CRITICAL PERIOD

Dear Investors,

Market had a disappointing session yesterday. There was good amount of profit booking at higher level, Nifty moved up to 6141 (This was Pivot level for 5^th Jan.0. and reacted from that to form days low at 6062 (This was  S3 for 5^th Jan) to close at 6079.Market breadth was negative , It was Banking, Auto and to some extent large cap IT brought markets down

Near term view:

Now the further course of market depends on ‘Earning Season’ starting next week. Market needs a ‘Steroid’ shot of good results to re start journey to 6220, which is a significant resistance. Nifty should sustain 6020/6003/5960 levels to keep ‘Bulls’ alive. Disappointing earnings may take Nifty to the levels of 5960

.           Short to medium term traders should book profit below 6003 and wait for next move of the market.

Long term view;

Long term investors can ‘Buy’ till Nifty holds 5690/5778 levels below which ‘Bears’ will have a party. Long term investors should use dips to accumulate stocks at all dips up to Nifty level of 5690

Technical View:

Pivot for Nifty: 6094

R1 (First resistance) is @ 6126

R2 (Second resistance) is @ 6173

R3 (Third resistance) is @ 6206

S1 (First support) is @ 6047

S2 (Second support) is @6015

S3 (Third support) is @ 5968

20DMA@5991

50DMA@6020

200DMA@5587

STOCK SPECIFIC;

Momentum calls

RIL

TISCO

HINDALCO

STERLITE

SESAGOA

Short term Investment Buy

ITC

HUL

Momentum IT stocks

Mphasis (Target 745)

Polaris   (Target 221)

Rolta     (Target 179)

INVESTMENT BUYES FOR LONGTERM

Tecpro

Ador fontech

Talwalkars

Geodesic

Graphite

Savita oil Technology (Fundamental Call) (Sector: Petroleum)

The Company was one of the first in the country to

Manufacture liquid paraffin as an import substitute      entirely with an indigenously developed know-how.  The company also started to manufacture Emulsified and other white oils

Location:

Ultra modern manufacturing facilities are strategically located at Navi Mumbai, Mahad & Silvassa.

Product Range:

Liquid Paraffin

Transformer Oil

Lubricants

Waxes

Automotive and Industrial lubricants

Speciality wax Emulsions

Optic Fiber Filling Compounds

White oil

Petrollium jellies

Emulsifible Polyethelene wax.

Savita exports its products across the globe and is known for its customization, ISO 9001 Quality System and innovative packaging like Flexitanks, ISOtanks and optimized drum-stacking systems. Today, Savita's global reputation is that of an ethical & reliable company with an efficient distribution channels. Savita Group is today India's largest exporter of Petroleum Specialties Products.

In addition

The Wind Energy Plant at Venkhusavde, Pallani village, Satara

District in Maharashtra was commissioned on 20th of March.

1999

- The Power generated from the Wind Energy Plant will be used

For captive consumption by the company and also for supply to third

Parties on commercial basis

The Company's 2.25MW Wind Energy Project at Gojegaon, Satara,

Maharashtra was commissioned on 30th March 2000

VALUATIONS

TODAYS CLOSE 542

HIGH 575

LOW 542

52 WEEKS TOP: 610

52 WEEKS LOW: 405

30 DMA (DAYS MOVING AVERAGE):   524

50 DMA (DAYS MOVING AVERAGE);   533

150 DMA (DAYS MOVING AVERAGE)  529

200 DMA (DAYS MOVING AVERAGE) 514

Looks like a fresh break out. It is moving above all DMAS, making it a ‘good investment buy’.

KEEP WATCH AT ALL DIPS

Thanks

Dr. Vasant Bele

Disclaimer: views expressed are mine; take your own investment decisions.

The news letter for next days market movement is always written and posted on previous day’s evening