Daily Report October 4th Wednesday

Nifty (3569) SUPPORT-3560-3538-3511 RESISTANCE-3605-3639-3688 Nifty range3560-3639, till markets hold 3511 on closing basis and 3475 on intraday basis these small corrections would be buy on dips, markets has run into cautious note with result season ahead but there is a sizable drop in volumes which suggest many haven’t returned from holiday. . SL-3511 for target3856 is maintained. TOP 5GAINERS=SUZLON-DABUR-BAJAJAUTO-TATAMOTORS-NATIONALUM TOP5LOSER=HDFC-HINDLEVER-CIPLA-RANBAXY-TATAPOWER. P/E=20.82 p/b=4.73 adv=24 dec=26 NSE adv: 491 dec: 429 -vol-rs.5990crs

Sensex (12366) SUPPORT-12310-12238-12125 RESISTANCE-12485-12624-12705 Sensex 12330 levels is acting as strong support +-20 points wouldn’t make a big difference & I would be happy is the gap closes and the up move would be even more healthy, 8days sensex has stayed above 12000 mark previous occasion 9days these are few things which a long term investor would be watching and traders will never pay attention, but it gives so much of confidence when markets is able to sustain few levels.
8dma=12321 13dma=12208 21dma=12063 34dma=11875 55dma=11421 OPEN=12473 HIGH=12489 LOW=12343 BSE adv: 1413 dec: 1052 -vol-rs.3092crs
Fiis buyer rs.1293crs & Mutual funds buyer rs.121 on Friday, Fiis buyer rs.1293crs in Oct month and buyer rs.24107Crs in 2006, mutual fund buyer rs.1339crs in Sep month. F&O DATA Fiis sell rs.423crs in nifty future and sell rs.78crs in stock future on 3rd October and provisional Fiis sell in cash rs.231crs source NSE website

Day That Ended: Markets opened on a positive with profit booking and weak International markets forced a negative close, AUTO sales figure which was very good TVSMOTORS clocked highest ever sales in a single month & if one where to see Sep2005 was highest Auto sale in last year and now if Sep2006 figure crosses that it would prove the strong growth of the sector& economy. International markets Dow Jones Industrial Average logging a new record close ended up 56.99 points at 11,727.34, surpassing its previous record closing high of 11,722.98 & session high of 11,758.95, topping the previous all-time high of 11,750.28 both reached on Jan. 14, 2000. Crude $ 58.54 near to its 14month low, GOLD down 3.61% & it would be jus matter of time gold will follow crude in my view.

Outlook for Wednesday: Bullish outlook with CEMENT-AUTO sales numbers pointing to great month & report that TATASTEEL H1 production was up 10% & they have hiked prices would be a big booster for METAL sector. Markets near its all time high has changed preference from index stocks to solid growth stocks so one shouldn’t worry about index which is just a movement of 30-50 stocks
VALUE picks: ASTROMICROWAVE-WOCKHARDPHARMA-SAIL-NATIONALUM-CASTROL-MANGALAMCEMENT-BEML
BREAKOUT LEVEL views: http://prabhakar-views.blogspot.com SAIL above rs.80 is a major breakout would give 8-10% in 5-7trading days. WOCKHARDPHARMA above rs.412 is a major breakout should target rs.440-450 in 8-10 trading days. TATASTEEL will face minor resistance at 570above rs.542.
UPDATE on previous calls: BEML can target rs.1015 where there is a minor resistance above which the stock is a major breakout and I still maintain a high target of rs.1500 for this stock in medium term. TVSMOT target can be revised upward to rs.170.
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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.