DAILY REPORT FOR
NIFTY: - Open 6282 High 6357 Low 6221 Close 6287 (+9 points)
P/E 28.29 P/B 6.55 Adv 17 Dec 33
Supp 6250/6190/6160 Res 6325/6360/6420
SENSEX: - Open 20970 High 21077 Low 20696 Close 20873 (+60 pts)
Supp 20700/20520/20430 Res 21070/21260/21450
· Though the opening was buoyant, gains didn’t last for a long time. Only a handful of heavyweights like Reliance and SBI were up resulting in index gains. Breadth was negative and small cap stocks took a beating.
· Volumes were higher - Rs 25435 Cr in spot market and F&O Vol at Rs 84355 Cr.
· Breadth was negative – BSE Adv 567 Dec 2373 Unch 13 NSE Adv 219 Dec 925 Unch 2
· Top Gainers: - Suzlon, Glaxo, Bharti Airtel, HDFC Bank, Satyam Comp
Top Losers: - BPCL, Hindalco, Tata Steel, Grasim, Cairn
· FIIs bought Rs 570 Cr in Cash market and DIIs bought Rs 92 Cr. Foreign Investors sold Rs 629 Cr in Index Fut and bought Rs 233 Cr in stock futures.
· Total OI 128302 Cr (+102 Cr) PCR at 1.35
· Nifty added 1% OI. Discount 15.05
· OI Added:- Patel 25%, Minifty 23%, Bindal 12%, BEL 11%, Educomp 11%, Essar Oil 11%, Infosys 10%
· OI Shed:- Renuka 20%, J&K 17%, UniPhos 14%, Sun TV 14%, GBN 14%, Colgate12%, Yes Bank 10%, DLF 9%
Indian ADRs: - http://tinyurl.com/33m7dx
Outlook for Wednesday:-
· 21000 may prove to be a psychological resistance for the Sensex. Breadth was a concern yesterday but it had to happen some day. Many small stocks which didn’t have credentials for rallies have got tripled or quadrupled in last 2-3 month period whereas Sensex has returned around 5% in the same period.
· This month is quite action-packed as there are many events lined up. Results season, Fed Meeting, Petrol price decision and finally Reliance Power IPO. It may just be a roller-coaster for the indices. So highly leveraged positions should be avoided as far as possible.
· For today’s trading, initially selling from above 6300 is not ruled out. 6160 to 6190 looks like a strong support level and any fall around that level can see a good bounce-back.
· Tech stocks bounced well yesterday. TCS, Infosys, Satyam, Tech Mah and Wipro all saw good buying in late trade. Those look like safe stocks for short-term.
· TCS (987):- Buy the stock as it can target 1040-1050 levels when it starts bouncing back.
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.