Thursday, August 07, 2008


NIFTY (4517 +15 pts)

Supp 4465/4425/4360 Res 4550/4600/4670

SENSEX (15073 +112 pts)

Supp 14890/14720/14500 Res 15180/15430/15550

Review of the previous session:-

  • Markets opened gap-up but could not sustain the higher levels. Sensex faced resistance around 15400. Auto stocks moved up on the back of fall in Crude prices. Tech stocks were surprise gainers. But metals corrected as uncertainty over steel pricing prevailed.

  • BSE Breadth 1266 Adv-1444 Dec NSE Breadth 544 Adv-685 Dec Upper Circuit -227 Lower Circuit –118

  • BSE Vol Rs 7203 Cr NSE Vol Rs 18615 Cr F&O NSE Vol Rs 61180 Cr

  • FIIs bought Rs 1815 Cr in cash market and MFs sold 804 Cr. In F&O, FIIs bought Index Futures worth Rs 2332 Cr and sold Stock Futures worth Rs 152 Cr. Their Outstanding position in Futures is 31268 Cr and Options is 18541 Cr.

  • Additional Data:- Gold $883.00/oz Nymex Crude $118.58/bbl

F&O observations:-

  • Long build-up – Moser, Bajaj Hind, Maruti, NIIT Tech, Balrampur, Triveni, Renuka, Bharat Forge, HOEC, Wipro

  • Short build-up – Tata Power, UniPhos, FinTech, Tata Steel, SunPharma, HCL Tech, HDIL, Union, SBI, PNB

  • OI 67735 Cr (+2583 Cr) Nifty OI Up 3% PCR 1.32 (from 1.35)

  • Tech stocks saw long build-up and stocks like TCS, Tech Mah and NIIT Tech look like getting accumulated. Tata Steel, SAIL had short build-up as they announced of no further hikes for one more month. Sugar stocks saw positive build-up yesterday but that sector always has some political element attached.

Outlook for 7 August, 2008:-

  • Nifty may test 4465 before moving up further. Next 2 trading sessions can be negative for the markets. It may be a consolidation also, but one can take his profits and be in good cash levels to re-enter.

  • Inflation data would be out today and it is expected to be around 12%. Interest rates have started hardening and it may hamper earnings of real estate companies. Keeping away from these stocks for some months can be good for investors.

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

DLF (544):- The stock is near resistance and one can short around 555-565. Downside target can be 465-480. A closing past 580 would negate the view.

TCS (858):- Buy for target of 950-960. Buy around 845-853 SL 815

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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