Friday, July 18, 2008


NIFTY (3947 +131 pts)

Supp 3900/3850/3790 Res 4000/4060/4125

SENSEX (13111 +536 pts)

Supp 13000/12890/12750 Res 13280/13470/13560

Review of the previous session:-

  • Market opened very firm and remained that way the whole day. Banks, Realty, Power, Capital Goods and Auto all flared up. Metals were losers. Inflation data came at 11.91% Vs 11.89% last week suggesting some lessening of inflation worries.

  • BSE Breadth 1536 Adv-1081 Dec NSE Breadth 789 Adv-402 Dec Upper Circuit - 122 Lower Circuit –145

  • BSE Vol Rs 4865 Cr NSE Vol Rs 11707 Cr F&O NSE Vol Rs 46300 Cr

  • FIIs bought Rs 310 Cr in cash market and MFs bought 168 Cr. In F&O, FIIs bought Index Futures worth Rs 2433 Cr and sold Stock Futures worth Rs 56 Cr. Their Outstanding position in Futures is 33087 Cr and Options is 20698 Cr.

  • Additional Data:- Gold $970.70/oz Nymex Crude $129.29/bbl

F&O observations:-

  • Bullish build-up – LIC Hsg, Mphasis, Polaris, NagarConst, Omaxe, Punj Lloyd, Rel Infra, Tata Motors, DCB, Unitech, RelCap

  • Bearish build-up – Biocon, Balrampur Chinni, Karnataka Bank, Rolta, Ster Ind

  • OI 67251 Cr (+778 Cr) Nifty OI Down 8% PCR 1.08 (from 0.96)

Outlook for 17 July, 2008:-

  • Inflation data was not negative as far as market sentiment is concerned. More cues about inflation will appear from next week data and RBI policy, late this month.

  • Markets are always ahead of us all and we need to follow markets as the vice versa doesn’t happen. We have closed above 13000 once again and when the rally continues for a day or two, shorts will be forced to cover up.

  • Indices to open gap-up today on the back of strong global markets. Nifty close around 4050 today will make things very positive for the coming week. In that case, we may even see test of 4200 happening in the next week itself.

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

Crompton Greaves (227):- Buy around 224-230 for 270-275 levels as price objective. SL can be kept at 208.

Catch them falling (Ideas for Investment):-

Thermax (375.60):- The stock has lost nearly 60% from its all time high around 940. It looks attractive for investment. One can buy for target around 450-475 in 1-2 months timeframe.

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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