Thursday, November 01, 2007


NIFTY: - Open 5868 High 5952 Low 5861 Close 5900 (+32 points)

P/E 26.01 P/B 6.15 Adv 28 Dec 21 Unch 1

Supp 5830/5740/5625 Res 6040/6100/6270

SENSEX: - Open 19827 High 19984 Low 19735 Close 19837 (+54 pts)

Supp 19700/19560/19200 Res 20030/20240/20450

Volatility before the Fed meeting:-

· It was a day for non-index stocks as blue chips remained subdued. Jindal Steel and Power was up more than 20%. Century Enka, Str Optical, Nestle were other winners. Closing was just 54 points up on the Sensex.

· Volumes were expectedly lower - Rs 22675 Cr in spot market and F&O Vol at Rs 71090 Cr.

· Breadth was a concern – BSE Adv 1536 Dec 1437 Unch 86 NSE Adv 541 Dec 553 Unch 27

· Institutional Investors bet on Fed rate cut and bought Indian Equity. FIIs bought Rs 198 Cr and DIIs were buyers worth Rs 444 Cr. FIIs hedged equity exposure by selling Rs 582 Cr in Stock Futures. They remained small buyers in Index Fut worth Rs 45 Cr.

Top Gainers: - RPL, REL, PNB, Ranbaxy, Unitech

Top Losers: - MTNL, Hind Unilever, Zee Enter, VSNL, BHEL

Indian ADRs: -

Outlook for Thursday:-

· The Fed has cut its interest rate by 25 bps. It was quite an expected action and US stocks advanced as Dow Jones closed by 137 points up. A firm opening is anticipated today in Indian markets as well on the back of this news.

· 20450 for the Sensex and 6100 for Nifty can be achieved in this rally. Support for the same is at 19600 and 5830 respectively. A closing past 20000 is needed for maintaining strength of this rally. Stock-specific action is expected.

· SCI (240):- Buy for target of 300 and above. SL can be kept at 220.

· ING Vysya (287):- The stock has broken out and can target 340-350 levels. It is a good buy around 275-280 SL 260.

(Keep SL in short-term trades)

Fed lowers its rates

Tough steps to check foreign inflows likely

Dr Reddy's eyes cos with branded generics presence

GSPC may sell 30% equity in KG block

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.

No comments: