Market Report 12 Feb 08

It was a power gone day for the markets yesterday , we have informed yesterday only that the Rpower trend will decide the further direction of the markets for the day .
The listing was very bad and the stock on intraday basis went as low as upto 355 to close below isse price of 430.
The retail investors sentiments are very badly hurt in the past 1 months and that what making the retail investors to stay away . No of cashes, with two mega ipos like REL andFUT had sucked enough liquidity .

We believe in the Indina Growth story and we can invest in the fundamentals of Indina Economy . We dont need any FII to make our marklets rise as we CAn ourself make the economy grow and can help capital markets to grow as well.

FII were net sellers and they are continusly selling , With the last week there were shorts created and we have seen FII as net sellers ion yesterday trade also .
We belive markets to bottom out at 15500-16000 lvls.
ANd correction should be stopped out at these lvls. Bounce back is on cards and would be there but after a little consolidation.
Last time when nifty broke 200 Dma the sensex took six months to recover.

Hiow much it would requiore this time , no body knows.
Nifty yesterday broked 200 Dma as expected we saw a free ffall to 4850 lvls.

We have advised our investors to close all longs at 5250 lvls . And u can see the result itself.

The longs been cvrd now u can get ur buys and holdings same at almost 30 % discont ..

We belive some more pain left and once we feel the pain is over , we will put our buy call on the scripts..to give u atlest 50-60% return in nxt 6-8 months.

The today markets likely to open flat to close in positive trend.
The recovery in US markets and A flat kind of indices in Asina markets.

But we dont suggest to buy or hold ..
intrday trading can be very dangerous and the markets is not for intrday..

if we close below 4750.. we suggest to go short and strictly cvr all longs.
Anything abv 4925 can be taken a bit positve and if we close abv 4975 we can maintain our longs..

IFCI, is looking forward to re-structuring after calling off sale of 26% of its equity. The company is reported to be on look out for an angel investor and is willing to offer VRS to cut costs.. buy call gvn yesterday to moneygurus .. cliets..

State Bank of India has cut prime lending rate by 25 bps. The rights issue of SBI will opens February 18 and closes March 18. Canara bank too has cut the prime lending rate by 25 bps..

Tata Consultancy Services, outsmarted many analysts , to hike pay by 15%, starts 2nd Hyd centre with 8,000 employee capacity, and is likely to hire 22,000 freshers.. it was buy call yesterday..

also look for Rpower if u belive in Reliance story...

Gayatri Projects is planning to offload up to 49% stake in its newly formed holding company Gayatri Infra Ventures Ltd..

Vivimed Labs is acquiring James Robinson, a subsidiary of UK-based global chemicals major Yule Catto & Co..

Everonn Systems has acquired Patna-based Toppers Tutorial that operates in the IIT-JEE and AIEEE entrance exam space..

NTPC has initiated a move to place letters of award for five projects with a total capacity of 5,300 mw..

DLF expects to list its US $1.5bn property trust IPO in Singapore in the second quarter of this year..

Have a grt daY !!!