Friday, February 29, 2008


NIFTY: - Open 5266 High 5302 Low 5227 Close 5285 (+17 points)

P/E 22.53 P/B 5.54 Adv 33 Dec 16 Unch 1

Supp 5210/5115/5050 Res 5340/5420/5500

SENSEX: - Open 17810 High 17921 Low 17690 Close 17824 (-1 pts)

Supp 17670/17520/17130 Res 18000/18320/18510

Cautious ahead of the big event:-

· Indices see-sawed between positive and negative territory whole day as investors were shy at having big exposures just ahead of the budget. It was a flat closing finally.

· Volumes - Rs 14576 Cr in spot market and F&O Vol at Rs 61065 Cr.

· Market Breadth– BSE Adv 1393 Dec 1566 Unch 81 NSE Adv 489 Dec 647 Unch 37

· Top Gainers: - Nalco, Tata Comm, Dr Reddy, Sun Pharma, Hindalco

Top Losers: - PNB, REL, SBI, Reliance, IDEA

· FIIs sold Rs 809 Cr and MFs bought Rs 732 Cr in cash market. FIIs sold Rs 1080 Cr in Stock and Index Futures.

Indian ADRs: -

Global Markets:-

It was a triple-digit slide for the Dow Jones Industrial Average after slower-than-forecast economic growth and rising jobless claims. Ben Bernanke’s warning of possible failures among smaller banks deepened concerns of recession in USA. Dow Jones closed down by 112 points.

Outlook for Friday:-

· Our markets to open lower and we can test 5210 in early trade. But as we have a major event called budget lined up, the global cues won’t matter much today.

· Economic Survey for 2007-08 :-

· The economic survey says that India faces a daunting task of sustaining growth. Inflationary impact of foreign funds flow, a slowdown in the US, an appreciating rupee and sluggish infrastructure sector were major challenges before the economy.

· The FM suggested a lot of reforms to raise growth to double-digit levels. These include opening retail to FDI, hiking FDI in insurance to 49%, allowing 100% FDI in new private rural agricultural banks, selling up to 10% equity of Navratna (Cash-rich) PSUs. The policy reforms also include allowing regulated private entry into coal mining, phasing out control on sugar, fertilizer and drugs and selling old oil fields to private sector.

· Indian economy grew by 9.4% in 2005-06, 9.6% in 2006-07. However, it has declined to 8.7% in 2007-08.

· This is the last budget in current government term. We should think on the proposals in the weekend and take informed decision on Monday. There is no need to do haste in buying / selling. Cement to get costlier again Power sector a laggard in the growing economy,dwp_uuid=a6dfcf08-9c79-11da-8762-0000779e2340.html India at risk of missing economic goals

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.

No comments: