Sunday, May 25, 2008


NIFTY (4946 -79 pts)

Supp 4930/4900/4825 Res 4985/5010/5040

SENSEX (16649 -258 pts)

Supp 16625/16500/16300 Res 16780/16960/17050

Review of the previous session:-

  • Starting indecisive trade initially, indices got sold off after announcement of inflation. Realty, Metals and Auto stocks faced most of the selling. Oil and gas stocks like CAIRN saw profit-taking as Crude saw some selling pressure from around $135. BPCL, HPCL and IOC were gainers on the expectations of fuel price rise next week.

  • BSE Breadth 795 Adv-1924 Dec NSE Breadth 260 Adv-942 Dec Upper Circuit - 165 Lower Circuit – 158

  • BSE Vol Rs 5389 Cr NSE Vol Rs 12719 Cr F&O NSE Vol Rs 41317 Cr

  • FIIs sold Rs 654 Cr in cash market and MFs bought 750 Cr. In F&O, FIIs sold Index Futures worth Rs 1006 Cr and sold Stock Futures worth Rs 62 Cr. Their Outstanding position in Futures is 45148 Cr and Options is 22151 Cr.

  • Additional Data:- Gold $925.80/Oz Nymex Crude $132.19/bbl 1$ = Rs 42.75

F&O observations:-

  • Bullish build-up – Tulip, Nicolas Piramal

  • Bearish build-up – ITC, PNB, IVRCL Infra, GMR Infra, Tata Motors, ONGC, Maruti

  • Indian Volatility Index 34.03 (-2.38%)

  • OI 81925 Cr (+485 Cr) Nifty OI up 8% PCR 1.31 (previous 1.34)

  • PCR has eased to 1.31 as we are close to important support at 4910-4930 from where we bounced last time around. Any fall below this level may give sharp correction towards 4800. With expiry just 4 sessions away, volatility should be high.

Outlook for 26 May, 2008:-

  • Markets to open negative on weak US Markets and Crude again settling above $130. Sensex has closed below the 2-month support line and any break below 16500 can start a bigger correction. (see the graph)

  • Maruti (789) is looking weak and the stock can target 730-740 levels on the downside. Move past 818 should negate the view.

Results Today (26 May):- eClerx, Eimco Elecon, Elecon Eng, EKC, HTMT Glob, JMC, Kalpataru Power, Lakshmi Vilas, Omaxe, RK Forge, REC, STFC

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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