DAILY REPORT FOR 27 NOVEMBER, 2006
NIFTY: - Open 3945 High 3966 Low 3935 Close 3951
Supp 3932/3920/3900 Res 3968/3990/4020
SENSEX: - Open 13670 High 13768 Low 13665 Close 13703
Supp 13640/600/550 Res 13780/13830/13920
What happened on Friday:-
Markets opened flat but remained up almost the whole day. Markets consolidated in a narrow band. Still there was stock-specific action. Zee, Tata steel, Dr Reddy gained by around 2% each. Siemens was the biggest loser on Nifty. It was down 8% as there was news about some embezzlement of money by top officials. The stock fell like mad on Friday on the bad news. But that case is an old case and Siemens India should not get affected much here.
What shall we witness on Monday:-
Markets have consolidated as expected. Market should open very strong as we have seen good amount of consolidation at these levels. We should see good bit of rally from here. With many people short in the markets, the target on Nifty for this week should be 4050-4100. F&O expiry for November month will give upside to this market. We have to buy on dips. There is good rollover in nifty. Weekend pressure also didn’t correct the market. With many people short, we will see huge rally in the markets. Banking and Auto sector will see good buying this week. With China facing aluminium shortage and metal prices shooting up, metal stocks can zoom up. Those stocks have seen good consolidation on charts. They look very good for the next month’s settlement.
Where’s the money:-
Nagarjuna Construction(191.55):- The stock looks good from short term perspective. Buy around 190 with Stop loss below 180 for the target of 220 and more.
ONGC(857):- Buy around 848-852 for target of 865/874 with SL below 840
Tata Motors(826):- Buy with SL of 817 for target of 832/838.
CIPLA(264):- The stock looks very good on charts. It can be bought for long term keeping targets as 425-450.
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.