Daily Report October 5th Thursday

Nifty (3515) SUPPORT-3506-3475-3421 RESISTANCE-3559-3588-3620 Nifty range 3506-3606 with Nifty forming a double top at 3606 and now at 3506(21/09/2006 low) if markets reverse it would become a double bottom with 4th oct low 3508, till 3559 I would call it a technical pull back, but once that is crossed we can see highest gain on a single day. SL-3511 on closing basis & 3475 on intraday basis for target3856 is maintained. TOP 5GAINERS= BAJAJAUTO-HINDPETRO-TATAMOTORS-DABUR-JETAIRWAYS TOP5LOSER=ZEETELE-TATAPOWER-HDFCBANK-SAIL-HDFC. P/E=20.50 p/b=4.66 adv=10 dec=39 NSE adv: 311 dec: 619 -vol-rs.7284crs

Sensex (12204) SUPPORT-12121-12054-11938 RESISTANCE-12312-12448-12512 Sensex entered into 2nd day correction we can see a positive open and move till 12312 but if markets can stay above that only fresh bullishness and short covering would come, this correction should take support near 12120 levels, failing which another 350-400 points correction can happen 11750 can be where we would see solid support (this is in case of panic situation but with bullish global markets it shouldn’t happen but market is always correct )
8dma=12313 13dma=12226 21dma=12077 34dma=11898 55dma=11456 OPEN=12401 HIGH=12419 LOW=12178 BSE adv: 1031 dec: 1439 -vol-rs.3587crs
Fiis seller rs.294crs & Mutual funds buyer rs.19 on Tuesday, Fiis buyer rs.999crs in Oct month and buyer rs.23813Crs in 2006, mutual fund buyer rs.19crs in Oct month. F&O DATA Fiis sell rs.1016crs in nifty future and sell rs.482crs in stock future on 4th October and provisional Fiis sell in cash rs.477crs source NSE website

Day That Ended: Markets corrected and AUTO sector was holding, markets volumes was higher side but for a correction of this magnitude the advance: decline was healthy which suggests the undertone is very bullish. Selling from FIIs is visible in both Cash (477) +F&O (1498) =1975crs on 4th data from NSE website but I would like to watch one more day before reading more into this. International markets U.S markets very bullish and new records is created in DOWJONES, NASDAQ up 2% Indian ADRs positive EURO markets positive ASIAN markets has opened positive Crude $ 60.09 GOLD cutting crucial support now the fall would intensify and that would rally global stock markets.

Outlook for Thursday: Positive global markets healthy correction can bring buying at lower level AUTO-CEMENT is looking good TECH stock are showing nervousness before INFOSYS results which I feel is overdone. TATASTEEL-SAIL are two steel stocks which in my view are looking very good on charts for short term gains one can add them with adequate stop loss. With good auto sales AUTO component sector can’t be lagging behind old favorite RICOAUTO-OMAXAUTO-AMTEKAUTO-BHARATFORGE are few in my mind
BREAKOUT LEVEL views: http://prabhakar-views.blogspot.com due to shortage of time please check the blog for graph of breakout
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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=260731 Tata Steel, the country’s largest private steel company, is in advanced negotiations with the Anglo-Dutch steel giant, Corus Group, for a possible takeover.