Monday, August 04, 2008


NIFTY (4395 -18 pts)

Supp 4330/4270/4230 Res 4460/4498/4540

SENSEX (14577 -78 pts)

Supp 14450/14300/14050 Res 14830/14950/15260

Review of the previous session:-

  • It was a range-bound movement for the whole day. Breadth was positive. Metal and Bank stocks saw some buying interest.

  • BSE Breadth 1845 Adv-805 Dec NSE Breadth 881 Adv-340 Dec Upper Circuit -294 Lower Circuit –81

  • BSE Vol Rs 6008 Cr NSE Vol Rs 13531 Cr F&O NSE Vol Rs 43364 Cr

  • FIIs sold Rs 507 Cr in cash market and MFs sold 46 Cr. In F&O, FIIs sold Index Futures worth Rs 227 Cr and sold Stock Futures worth Rs 348 Cr. Their Outstanding position in Futures is 31403 Cr and Options is 16475 Cr.

  • Additional Data:- Gold $916.30/oz Nymex Crude $125.30/bbl

F&O observations:-

  • Long build-up – Rolta, WWIL, Ranbaxy, YesBank, AlBk, EssarOil, Canbk, IndusInd, Polaris, RajeshExpo, Titan, BongaiRef, HotelLeela, SRF, MRPL, Ispat, Sesa, Bata, Cummins, DCB

  • Short build-up – Crompton, CNXIT, FinTech, SterlingBio, BEL, TCS, ABirlaNuvo, Jet, NIIT, LICHsgFin, McDowell, BHEL

  • OI 60407 Cr (+2234 Cr) Nifty OI Up 1% PCR 1.28 (from 1.35)

Outlook for 5 August, 2008:-

  • 4330 looks like a good support for today and below that only some caution is advised. 4500 may act as major resistance on the upside

  • Investors can use dips to add fundamentally strong stocks. Results season is over. A small percentage of companies have shown impressive growth whereas others have shown flat or negative growth. This was mostly due to forex losses and MTM provisions. One-time provisions in accounts don’t affect long-term growth story for the stocks. So investors have to take informed view and never hurry while picking stocks.

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

Tata Motors (397):- The stock has reacted from near-700 levels to below 400 in just 3 months discounting sluggish auto sector growth, tightening of credit and JLR deal. The worst looks over at current levels and the stock can slowly start upward journey. The fall in crude prices may act as a catalyst for the upside. Technically one can buy with SL 374 and target 480-490 in a month. Buy only in cash.

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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