Sunday, August 03, 2008


NIFTY (4413 +81 pts)

Supp 4350/4315/4270 Res 4460/4490/4540

SENSEX (14656 +300 pts)

Supp 14430/14280/14030 Res 14830/14990/15260

Review of the previous session:-

  • Indices opened gap down but we recovered smartly from 4235 Nifty level. Some short covering coupled with buying gave us a very positive session in the end. Capital Goods and Power stocks were major gainers. FMCG and Auto were flat.

  • BSE Breadth 1551 Adv-1108 Dec NSE Breadth 741 Adv-481 Dec Upper Circuit -239 Lower Circuit –90

  • BSE Vol Rs 6763 Cr NSE Vol Rs 15704 Cr F&O NSE Vol Rs 48778 Cr

  • FIIs sold Rs 587 Cr in cash market and MFs bought 396 Cr. In F&O, FIIs bought Index Futures worth Rs 460 Cr and sold Stock Futures worth Rs 732 Cr. Their Outstanding position in Futures is 30709 Cr and Options is 16072 Cr.

  • Additional Data:- Gold $917.50/oz Nymex Crude $125.10/bbl

F&O observations:-

  • Long build-up – Triveni, Minifty, Chambal, Renuka, APIL, IndiaInfo, NagarFert, Escorts, BajajHind, Cummins, RNRL, HDIL, JPHydro, MRPL

  • Short build-up – RCom, Bajaj Auto, Maruti, Yes, HindUnilever, NagarConst, TataMot, TataTea, TataPower, SterlingBio

  • OI 58173 Cr (+6473 Cr) Nifty OI Up 7% PCR 1.35 (from 1.30)

  • There were some mega-movers as far as OI activity is concerned. Triveni saw 83% rise in OI and stock was up 4.5%. RCom results were not up to the mark of the street as the stock slipped 12% and 62% rise in OI was witnessed. Nifty added 7% OI indicating bullishness in days to come. Now one can look forward to 4520-4550 levels. 4300 should be regarded as major support.

Outlook for 4 August, 2008:-

  • Indices to open firm but intraday correction not ruled out before further rally. Nifty staying above 4350 would be bullish for the day.

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

Bata (155.85):- Buy for target 172-176 with SL 144

Crompton Greaves (249):- The stock is looking good to reach above 300 levels now. Ideal buy would be around 240-245 with SL 220.

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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