Monday, November 05, 2007


NIFTY: - Open 5854 High 5944 Low 5714 Close 5932 (+66 points)

P/E 25.94 P/B 6.21 Adv 29 Dec 21

Supp 5850/5800/5710 Res 5975/6015/6100

SENSEX: - Open 19364 High 20025 Low 19255 Close 19976 (+251 pts)

Supp 19750/19540/19260 Res 20030/20240/20450

Bulls win the day’s battle:-

· We opened gap down and moved sideways the whole day but buying emerged in late trade as banks led the way. SBI gained more than 8% when government announced the rights issue for the bank. Sensex closed 251 points higher as we once again touched the 20K mark.

· Volumes were not great - Rs 20054 Cr in spot market and F&O Vol at Rs 76145 Cr.

· Breadth was negative at start but improved with the market – BSE Adv 1504 Dec 1478 Unch 79 NSE Adv 539 Dec 556 Unch 30

· FIIs sold Rs 1230 Cr in spot market and DIIs bought Rs 444 Cr (Provisional figures). Foreign investors sold in Derivatives market too as they sold net Rs 1408 Cr in both stock and index futures market.

· Major Open Interest change: - HCC(28%), BOI(25%), Guj Alkali(22%), Rel Cap(23%), Sterlite Ind(28%), L&T(13%), Nicolas Pir(-12%), Nagar Const(-9%), IVRCL Infra(-10%). Total OI 90662 Cr (+5%) PCR at 1.18

Top Gainers: - SBI, Tata Power, REL, HDFC Bank, RPL

Top Losers: - Bharti Airtel, GAIL, HCL Tech, Nalco, Hero Honda

Indian ADRs: -

Outlook for Monday:-

· 5710 provided very good support on Friday and from there we saw more than 200 point rally in the Nifty. Even if we register a new high now, 6100 may provide some resistance. The same is 20450 for the Sensex.

· The risk-reward ratios do not favour aggressive buying at this point of time, so one needs to play the market with unleveraged positions. Keeping good cash levels is advised.

· Short-term players can consider 5850 as a good support. SBI, BHEL and Infosys may outperform.

Power capacity addition in shortfall in first half of 2007-08

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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