TANMAY OBSERVES!

DAILY REPORT FOR 5 DECEMBER, 2006

NIFTY: - Open 4002 High 4015 Low 3992 Close 4001

Supp 3988/3974/3960 Res 4016/4028/4035

SENSEX: - Open 13847 High 13913 Low 13829 Close 13874

Supp 13825/13780/13740 Res 13920/13960/13995

What happened on Monday:-

Markets opened firm but stayed almost sideways the whole day for lack of strong buying in heavyweight stocks. Finally we finished 29 pts up on Sensex. There were some smart movers like Tata Motors, ACC. They gained 4 % each. Other major gainers on Nifty were PNB, L&T and BHEL. Jet Airways, HDFC Bank, Satyam computers lost some ground. We closed above 4000 for the first time ever in Nifty.

What shall we witness on Tuesday:-

Index heavyweight stocks like Reliance and SBI didn’t see much activity yesterday and that is why we saw markets trading in a narrow range. Global Cues are good. US Markets closed very positively yesterday. So we should have strong opening in our markets. IT, Banking stocks and auto stocks have done their bit and now it should be turn of other heavyweights like Reliance, ONGC, ITC to catch up in the rally. If they perform, we will see index going to new highs. We will see new highs if we sustain above 4003 today. From banking sector, Bank of Baroda has performed well and it looks like we can book some profits in that.Sugar stocks have fallen very sharply in last 1-2 months. They look like bottoming out on charts.

Where’s the money:-

Dishman Pharma(231):- The stock breaks out above 235 and can target 260-265 in 3-4 days. Support exists at 228.

Tata Tea(754):- Buy around 745 with SL below 732 and target 780-785.

L&T (1420):- The stock looks very good on charts. It can target 1550-1600 levels in short term.

Bharti Shipyard(319):- The stock looks like bottoming out and we can buy for short term. Target should be 354-362. Stop loss can be kept below 310.

MPhasis BFL(267):- Buy with SL below 254 and target 279/292. It can target the said levels in 1-2 weeks time.

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.