Wednesday, September 19, 2007


NIFTY: - Open 4494 High 4551 Low 4481 Close 4541 (+47 points)

P/E 20.57 P/B 5.06 Adv 41 Dec 9

Supp 4520/4505/4480 Res 4585/4625/4650

SENSEX: - Open 15547 High 15691 Low 15468 Close 15669 (+165 pts)

Supp 15600/15540/15460 Res 15710/15825/15875

Finally a close above 4535:-

· The opening was hesitating but bulls had the battle under control. Banks and Capital Goods stocks pulled up the Sensex by 165 points. SBI was up nearly 3%.

· Volumes were higher at Rs 10933 Cr in spot market and F&O Vol Rs 45069 Cr.

· Breadth too was quite positive– BSE Adv 1921 Dec 1032 Unch 76 NSE Adv 755 Dec 318 Unch 30

· FIIs bought Rs 23 Cr Equity in Cash Market, Domestic Institutions Net Sellers Rs 232 Cr; FIIs sold Rs 799 Cr in Index and Stock futures.

· Non-index stocks saw huge buying. Raymond and Engineers India were up 20% each. Indus Ind, Adani Enter, Dredging Corp gained more than 10%.

Top Gainers: - Nalco, GAIL, ICICI Bank, Dabur, Suzlon

Top Losers: - Cipla, Wipro, Hind Unilever, Dr Reddy, Ster Inds

Indian ADRs: -

Outlook for Wednesday-

· Ben Bernanke and Co cut interest rates by 50 bps and gave a boost to global equity markets. Dow Jones vaulted 335 points after the announcement. Asian markets have opened very strong on that note.

· Our markets are expected to open big gap-up and we can see 4620 on the Nifty in morning trade itself.

· Reliance Industries has led from the front from last many days and now focus should shift slowly towards other heavyweights. SBI and ICICI Bank can outperform.

· Hind Unilever (214) Buy for target 224-227 in a week or two. SL 210 (closing basis)

· Buy Siemens (1384):- The stock can target 1350-1360 in next 2-3 days.

(Keep SL in short-term trades)

Fed cuts rates by a half percentage point

GAIL says to borrow up to $1.72 bln by 2011

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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