Market Review

Nifty and Bank Nifty looking very vulnerable, on the verge of vertical fall.

Time to Sell on Rise?

On the macro front, the headwinds are growing, be it the surge in the bond yields, boiling crude oil prices or the INR trading above 66 vis a vis the USD.    On top of that, the recently published RBI's MPC minutes seems to suggest that a rate hike is around the corner, may be as early as the second quarter of FY 19.

Technically too, the corrective move in Nifty from 9950 to 10600 is losing steam.    Bank Nifty is showing signs of weakness.

I suspect that the adage, 'Sell in May n Go Away',  may come true this time.

Trading Calls

Scrip              Call                CMP                 SL               Target              Deadline  

Cyient             Buy                577                   570              595                    June, 26

Techno           Buy                 464                  457               485                   June, 26  

Torrent           Buy                1335                1315            1370                   June, 26      
Pharma

Market Review

Nifty is giving qualms.    Going by what the market is anticipating from the US Federal Reserve Bank over the next 48 hours,  it appears that Nifty is on the verge of caving in.

The spectacular rally in the USD causing steep correction in gold prices,  the rise in the US treasury yields since last month,  the Euro trading at historic lows vis-a-vis the USD causing to erode the export competitiveness of US goods and services,  etc. are some of the factors that may augur hard times for equity markets going forward.

Trading Calls

Scrip                                   Call             CMP            S/L           Target          D/L                    

IPCA Lab                           Buy               713             699               740           Mar. 13    

Ruchi Soya                        Buy                48               46                 52           Mar. 13          

MRPL                                 Buy                68               66                73           Mar. 13        

Finolex Cables                  Buy                279           275                295          Mar. 13         

Ashoka Buildcon               Buy                188            180               205           Mar. 13      

Trading Calls

Scrip                 Call              CMP          S/L          Tgt. 1          Tgt. 2                D/L

Mindtree            Buy               1448          1422        1483            1510               Feb.  27              
JK Infra              Buy                553            545          570              580               Feb.  27              
Oberoi Realty     Buy                309            302          317              325               Feb. 27              

Trading Calls

Scrip                     Call            CMP         S/L          Tgt. 1           Tgt. 2           D/L                                  
Rolta India              Buy             134          129            138               142            Feb. 27                  
Advanta Ltd.           Buy             390          382            400               408            Feb. 27                


Above stocks may also be bought on correction.  
      

Trading Calls

 Scrip                    Call          CMP         S/L          Tgt. 1         Tgt. 2           D/L  

Amara Raja             Buy          848          838            862              880          Jan. 23
TVS Motors             Buy         320          310             332             340          Jan. 23
Glaxo                      Buy        3205        3185           3240           3265          Jan. 23
YES Bank               Buy          803          793            820              835         Jan.23 
JSW Energy            Buy          107          105            110              113         Jan. 23
Nerolac                   Buy         2240        2200          2290            2310         Jan. 23

Market Calls

Scrip                    CMP           Call        S/L            Tgt.1             Tgt. 2          D/L                     

Fag Bearing           3559           Buy        3515             3620               3710        Dec. 26            

MRF                    37871           Buy      37560           38350             38610              "                    

IPCA                       710           Buy         705               720                 730             "               

Pfizer                     2050           Buy       1983             2120                2155            "                  

Wockhardt               914           Buy        904                927                 953            "                         

Central Bank              85           Buy          84                 87                  90             "                     

Orient Bank              316          Buy         310                325                 330            "                  

Castrol                     507          Buy         501                514                 525            "                    

Vaibhav Global          599          Buy         590                611                 620             "                 

Market Calls

Scrip                       Call         S/L        Target 1         Target 2      Deadline    

Lupin                       Buy        1468          1498             1510           5th Dec.      
Strides Arcolab         Buy          835           864               872            "     "        
Shasun Pharma        Buy          240           255              259             "     "        
Pfizer                       Buy         1760         1815             1820            "     "        
J K Tyre                   Buy           658           682              690             "     "         
Karnataka Bank        Buy          142           149               155            "     "        
Central Bank            Buy             77             81                83            "     "       
Bank Of Baroda        Buy          1076         1120             1130            "     "        
Punjab Nat. Bank     Buy          1059         1110              1120            "     "         

Market Calls

Scrip                  Call          CMP         SL         Target 1     Target 2     Deadline

BPCL                  Buy         724.75       717            739              749          Nov. 7th
Tata Power             "            93.85         92.5           96              100            "      "
GAIL                      "          528.8         518            547              560            "      "
Maruti                    "         3337          3292          3425            3440            "      "
Andhra Bank          "            83.85         82              87.5             90            "      "
UCO Bank             "             87.45         86             92                95            "      "
HDFC Bank           "            911.85       907           922              930            "       "
ICICI Bank             "          1626          1612         1655            1675            "      "

Market Calls

Scrip               CMP          Call        SL         Target 1       Target 2       Deadline

Bajaj Auto       2529           Buy       2430          2590            2620            31st Oct.

Maruti             3165            "           3135          3315            3350                "           

Hero Motors    3110            "           3075          3210            3260                "            

Tata Motors      515            "             510            545              555                "         

Kotak Bank     1061           "            1036          1123            1142                "          

ICICI Bank      1575            "            1555          1625            1660               "        

Powergrid         139            "             138            146              149               "            
Gail                  481           "              465            490              495               "     

Siemens           858           "              835            895              905               "     

Engineers         266           "              255            287              297               "      

India

REC Ltd            284           "              277            294              300              "         

BOSCH Ltd   15003            "          14900         15500           15800             "      

BHEL               240            "              235            250              255              "       

  

HAPPY DIWALI

With the gleam of lights and echoes of prayers,
With the sweetness of sweets and fireworks glare,
Wishing you all a jubilant Diwali and a successful year.

Market Review

Both the International Monetary Fund and the European Central Bank President
have flagged growth concerns going forward.    There is a significant surge in
volatilities across asset classes like gold, crude oil, equities, etc.    Further, 
major equity indices of the world are dangerously trading at crucial technical
levels.    This is causing investors and traders to go long on government bonds
and short on equities.

Locally,  the manufacturing output data released post market hours on Friday
remained subdued at 0.4% in August.    Markets will react to this data on Monday.
Barring Infosys results on Friday,  nothing has been positive for the Indian markets
in the week goneby.    Now,  it is only the earnings season and the results of the
upcoming assembly elections that may save Indian markets from the fate of the
rest of the world.

Market Review

Rise in the US treasury yields is putting global markets in a tight spot.    Come
Wednesday Sep. 17th,  the US Federal Reserve Bank is going to decide on the
future course of interest rates and the mortgage backed securities & treasuries
purchase program.    The interest rate concerns in the US has caused the Asian
currencies ( particularly the South Korean Won,  the Indian INR and the Thailand
Baht ) to suffer the most.    Yet again,  the US may 'sneeze' causing the global
markets to contract flu.

Locally,  the industrial production data announced on Friday is not encouraging
either.    Given the rigidity in inflation,  the RBI will not turnaround the interest
rate trajectory in the near future.                                                                 

Going forward,  equities may continue to remain under pressure for the coming
week.    Therefore,  bulls beware.

Market Review

Globally,  equities are in an uptrend,  particularly the US.    The US dollar has
gained remarkably on account of a rate cut from the European Central Bank and
an announcement of quantitative easing program.    The positive US economic
data is also supporting the US dollar.    That is putting pressure on gold prices.

Locally,  fundamentals for India have improved.    Positive sentiment amongst
the foreign fund managers towards India is driving Indian markets higher.
Having said that,  Nifty is showing signs of fatigue on the upside.    Barring auto
and pharmaceutical sectors,  other sectors just appear to be languishing.  
Going forward,  Nifty may consolidate at higher levels for the coming week.  

Market Synopsis

Globally,  stock markets are in a correction mode.    US Dollar has gained against
major currencies over the last couple of weeks owing to strong economic data in
the USA.    Concerns of an Argentine debt default are weighing on the emerging  
markets.    No wonder did the currency traders turned out to be net sellers in the
emerging market funds.

Locally,  Indian markets have been languishing at higher levels without any
conviction for the past several trading sessions.    Markets will be keenly          
watching RBI's next move in its policy on 5th August.    If Friday's session in
Nifty is the harbinger of things to follow then a correction is on the anvil.

Market Synopsis

Indian markets have entered the zone of secular bull run.    In this regard,
a stable government at the center provides the necessary backbone.

However,  concerns like deficient monsoon,  the escalating crisis in Iraq
do weigh on the markets.    The prevalence of high interest rates in the economy
is another dampener.

Going forward,  markets will be mainly driven by the General Budget on 10th
July and the upcoming earnings season.

Market Trajectory

No matter how the world markets are doing, Indian markets are in a state of
frenzy. It appears that sooner or later, 7000 will be taken out on Nifty.

Market Outlook

Last week,  the US Federal Reserve stayed on its course on lowering its assets
purchase program,  dropping it by USD 10 billion to bring it down to USD 55 
billion a month.    It also released interest rate forecasts that predicted rates would
go up by 1% by end 2015 and 2.25% by end 2016.    Janet Yellen stated that rates
would start rising six months after the asset purchase program got over and that 
should be over by end 2014.    Markets quickly discounted the development.
Dollar Index rose,  gold prices fell and yields in the US rose.
Another development has been the stand off between Russia and the West over
Crimea.    Market analysts believe that any escalation of the crises will hurt 
emerging markets.

Regardless of all these headwinds,  Nifty is inching upwards on course to achieving
historic peaks by the time the elections got over.