DAILY REPORT FOR
NIFTY: - Open 5285 High 5290 Low 5098 Close 5223 (-62 points)
P/E 22.27 P/B 5.47 Adv
Supp 5100/5020/4800 Res 5245/5340/5410
SENSEX: - Open 17779 High 17779 Low 17258 Close 17578 (-245 pts)
Supp 17260/17110/17000 Res 17700/18000/18300
Whole day in the negative:-
· FM P. Chidambaram announced last budget of this government on Friday but nobody found it quite interesting from the viewpoint of the markets. Cap Gains tax was raised and it didn’t cheer the bulls much. Sensex closed down by 245 points though at one point of time we were down 566 points.
· Volumes - Rs 15816 Cr in spot market and F&O Vol at Rs 49083 Cr.
· Market Breadth– BSE Adv 1180 Dec 1805 Unch 59 NSE Adv 455 Dec 693 Unch 26
· Top Gainers: - RPL, PNB, Glaxo, Maruti, SBI
Top Losers: - Suzlon, Unitech, HCL Tech, Siemens, Nalco
· FIIs sold Rs 334 Cr and MFs bought Rs 742 Cr in cash market. FIIs sold Rs 1265 Cr in Stock and Index Futures.
· Total OI 63222 Cr (+4971 Cr) PCR at 1.31
· Nifty added 10% OI. Basis -42.40
· OI Added:- Minifty 48%, BankIndia 17%, BPCL 21%, ColPal 18%, CorpBank 21%, Educomp 24%, ICICI Bank 18%, ITC 26%, M&M 41%, Maruti 41%, Nicolas 47%, NIIT 24%, Suzlon 18%, Tata Mot 16%
· OI Shed:- HDIL 7%, IOC 9%, Naukri 69%, Syndi 7%, UniPhos 33%
Indian ADRs: - http://tinyurl.com/33m7dx
Outlook for Monday:-
· Indices to open lower on bad global sentiment and Sensex can test lower levels around 17000-17100 in early trade.
· Nifty has support at 5020-5050. If we close comfortably below 5020, it will be quite difficult to recover fast and we may test 4600 levels. A phase of consolidation can start which can last for 3 months at least.
· We have to see how foreign investors take this budget. Many reforms were suggested in the economic survey to take GDP growth towards double-digit but didn’t come through in the actual budget.
· If we recover from early losses, Nifty will have to cross 5250 to show strength. Pharmaceutical stocks like Biocon, Aurobindo, Dr Reddy, Ranbaxy can be picked in that case.
· Tata Motors can be bought for long term investment after excise cut on small cars. The acquisition of Jaguar should go through in months to come. Suzlon looks good for investment and one should accumulate this stock.
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.