Wednesday, November 07, 2007


NIFTY: - Open 5847 High 5957 Low 5759 Close 5786 (-61 points)

P/E 25.31 P/B 6.06 Adv 20 Dec 30

Supp 5710/5655/5540 Res 5860/5900/5975

SENSEX: - Open 19688 High 19919 Low 19337 Close 19400 (-190 pts)

Supp 19200/19050/18700 Res 19600/19770/20030

RPL and RNRL continue to lead, but this time on the downside:-

· Markets opened up but corrected slowly to end at 190 points down on the Sensex. RPL lost 17%. RNRL was down just 9% but the scrip had lost 25% intraday from day-high.

· Volumes climbed - Rs 23764 Cr in spot market and F&O Vol at Rs 82952 Cr.

· Breadth was negative though selling was not across the board – BSE Adv 1269 Dec 1708 Unch 85 NSE Adv 399 Dec 695 Unch 34

· FIIs bought meagre Rs 7 Cr in cash market as per Provisional Figures whereas DIIs bought Rs 206 Cr. FIIs were buyers in index futures worth Rs 255 Cr and sellers in Stock futures worth Rs 494 Cr.

· Major Open Interest change: - Amtek Auto (47%), PFC (45%), CNX100 (25%), Sterlite Ind (21%), Nifty Midcap 50 (17%), RPL (17%), JPHydro (-22%), Gescocorp (-10%), RNRL (-17%), BEML (-15%),

Total OI 91638 Cr (-2%) PCR at 1.17

Top Gainers: - GAIL, Hindalco, BHEL, Bajaj Auto, Nalco

Top Losers: - RPL, Siemens, RCom, L&T, Tata Motors

Indian ADRs: -

Outlook for Wednesday:-

· American markets were strong as Dow Jones appreciated by 117 points overnight. But Indian Tech ADRs were down, Infosys and Wipro were down 6% each. HDFC Bank gained 3%.

· Our markets are expected to open firm and early pullback is expected towards 5860 and 5900 on the Nifty.

· Selling from higher levels is not ruled out. 5700 is a good support from where we bounced last time. Below that we can test 5655 and 5540 quickly.

· This correction is not expected to be fast as we will move to lower levels slowly. Stock-specific action will continue. BHEL and Gesco Corp look good.

· Kirloskar Oil Engines (158):- The stock can target 180-185 in short term. Buy with 147 as SL.

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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