Market OutLook 22-DEC-2009

On strong global cues market to open slightly higher side with positive bias during the morning session and thereafter to be volatile and may close on positive note for the day.

Yesterday nifty bounced back from the lower level, we could see a pull back for the next two-three sessions however at higher levels selling is expected to emerge and advice investors to be cautious because market can move up before reacting sharply

In short-term Nifty to trade in the range 4800-5100 in the coming trading sessions with high volatility.

Today nifty to trade in the range 4920-5020, either side break to give a new direction to the market.

Technically nifty can take support at 4920/4900/4850/ and resistance at 4980/5000 /5020 for the day.

Trade with cautious without any overnight positions.

THE FOLLOWING STOCKS CAN BE BOUGHT FOR SHORT-TERM GAINS

BUY PRAJ >98 SL 96 TGT 104
BUY DAAWAT (LT FOODS) >70 SL 68 TGT 76
BUY 3IINFO > 84 SL 81 TGT 90

Have a nice trading day.

Market OutLook 21-DEC-2009

On weak global cues market to open slightly lower side with negative bias during the morning session and pullback can be expected from the lower and thereafter to be volatile till close.

Yesterday nifty closed below the 5000 indicating further sell-off and can test 4950 levels or can go further down to the extent of 4900, if holds 4950 then a pullback is expected from that level.

Still there is no clear direction emerging in the market but there are movement is selected large cap and mid cap stocks therefore one can trade in the movementum stocks with cautious and should book profits at higher levels.

Today nifty to trade in the range 4900-5050, either side break to give a new direction to the market.

Technically nifty can take support at 4970/4950/4920/ and resistance at 5020/5050 /5080 for the day.

Trade with cautious and no overnight positions.

Have a nice trading day.

Market OutLook 18-DEC-2009

On weak global cues market to open slightly lower side with negative bias during the morning session and thereafter to be volatile and at higher level sell is expected.

Yesterday nifty traded in the narrow range with high volatility, it’s very difficult to predict the trend as there is no clear direction emerging in the market but there are movement is selected large cap and mid cap stocks therefore one can trade in the movementum stocks with cautious and should book profits at higher levels.

Today nifty to trade in the range 4950-5050, either side break to give a new direction to the market.

Technically nifty can take support at 5010/4980/4950/ and resistance at 5040/5060 /5080 for the day.

IN IT SPACE INFOSYS AND TCS LOOKS GOOD.
IN PHARMA SPACE RANBAXY AND CIPLA LOOKS GOOD.
IN CAPITAL GOODS HAVELS AND CROMPTOM LOOKS GOOD.

BUY THE FOLLOWING STOCKS FOR SHORT-TERM GAINS

GRAPHITE > 76 SL 74 TGT 81
SUZLON > 81 SL 78 TGT 88

Trade with cautious without any overnight positions.

Have a nice trading day.

Market OutLook 17-DEC-2009

On mixed global cues market to open flattish with negative bias during the morning session and thereafter to be volatile and at higher level sell is expected.

Yesterday nifty bounced back from the lower level, we advise investors to be cautious because market can move up before reacting sharply, looks as if markets are unable to decide its direction

Nifty to trade in the range 4800-5100 in the coming trading sessions with high volatility.

Today nifty to trade in the range 4950-5080, either side break to give a new direction to the market.

Technically nifty can take support at 5010/4980/4950/ and resistance at 5050/5080 /5100 for the day.

Trade with cautious without any overnight positions.

Have a nice trading day.

Market OutLook 16-DEC-2009

On mixed global cues market to open flattish with negative bias during the morning session and thereafter to be range bound and today can test 4980 levels from there bounce back is expected.

Now nifty to trade in the range 4800-5100 for the next few trading session with high volatility , As nifty tried to break its resistance level 5180 many times but could not do so and now if it breaks below 5000 then further sell-off is expected to the extent of 4800 in the next few trading sessions.

Today nifty to trade in the range 4950-50080, either side break to give a new direction to the market.

Technically nifty can take support at 5010/4980/4950/ and resistance at 5050/5080 /5100 for the day.

BANKING LOOKS WEAK FOR THE DAY.
SHIPPING AND HOTEL SECTORS LOOKS GOOD FOR THE DAY.

Have a nice trading day.

Time To Take Risk And Buy Penny Stocks

Penny stocks are stock that trades at a relatively low price and market capitalization; these types of stocks are generally considered to be highly speculative in nature and carries high risk because of their lack of liquidity, small capitalization or limited disclosure.

while investing in these type of companies the fundamental are often given lesser weight age or many time totally ignored, hence investing into them are most risky and the potential of loss is much bigger and it is almost equal to gambling than investing, and on the other hand it can be profitable too, if one can effort to risk, then can take a chance after analyzing the stock and then bet on it.

One should focus on the stock on which you are betting and try to get the maximum info on the stock, check for its average volumes, trading pattern and related press release once you are convinced about it then look for the market sentiment towards the penny stocks, The activity in penny stocks starts only through a large participation of retail investors.

Although few penny stocks have shoot up in the last six months, we feel the real activity has just began in the penny socks and it’s time to take some risk and buy penny stocks and hold it for the next 2-3 years.

We have identified such penny stocks based on its movement and other related information’s which indicated its potential to go up further 5-10 times from the current level or even more provided you have the patients to hold it for a longer period and risk taking capacity.

The penny stocks which we have mentioned are purely speculative in nature and feel it can perform well in the coming days.

Watch out for the following penny stock ,if interested in taking risk then buy it with a view to retain it for the next 2-3 years, hoping that the stocks skyrocket at some point of time in the future, this mostly happens during last leg of the bull market for which enough time is left.

SNO	SCRIP NAME	CMP(As on 11-12-09)	YEAR HIGH	YEAR LOW	MAKT CAP(CR)	SECTOR	PROMOTERS HOLDING
1	GV FILM	2.19	3.27	0.85	78.44	ENTERTAINMENT	1.99%
2	HARIG CRANK	0.99	1.98	0.42	32.7	AUTO PART	10.56%
3	INVIETA MEDITEK	3.86	8.29	3.51	2.28	MEDICAL EQUIPMENT	26.60%
4	CLIO INFO	3.86	3.83	1.35	4.16	SOFTWARE	4.18%
5	DATA NET SYSTEM	2.01	2.86	1.55	2.53	COMM.TRADING	25.57%
6	EPSOM PROPERTIES	5.35	9.4	3.28	2.93	PHARMACEUTICAL	40.27%
7	IQ INFOTECH	2.35	3.91	0.79	2.39	SOFTWARE	5.87%
8	BAFNA SIPINNING	1.4	2.97	0.65	5.37	TRADING	25.82%

Market OutLook 14-DEC-2009

On weak global cues market to open flattish with negative bias during the morning session and thereafter to be range bound and today can test 5050 levels from there bounce back is expected.

On Friday market opened flattish note and was trading with the positive bias during the morning session and even touched its strong resistance of 5180 and then fell sharply and closed below 5120 levels showing further weakness in todays trading.

Now nifty is range bound with resistance at 5180 and support at 5050 levels, one can take positions in small lots with a stop loss of 5000 ,nifty looks bullish only on crossing above 5180 and can test 5300, on the other hand a break below 5080 can drag the nifty to 5000 levels.

Nifty to trade in the range 5080-5180 in short-term, either side break to give a new direction to the market.

Technically nifty can take support at 5090/5050/5010/ and resistance at 5140/5160 /5180 for the day.

In this market condition one has to book profits on very rise and when decline on panic buying will be the best strategy, one has to trade with cautious.

BANKING LOOKS WEAK FOR THE DAY.
SUGAR, STEEL & IT LOOKS BULLISH FOR THE DAY

THE FOLLOWING STOCKS CAN BE BOUGHT FOR SHORT-TERM GAINS.

TRIVENI ENG >110 SL 108 TGT 116
THINK SOFT >267 SL 260 TGT 278

Have a nice trading day.

Market OutLook 11-DEC-2009

On strong global cues market to open slightly higher levels and expected to be range bound with positive bias during the morning session, at higher levels selling is expected for the day, for the rally to continue nifty should hold trade above 5150 and a close above 5180 will take nifty to 5300 in the next few trading sessions.

Yesterday market opened on a flat note and was rage bound without much volatility and looked as if it was direction less, but today due to the IIP data announcement market is expected to be volatile in the second session.

Now nifty is range bound with resistance at 5180 and support at 5080 levels, one can take positions in mid cap stocks with a stop loss of 5050.Nifty to trade in the range 5050-5180 in short-term, either side break to give a new direction to the market.

Today in the intraday nifty to trade in the range 5090-5150 levels, either side break to give a new direction to the market.

Technically nifty can take support at 5120/5100/5080/ and resistance at 5150/5180 /5220 for the day.

IN MID CAP BANKING SPACE DENA BANK, UCO, ANDHRA BAN & SYNDICATE BANK LOOKS GOOD.
IN FERTILIZER SPACE CHAMBAL, NAGARJUNA AND DEEPAK LOOKS GOOD.
IN MID CAPTEXTILE SPACE ALOK, EASTERN SILK & BRFL LOOKS GOOD.
IN SUGAR SPACE PRAJ IND & BAJAJ HIND LOOKS GOOD.
IN MID CAP IT SPACE FCS, FSL, PATNI, POLARIS & ROLTA LOOKS GOOD.
IN SHIPPING SPACE ESSAR, VARUN & GE SHIPPING LOOKS GOOD.

FOLLOWING STOCKS CAN BE BOUGHT FOR SHORT-TERM GAINS.

BAJAJ HIND >210 SL 208 TGT 222
ROLTA > 188 SL 185 TGT 200
IDEAL CELL > 61 SL 60 TGT 68
DEEPAK FERTILIZER >102 SL 100 TGT 110
CHAMBAL FERT >60 SL 58 TGT 65

Have a nice trading day.

Market OutLook 10-DEC-2009

On global cues market to open flattish with negative bias during the morning session, at lower levels bounce back is expected for the day and thereafter selling to emerge once again during the close, for the rally to continue nifty should hold close above 5180 levels.

Yesterday market opened on weak note and was trading with the negative bias for the whole day and the same trading is expected today also.

Now nifty is range bound with resistance at 5180 and support at 5080 levels, one can take positions in small lots with a stop loss of 5050 ,nifty looks bullish only on crossing above 5180 and can test 5300, on the other hand a break below 5080 can drag the nifty to 5000 levels.

Nifty to trade in the range 5080-5180 in short-term, either side break to give a new direction to the market.

Technically nifty can take support at 5090/5050/5010/ and resistance at 5140/5160 /5180 for the day.

In this market condition one has to book profits on very rise and when decline on panic buying will be the best strategy, one has to trade with cautious.

I think the worst is over for the Telecom sectors.

BUY RCOM, BHARTI, IDEA AND TTML FOR SHORT-TERM GAINS.

Have a nice trading day.

Market OutLook 09-DEC-2009

On global cues market to open weak and expected to be range bound with negative bias during the morning session, at lower levels bounce back is expected for the day, for the rally to continue nifty should hold close above 5080 levels.

Yesterday market opened on a strong note but could not cross the 5170 mark indicating strong resistance at this level.

Now nifty is range bound with resistance at 5180 and support at 5080 levels, one can take positions in small lots with a stop loss of 5050.

Nifty to trade in the range 5050-5250 in short-term, either side break to give a new direction to the market.

Today in the intraday nifty to trade in the range 50800-5180 levels, either side break to give a new direction to the market.

Technically nifty can take support at 5120/5100/5080/ and resistance at 5160/5180 /5200 for the day.

IN BANKING SPACE FEDERAL BANK & SYNDICATE BANK LOOKS GOOD.
IN OIL SAPCE CHENNAI PETRO, MRPL, IOC LOOKS GOOD.
IN TEXTILE BRFL & CENTURY TEXT LOOK GOOD.
IN SUGAR SPACE PRAJ IND & BAJAJ HIND LOOKS GOOD.

FOLLOWING STOCKS CAN BE BOUGHT FOR SHORT-TERM GAINS.

BAJAJ HIND >210 SL 202 TGT 222

Have a nice trading day.

GOLD - A FAVORABLE ALTERNATE INVESTMENT OPTION

The yellow metal has found favor due to the last year’s financial crisis and still continues to be favorable investment option due to weak sentiments toward the current economic uncertainty in some parts of the world.

The gold buyers tend to think investment in gold is protection from rising inflation and any currency devaluation, though we say that investing in gold is safe havens but still the exposure of gold investment when compared to that of other financial asset is very less, but now things are changing after the recent financial crisis in the western countries that led to the global depression and economic slowdown.

When Investors across the globe search to park their investment is safe havens, obviously it will be in gold which will not be affected due to any economic or political crisis.

For the last two years gold investment has deliver excellent returns due to which more and more investors especially the retail investors are much interested in investing in gold and are curious to know about gold price sustainability and the various opting available for gold investments.

As I am coming across the queries from the investors are almost same in nature, they want to know why gold price is rising and does it have the potential to rise further from the current levels, I think its valid questions before investing at high level.

First, one should know why the gold prices have surged so sharply and dose the reasons justify the gold price rise.

• Due to the global depression and economic slowdown the central bank across the globe had to increase the liquidity to provide the stimulus packages to revive the economy, which has led to the oversupply of paper currency, which in turn has led to higher inflation and weak currency, In such a case gold investment is hedge against both the above said factor and gold prices shoot up.


• As dollar getting weak the central bank across the globe are diversifying their reserves away from US $ to gold reserve the recent being India to do so by buying 200 tones from IMF due to which gold price has shoot up and many more countries are expected to do so, which will increase the demand for gold further in the coming days.


• The increase in demand for gold has outstripped the global gold production, the world major gold producing countries like South Africa, Australia and China could not increase the gold production and apart from this there has been no major gold discovery to compensate the demand side, due to which the prices in gold has shoot up.

Second, before investing in gold one should know whether the gold price will sustain at current levels and does it have the potential to go up further.

• As long as the dollar is weak ,uncertainty in the economy and financial crisis (Dubai debt crisis) continues there will interest towards the yellow metal.


• The rising inflation concerns and the awareness in gold investment among the investors to keep the interest alive in the yellow metal show.
  


• Lot of fund action has been seen in the yellow metal through Gold ETF, the gold holding of ETF stands at 7.05 tons and expected to go up further as more and more new investors showing interest toward the yellow metal.


• The central banks buying gold as reserves to keep the interest alive in the yellow metal.

Bloomberg quotes a statement from an influential Chinese official, who has suggested that Chinese central bank increase it gold reserve to 6000 metric tons in the next 3-5 years and possibly to 10000 tons in the next 8-10 years, if the Chinese central bank decides to buy at least 20%, imagine what would be the price of gold in the coming years.

As Chinese central bank moving out of US treasuries to gold, may trigger the gold prices to surge further from the current level.

As per one report the US government holds about 286.9 million Ounces of gold and has printed about $ 1.569 trillion worth of paper dollar, If each dollar were to be backed by gold then that would put the price of gold at $ 5468 an Ounces (source:commodityonline.com) .

The central bank across the globe are diverting their reserve away from dollar due to its weakness and the uncertainty prevailing in the global economy should keep the interest alive in the yellow metal and prices expected to go to the extent of 30%-40% from the current level in the next one year.

If one believes that gold prices will surge in the coming year and decided to invest in gold they should know the various options available to invest in gold.

Apart from the traditional option gold investment such as buying jewelry and gold coins etc., One has to look in for other available options, If you can effort to take some risk and interested in trading then go for newer options such as investing through commodity exchanges and Gold ETF (Exchange Traded Fund)

Investing through a commodity exchange you get leverage for your investment and opting for Gold ETF is to give your investment to be handled by professionals.

In the case commodity exchange you have to open a commodity trading account with a registered commodity brokerage house and then buy gold worth of 8 gms /100 gms / and 1000 gms by paying a up front margin of 5%-8% amount as margin money and hold it till the contract expires or rollover to the next available contract so that you can further carry your positions.

In case Gold ETF, you can buy it from the mutual fund which provide this scheme or directly through the equity brokers terminal the minimum is one unit and this one unit is equal to one gram and you have to make the full payment against the purchase.

My personal view is that one can buy gold on very dips with implement good strategy with the available options

If you have any questions with regard to gold investment option or strategies, please do email me at joerajendran@gmail.com

Market OutLook 04-DEC-2009

On weak global cues market to open slightly lower side with negative bias during the morning session, bounce back can be expected from 5080 levels, and thereafter from the midsession expected to be volatile till the close.

Yesterday nifty opened with a strong notes, but could move above its strong resistance of 5180 and close below 5150 indicating further selling. However nifty can take support at 5080-5070 in the intraday trading today.

For this rally to continue nifty should trade above 5150 levels, now 5080 to be considered as strong support and on the other hand will face resistance as 5180 level a close above 5180 can take nifty to new high in the coning day and in that case nifty can test 5350.

In my view nifty will trade in the range 5020-5350 for the current month, either side break to give a new direction to the market.

Investors are advised to be cautious and take long positions in large caps stocks only if nifty closes above 5180 level, but can look at mid caps stocks even at current levels.

Today in the intraday nifty to trade in the range 5050-5180 levels, either side break to give a new direction to the market.

Technically nifty can take support at 5100/5070/5040 and resistance at 5150/5170 /5190 for the day.

WATCH OUT FOR MID CAP IT STOCK WHICH WHERE MORE ACTIVE IN YESTERDAYS TRADING.

POLARIS,ROLTA,3IINFO,SONATA SOFT,MPHASIS AND PANTI LOOKS GOOD FOR THE DAY EVEN ITS A GOOD BUY FOR SHORT-TERM POINT OF VIEW.

INVESTORS CAN BUY ORIENT PAPERS, TNPL, BILT IN PAPER SPACE WITH SHORT-TERM VIEW.

SELLING CAN BE SEEN IN LARGE CAPS STOCKS SUCH AS ICICI BANK,TATASTEEL AND SBI.

Have a nice trading day.

Market OutLook 03-DEC-2009

On mixed global cues market to open flattish and expected to be range bound with negative bias during the morning session, at higher levels selling is expected for the day, for the rally to continue nifty should hold close above 5150 levels.

Yesterday market opened on a strong note but could not cross the 5170 mark indicating weakness in the market.
Now nifty is range bound with resistance at 5180 and support at 5050 levels, one can take positions in small lots with a stop loss of 5000.

Nifty to trade in the range 5000-5250, either side break to give a new direction to the market.

Today in the intraday nifty to trade in the range 5050-5180 levels, either side break to give a new direction to the market.

Technically nifty can take support at 5100/5080/5050/ and resistance at 5140/5180 /5200 for the day.

IN BANKING SPACE DENA BANK, UCO BANK & SYNDICAATE BANK LOOKS GOOD.I
N OIL SAPCE CHENNAI PETRO & IOC LOOKS GOOD.
IN TEXTILE BRFL & CENTURY TEXT LOOK GOOD.
IN REALITY SAPCE UNITECH & IBREAL LOOKS GOOD.

FOLLOWING STOCKS CAN BE BOUGHT FOR SHORT-TERM GAINS.

BFRL > 192 SL 188 TGT 220
CHENNAI PETRO > 221 SL 216 TGT 233
SYNDICATE BANK > 97 SL 94 TGT 104
IDBI > 131 SL 129 TGT 136
RPOWER > 147 SL 144 TGT 152

Have a nice trading day.

Market OutLook 02-DEC-2009

On strong global cues market to open slightly at higher levels with positive bias during the morning session, Selling is expected from the midsession and thereafter to be volatile for the day, for the rally to continue nifty should hold above 5180-5200 levels.

Yesterday market opened on a strong note and remained on the higher side for the entire day and managed to cross the 5120 level indicating further strength in the market.

As nifty closed well above the support level of 5120, now can test 5350 provided its holds the 5180 levels for the next two trading sessions.

Now nifty is range bound with resistance at 5200 and support at 5050 levels, one can take positions in small lots with a stop loss of 5000.

Nifty to trade in the range 5080-5180,either side break to give a new direction to the market.

Today in the intraday nifty to trade in the range 5050-5220 levels, either side break to give a new direction to the market.

Technically nifty can take support at 5100/5080/5050/ and resistance at 5150/5180 /5220 for the day.

IN FERTILIZER SAPCE CHAMBAL, TATACHEM & NAGARJUNA FERT LOOKS GOOD.
IN HOSPITALITY SPACE HOTEL LEELA AN INDIAN HOTEL LOOKS GOOD.
IN BANKING SPACE DENA BANK, UCO BANK & SYNDICAATE BANK LOOKS GOOD.
IN OIL SAPCE CHENNAI PETRO & IOC LOOKS GOOD.

FOLLOWING STOCKS CAN BE BOUGHT FOR SHORT-TERM GAINS.

BFRL > 192 SL 188 TGT 220
CHENNAI PETRO > 221 SL 216 TGT 233
HOTEL LEELA >42 SL 40.5 TGT 50
JP HYDRO >76 SL 74 TGT 81
NOIDA TOLL >42 SL 39 TGT 48

Have a nice trading day.