After the huge volatile movement in last three days on Wednesday the market remained in a tight range with a stock
specific action. However, the market volumes were above daily averages that will lead to significant moves on either
side on Thursday.
The level of 5155/17240 will play an important resistance for the market and sustenance of the market above it will
push market to newer levels (5225/17600) with a minor hurdle at 5185/17360. On the lower side the level 5080/17025
will act as a major support for the market. Dismissal of the same will invite fresh sell-off that will pull the market to
5035/16900 levels. Our advice is to trade on break outs or break downs for the day.
For positional traders our advice is to follow stop losses strictly and be cautious at higher levels (around 5300/5400) as
these levels may attract huge profit taking.
"Top Buy" with a medium term view - BILCARE LTD.: Cls: 461.00.
The above mentioned stock seems to be bottomed out in the month of March 2009 at Rs.279. The second supporting
factor for the same and which is convincing us to recommend is that the stock is currently into triangular bullish
consolidation. The stock is also attracting volumes at each regular interval. If somebody really wants to take a long
term investment view then they can add 30%-40% of the total investment to any particular "stock" at current levels
and the balance amount one can add on declines at 440 and at 400. On the higher side the stock is having potential
to rally minimum up to 630/650 with a minor hurdle at 550. However, with a perspective of 18 months we may even
expect the levels of 840/860. Avoid trading in it and keep a final stop loss at 350 on closing basis for all the
investments.
Nifty opened on a flat note and consolidated for the entire trading session.
Frontline stocks witnessed consolidation while most of the activity
was seen in the mid-cap space.
n Market wide open interest is seen at Rs. 1,09,290 cr. Nifty futures trade
at premium of near 10 points while volumes remain at average levels.
n IT majors trade with a positive bias led by Infosys and TCS. Infosys is expected
to test 2500 levels in the near term. Midcap IT space is also expected
to witness significant action. Select Pharma stocks are expected to
do well in the near term. BIOCON remains positive above 280 levels.
n Banking majors remain under pressure at current levels. ICICI Bank remains
under pressure below 875. Similarly SBIN remains weak below
2325. Real Estate majors are expected to continue consolidation with selling
at higher levels.
n Nifty OI concentration is seen at 5000 put and 5200 call options. Call
writing is seen at 5200 levels while put writing is seen at 4900 levels. This
is broadly indicative of range bound movement in the entire series. IV's
remain on the lower side indicative of possible consolidation throughout
the series.
OUTLOOK
n Nifty Dec turnaround is seen at 5060 levels; above the mentioned level
the index trades with a positive bias. On the higher side call writing at
5200 levels is indicative on limited upsides. We advice holding long positions
above 5060.
n We remain positive on the IT and Pharma space in the near term. Banking
stocks remain under pressure in the near term. Mid-cap stocks are expected
to witness action with significant upsides.
