Weekly Market (29-12-08 to 2-1-2009)

Market may recover after sharp fall in this week Nifty lost 220 points (-7.1%) & Sensex lost 770 points (-7.63%) in the last week. Nifty closed below the 2,900 mark while the Sensex drifted below the 9,500 level. Hopes of further rate cuts by the RBI, Rate reduce in fuel prices and a likely second government stimulus package to pump prime the economy may trigger a recovery on the bourses after a sharp slide last week.
In last week, Inflation slipped to a nine-month low, 6.61% against 6.84% (WoW). The government said advance taxes paid by companies declined 22% reflecting economic slowdown. Also there is now tension of war at Indo-Pak border, but as of now both nation’s government said that, there would be no Indo-Pak war.
However, trading volumes are likely to remain low as most foreign fund managers are on a vacation for Christmas and the New Year. Use Stop loss strictly in your every trade, because market is heavily volatile with narrow trading range.
Last week nifty could not sustain above 3000. Now below 2842 nifty may touch 2780-2696 and if nifty close above 2908 at least for two days then it may touch 2989,3050 to 3111 in coming days.
Here is some stocks for my view:-
CAIRN (159): Buy above 163 for target of 174-180-190 with stop loss of 152.
GTOFFSHORE (212):Buy this stock above 215 with stop loss of 206. Target is 228-233-239.
Bank of Baroda (263):Buy only above 266 for target of 280-287-294 with stop loss of 253.
PFC (123): Sell this stock if close below 119 with stop loss of 124. Target is 116-111-106.