Friday, November 02, 2007


NIFTY: - Open 5903 High 6011 Low 5837 Close 5866 (-34 points)

P/E 25.65 P/B 6.15 Adv 15 Dec 35

Supp 5830/5710/5650 Res 5910/5980/6080

SENSEX: - Open 20130 High 20204 Low 19634 Close 19724 (-113 pts)

Supp 19560/19200/19050 Res 19860/20030/20250

Fed Rate cut could not stop markets from falling:-

· Opening was strong but gains didn’t last long as supply came from higher levels. We could not close above 20k for the Sensex. Auto, Realty and FMCG were major losers. Banks were gainers.

· Volumes were large - Rs 28476 Cr in spot market and F&O Vol at Rs 99734 Cr.

· Breadth was negative from early trading – BSE Adv 1089 Dec 1900 Unch 71 NSE Adv 292 Dec 805 Unch 27

· FIIs bought small Rs 74 Cr in Cash market and DIIs too were buyers of just Rs 56 Cr (Provisional figures). FIIs sold Index Fut worth Rs 177 Cr and bought Rs 1123 Cr Stock Fut.

Top Gainers: - ONGC, RPL, LT, ICICI Bank, RCom

Top Losers: - VSNL, Bharti Airtel, Hind Unilever, Maruti, MTNL

Indian ADRs: -

Outlook for Friday:-

· Market showed a lot of volatility yesterday intraday and such a thing denotes weakness. We are not sustaining higher levels as closing past 20K is still pending. One needs to be in cash as a top may be near somewhere. Even if one goes wrong, one can re-enter the market again as cash will be there.

· American markets headed down yesterday night on the back of poor earnings and financial woes. Asian markets too have opened lower.

· The Fed has clearly stated that this may be the end of rate cuts in the near term as they have to balance between economic growth and inflation.

· Indian markets are expected to open lower and fresh buying should be avoided for time-being as we head into a weekend. 5710 is the support for the Nifty whereas 19000 can be the same for the Sensex. But much lower levels are also possible in case of some bad news.

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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