MARKET MANTRA:

Prakash Industries

Yesterday, as expected, rally continued in market and Nifty closed with a gain of 28 points. A second half rally took Nifty to the day’s high of 5169, after which we saw a virtually flat market hovering between 5100 and 5140. Nifty finally it settled at 5153.
Market remains strong above 5050 and 5070--5100 is a support zone, which is still intact...so the show must go on with occasional bouts of profit booking, which is healthy for any market. This helps the side-liners to enter the market with fresh cash. Moreover the Union finance ministry has taken up a review of the current Securities Transaction Tax (STT) regime after a meeting with top exchange officials. The cost of trading in shares is likely to go down if this is implemented. While a waiver of STT in the soon-to-be-launched small and medium enterprises (SMEs) segment of the exchanges is a done deal, a similar change of rule for the equity segment was being looked into, sources in the ministry informed. Smart rally from the oversold area below 4800 and a weekly close above 5000 mark clearly shows end of the downtrend started from 5700 level. Rally is expected to continue in market. Long positions can be hold on to with a stop of 4900. The markets are set to move higher in the coming days and we are now beginning to see broad based rallies.
RESISTANCE--XXXX & XXXX (For the Paid Groups)
SUPPORT--XXXX & XXXX (For the Paid Groups)

Allied Digital Services Ltd hits another buyer freeze in the mid afternoon trade. The stock is trading at a dirt cheap price at the CMP of Rs.31.90. The company has ventured into a new line of business. Also, with Mr.Ben Bernanke saying that he look for all the efforts to boost up the fundamentals of US, economy, I think one should have IT stocks in his portfolio. 

Those who have partially booked profits in Prakash Industries Ltd can continue to hold rest of the holdings for an immediate target of Rs.62--the other targets are still intact. The stock is showing high momentum in hourly charts---I think some groups are taking positions in the counter. You can add also at the current market price of Rs.53.50, as I have already mentioned that according to my sources all those talks of search is just a HOAX created by the media reports and hence the scrip has to move up---now way.....In another news in this sector: companies such as Tata Steel could be active after the world’s largest steelmaker, Arcelor Mittal, is temporarily shutting its Eisenhuttenstadt No. 1 blast furnace due to “seasonal slowdown and some regional demand fluctuations.” A great news for most of the steel companies.So, just add the steel companies in your portfolio, as the monsoon is coming to an end in India.

RELIANCE COMMUNICATIONS: Allegations of violation of norms related to external commercial borrowings and Foreign Exchange Management Act by the company have been referred to the Enforcement Directorate and the RBI, respectively. For the time being please do not enter ADA Group companies as the government is probably taking vendetta on Anil Ambani. Avoid the stocks from this group from the time  being.