Saturday, August 09, 2008


NIFTY (4529 +6 pts)

Supp 4460/4400/4350 Res 4580/4650/4680

SENSEX (15167 +50 pts)

Supp 15030/14860/14500 Res 15310/15500/15780

Review of the previous session:-

  • Nifty opened down and moved towards 4460 in mid-trade but no selling was witnessed after that as we moved into positive territory. Metals, Banks and Capital Goods stocks moved up in late trade.

  • BSE Breadth 1323 Adv-1405 Dec NSE Breadth 573 Adv-639 Dec Upper Circuit -214 Lower Circuit –107

  • BSE Vol Rs 5432 Cr NSE Vol Rs 12533 Cr F&O NSE Vol Rs 47120 Cr

  • FIIs sold Rs 142 Cr in cash market and MFs bought 16 Cr. In F&O, FIIs sold Index Futures worth Rs 461 Cr and sold Stock Futures worth Rs 483 Cr. Their Outstanding position in Futures is 33242 Cr and Options is 20021 Cr.

  • Additional Data:- Gold $864.80/oz Nymex Crude $115.20/bbl

F&O observations:-

  • Long build-up – SCI, Chambal, Kotak, GNFC, RNRL, NagarFert, RelCap, Sasken, HDIL, NagarConst, LT, AptechT, Fintech, Tata Chem

  • Short build-up – IndHotel, Axis, BankIndia, CAIRN, IDFC, MRPL, Voltas, BPCL, Siemens, HindPetro

  • OI 73021 Cr (+2508 Cr) Nifty OI Up 3% PCR 1.32 (from 1.33)

  • CAIRN has witnessed short positions and the stock looks weak. It may correct towards 210 if it can’t cross 245 levels.

Outlook for 11 August, 2008:-

  • Dow Jones closed up by more than 300 points on Friday as Crude dropped by $3 to $115/barrel.

  • Having consolidated for 3 trading sessions, Nifty looks to open higher today. It can breach 4600 resistance but supply from around 4680 is not ruled out.

  • Next week will have SEBI meeting on KYC norms for FIIs, norms related to P-Notes and Securities Lending & Borrowing. Data will be out for IIP. India Inc has had a sluggish first quarter in FY09, many people are stuck at higher levels which can bring in overhead supply, the risk-reward ratio is heavier on the risk side and so one needs to have a cautious view at higher levels.

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

S Kumars Nationwide (74):- Buy for target 88-90 with SL 67

Catch them falling (Ideas for Investment):-

No Picks

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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