Monday, September 17, 2007

DAILY REPORT FOR 17 SEPTEMBER, 2007

NIFTY: - Open 4530 High 4582 Low 4508 Close 4518 (-10 points)

P/E 20.45 P/B 5.03 Adv 16 Dec 34

Supp 4505/4485/4445 Res 4535/4556/4585

SENSEX: - Open 15713 High 15824 Low 15568 Close 15603 (-10 pts)

Supp 15560/15480/15350 Res 15670/15730/15870

Flat closing after a roaring start:-

· Positive global cues gave us a strong opening but the party didn’t last for long. Sensex topped out at 15824 and gave sharp correction as profit-booking was witnessed in heavyweights like SBI and Reliance.

· Volumes were Rs 12509 Cr in spot market. F&O Vol Rs 47177 Cr.

· Breadth was positive but turned negative in late trade– BSE Adv 1107 Dec 1852 Unch 66 NSE Adv 310 Dec 772 Unch 20

· FIIs bought Rs 1286 Cr Equity in Cash Market, Domestic Institutions Net Sellers Rs 260 Cr; FIIs bought Rs 407 Cr in Index Fut and sold Rs 90 Cr Stock Futures.

· Some stocks did gain handsomely. Alok Inds was up 5%. FDC was up more than 9%.

Top Gainers: - Sterl Inds, ICICI Bank, HDFC Bank, ITC, L&T

Top Losers: - Maruti, ACC, HCL Tech, Cipla, GAIL

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

Outlook for Monday-

· Nifty breached the resistance around 4530-4540 but could not sustain and we lost the intraday gains on Friday. But stock-specific action continued.

· Major support levels are 4424 and 4445. As long as we maintain above them, bulls don’t have much to worry.

· BSE Midcap, BSE Smallcap and NSE Midcap have touched all-time highs whereas Nifty and Sensex fail to do so. Clearly the major market action is taking place in mid-cap and small-cap stocks. But those are mostly momentum stocks and one has to deal in them with speculative mindset as those same stocks can destroy great wealth in times of deep corrections, not to regain in quick time.

· Bata (175) looks like broken out and it can target 240-250 in med-term.

· Biocon, Dr Reddy, Renuka Sug, Nitin Fire look good on graph and one can buy them for short-term gains.

(Keep SL in short-term trades)


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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