EXCERPTS OF MY MORNIGN MAIL TO THE PREMIUM MEMBERS:

India’s benchmark stock index fell to its lowest level in two weeks yesterday. TCS led software exporters lower as the dollar weakened.

However, Rolta Ltd fell marginally as it gets most of its revenues from the domestic market. Currently Rolta Ltd is trading at around Rs.190 and should improve from this price.

The Sensex lost 151.88 points, or 0.9 percent, to close at 16,806.66, its lowest since Sept. 25, 2009; while Nifty declined 0.8 percent to 4,985.75.

Yesterday the U.S. stocks rose for a third day as bank shares rose on an analysts upgrade of Bank of America and Wells Fargo’s plan to boost credit-card rates, while Alcoa jumped before beginning the third-quarter earnings.

Asian stocks are trading in the positive sone for a third day today morning, driving the MSCI Asia Pacific Index to a two-week high, after Australian employers unexpectedly added workers last month and Alcoa reported earnings that beat analyst estimates.

The markets are cautious ahead of announce inflation data today for the week ended Sept. 26 which is expected to come higher than last week’s 0.83% for week ended Sept.19.

Chart--Check:

Yesterday the Indian markets started on positive note on the back of buying momentum. However, the day ended deep red after several failed attempts at recovery. In case of Nifty 4900-4920 looks like a strong immediate support.

The bears are likely to take control if this level is broken on the downside. Until that happens the idea is to keep buying for a target in excess of 5100--5200, in case of Nifty.

Once the level of 4900 is breached, the next logical levels could be XXXXX (for the Paid Groups) in the offering.

One should note that the trend of the market is distinctly positive even in the short term. Hence, one should look for pockets of strength for initiating longs rather than contemplating pre-emptive shorts and this looks to be a more opportune trading idea, considering the present conditions.

THE INVESTORS SHOULD START ACCUMULATING FOR THE PRE-DEEWALI RALLY....

XL Telecom and Energy Ltd has corrected along with the other telecom counters, but strictly speaking it is now more of a renewable energy company than a Telecom Company. Hence this selling is just a misnomer, especially when the worst for the company is already over.

The company is expected to complete the mega solar project by December, 2010. Moreover, Q2FY10, quarter results will be a little better at least sequentially due to the improvement in the world economy and especially European Union, where the company is running some major projects.

XL Telecom & Energy Ltd earlier informed BSE that a Committee of the Board of Directors at its meeting held on September 15, 2009, inter alia, have allotted 11,19,093 (Eleven lacs Nineteen Thousand Ninety Three only) Equity Shares of Rs 10/- each of the Company at a premium of Rs 150/- per share to "Morgan Stanley Mauritius Company Ltd" upon conversion of Foreign Currency Convertible Bonds to the extent of US$ 4.50 million. Does it give some datum for the shares of the company. Hence accumulate in bulk and wait for just few months to get mega returns..... Glory Polyfilms Ltd is doing well even today as it is up more than 6%, when this report is being prepared.The company would complete the 2nd Phase of expansion within a couple of months. Off late some new developments have taken place. It is a fundamentally sound company.

Meanwhile, Mr.Amitabh Bachchan has sold his holding in Energy Development Company Ltd (BSE Code: 532219).

TEXTILES: Government plans to cut duty on man-made fibres to make Indian exports competitive and give exporters a level playing field. This is a positive news for the textile companies.

Accentia Technologies Ltd could also be accumulated at the price band of Rs.104--Rs.110, for some superb targets.