report as on 30/04/2010

After the massive fall on Wednesday the market remained calm on Thursday on the back of expiry. It has not broken

highs and lows of the previous day that we may call it as a tight range activity. The highest (5265/17535) and lowest

(5200/17330) levels of Thursday may act as strong levels to move the market sharply on the either side especially in the

second half of the trading session. On the higher side we may expect the market to reach 5300/5310 if indices sustains

above 5265 and may fall to 5160 if it fails to hold 5200 in the second half of the trading session.

report as on 29/04/2010 gold , silver & crude

old closed higher on Wednesday and the high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. If it renews this year's rally, the 75% retracement level of the December-February decline crossing is the next upside target. Closes below last Monday's low crossing would confirm that a short-term top has been posted.

Silver closed lower on Wednesday and the mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off February's low, January's high crossing is the next upside target. Closes below last Monday's low crossing would confirm that a short-term top has been posted.

Crude Oil closed higher on Wednesday and below the 20-day moving average crossing. The high-range close sets the stage for a steady higher opening on Thursday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends last Friday's rally, the reaction high crossing is the next upside target. Closes below last Thursday's high crossing would open the door for a larger-degree decline into early-May.

report as on 29/04/2010

On Wednesday, the market opened lower and quickly recovered back to 5270 levels but failure to hold above 5270 in

the second half has pulled the market down to 5200 levels. The market has spent near about one hour around 5200

levels but it failed to breach 5200 level that may be the sign of non aggression on the lower side. However, we may

expect aggression in US markets as they are diverging negatively, which is a sign of likely shift/pause in the current

(bullish) trend and we feel that our markets will follow the move of US markets.

If we look at the broader trend then I can say that the market has formed lower top at 5340 as compare to 5399,

which it has formed at the beginning of the month and currently is trading at the lower boundary of the current

month which is at 5200/17330. In case today the market sustains below it then we may expect further sell off to the

lowest level of the month which is at 5160/17270, which is a trend decider level on a weekly basis and dismissal of the

same may invite liquidation of pending long positions with a final downside target 5000/16850. We may expect minor

support at 5125/17090.

On the higher side 5250/5255 (17530) may act as a resistance for the day but sustenance of the market above the same

may not be able lift the market beyond 5300/17690, which was gap down reversal level for the market

In brief, in the short term to medium term we cannot expect big upside in index and index based stocks, unless and

until world markets comes out with a positive outcome and the message is reduce trading long positions or buy few

put options with a view of hedging to long positions of the next month.

report on nifty as on 28/04/2010

The market remained between the given range of 5335 and 5300 through out the day. Even though it closed above

the level of 5300 it is not satisfactory as most of the index stocks failed to move beyond immediate hurdle levels.

Today, we may expect the level of 5270/5265 (17600) on the dismissal of the crucial level of 5300/17690. In case the

market sustains below the level of 5270/17600 in the second half of the trading session, then the sell-off may even

push the market to 5200 in coming few days.

On the higher side, the market has several hurdles up to 5400 but sustenance of the market above 5340 in the second

half of the trading session may smoothen its way towards 5400.

report as on 27/04/2010 gold & silver

Silver

Yesterday's candlestick formation proves how the trading range was very tight. Thus; we still see that the metal is preparing to achieve potential upside movements in order to resume the CD leg of the suggested harmonic AB=CD pattern. A stable move above 18.35 is needed to confirm the scenario.
 Recommendation Based on the charts and explanations above our opinion is, buying silver from 18.25 targeting 18.90 and stop loss below 17.70 might be appropriate

Gold

Gold is moving within a very tight range since the opening of this week. Therefore, we still see chances for completing the CD leg of the suggested harmonic structure, while being carried above SMA 50. We just need a clear penetration for the pivotal resistance level of 1162.00 to be confirmed that, the bullishness might control the movements over intraday basis.
Recommendation: Based on the charts and explanations above our opinion is, buying gold with a breakout above 1162.00 targeting 1187.00 and stop loss below 1139.00 might be appropriate.

report as on 27/04/2010

The market on Monday opened up with a gap of 35 points but failed to gain further, as the Index giant Reliance and

ICICI Bank failed to perform further. The activity remained subdued below the level of 5335, which was our minimal

requirement to see the continuation of the bull-run.

For the day, we will again watch the same level for further momentum. Today, in case the market sustains above the

level of 5335/17780 in the second half of the trading session, then we may expect the market to reach 5400/18050 levels

sooner. But in case, if it fails to do so and remains below the level of 5300/17690, then it may fall to the level of

5270/17600 minimum.

report as on 26/04/2010 gold , silver

Silver

The metal has found a very solid support around 17.80 zones that helped it to incline, forming a bullish candlestick formation as seen on the provided daily chart. Now, further bullishness could be seen during this week to resume the CD leg of the proposed harmonic AB=CD pattern but not before covering the gap at 18.20-18.25 zones.
Recommendation Based on the charts and explanations above our opinion is, buying silver from 18.25 targeting 18.90 and stop loss below 17.70 might be appropriate.

Gold

Carried above SMA 50-currently valued at 1125.00-, gold inclined forming a bullish candlestick structure as seen on the provided daily chart. Stochastic turned higher, supporting the technical idea that the CD leg of the harmonic pattern is still in progress. Thus; possible bullishness could be seen during this week. A stable move above 1162.00 is needed to confirm the scenario.
Recommendation Based on the charts and explanations above our opinion is, buying gold with a breakout above 1162.00 targeting 1187.00 and stop loss below 1139.00 might be appropriate

report as on 26/04/2010

The week past and expected
Even though there was sell off in the market on last Monday the market remained in a recovery mode through out the
week. However, such recoveries are nothing but pull back to the bear rally between 5400 and 5160 levels. The medium
term trend of the market is "down to negative" and may reverse only if the market dismisses the previous highest level
5400/18050.
As per weekly pattern last week's highest and lowest levels may act as a prudent support and resistance for the market
(5335/17780 and 5160/17270). For traders these levels are important to note as on the sustenance of the market above
and below these levels may move the market sharply towards the same direction. On the higher side we may expect 5400/
5440 (18150) above 5335 and on the lower side the chances of hitting 5000/16850 may increase below the level 5160/
17270
For the day 5265/17530 may act as a major support any sustenance below the same may push the indices to multi support
area 5200/5180 (17390/17330). On the higher side 5310/5335 levels may act as a hurdle area to cross these levels the
market requires genuine strength index based stocks.
In the last week there was "out performance from banking side" and "under performance from metal side". In the current
week also we may expect the same and buying on declines is advisable in bank stocks where as selling is advisable on
rally in metal stocks. The auto and tech index may improve from lower levels. The capital good and infra stocks are still
into bullish consolidation zone and buying at proper support levels will yield better returns for investors in the medium

Motivation is what gets you started. Habit is what keeps you going.

report on nifty as on 24/04/2010

The market remained highly volatile on the back of external news flows and finally ended with marginal gains over

the previous day. As per intra day fluctuations, we may say that the market has formed an important formation on

daily basis and dismissal of the highs and lows of the said formation may result into hectic movement accordingly, in

the coming days. For next few days, the level of 5200 may act as a major support and sustenance of the market above

the same may give relief to bulls and pain to bears.

For the day, the level of 5250/15570 may act as a major support for the market and sustenance below the same may

lead to further weakness may be up to 5215 and 5200 (17390). On the higher side, the level of 5290/5305 may act as

a major resistance levels for the market. We may expect range bound movement between the broader range of 5220

and 5305.

report on nifty as on 22/04/2010

Stocks ended mixed on Wednesday, as the market failed to breach highs and lows of the previous day successfully.

Such kind of mixed activity may be possible till the market is in medium-term down trend.

As per intraday charts, the market is forming a small "pennant" after a steep sell-off from the level of 5390, which is

a continuation pattern and on the dismissal of the lower boundary of the same may result into one more sell-off minimum

to the level of 5160/17275 with a minor support at 5205/17390 and 5185/17340.

For the day, sustenance of the market below the level of 5225 in the second half of the trading session will lead further

weakness and on the other side sustenance of the market above 5240 will lift the market to 5270/5290.

report on nifty as on 21/04/2010

Stocks rise on positive global cues and on a moderate RBI policy. However, the market failed to sustain above 5250/

17570 levels, which was the minimum requirement for further retracement.

For the day, the level of 5205/17390 and 5260/17560 may act as a major support and resistance for the market and sustenance

above and below the same will direct the market accordingly. Below the level of 5205, we may expect the

market to fall to 5180/5185 again and sustenance below 5180 in the second half of the trading session may drag down

the sentiment further to 5130 levels. On the higher side, 5250/5260 may act as a hurdle area and sustenance above

will lift the market to 5290/5325 levels.

In brief, for the day follow the levels strictly to trade.

report on nifty as on 20/04/2010

The market opened down with a gap on the back of weak global cues but instead of falling further, it has managed

to bounce back in the later part of the day. Even though the attempt of bouncing failed to reach 5230 levels the

market has managed to close above 5180, which is an equilibrium level for the market since October 2009. The market

has spent maximum time between the range of 5180 and 4950 even though it has broken the range on the either

side in the month January, February and March. In case the market sustains below the level of 5180, then the market

may again fall to 4950 levels.

Today, in case the market recovers in the fist half, then we may expect the market to reach 5240 or 5250 but sustenance

above it requires a strong positive announcement (from the RBI Policy) or positive world cues. In the absence of

the same, the market may remain weak and may turn southward towards the major support of 5120/5130 level.

Any daily close below the level of 5120 may lead to further weakness to the level of 5070 or 5050. Our advice is same

of reducing trading long positions and for investors advice is to accumulate frontline stocks around major supports

(5120/5050/4950)

report as on 19/04/2010 gold , silver & crude

positional call :BUY RELIANCE @ 1059/- TGT 1120/- SL 1030/-
FOR FURTHER REPORT GO TO http://equitylevels.blogspot.com/

report as on 19/04/2010 gold , silver & crude

GOLD (Futures): The commodity weakened and closed lower the past following its price failure at the 1,169.70 level, its 2010 high. However, our broader bias on Gold remains higher while it holds above its long-term rising trendline at 1,100.81. We see that level capping declines if a follow through lower on its Friday losses occurs as we enter a new week. This should bring a break above the 1,144.88 level, its Mar 01’10 high and the 1,169.70 level, its 2010 high picture back on the table. On a loss of the latter, further upside risk will shape up towards its psychological level at 1,200 and next its 2009 high at 1,226. The threat to this view will be a decisive break and close below the 1,100.81 level, its LT rising trendline. If that occurs, the commodity will trigger a return to its Mar low at 1,085.03 and next its 2010 low at 1.044.20. Overall, while Gold holds above the 1,100.81 level, we expect it

Gold closed lower due to profit taking on Friday and below the 10-day moving average crossing signalling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought and are turning bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this year's rally, the 75% retracement level of the December-February decline crossing is the next upside target.

Silver closed sharply lower on Friday testing support marked by the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought and are turning bearish signalling that a short-term top might be in or is near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this rally, the 87% retracement level of the December-February decline crossing is the next upside target.

Crude Oil closed lower on Friday and below the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends today's decline, the 38% retracement level of the February-April rally crossing is the next downside target. Closes above Wednesday's high crossing would temper the near-term bearish outlook.

report as on 19/03/2010

On Friday, the market opened lower and managed to sustain above the level of 5230, which is our intermediate support.

However, it failed to reach 5290, which was a weekly lowest level of the previous week. It was an indication of weakness

on Friday and today, it may lead to further weakness on the back of weak global cues.

Below the level of 5230, the market will enter into medium term weakness and the strategy should be to reduce trading

long positions at current and on pull back at resistance levels. The world markets are also diverging "negatively", which is

an indication of shift in the current trend and time wise correction in the coming days. Today, in case the market sustains

below the level of 5230 in the second half of the trading session, then the market may fall to the level 5125 with a minor

support at 5180. From the level of 5125/17130, we may expect temporary recovery/pull back but in case if it fails to sustain

around the same, then the sell off may continue to the level of 5050/5040 (16850).

During the week, in case the market fails to trade above 5200 and remains below 5125 then we should be ready to see

the level of 4950/4850 (16500/16230) in the near-term.

For traders, our advice is to reduce the trading long positions as the time wise correction may lead to lot of uncertainties.

For investors our advice is to invest gradually at each major supports 5130, 5050 and 4950 with a medium to long-term

view in mind in front line stocks. The reason behind the same is the broader trend of the market is still strong and may

help the market to bounce back from lower levels

report as on 15/04/2010 gold , silver & crude

Silver

Sideways trading is still settled above 161.8% correction for the BC leg; and mostly we also witness stability above 61.8% correction shown above. Accordingly, we withhold our previous expectations for a possible intraday upside move today. Stochastic provided a negative crossover which might increase the volatility and trigger downside corrections, yet at the same time trading above 18.15 -50 MA- will keep the upside wave valid.
The trading range for today is among the key support at 17.85 and key resistance now at 18.90.
Recommendation Based on the charts and explanations above our opinion is, buying silver from 18.35 targeting 18.90 and stop loss below 17.90 might be appropriate

Gold

Gold was trading yesterday within a tight range, biased in sometimes to the downside, as Stochastic needed to exit overbought areas. RSI is stable above 50 while the suggested MA count shows that the bullish fifth is needed to complete the bullish IM. Therefore, we see that an upside wave might affect intraday trading today. Some negativity on Stochastic might force fluctuations from now and indulge in downside corrections.
Recommendation Based on the charts and explanations above our opinion is, buying gold from 1155.00 targeting 1180.00 and stop loss below 1132.00 might be appropriate

Crude succeeded in achieving yesterday's suggested scenario flawlessly and stabilize around the awaited target 86.20. The horizontal resistance 86.35 is forming a sensitive resistance in front of crude, while inching closer to becoming the neckline for the technical pattern that is amidst forming. The negative momentum could force crude to bearish correct, but in overall we expect a bullish overall trend today that depend on two major factors; the first being a clear breach of 86.35 and the second building a base above 84.85. The awaited technical targets are presently around 87.05 then 88.70.
Recommendation Based on the charts and explanations above our opinion is buying oil from 85.45 targeting 87.05 and stop loss below 84.85, might be appropriate.

report on nifty as on 15/04/2010

The market is still in the sideways consolidation and gap up opening or gap down opening beyond 5380 or 5290 will

only decide the next course of action. Generally it happens after a sharp up move above the break out level 5290/

17790.

From here onwards, the strategy should be to trade short around the upper boundary 5380/17970 and trade long

around the lower boundary 5290/17670 of the channel with a tight stop-loss above and below the same of minimum

20 points.

report on nifty as on 13/04/2010

Forthcoming events Company/Market

Date Event

13-Apr Infosys, Mastek, Bharat Seats, Blue Dart, Essar Oil earnins expected

14-Apr Rolta India earnings expected

15-Apr Castrol India, Gamma Infoway, CMC, VST Ind, Indag Rubber earnings expected

16-Apr CRISIL, Compuage Info, Gruh Finance, Ind Bank Housing, Stone India, Indusind Bank

earnings expected

The market opened higher but failed to sustain at higher levels on the back of weakness especially in Banking and

Capital goods sectors. However, the closing was at an almost unchanged level may be due to the result of Index giant

Infosys.

For the day again, we will watch the level of 5390/18000 on the higher side but on the lower side we have to trail

back our support lower to 5320 level. In case the market sustains below the level of 5320/17810, then we may expect

5290/17680 and 5270/17600 in a short span of time. On the higher side to breach 5390 will require genuine strength

either from the world markets or in the result/guidance of Infosys. In that case, the level of 5440 seems achievable.

In brief, the market will remain range bound but in a broad range of 2% to 3%. Be stock specific but hold few stocks

in hand and keep a close watch of 5230/17470 as the dismissal of both these levels may lead to the break of the series

of rising top rising bottom.

report as on 12/04/2010 gold , silver & crude

Crude was able to reach resistance for the ascending short term direction that started its bearish reversal, and has stabilized within the minor descending channel's lane shown above. The bearish technical signs appearing on the four hour chart encourages us to expect a bearish overall direction for this week; starting with the breach of 84.35 to target $82.00 per barrel. Keep in mind that the breach of 86.05 will make the suggested scenario fail and push upwards below the need to bearishly correct.
 Recommendation Based on the charts and explanations above our opinion is selling oil with the breach of 84.35 targeting 82.00 and stop loss above 86.05, might be appropriate.

Silver

Between 18.90 and 19.30 areas, the suggested harmonic pattern of AB=CD might be completed but we believe that, areas of 18.35 could be retested first, and then achieving this suggested bullishness to resume the CD leg rally. AROON shows that, the uptrend is still strong enough, while RSI 14 is moving inside overbought zones. From here we will be waiting for a mild correction before moving upwards. 
Recommendation Based on the charts and explanations above our opinion is, buying silver from 18.30 targeting 18.90 and stop loss below 17.85 might be appropriate

Gold

After breaching the key resistance levels of 1155.00-1156.00 zones, gold has taken 1162.00 with the weekly closing. Therefore, we still think that the duplicated harmonic formation might take the CD leg towards 1183.00 zones. Note that, potential fluctuation and retesting actions for the broken resistance might occur to relieve the momentum indicators before resuming the awaited bullishness during this week towards 1183.00"76.4% Fibonacci for the wave from the all-time high at 1125.00 to 1044.00". The problem is; we have to watch out the price actions around 1183.00 carefully as it might act as strong reversal areas.
Recommendation Based on the charts and explanations above our opinion is, buying gold from 1155.00 targeting 1183.00 and stop loss below 1132.00 might be appropriate.

report on nifty as on 12/04/2010

On Friday, the market closed above the major level of 5350/16900 that may lead one more bullish rally in the market minimum

up to 5440/18150 in the near-term. As per overall pattern calculation, these levels may act as a major resistance for

the market and one should be cautious while adding fresh long positions around the same. Our advice is to be a pure

trader around 5440/18150 with strict stop-losses. We have observed in the past that around major levels traders unknowingly

enters in to several positions, that leads to perfect over bought kind of formation at highest levels.

For the day, the level of 5390/17990 may again act as a major resistance and sustenance of the market above 5390 in the

second half will lift the market to 5440/18150 in the near-term. On the lower side, the level of 5350/17900 may act as a

major support and as per formation the market should not close below the same to continue the bullish momentum.

report as on 09/04/2010

On Thursday, the market has retraced to all the levels that we discussed in our update except 5270 and we may expect
that level to come, if indices fails to surpass or reach 5335/17830 levels. However, as the trend is strong, we may expect
quick reversal from lower levels. It seems that the sideline traders/investors may jump into the market near the
previous support 5230/17480 of the market.
For the day, we may expect further weakness, if indices trades below previous lows 5290/17675. It has next major support
in the region 5270/60 (17600). For positional traders, it will be an opportunity to enter into positional longs with
an anticipation of four to five percent gains from 5270/60 levels. On the higher side, 5320 and 5335 may act as a
major hurdle for the day.
In case the market breaks 5230/17470 on a closing basis, then it may invite worries, on the other side closing of the
market above 5350/17900 level will be positive for the market.

report on nifty as on 08/04/2010

The market has opened a window of a sideways correction, however looking at stock specific activity, we don't think

that it will last more. It should correct in the near-term to support the base of 5250/5230 levels. However, it seems

that the correction will remain short lived. For the day, the level of 5350 and 5335 will act as a major support for the

market. Sustenance of the market below 5350 and dismissal of 5335 may lead to further weakness to the levels 5290

or 5270.

As the market failed to surpass 5385 in the second half, we may use it as an immediate hurdle for the market. In case

the market crosses the level of 5385 in the second half of the trading session, then the chances of hitting 5415 or 5440

will increase substantially

report as on 07/04/2010 gold , silver & crude

Silver

Reconsidering our suggested Elliott sequence over short term basis, we think that the fifth wave hadn't been placed yet while the forth wave might have taken the "Running flat" shape. Therefore potential bullishness could be seen today, particularly if the metal succeeded in breaching 18.05 zones. Note that, momentum indicators might cause some kind of fluctuation. 

Recommendation Based on the charts and explanations above our opinion is, buying silver from 17.90 targeting 18.50 and stop loss below 17.40 might be appropriate

Gold

Yesterday's expected bearishness has been stopped at the pivotal support levels of 1122.00 but actually gold's bullish trend is strong enough to take it towards 161.8% expansion level at 1149.00 and it might extend further towards 1157.00 levels, which represent the extreme technical target for the CD leg of our harmonic AB=CD pattern. Thus; potential bullishness could be seen over intraday basis without ignoring the overbought signs appearing on momentum indicators.

Recommendation Based on the charts and explanations above our opinion is, buying gold from 1134.00 targeting 1155.00 and stop loss below 1117.00 might be appropriate.

Crude's trading has been wedged since last Monday within the sideway range between support 86.25 and resistance 87.05, while noting momentum indicators entering overbought areas that may cause more sideway fluctuations. We expect more bullish movement today that will start with the breach of resistance for the current range, which will pave the way towards $88.00 then 89.50 per barrel. Keep in mind that the breach of 86.25 will weaken chances of achieving this awaited ascend.
Recommendation Based on the charts and explanations above our opinion is buying oil with the breach of 87.05 targeting 88.00 and stop loss below 86.25, might be appropriate.

report as on 06/04/2010 gold , silver & crude

Gold closed sharply higher due to short covering on Monday as it consolidates some of last week's decline but remains below the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, the reaction low crossing is the next downside target. Closes above last Wednesday's high crossing would temper the near-term bearish outlook in the market.

Silver closed higher due to short covering on Monday but remains below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are neutral to bearish signalling that a short-term top might be in or is near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it renews the rally off February's low, the 75% retracement level of the aforementioned decline crossing is the next upside target.

Crude Oil closed higher on Monday and above the 20-day moving average crossing confirming that a short-term top has been posted. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends today's decline, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing would confirm that a short-term low has been posted.

 

report on nifty as on 06/04/2010

The market opened higher but in the second half, it came into short covering mode and that has pulled the market
towards 5380 levels. As per the daily chart, the market is heading towards the upper boundary of the rising channel
which is close to 5380/5440. We may expect the rally to pause between or around these levels. One should be purely
of the view to trade with tight stop-losses as the upside seems to be limited. But at the same time, avoid contra calls
to short in advance. As the divergence is missing on daily and weekly chart, we can only say buy on declines especially
non-index heavy weights second liners with a trading view.
For the day the 5330 may act as a major support for the market and 5380/90 may act as an immediate hurdle.

report as on05 /04/2010

MARKET STRATEGY

In a traditionally weak month for the Indian markets, the Sensex staged a

comeback and rose 7% (till March 28) on the back of supportive global cues

and robust foreign fund flows. The sustained foreign fund flow enabled the

markets to take the recent rate hike by the RBI in its stride. Rupee

appreciated sharply against the dollar on strong FII flows. The budget did

not contain any negative surprise and this also helped sentiments.

Macroeconomic data continue to be healthy with the IIP rising by 16.7% in

January 2010. On the global front, Greece took several austerity measures to

correct its fiscal mess. The EU and IMF have agreed to work together to help

Greece deal with the debt crisis.

Post the recent rally, markets are close to 17,700 levels, the highest level in

past 52 weeks. In our previous updates, we had turned cautious at these

levels on risk of higher interest rates triggered by rise in inflation and global

uncertainties (Greece is a case in point). Markets have tended to correct

downward at these levels. We maintain our cautious stance for the near

term.

While upside based on the near - term valuations is capped, positive returns

could be expected in the medium term, in line with higher comfort on FY11

estimates. Our optimism is based on continuing strength in the Indian

economy and the GDP growth returning back to its 8-9% trajectory in FY11.

With a bulk of its population in the working age group, India has a

compelling domestic consumption theme, which should keep the foreign

investors interested in the Indian markets. We recommend using declines to

accumulate stocks with a medium term perspective and continue to

recommend a bottoms-up approach towards the Indian equity markets. The

risk to our call comes from the global economy, which may impact fund

flows into India and the monsoons.

report as on05 /04/2010

On Friday the market opened higher and sustained well above the level of 5290 in the second half with specific activity in

index stocks. The sectors like Realty, Commodity and Capital Goods did well, whereas IT and defensive sectors FMCG and

Pharmaceutical failed to outshine the market. The real estate sector did well is may be because of low base after a steep

fall during the budget. However, the real winners were Commodity (Metal and OIL and Gas) and Capital goods as they

have managed to gain in spite of quoting at highest high level of the current rally. Another reason may be the discounting

of the positive Job numbers of US in advance.

As per weekly pattern, the market has gained for 8th consecutive week. Even though the rate of advances is diminishing

the market momentum is still strong and is moving up with a stock specific correction. On the higher side, we may expect

minimum 5380/18150 in the near-term. As per weekly rising channel, the market may even move to 5440/18350 levels in

the medium-term. However, as per the over all move, we will give importance to 5380 levels. On the lower side, the

market has major support in the range of 5260 and 5235 on weekly basis.

Our advice is to be cautious while adding fresh long positions around 5380 levels. However, one should be aggressive to add

fresh long positions on intra day declines. As global cues are positive, we may expect higher opening towards 5330 levels,

but in case if it corrects after an opening, then the strategy should be to add long positions at support levels 5310 and 5290

(17740/17660). For the week, we may expect positive momentum in power (NTPC CESC, PFC), small size banks (Dena, UCO,

IFCI), real estate (DLF, HDIL, Unitech) and metals (JSWSL, Bhushan steel, Hind Zinc), capital goods (ABB, JP and Larsen).