Thursday, October 04, 2007


NIFTY: - Open 5069 High 5261 Low 5034 Close 5210 (+142 points)

P/E 23.43 P/B 5.56 Adv 36 Dec 14

Supp 5160/5100/5034 Res 5230/5265/5310

SENSEX: - Open 17467 High 17953 Low 17288 Close 17847 (+518 pts)

Supp 17700/17580/17500 Res 17930/18050/18120

Bulls shun first assault from bears:-

· Sensex opened big gap-up and was up more than 600 points. But bears made their presence felt as we lost all the gains in mid-trade. Bulls again came back with Infosys leading and we closed up by 518 points. Power stocks were major gainers.

· Volumes were gigantic at Rs 24842 Cr in spot market and F&O Vol at Rs 100056 Cr.

· Breadth was a bit negative – BSE Adv 1223 Dec 1761 Unch 53 NSE Adv 387 Dec 699 Unch 25

· FIIs bought massive Rs 2662 Cr in Cash Market and Domestic Institutional Investors sold Rs 221 Cr. In Derivatives market, FIIs bought Rs 1621 Cr in Index Fut & Options. They bought Rs 820 Cr in Stock Futures.

· Tech stocks rallied. Infosys gained 5%, TCS 4%, HCL Tech and Wipro were up 3%. Some realty stocks surged as DLF was up 16% and Akruti Nirman 10%.

Top Gainers: - Tata Power, Rel Energy, Suzlon, Infosys, NTPC

Top Losers: - GAIL, MTNL, Ambuja Cem, Cipla, Hind Unilever

Indian ADRs: -

Outlook for Thursday:-

· We are very near the psychological mark of 18000 on the Sensex. If one assumes that market has to go up everyday, yesterday was an example that it’s not that easy. Volatility was at its very best yesterday and market players need to keep in mind that such times may come more frequently in near future.

· Though yesterday’s recovery was breath-taking, breadth remained negative. A fall may be around the corner, but timing it is a difficult thing. Buying only in cash is advised. Pharmaceutical and Tech stocks are showing good consolidations and may bounce back on expectations of good results.

· Dow Jones closes down by 79 points. MTNL, HDFC Bank and ICICI Bank were losers among Indian ADRs. Asian markets have opened in the negative. So negative global markets may weigh down our markets initially.

· Hero Honda (735):- This stock has broken out and can target well above 800 levels. Buy with SL at 710.

· Nalco (290):- Buy for target of 335-340. Keep SL at 275.

(Keep SL in short-term trades)

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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