Daily Report September 11th Monday

“Liquidity is a coward; it runs away at the first sign of a trouble”.
Nifty (3471) SUPPORT-3456-3432-3402 RESISTANCE-3490-3518-3552 Nifty range 3435-3490 and most interesting fact is for the past 5trading day’s nifty has been within this 55point range so anyone would have a doubt if this is consolidation or distribution. Above 3471 if markets trades for a long time it is very bullish and can target higher level and it can break 3500 levels. But any correction till 3340-3310 would be very healthy in my view but there is no sign of this happening till a close below 3435. TOP 5GAINERS=RCOM-ORIENTBANK-HEROHONDA-BHEL-MARUTI TOP5LOSER=JETAIRWAYS-SAIL-ZEETELE-HDFC-INFOSYSTCH. P/E=19.89 p/b=4.55 adv=33 dec=17 NSE adv: 592 dec: 325 -vol-rs.7273crs

Sensex (11918) SUPPORT-11812-11740-11625 RESISTANCE-11994-12068-12180 Sensex has taken almost 34days to travel from 9875-11984=2109 so in my view correction is due and in the next 1-2days & which can last for 8 or 13days (11400-11600) this can be one part of the view and it is not compulsory this should happen.
8dma=11840 13dma=11735 21dma=11601 34dma=11277 55dma=10967 OPEN=11859 HIGH=11940 LOW=11825 BSE adv: 1563 dec: 980 -vol-rs.3459crs
Fiis seller rs.16crs and Mutual funds seller rs.119 on Thursday, Fiis buyer rs.1540crs in Sep month and buyer rs.18929Crs in 2006, mutual fund seller rs.104crs in Sep month. F&O DATA Fiis sell rs.440crs in nifty future and sell rs.336crs in stock future on 8TH September and provisional Fiis sell in cash rs.219crs source NSE website

Day That Ended: Market opened strong on back of Bank of Japan put on hold any interest rate hike and AUTO-PHARMA-CD sector moving up while TECH stock moving down on strong rupee but all these companies would have hedged themselves against any currency fluctuation. Fiis selling in cash & Futures markets, F&O they have sold very heavily is this hedge against FED rate hike or distribution is wat we have to see. International markets U.S markets moved up to close positive EURO markets positive close Indian ADRs closed positive Crude $66.20 and is getting weaker day by day.
Outlook for Monday: Based on global cues markets should open positive and with crude jus moving down & soothing comments from a Federal Reserve official regarding inflation and interest rates should give the much needed breakout from the trading range markets has been in for sometime now failing which only the much needed correction would come.
TEXTILES would be the buzz word soon COTTON YARN-BRANDEDGARMENTS would be the best RAYMOND-SURYALAMXICOT-KKCL-ALOKTEX-MALWACOT-RAJSTANSPINNER-SKUMARS-SOMATEX is few to name. EIDPARRY-HINDSANITARYWARE-MICROINKS-TINPLATE-BEML-BIOCON-BHARTISHIPYARD are good stocks to accumulate in dips TECH stocks would be accumulate in correction which is one sector which can surprise markets and oil & gas sector can be out performer.

http://prabhakar-views.blogspot.com/2006/09/bull-market-ghostspenny-stocks.html would advise everyone to read this.

Counter view: OIL R&M companies BPCL-HPCL-IOC jus a view, Crude has droped to 5Month low which is a very good for these companies and Rupee getting stronger against dollar is also adding a benefit to these companies. There are a few reports suggesting subsidy could decline steeply in next 24 months, kerosene subsidy, which have gone unnoticed. Subsidy on kerosene is likely to be reduced by 40% in 18 months. This, together with a 40% cut in LPG subsidy, elimination of subsidy on auto fuels and change in subsidy sharing mechanism, could steeply reduce R&M (but this I have been hearing for a long time now and if this happens it would entirely change the valuation of these stocks).

http://in.groups.yahoo.com/group/prabhakar-views/join join and view files and links it is like a library.

Disclaimer: trade in stock market is high risk& high return and I do not accept any financial and/or legal responsibility arising the use of the information this is no offer to buy/sell jus my views to share.
http://money.cnn.com/2006/09/08/markets/markets_0530/index.htm?postversion=2006090817
http://www.ml.com/media/67216.pdf World Wealth Report (WWR) 2006