Monday, August 20, 2007


NIFTY: - Open 4171 High 4171 Low 4002 Close 4108 (-70 pts)

P/E 18.58 P/B 4.83 Adv 10 Dec 40

Supp 4088/4055/4000 Res 4175/4240/4268

SENSEX: - Open 14309 High 14319 Low 13779 Close 14141 (-216 pts)

Supp 14070/13980/13770 Res 14460/14600/14710

Good recovery from lows:-

· Sensex goes below 14000 but closes above it. Nifty takes support at psychological level of 4000 and closes at 4108, down 70 points.

· FIIs continue to sell in Indian equity markets as they sold Rs 3535 Cr in cash market. Domestic Institutions remained buyers to the tune of Rs 1944 Cr. FIIs were sellers in the Derivatives market too as they sold Rs 1270 Cr in F&O.

· Metals stay in downtrend as Sterlite Inds and Tata Steel were major losers.

· Stocks like Sun Pharma, Siemens bounced from major support levels. Some stocks saw huge buying. Nagarjuna Fert was up 18%, Indus Ind bank and Chambal Fert were up more than 6% each.

· Volumes were monumental at Rs 15287 Cr in spot market. F&O Vol Rs 64879 Cr

· Breadth was negative- NSE Adv 224 Dec 886 Unch 20 BSE Adv 854 Dec 1847 Unch 31

Top Gainers: - Sun Pharma, Siemens, Wipro, IPCL, Dabur

Top Losers: - Sterlite Inds, Hind Petro, Satyam Comp, Tata Steel, GAIL

Indian ADRs: -

Outlook for Monday:-

· US Markets see massive rally on account of rate cut from the Federal Reserve. Indian ADRs see huge buying as ICICI Bank gains 12%, HDFC Bank and VSNL each up around 8%

· Asian markets trading in big gains

· Markets to open big gap-up on positive global cues but rally looks short-lived at this juncture.

· The political uncertainty between Congress and the Left can make market-players nervous about the economic prospects of this country.

· Cement stocks should perform well in this pullback rally. India Cement shows good upside.

· The bounce-back should take us towards 4320-4350 where resistance can come

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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