"TRADING IDEA FOR TUESDAY (15.03.2011)"

FIIs were net buyers with the tune of Rs.414.35 cr (prov. cash market fig).

The BSE 30-share Sensex was up 265.39 points or 1.46% to 18,439.48, its highest closing since 9 March 2011. The index fell 18.66 points at the day's low of 18,155.43 in early trade. The BSE sensex rose 289.75 points at the day's high of 18,463.84 in late trade.The S&P CNX Nifty was up 86.05 points or 1.58% to 5,531.50, its highest closing since 4 March 2011. The Nifty oscillated between high of 5,537.30 and low of 5,434.25 during the day. The BSE Mid-Cap index rose 0.49% to 6,561.48 and the BSE Small-Cap index rose 0.26% to 7,920.72. Both these indices underperformed the Sensex.

The market breadth turned positive. The breadth oscillated between negative and positive throughout in the day. On BSE, 1,517 shares advanced and 1,378 shares declined and a total of 142 shares remained unchanged. Among the 30-share Sensex pack, 26 gained while only four of them declined.

The total turnover on BSE amounted to Rs 2968 crore, lower than Friday's turnover of Rs. 3639.44 crore.

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VIEWS FROM DIFFERENT BROKING HOUSES:

SKP SECURITIES: “Nifty may face resistance at 5630-5750 and take Support at 5500-5420”.

CANARA BANK SECURITIES (CanMoney): “Technically, today Nifty formed a bullish candle after four bearish candles and erased fear about further fall in the existing levels. Today indices witnessed volatility with positive bias. Nifty broke the vital resistance level of 5,480 and 5,520 and maintained to close above these levels.  Nifty  also broke the vital support level of 9 and 14 SMA placed at 5,509, 5,456 and these level will act as a new support level in coming days. Nifty is trading below the 50, 100 and 200 days SMA which are placed at 5,588, 5,801 and 5,670 respectively and these levels will be acting as the resistance in the coming sessions. VIX closed at 23.30% which is a lesser when compared to last trading session’s value of 24.33%, thus indicating less volatility in market in the forthcoming sessions. RSI (14) for the day was at 52.35 levels and MACD was above the signal line, thus combined together they are giving the signals that market may witness ranged movement in the coming session”.

FAIRWEALTH SECURITIES: “Nifty attracted buying and closed above the previous two days high. Bulls may again appear aggressive at lower levels in the next session also. Nifty is expected to trade in the range of 5463-5563. Traders should note that 5609 and 5624 are resistance levels for Nifty. Breaching of 5463 level may cause selling pressure up to 5411. Oil-Gas and metals may again attract buying while sugar and cements stocks may face selling pressure at higher levels. Bank Nifty may trade in the range 10850-11090. However, 10780 may act as an important support level. 11150 and 11280 are the resistance levels.”.

IIFL (Amar Ambani): “Market players seemed to ignore a marginal rise in inflation for February. India’s inflation rose to 8.31% in February as against 8.23% in the previous month. Market had expected inflation to come in at 7.8%. This means that the RBI will most likely hike its key policy rates by another 25 basis points on March 17. Investors should also keep a close eye on the overseas events, particularly in Japan, the Middle-East and euro-zone”.

KARVY STOCK:  “The market will take cues from the global markets and is expected to open on a flat to positive tomorrow. Trade long in Nifty from current levels else from 5500 with stop loss placed below 5480 targeting 5550–5580 levels”.

GABA FINANCIAL ADVISORY (Prakash Gaba): “So far the market is still in sideways zone the levels to watch are 5,460 and 5,560 for any sign of direction. The market unfolded volatile and flat; technically I would like to say that the bias is down and a strong resistance exists around 5,620. The support for the Nifty is at 5,400-5,300 and resistance at 5,620. For Sensex, the crucial support on the downside is at 18,000-17,800 and resistance at 18,500-18,752”.

KOTAK SECURITIES (Shrikant Chouhan): “Market last week was in very tight range after a good upsurge. Technically the pattern was of ‘Inside body’ with highs at 5,563 and low at 5,408. Current week the market has opened higher and traded well above the 5,500 mark; and closed the day on firm note above 5,525.  Market seems likely heading towards 200 DMA of 5,665. Any close above the level of 5,565 (above the highs of last week), will be confirmation for the rally. The rally can head to the level of 5,750 with minor resistance at 5,665 (200DMA). Markets have support at 5,440 and 5,410. Traders should look for initiating level based trading in Nifty-long above 5,565 for target of 5,750 with stop placed at 5,500 on closing basis”.

ANGEL BROKING (Mileen Vasudeo): “Markets opened flat but gradually picked up momentum on the upside as the day progressed which led the indices to close near days high. On the daily chart, after series of narrow range body formation we are observing a wide range positive candle which is above the 20-day EMA. This suggests upside in coming trading session. On the upside if indices trade above 18,465/5,539 levels then it would breach downward sloping trend line. Indices are then likely to test 18,583-18,737/5,565-5,608 levels. On the downside 18,310-18,214/5,490-5,460 levels may act as support for the day”.

FOR TODAY: EU as well as US markets closed in RED. Earlier, US markets were trading down 1%; However, it has tried to cover and ended nearly 0.5% down. All Asian markets are trading in DEEP RED. Nikkei (Japan) is trading down nearly 8%, Shanghai (China) is trading down more than 4%. SGX Nifty is trading at 5382, down 173.50 at 8.30 am. NIFTY WILL OPEN GAP-DOWN, NEARLY 5350-5380 AREA.

NOTE: Union Cabinet is likely consider a Constitution Amendment Bill tomorrow, to pave the way for implementation of Goodsand Services Tax (GST), also boosted sentiments.

As per reports, the Union Cabinet is likely consider a Constitution Amendment Bill tomorrow, 15 March 2011, to pave the way for implementation of Goods and Services Tax (GST), a major indirect tax reform proposal. The GST will subsume indirect taxes like exciseduty and service tax at the central level and VAT on the states front, besides local levies.

Meanwhile, the fourth advance tax payment installment due 15 March 2011 will provide a cue on Q4 results of individual firms. Indian Corporates are required to pay advance tax in four installments based on estimated tax liability for the year under review.
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