Hold a stock specific view

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REJIG AT JSPL: RS SHARMA, FORMER CMD, NTPC TO JOIN JINDAL POWER AS THE MD: SRCS
TVS MOTOR TO NDTV: SEE 5% MKT SHARE & ANNUAL VOLUMES OF 3,00,000 UNITS BY 2013-14 IN INDONESIA
COTTON EXPORTS: INDIA TO LIMIT COTTON EXPORTS TO 5.5 MN BALES FROM OCT 1
RUPEE AT CLOSE: RUPEE CLOSES AT 46.63/$ VS 46.71/$ ON SEPTEMBER 2
ROUBINI: ECB POLICY SHOULD BE LOOSER; SUPPORT WEAKER EURO
U.S. ECO DATA: AUGUST NON-FARM PAYROLLS DOWN 54,000 VS CONSENSUS OF 1,05,000
U.S. ECO DATA: AUGUST UNEMPLOYMENT RATE RISES TO 9.6% VS 9.5% IN JULY
FUND ACTION: FOREIGN FUNDS NET BUY `147.90 CR ($31.62 MN) IN EQUITIES ON SEPT 2
FUND ACTION: MUTUAL FUNDS NET BUY `19.5 CR IN EQUITIES ON SEPTEMBER 2
FUND ACTION: DOMESTIC FUNDS NET SELL `123.5 CR IN EQUITIES ON SEPTEMBER 3 (PROVISIONAL)
FUND ACTION: FOREIGN FUNDS NET BUY `283.02 CR IN EQUITIES ON SEPTEMBER 3 (PROVISIONAL)
BOC INDIA: STARTS COMMERCIAL PRODUCTION AT THE DEHRADUN UNIT
NMDC: IN TALKS TO BUY STAKE IN ZIMBABWE ROCK PHOSPHATE MINE
BASF: BOARD TO CONSIDER MERGER OF UNITS WITH THE CO ON SEPTEMBER 9
NATCO PHARMA: CELGENE PLANNING COMPLAINT AGAINST NATCO PHARMA ALLEGING INFRINGEMENT
NTPC: MAY SET UP 1320 MW COAL-BASED POWER PLANT IN B'DESH IN JV WITH BPDB
ANANT RAJ INDS: ACQUIRES JUBILANT SOFTWARE SERVICE FOR `81 CR
MARKETS THIS WEEK: SMALLCAPS: EIH ASSOC HOTELS UP 62.4%, VINDHYA TELELINKS UP 42.6%
MARKETS THIS WEEK: MIDCAPS: UNITED BREWERIES UP 30.5%, KEC INTL UP 15.4%, NIRMA UP 14.3%
MARKETS THIS WEEK: NIFTY: BHARTI UP 7.5%, RANBAXY UP 7.2%, TATA STEEL UP 6%, UNITECH UP 5.3%
MARKETS THIS WEEK: FMCG INDEX UP 3.16%, BSE REALTY INDEX UP 3.05%, AUTO INDEX UP 2.96%
MARKETS THIS WEEK: CNX MIDCAP INDEX UP 1.84%, BSE SMALLCAP INDEX UP 2.75%
MARKETS THIS WEEK: SENSEX CLOSES UP 1.17%, NIFTY UP 1.26% FOR THE WEEK
TVS MOTOR TO NDTV: TO SET UP AN ENGINE PLANT & DESIGN CENTRE IN INDONESIA POST 2011
BAJAJ FINSERV: SEBI NOD AWAITED FOR MF BIZ; TO START OPS IN 9 MONTHS FROM APPROVAL
TATA STEEL: MAY SELL $1-1.5 BN IN BONDS WITHIN THE NEXT YEAR TO REPAY PORTION OF LOANS
TATA STEEL: CO PLANS TO REFINANCE AS MUCH AS $6.5 BN LONG TERM DEBT: CFO
TATA STEEL: SBI MAY ARRANGE GBP 1 BN OVER THE NEXT 7 YEARS
TATA STEEL: IN TALKS WITH BANKS FOR GBP 3.5 BN ($5.4 BN) IN LOANS FOR ITS U.K. UNIT
CIPLA: TO GIVE DETAILS OF POSSIBLE AFRICAN INVESTMENT IN 45 DAYS

Updated: 15/02/2010 | 08:59 AM IST

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Hold a stock-specific view

Mandar Jamsandekar

Monday, February 15, 2010 (New Delhi)

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There would be a lot of choppiness in the market but holding a scrip specific view would help players deal with it safely. The indices falling down to test the supports once again cannot be denied and if this happens with the indices succeeding to move up again would improve the overall sentiment in the markets.

The sell-off which started in the mid of January 2010 finally was arrested as the indices approached the November 2009 support levels. We are entering a crucial week before the budget and therefore the supports will play an important role for the coming week. The built-up before the budget would tell us whether the budget would be appreciated by investors.

So as of now till the supports are alive, market players should avoid shorts. On weekly technical charts, the current levels where the indices have managed to take support are levels from the Neckline of the Inverted Head and Shoulder pattern. Also let’s not forget that corrections are healthy for the markets.

Technically, supports are likely at for the Sensex @ 15807 – 15651 and @ 4712 – 4675 for the Nifty. These are the levels which have helped the indices arrest the selloff. They should be watched very closely by the market players throughout the week.

On the upside Sensex would face resistance at 16522 and then at 16877. For the Nifty, it would be at 4843 – 4882 – 4951 – 5034 levels.