Friday, December 07, 2007


NIFTY: - Open 5941 High 6027 Low 5919 Close 5954 (+14 points)

P/E 26.05 P/B 6.25 Adv 23 Dec 27

Supp 5910/5860/5800 Res 5980/6030/6125

SENSEX: - Open 20018 High 20064 Low 19716 Close 19795 (+57 pts)

Supp 19700/19600/19400 Res 19860/20070/20250

Strong global sentiment didn’t take us above 20000:-

· Indices opened very strong but rally petered out there itself as no new intraday top was registered after the early trade. Selling pressure accentuated in last half an hour and we could close up by just 57 points on the Sensex.

· Volumes were higher - Rs 21904 Cr in spot market and F&O Vol at Rs 66472 Cr.

· Breadth was on the positive side – BSE Adv 1912 Dec 1120 Unch 52 NSE Adv 632 Dec 496 Unch 15

· FIIs have been buying in recent past. Yesterday too they bought Rs 492 Cr in cash market and DIIs bought Rs 227 Cr. In Derivatives segment, FIIs bought Rs 613 Cr in Index Futures but sold Rs 929 Cr in Stock Futures.

· Total OI 98291 Cr (+1289 Cr) PCR at 1.25

· Nifty added smallish OI. Premium 15.15 pts

· OI Added:- Cipla 23%, Crompton Greaves 28%, HTMT Global 33%, Idea 15%, Jindal Saw 13%, KPIT 32%, Nucleus 55%, Omaxe 21%, Peninsula 21%, Rel Cap 12%, RPL 13%, Shree Cem 17%, Titan 17%, Wockpharma 20%, Nicolas Piramal 39%

· OI Shed:- APIL 9%, Bhusanstl 15%, Cummins 10%, Havells 6%, Indiainfo 13%, Ispat 11%, Nagarfert 10%, LITL 9%, PFC 16%, Renuka 11%, SRF 13%, Syndibank 12%, Tata Tea 11%, TTML 15%

Top Gainers: - Unitech, Cipla, Ster Ind, ICICI Bank, REL

Top Losers: - Hindalco, Grasim, Sun Pharma, SAIL, Zee Enter

Indian ADRs: -

Global Markets:-

DJIA closed up 174 points as financial companies and builders led the gains. MTNL and ICICI Bank were top gainers from among Indian ADRs. Asian markets too have opened positively.

Outlook for Friday:-

· Market has a habit of fooling everybody and yesterday was a classic example. That is why short-term traders need to keep their Stop losses intact in such a market. Money is not made by timing the stock market but by the time spent in the stock market.

· We had a nice breakout above 20k on the Sensex and 6k for the Nifty yesterday but Reliance Industries weighed down the bulls and they had to unwind their positions as the day was about to end.

· Now next 2-3 trading sessions look pretty important as a breakout into new highs has to be achieved in that timeframe. We may correct around 19600 but we should not break 19300-19400 level as that will prove the breakout to be false. The corresponding level is 5760 for the Nifty. Crossing 20070 today will confirm the breakout and we can see new highs on the Sensex.

· Alembic buy at 90-91 SL 85 Tgt 103-105

· TCS (1035):- The stock can target 1150-1160. Buy with SL 1010

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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