"TRADING IDEA FOR WEDENESDAY (09.06.2010)"

The European markets closed with losses on Tuesday, even though they were off their lows reached intraday. The FTSE, CAC and the DAX closed with losses of 0.81, 0.98 and 0.62 percents respectively. The US markets opened positively on comments from Fed Chairman Ben Bernanke discounting a double dip recession and on the strength of materials and energy stocks. However, the Nasdaq index lost on weak tech stocks.
The technical position of the Indian market has weakened substantially on Tuesday. The Future has again closed inside the downward sloping regression channel. It has also closed below the 200 DMA at 5015. The only hope for bull is that it has not yet broken the 50 week moving average at 4933. If the Nifty Futures were to hold the 4910 to 4933 support from the 50 WMA, it may test the 200 DMA. Below the 4933 level, the futures are supported only by the downward slopping regression channel lines and the previous lows.
A lot of action is being seen in MNC counters following expectations of disinvestment after the latest directive asking for a 25% public float for listing. The maximum impact is expected on PSUs, as each of the top 10 PSUs (by market cap) has GoI shareholding above 75%. The government’s revenue from the sale of spectrum for 3G and broadband wireless access is set to cross Rs1000bn with a pan-India bid for BWA touching Rs106bn on the 12th day of the auction. At this bid amount, the government will earn ~Rs320bn from the sale of BWA spectrum alone, according to a report.
FOR TODAY::

BEARS ARE WAITING FOR EVERY UPMOVE TO SHORT.
BULLS ARE NOT READY TO BUY IN DIPS.
EVEN GLOBAL MARKETS READY TO FALL FOR NEWSFLOWS.
RECOMMENDATIONS::
1. Mahindra & Mahindra, CMP: Rs 545,Target price: Rs 725, Upside: 33.02%,
Brokerage: Emkay, Recommendation: Buy
2. SAIL, CMP: Rs 202, Target price: Rs 235 Upside: 16.33% Brokerage: ICICI Sec.
Recommendation: Buy
3. Jaiprakash Associates, CMP: 120, Target Price: Rs 173, Upside: 44.16%, Brokerage: Sharekhan, Recommendation: Buy
4. Hindustan Unilever (HUL), CMP: Rs 235, Target price: Rs 204, Downside: 13.19%,
Brokerage: Anand Rathi, Recommendation: Sell
5. ITC, CMP: Rs 282, Target price: Rs 251, Downside: 10.99%, Brokerage: Anand Rathi Recommendation: Sell
6. Hero Honda, Target price: Rs 1,800, Downside: 6.15%, Brokerage: Anand Rathi,
Recommendation: Sell

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