DAILY REPORT FOR 3 JUNE, 2008
NIFTY (4739 -131 pts)
Supp 4700/4630/4500 Res 4790/4825/4865
SENSEX (16063 -352 pts)
Supp 15840/15570/15300 Res 16150/16260/16390
Review of the previous session:-
Stocks hit new weekly lows after PM Manmohan Singh made it amply clear that a hike in fuel price is inevitable. Realty, Banking, Power, Metals were major losers. Only Auto index on the BSE could remain in the positive territory after good monthly sales figures from Maruti. Sensex did go below 16000 levels but managed to close above that.
BSE Breadth 600 Adv-2066 Dec NSE Breadth 196 Adv-1024 Dec Upper Circuit - 98 Lower Circuit – 235
BSE Vol Rs 4809 Cr NSE Vol Rs 11826 Cr F&O NSE Vol Rs 35257 Cr
FIIs sold Rs 349 Cr in cash market and MFs bought 9 Cr. In F&O, FIIs sold Index Futures worth Rs 923 Cr and bought Stock Futures worth Rs 390 Cr. Their Outstanding position in Futures is 36853 Cr and Options is 16184 Cr.
Additional Data:- Gold $896.90/oz Nymex Crude $127.76/bbl 1$ = Rs 42.32
Outlook for 3 June, 2008:-
Markets to open negative on weak global cues. One should wait and not try to bottom-fish. A rising market has little resistance and similarly, a falling market has little support. Market has to stabilize and until that happens, correction is going to continue. Sensex may test next support around 15550-15600 levels.
15300 can be considered as very crucial level. Close below that should indicate move below March lows around 14600 in near future.
Ideas for Trading (for short-term position):-
Catch them falling (Ideas for Investment):-
Results Today (3 June):- EIL, DLF
LEFT is not RIGHT: - Last week when fuel price hikes were being considered, Left parties demanded a windfall tax on private oil companies. Politics is more related to personal economics than national economics. All know that just a small raid on some politicians can bring out so much money that all oil company losses will be recovered, why to hike fuel prices then? Well, that will never happen but realistically what we know that fuel price hike is imminent. Now our PM has also accepted that the rising subsidy bill cannot be tolerated forever, there is a need to increase prices. Oil rally towards $135 may be a bubble, but even a fall of $15-20 in crude is not going to make things so easy. Rising deficits because of oil imports can have a negative impact on GDP and we never know when we will give back a percentage or two of growth of GDP. That picture may be harmful from market perspective. So the earlier they increase prices, the better for our economy.
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.