Morning Bells (10 Sept 12) -

Good Morning Friends,

So now we are entering to new week which is full of thrill and volatility on both domestic as well as on global (EU) front. On Friday we cheered the ECB effect. Indian stocks rallied after ECB President Mario Draghi followed up on his promise to protect the euro and outlined a large bond-buying plan.

This week markets are likely to witness volatile trading in the coming week in view of industrial output and inflation data that are lined up this week while EU has lot of events including Dutch election.

There’re media reports about price hike in petrol, diesel, cooking gas and kerosene prices simultaneously in the coming week while Union Oil Minister Jaipal Reddy denied it on Sat. in New Delhi saying "There is no immediate proposal to increase the fuel prices including that of petrol"

Although we have cheered the global sentiment but now investors are taking cautious approach due to slowdown in economic growth. Experts are expecting inflation remains above the comfort level of the Govt. as well as the RBI, so there’s high chances for interest rates high. The new data will provide key inputs for a decision on interest rates coming ahead of RBI's monetary policy review.

So right now there is nothing much to say as its action packed week and market can take any direction according to various events lined up this week.

MARKET OUTLOOK -

So my sense says that - Macroeconomic concerns may prompt investors to book profits at higher levels after a smart rally in the market amid growing concerns about Govt's ability to push through key reforms.

Market seems range bound on upside ahead of Industrial output data on Tuesday.

So cautious approach is suggested and book part profit on rallies to safe your investment.

NIFTY –

Now data shows Nifty range 5280-5400.  If Nifty continue its upward journey it will face resistance at 5365 - 5400 - 5450 while on downside if Nifty goes below 5335 then selling pressure can drag Nifty to 5300 - 5280 - 5250.

On upside 5400 & 5600 has highest OI of approx 67 lacs share with addition of 10 lac shares in 5400 call. Huge shorts got covered on Friday specially 4900 Put for which I had informed you on Friday.

Trend remains buy on dips till 5335 is safe.

STOCK OUTLOOK -

Banks – Banks remain in news this week ahead of RBI policy review, Govt.’s action and festive session.

TM- As per current data TM seems in the range of 220-250 and forming a narrow range for week which seems 240-250. Now TM first will try to break 246 and then will attempt its 250-255 range (previous 2 attempt failed) so would be interesting to see how operators play this time. Would suggest keep SL 246 once it crossed it and reach to attempt 250, above 252,  249 will be good SL. I am not setting up any big TG as I am curious to know how operators playing this time.

OPEN CALLS –

Apollo Tyre – (bought @94 and @92) hold stock for updated TG 98+ with SL 86.

Cox&Kings (TG 148, SL 121) its below its good support 129, will wait for mkt and then will think to average our buying levels.

FDC (Bought at 88) hold for TG 94+, SL 78

Bank of India (bought 358) TG 375+ SL 352

Today’s MG Mantra –

Enjoy the ride but DON’T GET EXCITED TOO MUCH, IT HAS GIVEN RELIEF SIGH TO INVESTORS BUT NOT SIGHT TO BET BLINDLY. NO HARM IN PROFIT BOOKING AT GOOD LEVELS AND ENTER AGAIN AT LOWER LEVELS.

Have a Profitable day – MG

Disclaimer – I have shared my view as per my limited knowledge; please use your own skills before making a wise decision.