STABILITY IN MARKETS

As expected, the market was very volatile during the last few days. We expect the volatility to reduce after a couple of days and stability to return to the market. Talwalkars flared up to 204 before falling to 162 and again closing at 180. If u have bought it, hold it for long term as growing awareness for fitness, favourable demographic trend and rising income should be good for the company. Asian Paints and Bajaj Finserv are good medium to long term investments. Intra day traders can buy Aban every day for next 2-3 days. It should give a bounceback.

VOLATILE MARKETS

As expected, the market has fallen. It has opened gap up on Monday. Market is likely to be volatile in this week. Therefore, use declines to square off shorts. Tata Steel and Unitech have fallen substantially. Use the rise to square off Ranbaxy. You can hold on to other positions. Talwalkars has listed at 140 and the CMP is 151. Use every decline to buy the scrip for long term.

Markets in May

Stock market behaves very peculiarly in May. The markets rise/fall every alternate year. The market has risen in May 2005, 2007 and 2009(with one 20% upper circuit) and the market has fallen in May 2004(with one 15% lower circuit), 2006(with one 10% lower circuit) and May 2008. Going with the same trend, the market is likely to fall in May 2010. However, the fall may not be sharp as it is not followed by a strong rally. Therefore, remain cautious and make fresh investments towards the end of the month. HDIL and Aban have broken resistance levels, therefore square off the position. Tata Steel has fallen sharply, hold the short position for further gains. Do not square off other positions.

May picks

Buy Educomp, HDIL, Renuka futures. Short Sintex, SBI and Yes Bank futures. Buy United Spirits and Sesa Goa on declines. Book profit in Insecticides.