Due to some computer problem, the blog I updated on Friday morning appeared as Thursday. The recommendation given on SBIN and HEROHONDA are for Friday trade.

The target given was achieved for both scrip’s.

Here after I specify the day in my post. Sorry for inconvenience!

MY VIEW

Despite good IIP data, market reacted negatively. Why? As the budget is expected to have more reforms and stimulus package, market players are buying in the market. In this situation, IIP data released on Friday beats the economist’s expectation and also gives the signal that the economy is recovering. As the economy is recovering and demand is picking up, government may eliminate the stimulus package or reduce the amount or take some other action in the budget, which surely will disappoint the market. As already the budget expectation is factored in and the positive IIP data disappointed the players, they started selling. I expect Monday too there will be some selling pressure.

VIEW FOR THE WEEK {15/06/09 – 19/06/09}

Technically in the chart bearish pattern is formed. NIFTY very strongly resisted at 4693 levels. Come week market will be too volatile. To my mind, the pre budget rally may terminate too soon because the economic indicators are turning positive will consequently enhance growth and the government budget which is expected to have more stimulus package to drive growth may renounce or reduce the packages, which is negative for market. The players buying on this expectation may wind up their position. I feel come week nifty may touch 4116 levels. Let’s watch what happens.

VIEW FOR MONDAY

NIFTY

Technically, I feel on Monday market may have a gap down opening and remain in negative zone. I feel nifty will trade between these levels: 4400 – 4550.

SUP: 4552, 4428, and 4341. RES: 4693.

LT

This scrip is strongly resisted at 1700 levels, technically a weak pattern is formed in the chart and it is a beta stock, so we can sell the stock if markets trade in negative zone for a target of 1455.

SUP: 1544, 1525. RES: 1700.

HDFCBANK

This scrip is resisted at 1580 levels and technically a bearish pattern is formed in the chart, so, if market trades in negative zone we can sell this stock for a target of 1440.

SUP: 1501, 1440. RES: 1580.

SUZLON

Technically a strong bearish pattern is formed in the chart and was trading in a tight range for past three days. If market trades in negative zone we can sell this stock for a target 92.

SUP: 110, 107. RES: 130.

RANBAXY

Technically a bearish pattern as formed in the chart. If market trades in negative zone we can sell this stock for a target of 258.

SUP: 269, 254. RES: 306.

Thanks for visiting!