Daily Report September 26th Tuesday

“I never try to predict or anticipate. I only try to react to what the market is telling me by its behavior.”-Jesse livemore.

Nifty (3523) SUPPORT-3507-3485-3452 RESISTANCE-3548-3577-3608 Nifty would be strong if 3507 is not cut on the downside cutting which we would see a panic sell off and where we close is so important any close above 3478-3485 is very bullish sign, any close below that we would see once it happens. In case nifty stays above 3507 then upside would be very big led by METALS & POWER sector. TOP 5GAINERS=BPCL-TATASTEEL-HINDPETRO-NATIONALUM-PNB
TOP5LOSER=SUZLON-BAJAJAUTO-GRASIM-ITC-HINDLEVER. P/E=20.21 p/b=4.59 adv=18 dec=32 NSE adv: 326 dec: 592 -vol-rs.6168crs

Sensex (12173) SUPPORT-12130-12058-11932 RESISTANCE-12245-12337-12484 Sensex spending time above 12000 levels is a very good sign healthy market always moves slow and for every 8days would give 3day correction. 12130-12245 if this range is broken on either side the move would be very big and global factors are pointing to positive.
8dma=12102 13dma=11976 21dma=11903 34dma=11697 55dma=11279 OPEN=12257 HIGH=12273 LOW=12145 BSE adv: 998 dec: 1510 -vol-rs.3502crs
Fiis buyer rs.152crs & Mutual funds seller rs.135on Friday, Fiis buyer rs.4383crs in Sep month and buyer rs.21773Crs in 2006, mutual fund buyer rs.332crs in Sep month. F&O DATA Fiis sell rs.425crs in nifty future and sell rs.93crs in stock future on 25th September and provisional Fiis sell in cash rs.273crs source NSE website

Day That Ended: Markets was almost flat to turn negative with profit booking setting in towards F&O settlement, METALS & POWER is seeing heavy built up in OI, there has been a speculation of dreaded terror leader dead and news is that it is boosting sentiment of markets. International markets U.S markets positive with NASDAQ gaining 1.36% Indian ADRs major gainer in tune with global markets, EURO markets mixed ASIAN markets opened flat CRUDE $ 61.38 it saw 10months low before a bounce back.
Outlook for Tuesday: METALS & POWER sector is looking very good, TATASTEEL-NALCO-SAIL-STER-CESC-TATASPOWER-NTPC is where action can become large and CG sector EMCO-BEL-BEML also started to see good activity. In stock markets u should decide to which group u belong to day trader, speculator, gambler, value investor, swing trader & E.T.C and suitably follow as if one doesn’t understand this basic difference money can’t be made and below I have given Jesse livemore link please read.

STOCK TECK view: http://prabhakar-views.blogspot.com NATIONALUM(209) target rs.259-277 this stock moved from rs.152 to 334 in 29week and reacted till rs.185 and now 20weeks has happened so 80% of price and time has been retraced, and we would see a techincal bounce back & F&O indicators are pointing towards that and rs.215 would be a very crucial level to watch. This stock has a potential of giving above 20% return and one should have adquate stop loss so that he has a favorable risk reward ratio.
http://in.groups.yahoo.com/group/prabhakar-views/join

Counter view: Jesse livermore speculator guidelines. 1) Don’t lose money.
Don’t lose your stake. A speculator without cash is like a store-owner with no inventory. Cash is your inventory, your lifeline, and your best friend. Without cash, you are out of business. Don’t lose your line. There is no place in speculating for hoping, for guessing, for fear, for greed, for emotions. The tape tells the truth. 2) Always establish a stop.
A successful speculator must set a firm stop before making a trade and must never sustain a loss of more than 10 percent of invested capital. I have also learned that when your broker calls you and tells you he needs more money for a margin requirement on a stock that is declining, tell him to sell out the position. When you buy a stock at 50 and it goes to 45, do not buy more in order to average out your price. The stock has not done what you predicted; that is enough of an indication that your judgment was wrong. Take your losses quickly and get out. Remember, never meet a margin call, and never average losses. Many times I would close out a position before suffering a 10 percent loss. I did this simply because the stock was not acting right from the start. Often my instincts would whisper to me: “J.L., this stock has a malaise, it is a lagging dullard. It just does not feel right,” and I would sell out of my position in the blink of an eye. I absolutely believe that price movement patterns are repeated and appear over and over with slight variations. This is because humans drive the stocks, and human nature never changes. Take your losses quickly, Easy to say, but hard to do. http://in.groups.yahoo.com/group/prabhakar-views/files/daily%20update FILE NAME JESSE LIVEMORE jus download and read more.

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.