Friday, August 17, 2007


NIFTY: - Open 4366 High 4366 Low 4171 Close 4178 (-192 pts)

P/E 18.90 P/B 4.92 Adv 2 Dec 48

Supp 4100/4070/4000 Res 4250/4280/4310

SENSEX: - Open 14585 High 14585 Low 14345 Close 14358 (-642 pts)

Supp 14320/14200/14020 Res 14430/14510/14670

Finally the storm:-

  • Sensex crashed and lost 642 points on Thursday
  • FIIs fling Indian equities as they sold Rs 3108 Cr in cash market. Domestic Institutions remained buyers to the tune of Rs 1398 Cr. FIIs were sellers in the Derivatives market too as they sold Rs 3348 Cr in F&O.
  • Metals lost the most as Tata steel and Sterlite were biggest losers. Just 2 stocks could keep their heads up on the Nifty.
  • Some stocks like Bongaigaon Ref, Ispat Industries showed strength and stayed up.
  • Volumes were large at Rs 11791 Cr in spot market. F&O Vol Rs 46447 Cr
  • Breadth was quite negative- NSE Adv 138 Dec 983 Unch 13 BSE Adv 808 Dec 1894 Unch 39

Top Gainers: - GAIL, NALCO

Top Losers: - Tata Steel, VSNL, Sterlite Inds, Suzlon, Bharti Airtel

Indian ADRs: -

Outlook for Friday:-

  • A dramatic reversal in the Dow as it recovered around 340 points from day-lows on rumours that the Fed may cut interest rates. Indian ADRs were down quite a bit but recovered somewhat in late trade with the rally in Dow Jones
  • Asian markets have opened in the negative
  • Nifty can go below 4000 levels in this fall but has good support at 4070-4100 and as long as this is sustained, hopes of pullback won’t die.
  • The bounce, if happens, will be pretty fast. Cement stocks showed strength yesterday. We have to see if they can lead the bounce-back.
  • Rupee slumped 1.5% as investors cut their exposure to India, Tech stocks should see some buying

U.S. Stocks Climb, Led by Banks; S&P 500 Recovers From Drop

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.

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