HOW MARKET REACT TO RBI POLICY?

19-03-13

IF WE DISAPPOINT, WE WILL LOOSE!

MARKET TREND:

YESTERDAY MARKET PLAYED WITH INFLUENCE OF PEER MARKET AND INTERNATIONAL NEWS. MEDIA ALSO GO ON REMINDER ABOUT PVT. BANKS MONEY TRANSACTIONS ISSUE AND GOVT. ACTION THERE ON.  

MARKET EXPECTING INT. RATE CUT BY 25 POINTS.  IF WE CONSIDER PETROL PRICE REDUCTION, BANKS LIQUIDITY (TAX COLLECTIONS) , IPP & INFLATION FIGURES, RBI MAY NOT NEED TO TAKE ANY ACTION. ALSO PROPOSED TAX & POLICY CHANGES ARE YET TO  IMPLEMENT AND SEE ITS EFFECT, FIN MINISTRY ALSO MAY NOT BE HURRY TO GIVE CHOPS TO INDUSTRY.

TILL THE RBI ANNOUNCEMENT COMES, MARKET WILL BE ON GREEN, AND IN CASE RBI REDUCES REPO RATE (POSSIBILITY) IT WILL BE BOOST TO BULLS AND ALL HIGH BETA STOCKS WILL BE IN LIME-LIGHT. NIFTY MAY GET RESISTANCE @ 5890/5900.

NIFTY SPOT LEVELS:

Pivot: 5833
Resistance: 5852/5869/5888
Support: 5816/5797/5780

NIFTY FnO BAN: PUNJLLOYD

STOCKS FOR INTRA DAY:
WELCORP EQ: BUY > 51.75 TRG 53.25 SL 50.50
STFC EQ: BUY > 708 TRG 727 SL 697
JUBLIFOOD EQ: SELL < 1273 TRG 1246 SL 1290

STOCKS TO WATCH (ON DELIVERY BASIS)
EMAMILTD (EMAMI LIMITED)
THERMAX (THERMAX LTD)
VENUSREM (VENUS REMEDIES LIMITED)
VINYLINDIA (VINYL CHEMICALS (I) LTD.)
KLRF (KLRF LIMITED)
PGHH (P&G HYGIENE & HEALTH CARE)
NOVOPANIND (NOVOPAN INDUSTRIES LTD.)