Monday, September 24, 2007

DAILY REPORT FOR 24 SEPTEMBER, 2007

NIFTY: - Open 4752 High 4855 Low 4733 Close 4837 (+90 points)

P/E 21.89 P/B 5.39 Adv 36 Dec 14

Supp 4810/4760/4730 Res 4880/4905/4935

SENSEX: - Open 16352 High 16616 Low 16308 Close 16564 (+216 pts)

Supp 16500/13370/16300 Res 16620/16675/16800

Reliance stocks pull up the sentiment:-

· After a hesitating start to the day, bulls took absolute control of the market and Sensex shot up by another 216 points. Week-on-week Sensex gained 6%.

· Volumes were very good at Rs 16687 Cr in spot market and F&O Vol Rs 75928 Cr.

· Breadth was a bit negative– BSE Adv 1282 Dec 1692 Unch 57 NSE Adv 456 Dec 623 Unch 28

· FIIs bought Rs 762 Cr Equity in Cash Market, Domestic Institutions Net Sellers Rs 277 Cr; FIIs bought Rs 1462 Cr in Index and sold Rs 416 Cr in Stock futures.

· Reliance group stocks are defying rules of gravity day in and day out. Reliance Industries itself was up around 4%. RNRL spurted 35%. RPL too continued the upward journey with a gain of 11%.

Top Gainers: - RPL, GAIL, Reliance, Hero Honda, IPCL

Top Losers: - Suzlon, Sun Pharma, Zee Enter, ITC, Cipla

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

Outlook for Monday:-

· Though vertical rallies do occur, we have to keep in mind that intraday corrections are also practically possible things. Good weekly support for the Nifty is 4765 and 4715.

· Indices are hitting new peaks everyday and various sectors which were laggards have started performing. Instead of chasing hot stocks which are already at all time highs; investors should look for opportunities in those sectors which have not performed well. FMCG and Auto industry stocks have been underperformers. They have again begun rallying with the gaining markets. Hind Unilever and Maruti can see more gains. Tech stocks are near yearly lows. TCS and Satyam are near their crucial support levels and investors can look at accumulating these stocks slowly.

· Pharmaceutical stocks like Biocon and Ranbaxy show strength on charts. One should buy them for short to medium term gains.

· Tata Chem (277):- The stock has broken out and one should buy it for medium term. It can return 15-20% from current levels also.

· 3I Infotech (145):- The stock can target 160-163 in short term.

(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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