Thursday, February 28, 2008


NIFTY: - Open 5271 High 5368 Low 5249 Close 5268 (-2 points)

P/E 22.46 P/B 5.52 Adv 24 Dec 26

Supp 5210/5175/5110 Res 5300/5340/5420

SENSEX: - Open 17983 High 18137 Low 17770 Close 17825 (+19 pts)

Supp 17750/17670/17520 Res 17950/18100/18315

Supply from higher levels:-

· Stocks rose in early trade on the back of spirited global markets but could not sustain the higher levels around 5400 and came back in negative territory in late trade.

· Volumes - Rs 13305 Cr in spot market and F&O Vol at Rs 63256 Cr.

· Market Breadth– BSE Adv 1546 Dec 1399 Unch 93 NSE Adv 617 Dec 526 Unch 30

· Top Gainers: - Sun Pharma, Glaxo, M&M, HDFC, BHEL

Top Losers: - Grasim, REL, Nalco, Tata Commu, Ster

· FIIs bought Rs 350 Cr and MFs bought Rs 341 Cr in cash market. F&O

· Total OI 87380 Cr (+2443 Cr) PCR at 1.04

· Nifty added 3% OI. Basis -11.40

· OI Added:- ACC 16%, BEL 48%, Bhusan 20%, CBI 15%, IFCI 21%, IRB 26%, Jindal Saw 16%, Jindal Steel 31%, Nicolas 70%, REL 20%, RelCap 40%, Renuka 18%, RNRL 23%, Siemens 15%

· OI Shed:- CNX100 99%, 3i 10%, Ansal Infra 15%, AuroPharm 13%, BEML 17%, CromGreav 13%, Cummins 12%, Idea 11%, IVRPrime 16%, Lupin 17%, Network18 21%, NIIT Tech 17%, Nucleus 39%, Polaris 21%, Sasken 17%, SterlingBio 29%, SunTV 19%

Indian ADRs: -

Outlook for Thursday:-

· Nifty could not cross 5368 which was previous top and corrected towards 5250 from there. Today is F&O expiry for the month of February. Also we will be having economic survey which will be a prelude to the budget. Remaining trading sessions in this week are going to be very volatile on the back of these events. 5100 to 5350 can be the range for 2-3 days.

· Shipping and Pharmaceutical stocks can perform as they may get some benefits from this budget.

· Coal prices are rising in global market and companies depending upon imported coal can get affected as their raw material cost will climb. The companies affected can be thermal power units such as NTPC, REL. Tata Power can survive as it had acquired PT Bumi mines of Indonesia last year. GIPCL can also come through as their plants are gas and lignite-based. Non-integrated steel companies will feel the heat as they need cooking coal. SAIL and Tata Steel have integrated plants and they should not be affected so much.

· Glenmark (511):- The stock looks attractive on the graph and it can target 535-542 levels in 2-3 trading sessions. Keep a SL of 498.

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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