DAILY REPORT FOR 16 MAY, 2008
NIFTY (5115 +104 pts)
Supp 5065/5020/4995 Res 5160/5190/5225
SENSEX (17353 +375 pts)
Supp 17250/17080/16990 Res 17390/17500/17740
Outlook for 16 May, 2008:-
· Markets to open positive but Nifty may face resistance around 5165-5190 for the day. Sensex is expected to be in the range of 17500-17250.
· Inflation figures will be out today and they are expected to be a little higher than previous week. Being a long weekend as a result of holiday on Monday, investors may not take aggressive bets home so it is wise to be light on positions today.
· More puts are adding open interest than calls and it shows a lot of shorts in the system. Short-covering is leading to a rally and absence of bad news has trapped the bears. One more thing is that we wanted a closing past 17300 on the Sensex in 3 days and that has happened yesterday. So now intraday dips may come but as long as we are above 17000, the upside can be 17600 and then 18100.
· ABB (1072):- The stock should bounce back towards 1140-1160 levels in a day or two. Buy with SL 1045.
· IDEA Cellular has closed above resistance at 108 and now it should target 117-119 levels. Keep SL at 105.
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.