Introduction of 3 New Trading Services : 50-50 Package, Pay Per Call [PPC] Package & Cash Call Card [3C] Package.

-Team SLT

Unknown fears remain and randomness is the order of the day. Any sharp snap-back should be used to lighten your mental burden rather than adding pos.

A bounce back is on the cards at start, thanks largely to a late session rebound on Wall Street. But then remember, Bouncing is more like crashing…. except you get to do it over and over again.

Asian markets are mostly positive, barring the Kospi in Seoul, which is still reeling under the geopolitical tension. The European markets failed to benefit from the recovery in US stocks and ended sharply lower. In fact, markets in Italy, Portugal and Ireland joined Spain and Greece in bear-market territory. The FTSE 100 closed below 5,000.

German finance ministry is reportedly proposing extending the naked short-selling ban to include all German-listed stocks. The bill is due to be discussed next week. Italy has joined Europe's austerity club with deep spending cuts.

What this means is that unknown fears remain and randomness is the order of the day. Volatility is very high and so are uncertainties and risks. With the F&O expiry a day away it only gets wilder. Any sharp snap-back should be used to lighten your mental burden rather than adding positions.

-Team SLT

SLT team has already sent alerts to its members - Remember, “Nobody rings a bell at the top or the bottom of a market”

The economy and the stock market usually don’t turn on a dime. Their behavior is more like an oil tanker, needing time and space to change direction.

In the stock market this shift is called a topping process and typically has two characteristics:

1. The range of its high to its low is between 10 percent to 15 percent with a relatively clearly defined lower boundary of support, often called the neckline by technical traders, and
2. It lasts anywhere from three to eighteen months.

What to Expect Now …

We see today's (Wednesday) drop of approx 150pts in Nifty as a warning crack signaling. A warning crack is a very steep, but short fall at the end of a huge bull move. Typically it’s followed by a rally back to the highs or even to token new highs. And that’s exactly what we will be expecting here. We do not see this fall to continue, market will most likely bounce back again another 100-150pts in Nifty before it goes for 10-12% correction. One should take this opportunity to do selective buy of fundamental stocks.

History shows that overvalued markets can hit air pockets, because everyone who is willing to buy is already invested. What’s more, value investors will not easily step in to buy this market. There’s an old Wall Street saying: “Nobody rings a bell at the top or the bottom of a market.”

-JK, Lead Associate, SLT

Make no mistake; risk aversion is here to stay, so is uncertainty and volatility.

Make no mistake; risk aversion is here to stay, so is uncertainty and volatility. The euro has hit a fresh four-year low against the US dollar. The CBOE VIX ended upwards of 33 overnight. The dollar index is trading above 87. Risky assets like stocks, commodities, and emerging market currencies are being shunned. Safe havens like gold and US treasuries are being snapped up. Germany is banning some bearish bets on sovereign bonds and certain financial stocks.

Markets are pre-occupied with the euro-zone debt crisis and its potential fallout on the global economy. The trend is unlikely to change anytime soon.

We see another weak start to the day as Asian markets are mostly in red following the overnight fall on Wall Street. Ironically, markets in Europe ended smartly higher. One has to watch how they open today. The NSE Nifty may yet again test 200-day DMA of 4987 today. It will be interesting to see if it rebounds from there or slips under it.

-Team SLT

Don't get fooled by any intra-day relief rallies, as risk-reward equation is still not favourable for the bulls.

The Indian stock market has slowed substantially after last year's stunning rally. The key indices remain stuck in a range even as the NSE Nifty has made several attempts at breaking free from the rangebound trading pattern. The European debt crisis has only made that task tougher. In fact, there are chances of the market falling further if the situation in Europe doesn't improve fast enough. China's red-hot economy is another cause for worry even as the US continues to exhibit anemic recovery and the UK is struggling with high budget deficit.

Back home, inflation represents the biggest challenge - for the market as well as for the policymakers. All eyes are now on monsoon. Talk of poor start to the rainy season spooked the sentiment on Friday. Hopefully, the IMD's prediction will prove wrong again. Our forecast for today is another weak start following the renewed bloodbath in the US and European markets. Asian markets are in the red this morning. Don't get fooled by any intra-day relief rallies, as risk-reward equation is still not favourable for the bulls.

-Team SLT

Consolidation will continue for some more time - Expect Nifty to close around 5170-5180 range!!!

Wild swings are here to stay though the outlook for the day appears slightly brighter. Risk aversion is still high with investors across the globe flocking to the safety of gold and the dollar. At the same time, stocks and commodities are showing some signs of staging a comeback. British shares rose as David Cameron took charge of the first coalition government in London since World War II. Spain’s announcement of a new austerity plan also helped boost confidence in equities.

Stocks in Europe as well as in the US posted smart gains. Asian markets are up this morning, led by Japan and South Korea though Shanghai continues to struggle amid tightening concerns.

We expect a higher opening on Indian bourses. The NSE Nifty may take a shot at 5200 but will find it tough to get past 5300 finally it is likely to close around 5170-80 today. Fund flows from overseas investors have tapered off lately and valuations remain quite rich. We are going through a volatile consolidation phase. It’s better to stay at a safe range and invest lesser than your means.

-Team SLT

Some choppiness is likely and the main indices may once again slip into a rangebound trade.

Global markets have heaved a sigh of relief. European leaders have buried the hatchet to avert a possible split in the euro-zone and bolster confidence in the euro. Another major financial crisis has been avoided. But, it remains to be seen how fast the debt-ridden European nations can rebound from here on.

The global economic recovery has suffered a temporary setback. What that means is that the crisis-fighting stimulus will stay for some time to come in advanced nations. Even central banks in emerging countries like India may go slow in raising rates. The dollar may remain firm. Emerging markets with strong growth will benefit from ultra-soft monetary regime in western countries.

For the day, the outlook remains positive though the start will be lackluster. Asian markets are mixed. Stocks in China are up owing to strong economic data. The Hang Seng is in the red. Some choppiness is likely and the main indices may once again slip into a rangebound trade. We would urge caution at these levels.

Source - Web

Contagion contained…temporarily! - Let's wait & watch the next move.

After several days of turbulence, we are in for a gap-up start this Monday morning as the EU and the IMF have agreed on an emergency funding facility worth as much as €720bn in loan guarantees and credits to stabilise the eurozone. The ECB will buy government bonds in the secondary market to calm jittery credit markets. The Fed will reopen dollar swap program and Bank of Japan has offered $21.6bn in liquidity.

Asian markets are mostly positive. US stock futures and euro jumped on euro zone package news. Markets in Europe are also likely to open higher on the news of deal among European nations to help stabilize troubled economies.

Needless to say, bourses in India will also start on a stronger footing. Shares in Nifty 50 will also be affected by the proposed changes in free float of its constituents. Reliance and ADAG group shares will remain in focus following the SC verdict. The latest IIP data will be out on Wednesday and is expected to be robust. Monthly inflation figures will be announced later in the week.

Now the question is what should be the next trend from here on, up or down? I would say, better to wait and watch the movement of Nifty for a day or two. Most likley we will fall down soon but if we are able to cross 5200 & sustain there, we might see higher levels too.

-JK, Lead Associate, SLT

Wall Street Hammered; Dow Plunges More Than 600 Points : SLT members are holding Nifty Short & Nifty 4800 Put Option!!!

Link : SLT trading partners are holding the following position as on today!

• Nifty Future Short Position
• Nifty 4800 Put Option

-Team SLT

Wall Street Slides for Third Day; European Debt Worries Weigh - It's going to drop further.

Stocks fell again Thursday as mixed news on the U.S. labor market and retail sales failed to allay worries that Greece's debt woes would spread to other parts of Europe.

The euro fell further against the dollar, hitting a new 14-month low. The euro has tumbled against the dollar since last fall as faith in Europe's shared currency dwindles. Greece's debt crunch is widely seen as a test of Europe's ability to restore fiscal discipline to the weak economies in its union and keep the decade-old currency viable.

The dollar's rise pushed commodities prices lower, especially oil. Greece passed a bill in its Parliament after heated debate that calls for unpopular cuts in public spending in pensions and other areas, as well as tax increases. Greece needed to approve the austerity measures to be eligible to receive a $141.9 billion aid package from the 15 other countries that use the euro and the International Monetary Fund.

Greece needs access to an initial portion of the money by May 19 to cover $11.6 billion in debt payments, or else it will likely default. Even if Greece gets the money it needs, there are still worries that the loans would be only a temporary fix to a growing debt problem across the continent. Portugal and Spain have also seen their debt ratings downgraded recently.

- Source (Web)

Sell-Off Likely To Continues After Yesterday's Steep Slide

The stock market stabilized Wednesday after investors let go of some of their concerns about European countries' big debt loads. Broader indexes also steadied Wednesday after the euro regained some of its ground against the dollar. A steep drop in the euro on Tuesday rammed markets around the world.

Investors are concerned that a $144 billion aid package for Greece won't be adequate to keep debt problems in Europe from spreading. There were also questions about whether the bailout would amount to more than a short-term fix for Greece, which has the smallest economy in the European Union.

Investors fear that if a tourniquet for Greece's financial problems doesn't hold, it would be harder to help larger countries like Spain and Portugal that also face big deficits. Moody's Investors Service warned on Wednesday that it could cut Portugal's credit rating two notches in the next three months.

Fixing Greece's financial problems won't be easy. Riots erupted in Athens on Wednesday over tax hikes and government spending cuts that the International Monetary Fund and other European nations are requiring as part of the bailout. Tens of thousands of people took to the streets and three people were killed in the protests.

Analysts have said that the problems of heavy government debts could eventually lead to a collapse of the euro. Sixteen countries use the common currency. The euro fell against the dollar, hitting its lowest level in 14 months in morning trading.

Swings in global stock markets have intensified in the past week. Wednesday was the sixth time in seven days the Dow moved by more than 100 points. Investors have questions about Greece but they're also awaiting the government's April jobs report on Friday and monitoring Washington's overhaul of the rules that govern financial companies.

Gold rose. Crude oil fell $2.72 to $80.02 per barrel on the New York Mercantile Exchange.

-JK, Lead Technical Analyst, SLT

DISCLAIMER: Neither the information nor any opinion expressed constitutes an offer, or any invitation to make an offer, to buy or sell any securities or any options, futures nor other derivatives related to such securities ("related investments"). Investors/traders should do their due diligence before taking any action based on our analysis.Stoplosstrade.com or any of its associates or employees does not accept any liability whatsoever direct or indirect that may arise from the use of the information herein.

SLT trading partners are holding the following position as on today!

SHORT POSITION IN NIFTY FUTURE - Global market corrected anticipated to the extend of 10% is on the way, one can expect Nifty levels of 4800 in next 1-2 week time. This is a healthy correction and one of the best time to build strong fundamental portfolio with multibagger stocks from 10in3, Street Smart & Business Insights. We do see huge upside after this correction which will lead to Nifty levels of 6000 & Sensex above 21K by end of this year!

NIFTY 4800 PUT OPTION - Why we suggested to buy Nifty Put option is because we are at the start of the month and we have good time in this month to hold options. Since market is likley to correct further so one can hedge their portfolio by buying Put Option.

ASHOLK LEYLAND 60 PUT OPTION - Ashok Leyland has good result which lead to sharp upside from 54 to 60+ levels. Profit booking is likley at this counter. One can also see impact of globla sell-off on auto sector because due to high inflation banks are likley to increase the rates which will impact auto loan etc.

TATA STEEL SHORT POSITION -Due to dollar appreciation, we can see commodity price falling. Steel sector will be hit hard, also china is heading for huge correction which will lower the demand for steel.

LONG IN NAKODA LTD - This is the only stock we are long now, because they have board meeting on May 10th where they are likely to issue QIP etc to promoters/investors. It is most likley that issue price will be higher then current market price. Also the Q4 result which is due can be another trigger for the same.

-JK, Lead Technical Analyst, SLT

Team SLT has already warned you that stocks were due for a big pullback, build your short position in Nifty, Commodity Stocks & Crude.

Everybody is worried about who is going to be next after Greece.....

Stocks plunged around the world Tuesday as fears spread that Europe's attempt to contain Greece's debt crisis would fail. The euro fell to its lowest point against the dollar in a year. The Dow Jones industrial average fell about 245 points, erasing its 143-point gain from Monday. The Dow and broader indexes each fell more than 2 percent. Treasury prices rose on increased demand for safety investments.

The euro again fell against the dollar as traders turned away from the currency, which is used by 16 European Union countries including Greece. Investors have punished the euro over the past few months over doubts that Europe would be able to enforce fiscal discipline in Greece and other weak countries in the region in order to protect the euro.

The rising dollar is a negative for investors because it would cut into profits for U.S. companies with sizable foreign operations. Profit growth is the ultimate driver of stock prices so a sense that earnings might falter could make it harder for the market to climb. When the dollar is up, overseas profits translate into less money. The stronger dollar also makes it more expensive for foreign buyers to purchase commodities like oil. That hurts demand.

Crude oil fell to $3.46 to $82.73 per barrel on the New York Mercantile Exchange. Europe and the euro is kind of the tip of the iceberg of bigger issues, which is worry over sovereign debt and currencies. The main driver of Tuesday's stock market plunge seemed to be growing worries that Greece's debt crisis would spread to Spain and Portugal, despite the euro zone's pledge of rescue funds. The corresponding flight to safety pushed up the US dollar which in turn weighed on stocks, which have performed better on a weak currency since the financial crisis began.


Positional Call for next few days....

• SELL NIFTY FUTURE BELOW 5200
• SELL METAL STOCKS (STEEL/ALUMINIUM/COPPER) LIKE TATA STEEL
• SELL CRUDE RELATED STOCKS - RELIANCE INDUSTRIES
• BUY NIFTY PUT OPTION

- JK, Lead Technical Analyst, SLT

Tuesday, May 4th 2010: Technical Views on Nifty - Go Short Below 5200 Levels, Keep SL 5240, TGT 5100/5000

Note: Short term correction of 100-150pts in Nifty is likely, it will be a good buying opportunity for investors.

- JK, Lead Technical Analyst, SLT
DISCLAIMER: Neither the information nor any opinion expressed constitutes an offer, or any invitation to make an offer, to buy or sell any securities or any options, futures nor other derivatives related to such securities ("related investments"). Investors/traders should do their due diligence before taking any action based on our analysis.Stoplosstrade.com or any of its associates or employees does not accept any liability whatsoever direct or indirect that may arise from the use of the information herein.

Delivery Based Cash Call : Buy NAKODA LTD (Code 521030) around 13-14, SL 12, Target 17-18 by May 10, 2010.

News : Nakoda Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 10, 2010, inter alia, to consider the following businesses:

1. To approve annual audited accounts for the year ended December 31, 2009.
2. To take on record unaudited financial results for the quarter ended March 31, 2010.
3. To consider expansion project.
4. To consider Preferential Issue of Warrants convertible into Equity shares to Promoters / Strategic Investors and fresh Issue of capital vide QIP / GDR / FCCB aggregating to about Rs. 200 Crores to part finance the expansion project.

Now the question is at what price company will be issuing the QIP/GDR/FCCB etc to raise funds approx 200Cr. As on today Mcap of the company is just Rs90Cr with sales more than Rs1000Cr. Most likely the issue price will be higher than the current market price.

-JK, Lead Technical Analyst, SLT

Stock Option Call: Buy Ashok Leyland 60 PUT OPTION around 2.50-2.60, SL 1.25, Target 5/8 in next 1-2 weeks

Recently Ashok Leyland has announced good result which was the trigger for its stock price movement from 55 to 60. The country's second largest truck maker Ashok Leyland reported a 318% growth in its net profit for the fourth quarter of FY10, which came in it Rs 222.66 crore versus Rs 53.32 crore on a year-on-year (YoY) basis. Its net sales too jumped 141% at Rs 2,939.04 crore versus Rs 1,218.12 crore (YoY).

Most of the news are already factored in the stock price, hence it is most likely that we can see cooling off in the price of Ashok Leyland. One can buy put option at the strike price of 60 for descent gains in next few days.

-JK, Lead Technical Analyst, SLT

DISCLAIMER: Neither the information nor any opinion expressed constitutes an offer, or any invitation to make an offer, to buy or sell any securities or any options, futures nor other derivatives related to such securities ("related investments"). Investors/traders should do their due diligence before taking any action based on our analysis.Stoplosstrade.com or any of its associates or employees does not accept any liability whatsoever direct or indirect that may arise from the use of the information herein.

Our first target achieved in Brahmaputra Infra at Rs130 (CMP 131.45), Buy call given at 112 on Apr 27th.

[Apr 27th] - Jaypee Infratech plans to raise Rs 2500cr via IPO : You can accumulate "Brahmaputra Infraprojects" for short term gains.

[May 3rd] - Our 1st target achieved at 130. One can book partial profit and look for next target of 150 in next 2 weeks.

- JK, Lead Technical Analyst, SLT

Expect market to top out during the coming months - Liquidity Has Dried Up Globally

The stock market rally on cruise control was hit head on by the Greek Debt Crisis throughout the week. As April turns to May the heat is being ramped up on the sovereign debt crisis as Greek Politicians feed the fires of civil unrest by blaming the financial markets for Greece's problems when in actual fact it is the Greeks who are responsible for living far beyond their means by way of defrauding bond market investors by pumping out phony debt statistics for many years that hid the true cost of their profligate life style which was masked by being in the EURO, for if Greece was not in the Euro then the level of fraud perpetrated upon bond holders would NOT have been able to be masked from the foreign exchange markets.

The Bond Investors have been wiped out. Greece has defaulted in all but name, Greek Bonds have crashed by over 60% as bond investors face as much as 70% loss on the value of their holdings. Greek 2 year bonds are yielding 15% against German 2 year notes at just 0.78%. The only question is how much of these losses will be covered by Germany and France as both fear what would happen to their own imbecilic mega banks that hold over a $1 trillion of PIIGS debt.

The trend is choppy and volatile that looks likely to continue. At present the stock market uptrend remains in tact, time is running out for the rally. If this global stock market rally was driven by liquidity — and I really think it was — the drying up of global liquidity should be seen as a clear warning sign. And I expect the market to top out during the coming months.

-JK, Lead Technical Analyst, SLT