to 54646 Contact Person: Sagar Karvat - 077383 80033, e-mail

Market participants are
advised to remain cautious
in the coming fortnight.
In the previous fortnight, the Reserve Bank of India
(RBI) hiked interest rates to control the menace of
inflation, which has been on a steep rise since the
past few months.
The central bank, in its third quarter Monetary Policy
Review, raised its key policy rates by 25 basis points. The
repo rate was hiked to 6.5% and the reverse repo rate to
5.5%, in line with market expectations. But indications of
further rate tightening and other concerns caused a fall in
the markets.
The quarterly results of most companies announced so
far, have met market expectations. But how far the
companies will manage to sustain themselves in the
backdrop of rising commodity prices and higher interest
rates, which could affect margins in the coming quarter,
needs to be seen.
Market participants are advised to remain cautious.
However, they can look at buying around the support
level of 5,420 on the Nifty. If it breaks this level, investors
are advised to avoid fresh buying. On the upper side,
the Nifty has resistance at the 5,750 and 5,900 levels.
Stocks like Orchid Chemicals & Pharmaceuticals Ltd
(LTP: `294), Panacea Biotec Ltd (LTP: `195.20), Gujarat
Beyond Market 04th Feb ’11
State Fertilizers & Chemicals Ltd (LTP: `338.35), Praj
Industries Ltd (LTP: `74.70) and IFB Industries Ltd
(LTP: `113.50) have declared positive results for the
December quarter. These stocks, therefore, can be bought
at the current prices as well as on declines from an investment
perspective.
There is a fear that the ongoing crisis in Egypt may
spread to other Middle East regions, leading to a rise in
crude oil prices, thus negatively impacting India. Other
geopolitical tensions could also upset the markets.
But, internal problems pose a bigger threat to the
economy and markets at large, instead of the prevailing
global issueS.
Sensex: 18,327.76
Nifty: 5,505.90
(As on 31st Jan ’11)
Disclaimer
It is safe to assume that my clients and I may have an investment interest in
the stocks/sectors discussed. Investors are required to take an independent
decision before investing. Investment in equity is subject to market risk. Our
research should not be considered as an advertisement or advice, professional
or otherwise. The investor is requested to take into consideration all the risk
factors including their financial condition, suitability to risk return profile and
the like and take professional advice before investing.
It’s simplified...
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