Nifty around 5400

The Nifty started the session on a positive note but the consolidation continued for second consecutive day after a sharp cut seen in previous week. The index was hovering around the 5400 level. Asian markets too were quiet in trade.

Among frontliners, GAIL, BPCL, Ranbaxy Labs, M&M, Dr Reddy's Labs, BHEL, Suzlon, Power Grid, NTPC, Reliance Capital, Reliance Infrastructure and HDFC were witnessing buying interest.

However, the selling in L&T, ONGC, Sun Pharma, ITC, Reliance Industries and HCL Technologies erased some early trade gains.

At 9:17 hours IST, the 50-share NSE Nifty gained 9 points at 5,405 and the 30-share BSE Sensex rose 25 points to 18,062.

About 400 shares advanced as against 300 shares declined. The broader indices were flat with a positive bias.

Midcap & Smallcap space:

Punj Lloyd tanked 5% and Lanco Infratech was down 2% post disappointing quarterly numbers.

Bajaj Hindusthan wsa up 2.4% as there was a slight dip in bottomline but revenues were good.

Jubilant Foodworks was up 1% and Polaris up 0.4%.

Sun TV gained 4% after a fall of 11% yesterday. SpiceJet was up 2%.

ITI rallied 3% as its chairman expects Rs 2500 crore order from BSNL, MTNL soon.

Zee Entertainment rose 3% as the company will consider share buyback on Friday.

IOC was up 2% on fall in crude prices to USD 87.5/barrel.

However, Chambal Fertilisers, Nagarjuna Fertiliser and RCF fell 1% each.

Allied Digital tanked another 6%.

India Infoline was down 2% and Voltas down 1%.

Global cues:

Asian markets were quiet in trade.

The Dow Jones and S&P 500 hit another 2-1/2 year high led by banking pack backed by positive cues from Europe on Monday.

The Dow Jones Industrial Average ended up 70 points at 12,162. The Nasdaq Composite was up 15 points at 2,784 and S&P 500 index went up 8 points at 1,319.

Commodities

March natural gas fell 4.5% at USD 4.11 per MMBtu, lowest levels since late December

March crude oil was down 1.7% at USD 87.48/barrel, lowest level in over a week

April gold prices were flat at USD 1348.20 per ounce

March silver was up 1.4% at USD 29.35 per ounce

Cotton gained 4.3%

F&O cues:

Total Nifty futures up Rs 514 crore, Options up Rs 2116 crore

Stock futures net add 2.6 cr shares in Open Int

Nifty Fut Open Int shed 1.5 lakh shares in Open Int; Nifty futures discount at 2 pts versus discount of 9 pts

Nifty Open Int PCR up at 1.15 versus 1.12

Nifty Put add 29.3 lakh shares, Call add 7 lakh shares in Open Int

Highest Open Int outstanding at 5400 Put, 5500 call, 5700 call

Nifty 5100 Put adds 14 lakh shares (45%) in Open Int; prem down from 29 to 23

Nifty 5300 Put add 9 lakh shares (18%) in Open Int, prem down from 71 to 66

Nifty 5700 Call add 3.9 lakh shares (6%) in Open Int, prem down from 15 to 12.5

Nifty 5400 Call add 3.7 lakh shares (7%) in Open Int, prem down from 100 to 93.5

Nifty 5000 Put add 3.16 lakh shares (13%) in Open Int

Nifty 5500 Put shed 5.7 lakh shares (12%) in Open Int

Nifty 5600 Call shed 2.9 lakh shares (5%) in Open Int

Target for February 07 - February 11, 2011

Company	Recommendation	CMP (Rs.)	Target Price (Rs.)	Stop Loss (Rs.)
MAHMAH Feb Futures	Short	669	600	720.3
HCLTEC Feb Futures	Short	482	442	503.6
RELCOM Feb Futures	Short	115.2	103	121.6

NOTE : This are just  technical views on market & stocks we are responsible for any kind of buy or sell. First analaysis the market then decide.

Buy Oil & Natural Gas Corpn Ltd CMP: Rs. 1,191.7 Target Price: Rs. 1,360

Oil & Natural Gas Corpn Ltd ONGC dominates India’s oil & gas production with more than two-third share of the country’s production of oil and oil equivalent gas. It contributes ~78% and ~73% to total oil and gas production, respectively, in India. ONGC has 962.9 MTOE barrels of proved (1P) reserves, as on FY10 end. ONGC’s total domestic hydrocarbon production for FY10 aggregated 52.1MMT.

Global crude demand likely to increase on global recovery. Moreover energy consumption in India from natural gas (currently ~9% due to shortage of gas) is set to rise due to production increase from ~132 mmscmd in FY10 to around 230 mmscmd in FY12E. Based on the demand of gas for power and fertilizers, we believe that an increase in the gas supplies can be easily absorbed by the country. In fact, we believe that India may have an appetite for more gas supplies, as the country’s GDP grows above 8.0% CAGR in the next decade which offers serious opportunities in oil & gas sector.

ONGC’s earnings will be positively correlated to the increase in crude prices, as an increasing proportion of its international revenues (through OVL in a deregulated environment) will lead to higher realisations on crude. Also, OVL will be the major driver for volumes in the future and is also currently scaling up its production assets aggressively.

Significant APM gas price hike at one go is definitely positive for ONGC. This is a significant positive for the company and will support the substantial capital investments by it. Further, ONGC’s current exploration acreage offers significant opportunities for increase in reserves. Further, we are enthused by ONGC’s asset, new projects, and potential exploration upsides. However, till clear subsidy sharing mechanism emerges, uncertainty may prevail.

Why Stock Rally May Fizzle

Finally, Dow 12,000 for the first time since June 2008 has closed. And surprisingly, blue chip stocks with a gain of four percent this year, are leading the charge, and large-cap blue chip stocks to increase it's share seems slight rotation. My advice is to drive the rally, but at the same time, do not ignore the global threat. Currently the stock is seething, but may soon fizzle out with a correction. 

It finally happened. After four failed attempts last week, the first time since June 2008 for the Dow over 12,000 on Tuesday. And surprisingly, blue chip stocks with a gain of four percent this year, are leading the charge, and large-cap blue chip stocks to increase it's share seems slight rotation. 

However, the rally will fizzle out because of the stock. 

Broader markets, science and for the first time since 1300 2008 500 P, and it is up to 3.98% this year. But so far February, S & P 500 fairly weak 2.4% in eight months with an average loss of 12 years with four months, according to the Stock Traders Almanac. 

Stock markets are overbought technically and relative strength (RS) is neutral, so they can see the rally and there is a negative deviation between Rs. 

I have a correction uncertainties. You should know about it. 

Hold following the index, but it can not be conclusive, I believe this year to dictate business volatility will not. Although technically breaks are encouraged and continues to be high growth markets, the dealers feel the global risks are ignored and only focusing on the domestic political environment. 

However, on Egypt and the Middle East tensions and uncertainties. It will change in leadership in Egypt, and that will create political uncertainty. In Europe, a real risk that can not be overlooked is the growing debt and deficit. Keep a watchful eye on Spain. Failure here could be disastrous. 

Then there are in China. 

Chinese inflation not a real development and sustainability of our business partners in China but also globally with the potential threat. Estimated at an annualized 5.3% inflation in January would rise by economists. We see the high cost of Chinese-made products.
Key Lunar New Year holiday in China with the introduction of the country's Prime Minister Wen Jiabao said the government will deal with inflation and rising property prices. 

With knowledge of the Chinese government's thinking according to economists, it is a belief that the Chinese government a month, two years after moving to the middle to raise interest rates within. It is a concern for Chinese stocks, but also on other global markets would weigh.

Trading Rules (you will be a very good businessman)

Here are some good ideas to consider when trading penny stocks to hold. As you learn and use, they limit your losses and your profits can begin to increase.
 
The number one rule to remember is that the penny stock market like the wild wild west. There is a danger around every corner. Everything you read or hear about every penny stocks take a half-truth at best. The market liars cheaters, and is full of thieves.

Most penny stocks two years from now in the form they are now are not. Most go through a name change, reverse split will be the next big business idea for the new management are applied to them. For this reason, I was never a long term player in these stocks. I am in most stores for hours to weeks. 

Please only small investments in stocks. No matter how a good stock never seems to bet the farm. Stocks only a small part of your portfolio. These stocks are risky. Do your research. These stocks are not for everyone. Do not invest money you can not lose. 

Having said that, I love the market. Elsewhere that you move as much stock as fast you can get in this market. It is those traits that is giving us a great chance to win.
Follow these rules and strategies, and you will learn to book consistent profits. 

Getting in 
 
More and limit orders, whenever a public company. Select a starting price and stick to it.
Do not chase stocks. There is always a trade is just around the corner. Beat yourself up when you do not miss. The last thing you want because you move a stock and think you miss the train than to pay. 

In order not to enter the business market. With market orders, market maker for you at whatever price they like, and you always fill unsecured bad fills. 

If a stock gaps not the way the Chase. Most stocks, the difference in days to come down. If a stock gaps in the market makers (generally starting 9:45-10:15 EST EST) usually start at this point, panic investors to try and sell stock back to them so that the Dose push stocks to fill orders for those differences are less make a profit. If you'd like to share there lag far cheaper to take the back are usually the stock market. 

WATCH THE OPEN
Given the open is very important. How a stock trading in the first 10-15 minutes after the market can be opened can learn a lot about. The first thing I see is a lot to sell. If you have only one stock in the first ten minutes of the 50,000 shares and average daily volume of 250,000 shares of stock trading are, and it does not move is not a good sign. This means that there are many vendors and they are probably the same as the day goes on more aggressive going to get. 

They want to see a stock tick on a regular basis, as you come in. If you are buying a stock and you can see a lot of buying and it does not move out to get noticed. Do not wait. 

KEEP YOUR LOSSES SMALL

The safest way to do this if it goes as my warning is to sell a stock. If you enter a trade, you must decide how much you are willing to risk. You get a certain number and, if you are against business. Every great loss started as a small loss if the business concluding investors lost control of her emotions and refrain. If you are an investor, you should be against the business that you're going to. It happens to everyone. Successful traders know how to limit losses, the need to not fail. You hope and pray that the stocks start to turn around from losing money, and the next thing a little loss of 10% to 40% now know the damage. At this point, they believe the stock is less dependent on them to start. 

Now there is a 90% loss and eventually sell it. Come on, it's you. Any business you want to insert a line in the sand. Line when it's over, get out. It is a command called for a stop-loss. These orders bring under the current market and triggered a stock is on the way down. A stop-loss orders to limit your losses or a business is designed to protect your profits.
Without an order to close a penny stock should trade. 

Last week shut down properly stops the best site for you. This is the price I mentioned in my warning. Attacks should be kept tight in order to limit losses. 10% -20% MAX.
I have a reader that is a big loss if it is made following this rule should never have heard. The most important key to success in business. 

If you do not have a Stop Loss order to allow broker, get one. Here is a link like they stop-loss orders and only $ 5 Penny Stocks trade on the business permit fee. Here is the link to open an account. http://wfwsconsulting.com/choicetrades 

SELL ON THE WAY UP
To determine the advance of entering a new trade round, where to get one if the stock rises like. It placed a limit order to sell the stock purchases from time allows. So if the stock hits that price, and with surprise that I have taken are not high for what it is struggling to keep going. Book your profits. 

BE CONSISTENT
Get used to profit booking, no matter how small. To do this, when they began to take small profits can help learning. There are 10%, 15% and 20% profitable trades is nothing wrong with taking. These are usually an excellent state of mind and the tax benefits are available to take much more of a habit. You buy low and sell all high on each is not a lot of money to bring to market. You just need to be compatible. 

Everyone wants to go home when the money runs stock, but the fact that most investors consistent profits rather than lose more money for the big winners are now up. Do not be greedy. This will be the death of your business account. 

TRAILING STOPS
You always use trailing stops to protect their profits, the stock was high after a must. For example, the $ 0.10 cents a share and it goes up to 0.20 cents to protect its profits. Some people decide to completely and that is smart, but to see some of you want to do business if he goes to high living can be. The best way to do this is to use a trailing stop. In my example, your off 0.18 cents, which gets the stock at 0.20 cents and 0.18 cents means sold their stock comes out. It protects your profits. A mistake that many traders a break-even or losing business to a profitable business is permitted. Allow this to happen. Use trailing stops. Off your back to protect him further gains continue to move. 

Always book no matter how small profit. Put money in the bank.

Follow these rules and you will be a very good businessman.