Wednesday, August 20, 2008


NIFTY (4368 -25 pts)

Supp 4320/4260/4210 Res 4400/4445/4485

SENSEX (14543 -101 pts)

Supp 14350/14170/14030 Res 14650/14880/15000

Review of the previous session:-

  • Markets opened down and reached the bottom around 2 pm. But some buying emerged after Nifty tested 4320 levels to close just 25 points down.

  • BSE Breadth 1107 Adv-1514 Dec NSE Breadth 453 Adv-744 Dec Upper Circuit -139 Lower Circuit –120

  • BSE Vol Rs 3972 Cr NSE Vol Rs 8929 Cr F&O NSE Vol Rs 43426 Cr

  • FIIs sold Rs 716 Cr in cash market and MFs bought 14 Cr provisionally. In F&O, FIIs sold Index Futures worth Rs 1188 Cr and sold Stock Futures worth Rs 328 Cr. Their Outstanding position in Futures is 32954 Cr and Options is 21932 Cr.

  • Additional Data:- Gold $816.80/oz Nymex Crude $114.53/bbl

F&O observations:-

  • Long build-up – Triveni, Hindalco, Bajaj Hind, BChinni, BRFL, MRPL, NagarFert, Chambal, HCC, Renuka

  • Short build-up – Dabur, BankNifty, KotakBank, NagarConst, HDIL, BankIndia, Axis, PNB, RCom, Satyam, Idea, Union, BhartiAir

  • OI 78508 Cr (+1924 Cr) Nifty OI Up 3% PCR 1.09 (from 1.14)

  • Sugar stocks saw longs added after getting sold off for 3 sessions. Major highlight of the day was telecom sector where new shorts were created. PCR coming close to 1.00 may provide supply from higher levels.

Outlook for 20 August, 2008:-

  • Indices may open flat to negative but 4320 and 4260 are good levels from where we can take support. Overall outlook still looks bearish but a small bounce is a possibility from lower levels.

  • GMR Infra, HCC and Bongaigaon Ref look good for 8-10% rally.

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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