Newsletter dated 7th May, 2009

GLOBAL MARKET

U.S. stocks rose on Wednesday after a private-sector reading on the labor market signaled unemployment may be receding and leaked bank Stress test results suggested most banks are healthier than previously thought.The number of U.S. private sector job losses in April touched the lowest level since November, according to a report by ADP Employer Services, the latest data suggesting the worst of the recession may have passed.

The government is due to release stress test results today. Several reports on the capital needs for 10 of the 19 banks under the government's microscope have revealed how well the industry will cope with perhaps the most severe recession since World War Two.

The Dow Jones industrial average .DJI rose 101.63 points, or 1.21 percent, to 8,512.28. The Standard & Poor's 500 Index .SPX climbed 15.73 points, or 1.74 percent, to 919.53. The Nasdaq Composite Index added 4.98 points, or 0.28 percent, to 1,759.10. Since hitting a closing low in early March, the S&P 500 has surged 36 percent, driven by optimism about the financial system's condition and hopes the recession may be waning.

Asian markets following American cues, are up handsomely. Nikkei leads the show with with 360points gains and Hangseng following it with 172points gain as of now. All other major indices are trading up between 0.5-1.5%. Nifty likely to open gap up, probably near to 25-30 points gain.

NIFTY

Yesterday Nifty cracked almost 100 points from its intraday of 3717 before closing at 3625. It was sharp profit taking, mainly lead by Index stocks. Today it might open around 3670 levels. One may initiate shorts at opening bell keeping SL at its yesterday's high of 3717 (spot). Target could be 3708 and 3692. Nifty is still trading much higher from its 9DMA if 3500. So the under current is still bullish. Some technical correction and consolidation is good for the market.

BHARTI AIRTEL

It has strong support levels of 752, 744 and 738. One may initiate long at lower levels maintaining SL at 738. Target could be 770 and above.

DLF

It has strong support zone of 235-238. One may initiate long near 242-243 maintaining SL below 235. Target could be 252 and above. It is bit risky trade to execute.

HDFC LTD

IT COULD BE TODAY'S DARK HORSE. IT HAS STRONG SUPPORT AROUND 1694-1708. ONE MAY INITIATE LONG AT LOWER LEVELS KEEPING SL BELOW 1694. TARGET COULD BE 1784 AND 1808. TODAY IT WOULD GIVE HUGE INTRADAY MOVEMENT. GOOD TRADING OPPORTUNITY FOR JOBBERS.

HAVELLS

After opening gap up it would correct. Short at opening bell if it opens around 234-236. SL as per your risk appetite. Target 218 and 210.

TULIP TELECOM

It would also open gap after before a dip set in. Short at opening bell if it opens around 630-635. SL as per your appetite. Target could be 592 and 580.

Note: The above mentioned strategy is just an indication. Do your own homework before initiating any trades based on above information. The online calls are given to our paid clients only via messenger and sms.

Anurag Dujari
Mobile: 92308-92309
E-Mail- anurag130@gmail.com
Yahoo Messenger ID - trading_picks

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