Monday, March 24, 2008

DAILY REPORT FOR 24 MARCH, 2008

NIFTY: - Open 4534 High 4718 Low 4533 Close 4574 (+41 points)

P/E 19.93 P/B 4.91 Adv 31 Dec 18 Unch 1

Supp 4530/4450/4350 Res 4615/4650/4720

SENSEX: - Open 15325 High 15465 Low 14930 Close 14994 (+161 pts)

Supp 14900/14670/14500 Res 15200/15280/15500

Indices were up, but off the highs:-

· Stocks soared in early trade as global markets witnessed sharp rallies across the board but gains could not sustain as investors didn’t bet aggressively just before the long weekend.

· Selective buying in IT stocks was witnessed. Satyam, Wipro and Infosys gained.

Statistics:-

· BSE Vol Rs 5796 Cr Breadth Adv 758 Dec 1923 Upper Circuit 81 Lower Circuit 425

· NSE Vol Rs 13948 Breadth Adv 369 Dec 835 F&O Vol Rs 46365

· Top Gainers: - Satyam, Wipro, Tata Motors, SAIL, Nalco

Top Losers: - Hero Honda, BPCL, Hindalco, Unitech, Idea

· FIIs bought smallish Rs 30 Cr in cash market. MFs too bought Rs 142 Cr. Foreign investors bought Rs 1838 Cr in Index Futures and Rs 239 Cr in Stock Futures. FII OI in Index F&O Rs 32003(-750) Cr and in Stock F&O Rs 21282(-322) Cr.

· Total OI 61494 Cr (-285 Cr) PCR at 0.86

· Nifty shed 2% OI. Basis -1.25

· OI Added:- Axis 11%, CMC 47%, Educomp 13%, Essar Oil 22%, GAIL 10%, HeroHonda 10%, Jet 14%, Triveni 15%, WelGuj 19%

· OI Shed:- Minifty 10%, ABB 12%, AbirlaNuvo 11%, Aptech 13%, Bajaj Holding 12%, GEShip 12%, ITC 9%, LITL 12%, Naukri 66%, Orchid 13%, RelCap 11%, SAIL 9%, Sesa Goa 15%, Yes Bank 26%

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

Outlook for Monday:-

· We should buy in tranches and not all in one go. Those who have bought some stock last week have to give some time for markets to settle. This is not a confirmed bottom yet (of 14677 on the Sensex), but we are on course to bottoming out and then give a good bounce.

· Flat opening is expected today but individual stocks can recover quickly. Stock-specific movement should happen.

· Market is not likely to reward traders much as we will move up-down pretty sharply. Investors have to take benefit of the volatility and add good stocks in panic. Suddenly some stock will move up 3-4% and then selling can take it down 8-9% also. We can capitalize on these opportunities only when we buy in cash and have stock with us. A leveraged player is doomed to fell in such a market as we are not yet so stable.

· GT Offshore (597):- The stock can be bought for short as well as long-term investing. In the short-term, it can bounce towards 650-675 levels.

· Inflation announced last week (5.92%) has gone well above RBIs comfort level of 5% and stringent measures by RBI for tightening money-supply will be expected. Banks may remain subdued by this news.


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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