NIFTY: - Open 4082 High 4097 Low 4029 Close 4088 (+4 pts)
P/E 19.48 P/B 5.33 Adv 32 Dec 18 Vol Rs 7571 Cr
EMA20 3994 EMA50 3926 EMA100 3879
Supp 4065/4040/4010 Res 4131/4155/4198
SENSEX: - Open 13823 High 13901 Low 13694 Close 13872 (-36 pts)
EMA20 13636 EMA50 13467 EMA100 13349
Supp 13770/13700/13640 Res 14040/14130/14250
Good recovery from support levels in late trade:-
A subdued opening was followed by sideways trend until 1.30 pm. But buying emerged in heavyweights like RCom, Bharti Airtel and selective bank stocks to take us upward towards closing hours. We closed just 36 points down on the Sensex although at one point in time we were down more than 200 points. Hind Lever and ICICI Bank were top losers on results below expectations and equity dilution worries. Bank stocks had a mixed day, but SBI and PNB recovered smartly from lows. Special buying candidates were Tech stocks. Tech Mahindra spurted 7% and Patni 4%. TCS and Infosys also saw good buying interest. Volumes were expectedly lower ahead of a 2-day holiday. Breadth was good.
Adv 635 Dec 407 Unch 32
Top Gainers: - GAIL, RCom, Hero Honda, TCS, Sterlite Industries
Top Losers: - ICICI Bank, Hind Lever, Cipla, Bharti Airtel, BPCL
FII trading activity: - Buy Rs 1330.45 Cr Sell Rs 1770.96 Cr Net Sell Rs 440.51 Cr (Provisional for 30 April 2007)
Indian ADRs: - http://tinyurl.com/33m7dx
Outlook for Thursday:-
We have recovered well on Monday and today global cues are also positive. Market is expected to open positively. Buying will be witnessed in Tech, Cement and selective Auto stocks. Maruti April sales figures are impressive. Tata Motors numbers are also good. So 4-wheeler stocks may see some buying whereas 2-wheelers numbers are not so exciting so they may remain subdued.
Nifty has good support around 4065-4055 breaking which would mean some caution. We will see higher levels as long as we remain above this level.
Results today: -
Century, Century Enka, Colgate, HDFC, IFCI, Orchid Chem, Varun Ship
Catch them falling:-
Dr Reddys Labs (708):- Accumulate the stock for investment purpose for a target of 850-870. Short term players can look for a target of 760-770 with SL below 690.
Short term picks:-
Tata Elxi (317):- Buy between 310 and 314 with SL 300. It should target 350-360.
Tata Chem (218):- 210-213 is a very good support level. Buy for target of 232-236.
Trading Pick:-
SBI (1102):- Buy for target of 1127-1132 intraday. One can keep SL at 1089
BHEL targets seven-fold increase in overseas business http://tinyurl.com/28yeh2
Patel Engg to enter power generation http://tinyurl.com/ywfz37
Inflation to come down soon http://tinyurl.com/2t3maa
Why a strong Rupee is not a threat to IT companies http://tinyurl.com/2ryzhr
Bajaj Auto likely to take up de-merger on May 17 http://tinyurl.com/2namu5
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.
