Good morning.

Dear friends,

…..despair???

Markets fail to understand the budget. There are no big ticket announcements. We feel finance minister is trying to hold his cards too close to his chest and will reveal them over a period of time. Constrained by leftists’ pressure tactics and political compulsions due to upcoming elections in four states.

Our verdict – expect difficult times on the street.

Be extremely cautious with your long positions. Avoid going long for next 2 days. Wait for clearer picture. Be in cash to cash in on the opportunities.

Please note: figures in brackets are for nifty. All prices / levels mentioned in this newsletter are cash market prices / levels only)

Always trade with trend!! Stoplosses are a must!

US markets were down. Asian markets are trading down. The bias for markets is positive. Today, indices have a minor support at 10335 (3066) which if broken by margin of more than 15 (5) points expect level of 10247 (3042) or even 10118 (3008).

If indices are able to surmount yesterday’s high of 10422.65 (3090.30) and sustain above that mark for more than 30 minutes then the rally is expected to continue it’s upward march reaching levels of 10464 (3100) & 10551 (3100).

Colgate – stock is turning weaker by the day. Go short with stoploss placed at 395 for targets of 375, 356 or even 340 in coming days.

Glaxo pharma – go short with stoploss placed at 1342 for target of 1295, 1240 & 1200 in coming weeks.

Maharashtra seamless – to turn weak has to break 570 mark comprehensively. Bullish reversal possible only above 605. Expected targets are 550 & 535.

Ntpc – below 130 expected to fall down to 125, 122 & 119. Go short if rises with stoploss placed at 136.25.

Accumulate cement, tea & sugar stocks at every decline.

Tea stocks had staged a smart rally. May lose steam if markets turn negative.

Hexaware looks hot if able to cross 139. Maintain stoploss below 134. Targets are 144, 148, 151 & 160.

Reliance energy – buy with stoploss placed below 605. Stock all set to roar to 645 & 660 in short term.

Paper stocks were a fancied lot with tnpl & bilt notching up smart gains. We continue to remain bullish on both these stocks!!!

Jk paper is currently available cum-dividend of 14% and stock is yet to make it’s mark. We strongly recommend to buy with stoploss placed below 60 on closing basis. Crossover and close above 63 will prove to be magical for this paper stock. Expect targets of 67, 70, 78 & 84 in short term.
Positive stocks and positive sectors are : FMCG ( HLL, ITC, Godrej Consumers) , Auto ( Maruti, Tata Motors, MnM) , Cement ( ACC, Ultratech, Grasim), Paper (Orient Paper). Negative Sectors are : Oil and Gas (ONGC). On the news side : Hero Honda has recorded 12 % rise in their sales in February. Jindal Stainless have raised their prices by 7%. Stocks with positive bias are: Tisco, ACC, Maruti. Stocks fro Investment are: Orient Paper, HLL, ITC, Alphageo, Indian Hotels

Take care!!

Have a nice day!!

Best regards,

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