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The downward drift continues in Sensex slowly and has reached a touch below 8900. So continue to watch for a closing above 9500 or 8500 which will give some trading direction to the markets. The view remains the same as in last few days.

Stocks to watchout for :

Bharti Airtel .... if sustains below 610 shud tgt 575 on lower side. Traders keep a stop of 624 after initiation.

CAIRN India .. Below 128 could see 118 and above 141 can touch 155. Go as per trend.

HDFC Ltd and HDFC Bank are the heavyweights which may now become pivotals for markets. HDFC Bank is making a very risky pattern if it breaks 850 levels on closing basis. HDFC ltd seems could drift to 1300 zones also.

For today, nifty may retest yesterday's low once and may hold arnd 2640 levels.

2720 should be the SL for any shorts.

if trades above 2720, may hit 2765 levels for intraday, where it will again face resistence.

as of now, market still doesnt have much direction, and is just moving in a small range, so no positional view as of now...only if closes below 2640, the traders who are holding positional shorts, may still hold on, else one should book out and keep trades strict for intraday only. a closing below 2640 may show straight 2455 levels

Another 4% drop today brings us near to the lower Bollinger Band which is at 2514. Now, we are sure to hit the bottom at 2250. Harmony in symmetry is sure working!

The Indian market opened on weak note and drift lower as the day progress and not able sustain after small recovery in mid session and close in red zone . For the coming session2640-2622 will act support zone if we break 2622 it can test 2580 zone on the upper side 2751-2806 will act strong resistances zone market will more react on global cues.

at the moment nifty seems like following the downward sloping channel, but if weakness persists and the channel as well as the fibo lvl 2630 also breaks without giving a bounce, then next lvl to watch is 2546.

Aptech Train.
Sell Below 77.15, tgt 74.05, sl 78.70.

Central Bank
Sell Below 36, tgt 34.20, sl 36.75.

HDIL
Sell Below 106.50, tgt 102.20, sl 108.65.

JP Hydro
Sell Below 26.15, tgt 24.85, sl 26.70.

MRPL
Sell Below 37.55, tgt 35.65, sl 38.30.

RPL
Sell Below 75.30, tgt 72.25, sl 76.80.

Neyveli Lignite
Sell Below 54.10, tgt 51.90, sl 55.20.

Parsvnath Developers
Sell Below 38.40, tgt 36.45, sl 39.20.

Word Of Caution: Trade After 15 Minutes When The Market Opens with Strict Stop Losses.

Buy ICICIBANK Target: 376,388 SL: 364

Buy LITL Target: 127,131 SL: 122

Buy ROLTA Target: 190,196 SL: 182

Sell RELIANCE Target: 1140, 1120 SL: 1168

Buy HDFCBANK Target: 934,944 SL: 929

Stocks With PE Less then Five:

The recent stock market carnage has spared not even fundamentally strong stocks. Thus, some very good stocks are trading at a PE of less then 5. It's true that forward PE always is a better indicator of valuations. But these stocks should not have very significant decline in earnings. So current low PE makes then attractive bets.

1)Financial Technologies (India) Ltd - PE ratio 3.22

2)Ruchi Soya Industries Ltd - PE ratio 3.98

3)Jindal Saw Ltd - PE ratio 2.23

4)Hindustan Zinc Ltd - PE ratio 3.48

5)Sterlite Technologies Ltd - PE ratio 3.81



Attractive Stocks in the Agriculture Sector:


This is one sector which will do very well the next time the markets make a upmove. That might be sometime away but slow accumulation on these stocks can be considered.

1)Jain Irrigation Systems Ltd

2)Kaveri Seed Company Ltd

3)Karuturi Global Ltd



Attractive Stocks in the Water Sector:

Two stocks which might be big companies of the future in the water related sector in my opinion are:

1)Subhash Projects & Marketing Ltd

2)Mount Everest Mineral Water Ltd

Should You buy in big numbers now:
If anyone does plan to buy any stock for long term also then he/she should buy only in small numbers. No one can say for sure that the stock markets have bottomed out or are even close to that. Yes some valuations are very attractive but it might get more attractive. So I would suggest to invest only 10-15% of the money allocated towards investment purpose in stocks now. For now capital preservation is the top priority.