Expiry on Thursday , Beware !!

Markets closed just above important resistance levels of 4270 . Tomorrow is expiry day and bias is on upside now .

- US markets are trading Flat .
- GM is close to bankruptcy .

I expect market to open flat tomorrow and it might start its upmove towards R1 levels of 4337 .

R2 4,397
R1 4,337
Pivot 4,226
S1 4,165
S2 4,055

I expect market to open flat to low and then start its upmove high. I am planning to avoid trading tomorrow . People who want to trade should buy at dips only and that too for June series . Last day of expiry can be very risky .

USA,EUROPE,SGX NIFTY PLAYING SMART WITH INDIAN MKTS

USA,EUROPE ,AND SGX NIFTY are playing smart with Indian Investors sentiments.By the time we open SGX NIFTY comes off from days high,ASIAN mkts also follow,the whole day NASDAQ,DOW remains in negative territory followed by EUROPIAN MKTS after seeing all these effects our mkts also tend down. But the trick is that they show us negative and after we close these mkts trade well above what they showed us in our trading hours.All these international mkts have shown a pattern as our old proverb says ( THE TEETH WHICH ARE SHOWN TO US ARE DIFFERENT THAN THOSE ACTUAL TEETH).Seeing the negative effect on our mkts MARCh FABER an oppurtunist Investors starts shouting on TV from HONG KONG that MKTS MAY GO DOWN TO 10000 TO 12000,and the DALAL STREET starts getting HALAL. I swear this old man is such a negative mentality person that when ever there is some weak sentiments prevailing this man never leaves a single stone unturned to spoil the mkt mood.After all who the hell is he and why should we listen and interview this person whose contributions and analysis carry no significant impact on our mkts.Probably he has missed the rally and by telling negative things he wants to enter Indian mkts.When the whole world is cheering INDIANNOMICS and SENSEX TRGT SET TO CROSS 22000 in couple of months,after all we should forgive him since he cannot control or predict USA economy from where he belongs what he will tell about our economy plz neglect this old mans comments.

Rupee may climb to 46 a dollar in 12 months

The Indian rupee is likely to appreciate to 46 a dollar in the backdrop of a stable government at the centre and relatively resilient domestic demand, says a report by global financial services giant Goldman Sachs.

"We expect the INR to appreciate further from current levels as the stable government and relatively resilient domestic demand become key catalysts for foreign inflows," the report said, adding that the Indian currency "may touch Rs 46 to a dollar within 12 months."

Noting that there are significant pressures for rupee appreciation, the report said that the Indian currency gained about 5 per cent against dollar since the victory for the Congress-led UPA in the general elections.

With the rupee strengthening, it said the sectors dependent on imports will gain, the exports will be hit.

"Oil distribution, fertiliser and capital goods companies are amongst the largest importers and are likely to benefit from a stronger INR. On the other hand, IT, textiles, pharmaceutical, and export-oriented oil refining are likely to be hit by a strong INR," the report added.

Having appreciated during the last six trading sessions, rupee on Monday declined by 22 paise to 47.32 a dollar in early trade on expectations of fresh capital outflow by foreign funds.

Source - Rediff.com

Reliance Mutual Fund launches infra fund

Reliance Anil Dhirubhai Ambani group-controlled Reliance Mutual Fund, today annnounced the launch of its Reliance Infrastructure Fund.

The infrastructure fund, an open-ended fund, will invest predominantly in companies engaged in infrastructure and infrastructure-related sectors in the country, Reliance Capital Asset Management CEO Sundeep Sikka told reporters here.

The primary investment objective of the fund will be to generate long-term capital appreciation. It will invest in equity and equity-related instruments of companies engaged in infrastructure and infrastructure-related sectors like transport, banks and financial institutions, energy, power and oil, metals and minerals, telecom and urban infrastructure amongst others.

"Infrastructure is a key priority for India and we hope a spurt of infrastructure spending in the economy on the back of a stable Government and ease of project financing," Sikka said.

The right time is now to invest in infrastructure and infrastructure-related firms, a sector which is likely to get a boost from the new government, he said.

"The valuations look more attractive and the environment stable with the new government settling in. This makes it the right time to launch an infastructure fund more than ever," Sikka said.

The new fund offers two plans-Retail and Institutional. Each plan has a growth and dividend plan option.

The fund will invest at least 65 per cent of its assets in engineering, cement and power stocks as well as banks, whereas the rest will be invested in debt and money markets.

"We expect investors in large numbers to participate in the ever-growing sector with long-term capital appreciation," Sikka said.

Reliance MF saw no meaningful redemptions in the last one year and is very optimistic on global flows into India.

The fund-house is currently avoiding sectors that can be hurt by a rupee rise.It was currently overweight on the textile and pharmaceutical sectors and underweight on the information technology sector.

The fund-house is keen to buy shares of PSUs when their disinvestment takes place and if valuations are good, a Reliance Mutual Fund official said on condition of anonymity.

Reliance Mutual Fund is managing a corpus of over Rs 88,388 crore for over 71-lakh investors as on April 2009.
Source : Business Standard

Market tips and Predection for 27th May.

Yesterday we saw Indian Markets witnessing profit booking because of which we ended in deep red.
US markets ended positive.
Europe also ended positive.
Asia is trading positive.
Expect the Indian Markets to have a gap up opening.
The support for the Sensex is 13278-12889 and the resistance to the up move is at 13820
Nifty: (4117) the support for the Nifty is at 4022-3907 and the resistance to the up move is at 4205

Day Trading Ideas :

IFCI Buy above 45.80 for targets of 46.50 and 47.25 with SL of 43.

HDIL Buy above 268 for targets of 274 and 278 with SL of 260.

LNT Buy above 1261 for targets of 1270 and 1728 with SL of 1249

Happy Investing !

Why Market went up by more than 500 points ?

Sensex ended up 3.83 percent or 520.41 points at 14109.64. The Advance-Decline ratio stood at 7:1. Realty, Banking, Power, Metal and Capital Goods sectors surged in today’s trade. Realty ended up 6.17%, Banking ended up 5.15%, Power ended up 4.92, Metal ended up 4.45% and Capital Goods ended up 4.14%.Major Index gainer was Reliance Infra, which ended up 14.79%. Other index gainers were Sterlite Industries, DLF, ONGC, Grasim Industries, Ranbaxy Labs, ICICI Bank and JP Associates.
Finance Minister Pranab Mukherjee helped the sensex to have a another big leap by organizing a press conference.

>The government will try to complete the budget process before July 31 and will present budget in the first week of July.
>He said that reviving the economy growth momentum is the top most priority of the government.
>Fiscal prudence has also to be kept in mind.
>He said the government is assessing an impact of 3 doses of economic stimulus which have been given already. >He said the Industrial business has been hurt by the cost of funds and availability and for that he wants the banks to commit to more plan of action and said will talk to the bankers regarding the intrest rate in which they give loans to these industries.
>He further said that the government will focus on infrastructure in the Union Budget.
>The pipeline of infra projects will be re-appraised.
>He said the Budget will streamline the norms to boost the core sector investment.
>He said that the government is focussed on fiscal consolidation over the next 2-3 years.
>He Said that the government will address measures for financial sector and will make anti-money laundering regime stronger.
>He said that Incremental government borrowing will continue this fiscal year.
>He feels that the growth of 6.5-7% is a respectable rate.
>Debt management office is under consideration. He hopes that the banks will take advantage of RBI rate cuts.
>He said the government will address export oriented sectors like Textiles, Jewellery & Leathers, he added.

He almost touched those sector which needs good push to grow and not go in negative path.

NHPC IPO to hit market by July

NHPC IPO which filed DHRP almost in 2008 , may come out with the ipo by endif july or august 2009.The size of the IPO is likely to be between 2000-3000 crore , with this market condition im sure everyone will try to come out with the delayed IPO and have some fund out of it .