Monday, October 08, 2007


NIFTY: - Open 5208 High 5248 Low 5164 Close 5185 (-23 points)

P/E 23.62 P/B 5.66 Adv 16 Dec 34

Supp 5160/5115/5030 Res 5210/5230/5265

SENSEX: - Open 17831 High 17979 Low 17708 Close 17773 (-3 pts)

Supp 17700/17550/17280 Res 17900/18090/18180

Supply from higher levels:-

· Opening was good as Power Grid made a sparkling debut but banks weighed down on the market. Finally we closed down by 3 points on the Sensex.

· Volumes were at Rs 20231 Cr in spot market and F&O Vol at Rs 64188 Cr.

· Breadth was quite negative in recent past – BSE Adv 1071 Dec 1900 Unch 69 NSE Adv 340 Dec 748 Unch 24

· FIIs bought Rs 948 Cr in Cash Market. Domestic Institutional Investors sold Rs 201 Cr. In Derivatives market, FIIs bought Rs 692 Cr in Index Fut & Options. They sold Rs 667 Cr in Stock Futures.

· Capital Goods were smart gainers. BHEL and L&T shot up. Banks corrected. Allahabad Bank, BoB, Federal Bank, IOB, Union Bank, SBI lost around 2-3% each.

Top Gainers: - L&T, Bharti Airtel, BHEL, Reliance, Glaxo

Top Losers: - NTPC, Tata Power, Hindalco, ITC, Tata Steel

Indian ADRs: -

Outlook for Monday:-

· We have had a 4200 point rally on the Sensex in last one and half months. Next 5-6 days should be crucial for the markets as this is the time when bulls need to show their tenacity. 18000-mark is very near and if not achieved in a day or two, we may see some correction happening.

· For today’s trading, consider 5160 as a good support and below that we may see 5115 intraday. 5210 should act as a resistance in intraday trade. One should be very stock-specific at this level and should think of booking some profits here.

· Tech stocks should remain active as Infosys results are expected this week. Also gains for Nasdaq on Friday should make sentiment a bit positive for them.

· Patni (458):- Buy with SL 433 Target 510-520

(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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