Money Mantra

Financial Focus Newsletter

 May 16, 2008

Nifty Mantra May 16,2008

Immediate support for the Nifty is around 5065-80 while some resistance is likely around 5148-57.

At last we had two consecutive days of one-sided move as indices rose for second consecutive day. Things were good from the very beginning and for a change market built on the momentum instead of giving up all gains. Rcom led the rise with more than 5% rise as stock reacted favorably to the SEBI's clearance for Reliance Infratel IPO. RIL too was in demand as it gained around 3.5%. L&T was another biggie that reversed the bearish trend of past few days and moved up sharply by more than 5% on very good volumes. Sugar as a pack witnessed great momentum as led by Renuka, most of the Sugar stocks gained ground on

excellent volumes. The prominent gainers for the day were Lupin, Triveni, Crompton, Bajaj Hind, Omaxe, Renuka, PNB, HDIL, Hindalco, Yes bank and India Infoline. Satyam and DrReddy's were the main losers, others being Voltas, Mphasis and Orchid. Breadth was positive while volumes were better than the past few days average. After giving some jitters initially during the week, market is comfortably placed within the expected trading range of 4950-5250. Even the stocks that were showing signs of breakdown, mainly RIL and L&T are now back in the neutral territory.

Nifty is likely to test the upper side of range i.e., 5250-5300. Rcom could see a strong breakout if begins to trade above 595 and might target 635-640 in coming days. Sugar stocks continue to display strong momentum with Renuka being the clear leader. It has closed on a new 52 weeks high and as mentioned on earlier occasions too, is likely to target 160-165 in coming days. Triveni Engg is another stock from the Sugar pack that would confirm a strong breakout if it closes above 132 for a couple of days. Amongst others more upside is likely in JP Asociates, SBI( above 1690), HDIL, ICICI and Sterlite Opticals(above 234).

Research Mantra

HOLDING PERIOD – 1 to 5 DAYS (Low Risky Call)

Dear members Buy Level is given according to Cash Market. When Level cross in Cash market you can buy in future. And one can also trade in Equity.

SCRIP

STRATEGY

STOP LOSS

TARGET

UNITECH FUT

BUY ABOVE Rs.291

283

298/???

NIIT TECH FUT

BUY ABOVE Rs.156

149

162/???

RPL FUT

BUY ABOVE Rs.186

181

192/198

Second target only for members

Equity Research/ Future call

Short Term without Risk call

BOMBAY DYEING ( Rs.928.55) : The stock is witnessing strong positive momentum and hence should be bought on all declines. Buying is advised above Rs.932 and add more if it crosses Rs.943.50 for a target of Rs.958-962. Higher target of ???  is also possible. A slightly loose stop loss of Rs.904 should be kept.

BTST CALLS ALERT!

Special Feature only for members…………………

Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. We are not responsible for any losses made by traders. And all fee is not refundable. By visiting our web or newsletter you are agree to our disclaimer and our terms and conditions. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. We are trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations. We have not any position in our given scripts but may be our members have.