Daily Report October 26th Thursday

Nifty (3657) SUPPORT-3644-3618-3584 RESISTANCE-3689-3725-3774 Nifty staying above 3644 is bullish below which profit booking would push markets down & with last day for F&O settlement markets is headed for a major uncertain day. 3856 by month end seem to be a distant target now with just 4days to go so one should use strict stop loss for long position. TOP 5GAINERS= HINDPETRO-HCLTECH-BAJAJAUTO-REL-HDFCBANK TOP5LOSER=ABB-ICICIBANK-PNB-CIPLA-SAIL. P/E=20.79 p/b=4.72 adv=13 dec=36 NSE adv: 300 dec: 639 -vol-rs.5104crs

Sensex (12623) SUPPORT-12540-12420-12340 RESISTANCE-12745-12848-13020 Sensex has closed near the gap(12558-12612) which itself is a very bad sign so watch for a day for clear picture of markets and any gap down open would be bad for markets in coming days. After a long time I have a bearish view about markets but things are not looking so bad & we have to remember that Sensex has created a new high while Nifty hasn't so there are bright chances of Nifty soon seeing new high.

8dma=12775 13dma=12630 21dma=12516 34dma=12303 55dma=11985 OPEN=12757 HIGH=12766 LOW=12612 BSE adv: 981 dec: 1428 -vol-rs.2415crs

Fiis seller rs.23 crs & Mutual funds seller rs.4 on Saturday, Fiis buyer rs.5837crs in Oct month and buyer rs.28561Crs in 2006, mutual fund seller rs.384crs in Oct month. F&O DATA Fiis sell rs.437crs in nifty future and sell rs.106crs in stock future on 23rd October and provisional Fiis buy in cash rs.58crs source NSE website

Day That Ended : Markets corrected as profit booking and FED meeting on rate hike and long holiday made many to unwind there speculative position and the rollover has been very low indicating uncertain times ahead. Volumes has been low and with just one more day to go for F&O rollover there seem to be wait and watch approach. India 's exports shot up 41.28% in September 2006 to $10.3 billion compared to $7.29 billion in the same month last year. Fed holds rates steady, the Federal Reserve decided to remain on the sidelines Wednesday, keeping interest rates steady but leaving the door open for further increases if inflation does not behave. International markets U.S markets closed positive Indian ADRs mixed EURO markets closed positive ASIAN markets closed positive crude $61.63.

Outlook for Thursday: Market to open flat with RIL fire loss which would be negative sentiment & AUTO two wheeler posting disappointing results, margins are failing due to aggressive pricing and rise in raw material costs BAJAJAUTO family feud headed for more uncertain times, with quarterly policy review on October 31, Reserve Bank of India (RBI) all these factors are to be watched. There are many stocks which have shown growth & which would sustain and with jus few more days for month end many results yet to be declared it would be better to wait before investing aggressive.

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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://business-standard.com/common/storypage_c.php?leftnm=10&autono=262750 first 111 companies with their last quarter results that marked average growth of 66.03 per cent in net profit on the back of 41.40 per cent rise in net sales has begun to subside with more results trickled in.

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=262880 Jamnagar fire may halve Reliance refining output

http://business-standard.com/common/storypage_c.php?leftnm=10&autono=262882 Hero Honda's operating margin fell to 12.7 per cent in July-September 2006 from 15.4 per cent in the same quarter last year, while TVS' margin fell to 5 per cent from 8 per cent during the period.