Markets For 05/03/2009

RBI cuts Repo,Reverse Repo by 50 bps each

The Reserve Bank of India has announced the long awaited rate cut. It has reduced the repo rate by 50 basis points to 5% and cut the reverse repo rate by 50 basis points to 3.5% with immediate effect. Bankers and industry leaders have cheered the rate cut, but most feel the move should have come earlier. They feel the cut in reverse repo rate will force banks to lend more to industry which is badly in need of funds.

NIFTY (2645.2)

Resistance : 2660 / 2690 / 2745

Support : 2620 / 2605 / 2590 / 2530

SENSEX

Resistance : 8510 / 8570

Support : 8375 / 8310

NIFTY FUT (2630)

Resistance : 2655 / 2675 / 2690 / 2710 / 2750

Support : 2615 / 2595 / 2680 / 2565

MKT COMMENTS

NIFTY FUT OI down 5.62% with 4% decreasing volumes indicating short covering.

We expect NIFTY FUT to bounce from lower levels with volatility.

On Thursday,Opening is Flat to Up,

Stay Short Below 2625 ,Sl Above 2640,Tgt 2605-2600-2575-2555,

Sustain Above 2645,Buy with Sl Below 2630,Tgt 2665-2680-2725

Positional Risky Traders (Positional)

Buy NIFTY Abv 2640,Sl Blw 2580(On Closing Basis),Tgt 2665/80/90/2700/2715/2725

Buy NIFTY 2700 Call,Sl 25,Tgt 100/10/25++

Buy RELCAP 320/25,Tgt 330/35/40,Sl 315

Buy AUROBINDO PHARMA Above 165,Tgt 170/75,Sl 160

Buy TATASTEEL Above 155,Tgt 160/65/70,Sl 150

Buy ACC Above 540,Tgt 555-570-595,Sl 525

Buy BAJAJAUTO Above 490,Tgt 500-510-525,Sl 485

Buy BHARTI Above 600,Tgt 610-620-640,Sl 590

Buy STER Above 245,Tgt 255-260-275,Sl 240

Sell TATASTEEL Below 155,Tgt 150-145-140,Sl 160

Sell M&M Below 315,Tgt 310-300-295,Sl 320

BHARTIAIRTEL looking more downtrend advised to away from this stock.

We maintain Selling by making Stoploss 615,Target 580/565

KOTAKBANK : Kotak Bank trend is Negative we can see more downtrend advisable to Sell on cmp or on rally Stoploss Above 240,Target 230/20/10++

Positive Stocks:-

IVRCL INFRA Above 110-15;TECHM Above 250

Auto Stocks HEROHONDA & MARUTI also show positive trend and more rallies shown in both stocks

FUTURES

STERLITE (245.8) : Buy 240/245,Sl 235,Tgt 250/55+

REL (457.6) : Buy @ 450/53,Sl 445,Tgt 465/75+

CIPLA (202.5) : Buy @ 195/200,Sl 190,Tgt 205/10/15+

Buy CENTURY TEXT@ 178/80,Tgt 182/183.2/185.3/187.1/189/191/193,Sl 170 (Lot Size : 1696)

Sell HDFC @1170/65,Tgt 1160/55/45/35/25/15/05/1090/1075,Sl 1180 (Lot Size : 150)

Buy RELIANCEIND on Every Deep,Tgt 1350/1400/80++
Sell RPL On Every Rise,Tgt 60 (STRATEGY FOR FUTURE TRADERS)

Technical Levels for 05 March 2009
Symbol	RES 1	RES 2	RES 3	Pivot	Support 1	Support 2	Support 3	Trading Signal
GOLD	15249.33	15414.67	15544.33	15119.67	14954.33	14824.67	14659.33	Sell Signal
LEAD	59.30	60.10	61.70	57.70	56.90	55.30	54.50	Buy Signal
SILVER	22285.00	22553.00	22827.00	22011.00	21743.00	21469.00	21201.00	Buy Signal
COPPER	194.05	197.20	202.70	188.55	185.40	179.90	176.75	Buy Signal
NICKEL	519.33	523.87	531.53	511.67	507.13	499.47	494.93	Buy Signal
CRUDEOIL	2346.00	2397.00	2497.00	2246.00	2195.00	2095.00	2044.00	Buy Signal
ZINC	62.62	63.73	65.77	60.58	59.47	57.43	56.32	Buy Signal

World Markets - Astrologically

Crude Oil / Gold / Silver

Crude Oil likely to remain positive this week particularly on 2nd and 04th but on both days profit booking will trim early gains. Overall after 05th March there will be corrective decline in crude till 11th March. Both Gold and Silver despite occasional rallies and recoveries likely to lose much of the gains till 25th March. Long positions in general may be avoided for 1 month however Intraday rise on 04th/ 05th as well as early 02nd in not ruled out.

US Dollar/ Indian Rupee ( USDINR)
Astrologically, Indian Rupee may weaken further on 02nd and 04th March despite the fact that corrective declines expected till 06th March but after 06th March, US Dollar may again turn stronger against Indian Rupee till 10th or 11th.

US Markets

Astrologically, Both Nasdaq and Dow Jones are indicating a Volatile week, while some positive movement is expected on 04th / 05th March but again weakness is indicated 06th March. No Significant move is indicated on either side.