Wednesday, June 04, 2008

DAILY REPORT FOR 4 JUNE, 2008


NIFTY (4715 -24 pts)

Supp 4670/4630/4540 Res 4755/4790/4835


SENSEX (15962 -100 pts)

Supp 15805/15570/15300 Res 16000/16180/16320

Sensex has good support around 15570 and 15300 levels.


Review of the previous session:-

  • It was a sharp down opening but stocks recovered from early lows as Reliance led the way with Cement stocks. Power stocks lost the most as Reliance Infra, Power Grid and Tata Power were top losers on the Nifty. Though it was a small recovery, we could not trade positively the whole day and Sensex closed below 16000.

  • BSE Breadth 847 Adv-1818 Dec NSE Breadth 347 Adv-862 Dec Upper Circuit - 89 Lower Circuit – 194

  • BSE Vol Rs 5252 Cr NSE Vol Rs 13020 Cr F&O NSE Vol Rs 40448 Cr

  • FIIs sold Rs 1020 Cr in cash market and MFs bought 262 Cr. In F&O, FIIs sold Index Futures worth Rs 1394 Cr and sold Stock Futures worth Rs 96 Cr. Their Outstanding position in Futures is 38476 Cr and Options is 17267 Cr.

  • Additional Data:- Gold $885.50/oz Nymex Crude $127.76/bbl 1$ = Rs 42.58

F&O observations:-

  • Bullish build-up – Essar Oil, Praj, ACC, CAIRN, Ranbaxy, Divi

  • Bearish build-up – Sesa, Maruti, RelCap, Sterlite Ind, JPAsso, IVRCL Infra, Tata Tea, PowerGrid, Dena, Union, Neyveli, SCI, Balrampur

  • Indian Volatility Index 28.49 (-3.39%)

  • OI 66050 Cr (+2670 Cr) Nifty OI up 5% PCR 1.67 (from 1.70)

  • Increasing shorts in Nifty with PCR high at around 1.67 may give way to some bounce in Nifty. Though it looks like many shorts are building up, bottom fishing is still not advised.

Outlook for 4 June, 2008:-

  • Sensex opening above 16000 will be positive and good recovery can be seen. This is a good place for bounce but one should be selective while buying.

  • Nifty should not break yesterday’s lower levels of 4630. 4770 to provide intraday support and recovery towards 4755 is possible.

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

Suzlon (258):- The stock may retrace towards 280-285 levels. Buy with SL of 247.

Catch them falling (Ideas for Investment):-

Alok Textiles (61.55):- Alok has the largest textile processing capacity in India and has impressive clientele like Wal-mart, GAP and JC Penny. Recently Alok has entered into real estate also and they are planning to develop SEZs. They intend to roll out 500 retail stores by FY10. The stock is cheaply priced around 61 and one should accumulate the stock for long-term.


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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