Market Outlook for 29.01.09

Headlines for the day
Corporate News Headline
Tata Steel reported Q3'09 results; total revenue decreased 3.9% yoy to Rs. 47.36 bn and net profit declined 56.4% yoy to Rs. 4.66 bn. (ET)
ONGC reported Q3'09 results; total revenue decreased 14.6% yoy to Rs. 136.57 bn and net profit declined 43.3% yoy to Rs. 24.75 bn. (BS)
Reliance Power has bagged its third 4,000 MW Ultra Mega Power Project, at Tilaiya, in Jharkhand. (ET)

Economic and Political Headline
The government has cut the prices of petrol by Rs. 5 a litre, diesel by Rs. 2 per litre, and the domestic LPG rate by Rs. 25 per cylinder effective from January 29, 2009. (BS)
The IMF has said that the global economy will slow down nearly to zero this year as more than USD 2 tn of bad assets in the US forcing the economies from Russia to the UK to sink. (Bloomberg)
The US House is preparing to approve President Barack Obama's proposed USD 816 bn economic stimulus package aimed at wresting the economy out of recession through a combination of tax cuts and USD 604 bn in spending. (Bloomberg)

Strong & Weak futures
This is list of 10 strong futures:
TV-18,Power Grid,Auro Pharma,Balram Chini,Polaris,Ultra Cemco,Cairn,Gt Offshore,NTPC & Renuka.
And this is list of 10 Weak Futures:
Satyam Comp,Aban,Divis Lab,PunjLloyd,EKC,Rolta,IVRCL Infra,DLF,Wel Guj & Gitanjali.
Nifty is in Up Trend.

NIFTY FUTURES (F & O)
Above 2848 & 2864 levels, rally may continue up to 2891-2893 zone by non-stop.
Support at 2826 & 2837 levels. Below these levels, expect profit booking up to 2797-2799 zone and thereafter slide may continue up to 2770-2772 zone by non-stop.
Below 2726-2728 zone, expect panic up to 2699-2701 zone and buying can be done at around this zone. Stop Loss at 2628-2630 zone.
On Positive Side, above 2917-2919 zone it can zoom up to 2935-2937 zone and if crosses & sustains at above this zone then uptrend may continue.

Short-Term Investors:
Bearish Trend. 3 closes below 3144 level, it can tumble up to 2312 level by non-stop.

BSE SENSEX
Traders can expect rally further.

Short-Term Investors:
Short-Term trend is Bullish and target at around 9910 level on upper side.
On Negative Side, corrections up to 8951 level can be used to buy. Maintain a Stop Loss at 8632 level for your long positions too.

Trading Calls 29th Jan 2009

USE STRICT Stop Loss for todays trading

Buy BHEL-1398 for 1428-1440 with sl 1380 [Trading]

Buy TITAN-945 for 990 with sl 930

Short BPCL-378 for 362 with sl 383

Buy ACC-497 for 520 with sl 492 [Breakout]

+ve to Market : 1. US Market 2. SGX nifty 3. Satyam Issue 4. Reduction expected petrol/diesel price 5. Expected RBI rate cuts in coming days 6. Expected Inflation below 5%

-ve to Market : 1. Continous selling by FII 2. DII selling 3. Expected slowdown/Q3Results 4. Rs.Vs$ 5. Sentiment 6. There is no delivery based buying by investors 7. Asian Market (Mixed) 8. RBI's projection on GDP 9. Global meltdown in employment 10. Cost cutting measures in various sectors through exmployment 11. Steel major take a hit in Q3.

GLOBAL CUES & RUPEE The Dow Jones Industrial Average closed at 8,375.45. Up by 200.72 points.
The Broader S&P 500 closed at 874.09. Up by 28.38 points.
The Nasdaq Composite Index closed at 1,558.34. Up by 53.44 points.
The partially convertible rupee <INR=IN> closed at 48.93/94 per dollar on yesterday, stronger than Tuesday's close of 48.94/95.
SENSEX Stocks May Zoom

NIFTY & SENSEX SPOT LEVELS FOR TODAY

	2849.50	( 2.82 %)	78.15
		1	2	3
Resistance		2881.40	2913.30	2971.20
Support		2791.60	2733.70	2701.80

	9257.47		( 2.81 %)	253.39
			1	2	3
Resistance			9334.21	9410.96	9551.16
Support			9117.26	8977.06	8900.31

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	28-Jan-2009	1539.53	1756.85	-217.32

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	28-Jan-2009	1259.91	658.03	601.88

--
Arvind Parekh
+ 91 98432 32381