Daily Report September 20th Wednesday

Nifty (3457) SUPPORT-3439-3411-3388 RESISTANCE-3490-3515-3541 Nifty 3431 holds the key for Wednesday & till we don’t break 3370 on the downside these correction are healthy and gives chance to buy in short term. If markets trade around 3430 for first one hour of trade the up move would be big. TOP 5GAINERS=SATYAMCOMP-RCOM-TCS-ABB-ICICIBANK TOP5LOSER=ZEETELE-IPCL-VSNL-JETAIRWAYS-TATAMOTORS. P/E=19.83 p/b=4.51 adv=5 dec=45 NSE adv: 259 dec: 660 -vol-rs.7518crs

Sensex (11970) SUPPORT-11902-11836-11705 RESISTANCE-12084-12140-12238 Sensex today correction made all investor nervous and FED rate meeting on SEP20 and we here would know only on SEP21 made nervous operators to unwind there speculative position.
8dma=11881 13dma=11879 21dma=11771 34dma=11540 55dma=11166 OPEN=12103 HIGH=12152 LOW=11915 BSE adv: 944 dec: 1589 -vol-rs.3704crs
Fiis buyer rs.495crs & Mutual funds seller rs.2on Monday, Fiis buyer rs.3430crs in Sep month and buyer rs.20819Crs in 2006, mutual fund buyer rs.482crs in Sep month. F&O DATA Fiis buy rs.149crs in nifty future and sell rs.113crs in stock future on 19th September and provisional Fiis buy in cash rs.174crs source NSE website

Day That Ended: Markets opened on a strong note and selling near last 45mins send the markets down 2.5% from the high and the fall has been with low volumes and data suggests that lack of follow up buying at higher levels and unwinding of speculative positive before FED meet on SEP20. Rumour doing rounds 1) hedge fund Amaranth Advisors lost $5 billion last week on natural gas trades 2)state of emergency was declared in Thailand and rumors of a military coup followed. Crude $61.60 almost near (58.95)52week low International market U.S markets closed weak jus a day before FED meet EURO markets in deep losses ASIAN markets Indian ADRs were weak after THAI coup as all ASIAN ADRs were facing selling pressure and Dollars is getting stronger against major ASIAN currencies.
Outlook for Wednesday: Volatile day ahead with both short (and) long traders would like avoid overnight position as last FED meet after day 100points rise in nifty was seen and short didn’t get chance to square there position. If u r trader avoid markets as THAI effect on our markets is unknown & markets never like uncertainty THAI-FED-HEDGEFUND. Investors shouldn’t worry about markets correction as these give opportunity to buy good stocks as reasonable levels BIOCON-BEML-RANBAXY-RAYMOND-WOCKHARD-EMCO-HINDSANITARY-GAMMON-TATACHEM-BATAINDIA-CESC-GACEMENT-HPCL-WIPRO-TCS.

STOCK TECK view: http://prabhakar-views.blogspot.com SATYAMCOMP(837) nearing its double top rs.890 which is 52week high this stock all time high is rs.1400above and with markets correcting also this one stock has been stable and in overnight U.S markets also the stock has gained all inspite of rumour denied by the company about any possible takeover, Watch out for a breakout soon.

Counter view: News of hedge funds losing almost 50% in commodity trading has sent a shock wave into that industry which hasn’t been regulated in any markets. We have seen high Crude, Gold & other commodity prices due to excess speculation from these funds jus few days back I had mentioned about gold falling something in graph says the fall will be big and it can happen if these hedge funds reduce there risky assets. Now it has time and again proved that speculation has never been successful & losers are never talked about, 99% lose 1% gain it is jus like a lottery. Buffett's way of thinking, you shouldn't dream of owning a stock for 10 minutes that you're not prepared to hold for 10 years. Day-to-day movements in the stock price are irrelevant; so are ups and downs in a company's quarterly earnings. "An investor should act as though he had a lifetime decision card with just 20 punches on it," Buffett says. That means buying a few good companies and sticking with them for the long haul.

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.

http://www.cbsnews.com/stories/2006/09/19/ap/business/mainD8K81GMG0.shtml Stocks Off on Rumors of Coup in Thailand.
http://www.kfoxtv.com/news/9884808/detail.html Military Coup Reported In Thailand
http://www.bloomberg.com/apps/news?pid=20601083&sid=axAUZ5Up1lrM&refer=currency Australian Dollar Falls on Thai Coup and Weak Commodity Prices
http://economictimes.indiatimes.com/articleshow/2006794.cms Goldman Sachs to invest $1bn in India.
http://economictimes.indiatimes.com/articleshow/2007983.cms Wockhardt to sell Dumex's dairy unit.