Add more positions in REC; target upgraded to 442

Investors holding REC can buy more into it around 375 levels. REC has finished its flag formation and broken out of it. Its next target can be 442.

Book your profits in Grasim

Book your profits in Grasim by selling it around 2200. Grasim has broken down from its uptrend channel, also the stock is trading below its 200 DMA - which shows weakness. Book your profits!

Buy Ashok Leyland for a target of 90

Ashok Leyland has been in an uptrend since June 2010. Recently it consolidted, made a flag pattern, and broke out of it; thus giving an opportunity to buy. Fresh invesors can buy here and those already invested can add more positions. It can be bought at the levels of 76 for a target of 90. 

Buy L&T for a target of 2200

L&T is in an uptrend channel and has recently consolidated and formed a flag pattern. It has broken out of the flag pattern, and can be bought at the level of 2015 for a target of 2200. 

Add more positions in Bata India; next target is 384

Bata india has broken out of its 3 week flag pattern. Bata India is in a long termuptrend and it can be further bought at the levels of 336 for a target of 384.

Buy Bajaj Auto with a target of 1677

Bajaj Auto can be bought around 1539; it has made a falling wedge consolidation and has broken out of it. The break out is on the news of good quaterly results. Technically its target can be 1677. 

SUBSCRIBE TO COAL INDIA IPO

Coal India IPO is very attractive at the price being offered. One can subscribe to it at the upper band of 245. On listing it can touch 300.

The company has got very strong fundamentals; and is the largest coal producer in the world.

Susbcription to the IPO is highly recommended.

Book profits in Kotak Bank

Kotak Bank had a great run since August. Its now entered into a trading range. One can book your profits around these levels of 500.

Book profits in ITC

ITC is looking weak now. Its been in a trading range. 20th Sept, and today it has also broken down from the support levels. Book your profits!

Book profits in Gujarat Mineral (GMDC)

GMDC had broken out of its trading channel and developed an uptrend, but now its again showing weakness as its broken down from its uptrend channel. Book your profits!

Book profits in Cummins India

Book your profits in Cummins India. Its been in a trading range since end of August. Also its broken down from its uptrend-line which shows weakness in the stock.

Book profits in ACC

Book profits in ACC. ACC has broken down from its uptrendline and also broken the support level of 990.

Sell Dabur India

Sell Dabur India around 102 - close to your purchase price. The stock has failed to show any increase in past 2 months. Now it is looking weak on the charts as its has (1) broken down from the uptrend channel (2) Its fallen below its 50 DMA.

Sell RCF and any Fertilizer stocks

Fertilizer stocks have rallied in the past 2-3 days. This rally in the fertilizer stocks doesn't look sustainable. One can use this rally to get out of RCF or any other fertilizer stock.

Buy Reliance Industries for a target of 1084/1100

Finally the BIG BOSS Reliance Industries has started moving! A formation of upward channel is seen in Sept/Oct. It has also moved above its 200 DMA - which shows it is entering a bullish phase.
It can be bought around the levels of 1070 for immediate target of 1100.

Buy HDFC for a target of 800

HDFC can be bought at the current levels of 730 for an immediate target of 800. The stock is in a long term uptrend, it has just finished its consolidation and broken out of the flag pattern.

Buy JB Chemical and Pharmaceuticals for a target of 140

JB Chemical and Pharmaceuticals is in a long term uptrend, recently it has consolidated and resumed its uptrend, it can be bought at the levels of 120 for next target can be 140.
It has been learnt that even Rakesh Jhunjhunwala has a stake in the pharma company! :-)

Where do we go from here?

NIFTY has closed at 6090 today. Some support exists at 6070 levels, and a very strong support at 6040 level. As long as NIFTY consolidates here and these levels hold up there is nothing much  to worry. If these levels are broken then a big sell-off can be seen in the markets.

Book profits in TTK Prestige

TTK Prestige has achieved its target of 1140 and is now trading around 1216. You can book your profits here.

Book profits in Engineers India

Book profits in Engineers India around 349 levels. Its has broken down from the ascending triangle and looks weak now. It has failed to break out of the trading range in which its stuck since June 2010.

Add more positions in Tata Chemicals

Investors already invested in Tata Chemicals and buy more stocks around 420 levels. Tata Chemicals has just completed its flag pattern and has continued its uptrend. Its next target can be 450.

Make fresh entry into Dena Bank

Dena Bank has consolidated and broken out of the flag pattern. Fresh entry can be made into it around 115, for next target of 130.

Get out of Jindal Steel and Power

Jindal Steel and Power is another stock which has been a non-performer. It is in a range since a year. Currently its moved at the upper end of the range around 750. One can sell it at cost price and get out of it.

Get out of Areva T&D

Areva T&D has been in a range since Nov 2009. Right now its trading at top end of the range (Rs 315). Not much upside is seen from here. One can get out of it at cost and protect their capital.

Make fresh entry into GIC Housing Finance

GIC Housing Finance has broken out of its range and resistance level of 150. It can be bought at these levels for a target of 170.

Fresh entry can be made in Rallis India

Rallis India has finished its flag formation by touching the support at 50 day moving average. It has broken out of its flag formation. It can be bought for a target of 1680.

Add more positions in Corporation Bank

Investors who are invested in Corporation Bank and buy more stocks. It is in an uptrend and has just broken out of the pendant formation. Its next immediate target can be 750.

Book profits in ICICI Bank

Investors can book profit in ICICI Bank around 1100. The stock has run up a lot and is consolidating at these levels. On the weekly charts its giving a negative close.
Fresh entry will be advised once another upmove starts in the stock.

Buy Federal Bank for a target of 420

Federal Bank has just finished its consolidation phase and broken out of the flag pattern. It has resumed its uptrend and it can be bought at the current level of 387 for the first target of 420.

PNB target revised to 1350

Investors holing  PNB can continue to hold it. Its target has been upped to 1350.

Buy Karur Vysya Bank

 Karur Vysya Bank is making life time highs. Recently it has consolidated and formed a flag pattern. Today it broke out of the flag pattern and it can be bought around the levels of 560. Its immediate target can be 640.

Hold Maruti for a target of 1600-1650

Those holding Maruti can continue to hold it. It has broken out of the resistance level of 1450 and its next target can be 1600 - 1650.

Add more postions in Gujarat Gas

Investors holding Gujarat Gas can buy more shares of it at these levels of 401. Gujarat Gas has finished its consolidation and has broken out of the flag formation and is ready to move upwards. Its up-trend is still intact.

Get out of NMDC at cost.

Protect your capital by selling NMDC around 269.  The stock has been in a range of 240-275 since May 2010 and refuses to move up. Also the latest Mining bill is not favourable for the companies. The bill states that the miners have to share 26% of the profits with the locals. Mining companies can underperform for a while.

From where is this money coming into the Indian stock markets?

Both Europe and US to come out of the crisis have printed excess money and flushed all the liquidity into the system. The average growth rate in US is mere 1.5%. In such a scenario it just doesn't make any sense to invest all that money into their country. Thus the Financial Institutions, stock broking houses, Mutual fund industries overseas  want a place where the growth is robust and sutainable.
Two countries - India and China where a 8% GDP growth sustainable year on year is attracting all the excess liquidity being printed overseas... thus taking our markets higher and higher. 

What has made the markets touch 20000 on Sensex and 6000 on NIFTY?

It is influx of liquidity which is driving this market towrads its previous highs, and making it eligible to make new highs.
The FIIs have pumped in $3.4 billion in the month of September alone; and over $11 billion in 2010.

Sell Jindal Saw at cost.

Get out of Jindal Saw. The stock is stuck in a range even in the bull market. Its upside is capped at 218. Protct your capital by selling it at cost.

NIFTY AT 6000. Where do we head now?

NIFTY has touched and closed above the psychological mark of 6000. The actual resistance level lies at 6050. Once it reaches here some selling pressure or retracement can be seen. For NIFTY to move further up to 6200  it has to hold this 6050 mark.

Why have markets rallied so much? And what should you do now?

The markets have run up a lot in past 2 weeks. Its been rising daily since last 7 trading sessions. The FIIs have pumped in Rs. 8000 crores in Sept 2010 only.
No buying was suggested in last 1 week and  is not suggested now also. Just sit back and see your portfolio grow!

Greaves Cotton target revised to 440.

Greaves Cotton has achieved its target of 404/-.
Those who bought Greaves Cotton at 342/- in June and still holding it, can wait for the next target of 440/-.

ITC target revised to 173

For all those who bought ITC in July, the new targets have been revised to 173.

PNB target revised to 1300

Those still holding PNB can continue to hold it. Its target has been revised to 1300.

Buy Jain irrigation for a target of 1400

Jain irrigation has been in a consolidation phase for a month. It has now broken out of it now, and can be bought at the leels of 1250, for an immidiate target of 1400.

Get out of Oil Country Tubular

Oil Country Tubular has been in a trading range since Feb 2010. Currently its trading around the upper band of the range which is around 120. Its hitting this upper band for the 4th time. One can sell the stocks at cost and get out of it.

Make fresh entry into Gujarat Flurochemicals

Make fresh entry into Gujarat Flurochemicals at the levels of 219, for an immidiate target of 240. The stock started its uptrend in July and made a flag pattern, and a breakout of the flag on 6th Sept.

Sell Piramal Healthcare and PSL

Get out of Piramal Healthcare and PSL at purchase price. These stocks have failed to perform.

Make fresh entry in Corporation Bank

Corporation Bank has been in a long term uptrend. Recently it has been in a consolidation phase since 10 days and has made a bullish flag pattern. Its broken out of this flag pattern with high volumes. It can be bought at these levels of 612 with an initial target of 697.

Make fresh entry in Divis Labs

Divis labs has broken out of its month long consolidation phase. On the weekly charts its giving a positive close after 3 weeks. On daily price charts its just moved above the 50 day SMA.
It can be bought at the current level of 760 with an initial price targets can be 840.

Add positions in Grasim Industries

Further positions can be added in Grasim Industries. The stock has made a bullish flag pattern - which confirms the uptrend in the stock. More positions can be added at 2100 levels for future targets of 2300 and 2500.

Add position in Engineers India

Further positions can be built in Engineers India. The stock has broken out of its wedge pattern after consolidation phase. It can be added to your portfolio at current levels of 330 for a next target can be 398.