Daily Market Tips

• The expansionary monetary policy in the US will weaken the dollar further and support equity markets. Any pullback will be short lived, even though fundamentals are not very strong. We maintain our Sensex target of 18000 for the near-term. 
• Hold Tata Motors with target of Rs 650-660 and stop loss below Rs 620. The stock is currently trading at Rs 640.25, up 1% on the BSE.
• Buy Dabur with target of Rs 175 and stop loss of Rs 161. The stock is currently trading at Rs 167.95, up 1.2% on the BSE.
• Sell Educomp Solutions with target of Rs 720 and stop loss above Rs 803. The stock is currently trading at Rs 783.20, up 1% on the BSE.
• Buy Sesa Goa with strict stop loss of Rs 345. The stock is currently trading at Rs 363.10, up 1.8% on the BSE. 
• Buy REC with target of Rs 265 and stop loss of Rs 232. The stock is currently trading at Rs 238.10, down 0.4% on the BSE. 
• Buy Reliance Communications with target of Rs 190 and stop loss of Rs 173. The stock is currently trading at Rs 179.80, up 0.4% on the BSE.
• Hold GVK Power with stop loss below Rs 44. It has resistance at Rs 53 crossing which it will give good returns. The stock is currently trading at Rs 50.65, up 0.5% on the BSE.
• Buy Sintex Industries with intra-day target of Rs 232 and stop loss of Rs 215. The stock is currently trading at Rs 224.30, up 1.5% on the BSE.
• The market opens on a flat note, despite good cues from the US. Earlier, the US markets ended strongly positive, hitting new 2009 high with stocks hitting their best levels of this year. Asia is trading quite flat. Sensex is trading at 17011, down 20 points from its previous close, and Nifty is at 5049, down 8 points. CNX Midcap index is up 0.02% and BSE Smallcap index is up 0.2%. The market breadth is positive with advances at 422 against declines of 310 on the NSE. 
• Buy Aban Offshore at Rs 1295 with intra-day target of Rs 1315 and stop loss of Rs 1285. The stock last traded at Rs 1291.45, up 5% on the BSE.
• Sell Aurobindo Pharma with intra-day target of Rs 757 and stop loss of Rs 775. The stock last traded at Rs 770.95, up 0.2% on the BSE.
• Buy Kalyani Steels with intra-day target of Rs 145 and stop loss of Rs 135. The stock last traded at Rs 137.45, up 5% on the BSE
• Buy Cairn India November Futures above Rs 280 with target of Rs 285 and stop loss of Rs 278. The stock last traded at Rs 280.30, up 1.4% on the BSE
• Buy Nifty 5100 Call Option at Rs 55 with intra-day target of Rs 65 and stop loss of Rs 50.
• The market will be in consolidation mode today and as long as 5050 holds, the short-term upward momentum will continue. Upward movement is always slow in comparison with correction and expects 5150-5180 levels to come in a few days.

USD/INR DAILY

In continuation of the downward trend being witnessed in USDINR, the pair fell and traded below the 46.15 levels for most part of the day eventually closing at 46.27 levels. The fall in dollar was the outcome of bullish trend witnessed in the equity markets as well as fall in dollar index. Nifty rose by 59.10 points or 1.18% to close the day at 5058 points. Buying was also witnessed in other indices across the globe with Dow Jones
rising by 1.33% or 136 point to trade at 10406. Dollar index continued to trade near 15 months low at 74.97 after investors questioned Federal Chairman Ben .S, Bernanke’s ability to bolster the greenback after he pledged to support it. In a speech to Economic Club of New York the Chairman stated that Economic “headwinds” of reduced bank lending and a weak labor market will probably restrain the pace of U.S economic recovery and warrant continued low borrowing cost. In domestic news The RBI released Survey of professional Forecasters which indicated that Indian economy may grow by 6% in FY10. For Today we expect 45.90 to be a key support level. A breach of that levels will take the pair towards 45.75. In medium term one can expect USDINR to touch 45.00.

Yesterday Market Summary

Last trading day: Monday, 16 November

Positive global cues saw our market build gains throughout the day and close in the positive. The gains were led by good buying in realty, metal and auto stocks. Sensex shut shop at 17032, up 183 points and Nifty at 5058, up 59 points from the previous close. CNX Midcap index was up 1.1% and BSE Smallcap index was up 1.22%. The market breadth was positive with advances at 878 against declines of 391 on the NSE. Top Nifty gainers included Suzlon, Reliance Power and Maruti Suzuki while losers were HCL Technologies, TCS andPower Grid.