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Dear Friends,
As mentioned last week in the weekly note I would restrict the TSR weekly mailer to technical levels and important events for the week ahead. Moreover I will analyze technical levels for certain stocks for short term at http://stockrumours.blogspot.com/ The above mentioned blog will also be updated daily with technical levels for intraday. In case you need our entire analysis you can join the TSR delivery calls. Coming to the markets week on week Nifty closed 8 points down in the truncated week. I personally believe that the next fortnight will be crucial for the markets. Historically the month of May has been a volatile month in the Indian context. At the same time traders should note that the markets would react to a fractured verdict from the general elections. Two possibilities are probable in the above context. The former there is a stable coalition government at the center and the latter being an unstable Non progressive Government which includes the Left. Markets are believed to have a memory, which is in short term in nature. On April 23rd Nifty traded at a level of 1912. In response to NDA’s defeat and speeches by Left oriented leaders Nifty made a low of 1292 on the day when the verdict was out. Incidentally in 2009 the verdict will be out on 16th of May. It is to be seen how the markets react to the Indian political verdict.
I will advise traders to be trading with fewer positions for the month of May. One more advice will be to rigorously follow sl and target levels. Traders should also note that just before the elections one should book profits in media companies along with AUTO companies. After the election outcome the focus of the market will shift back to the economic scenario. Our current Prime Minister Dr. Manmohan Singh has promised to bring back the economy on its growth path back in hundred days. I believe the above statement should be quoted as a political statement. At present what we need is a policy that is similar to Kennedy series of tax cuts. It should have multiplier effects with limited leakages in the form of imports. At the same time the policy should be outward looking in nature.
WEEKLY SUPPORTS :3290,3397
WEEKLY RESISTANCE :3541,3594
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HAVE A GREAT TRADING DAY
VINAYAK
TEAM STOCKRESEARCHERS
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