TSR NIFTY UPDATES- Week beginning 05.01.09 -Visit
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Dear Friends,

   - A majority of the analysts in the recently concluded Cnbc Tv18 Poll
   believed that an immediate market bottom is in place and in 2009 we are
   unlikely to break 2253. I believe one can trust the outcome of the poll.
   Wait a minute; before one becomes overtly bullish we closed yesterday 35.25%
   above October27th lows· I have always maintained that bear market teaches
   discipline and timing. A good trader is always tested in a bear run as
   compared to a Bull move. Below is the excerpt from one of my posts on
   Niftyviews for week starting 27.10.08.


   - " For nifty I still maintain that 25XX for me is a Bottom in Nifty.
   Technically we might break the same on Monday. But I will try and start
   deploying my remaining cash now as the next big trend to play out will be on
   upside. Kindly be cautious, as I might be terribly wrong. I don't like
   averaging portfolio or stocks. If I add some stocks it will be only because
   I like the story over a period of time. I wont buy any of the downtrodden
   stocks like Unitech, Dlf or Parasvanth, the primary reason being that I am
   still negative on them. The only reason why I will start buying now is
   because the smart money is now moving in and not moving out. I might be
   wrong here but I am sure I wont be terribly wrong here." Source
   
http://niftyviews.blogspot.com/2008/10/tsr-nifty-updates-week-begining-271008.html


   - As of now I am in the camp, which believes that the bottom for 2009 is
   in place. I have my own reasons that the bottom wont be broken unless we see
   worse macro economic situation for a continued time horizon going forward. I
   have mentioned it a number of times before that, I was surprised by the
   intensity of the fall below 3500.We made a bottom of 2253 much below anyone
   sane had anticipated. At the same time Nifty is now hovering at 3046 levels.
   There are reasons why I believe that the conditions that lead to the fall
   have improved. There is a belief that the worst of Sub prime crisis is
   behind us. In India the liquidity problem has improved dramatically. With
   liquidity I mean the MIBOR has eased considerably from 20% points to 5%
   yesterday.


   - I wont be positional short in this market unless the pivots are broken.
   I will be truthful with my analysis; Nifty has not behaved like a classical
   bear market from 2505 to 3111 odd levels. The answer to the question might
   lie in the fact that this was the worst bear market in recent decades. So
   why should one have a problem if the rally is not a classical bear market
   rally. When one under performs in downside, It can obviously outperform in
   Upside.


   - Companies have a precarious habit. Some of them always need capital to
   grow, as there internal resources are insufficient to meet the scale of
   their business. Most of these companies have been butchered in the recent
   mayhem. I have noticed something peculiar, which I ought to share. Etc
   Networks and Titan industry have recently raised funds via private placement
   of debentures. I believe this might be one of the major sources of funding
   to many more companies in future. It might be one of the major reasons for
   the credit crunch to ease.


   - I am not sure where we are heading as of now. As always two schools of
   thoughts emerge. One suggests a range bound trading in the broad 2910-3250
   zone. The other suggests an upward breakout of the converging triangle with
   a target above 3500. I am not Bullish on Nifty till Unitech, Suzlon and
   Reliance power is a component in Nifty. At the same time one needs to have a
   cautious stand going forward.


   - There is too much hue and cry being made for the small cap rally. Even
   Murphy will agree, with a 90%+ erosion from all time Highs in a year. Small
   cap rally was always due. I was never a fan of penny chaps and I wont ever
   be one.There is immense value in some Midcap/Largecap stocks even at cmp.
   But then I have always looked beyond the large cap stocks to invest in where
   the companies are like perpetual bonds growing year after year.


   - I had shared one investment idea recently on Gillander Arbuthnot and
   company. I like the 191 years old Kolkata based company as it is just like a
   Sovereign Government Bond with a High dividend yield and an added
   appreciation clause. The company was listed in Kolkata stock exchange and
   got listed in March 2006 in BSE. It is a part of Gd kothari (Nephew of G.D
   Birla.)Group and has four basic business segments namely:- Tea, rental
   income of Gillander House, Textiles and engineering division. One can get
   more details at
http://brokersreports.blogspot.com/2009/01/gillander-arbuthnot-and-company-report.html
   . Do note I have investments in the equity of the company that are long
   term in nature.


   - Coming to Nifty we have closed above 20dma and 50dma post September
   09,2008.We need a three day closing above the same levels to see next round
   of short covering. I believe midcaps/largecaps and not small caps might lead
   the next round of rally, if any. Above 3161-3241 next cluster of resistance
   is at 3551 odd zones. One more factor worth watching out is the IIP numbers
   along with the results season. Have a great trading week.


   - TSR is increasing service charges of Cash segment from 6th January
   2008.All subscriptions made prior to 6th January will be at old rates.


Nifty support-2912,3020 ( BELOW 3020 WILL TAKE SMALL SHORTS WITH SL AT 3055)

Nifty resistance-3113( old resistance zone),3245


*WEEKLY CALLS UPDATES:**

Short term conviction buy ( Holding period two months.)

Buy kotak bank 50% at cmp rest at 310 target 410-465. sl at 259.BOOKED AT
370

**SHORT BIOCON AT 118-120 (FUTS CLOSING PRICE-118.85) TGT - 115-110 SL -
123.50 Rank three trade TARGETS HIT

SHORT HPCL BELOW 265 (FUTS CLOSING PRICE-272.50) TGT - 258-251 SL - 272 NOT
ACTIVATED.


SHORT IRBINFRA AT 130-131 (FUTS CLOSING PRICE-130.95) TGT - 124-121 SL -
135.20 SL TAKEN

**WEEKLY CALLS :*

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