Friday, January 04, 2008

DAILY REPORT FOR 4 JANUARY, 2008

NIFTY: - Open 6184 High 6230 Low 6126 Close 6178 (-0.85 points)

P/E 27.80 P/B 6.43 Adv 13 Dec 37

Supp 6125/6060/5980 Res 6230/6265/6350

SENSEX: - Open 20403 High 20519 Low 20293 Close 20345 (-120 pts)

Supp 20290/20240/20000 Res 20550/20800/21000

Consolidation:-

· Indices consolidated between narrow range for the whole day and Sensex closed down by 120 points. But Nifty was very flat on account of ONGC performing. Power stocks were in demand.

· Volumes were higher - Rs 24710 Cr in spot market and F&O Vol at Rs 70651 Cr.

· Breadth was flattish – BSE Adv 1597 Dec 1307 Unch 20 NSE Adv 513 Dec 627 Unch 4

· Top Gainers: - NTPC, REL, Cairn, BPCL, Tata Power

Top Losers: - VSNL, Dr Reddy, Sun Pharma, Grasim TCS

· FIIs sold Rs 244 Cr and DIIs bought Rs 526 Cr in Cash Market. FIIs sold Rs 1241 in Index and Stock Futures.

· Total OI 117787 Cr (+4115 Cr) PCR at 1.36

· Nifty added 4% OI. There was no premium or discount as Nifty cash and futures closed almost at the same rate.

· OI Added:- Minifty 52%, Federal Bank 34%, Colgate 29%, Brigade 22%, Moser 22%, Canbk 21%, HCC 20%, Amtek Auto 19%, Dabur 17%, Tata Power 17%, Wipro 17%, Peninsula 16%, HTMT Global 15%, ITC 15%, Redington 15%, SAIL 14%, VSNL 13%, Dr Reddy 12%, Mahlife 12%, TCS 12%, BankNifty 11%, CESC 11%, STAR 11%

· OI Shed:- Uniphos 12%, AdiBirlaNuvo 9%, BongRef 7%, REL 6%, J&K 6%, IDBI 6%, EKC 6%

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

Global Markets:-

American markets were flat as Dow Jones closed just 12 points higher. Indian ADRs too were flat. Asian indices have opened mixed.

Outlook for Friday:-

· Once again yesterday was a narrow range for this market despite negative Asian and US markets. Even if this is a sign of strength, market indicators say that we are near a top. This may not be a top but we are near it.

· Number of stocks hitting upper circuits is increasing daily. More than 1000 scrips are hitting only buyer circuits for the last 3-4 trading sessions. Many of them don’t have the right fundamentals to be a part of such breathtaking rallies.

· Money in the stock market is made through investing and caution is advised when a futures player also considers himself as an investor. One needs to take informed decision while deploying his hard-earned money in the stock market.

· Reliance and ONGC are near all-time highs and they can make a big difference to this market. Any positive move in these stocks and short-covering will take the market to higher orbit once again.

· Nifty levels of 6125 and 6060 look pretty important now as strength will be witnessed above these levels. A move past 6230 will force shorts to cover.

· GMR Infra (251):- Buy for target of 275-280 in short-term. Keep SL of 240.

· Tata Motors is in the final stages of winning the Ford brands. The stock can perform very well in 2008 and only investors should buy it.


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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