Inflation Rises To 12.01% Highest In 13 Years,Markets To Remain Down Today:Intra Day Trading Tips For Aug 8

08 Aug

Posted by Shyam as Inflation, IntraDay Calls

For the week ending July 26th,2008 the inflation figure has risen to 12.01% as against the inflation figures of 11.98% last time. It is now the highest figures in the last 13 years. The data which came just yesterday had made the job of RBI even tougher which recently announced monetary measures to contain inflation and boost economic growth. Thishas also forced RBI to raise the year end inflation target of 5.5% to 7% and GDP growth of 8% from earlier 8.5%. So in short we can see that the rising prices will have a big impact on the overall growth of the economy in general.

We saw a huge volatile market yesterday in Indian share markets. Sensex gained 44 points to close at 15,117 levels and nifty closed the day at 4,524 levels gaining just 6 points. Both sensex and nifty are at important levels now. Due to profit booking at higher levels, the markets closed the day almost flat yesterday. The US markets has also closed in deep red by Dow and Nasdaq losing 1.93% and 0.95% yesterday due to worries on the financial sector. The crude oil prices are also hovering around $120/barrel currently.

Reacting to this the Asian markets have started the day down with Nikkei-225 currently trading 0.56% down and Hang Seng down by 0.5%. We should expect a gap down opening today due to this and also the rising inflation rates. So keep booking profits at higher levels and also watch for good opportunities at lower levels. Every fall brings some opportunity with itself. Hence always look out for them.

The news on BSNL proposed IPO is also hotting up nowadays with a proposal of a $10 billion initial public offering with a dilution of 10% of the company. And roll out of 3-G services are also having good impact on telecom stocks. Currently Bharti Airtel is the best positioned stock to take the advantage of the situation.

So lets have a look at some intra day trading tips for today:Adlabs(cmp 551),Sterlite Industries(cmp 614), Tata Motors(cmp 444),MTNL(cmp 110),PFC(Cmp 146),Pantaloon Retail(cmp 378),M&M(cmp 576),Satyam (Cmp 417),Cipla(cmp 227).