Thursday, November 22, 2007


NIFTY: - Open 5778 High 5790 Low 5530 Close 5561 (-219 points)

P/E 24.35 P/B 5.83 Adv 2 Dec 48

Supp 5435/5240/5115 Res 5630/5700/5760

SENSEX: - Open 19197 High 19218 Low 18515 Close 18602 (-678 pts)

Supp 18300/18080/17700 Res 18780/19070/19250

Broad-based correction:-

· We started negative from the word go and selling was so intense that we could not come into positive terrain the whole day. Almost every sector was lambasted as Sensex closed down by 678 points. Just 2 shares from Nifty-50 advanced.

· Volumes declined - Rs 18755 Cr in spot market and F&O Vol at Rs 70758 Cr.

· Breadth was very negative – BSE Adv 767 Dec 2262 Unch 38 NSE Adv 147 Dec 972 Unch 16

· FIIs sold quite big Rs 2007 Cr in spot market and Domestic institutions bought Rs 630 Cr. FIIs sold Rs 2267 Cr in index futures. Stock Fut selling was just Rs 32 Cr.

· OI added:- Nicolas Piramal 17%, BankNifty 11%, JPHydro 10%, TataSteel 9%, ONGC 5%, Polaris 5%, Bajaj Auto 7%, M&M 7%, SRF 7%, Wipro 7%

· OI reduced:- AlokText 13%, Neyveli 12%, HCC 12%, Chambal 11%, AIA 11%, Tata Tea 10%, Vijaya Bank 9%, IFCI 9%,

· Total OI 105226 Cr (-3117 Cr) PCR at 0.97

· Nifty Futures OI added 11%. It was in premium of 3.55 points on Tuesday, but went into discount of 20.35 points yesterday signifying continued selling.

Top Gainers: - Hero Honda, Glaxo

Top Losers: - Hind Petro, NTPC, Ster Ind, Nalco, BHEL

Indian ADRs: -

Outlook for Thursday:-

· More sub-prime concerns took a hit on Dow Jones yesterday night as it fell more than 200 points. All Indian ADRs lost quite a bit of ground, just Patni Comp was flat.

· Gap-down opening is expected today with weak Asian markets. 18300-level has provided good support in the past. Break of 18300 on the Sensex will be negative from the day’s point of view and we may see around 18k levels. 17700-17900 is where good support can be seen. But after that too strength of the bounce has to be seen. Nifty has to cross 5700 to show any kind of strength.

· Big shorts are getting built up and it looks as of now that they will be rolled over. So even if a bounce comes from around 17700 levels, it may be short-lived. Tech stocks can be good to invest when market bottoms out.

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: