Friday, July 25, 2008


NIFTY (4433 -43 pts)

Supp 4365/4300/4250 Res 4480/4540/4600

SENSEX (14777 -165 pts)

Supp 14520/14440/14200 Res 14850/14980/15130

Review of the previous session:-

  • Initial thrust was bullish but markets faced selling pressure from higher levels and 5-day rally was snapped. Banks were under pressure on fears that RBI may increase CRR once again in the RBI monetary policy on 29th. IT and Metals were major losers.

  • BSE Breadth 1258 Adv-1458 Dec NSE Breadth 463 Adv-762 Dec Upper Circuit - 272 Lower Circuit –96

  • BSE Vol Rs 7445 Cr NSE Vol Rs 17670 Cr F&O NSE Vol Rs 58129 Cr

  • FIIs bought Rs 272 Cr in cash market and MFs sold 609 Cr. In F&O, FIIs bought Index Futures worth Rs 544 Cr and sold Stock Futures worth Rs 276 Cr. Their Outstanding position in Futures is 37153 Cr and Options is 26283 Cr.

  • Additional Data:- Gold $924.00/oz Nymex Crude $124.60/bbl

F&O observations:-

  • Long build-up – UniPhos, Chambal, Aptech, NagarFert, SCI, ZEEL, Sasken, LMW, LITL, RNRL, Voltas

  • Short build-up – IRB, ColPal, Omaxe, HindZinc, IndHotel, IDFC, Rcom, Sesa, Ambuja, HCL Tech, Satyam, LT, RPL, Tata Power, TCS, TechMah, YesBank, BankNifty, Bharti Air, IDEA, HDFC, PNB

  • OI 82248 Cr (+261 Cr) Nifty OI Down 1% PCR 1.48 (from 1.45)

  • Tech stocks have seen shorts build-up while Nifty witnessed some profit-taking.

Outlook for 25 July, 2008:-

  • Inflation numbers came out last evening at 11.89 Vs 11.91. RBI is going to announce monetary policy on July 29th and it will be watched pretty closely. Bank stocks would remain in action as many rumours regarding the policy will float in the market.

  • Nifty can correct towards 4360 and 4250 before moving up. Resistance for intraday stands at 4480 and 4540. One is still advised to be in 50-60% cash levels.

  • The movement can become stock-specific. The results season is almost getting over and many companies have reported flat numbers. The street is getting ready for the next clues – further inflation trend, RBI indication through monetary policy and global markets.

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

HDFC Bank (1214):- Go short around 1230-1250 with SL 1300 and target 1100-1120

CAIRN (224): - The stock looks like bottoming out around current levels. One can buy here with SL of 214 and target 242-246.

Catch them falling (Ideas for Investment):-

No Picks

Results Today: - 3IInfo, ABB, APIL, Amara Raja, Ambuja, Andhra Bank, CEAT, Dredging Corp, Educomp, Emami, EIL, GDL, Godrej Cons, Grasim, GSPL, GSFC, Hind Mot, Hind Unilever, HCC, I-Flex, IBulls, Indian Hotel, IndusInd, Inox Leisure, Ion Exch, Ipca, JB Chem, Jindal Steel, Ktk Bank, MRPL, Micro Tech, Mphasis, Mukta Arts, NagarFert, OBC, Redington, RNRL, RPower, Sonata, SRF, Suven, Take Sol, Tata Power, Union Bank, United Brew, Whirlpool

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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