Tuesday, June 10, 2008


NIFTY (4500 -127 pts)

Supp 4450/4400/4240 Res 4540/4585/4615

Nifty made new 2008 low to-date but could not close below 4470 support. It can be a false breakdown but for that we have to wait for 3-4 trading sessions. In that period we can see a bounce which can take us towards 4615 and 4670. Yesterday low around 4411 should be held in that case. One would do well being stock-specific.

SENSEX (15066 -506 pts)

Supp 15000/14840/14670 Res 15200/15410/15530

Review of the previous session:-

  • It was a gap-down opening as all the heavyweights fell like mid-caps in early trade. But markets recovered somewhat after first hour of trade. Recovery to the large extent was seen in Pharmaceuticals. Real estate was a big loser.

  • BSE Breadth 474 Adv-2170 Dec NSE Breadth 137 Adv-1078 Dec Upper Circuit - 78 Lower Circuit – 325

  • BSE Vol Rs 5053 Cr NSE Vol Rs 13300 Cr F&O NSE Vol Rs 58333 Cr

  • FIIs sold Rs 1344 Cr in cash market and MFs bought 1030 Cr. In F&O, FIIs sold Index Futures worth Rs 1077 Cr and bought Stock Futures worth Rs 122 Cr. Their Outstanding position in Futures is 38417 Cr and Options is 19990 Cr.

  • Additional Data:- Gold $898.10/oz Nymex Crude $134.35/bbl 1$ = Rs 42.94

F&O observations:-

  • Bullish build-up – Nalco, CAIRN, Ranbaxy, RPL, Sun Pharma, Hero Honda, Sesa

  • Bearish build-up – Neyveli, HDIL, Axis, DLF, Suzlon, TCS, HCL Tech, Wipro, Reliance

  • OI 72163 Cr (+1384 Cr) Nifty OI up 2% PCR 1.50 (from 1.53)

  • Nifty added more shorts and Discount widened. Reliance saw fresh short build-up. That stock has the key towards next downtrend. It has a plenty of weight in both Sensex and the Nifty. It is trading close to its important support around 2120.

Outlook for 10 June, 2008:-

  • We have to cross 15500-15600 levels on the Sensex quickly in next 2-3 trading sessions or correction may again start. 14677 was the March low and it is still to be broken.

  • In such a market, averaging has to be done at 30-40% corrections and not normal 10%. The rallies will be swift and one has to be nimble to get out and get back again.

  • Any trades, especially on the long side should be done with strict SL as we are still not out of the woods. Aggression should be avoided as far as possible. Time to buy would emerge soon, we should wait.

Ideas for Trading (for short-term position):-

NTPC is taking support around 155 levels and it can target 173-175 levels.

Catch them falling (Ideas for Investment):-

No Picks


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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