DAILY REPORT FOR 3 JANUARY, 2007

NIFTY: - Open 3966 High 4017 Low 3965 Close 4007

Supp 3993/3975/3945 Res 4030/4050/4080

SENSEX: - Open 13828 High 13981 Low 13797 Close 13942

Supp 13900/13830/13720 Res 14015/14095/14200

What happened on Tuesday:-

Markets greeted the year 2007 with gains of 155 points on the Sensex. We opened firm and stayed that way all day. There was very good buying in IT and Auto stocks. Smart movers were Satyam Comp, M&M, Bajaj Auto, VSNL and Maruti. Non-index stocks also witnessed very good interest. Nifty once again closed above 4000 yesterday. The only concerning thing was Volumes. They were pretty low as compared to recent past. Though FIIs were net sellers to the tune of Rs 200 Cr(Prov Fig), the gross buy-sell figures were very low.

What shall we witness on Wednesday:-

Previous All time high for Sensex is 14035 and for Nifty it is 4047. We can challenge that in near term. For today, 3987-3992 is good support and we can target 4030-4040 in short term. As volumes are low, stock-specific approach is recommended. We should concentrate on cash stocks.

Where’s the money:-

GIPCL(64) is near a breakout at 65 and can target 73-76 in short term.

Bharti Shipyard(369) It looks like a breakout on charts and it can return 10-12% in weeks to come.

Catch them falling:-

ITC(177) The stock hasn’t performed at all in the recent rally. But it can give good returns from these levels. Buy for investment as well as short term.

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.

DAILY REPORT FOR 2 JANUARY, 2007

NIFTY: - Open 3972 High 3992 Low 3960 Close 3966

Supp 3955/3942/3928 Res 3975/3985/4005

SENSEX: - Open 13873 High 13929 Low 13770 Close 13787

Supp 13730/13670/13570 Res 13830/13890/13980

What happened on Friday:-

Markets opened up but could not hold on to gains and kept moving in Green and Red. Finally we closed down 59 points on the sensex. There were some major gainers like VSNL, ABB. They both witnessed very good buying yesterday. SAIL, M&M and Jet Airways some other smart gainers. Guj Amb Cem, Hind Lever, MTNL were the top losers on the Nifty.

What shall we witness on Tuesday:-

Last week we saw both Sensex and Nifty regaining strength. We closed 315 points up on the sensex on weekly basis. A fall until 3900-3880 should be healthy. We can again look up after chasing those levels. But we should look at stocks more than the index as the action looks concentrated into stocks. This Tuesday is the first trading of calendar year 2007. Oct-Jan Quarter results will be out this month. So it is going to be an action-packed month. Auto numbers should be out in a day or two. So those stocks will be in action. Call rates hit 19% last week. That means Banks are scrambling for cash. This can be a bad news for the banking sector and they may correct on this news.

Where’s the money:-

BPCL (337) The stock should be bought around 328-332 and it can target above 350 levels in short term.

Gesco Corp(878) Very short term traders can think of buying this stock. It can target 930-940 levels. The returns should be in the region of 6-7% in very short term. But keeping own Stop loss is recommended. Support level is at 840-850.

Catch them Falling:-

Tata Motors(900) has given a breakout last week and it should target near 1000 levels very soon.

Punj Lloyd(1032) The stock looks nice on charts. It should accumulated. The target can be around 1200-1250 which converts to 15-20% returns from 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.