Tuesday, October 23, 2007


NIFTY: - Open 5202 High 5247 Low 5070 Close 5184 (-31 points)

P/E 23.28 P/B 5.42 Adv 25 Dec 25

Supp 5160/5130/5050 Res 5270/5330/5400

SENSEX: - Open 17259 High 17704 Low 17171 Close 17613 (+54 pts)

Supp 17500/17370/17000 Res 17750/18000/18190

Banks provide support from lower levels:-

· Markets were sold off in initial trade but recovered as buying was seen in Banks especially ICICI Bank. HDFC was the top gainer.

· Volumes were lower - Rs 15736 Cr in spot market and F&O Vol at Rs 71454 Cr.

· Breadth was flattish– BSE Adv 1480 Dec 1486 Unch 87 NSE Adv 505 Dec 580 Unch 36

· FIIs sold Rs 1290 Cr in Spot Market. Domestic Institutions bought Rs 15 Cr Equity. Derivative Activity was pretty flat from FIIs.

Top Gainers: - HDFC, BPCL, Zee Enter, Ambuja Cem, ICICI Bank

Top Losers: - Bharti Airtel, TCS, SAIL, Nalco, ABB

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

Outlook for Tuesday:-

· Market players were watching 2 events yesterday: - One was SEBI meeting with FIIs and the other was the meeting between Left and the UPA.

· SEBI statements yesterday evening clear the air of confusion for FIIs. P-Note holders should register themselves and come from front door is what SEBI wants. The final decision will come on 25th October as SEBI board is scheduled to meet on that day.

· UPA-Left meeting has been shelved till 15 November. So some uncertainty still remains about the N-Deal.

· As far as markets are concerned, some pullback is expected to happen today as we have tested good support below 5100 on the Nifty. Also 17000 is a good support for the Sensex. This pullback can take us towards 5330 and 5400.

· Sesa Goa, M&M, Ranbaxy, India Cements, Punj Lloyd look good on graph and can be bought for short term. One needs to buy with stop losses as correction may not be over yet.

· IVRCL (440):- Buy around 428-432 for target 475-485.

(Keep SL in short-term trades)

Results today – Agro Tech Foods, Amara Raja, Apollo Hosp, Ashok Ley, BASF, Britannia, Fin Cables, Firstsource Sol, Garden Silk, GlaxoSmithKline, Greenply, GSFC, Guj Alk, HOEC, India Infoline, Indiabulls, Jain Irri, Lumax Auto, Mangalam Cem, MIC Elec, Micro Ink, Mindtree, Mukta Arts, Nalco, Nelco, Pidilite, Provogue, PTC, Punj Tract, Satyam Comp, Seamec, Shree Cem, Shringar Cinema, Subex, Suzlon, WWIL, Wockhardt, Zee Enter

Sebi cleared 16 FII papers today: Damodaran http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=29095

Pharmaceuticals: Demerger of R&D units — a new trend http://www.thehindubusinessline.com/iw/2007/10/22/stories/2007102251191500.htm

N-Deal Talks: UPA, Left to meet again on Nov 16 http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=29093

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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