DAILY REPORT FOR
NIFTY: - Open 4623 High 4758 Low 4607 Close 4745 (+122 points)
P/E 19.72 P/B 4.81 Adv 40 Dec 10
Supp 4640/4580/4450 Res 4800/4850/4890
SENSEX: - Open 15467 High 15798 Low 15331 Close 15760 (+403 pts)
Supp 15600/15440/15200 Res 15880/16070/16200
Some buying support:-
· Good buying was seen as breadth improved and Sensex closed up by 403 points. All the BSE indices were positive.
· Inflation reached 5.11% for week ending March 1 compared to 5.02% in the previous week.
· BSE Vol Rs 5914 Cr Breadth Adv 1214 Dec 1458 Upper Circuit 92 Lower Circuit 254
· NSE Vol Rs 13587 Breadth Adv 620 Dec 584 F&O Vol Rs 40184
· Top Gainers: - REL, DLF, PowerGrid, Ster, Unitech
Top Losers: - Bharti Airtel, Hero Honda, M&M, Nalco, Maruti
· FIIs sold Rs 358 Cr and MFs bought Rs 100 Cr in Cash Market. Foreign Investors bought Rs 518 Cr in Index Futures and sold Rs 78 Cr in Stock Futures. FIIs OI in Index F&O Rs 34764 Cr and in Stock F&O Rs 23747 Cr.
· Total OI 65932 Cr (+1581 Cr) PCR at 0.92
· Nifty shed 4% OI. Basis +1.15
· OI Added:- Bajaj Hind 8%, CanBk 8%, EduComp 10%, EssarOil 12%, Federal Bank 14%, HDIL 8%, IndiaInfo 10%, J&K 13%, Jet 21%, Nucleus 41%, PFC 8%, Renuka 11%, Tulip 10%
· OI Shed:- Minifty 20%, Brigade 13%, ICICI Bank 8%,
Indian ADRs: - http://tinyurl.com/33m7dx
Dow Jones closed down by 195 points as Bear Stearns said that it had to draw on short-term financing from the Fed, through JP Morgan after its liquidity “deteriorated significantly”. The stock of Bear Stearns lost 47% in a day. MTNL was the worst performing Indian ADR with 8% drop. Patni Comp gained by 2%. Asian markets have opened in the negative.
Outlook for Monday:-
· The week is characterized by a lot of events – Fed Meet, Adv Tax figures, UPA-Left meet for Nuclear Deal. Sun-outage will also come to an end on 18th March and in addition to all these, it is a truncated week because last 2 days are holidays. Market can become a lot volatile.
· The bounce did come on Friday despite bad inflation figures but bad global markets can give us a lower opening today. A fall below Thursday lows is not ruled out in the morning. But the bottom is near and we, as investors, should take benefit of that. Stocks that can bounce quickly are Ranbaxy, Maruti, Cairn, Bata, Purvankara Projects, Amtek Auto, Suzlon,
· As we have come below a lot of technical supports, the recovery may not be fast. That is why one is advised to buy in tranches and in cash.
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.