Week Ended May 9 , 2008.

Dear Investor,

It proved to be a stumbling week for the Indian stock markets leaving the markets gasping for breath. The Sensex lost 863.05 points or 4.9% to 16,737.07 in the week ended 9 May 2008. The Nifty fell 245.6 points or 4.69% to 4,982.60 in the week.. The wholesale price index was 7.61 % to the previous week’s 7.57%. Rising global food prices are still a concern. Inflation remained a concern with the Government and the policy makers are trying their level best to curb inflation even forcing measures down the throat of the corporate world in the name of mutual understanding. Indian steel makers agreed to cut prices in government’s efforts to rein in inflation. The public and private steel makers said they would cut the price of long products used in construction by Rs 2,000 a tonne and that of flat products by Rs 4,000 a tonne. They plan to hold the price changes for the next three months. Also, Finance Minister said the government has asked cement companies to reduce prices to curb inflation. The market regulator SEBI on 5 May 2008 relaxed margining in the cash market segment which it called as an initial step towards cross margining in the cash market and futures segment. Cross margin facility will be available in case where a market participant has a position in the cash market with an off-setting stock futures position in the derivatives segment. Cross margining benefit will be initially available for only institutional investors. Meanwhile globally, the focus has been more on the rising Food and Oil prices. Crude oil jumped to highs of 126$ a barrel. We feel that unless crude crosses the 150 mark, there is no immediate cause for concern.

***Free Tips with the NEWSLETTER for short to medium term.

***Buy RPL 177-182. Accumulate. Target1 221. Target2 275.

***Buy Sterlite Biotech 193-196. Target 225.

***Buy Shanti Gears 60-65.Target 88.

Visit : www.nsestocktips.com for Intra day picks during market hours.

Our Viewpoint: People have started to forget again that there are crashes in the markets too and lots of wealth is eroded in just a few minutes. Markets crash only when one least expects them too. This week gave an ample example of that. We feel that the Global bull markets to continue with corrections that may be steep but in the end as long as the development and growth is in place, we will continue to do well. We don’t feel that there is a liquidity pressure in the markets. Its just that the investors have got edgy with the downtrend in the global markets. One has to keep faith to create wealth. The key data which the market will be eyeing at the start of the week is industrial production data for March 2008 due on Monday 12 May 2008. The market will also track global equities in the absence of major domestic trigger.

Is it the right time to invest in these volatile times? Yes, Definitely. From an investor’s point of view , every decline is an opportunity to get back into the markets. The one’s who missed the bus last time can jump on the band wagon provided they do it for a long term rather than look for a short term money making opportunity. The sector specific and stock specific stories will continue to blossom irrespective of the so called BULL or the BEAR market. Money is made in both forms of the markets if one remains invested for a longer duration.

Our Economy is still strong and hiccups like inflation; policy shifts etc are a matter of short term concern which should not bother the genuine investor.

Technically:

The Markets had negative technical break outs this week. Technically, the support for the Sensex is at 16500 and 15800 whereas the resistance to the up move at 17100 and 17905.The support for the Nifty is at 4920 and 4685 and resistance to the up move at 5385 and 5401.

Regards

Team

NSESTOCKTIPS

Our investors have to follow our 7 rules in order to make good profits.

1. Allocate not more than 25% of your trading capital for each day trading call

2. One must choose to trade either intraday or delivery as per his risk profile and definitely adhere to strict stop losses provided.

3. One should not allocate more than 25% of his trading capital for each delivery based trade.

4. Distinguish between stocks for delivery and trading. We specifically mention it.

5. Never average in a day trade. You will lose more often than you win.

6: Don’t trade in the first 10 minutes of opening bell for Intraday unless you have BTST (Buy today sell tomorrow) call.

7. Wait for your trade initiating prices. Patience is a Virtue.

Adhere to strict stop Losses in order to safeguard your interests. For more stock specific buy and sell, join our paid service.

www.nsestocktips.com

Disclaimer:

While this section spares no effort to come out with market calls, it is made clear that all these calls are given based on information collected at that specific point of time. Subscribers are advised to keep in mind the uncertainty of the market and use their own discretion in exercising their preferences. Nobody from Nsestockstips.com can be held legally or otherwise responsible for any losses or damages the subscribers may incur acting upon the recommendations made in this section.