Due to over sold situation in short term and subsequent short cover, the F&O expiry is expected to be closed in the positive today. Since the morning, there has been relentless buying in the Indian bourses, after the INR appreciated against the USD. However, what is to be noted is that till now the rallies are proving to be short lived and are getting exhausted quickly. On the other hand lower level is attracting buying interest also. This has resulted into extreme volatility on the either side of the spectrum. However, it seems there are now some hope of Nifty going to 5700 levels by the end of September, which is normally a good month for the BULLS.
Support: 5350 / 5300.
MCX Ltd which was recommended around Rs.255 and Rs.272, last week is today locked at the Upper Circuits at Rs.256.15. The is near the first target.
Those who have earlier taken B F Utilities Ltd at Rs.128-128, or later, bought it around Rs.118-120, when it fell can continue to add on to their positions and wait for the scrip to cross Rs.200. Today, I am told that an advisory service has recommended the scrip, as a buy for a target of Rs.163.Today the scrip already touched Rs.134.40.
Those who have entered VIP Industries Ltd yesterday, are suggested to exit the counter at around Rs.47.80-48 or either with small profits, or with cost price, because the stock is not performing as expected, even as the INR appreciated against the USD. It was recommended yesterday, on the two premises:
(i) Ace investor, Rakesh Jhunjhunwala has increased his holdings, mostly probably banking on the revival of sales from the CSD business of the company.
(i) Any appreciation of the INR against the USD would be positive for the company as it imports around 80-85 % of its products.
However, the stock did not react too much on the positive side, may be because the price of crude has risen, on the fear of another war in the middle-east.