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 !!!

Market Report 11Feb-08

A very important week for the Indian markets , as the important week would decide the further trend in the markets. The historical RPower will list today , and the listing would be some how decide the major market trend , Yes there is markets becide the Reliance also but the Rpower no one can forget . Indina's largets shareholder script will make its debut today .

ALthough analyst are not very confidence about the scripts as the large holders are ready to sell the script and book each and every penny of profit that they can avail from this script .
People have borrowed money thinking that , huge premium of almost 400-500 Rs will make their price double after listing , but due to bad market conditions the premium has fallen to 100 Rs or in range of no trading .

The important posint here is lots of forces are there that will try and make the Rpower listing to be bad and even it can fall below the issue price or not whether it can sustain the aggresively issue price ,, that has to be watched..
One thing is sure if listing is done well may be in coming time long term the script can be accumulate in dips .. We belive in Reliance growth stroy and Rpack never made the investors confidence down .

SO whether the Rsupporters would be able to hold the power with their power or not that only time will show..

Markets would surely follow the trend and a weak closing below 4975 would def lead to bears to attack the markets and it could further fall to 4500-4750 lvls..

The imp lvls to watch here is 5080 on nifty . wE expect nifty to be in range bound for the week and all rallies in nifty could be used to sell ur holdings .
Nifty on the upside could show us 5300 -5350 mark where 5250 would be important resist lvls.

Weak opening in Asian markets , could lead to weak opening in Indian markets too..
We expect the weak to be very sluggish beside Budget ...the main trigger as of now..

We will b gvng u budgetry pics and the effective scripts due to FM .. announcements..

Trading today would be very risky and brave heart can add longs as the current open post are almost in shorts as we can see the nifty at discount of 40 so most of positions are build in shorts and we dont know if short cvring would be therer today or at lower lvls..
BUt all long build up by bulls must have a SL of 4975 which is 200dma avrg..

ANd we dont suggest holding longs on closing below 4975..

Watch ot for Reliance Communications to invest Rs8bn to enhance its managed global Ethernet services footprint for enterprises..

Moser Baer is investing US$1.5bn in solar power over the next two years..

Bank of India has raised Rs.13.6bn through a QIP issue..

SCI plans to spend US$500mn for acquisition of bigger vessels..

Aditya Birla Group is planning to form a JV with a foreign company to make products for the export market..

all abv and we bulls still markets to reverse its trend and touch new highs in the mid term..

Now how the reversal would be that has to be watched.. but short time .. we are not very bullish .. all investors would be here by advised to think and buy for mid term prospect..

Have a GRt DAY !!