Markets on 06Mar09

Looks like I need to get into the habit of posting the e-mailed version -

Markets are expected to open in the red based on global cues (~1%-2% negative).US markets shed more than 4% with the S&P index being at the lowest since 1996.

Nifty outlook - Likely to be range bound and may move in either direction. On upside, no significant upmove expected. On spot levels break below 2500 is crucial as break below this level may take Nifty further down.

Key levels for the day - 2500/2540 and 2640/2700.

Stock specific - Can go long on Cairn from a delivery perspective as crude is likely to move higher from current levels.

Others - Buy Nifty Mar 2600 PE at 112, target 132 SL 100. Also Sell RIL 1133, SL 1145, target 1116/1100.

Markets on 05Mar09

Oops... forgot to post this
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Yesterday's market fall was arrested by the V-shaped recovery seen yesterday in the last one hour of trading - a result of RBI cutting rates.Repo rate is at 5% while reverse repo stands at 3.5% after the rate cut. Temporary bullishness is not ruled out because of the positive impact of ratecut. However,as mentioned before, unless the market can successfully cross 2800, bearish trend will continue.FIIs continue to be sellers in the market each day and prov. figures show that they sold ~ INR 494 cr yesterday. 2550-60 is going to be a crucial support. Key support and resistance levels are at 2560/2620 and 2660/2700.