Friday, October 19, 2007


NIFTY: - Open 5551 High 5736 Low 5269 Close 5351 (-208 points)

P/E 24.33 P/B 5.60 Adv 10 Dec 40

Supp 5240/5105/5040 Res 5450/5550/5640

SENSEX: - Open 18827 High 19198 Low 17771 Close 17998 (-717 pts)

Supp 17700/17480/17280 Res 18110/18330/18650

Nobody, but supply overpowering demand, to blame for the fall:-

· If we recovered almost 1500 points on Wednesday, yesterday was a bear-party as they took 1400 points off the Sensex intraday. The closing was down 717 points as Banks, Metals and Reliance group stocks crashed heavily. Tech stocks didn’t see much of selling.

· Volumes were at all time high - Rs 26030 Cr in spot market and F&O Vol at Rs 110563 Cr.

· Breadth was negative – BSE Adv 1247 Dec 1737 Unch 67 NSE Adv 367 Dec 734 Unch 19

· FIIs look like trimming their exposure as they sold Rs 1130 Cr in spot market whereas Domestic Institutions bought Rs 96 Cr. Foreign funds sold Rs 2356 Cr in Index Futures. They were net sellers in Stock Fut too Rs 569 Cr.

Top Gainers: - Sun Pharma, TCS, Cipla, Satyam Comp, MTNL

Top Losers: - ACC, Rel Energy, SBI, Bharti Airtel, Tata Power

Indian ADRs: -

Outlook for Friday:-

· Yesterday’s sell-off indicates that we lack buying depth in the market. First blow came as there were rumours of NSE hiking F&O margins. But even if NSE denied the same, the fall accentuated after that.

· Most of the supply yesterday must have come from stuck intraday positions and today some bounce can happen. 5450 and 5550 are resistance for today. If we can not cross them, again correction will set in.

· If we close below 5240 on the Nifty, 4800-4900 levels may be tested. 5000-5050 may provide some support while cracking.

· Wipro and Tech Mahindra results will be out today. More buying can be seen in Tech stocks. Satyam and TCS look good.

(Keep SL in short-term trades)

Results today – Ambuja Cem, Asian Paints, Bajaj Auto, CMC, Emco, GE Ship, Geometric Soft, Grindwell Norton, GTL Infra, ICICI Bank, Tech Mah, Uttam Galva, Welspun India, Wipro

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.

1 comment:

Anonymous said...

Tanman Bhai, Where is your newsletter for 22 October? You are not being uptodate. Please do post your newsletters regularly for benefit of weak investors.