{:2740} ekka's reports Anagram's Weekly Watch:28/06/2008

[ekam ber]

 Anagram's Weekly Watch:28/06/2008

AN OVERCAST SKY FORECAST FOR JULY

 

As we bid good-bye to June, the sentiment continues to be bearish. And the outlook for the month of July is as usual quite dreary.

 

While we still have one more trading day to go in June, the Nifty has already lost 15%, its worst fall in June since inception.  As 30^th June marks the end of the month as well as the quarter, expect some spirited window dressing. This characteristic could also be responsible for weakness later on.  Expect the redemption calls to mount on the hedge funds. So watch out for any such moves.

 

We expect Real Estate, Banks and Autos to continue to be under pressure. And any rally in these could be used to prune exposure. The metal stocks are also weak. The Nifty needs to close above the 4350 mark to alarm the short sellers. Till that point of time, 4093-4325 is the range.

 

The Bear Club has now a new entrant, the US of A. The Dow has fallen 20% from its October 2007 peak and is now officially in a bear market. This is accompanied by an appearance of a Head and Shoulders pattern on the weekly charts of the Dow. Simultaneously, the trendline that has been in vogue since 29^th October 2004, has also been broken, which makes us slightly nervous about the prospects of the US markets.  The Dow could slip down to around 10,000 mark in the coming months.

Technical Picks for the Forthcoming Week

STOCK	RECOMMENDATION	CMP	STOP LOSS (Rs)	TARGETS (Rs)
ADLABS FILMS	SELL	474	490	448,420

 

 

 

 

FUNDAMENTAL CHECK

 

Stocks Covered This Week

 

Company	Price 27-June-08 (Rs)	Report Type	Recommendation & Target (Rs)
GENUS POWER INFRASTRUCTURES LTD	336.45	RESEARCH REPORT	ACCUMULATE