Wednesday, July 30, 2008


NIFTY (4313 +124 pts)

Supp 4270/4235/4185 Res 4355/4395/4460

SENSEX (14287 +496 pts)

Supp 14200/14080/13950 Res 14420/14610/14830

Investing is an on-going exercise and not a momentary one. Bear markets are nicest times to build a portfolio. The bear market may last for 6 months or for a year or two also but if one takes a longer-term view (around 3-5 years) and starts investing in bear market, one will be rewarded fairly when the market takes a U-turn.

Review of the previous session:-

  • Banks, Realty and Metals were top gainers in a session which was characterized by consistent buying all day through. Fall in crude prices gave further boost to buying.

  • BSE Breadth 1784 Adv-857 Dec NSE Breadth 885 Adv-334 Dec Upper Circuit -226 Lower Circuit –93

  • BSE Vol Rs 5353 Cr NSE Vol Rs 12734 Cr F&O NSE Vol Rs 58543 Cr

  • FIIs sold Rs 628 Cr in cash market and MFs bought 672 Cr. In F&O, FIIs bought Index Futures worth Rs 1433 Cr and bought Stock Futures worth Rs 13 Cr. Their Outstanding position in Futures is 38248 Cr and Options is 26337 Cr.

  • Additional Data:- Gold $915.40/oz Nymex Crude $124.80/bbl

F&O observations:-

  • Long build-up – RNRL, Union, RPower, LITL, Nucleus, GT Offshore, Divi, EKC, Lupin, CAIRN, CorpBank, Sterling Bio

  • Short build-up – Bata, Zee Enter, ITC, NTPC, Ballarpur, JSW, WelGuj

  • OI 83546 Cr (+3300 Cr) Nifty OI Down 1% PCR 1.33 (from 1.25)

  • Nifty saw a lot of short-covering. Put Call Ratio jumped to 1.33 from 1.25 as written calls looked to have been squared off.

Outlook for 31 July, 2008:-

  • Sensex showed strength and did cross 14210 yesterday. Today being expiry day, the volatility would be high and we are now up against pretty good resistance at 14610. Closing past this level may mean that we can cross the previous highs around 15130 in August.

  • Bata, Rolta, TCS, Crompton Greaves, Great Offshore are scrips which one can look for buying for next month or two. Intraday dips would provide good opportunities for buying.

  • Today Nifty may remain between 4355 and 4270 in the first half. Break of any level should give move towards that direction. Caution is advised only below 4235.

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

McDowell (1281):- Buy with SL 1230 for target 1380-1400

Catch them falling (Ideas for Investment):-

No Picks

Results Today: - AdiBirlaNuvo, Adlabs, Amtek Auto, Apollo Hosp, Arvind Ltd, Bajaj Hind, Balrampur, BASF, BEML, Bharat Forge, Castrol, DLF, Essar Oil, Federal Bank, FinTech, Fino Cables, Gammon, HCL Tech, HEG, HT Media, Ispat, Jai Corp, Jindal Saw, JSW, Kalpataru, KEC Inter, Kesoram, MTNL, Moser Bear, Nagarjuna Const, Nalco, Navneet, Nestle, Opto Circuit, Parsvnath, Raymond, STFC, Sterling Bio, Tata Steel, Titan, Tube Inv, TV Today, Videocon Ind, Yes Bank

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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