Wednesday, August 06, 2008


NIFTY (4502 +107 pts)

Supp 4460/4410/4360 Res 4540/4600/4670

SENSEX (14961 +383 pts)

Supp 14820/14680/14500 Res 15260/15390/15580

Review of the previous session:-

  • Indices were hesitant in initial trade but 2nd half was brilliant. Banks, Autos and Realty stocks rallied smartly. Sensex inched closer to the 15000 mark but could not close above it. Crude Oil corrected below $120 levels and it helped auto stocks move up sharply.

  • BSE Breadth 1779 Adv-923 Dec NSE Breadth 840 Adv-384 Dec Upper Circuit -280 Lower Circuit –81

  • BSE Vol Rs 6976 Cr NSE Vol Rs 17293 Cr F&O NSE Vol Rs 52692 Cr

  • FIIs sold Rs 397 Cr in cash market and MFs bought 287 Cr. In F&O, FIIs bought Index Futures worth Rs 1012 Cr and sold Stock Futures worth Rs 565 Cr. Their Outstanding position in Futures is 31690 Cr and Options is 17612 Cr.

  • Additional Data:- Gold $886.10/oz Nymex Crude $119.17/bbl

F&O observations:-

  • Long build-up – BomDyeing, HDIL, Minifty, REC, MahLife, IndusInd, BankNifty, DCB, PeninLand, GAIL, AptechT, HeroHonda, MoserBaer, Sobha, HindPetro, JPAsso, Tata Comm, Reliance, Unitech, Wipro, ONGC, OBC, ITC, PowerGrid, M&M

  • Short build-up – Sesa, Gitanjali, Jet, Ster, Tata Power, FinTech, SterlingBio, Rolta, Tata Chem, CAIRN

  • OI 65152 Cr (+4744 Cr) Nifty OI Up 2% PCR 1.35 (from 1.28)

  • Major volume action was seen yesterday as after many sessions we clocked such a big turnover. OI action too didn’t lag behind. Heavyweight Stocks like Reliance and ONGC added nearly 10% OI each indicating a lot of interest in the market as well as those stocks in particular.

Outlook for 6 August, 2008:-

  • Fed has kept the rates unchanged and world markets have rallied on that news. Our markets are expected to open gap-up.

  • 15500-16000 can be the target for the Sensex in this move. Many of our scrips are near target and others should follow soon. Crompton, McDowell, Tata Motors, GT Offshore, Cummins and NIIT Tech have been given recently. As this is a bear market rally, we have to be quick to take profits also. One can think of profit-booking around 15500 levels.

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

Bartronics (179):- The stock can move quickly towards 205-210 levels. Buy with SL 165

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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