Friday, May 30, 2008

DAILY REPORT FOR 30 MAY, 2008


NIFTY (4835 -83 pts)

Supp 4800/4760/4700 Res 4875/4910/4950

We have held on to 4800 yesterday and next important support after that is 4760.


SENSEX (16316 -209 pts)

Supp 16190/15950/15570 Res 16400/16560/16670


Review of the previous session:-

  • The pullback continued in first half but supply came from higher levels and we got sold off in second half of the session. Auto, Banking were major losers. LT was the top gainer after announcing 1:1 bonus.

  • BSE Breadth 1115 Adv-1537 Dec NSE Breadth 437 Adv-762 Dec Upper Circuit - 126 Lower Circuit – 144

  • BSE Vol Rs 6230 Cr NSE Vol Rs 18173 Cr F&O NSE Vol Rs 64758 Cr

  • FIIs sold Rs 1277 Cr in cash market and MFs bought 698 Cr. In F&O, FIIs bought Index Futures worth Rs 360 Cr and sold Stock Futures worth Rs 103 Cr. Their Outstanding position in Futures is 36574 Cr and Options is 14345 Cr.

  • Additional Data:- Gold $881.20/oz Nymex Crude $126.62/bbl 1$ = Rs 42.4750

F&O observations:-

  • Bullish build-up – LT, Satyam, Guj Alkali, Ranbaxy, Wipro, PowerGrid

  • Bearish build-up – DCB, Bharti, Titan, CAIRN, Renuka, MTNL, ITC, Suzlon, NTPC, TCS, Tata Mot, Tata Steel, Reliance

  • Indian Volatility Index 28.08 (-13.94%)

  • OI 58507 Cr (-31015 Cr) Nifty OI up 8%

Outlook for 30 May, 2008:-

  • Average of official Inflation estimates for today is 7.96% vs 7.82% last week. Any figure above 8.1% may be alarming.

  • Markets to open positive but 4910 is expected to provide some resistance to early rally. Market is expected to remain range-bound between 4800-4900 until the announcement of inflation. Realty and Banks may see further selling if inflation surprises negatively. Fuel price decision is going to come before 31st May and government is adept in giving such announcements when markets are not trading. So it is advisable to be light on positions going into weekend.

  • JP Associates is looking weak and the stock may reach 190 levels. CMP 225.

  • Sesa Goa (4128):- Buy with SL 4050 for target of 4280-4300 in a day or two. Sesa Goa and Alok Textiles are stocks which one can accumulate in market corrections. They should perform well in longer term.

Results Today (30 May):- Colgate, Dabur Pharma, Deepak Fert, GSFC, GTN Ind, NagarConst, Sanghvi Mov, Sobha, VLS Fin, Sun Pharma, Tata Tea, Punj Lloyd, Indo Tech


Weekly inflation is within RBI target, says IMF http://www.indiainfoline.com/news/innernews.asp?storyId=68761&lmn=1


http://tanmaygopal.blogspot.com/



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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