DAILY REPORT FOR 20 NOVEMBER, 2006
NIFTY: - Open 3877 High 3892 Low 3835 Close 3853
Supp 3825/3805/3770 Res 3885/3918/3940
20 EMA 3787, 50 EMA 3656, 100 EMA 3505
P/E 20.65 P/B 4.95Adv 14 Dec 36 Vol Rs 8720 Crs
SENSEX: - Open 13678 High 13678 Low 13380 Close 13429
Supp 13380/13300/13230 Res 13510/13590/13680
WHAT HAPPENED ON FRIDAY:-
Markets opened flattish, but saw good selling in mid-hours. In spite of that, we regained some lost ground around late hours and closed 25 points down on Nifty. Oil stocks such as HPCL, BPCL rose more than 4% each. HDFC rose 3%. Approval to Indo-US nuclear deal infused good buying in NTPC.
WHAT SHALL WE WITNESS ON MONDAY:-
Today is a crucial day for the markets. If we do not close below 3825 today, we will see a strong rally in coming days. If we do close below 3825 today, we will have good correction until 3670 at least. Outlook remains bullish until we close below the aforesaid levels.
WHERE’S THE MONEY:-
IOB (117.20) :- The stock looks good for from short term perspective. Supp is at 114 and 109. One should buy around those supports with Stop Loss below 104 and target in the vicinity of 140.
GDL (166):- Buy with SL of 162 for target of 172/178
NALCO (220) :- Buy for medium term for target of around 280. Short term players should keep SL around 212.
SAIL (84.85):- Buy with SL 83 for target of 86.50/88.
TCS(1095) :- The stock should be bought with SL 1075 and target 1125 and 1150.
Wockhardt(403) :- Buy with SL of 397 for target of 408/413
Dr Reddy (736) :- Buy for 6-8 month perspective with target around 900. Short term players may buy around 720 with SL below 700. Long term players can accumulate at these levels also.
Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.