It was mentioned in the previous posting that it would be healthy for the market if it can touch level 15000 as the second level if it breaks 15300 which was the first support level mentioned. Swine Flu panic griped the market and we touched intra day low of 14701 and closed at 15020 respecting the MFF levels and then there was buying which took the market much higher.
Friday was a breather after the run we saw on Thursday, and the negative close of Dow and Nasdaq will surely influence Asian and Indian markets on Monday. Though we may open down the support level of 15000 should hold failing which the next support would come at around 14550. The corresponding support for Nifty level would be at 4375 – 4250. The resistance and targets for Sensex remains as mentioned in the previous posting i.e. 16700 – 17000 and for Nifty at 5100 – 5200.
MFF is bullish on the markets with medium term perspective and would advise to buy if we test 15000 again. There is lot of speculation in Sugar stocks and caution is advised to people putting their money in these stocks as Investments! The Sugar sector is pure trading area right now and one should be quick to enter and exit.
The market move of 400 points on Thursday, unveiled by the government was attributed to the NEW DIRECT TAX CODE by the Media and the self certified analysts on television. MFF cautions investors on such gross lying. There is nothing except the removal of STT in the new law which should excite the markets to the tune of 400+ points. Moreover even if it has to become a law it would happen only on 1/4/2011 making a pure case of gross miss preaching by these people. The said code is a great disappointment in MFF’s view.
We recommend investors can have a look at Micro Technologies Limited at cmp of around 125 (may get it lower if market opens lower on Monday). The fundamentals and the valuations of the stock look attractive to us and people with long term horizon can enter the stock aswell at the said levels. We continue holding Bartronics and infact have added further at lower levels.
Stock Specific Disclosure: I hold MICROTEC in my personal account & in accounts of various clients.
Disclaimer: Investing in Equity & other Similar markets can be risky. The recommendations and views mentioned are based on certain expectation’s which may or may not occur. The author thereby, will not be Liable for any loss incurred, monetary or otherwise. Seeking personal advice from your Financial Planner is recommended before acting on any of the substance given herein.
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