Wednesday, June 11, 2008

DAILY REPORT FOR 11 JUNE, 2008


NIFTY (4449 -51 pts)

Supp 4400/4360/4240 Res 4510/4550/4600

The speed of the decline is pretty slow this time around as compared to January correction. There is no panic yet in the market. Daily we correct by a percent or two then some bounce and again correction starts. So we have to form some kind of bottom to really confirm that the low has been made. This is yet to happen.


SENSEX (14889 -176 pts)

Supp 14760/14640/14430 Res 14960/15150/15300


Review of the previous session:-

  • Sensex hit a new 2008-low at 14645 breaking previous low 14677. But short covering saved us from a big fall and we recovered after 2 pm. Banks and Tech stocks were major losers.

  • BSE Breadth 964 Adv-1667 Dec NSE Breadth 401 Adv-798 Dec Upper Circuit - 102 Lower Circuit – 224

  • BSE Vol Rs 5321 Cr NSE Vol Rs 13798 Cr F&O NSE Vol Rs 53893 Cr

  • FIIs sold Rs 910 Cr in cash market and MFs bought 296 Cr. In F&O, FIIs sold Index Futures worth Rs 1057 Cr and bought Stock Futures worth Rs 99 Cr. Their Outstanding position in Futures is 39163 Cr and Options is 20446 Cr.

  • Additional Data:- Gold $874.50/oz Nymex Crude $135.63/bbl 1$ = Rs 43.17

F&O observations:-

  • Bullish build-up – Ranbaxy, Divi, Chambal, Suzlon, SAIL, Cipla

  • Bearish build-up – GE Ship, ONGC, GMR Infra, Punj Lloyd, HCL Tech, Zee Enter, Rel Infra, ICICI Bank, Bank Nifty

  • OI 74431 Cr (+2268 Cr) Nifty OI up 3% PCR 1.48 (from 1.50)

  • Short-covering was visible in late trade as Nifty discount fell sharply. Some buying is emerging in closing hours for last 2 sessions and it indicates that some bounce is possible before next decline.

Outlook for 11 June, 2008:-

  • Markets to open flat. Nifty range for the day can be 4400 to 4540. Breaking of 4360 may give way to more selling pressure. Today’s closing below 4480 would bring more weakness in days to come.

  • ONGC recovered well yesterday and it was particularly responsible for saving the market from a big crash. It has to be watched as it is getting good support around 800 levels.

  • IIP data is to come out on 12 June and Advance tax payment information around 15th of this month. Investors are already waiting to jump into the market and this data should be watched before taking aggressive positions.

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

Bharti Airtel (776):- Buy around 755-765 with SL 739 and Target 800-810

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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