STOCK MARKET TREND : NOVEMBER 23 TO NOVEMBER 27, 2009

The market closed with strong note on Friday above 17000 on sensex. The US markets were marginally weak. DOW closed almost flat.

The trend is bullish and is likely to continue for next week and markets may see a level above 17600. There will be F & O settlement this Thursday so volatility will be comparatively high during the week. It would be wise to trade long than to go short because once market crosses 17250 it is likely to force shorts to cover aggressively. I believe that the market has potential to reach level of 18500 till the end of 2009. however, one should be cautious at these levels because at present the major driving force is liquidity and the major operators in the market are likely to start draining funds at higher levels. I would prefer to off-load at levels above 18000-partly if not fully. Keep on booking profits once sensex crosses 17800 marks but avoid going short.

Ashok Leyland has reached the target of 54 and is consolidating there. It may reach 63 once momentum peaks up.

I have been constantly recommending IGL(Indraprastha Gas) for last several months. I am confident that once it crosses 165+ mark it will fast reach the 210+ mark. It has very good long term potential.

Market has potential for going as high as 23000 but one should not get wrong idea of that happening in very short time. Market may make a recent new high but it will give sharp reactions before making new all-time highs.

I am back...

For last four weeks I could not post because I was engaged in some other important assignment and had little time to access both the market and the internet. Now I am back and will start posting from this week onwards. I regret my absence and the inconvenience created out of that.

MARKET TREND : OCTOBER 19 TO OCTOBER 23, 2009

WISH YOU ALL STERLING DEEPAWALI AND HAPPY NEW YEAR WITH PLEASANT SURPRISES

The year ended yesterday with positive bias and huge gains on yearly basis though the early gains on Muhurt Trading did not last and the market closed almost flat. Let us hope the year ahead brings more pleasant surprises for the investors. Market has crossed 17200 mark quite comfortably and has sustained above it indicating that its bullish character is still strong and it may continue to strengthen further in near future. It would be wiser to buy at every dip than to sell at every rise because the market has strong support levels near 16800 and 16200. I believe that even in the worst scenario the market is unlikely to test levels below 13800 whereas its upside at present cannot be predicted with accuracy. It definitely has strong resistance near 18500 but this cannot be used as an indicator to limit its upside. If 18500 is crossed successfully and comfortably then market may make a NEW HIGH before the next Muhurt Trading.

The most important sectors which can lead the next rally appear to be POWER, PHARMA and FMCG. Mid-cap stocks may perform far better than the overall market. Some stocks of my choice are:[figure in bracket shows long-term expected target]

• CENTURY TEXT [596]
  
• RANBAXY [444]
  
• ORCHID CHEM [225]
  
• RPOWER [234]
  
• HUL [335]
  
• IGL [211]
  
• ITC [288]
  
• DABUR [180]
  
• ASHOK LEY [54]
  
• ADANI POWER [144]
  
• NTPC [252]
  

For present week the market has support near 16800 and 16500. It will find resistance near 17600 and 18000.

MARKET TREND : OCTOBER 12 TO OCTOBER 16, 2009

The market lost some ground during previous week. It is in a highly risky zone where it is difficult to decide which way it could go in near future. However, the long term trend of bullishness appears to be intact, the market may fall somewhat further from here or may face resistance till the end of October in crossing 17000 and sustaining above it.

Since the US markets closed with a positive bias on Friday we can expect our market to open positive but whether it will close with gains or not remains to be seen. Much depends on quarterly results of some companies. Though liquidity appears to have improved a lot there is no guarantee that money will remain in the market for longer period or fresh money will enter the market.

The strategy for current week should be of keeping away from the market until it crosses 17200 or falls below 16000. If it crosses 17200 then we can hope that it would go up to 18500 gradually. If it closes below 16000 then one can expect it to touch sub-14000 level. However, the market at present does not appear to have weakened to the extent that it can fall very sharply. It may rise sharply if it enters the 17000+ range again.

I reiterate that POWER sector is my preferred sector and it is going to give surprises in near future. In addition to RPOWER one can concentrate on buying Adani Power in small lots and accumulate it because it does not appear to go much down from here. It has strong support near 96.

MARKET TREND : OCTOBER 05 TO OCTOBER 09, 2009

The market appears to have some resistance at higher levels. After crossing 17000, as mentioned earlier, it has found resistance near 17200. The Global markets have closed on weak note on Friday(our market was closed on that day). Both Thursday and Friday were not encouraging for US markets.

It appears that our market may follow the global trend and may open with slightly nervous mood on Monday. If there is any negative move by other Asian markets then the market may open gap down.

The strategy should be that one should not sell in panic if market opens gap down but to remain patient till market stabilizes around some level. The market has strong support near 16750 from where it might jump back if at all it falls. The next support level is 16500. It has resistance level near 17600 and then near 17900. I believe that market may not gain or lose much at the end of the week. It may gain or lose by about 3 % on weekly basis.

If market falls sharply, keep an eye on good POWER and PHARMA stocks and add them to your portfolio.

MARKET TREND : SEPTEMBER 28 TO OCTOBER 02, 2009

As mentioned in my previous post the market experienced strong resistance near 16800 mark during the week that ended on Friday. It did smell 17000 but the fun did not last longer due to profit-booking.The market closed on Friday with some weekly loss at 16500+ level. It appears that the investors and traders are not willing to buy at higher levels though most of them believe that the market is still in bullish mood. Now 16800+ or more precisely 17000 has become a psychological barrier and unless market closes above that the trend will remain slightly disappointing.

We have a truncated week this time and market is likely to remain range-bound with some negative bias. Appreciating rupee may affect IT stocks negatively. IT as a sector, therefore, has lost some lustre. Pharma is picking up and it would be better to enter good stocks like RANBAXY, CIPLA ans DR REDDY. I strongly believe that POWER sector will take lead in future to maintain the bullish trend of the market.

Market has strong resistance near 16800 and then at 17200. Its support levels are 16200 and 15800. It appears that whichever way the market goes the rise or fall would not be sharp. KINGFISHER AIR has shown some strong gains during previous week. I recommend it as BUY around 55 with Stoploss of 47.50. Its first target is 66 and then 81.

MARKET TREND : SEPTEMBER 21 TO SEPTEMBER 25, 2009

The market slowly but strongly maintained its positive trend and has closed very close to the resistance level of 16750 during the previous week. It appears that there is some factor of fear still operating in the market which does not allow it to go up very rapidly or maintain its initial gains during a session. The improved liquidity in the market, positive advance-tax figures and encouraging global markets, all have contributed to recent gains but the gains are not as expected by traders and investors as we see selling pressure at higher levels.

The present week is going to be crucial and volatile due to F & O settlement. The CHINA FACTOR will have some negative effect on the market. By China- Factor I am referring to the mounting pressure on Indo-China border. This factor can suppress the recent upmove, though temporarily. If market takes this factor seriously then the fall will be sharp. One must be vigilant at higher levels because in any such circumstances the losses incurred could be very high. The long-term prospects of the market otherwise are very bright.

Our previous recommendations HT MEDIA, ORCHID CHEMICALS,DABUR and HCL TECH have registered gains as expected. One can hold ORCHID even at this level and wait for 200+ mark sooner or later. My PICK of the week will be RPOWER(Current 173, Target 207 Stoploss 160).

Market has support near 16200 and resistance near 17150.

MARKET TREND : SEPTEMBER 14 TO SEPTEMBER 18, 2009

The previous week was good for the market as far as SENSEX and NIFTY are concerned. After a long time market closed above 16000 on sensex and kept the hope of market continuing its upward move. The market has closed at a crucial level of around 16200 which uptil now had been a strong resistance level. It remains to be seen during present week whether market succeeds or not in maintaining its gains and closing well above 16200 at the end. Though the bullish trend appears to have strong say there is some degree of uncertainty in the minds of a class of investors and traders who prefer to start selling and booking profit once the market crosses 16200 level.

It is difficult to predict the market behaviour at this level and investors and traders must remain a bit cautious in going long in haste. If the market remains positive on the opening day, it will be a strong indicator of bullish move. If it fails to close in the green with sizeable gains, it may be assumed that market gets tired around 16200.

The market has support near 15800 and 15500. It will face resistance near 16750. If market closes above 16500 then the bullish trend will become strong and, as mentioned earlier, may go to as high a level as 18500 till January, 2010. I am both bullish and cautious. Any fall in the market may be treated as an opportunity to go long.

My picks of the week are :(i)CENTURY TEXTILES current price 484- target 536 - stoploss 448 and (ii)GEOMETRICSOFT current price 48- target 60 -stoploss 42

MARKET TREND : SEPTEMBER 07 TO SEPTEMBER 11, 2009

Contrary to the expectations of most of the investors and traders the market fell for first four days of the previous week and created and impression that it might close below 15000 but on Friday people had some respite as it went up by almost 300 points and closed above 15500 mark.

Market is experiencing a great deal of resistance near 16000 for more than a month. Every time it reaches that level we observe selling pressure and profit-booking. It is good that the market found its support near 15200 mark but what remains to be seen is whether the market overcomes the resistance near 16000.

US markets have closed positive on Friday and we can expect on that ground that our market will open with positive bias on Monday. One must, however, be cautious before going long. Unless it closes above 16000, I would prefer to stay away from buying. It is however not advisable to go short unless the market falls below 15200. According to my perception the present week is going to decide market trend at least for the period up to 2009-end. If market closes above 16200 then one can hope it to see 18000+ level within next 3-4 months but if it falls below 15000 then it might test 13800 first and 12500 if the situation worsens. The market has strong support near 13800. This may provide an opportunity to go long if market falls.

For present week the market has support levels of 15200 and 14750. It will face resistance near 15800 and 16200.

KEEP AN EYE ON "NTPC". It is a good buy at the level near 205 . First target 222 and then 243. Stoploss is 196.

MARKET TREND : AUGUST 31 TO SEPTEMBER 04, 2009

The market, as expected remained bullish throughout the previous week and closed very near to 16000 mark on Friday. Most of the intraday losses were recovered everyday showing good strength in market. Monsoon has resumed and created a hope that the effect would not be as bad as anticipated during first week of August. Global markets are strong except Shanghai.

It appears that the market will continue its upward move during this week and will cross 16000 on the opening day. What remains to be seen is whether the market succeeds in closing above 16200 during first two days or not. This 16000+ is very crucial and if market holds above it during this week then we will witness 16800+ mark very soon. If market fails to hold above 16000 then Friday closing will be the indicator of future moves. If market closes below 15800 then one has to wait before becoming aggressively bullish.

Market support lies near 15800 and then 15500. It has resistance near 16200 and 16500. However the trend is bullish and most likely market will remain above 16000 mark.

The pick of the week is GNFC at 95-96 level. Its first target is 108 and next target is 126. Stoploss is 86.

INDIA CEMENT is another good stock to buy at current level of 133 with first target of 152 and long term target of 171. Its stoploss is 122.

A reader asked me about SESA GOA in his comment to my previous post. Let me admit that I do not follow this stock continuously so it is difficult to comment upon it. I advise you, however to wait before going long in this stock at this level.

MARKET TREND : AUGUST 24 TO AUGUST 28, 2009

The market remained range-bound but highly volatile during the previous week. However, the undertone is greatly in favour of the BULLS and it appears that the market will discount monsoon worries in the days to come and will head towards 16000+ target for SENSEX. Global worries due to Shanghai phenomenon appear to have subsided and this factor may not affect the market henceforth.

Strategy for the current week must be of buying on dips and particularly of avoiding the temptation to go short at higher levels as the market is showing very good strength.

Market has support at 14800 and 14500 and will witness resistance near 15500 and 16200. Despite current bullish trend of the market it is very much difficult to predict whether it would be able to cross 16200 before showing strong correction. Equally much difficult it is to predict that the market will fall below 14200.

ORCHID CHEMICALS around 100 is a good buy and its long term target is 142. One can buy it with stop loss of 93.

There is some current in AFTEK INFO at 17 and it has potential to touch 24 in near future. Stop loss is 14.50

HFCL is another small-value stock around 12-12.50 which can cross 18 very quickly and in long run can touch 30 mark.

In one of my previous posts I had recommended IGL stating that it might surprise the market by crossing 200 mark in 2009. I reiterate my stand and suggest to buy it at 155-156.

MARKET TREND : AUGUST 17 TO AUGUST 21, 2009

The market witnessed one-day-up-and-one-day-down mix during the previous week. It however did not show panic on either side. It went below 14800 but managed to recover and rise above 15000 but failed to close above 15500 on the last day. Monsoon is still a big worry and perhaps the only negative factor that creates hesitation at levels above 15500. The market is facing strong resistance above 15500 and has good support near 14800. The fundamentals appear strong compared to what was feared some six or nine months ago.

It appears that the market may not witness much upside or downside during this week and may remain range bound. It is still not giving clear indications as to whether it has turned really bullish or it has some weakness still left before taking a truly bullish curve. However the undercurrent appears to favour the BULLS and it is safer to be on bullish side unless the market breaks 13800 level. Unless SENSEX crosses 16200 the market may not show strong bull run. I believe that once the market closes above 16200 it will head towards 18000 mark rapidly. MUCH DEPENDS ON MONSOON.

My picks of the week are:
ASHOK LEYLAND (current price 36.75 Target 42.50 Stoploss 33.50)
HCL TECH (268, 296, 255)
RPOWER (163, 180, 156)
DCM SHRIRAM CON (67, 84, 60)

The market has support near 14800 and 14200. It has resistance near 15500 and 16200.

MARKET VIEW : AUGUST 10 TO AUGUST 14, 2009

Market witnessed heavy selling pressure during last two days of the previous week much due to global weakness on Thursday and monsoon worries on Friday. After reaching 16000 mark on SENSEX we had profit booking in almost all sectors. The weakness may appear to drag market further down but at this stage it is very difficult to say that the market has weakened. There is still some strength based on liquidity and that keeps the hopes alive.

The opening day (Monday) will be crucial for this week and if market falls further then one has to think twice before going long. If market closes in the green (most likely to happen) then it may strengthen further in the days to come. SWINE FLU terror is an additional factor which may turn the sentiment negative if the spread of the disease catches new areas. The number of patients has risen alarmingly in last 48 hours and it has potential to worsen the situation further.

If on Monday the market closes below Friday's closing level then 'SELL' will be the better policy in coming days. If market closes in Green then revival is more likely and going long will be a wiser step. I am in favour of sectors like IT, POWER, METALS, INFRASTRUCTURE and AUTO. Watch IGL, TATA STEEL, WIPRO, TATA MOTORS, BHEL and buy on dips.

Market has support near 15200 and 14800. It has resistance near 15500 and 15800.

MARKET VIEW : AUGUST 3 TO AUGUST 7, 2009

Yet another week of gains for the market whereby the market touched its 2009 high on SENSEX. The global markets too performed well and it appears that the trend might continue for a near future and market may achieve new 2009 high during this month only. The bulls are in full control of the market at present and unless something extremely negative happens the market will digest all other negatives and continue to move ahead.

IT, Infrastructure, Banking, Power and Auto sector appear strong. The market has all potential to slowly but strongly reach 16500 in near future and 18500 in the long run. It will cross 16000 during this week and continue to march ahead. The best strategy is to hold your long positions and add to it as and when market falls temporarily. However trading with strict stoploss is the key to success.

The market has resistance levels of 16200-16500 and 16800. It has support near 15200 and 14800. I reiterate that in worst situation the market is not likely to fall below 13800 in near future.

I recommend to buy : RPOWER, IGL, SATYAM, TATA MOTORS, GMR INFRA, CENTURY TEXTILE, HT MEDIA, BHEL, SONATA SOFTWARE.

MARKET TREND : JULY 27 TO JULY 31, 2009

The market witnessed another good week for bulls. It has crossed 15200 mark quite easily during the week. Global markets too were strong indicating that during near term market is likely to remain bullish. Monsoon has accelerated in many parts of the country subsiding the fears of worst drought situation. Results of some companies are far better than expectations of the market. The mood is buoyant and strongly in favour of BULLS.

The week may start with positive note with market trying to touch and cross 16000 mark. On Thursday we have F & O settlement so market will be volatile initially and will then try to settle as Thursday comes closer. It would be wise to go long then to shortsell at this juncture. If bullish mood continues the August end target for market may be closer to 18000. Market has strong support near 13800 and is unlikely to witness that level during next month.

SENSEX may fluctuate between 14800 and 16300 during the week.

ASHOK LEYLAND (TARGET : 37.50), SATYAM (TARGET : 124) AND RPOWER (TARGET :184) are my PICKS of the week. Please trade with strict stoploss.

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MARKET TREND : JULY 20 TO JULY 24, 2009

The market surprised everybody by taking sudden U turn from its bearish move that started after the budget and made sizeable gains during the previous week. The more important aspect is that it has smoothly crossed the level of 14200 and has closed well above it on Friday indicating that it has strong support around 13800 and is unlikely to register sharp fall in near future. However, volatility is going to increase as we are closer to F & O settlement in the next week. The driving force during previous week was Global strength and to some extent hopefully not-too-bad monsoon prospects.

The market has strong potential to cross 15000 mark during this week. Sector-wise IT, Banks and Auto appear much better. Scrip-wise INFOSYS, TCS, BOB, ICICI BANK, DABUR, ASHOK LEYLAND, RNRL, IGL, NTPC, ONGC, TATA STEEL, RPOWER look strong.

My picks of the week are GUJARAT ALKALI around 100 for long term target of 144 and HTMEDIA around 96 for short term target of 122 and long term target of 150.

Market has resistance around 14800 and 15200. It has support around 14200 and then 13800(strong support).

MARKET TREND : JULY 13 TO JULY 17, 2009

The budget disappointed the market and as a result the market lost some ground during the week. It did struggle to stay above 13800 but ultimately closed around 13500 on Friday. Uneven and delayed monsoon too is a great factor of worry for the market.

It appears that market will still lose some further ground during this week. Since 13800 has been broken if market closes with sizeable loss on Monday then it would be sign of market becoming weak gradually. On weekly basis market is likely to register further loss.

SELL is the call of the week. Going long at this stage may put one in a fix for some time now. However, heavy selling in one stroke is not advised. Much depends on Global parameters and monsoon.

A few stocks that stand out include DABUR [recommended in previous posts at the level of about 115]. It is going strong and if it falls with the market, buy at each level with a long term target of 162. DCM SHRIRAM CON is another stock with great long-term potential. Its long term target is 84.

The market now has support near 13200 and then 12600. It has resistance at 13800 and then at 14200.

MARKET TREND : JULY 6 TO JULY 10, 2009

This is a crucial week for the market and may decide the future course of the market depending on what type of Budget is presented on July 6. It is difficult to guess with certainty but the trend of the market during previous week, particularly after the presentation of Rail Budget is more in bull's favour and if the budget is market-friendly then the trend will continue strongly for near future taking the market first to 16500 and then to 18400 in the long run. Contrary to this if budget fails to cater to what market expects then the first support for the market lies near 13800 and if it is broken then market may see levels of 12600 and even further down, 11800. If 11800 breaks then market may find a new bottom before being stable at low levels.

My advice is to keep away if you are a small trader or investor and see what happens after budget. If one wants to take risk then it is better to go long in scrips like : RPOWER, NTPC, DABUR, GNFC, GUJARAT ALKALI, GMR INFRA, ONGC, BHEL, CENTURY TEXTILE, BOMBAY RAYON, and RIL with a strict stoploss.

MARKET VIEW : JUNE 29 TO JULY 03, 2009

The market went below 14000 during previous week and then regained its lost ground to close once again with gain on weekly basis on Friday. The undercurrent is still strong but the most important factor that can drag market down is at present the MONSOON. It has delayed a bit longer and any further delay can be a great cause of concern. Water and power crisis in some major states and cities have started changing the equations. Though it is not too late but any further delay must be seen as a big negative for the economy and the market as well.

We will have Rail Budget this week. The market is likely to remain range bound till the Budget by FM on 6th July. Trading on any side is unpredictable due to upcoming budget and delayed monsoon. Government efforts are likely to suffer due to uneven monsoon. The strategy, therefore, should be to keep away from the market till 6th July. A wait-and-watch approach is better. Though the upside appears limited, the downward movement is also limited in present circumstances. If you are sitting on large cash you can take some risk when market falls by going long in certain frontline stocks.

Keep an eye on DABUR, IGL, GMR INFRA, RPOWER, RPL, HT MEDIA, NTPC, ONGC and TATA MOTORS.

The support for market is near 13800 and 13500. The resistance is near 14800 and 15200.

MARKET VIEW : JUNE 22 TO JUNE 26, 2009

After a long time the market closed with loss on weekly basis and a real correction happened. However there was no panic selling seen and this is a good sign. The market has corrected at right time. Though all is not well the Indian market has some positives over other markets and that is the reason why it has outperformed.

This week we have F & O settlement and then we have a major incident during the first week of July as the FM is going to present budget on July 6. During this time period the market is likely to remain range-bound though the first 3-4 days may see some volatility. It appears that the traders and some big operators may unwind their long positions to play safe. This may bring in some losses for market during this week.

Buy good scrips during the fall in the market with a risk that the budget may disappoint and there may be some loss. If so happens one must be ready to book loss immediately after the budget. The undercurrent is still strong and encouraging for bulls. I therefore advise not to SHORT-SELL in the falling market as it is much more dangerous than going long.

The market is likely to remain between 13800 and 15200 during the week with some negative bias. One should be extremely careful during next 15 days or so and should not trade heavily on either side.

MARKET VIEW : JUNE 15 TO JUNE 19, 2009

The market observed comparatively less turbulence during previous week. The SENSEX and NIFTY, however, closed with gains. It seems that the market is experiencing stiff resistance above 15300 and it may take some time before market overcomes this level and heads towards 16000 mark. The near term possibility of market falling sharply is ruled out but market may witness some correction in this week or the next week. This correction should be used to go long as the strength of the market is intact the potential for the market to fall below 13800 is nearly zero for near future.

RPOWER appears very strong at this level. It is a good BUY at 190 level as its first target is 207 and if it manages to cross it then the next target is 237.

IGL is going strong at about 140+ level. It may surprise the market during 2009 by crossing the level of 200.

DABUR is in consolidation phase around 114. Its near term target is 135.

The strategy during this week is that if market falls by 300-400 points, grab the opportunity to buy good stocks as it is unlikely that the market will keep on falling. It is supposed to swing between 14500 and 15750 during the week with positive bias.

MARKET THIS WEEK : JUNE 8 TO JUNE 12, 2009

The bulls appear to have upper hand and have strengthened further. The market closed above 15000 at the end of the previous week. It appears that the market is unlikely to give in during a week or two and we may witness more strength this week and in the week to come. The long-awaited correction does not occur except that market exhibits intra-day corrections. However, one must now practise caution because it has attained a level from where it may show sharp correction after gaining some ground initially during this week. Keep on booking profit at higher levels and during sharp correction re-enter the market. Some mid-cap and small-cap shares have shown smart gains and have outperformed the market. It is safer to keep a distance from some stocks in these categories and better to keep interest in large-cap frontline stocks.

NTPC, NEYVELI LIGNITE, RPOWER, IGL, DABUR, CENTURY TEXTILE, DISH TV, DCM SHRIRAM CON, TCS, look good.

The market has resistance near 15300 and then near 15750. It has support levels of 14800 and 14200.

MARKET THIS WEEK : JUNE 1 TO JUNE 5, 2009

The bullish trend continued during the previous week as expected. Whether we call it 'bear-market rally' or 'a really bullish turn around', the fact is that the market has displayed a strong upward trend and it is not reacting as expected by most of the analysts. The way it is going indicates that at present the market will discount all bad parameters and disclosure of any such factor, local or global, will have little effect on market trend at least for a couple of weeks from now. The market may not react sharply or if it does so due to any reason it is all likely to regain the lost ground within very short period and to continue its bull run.

Almost all sectors are performing well but I think sugar, power and metal stocks are more likely to outperform the market. As and when market reacts buy good scrips keeping a strict stoploss and keep profit margin predecided at about 20-25% and if you reach that level book profit for once because once the market crosses 15000 mark on SENSEX it is expected to react any moment.

The way market has behaved above 13800 level has created a strong expectation of market trying to reach 18500 level in the days to come. But one should not make 18500 a goal and be wise to exit at least partially from the market slowly above 16500 if market catches that level.

The trading range for market during this week is expected to be between 13800 and 15300.

MARKET VIEW : MAY 25 TO MAY 29, 2009

The market made historic gains on the very first day of the last week on the hopes that we have a more stable government at the center led by Dr. Manmohan Singh. During rest of the week market tried to settle around 14000 on SENSEX.

The government has partially been formed and more is yet to come but at present it appears that all is going well on that front and at least for short term we have nothing to worry as far as political situation is concerned. The budget is expected in mid-July.

In absence of other major factors the market is more likely to be driven positively with hopes of some budgetory declarations in favour of the market. Though, 'LEFT' has been left aside by the people, one factor of worry comes from the same state of West Bengal in the form of MAMTA BANERJEE who might pressurise the govt in a way not favourable to the market. Global turbulence tilting the market one way one day and the other way the next day will also play its role in restricting the market from making major gains in near future. However, the short term undertone is very strong in favour of bulls and market in no way will fall sharply.

We have settlement of F & O during this week. It will make market highly volatile. The best strategy now is BUY WHEN MARKET FALLS AND BOOK PROFIT WHEN IT JUMPS BACK. NO SHORTSELL PLEASE. The SENSEX is likely to remain in the range of 13200 to 14500 during this week.

MARKET VIEW : MAY 18 TO MAY 23, 2009

SINGH IS KING AND CONGRESS KI JAI HO GAI !!!

The elections are over and the results are out. Once again the people of India have exhibited that they are wise enough to decide WHO IS BETTER AS PRIME MINISTER AND WHICH PARTY HAS BETTER VISION. The results of 2009 elections have surprised all including the victorious Congress Party. Everybody foresaw a hung parliament but people ultimately chose the better option of stability at the Center.

Obviously, the market on Monday will react positively and will open up with huge gap. The shorts will rush to buy and those who were waiting on the sideline for election results will rush to go long in anticipation that the market will move further up in days to come. We may expect market to cross 13000 mark on sensex and 3900 mark on NIFTY in a couple of days.

The big question is how long can market go from here? Will election results prove a trigger for the market to turn really bullish? Is the bear phase over?

It is difficult at this stage to say where the market would head except that for this week we will witness smart gains by the market. To me, it appears that the market will try to cross 13800 mark where major resistance lies. This level will be hard to cross but if at all market crosses that level then we will have to change our view and accept that the bearish phase is over and in near future market will not witness sub-10000 level. Besides that the market can see levels as high as 18000 if it closes above 13800 level for a couple of days with positive bias.

I, however, caution that it would be unwise to jump in when market rises sharply. There are ample chances that at levels above 12800 some profit booking may occur. We may face heavy profit booking near 13800 level if market somehow manages to reach that mark. STRICT WARNING : SHORTSELLERS ARE VULNERABLE TO HEAVY LOSSES. DO NOT TRY SHORTSELL AT LEAST DURING THIS WEEK.