Friday, March 14, 2008

DAILY REPORT FOR 14 MARCH, 2008

NIFTY: - Open 4868 High 4868 Low 4580 Close 4623 (-249 points)

P/E 19.72 P/B 4.81 Adv 2 Dec 48

Supp 4580/4550/4448 Res 4690/4750/4800

SENSEX: - Open 15873 High 15873 Low 15228 Close 15357 (-770 pts)

Supp 15200/15000/14550 Res 15500/15800/16070

6 month low on the Sensex:-

· Sensex closed down by 770 points as all the day was characterized by consistent selling and extremely negative breadth.

· All the sectoral indices on the BSE ended in the red with Realty index losing 11% and Metals losing 8%.

· 29 out of 30 stocks declined on the Sensex and just 2 stocks could keep their heads in the positive out of 50 stocks from the Nifty.

Statistics:-

· BSE Vol Rs 6134 Cr Breadth Adv 345 Dec 2332 Upper Circuit 69 Lower Circuit 451

· NSE Vol Rs 13603 Breadth Adv 70 Dec 1133 F&O Vol Rs 44869

· Top Gainers: - Hero Honda, Bajaj Auto

Top Losers: - Cairn, Suzlon, SAIL, REL, Unitech

· FIIs sold Rs 108 Cr and MFs bought Rs 56 Cr in Cash Market. Foreign Investors sold Rs 85 Cr in Index Futures and bought Rs 239 Cr in Stock Futures. FIIs OI in Index F&O Rs 34453 Cr and in Stock F&O Rs 23062 Cr.

· Total OI 64495 Cr (-2183 Cr) PCR at 0.94

· Nifty added 5% OI. Basis -26.30

· OI Added:- Minifty 16%, Bajaj Auto 61%, DLF 69%, NagarConst 16%, PowerGrid 26%, Wipro 8%

· OI Shed:- CNXIT 10%, BEL 8%, CMC 12%, ColPal 8%, CorpBank 18%, EssarOil 10%, Glaxo 29%, HTMTGlobal 11%, J&K 46%, Jet 16%, Nicolas 28%, Nucleus 14%, Redington 18%, REL 10%, Siemens 8%, Sobha 11%, Voltas 9%

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

Global Markets:-

US Stocks rose after Standard & Poor’s predicted an end to banks’ subprime mortgage writedowns and gold surged above $1000 an ounce, sparking a rally in mining shares. Tata Comm and HDFC Bank ADRs lost 3% each whereas Satyam gained 3%.

Outlook for Friday:-

· Greed and Fear can not be measured in statistical terms but these 2 emotions are always responsible for market movements. With everything in the negative and many stocks reaching value-buy levels, the bottom is very near. We must not be selling Indian equity at this juncture but we should be buying as a good bounce is on the cards.

· Ranbaxy, Maruti, Cairn, Bata, Purvankara Projects, Amtek Auto, Suzlon, Mundra Port, Renuka Sugar are stocks that one should buy. All these stocks can target 15-20% in next 3-4 month time period.

· Buying in cash will only make money for investors, leveraging kills us as we end up with forced investments which have to be squared off at a certain point of time. That never works in the long run.

· I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading “Now is the time to buy” said the great investor Peter Lynch. The market may give more panic intraday today but already value-picking time has emerged. Those who were waiting on the sidelines to invest in this market have to come forward now and commit some money here.


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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