Monday, October 15, 2007


NIFTY: - Open 5525 High 5549 Low 5402 Close 5428 (-96 points)

P/E 24.67 P/B 5.93 Adv 7 Dec 41 Unch 1

Supp 5390/5340/5260 Res 5465/5520/5550

SENSEX: - Open 18794 High 18844 Low 18336 Close 18419 (-395 pts)

Supp 18250/18050/17880 Res 18530/18660/18850

5550 making nervous:-

· Markets opened flat and went up but the 3-day rally was stopped when supply was found at 5550 level. We crashed almost 150 points intraday on the Nifty and closed 96 down. Reliance Industries and SBI pulled down the market largely.

· Volumes were massive at Rs 22767 Cr in spot market and F&O Vol at Rs 90419 Cr.

· Breadth was quite negative– BSE Adv 1182 Dec 1793 Unch 71 NSE Adv 324 Dec 764 Unch 27

· FII buying Rs 315 Cr in Cash market. It is smallish compared to recent past. Domestic Inst Inv sold heavily Rs 883 Cr. FIIs sold Rs 645 Cr in Index Fut where as they were small buyers Rs 10 Cr in Index Opt. Stock Futures selling was large at Rs 716 Cr.

Top Gainers: - ONGC, Rel Energy, Hindalco, M&M, GAIL

Top Losers: - Suzlon, SBI, Tata Power, L&T, VSNL

Indian ADRs: -

Outlook for Monday:-

· We could not breach 5550 on the upside on Friday. This week it seems that we will move between 5500 to 5250 range.

· 5190 should provide a good support in a sharp correction. As results start coming in, stock-specific movement should be visible. 5600 should be the resistance when we break 5550.

· VSNL (524):- The stock has broken out and can target above 600 levels. Buy with SL below 490.

(Keep SL in short-term trades)

Results today – Axis Bank, BOC, ETC, IFCI, Indian Bank, Jaiprakash Asso, Orbit Corp, Petronet LNG, RIIL, Sasken Comm, TCS, Uco Bank, Welspun Guj

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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