Daily Report November 2nd Thursday

Nifty (3767) SUPPORT-3748-3422-3691 RESISTANCE-3798-3822-3850 Nifty range 3748-3822 but nifty staying above 3763 is most important for intraday players below which 3744-3748 levels can be possible, till markets holds above 3691 on a closing basis we would head higher levels, & till now we haven’t closed above 3774 which is also important for short term. TOP 5GAINERS=ZEETELE-RELIANCE-RCOM-VSNL-BHARTIATRL TOP5LOSER=HDFC-CIPLA-ONGC-HCLTECH-SATYAMCOMP. P/E=20.37 p/b=4.84 adv=31 dec=19 NSE adv: 476 dec: 449 -vol-rs.7754crs

Sensex (13033) SUPPORT-12932-12844-12720 RESISTANCE-13139-13228-13441 Sensex now should move above 13000 levels, till now sensex hasn’t traded fully above 13000 which should happen soon. Sensex has given a small inverse head & shoulder which can target 13441 or even higher levels where the support is 12900 breaking that would negate the IHS & we need a new high to sustain higher levels.
8dma=12836 13dma=12832 21dma=12656 34dma=12470 55dma=12154 OPEN=12992 HIGH=13050 LOW=12937 BSE adv: 1262 dec: 1254 -vol-rs.4108crs
Fiis buyer rs.323 crs & Mutual funds buyer rs.73crs on Tuesday, Fiis buyer rs.323crs in Nov month and buyer rs.31150Crs in 2006, mutual fund buyer rs.16crs in Oct month. F&O DATA Fiis buy rs.402crs in nifty future and buy rs.74crs in stock future on 1st November and provisional Fiis buy in cash rs.83crs source NSE website

Day That Ended: Market opened positive and made further gains after Reliance Industries announced it almost doubled its estimated gas reserves at D6 block in the Krishna-Godavari basin to 11.3 trillion cubic feet, from the earlier 6 trillion cubic feet, company has also more than doubled the estimated expenditure on bringing the gas onshore to $5.2 billion from an earlier estimate of $2 billion. The upmove was on lower volumes with positive advance: decline ratio, Auto numbers showed growth and Maruti surprised with MOM increase as SEP month sales is normally highest due to depreciation benefits & high sales in Oct than Sep shows the strength of the economy. International markets U.S Stocks Drop as Manufacturing Growth Slows & ended lower for 4th day, Indian ADRs corrected with U.S market trend EURO markets ended with gains while ASIAN markets has opened weak CRUDE $ 58.65.

Outlook for Thursday: Markets can have a flat opening & advance higher levels AUTO sales and CEMENT dispatch numbers are good with price hike in Mumbai region and NALCO has said it would raise Alumina prices & JSW Steel hikes galvanised steel prices by rs.1000 on higher input cost. PHARMA stocks corrected after new drug policy where prices of 886 drugs where cut this would effect jus few companies which generate higher revenue from Indian operation while many companies have increased there global markets presence with M&A so those companies wont be effected much. Hindalco joint venture with Almex USA Inc for the manufacture of high strength aluminium (HSA) alloys for applications in the aerospace, sporting goods and surface transport industries.

Intraday trading idea:
TATACHEM: (233) SL-229 Buy around rs.232 target rs.238-240
HINDALCO: (190) SL-188 target rs.196-199

BREAK out levels: http://prabhakar-views.blogspot.com Gammon India: (405) the stock from a low of rs.358 targeted rs.409 in just 4trading days it would now face intraday resistance at rs.415 & short term resistance at rs.422 above which the stock can easily target its all time high rs.587 also this would be for investor looking at more than 6-8months of invesment period.
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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=263557 Reliance doubles gas estimates, to raise $2 bn
http://www.bloomberg.com/apps/news?pid=20601091&sid=aHYAbDWZYSJg&refer=india India's October Vehicle Sales Surge, Driven by Festival Demand
http://economictimes.indiatimes.com/articleshow/287555.cms Tech hub India draws 25% of global R&D funds
http://www.businessstandard.com/common/storypage.php?autono=263525&leftnm=1&subLeft=0&chkFlg Hindalco in JV with US firm