DAILY REPORT FOR 25 FEBRUARY, 2008

NIFTY: - Open 5183 High 5184 Low 5092 Close 5110 (-81 points)

P/E 21.79 P/B 5.35 Adv 11 Dec 39

Supp 5085/5000/4920 Res 5155/5210/5270

SENSEX: - Open 17515 High 17526 Low 17294 Close 17349 (-385 pts)

Supp 17260/17130/16960 Res 17550/17800/17920

Very irksome:-

· Indices opened sharply lower but no major activity was seen after that. Markets remained range-bound for the whole day.

· Pathetic Volumes - Rs 10201 Cr in spot market and F&O Vol at Rs 36386 Cr.

· Market Breadth– BSE Adv 1008 Dec 1938 Unch 86 NSE Adv 328 Dec 813 Unch 32

· Top Gainers: - Cipla, Nalco, Glaxo, BPCL, Hindalco

Top Losers: - HCL Tech, Bajaj Auto, HDFC Bank, Satyam, ICICI Bank

· FIIs sold Rs 709 Cr and MFs bought Rs 105 Cr in cash market. Foreign investors sold Rs 1069 Cr in both Index and Stock Futures.

· Total OI 77736 Cr (+802 Cr) PCR at 0.92

· Nifty added 4% OI. Basis -17.15

· OI Added:- Glaxo 19%, IFCI 22%, Nicolas 12%, RelCap 26%, Siemens 27%

· OI Shed:- Auropharma 6%, Biocon 10%, Hotel Leela 6%, NIIT 10%, Polaris 6%, RPower 7%

Indian ADRs: - http://tinyurl.com/33m7dx

Global Markets:-

American stocks rose in final 30 minutes as speculation bond insurer Ambac Financial Group Inc. may be rescued overcame concern bank earnings will falter. ICICI Bank ADR fell 4%.

Outlook for Monday:-

· Sensex wasn’t able to close above 18500 last week and has corrected well towards 17200 levels. Now we are near the support level of 17100-17200 and some bounce-back can happen as long as we are above these levels.

· Nifty has support at 5085 and can rally up to 5240-5260 levels on the bounce. Below 5085, psychological support at 5000 can be tested.

· Though a rally is probable on the back of positive US markets and RPower bonus announcement, one need not hurry for buying. An investor will earn in the long run, but short-term is still not so rosy. Any gap-down at this point of time will be very bad for the bulls and panic up to 4800 will be seen in that case.

· Ranbaxy (410):- Buy around 395-399. The stock can target 430-434 levels. Keep SL of 387.

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.

DAILY REPORT FOR 22 FEBRUARY, 2008

NIFTY: - Open 5156 High 5241 Low 5120 Close 5191 (+37 points)

P/E 22.14 P/B 5.44 Adv 32 Dec 18

Supp 5085/5000/4920 Res 5210/5270/5360

SENSEX: - Open 17825 High 17911 Low 17482 Close 17734 (+117 pts)

Supp 17260/17130/16960 Res 17800/17920/18000

5115 provided good support:-

· Though markets opened gap-up, the gains slowly disappeared as indices went into the negative in mid-session. But buying emerged from 5120 levels of the Nifty to take it towards 5200 again. IT stocks were major gainers.

· Volumes - Rs 12193 Cr in spot market and F&O Vol at Rs 43409 Cr.

· Market Breadth– BSE Adv 1657 Dec 1264 Unch 51 NSE Adv 689 Dec 419 Unch 44

· Top Gainers: - Satyam, HCL Tech, Hindalco, Sun Pharma, Nalco

Top Losers: - PNB, ABB, HDFC, GAIL, BPCL

· FIIs bought Rs 209 Cr and MFs bought Rs 140 Cr in cash market. Foreign investors bought Rs 206 Cr in both Index and Stock Futures.

· Total OI 76934 Cr (+1766 Cr) PCR at 0.95

· Nifty OI was almost unchanged. Basis -9.70

· OI Added:- ABB 10%, BEML 22%, BPCL 10%, Canbk 15%, Centext 16%, Cummins 11%, GBN 24%, Hotel Leela 10%, KPIT 20%, PFC 17%, RelCap 10%, RNRL 10%, RPower 12%, Siemens 11%, Suzlon 13%, TechM 14%

· OI Shed:- IndusInd 7%, Infosys 6%, Lupin 10%, Renuka 8%

Indian ADRs: - http://tinyurl.com/33m7dx

Global Markets:-

Dow Jones fell nearly 150 pts led by energy and industrial shares, after a worse-than-forecast manufacturing report and higher stockpiles of oil spurred concern that the economy has fallen into a recession.

Outlook for Friday:-

· Tech stocks helped us stay above 5115 levels on the Nifty but today as the global sentiment is negative, we can see break of that level in early trade. We can once again test 200DMA at 5021. Fall below 5000 can create some panic.

· Banks saw some selling on the back of lending rates cut and one should be a bit careful while buying them as more supply may come.

· We are forming lower tops in the Nifty and one should not hurry for buying as this is a Friday.

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.

WHAT IS A CONTRARIAN VIEW?

· The crowd is usually wrong, go against the crowd.

· When everyone expects the market to decline, prices will rise; and when everyone expects the market to rise, prices will fall. Markets tend to do exactly the opposite of what everyone expects.

· In the early stages of majority opinion, it pays to follow or precede the crowd

· Contrary stock market action pays off only when timed to coincide with the last stages in the consolidation of a widespread majority viewpoint.

· Sell a stock below the anticipated peak price. Always leave a little margin for the person who buys the share from you.

· Buy and sell stocks at intermediate levels. To put it in perspective, "Sell, regret and grow rich."

· The bulls make money, the bears make money, and the pigs go broke.

· Never buy/sell in line with the prevailing market opinion.

· Habitual non-conformity is no more profitable than habitual submission to fashion.

· Buy when others are selling, and sell when others are buying. That is a buy in depressed markets and a sell in boom markets.

· Always ensure that your stand is supported by reason and logic.

· When majority opinion begins to dominate the market, watch for crowding in contrary opinion.

DAILY REPORT FOR 21 FEBRUARY, 2008

NIFTY: - Open 5267 High 5267 Low 5116 Close 5154 (-126 points)

P/E 21.98 P/B 5.40 Adv 8 Dec 42

Supp 5085/5000/4920 Res 5180/5240/5280

SENSEX: - Open 17991 High 17991 Low 17505 Close 17617 (-458 pts)

Supp 17380/17250/17100 Res 17700/17820/18000

Bears in full control:-

· Selling started from the word go and bulls could not really come back into the limelight the whole day. Sensex closed down by 458 points. Realty and Banking stocks took some pounding. Tech stocks were resilient.

· Volumes - Rs 12184 Cr in spot market and F&O Vol at Rs 43987 Cr.

· Market Breadth– BSE Adv 911 Dec 2043 Unch 72 NSE Adv 223 Dec 926 Unch 22

· Top Gainers: - Tata Power, Ster, TCS, Dr Reddy, Infosys

Top Losers: - Nalco, HCL Tech, Tata Steel, Maruti, BHEL

· FIIs sold Rs 266 Cr and MFs bought Rs 256 Cr in cash market. Foreign investors sold Rs 702 Cr in both Index and Stock Futures.

· Total OI 75168 Cr (+107 Cr) PCR at 0.96

· Nifty added 4% OI. Basis -30.45

· OI Added:- Minifty 18%, ACC 13%, Essar Oil 16%, HCL Tech 13%, Maruti 16%, RelCap 18%, Renuka 15%, Sun Pharma 14%

· OI Shed:- BEML 8%, CorpBank 14%, GBN 19%, Nicolas 8%

Indian ADRs: - http://tinyurl.com/33m7dx

Outlook for Thursday:-

· A lot of selling has happened around 5368 levels and if that is not crossed, we will see levels below 4800 for the Nifty.

· 5180 and 5240 are resistance for today. Bulls have to sustain above these levels to post a big rally else 5000 is a possibility today itself.

· DLF (815):- Buy around 800-810 with SL below 770. Target of 880-890 can be reached in a week’s time.

· Tech stocks are witnessing good buying on account of Rupee depreciation. We have to see if that continues. Tech Mah and TCS can be good for investment at current levels.

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.

DAILY REPORT FOR 19 FEBRUARY, 2008

NIFTY: - Open 5304 High 5348 Low 5224 Close 5276 (-26 points)

P/E 22.51 P/B 5.53 Adv 22 Dec 28

Supp 5220/5140/5070 Res 5350/5400/5460

SENSEX: - Open 18228 High 18256 Low 17900 Close 18048 (-67 pts)

Supp 17890/17570/17260 Res 18240/18430/18590

Flattish day:-

· Indices were up in early trade but got sold off as buying interest was not so keen. RPower lifted sentiment of ADAG stocks but overall a flat day for the indices.

· Volumes were pathetic - Rs 10920 Cr in spot market and F&O Vol at Rs 32416 Cr.

· Market Breadth– BSE Adv 1931 Dec 1030 Unch 59 NSE Adv 763 Dec 388 Unch 18

· Top Gainers: - Nalco, M&M, ITC, Hindalco, Hind Unilever

Top Losers: - Unitech, Idea, Ster, Suzlon, TataMotors

· FIIs sold Rs 342 Cr and MFs sold Rs 134 Cr in cash market. Foreign investors bought just Rs 95 Cr in both Index and Stock Futures.

· Total OI 74394 Cr (+866 Cr) PCR at 0.93

· Nifty added 2% OI. Basis -4.45

· OI Added:- Amtek Auto 34%, BEML 26%, Educomp 18%, Shree Cem 13%, Tulip 45%

· OI Shed:- Canbk 7%, Indian Bank 13%, Omaxe 7%

Indian ADRs: - http://tinyurl.com/33m7dx

Outlook for Tuesday:-

· 18300-18500 is good resistance area for the Sensex and if we are unable to cross 18500 in next 2 days, lower levels of 17000-17200 will again be tested.

· Reliance Ind is near a resistance and if it corrects from current levels, Nifty can once again test levels around 5000.

· RPower is going to issue bonus shares to its shareholders. But there are talks like only IPO investors will get the bonus and we may not be able to sell those shares until 60 days after the bonus announcement. So there is some confusion regarding this news of Bonus. One should avoid fresh positions in this stock till meeting on 24 Feb goes through.

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.