Wednesday, November 21, 2007


NIFTY: - Open 5911 High 5923 Low 5755 Close 5780 (-127 points)

P/E 25.32 P/B 6.06 Adv 7 Dec 43

Supp 5735/5665/5590 Res 5825/5895/5940

SENSEX: - Open 19510 High 19714 Low 19196 Close 19280 (-352 pts)

Supp 19130/18960/18880 Res 19400/19570/19700

Asian market recovery didn’t help:-

· Indices opened lower and recovered too but selling was intense and consistent. Metals, Power, Capital goods and selective IT shares saw selling pressure and Sensex closed down by 352 points.

· Volumes were good - Rs 21061 Cr in spot market and F&O Vol at Rs 73179 Cr.

· Breadth was okay – BSE Adv 1646 Dec 1366 Unch 55 NSE Adv 485 Dec 628 Unch 22

· FIIs sold big Rs 1800 Cr in spot market and Domestic institutions bought Rs 463 Cr. Foreign investors were sellers in derivatives market to Rs 4233 Cr.

· OI added:- Air Deccan +19%, BHEL +24%, Balrampur Chinni +16%, Colgate +21%, Cromp Greav +26%, IFCI +21%, TTML +12%, SRF +17%, Infosys +17%, DLF +20%

· OI reduced:- Arvind Mill -12%, Essar Oil -11%, JP Hydro -15%, Vijaya Bank -10%

· Total OI 108344 Cr (+2212 Cr) PCR at 1.10

· Nifty OI +7% and premium reduced from 17.4 to just 3.55 points indicating build-up of shorts.

Top Gainers: - Tata Motors, SAIL, Ambuja Cem, Hind Unilever, ACC

Top Losers: - Nalco, Hindalco, Ster Ind, MTNL, BHEL

Indian ADRs: -

Outlook for Wednesday:-

· Dow Jones was like a tug-of-war yesterday but finally it could close up by 55 points led by Technology stocks.

· Our markets may open flat on weak Asian markets. Massive selling by FIIs yesterday kept our markets negative despite recovery in other markets.

· Close below 5660 on the Nifty will be quite negative and another phase of correction can start. That can take us towards 5300.

· Bombay Dyeing (686):- Buy for target of 700 in short-term. SL can be kept at 664.

· Nifty shows big short build-up. Correction, if happens now, can be broad-based as small and mid-caps will also fall with the market. One is advised to keep stict stop losses.

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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