Friday, December 01, 2006


NIFTY: - Open 3929 High 3973 Low 3929 Close 3955

Supp 3930/3905/3885 Res 3980/3998/4020

SENSEX: - Open 13631 High 13745 Low 13631 Close 13696

Supp 13630/13560/13520 Res 13750/13820/13870

What happened Yesterday:-

Markets opened very strong as expected but there wasn’t much activity intraday. The major indices tested lows around 2.15 pm but recovered in ending hours due to short covering and ended up 26 points on Nifty. GAIL was the highest gainer on Nifty. It gained 4% and saw good buying at closing hours. Other gainers were HDFCBank and tech stocks like TCS, Wipro. Hind Petro, Ranbaxy, BPCL were losers on the Nifty.

What shall we witness on Friday:-

We have come out of F&O pressures for November month and now we should look forward to December series into which good roll-over has already taken place. Now we should see exactly what lies ahead as we won’t have repercussions of F&O unwinding. Sensex and Nifty are not participating in good rallies even if global markets are performing well from last 2 days. That may be a cause of concern on the index front but stock-specific action will continue. Cash stocks should see good action as people having nifty-based positions may shift to cash stocks on account of uncertainty about the Index. Being stock-specific is advised.
Stocks like Ceat, Aurobindo Pharma, Thermax, Larsen & Toubro look good.

Where’s the money:-

BHEL(2506):- Support 2490 Buy with SL 2468 for target of 2530/2550.

Ceat(128):- Buy given around 120 last week for target of 140. Now after reaching target of 140, it has corrected to 126. Here we can buy again with SL of 117 for target of 158-162. Mid term target can be around 180 also.

Thermax(381):- Buy for target of 410/450 Support 373/365

Atul(132):- Buy with SL of 122 and target 155-160.

NTPC(147):- Buy with SL 144 for target of 149/152

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.

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