Tuesday, September 18, 2007


NIFTY: - Open 4518 High 4549 Low 4482 Close 4494 (-24 points)

P/E 20.34 P/B 5.01 Adv 19 Dec 31

Supp 4480/4445/4424 Res 4525/4546/4585

SENSEX: - Open 15664 High 15726 Low 15467 Close 15504 (-99 pts)

Supp 15455/15350/15200 Res 15570/16680/15820

Some anxiety before the Fed meet:-

· The opening was a bit bullish but early gains were given up as investors took a cautious stance going into the FOMC meeting on 18-Sep-2007.

· Volumes were lower at Rs 9395 Cr in spot market and F&O Vol Rs 35768 Cr as market participation was low.

· Breadth was somewhat positive– BSE Adv 1509 Dec 1444 Unch 75 NSE Adv 517 Dec 551 Unch 35

· FIIs bought Rs 94 Cr Equity in Cash Market, Domestic Institutions Net Sellers Rs 140 Cr; FIIs sold Rs 1139 Cr in Index and Stock futures.

· IT stocks were major losers. Patni, Rolta and TCS were down more than 2% each. But stock-specific action was not missing as Titan, GMDC, Adani Enter, Century Enka were among top gainers.

Top Gainers: - Rel Energy, Hind Unilever, Suzlon, Zee Enter, MTNL

Top Losers: - TCS, RCom, HDFC, Bharti Airtel, Satyam Comp

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

Outlook for Tuesday-

· American markets were flattish just ahead of the Fed meet today. Asian markets open lower. A rate-cut from the FOMC is expected unanimously but the world markets seem to have discounted the same.

· Crude Oil touches $81 mark, a new all time high for the commodity.

· Indices have remained sluggish in recent past and a strong move is awaited.

· Nagarjuna Construction and Hindustan Construction look good from Med-term viewpoint and can give 10-15% returns.

· Lupin (592) Buy with SL 570 Target 650-660

· Tube Investment (60.80):- The stock can target 72-74 in a month’s time. SL 57

(Keep SL in short-term trades)

Bernanke's Fed faces a key test http://tinyurl.com/2yzyfp

FII holding doubled to 22% in past six years: Citigroup study http://tinyurl.com/2hxlsq

Indian Hotels buys 10% of Orient Express for $211 mn http://tinyurl.com/2zqxks

Lanco pairs with Gulftainer to bid for Rs900 cr project http://tinyurl.com/ype4pp

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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