Markets Poissed For May 12 , 2008

Market Analysis and Outlook for 12-05-08,Monday

Dow closed in red.Nifty broke 5000..market may see good downside tomorrow.put stoplosses to all ur trades tomorrow

NIFTY Analysis :

Nifty faced strong selling pressure due to weak global closing and rising oil prices. Technically it was a very weak week with Nifty simultaneously closed below its 200 DMA (5179) and 50 WMA (5042) at one go. Since we are expecting Nifty to touch 5500 mark but the unsustainability of Nifty above 5200 indicates that we are in a strong sideways market with two distinct trading zones. One is between 4500-4900 and the other one is between 4900- 5300. On daily chart Nifty has a strong support around 4910 as the short term trendline moves around 4910 level.So Nifty may get support around 4900.If Nifty breaks and closes below 4900, then there will be more chances that Nifty may test 4500 level again. Unless Nifty closes above 5200, use rallies to cut long positions in the market. For Monday, support exists at 4950 and then at 4910 and on upside, resistance exists around 5025 and then at 5070. (200 DMA – 5179, 200DMA for SENSEX – 17470, 50 WMA for NIFTY – 5044).

BSE SENSEX :

For a day trader, If trade above 16846 then next target is 17015 to 17293 level. support @ 16568 break below create bloodbath in market up to 16399 to 16121 level.

NIFTY FUTURE :

For a day trader, It will get support @ 4938 and if break this then panic up to 4894 to 4820 is expected. and at upside above 5112 it will face hurdle @ 5056 and then @ 5130.

Nifty Spot price: 4982

Only negative cues prevailing for tommorow's market. Inflation and Crude Oil fears to demolish traders and Investors sentiment.

So what we can expect from tommorow's market. Traders are in thought that is there any chance of sustaining the uptrend what we saw last month? Will bulls restore the place of bears despite global weakness? And what nifty charts are telling whether to short nifty or to go long at lower levels?

Taking all these things we had made a safest futures and option strategies in Nifty to be followed on monday market. Here we go

Nifty Strategy:

Gap down opening may possible on tommorow( 12th May,2008 ). If Nifty breaks 4940-4950 band then next support at 4740. So if we want to sustain the upmove then we should hold 4950. So Nifty may try to breach 4950 and even 4880 and then a bounce back to 4950 at late trade or one can expect even above.

So be carefull while selecting stop loss.

And go long if 4950 recover. Else remain short the nifty below 4950 with stop loss at 4982. And keep lowering your stoploss whenever nifty cracks down

Right now technical indicators show strong sell Signals and there is a chance of turn around and also have an eye on Yen currently trading at 102.85/dollar. More the yen appreciation more the FII selling pressure.

Tips & Some Trading Advice :
12th May'2008

Monday 12th May Sensex Range 16,419 - 16,391 - 16,364 Opportunity to by INDEX CALL, Tisco short covering, Market will UP on TUE & WED

The Stocks we are looking to BUY on Cheap are:-RPL,UNITECH,DLF,KOTAKBANK,
PVR,POWER GRID...

RPL
Buy abv 184.30 sl 183.10 t 187/189
Sell bel 179.40 sl 181.20 t 177/173

Rajesh Expo

Buy abv 98 sl 96.30 t100/102
Sell bel 96 sl 97.20 t 94/91.

RENUKA

BUY ABOVE 129.00 sl 127.85 TAr 130.30 - 132.20
SELL BELOW 126.45 sl 127.60 Tar 125.20 - 123.35

Gss America

Buy abv 393.30 sl 389 t 397/401
Sell bel 385.40 sl 389 t 381/377.

HTMT GLOBAL Buy above 420.45, SL 418.30, TAR:426/430

SATYAM COMP :
If trade above 473 then zoom to kiss 483 to 492 level. support @ 464 and then 455.

BHARTI AIRTEL :
Above 834 no problem for bull, it will zoom to kiss 866 to 892 level. support @ 808 and then 776.

Sell GAIL May Fut @ 410. Target 380. Keep Strict Stop loss at 420.

Sell CORPBANK @Below 339 Target 335-329 to 316.SSL357.

DOVERSECU : TP 190,SL 187,Tgt 204--215

IFCI : TP 60,SL 59,Tgt 62—65.

Sell IOB@Below 148 T: 147-145 to 142 SL 152.

Sell M&M@Below 671 Target 667-659 to 644 SL 691.

Sell Sail@Below 166 Target 165-162 to 258 SL:173.

Cairn India seems to be one of the strongest stocks in the market now.. target price of Rs 300 and possibly even Rs 360... Now 283, sup.240

Sell NIFTY @ Above5001 and Below5069 Target:4940-4910-4870-4730. SSL5110

Buy KOTAKBANK June Future @ 805-15 , NO S/L CALL , Target 925-1000 before JUNE EXPIRY.

INVESTMENT IDEA:-

Buy GRASIM at cmp:2340. Target 3000.
Buy BHARTI AIRTEL at cmp : 847. Target 1100
Buy PETRONET LNG for Next Week at cmp:76. Target 90.
Buy GSPL for next week at cmp : 67. Target 107.

Very Huge RiskyTraders ( High Risk / Pure Intraday ) :

Nifty level

Buy abv 5010 sl4999 t 5034/5055

Sell bel 4961 sl 4985 t 4936/4917/4870.

News :

Apollo Tyres to invest 200m in Budapest plant.

Asian Paints Q4 cons net profit at Rs 94.52 cr.

Ashok Leyland to double capacity within three years

ICICI Securities, the investment banking arm of ICICI Bank, will come out with initial public offer very soon.

Reliance recei. the PE 100 certification from M/s Bodycote,Sweden.This is a rare achievement.RIL the only Indian and seventh Asian producer.