Wednesday, October 17, 2007


NIFTY: - Open 5670 High 5708 Low 5578 Close 5668 (-2 points)

P/E 25.71 P/B 5.90 Adv 20 Dec 30

Supp 5510/5400/5215 Res 5680/5725/5785

SENSEX: - Open 19102 High 19174 Low 18777 Close 19051 (-6 pts)

Supp 18300/18000/17285 Res 19200/19400/19550

Calmness after a massive run-up:-

· Indices opened flat and then sold off as we tested 5578 intraday on the Nifty. Finally we could close 2 points down. Stock-specific movement was prominently visible.

· Volumes shot up - Rs 23315 Cr in spot market and F&O Vol at Rs 90751 Cr.

· Breadth turned negative – BSE Adv 1345 Dec 1629 Unch 73 NSE Adv 453 Dec 633 Unch 29

· FII buying has been massive in recent past but yesterday they sold Rs 234 Cr in Spot market. Domestic institutions sold just Rs 10 Cr. FII selling in F&O was also huge at Rs 2811 Cr.

· Bank stocks were gainers. Allahabad Bank, Axis Bank and ICICI Bank were big movers.

Top Gainers: - Tata Power, Siemens, ICICI Bank, Hindalco, Rel Energy

Top Losers: - Zee Enter, Infosys, Ster Inds, Hind Unilever, HCL Tech

Indian ADRs: -

Outlook for Wednesday:-

· Markets will react to suggestions on participatory notes by SEBI. Opening will be sharply lower.

· This market has gone from strength to strength with every correction, now we have to see whether today’s morning sell-off is followed by good support. The rally so far has been massive and a correction is welcomed here.

· It is better to be light on positions when politicians are interfering with various statements. One needs to see if market takes support at aforementioned levels and then take a call.

· Crude at $87 is weighing down US markets. Yesterday all Indian ADRs closed quite negative on the back of weak Dow and some effect of SEBI statements too.

(Keep SL in short-term trades)

Results today – Alembic, Allahabad Bank, Essel Prop, GAIL, GDL, HCL Tech, Infotech Enter, KPIT, NDTV, Polaris, Rel Energy, RNRL, Yes Bank

SEBI plans curb on FII participatory notes

SBI may soon get govt nod to raise capital

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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