Wednesday, April 09, 2008

DAILY REPORT FOR 9 APRIL, 2008

NIFTY (4709 -52 pts)

Supp 4665/4625/4500 Res 4780/4840/4915

SENSEX (15587 -170 pts)

Supp 15450/15300/15040 Res 15700/15880/16230

Outlook for 9 April, 2008:-

· Indices are showing ranged movement from last 2 days and now breakout of the range should give us some trend. The range for the Nifty is 4665 to 4800. Sensex has to cross 15880 for a good rally. Until this range is in place, we should see stock-specific movement.

· Bharti Airtel looks good for targets around 900. Banks can see some buying on short-covering. BHEL, from capital goods space, can target 1900-1950 levels.

· Aurobindo Pharma (296):- Buy for target of 360-365 with SL 280.

· This market is for investors and value-buyers. It is not moving so fast, but it is giving enough time to accumulate and then have big gains. Sir John Templeton, founder of the Templeton Funds, told characteristic of the market with his quote, "Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell."

· At 21000 Sensex level, everybody wanted to buy and now people are fearful. It’s the time one should dedicate money to good stocks and wait patiently, gains themselves will follow us. This market is like a tortoise, rising 8 feet and again falling 6 feet but again moving up perseveringly. We have to adjust with the trend and vice versa will never happen.

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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