a trading range and a move outside the trading range should be profitable. Values above 25 should be traded depending on the direction of the trend. Values between 10 and 15 are considered to be extreme values and rarely does the ADX indicator fall below this range. A rising line from these levels seen in conjunction with a breakout may be a good time to enter the trend.

1. Indian stock market free advice: Nifty is not in a decisive mode. Nifty 4421- 4481 are key crucial levels.

2. Profit from daily stock tips of India: Great offshore gave a profit of Rs 1585, Akruti nirman gave a profit of Rs 390, HDFC stock strategy was not executed as entry price for stock was not reached, NIIT tech gave a profit of Rs 130 and House of pearls gave a profit of Rs 270 for every 100 shares traded as per recommendation given. One can reenter Akruti nirman with suggested price level for yesterday but do trail the profit.

3. Make daily money with Strong Future Stocks data

Crompton Greaves
Kotak Mahindra
Ansal prop
Rolta
HDFC
Polaris Software
AIA Engineering
Great offshore
Indian BK
Strideds Arcolab

4. Avoid losing money in stock market with Weak future stocks data availability

Housing devp
Aban
NDTV
Gitanjali gems
Tisco
Bongaigaon
Amtek auto
Chennai Petroleum
Suzlon energy
Jaiprakash associates

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Buy TCS>837.1,843,850 sl 833
Buy Torrent Pharma>200.5,202.4,204,209 sl 197
Buy Kotak Mahindra bank>600.5,604,612,627 sl 596.8
Buy KS oils>72.1,73,74.5 sl 69.8 (stock can be held for 3 months and one can read detailed tip for KS oils at millionaire blog.
Buy Great offshore>475.1,484,496 sl 469.8
Buy HDFC bank>1255.1,1262,1276,1300 sl 1248.8