Daily Trading Tips..

• Buy ABB with intra-day target of Rs 790 and stop loss of Rs 755. The stock is currently trading at Rs 775.90, up 1.1% on the BSE.
• The market opens on a flat note, on the back of weakness in global markets. Earlier, the US markets ended lower while Europe closed mixed. Asian markets opened mixed and are trading in the negative territory. Sensex is trading at 16743, up 47 points from its previous close, and Nifty is at 4967, up 15 points. CNX Midcap index is up 0.2% and BSE Smallcap index is up 0.5%. The market breadth is positive with advances at 457 against declines of 247 on the NSE.
• Buy Gujarat Gas above Rs 230 with target of Rs 242-246 and stop loss of Rs 222. The stock last traded at Rs 231.55, up 3.1% on the BSE.   
• Buy Tata Motors with target of Rs 635 and stop loss of Rs 610. The stock last traded at Rs 618.90, down 0.4% on the BSE.
• Sell NMDC with intra-day target of Rs 415 and stop loss of Rs 440. The stock last traded at Rs 437.25, down 5.2% on the BSE.
• Sell Axis Bank at Rs 980 with intra-day target of Rs 965 and stop loss of Rs 990. The stock last traded at Rs 979.15, down 2.6% on the BSE.
• Short Cairn India November Futures below Rs 279 with target of Rs 275-273 and stop loss of Rs 282. The stock last traded at Rs 277.90, down 1.5% on the BSE.
• Buy HCL Technologies at Rs 333 with intra-day target of Rs 342 and stop loss of Rs 327. The stock last traded at Rs 333.75, up 3.8% on the BSE.
• Short Nifty November Futures below 4950 with target of 4890-4875 and stop loss of 4980.
• The market may witness a swing session this Friday the 13th. The Nifty could swing between 4850-5000. He advises traders to go short in the Nifty with target of 4870 and stop loss of 5000. 

USD/INR DAILY

Dollar Daily

Dollar traded stronger on Thursday after five consecutive sessions of downtrend as rise of dollar index supported the currency markets. Dollar near month futures opened the day at 46.36 and closed near the highs at 46.63 rising about 27 paisa. Equity markets fell as Nifty closed 51 points down or 1.03% at 4952 points.
In what can be termed as bottom hunting, Dollar index rose from its crucial support levels of 74.85 and was trading at 75.60. The buying was witnessed as President Obama begins his 9‐day tour to China amid speculation that he would press for re‐valuation of yuan which has been tightly controlled by Chinese Central Bank. Another key reason for rise of Dollar Index was lower than expected weekly jobless figure which provide some relief to American planners. Unemployment rate has touched 26 year high in America causing widespread concerns and forcing Fed to keep its interest rate near zero levels. Better than expected Industrial production figures did not have any effect on USDINR, as it was under influence of international currencies rather than domestic factors. IIP rose by 9.1% from expectation of 7.0% for the month of September. For today we expect USDINR to rise with 46.95 acting as a crucial resistance for the pair. We recommend buying on dips for today.

Yesterday Market Summary

Last trading day: Thursday, 12 November

Flat global cues and profit booking saw a weak session for our market today that saw a selloff at close. The market saw a temporary bounce in the afternoon on account of good IIP data but sold off later. Sensex shut shop at 16696, down 153 points and Nifty at 4952, down 51 points from the previous close. CNX Midcap index was down 1.39% and BSE Smallcap index was down 0.27%. There was heavy profit booking in realty, metal and banking stocks while telecom stocks saw a breather thanks to good October subscriber numbers. The market breadth was negative with advances at 480 against declines of 763 on the NSE. Top Nifty gainers includedHCL Technologies, Idea Cellular and Suzlon while losers were DLF, Unitech and ICICI Bank.

Sensex could touch 20000 by end 2009. Nifty has formed a strong base around 15000-16000 levels. Investors on the sidelines will come into the market. Indian fundamentals are solid and market is likely to outperform. S&P 500 has a target of 1200 by end 2009.

 If Nifty breaks below its 50 DMA (Nifty level of 4888) then it will be a false breakout and market could head lower. Top picks in banking space, PSU: BoB,PNB, Central Bank, Allahabad Bank, in private banks:Yes Bank and HDFC Bank. In pharma: Lupin, Dr Reddy'sand Piramal Healthcare, in FMCG: Dabur, ITC andColgate.

Liquidity is the key driver for the market in the near term and earnings upgrades are now possible. We are bullish on India's economic outlook that is driven by domestic demand. Indian market is attractive for the medium to long-term and FII participation is likely to increase.