Market ended in deep red

January 5 ,2011
From the desk of
Dr.Ashwani varshney

Indian market face sharp decline on account of heavy selling seen in banking and realty stocks .Sensex closed at 20301 down 197 points and nifty closed at 6079 down 66 points.However FIIS were the net buyers in cash market  according to the provisional figures.The nifty and sensex decline on account of heavy selling seen in the european markets

The short term market  outlook remains bullish as long as the nifty future holds 6030-6050 levels . where the 50 day moving average exist. Reversal from these levels confirm the bullish pattern on charts . If nifty holds 6030 level ,in the coming days 6300 levels can be seen easily.The strategy should be of buy on dips as long as the above  levels hold.

Recommendations for January 6, 2011

1) Go long in reliance industries for target  of 1100 in coming days
2)Buy Dr Reddy labs at the opening bell for the 5 % gains in the coming session.
3)Buy Chambal Fertilisers at 87 -88 level for a target of 96 in next 2-3 sessions.

Good luck