Wednesday, December 12, 2007

DAILY REPORT FOR 12 DECEMBER, 2007

NIFTY: - Open 5960 High 6111 Low 5960 Close 6097 (+137 points)

P/E 26.68 P/B 6.40 Adv 46 Dec 4

Supp 6050/6000/5950 Res 6120/6200/6275

SENSEX: - Open 20049 High 20333 Low 20019 Close 20290 (+360 pts)

Supp 20200/20000/19700 Res 20450/20530/20720

Big Breakout:-

· Opening was very strong and as the day progressed, consistent buying was seen in index stocks like ONGC, Reliance and metals.

· Volumes were average - Rs 18732 Cr in spot market and F&O Vol at Rs 59421 Cr.

· Breadth was very positive from the word go but deteriorated somewhat in late trade – BSE Adv 2091 Dec 951 Unch 45 NSE Adv 715 Dec 410 Unch 20

· Top Gainers: - MTNL, Unitech, Nalco, Hind Petro, Bharti Airtel

Top Losers: - Ambuja Cem, Infosys, BHEL, Tata Power

· FIIs bought Rs 387 Cr and DIIs bought Rs 341 Cr in Cash Market. FIIs bought in Index Fut worth Rs 1038 Cr and sold in Stock Fut Rs 179 Cr.

· Total OI 105005 Cr (+2312 Cr) PCR at 1.28

· Nifty added very thin OI. Premium 10.05 pts

· OI Added:- Andhra Bank 17%, Ansal Infra 24%, BHEL 14%, BankIndia 10%, CAIRN 18%, CESC 10%, Idea 16%, India Cem 13%, IOB 22%, IVR Prime 10%, Karnataka Bank 17%, Nagar Const 23%, Peninsula 11%, Sobha 12%, STAR 75%, Tata Tea 15%, SRF 10%

· OI Shed:- Adlabs 10%, Balrampur Chinni 8%, Bharti Airtel 9%, BILT 15%, Bong Ref 10%, Dr Reddy 9%, OBC 8%, Rajesh Expo 10%, Zee Enter 15%

· OI speaking Sector-wise:- Auto Ancillary 3%, Ferti 4%, NBFC 4%, Telecom 5%,

Indian ADRs: - http://tinyurl.com/33m7dx

Global Markets:-

The Fed cut the interest rates by 25 bps but it could not cheer the American markets. This looks like already discounted by the markets there. Also further cuts were not signaled. Satyam, Wipro and VSNL were top losers from among Indian ADRs. MTNL rose 2%.

Outlook for Wednesday:-

· Yesterday we broke out above 20000 and now with global sentiment weak, today’s opening is expected to be lower. Support from lower levels is not ruled out.

· Indian market has been known for its strength through bad global sentiment. 20000 for the Sensex and 6000 for the Nifty may act as supports for intraday trade today. Stock-specific action will continue.

· ONGC (1240):- Buy around 1220-1230 for target of 1300 and above. Keep SL of 1190.

· Tata Tea (835):- The stock is near a breakout. Buy with SL of 790 and target of 950. 870 and 895 may provide some resistance.


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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