MAHINDRA AND MAHINDRA LIMITED

In the choppier session of market a stock is near its 52-week high on yesterday. MAHINDRA AND MAHINDRA touched Rs 823.9 an intraday high level which is very near of its 52 week's high level. Fundamentally, stock is very strong, and it has been growing sales turnover year by year. This is the stock of Auto sector. Higher interest rate is the only negative factor for Auto sector and this stock. RBI had increased interest rates recently, which will be put a bad impact on the sales number of company. Due to higher commodity's prices in last few quarters also affects company's margin but now eases in commodities prices will be good for auto companies. MAHINDRA AND MAHINDRA launched its first global SUV vehicles range in very competitive prices. Technically stock is in a strong uptrend, and it has done huge volume breakout on Thursday's session. Stock may buy for the target of Rs 850 with the stop loss of 804 for today.

HOT STOCK UPDATE - ITC

When the market is in a downtrend, where to invest safely, this is a big question for investors. Here is a stock from FMCG sector doing well from last three years. ITC is in major uptrend on weekly and daily charts. Fundamentally it has good earning  and sales growth from last five years, and it is expected to continue in FY 12 also. Company has reported operating profit of 8533.24 cr, which is higher than around 30% from last year. In June's quarter, the company has also reported net profit of Rs 1332.72 cr  it is around 25% higher than the same quarter in the previous year. Now ITC has increased 10% of cigarette prices, which will increase an operating margin of the company. Technically stock has taken support from its 200 days moving average line on daily charts and closed over 100 days moving average line with high-volume  breakout. Stock has the immediate target  of Rs 205. Buying is advised with stop-loss of Rs 184.

NIFTY HAS RESISTANCE ON 5050-5075

After the news of the bailout package for European countries which is announced on Monday. Nifty has rallied around 200 points from its lower levels, but now nifty may lose strength of this rally around 5050-5075 levels. Nifty has closed at the level of 50 moving day's average line, which is a resistance for Nifty in the morning session.U.S. Market rallied more in last night but lost maximum gains due to profit booking on higher levels. Asian markets also trading mixed and Sgx nifty is trading 4990 at this time. Nifty option data indicates that 5000 is the crucial level in September series. If Nifty holds 5000 level in morning session, then after the indication of European markets may vary. Due to expiry of September series on Thursday, Market may be choppier for next two days.

PRE MARKET UPDATE

Nifty has closed on 4835, down around .66% after a choppy session on Monday. Nifty has opened on 4844 and touched intraday low at 4760. After taking indication from European markets, Nifty recovered and made intraday    around 4860 levels. Amid choppy session of Indian markets, DLF and JP ASSOCIATES were gaining due to short covering in the market.Traders closed their short positions in these stocks due to expiry of         September series. DLF, JP ASSOCIATES may go further up. With stoploss of Rs 65 JP ASSOCIATE may buy only for today. It my go around 74 and DLF may long for the target of 210-212 with the stop-loss   Rs195.210-212 with the stop-lossRs195.

HINDALCO MAY MORE DOWN

HINDALCO is a larger aluminium producer company, which is currently near 52 weeks low, On Friday session it was trading at 134.15. The future data indicates  that more short position has added in October series. It was the top loser's list in Nifty on Friday also. Due to  lower commodity prices, it may have more downsides it may go around 120 in next few sessions. Fundamentally stock is trading lower on its book-value, which is around Rs 155.  lower commodity prices may affect its margin in FY 2012. Short sell is advised in Hindalco at any rise.

SILVER CRASHED ALMOST 18%

Silver has the biggest decline of one day about 18% after 2008. Silver has broken its all technical supports due to uncertainty in U.S. economy and EUROPE's defaults. CME also has increased margins of Silver, Gold and copper. The huge short positions have opened in Silver in last three days. Silver has breached its short term support $32 and 200 days moving average line and closed below which indicates weakness in Silver. Due to high prices of Dollar in Rupees Silver is above 50000 in Indian market, which is a psychological support, rally started from $26.5 to around $50 in International markets is 76% is wiped out, If silver closed below the $26.5 at Comex, then it will be again in a deep downtrend. It is advised to avoid Silver for few weeks

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NIFTY MAY TAKE SUPPORT AGAIN FROM 4700 LEVEL

Among the U.S. and EUROPE markets clues, nifty has lost around 200 points on Thursday's session. The big traders cut their long positions in the nifty future and opened new short positions in the market. Nifty option data showing that the bottom has shifted 5000 to 4700 hundred levels. Nifty was bounced back from 4720 level last time. Nifty may re-taste this level again. If Nifty brake 4700 levels, then it may have more downsides, Nifty may touch 4200 levels. JP ASSOCIATES, Short selling advised in RPOWER, RELIANCE INFRA, TATAMOTORS, IDFC, DLF, and RCOM.