Tuesday, October 09, 2007


NIFTY: - Open 5186 High 5249 Low 5024 Close 5085 (-100 points)

P/E 23.16 P/B 5.55 Adv 11 Dec 38

Supp 5055/5024/5000 Res 5130/5167/5250

SENSEX: - Open 17901 High 17982 Low 17322 Close 17491 (-281 pts)

Supp 17400/17280/17140 Res 17600/17730/17880

What happened on Monday:-

· Firm opening was followed by selling from higher levels.

· Volumes were at Rs 15996 Cr in spot market and F&O Vol at Rs 69842 Cr.

· Breadth was quite negative in recent past – BSE Adv 621 Dec 2364 Unch 56 NSE Adv 137 Dec 955 Unch 20

· FIIs continue to buy equity. They bought Rs 1459 Cr in cash market in yesterday’s trade even if broader market was down. Domestic Institutions sold Rs 142 Cr. In Derivatives market, FIIs sold Rs 1679 Cr in Index Futures and Options. They bought Stock Futures worth Rs 395 Cr.

· Most of the sectors were down including Banks, Metals but Tech stocks stood out. Patni and Satyam were top gainers in that space.

Top Gainers: - Satyam Comp, VSNL, Wipro, BHEL, Infosys

Top Losers: - Zee Enter, Tata Steel, ACC, RPL, SAIL

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

Outlook for Tuesday:-

· Political uncertainty is not good for markets and that is why we see volatility. One small statement from a minister and we can go deep down and another one can take us to new highs. Traders need to watch markets closely instead of being aggressive for time-being.

· Nifty is moving sideways between 5250 and 5000. Clear trend will emerge only after we breach any of these levels. Stock-specific movement should continue until we are moving sideways.

· Maruti, M&M, IDBI are near supports and if they can sustain current levels, some rally can be expected from them.

· ONGC (940):- Buy near 920-930 for target 1020-1030. SL can be kept around 900.

(Keep SL in short-term trades)

N-Deal timeline: Dates to watch out for http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=28459

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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