Markets For 12-11-2008

NEW YORK: General Motors Corp, the biggest US automaker, should file for bankruptcy rather than taking money from the government, hedge fund manager Bill Ackman said. “It has been hamstrung for years because it has too much debt and it has contracts that are uneconomic,” Ackman, manager of the Pershing Square Capital Management LP hedge fund in New York, said. “The way to solve that problem is not to lend more money. They should do pre-packaged bankruptcy.”

GM is petitioning the US government for aid after saying last week that it may not have enough cash to operate this year. A bankruptcy would leave bondholders in control of the company in exchange for forgiving some debts, Ackman said.

GM dropped to its lowest level in 59 years yesterday after a Deutsche Bank AG analyst downgraded the shares and said they may be worthless in a year. The slump demonstrated mounting pessimism that a turnaround will succeed at the automaker amid a global credit crisis and the worst sales market in at least 15 years.

Meanwhile, GM fell 1 dollar, or 23%, to 3.36 dollar in New York Stock Exchange composite trading yesterday, its lowest close since June 17, 1949, according to Global Financial Data in Los Angeles.

The shares have lost 86 per cent of their value this year.

NSE Index (C-2938.65)

Resistance : 2970/3005/3050/3085/3175/3230

Support : 2920-Weak/2860/2815/2775/2640/2600

BSE Sensex (C-9839.69)

Resistance : 10015/10230/10620/10750/11200

Support : 9800-Weak/9625-free fall/9410/8900/8765

Nifty Future (C-2928.40)

Resistance : 2960/3000/3055/3085/3240

Support : 2905-Weak/2860/2825-free fall/2750

Bank Future (C-4926.80)

Resistance : 5015/5130/5335

Support : 4900-Weak/4815/4700

MKT COMMENTS

NIFTY FUT OI flat with 51% increasing volumes indicating panic unwinding of long positions and forming of fresh short positions too.

We expect NIFTY FUT to show down move with volatility.

Tomorrow(12-11-2008) Once again market may go further down. IF nifty stay below 2850 with Short volumes it may test 2781. BSE may test 8900.

Today(11-11-2008) New Short positions created by FII, HNIs in
SUZLON, RIL, TISCO, DLF, TATA POWER, R Power, R Infra, Ranbaxy, Satyam.

Opening is flat to down,

Stay Short below 2980,Sl above 3010 tgt 2855-2770.

Sustain Above 3010,Buy with Sl below 2990 tgt 3085-3160.

Scrip	Trigger	Price	Stop Loss	Target 1	Target 2
CIPLA	BUY ABOVE	203.90	202.05	206.15	209.35
	SELL BELOW	199.45	201.25	197.25	194.20
MARUTI	BUY ABOVE	579.75	574.50	586.10	595.20
	SELL BELOW	567.10	572.20	560.85	552.20

Tata Powers (Last closed = 753 ) Sell with stop loss above 774 tgt-732-720.

HDFC LTD (C-1659.3):

Looking Weak:Sell around 1687,Target1-1605+++,Resistance1-1741-Resistance2-1822

HDFC BANK (C-1023.35):

Looking Weak: Sell around 1042 Target1-996+++,Resistance1-1069-Resistance2-1115

Selling Expected In MUNDRA PORT If Breaks 340-338

Sell IVRCL INFRA Below 137,Tgt 130/125,Sl 140

WELGUJ: Sell below 114 keep stoploss at 118 lower targets 110, 105 and more

KOTAK BANK : Sell below 395 keep stoploss at 401 lower targets 390, 85, 80 and more

(FORMAT : NAME OF STOCK – CMP – STOP-LOSS - TARGET-1/2/3)

NTPC : 150 - 52 - 147/45/41 ( Sell )

OPTO CIR : 94 - 95 - 90/88/85 ( Sell )

Positional / Delivery Selling ( December End )

Sell Around

RIL : 1320-1350,Sl : 1430
REL : 645-665,Sl : 695
BOI : 290-300,Sl : 315
KOTAK : 450-470,Sl : 505
TATACOMM : 495-525,Sl:555