Sunday, February 24, 2008


NIFTY: - Open 5183 High 5184 Low 5092 Close 5110 (-81 points)

P/E 21.79 P/B 5.35 Adv 11 Dec 39

Supp 5085/5000/4920 Res 5155/5210/5270

SENSEX: - Open 17515 High 17526 Low 17294 Close 17349 (-385 pts)

Supp 17260/17130/16960 Res 17550/17800/17920

Very irksome:-

· Indices opened sharply lower but no major activity was seen after that. Markets remained range-bound for the whole day.

· Pathetic Volumes - Rs 10201 Cr in spot market and F&O Vol at Rs 36386 Cr.

· Market Breadth– BSE Adv 1008 Dec 1938 Unch 86 NSE Adv 328 Dec 813 Unch 32

· Top Gainers: - Cipla, Nalco, Glaxo, BPCL, Hindalco

Top Losers: - HCL Tech, Bajaj Auto, HDFC Bank, Satyam, ICICI Bank

· FIIs sold Rs 709 Cr and MFs bought Rs 105 Cr in cash market. Foreign investors sold Rs 1069 Cr in both Index and Stock Futures.

· Total OI 77736 Cr (+802 Cr) PCR at 0.92

· Nifty added 4% OI. Basis -17.15

· OI Added:- Glaxo 19%, IFCI 22%, Nicolas 12%, RelCap 26%, Siemens 27%

· OI Shed:- Auropharma 6%, Biocon 10%, Hotel Leela 6%, NIIT 10%, Polaris 6%, RPower 7%

Indian ADRs: -

Global Markets:-

American stocks rose in final 30 minutes as speculation bond insurer Ambac Financial Group Inc. may be rescued overcame concern bank earnings will falter. ICICI Bank ADR fell 4%.

Outlook for Monday:-

· Sensex wasn’t able to close above 18500 last week and has corrected well towards 17200 levels. Now we are near the support level of 17100-17200 and some bounce-back can happen as long as we are above these levels.

· Nifty has support at 5085 and can rally up to 5240-5260 levels on the bounce. Below 5085, psychological support at 5000 can be tested.

· Though a rally is probable on the back of positive US markets and RPower bonus announcement, one need not hurry for buying. An investor will earn in the long run, but short-term is still not so rosy. Any gap-down at this point of time will be very bad for the bulls and panic up to 4800 will be seen in that case.

· Ranbaxy (410):- Buy around 395-399. The stock can target 430-434 levels. Keep SL of 387.

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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