Wednesday woes...Bears check in- Wait and watch

The SEBI discussion paper coupled with global weakness will see a sharp fall at start. Therefore, we are avoiding any calls before the bell.

Wait for attractive levels and pick up stocks for the medium to long term. And in case of a sharp bounce back in the coming days, no harm in booking profits.

It’s set to be One Fine Day for the bears who have all it takes for things to go their way. Liquidity may see a pipe burst as SEBI’s paper suggests foreign institutional investors may not be allowed to issue or renew offshore derivative instruments. In fact they may be required to extinguish existing participatory notes in 18 months. The regulator has sought a response to proposals by Oct. 20.

The rupee is set to fall from near a 9 1/2-year high. Who knows, the optimists may look at some IT counters at lower levels.

Federal Reserve Chairman Ben Bernanke warned in a speech that weakness in the housing market would likely drag on growth through early next year. Federal Reserve Chairman Ben Bernanke said the central bank's rate cut in September has shown signs of success, but cautioned that lenders and investors must bear responsibility for financial decisions that caused the subprime mortgage meltdown.

The Nasdaq and Dow are down less than a percent.

Among the Indian ADR’s, HDFC Bank was the major loser, it fell by over 10%. Others like ICICI Bank, Satyam Computer, Sterlite Industtries and Patni Computers declined over 5% each.

Japanese stocks slipped after Wells Fargo & Co. said it lost almost $900 million on home equity and consumer loans, renewing concern the U.S. subprime mortgage crisis will reduce earnings at financial companies.

Sun Pharma receives receipt of covenant on generic Effexor XR ANDA
Volatility to continue!

Volatility was back on the bourses as markets closed on a flat note. Alternate bouts of buying and selling often tossed the key indices in positive and negative terrain. However, after hitting a low of 18,777, benchmark Sensex recovered over 250 points to end almost unchanged.

Life after 19k -Staying Alive- morning song for bears

Life after 19k -Staying Alive- morning song for bears

Intra-day Stock Ideas
Nifty (5670) Sup 5539 Res 5802

Buy HDIL (765) SL 759
Target 777, 780

Buy CESC (575) SL 570
Target 585, 587

Buy MTNL (168) SL 164
Target 174, 176

Sell Patni (470) SL 475
Target 460, 458

Sell IOC (450) SL 455
Target 441, 439

The bulls sure don’t want hell in the markets. They may just give the bears a few moments of fame. No amount of warnings seem to stop the bulls. The Finance Minister's cautionary words or the bomb hoax are dismissed too easily thanks to liquidity. Today, we see a slightly lower opening given the declines in the US and Asian markets. But, powered by the strong undercurrent, the bulls are most likely to fight back if not today, expect them tomorrow.

The bears have been thrashed like the Aussie cricket has done to our men in blue. There may be an odd day when the bulls might want to take their foot off the accelerator. But, on the whole the rally is here to stay and the pace of it will keep on surprising the most experienced of the market pundits.

Of course, the relentless advance over the past couple of months or so has been fueled by non-stop inflow of foreign capital money. This trend looks set to continue for a while before there is some cooling. Backed by the strong outlook on the Indian economy, good momentum in corporate earnings growth and reduced concern on the political front, the key indices will continue to break new grounds and conquer new frontiers.

Trade safe

Happy selling
reg
Kalpesh Patel

Market to be choppy -be carefull book profits..

Market to be choppy -be carefull book profits..
for HAPPY DIWALI....

Nifty (5428) Sup 5329 Res 5466

Buy Hero Honda (756) SL 750 Target 769, 772

Buy Bharat Forge (290) SL 285 Target 299, 301

Buy ACC (1251) SL 1238
Target 1278, 1283

Sell NDTV (365) SL 370
Target 357, 355

Sell Cummins (428) SL 433 Target 420, 418

Bulls and bears set to battle

After Friday’s fall, the bulls may have rested over the weekend hoping it was just an aberration. Bears too got an opportunity and are unlikely to easily give in to the bulls in the coming week. For the day, we see a positive opening on the back of encouraging signals from the US market as well as rest of the world. But the current choppiness is here to stay. Reliance may have not announced a split/bonus as many market participants would have wanted to. But, the results day may spring some surprise. So watch that counter closely. Also keep an eye on RCOM, as the company is likely to make a slew of announcements.

What remains to be seen now is whether the bulls will resume their shopping spree this week as the pace of the result announcements accelerates. As has been the case over the course of the past two months or so, much will hinge on the liquidity factor. As long as the FIIs are pouring money into Indian stocks, the bulls will remain in complete command, barring an odd bad day in office like it was on Friday.

Once again I suggesh be carefull book profits for
happy diwali..
trade safe

Kalpesh Patel