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.