9 December 2011

ECB lowers interest rates down to 25 basis points to 1.0% vs 1.25% Previous Inflation is likely to stay above 2% for several months to come, before declining to below 2%. The intensified financial market tensions are continuing to dampen economic activity in the euro area and the outlook remains subject to high uncertainty and substantial downside risks. In such an environment, cost, wage and price pressures in the euro area should remain modest over the policy-relevant horizon. At the same time, the underlying pace of monetary expansion remains moderate. Overall, it is essential for monetary policy to maintain price stability over the medium term, thereby ensuring a firm anchoring of inflation expectations in the euro area in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. TECHNICAL ANALYSIS (NIFTY) after a steep fall of over a 150 points of the Nifty, our recommendation :- is building long positions with maintaining a stop loss of 4934 targeting 4980 23.6% Fibonacci retracement and 5008 38.2% Reversal levels. A breach of the 5050 level in the Nifty will bring way towards 5150, pivot level lies at 5032. Technical Analysis and Stock picks for the 9th December 2011 1) Buy Reliance Industries Above Rs.778, with targets of Rs.800. Maintain a Stop loss of Rs.777. 2) Buy Dish TV with targets of Rs.68 (December Futures only) 3) Buy Dabur with targets of Rs.101, Maintain Stop loss of 96 4) Sell Reliance Infra below 394 with targets of 385. ------------------------------------------------------------------------------------------------------------------