Tuesday, May 13, 2008

DAILY REPORT FOR 13 MAY, 2008

NIFTY (5012 +30 pts)

Supp 4970/4945/4910 Res 5035/5065/5100

SENSEX (16860 +123 pts)

Supp 16760/16670/16540 Res 16980/17060/17210

Outlook for 13 May, 2008:-

· Nifty got sold off in early trade yesterday but pulled back from support levels around 4910 to close above 5000 level. India’s Industrial Production grew at the slowest pace since 2002. But it was because of a higher base effect and markets quickly bottomed out after the announcement.

· Sensex closed the gap at 16570 to 16611 yesterday and a pullback rally did happen after that. It may continue but we have to cross 17300 on the Sensex in next 3 trading sessions to show any kind of strength. For today’s trading we can consider 16670 as a point where intraday correction can stop.

· It is better to be stock-specific for the time-being as indices can become a bit volatile. Auto stocks like Maruti, M&M and Tata Motors can rally. Suzlon, IDEA, GDL, Glenmark are other stocks that are looking good and can give 6-8% returns from current levels.

· HCL Tech (287):- Buy with SL of 277 and target 320-330.


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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