Wednesday, September 26, 2007

DAILY REPORT FOR 26 SEPTEMBER, 2007

NIFTY: - Open 4939 High 4953 Low 4878 Close 4938 (+6 points)

P/E 22.21 P/B 5.27 Adv 27 Dec 23

Supp 4920/4890/4875 Res 4965/4985/5005

SENSEX: - Open 16890 High 16928 Low 16676 Close 16899 (+53 pts)

Supp 16830/16770/16670 Res 16940/16990/17080

What happened yesterday:-

· Nifty consolidated between positive and negative territory and finally we could close 6 points up.

· Volumes were lower at Rs 17805 Cr in spot market and F&O Vol Rs 83677 Cr.

· Breadth was negative but better than Friday– BSE Adv 1198 Dec 1770 Unch 64 NSE Adv 412 Dec 672 Unch 25

· FIIs are pumping money everyday. They bought Rs 1496 Cr Equity in Cash Market whereas they bought Rs 628 Cr in Index Fut. They continue to hedge with selling Rs 742 Cr in stock futures. Domestic Institutions Net Sellers Rs 516 Cr in cash market.

· Realty stocks corrected after a decent run-up in recent past. Akruti, Unitech, Peninsula were down more than 4% each.

Top Gainers: - BPCL, HDFC Bank, Hind Petro, Hindalco, Bharti Airtel

Top Losers: - RPL, GAIL, Hero Honda, M&M, PNB

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

Outlook for Wednesday:-

· We are near psychological levels of 17000 on the Sensex and 5000 on the Nifty. We have to see whether those will be achieved in a day or two. This rally has been led by Reliance group stocks to a large extent and if other stocks don’t outperform when Reliance stocks start correcting, we may have a good downfall in the indices.

· Tech stocks are near good support levels and some upside can be possible from current levels. But as market can be volatile because of F&O expiry ahead, buying in cash is only advised.

· 4965 is good resistance, which if not crossed, may give way to some correction. 4850 and 4770 should provide support.

· Suzlon (1440):- Buy near 1390-1410. The stock can target 1550-1570 in 2-3 weeks.

· HCL Tech (280):- Buy with SL below 270 (Closing basis) for target of 310-315

(Keep SL in short-term trades)

Wipro bags $130 mn contract from Thames Water http://economictimes.indiatimes.com/Wipro_bags_130_mn_contract_from_Thames_Water/articleshow/2403130.cms

$38 bn deals set to knock on IT doors http://economictimes.indiatimes.com/IT_bets_big_on_38_bn_IM_deals_set_for_renewal/articleshow/2403139.cms

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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