DAILY REPORT FOR 21 NOVEMBER, 2006
NIFTY: - Open 3853 High 3867 Low 3794 Close 3856
Supp 3838/3820/3795 Res 3885/3915/3940
20 EMA 3794, 50 EMA 3664, 100 EMA 3512
P/E 20.67 P/B 4.95 Adv 17 Dec 33 Vol Rs 9628.51 Crs
SENSEX: - Open 13391 High 13463 Low 13200 Close 13431
20 EMA 13160, 50 EMA 12673, 100 EMA 12090
Supp 13360/13320/13260 Res 13530/13590/13630
What happened yesterday:-
Markets opened lower on negative global cues. We saw a large bit of selling in 2nd hour of trading. But huge buying took place after 2’O clock and we ended 3 points up on Nifty. At one point of time we were down 59 points on Nifty and 229 points on Sensex. Bharti, Jetairways, HDFC, Infosys gained smartly whereas ACC, HDFC Bank, Gail fell almost 3 % each. The recovery was led by Reliance Inds and ICICIBank which recovered well from lows.
What shall we witness today:-
Though yesterday’s sharp initial fall suggested some trend-deterioration, we managed to close above 3825. That looks as a bullish signal. From here, we should at least touch 3885-3900 levels. A new huge rally is expected if we manage to sustain above 3820 after an hour or so today. There is much news about Reliance group stocks. So Reliance Industries and other reliance stocks should remain active today and that can take markets up further up to 3950-3980 also in coming days.
Where’s the money:-
Tata Steel(462):- The stock has fallen almost 15% from its recent peak at 548 to yesterday’s low of 458. The stock can be bought with 3 month perspective and can give 10-15% upside from these levels.
TCS(1118):- Supp 1108 Buy with SL of 1098 for target of 1135/1155
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.