Market Outlook

To disapoint you folks,Market is likely to extend recent steep losses on concerns about the weakening domestic and global economy and selling by foreign funds.Imagine,you are on the top of a mountain.When you stand near the edge and want to look down, land-mass looks very far and it is frightening to see; lest you fall. When I look at the charts of the sensex for supports,I get the same feeling!We will test 8400 in Sensex and 2505 in Nifty early in the opening session, and if institutions support comes in, there could be a reprieve.If it does not,we will eventually head towards October lows.Dow and Nikkei both indices are now trading below 8000 levels.Long term strong supports for these markets come in at around 8% lower from the current levels.When markets head towards those levels, we are likely to see policy action from the regulators.In India, bond markets traders bought bonds yesterday, concluding interest rate cuts will come in by the weekend. Hopes of policy actions can trigger buying at the lower levels in our markets also, but wait for concrete signals.It should be prudent to note that am not a great chartist and neither am a votary of it.But the prediction of today is likely to come true since panic may just set in.Anyways,I am buying the stocks that have got suggested in the blog itself.Remember buy when others are panicking and sell when others turn greedy.


Regards,
ARUN
I can be reached at:arunanalyst@rediffmail.com

Prajay Engineers Syndicate:-Downsides seems limited

Scripscan:Prajay Engineers Syndicate Ltd
cmp:20
Traded in:Nse-bse

Climax:Prajay Engineers Syndicate bolsters to 480rs from a mere couple of rs in 3-4 years of time.Several brokerages and foreign firms opts for the company with targets coming in and around of and above 4 figures.Lets deal with the present,Prajay is quoting at 20rs now thanx to its horrendous numbers and uncertainity surrounding its projects.Prajay is one of the largest real estate developers in Hyderabad, offering differentiated real estate and hospitality products. The company has made significant capital gains on the back of its well located land bank of of 800acres.The company has several projects under construction, comprising of 18 million sq ft of area.These projects include high end residential apartments and townships, 35-star hotels, 3 business class hotels, 1 golf course and several retail and entertainment complexes.It is expected that investments to the tune of USD 320 billion will be required to boost Infrastructure in India over the next few years.Honestly speaking on the face of it, prajay looks a sure shot bet.It has got a massive book value with lot of quality land banks and stuff covering it.Anybody having a penchant into the realty sector may just satiate his desire by banking on it.Downsides seems minimal but it may just surprise one on the upside front.One shoudnt mix up realty with the tech 2000 boom.As I have earlier mentioned population is on the rise and our country"s population itself will double over the coming few decades.With our country going global its of one"s easy assumption that people would opt for their own flats and residents.Majority of the population being youth gives a strong conviction of the upcoming developments.Fine enough,recession may always come and hurt once in a century but that would only be an oppurtunity to capitalise.So go for the company which has ambitious plans,a lot of proven land bank and beleif that it would spark a robust turnaround once the sentiment changes for good.A good buy with least downside.


Regards,
ARUN
I can be reached at:arunanalyst@rediffmail.com

Market outlook

Market outlook:-The markets have closed lower for last few days. In order to ensure that this weakness be seen as a mere correction, the indices must close on a firm note.A late recovery after an initial fall in the coming week will be a chart made to order.That brings us to the all important question, should you buy the weakness? The answer is yes, if you have booked profits in this rally or if you are just sitting on cash.IT stocks are going to be in a tough environment as President Obamas anti off-shoring stance coupled with delay in IT budgets is heady cocktail.Still IT stocks like Oracle could be bought at declines.Banks margins are going to be under pressure as credit growth is unlikely to keep pace with deposit growth this quarter for sound banks not withstanding cut in SLR and CRR.Mid cap are likely to continue outperforming their bigger brethren.I dont see the Sensex in any hurry to trek back to higher altitudes.The talk of imploding hedge funds and several weak governments in trouble prohibits me from putting on my rosy glasses.Next meaningful resistance comes in 10257.I continue to prefer Power,PSUs and mid caps.For traders if the markets dont bounce back by tuesday you can hang up your Bull mask.Support exists in the Nifty at 2688.


Regards,
ARUN
I can be reached at:arunanalyst@rediffmail.com