Thursday, February 15, 2007

DAILY REPORT FOR 15 FEBRUARY, 2007

NIFTY: - Open 4045 High 4057 Low 3965 Close 4047 (dn 3 pts)

P/E 19.47 P/B 5.15 Adv 29 Dec 21 Vol Rs 8879 Cr

EMA20 4103 EMA50 4016 EMA100 3866

Supp 4000/3944/3895 Res 4075/4110/4140

SENSEX: - Open 13990 High 14037 Low 13805 Close 14010 (dn 81 pts)

EMA20 14219 EMA50 13922 EMA100 13383

Supp 13890/13800/13670 Res 14095/14175/14300

What happened on Wednesday:-

Markets opened gap-down in the morning but recovered somewhat during the day. Metal stocks bounced back as Nalco and Hindalco were among highest gainers on the Nifty. Banks faced most of the selling on the back of CRR hike by RBI. Finally we finished where we started.

Top Gainers: - Nalco, MTNL, Bharti Airtel, Hindalco, RCom

Top Losers: - OBC, SBI, HDFC Bank, ICICI Bank, Maruti

FII trading activity: - Buy Rs 2493.37 Cr Sell Rs 2658.01 Cr Net Sell Rs 164.64 Cr (Provisional for 14 February 2007)

Indian ADRs: - http://tinyurl.com/33m7dx

F&O Hints:-

Stocks that added Open Interest: - Guj Amb Cem, Zee Tele, UTI Bank, Ultratech, JSW Steel, Sesa Goa, Karnataka Bank, Maruti, IFCI

Stocks that lost OI: - RPL, Bharti Airtel, Hind Const, Sun TV, Cairn, Kotak Bank, Auro Pharma, Bajaj Hind

Outlook for Thursday:-

We have chased support levels and we have closed well too. The stage is set for a bounce back but for that we require strong buying which is just not emerging from last 4-5 days. We have to cross crucial levels known as resistances; we have to see Up Closings for confirming strength.

There is news in the media that our markets contain money of terrorists. That news can affect the stock markets in a negative way, but the impact may be limited only to small companies as those are the ones which can be manipulated.

US Markets were positive and all ADRs closed very strongly in the upward region. Asian markets are trading firm.

FMCG stocks like Colgate, Hind Lever and ITC continue to look very attractive.

Reliance group stocks have shown strength. So they should move up when we see some recovery. Also IT companies are not much affected by interest rate changes, so they can perform if market is going down only because of interest rate hikes.

Trading Picks:-

BHEL (2320):- Supp is at 2300/2280. Buy for target of 2400

L&T (1614):- Supp 1600/1580. It can target 1650/1685

Indian economy on course http://tinyurl.com/2sf9ms

What makes China tick http://tinyurl.com/3buoaq

Wockhardt to double hospitals http://tinyurl.com/34j2ko

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.