Daily Report November 6th Monday

Nifty (3805) SUPPORT-3783-3756-3719 RESISTANCE-3824-3848-3872 Nifty range 3783-3839 this markets will be slowly moving up with in a range higher opening it would correct & create panic to move close up, lower opening markets will accumulate and move up, so only when the range break and supports are broken on a big way only one should worry about market correction. SL-3708 Closing basis 3679 intraday basis for now. TOP 5GAINERS=REL-JETAIRWAYS-ONGC-GUJAMBCEM-DRREDDY TOP5LOSER=HCLTECH-DABUR-ORIENTBANK-TATAMOTORS-GLAXO. P/E=20.37 p/b=4.92 adv=21 dec=29 NSE adv: 375 dec: 549 -vol-rs.7363crs

Sensex (13130) SUPPORT-13039-12962-12881 RESISTANCE-13185-13275-13364
Sensex for the 2 days has traded above 13000 so that level would become strong support and we should look at higher levels. Any major correction in the markets will give enough indication and I don’t see any major correction now 5-8% is a normal bull market correction which last 3-5-8 days.
8dma=12933 13dma=12875 21dma=12734 34dma=12540 55dma=12217 OPEN=13119 HIGH=13146 LOW=13017 BSE adv: 1116 dec: 1408 -vol-rs.4034crs
Fiis buyer rs.139 crs & Mutual funds buyer rs.146crs on Thursday, Fiis buyer rs.891crs in Nov month and buyer rs.31658Crs in 2006, mutual fund buyer rs.490crs in Nov month. F&O DATA Fiis sell rs.11crs in nifty future and sell rs.57crs in stock future on 3rd November and provisional Fiis buy in cash rs.41crs source NSE website

Day That Ended: Markets was subdued in the entire day of trade and gained in the later part of the day but breath of the markets was negative as declines outnumber advances and there was last minute buying in TECH & CEMENT stocks. RBI, FM speak one voice on overheating of the economy and RBI as per indication would tighten retail loans & consumer credit by other means & ways, ET also reported policy shift which can likely shut down NBFC avenue for banks which many foreign banks use as a bypass for Branch licensing norms & Lend via NBFC. Inflation at 4month high & now many political voices are heard about oil price cut and Govt should think inline of hike in kerosene & Lpg and reasonable cut in Petrol & Diesel as for a common man effect is the same and this undue pricing benefits smuggling & adulteration people only. International markets U.S markets closed lower even after good job data Indian ADRs mixed EURO markets & other world markets closed mostly in positive CRUDE $59.14.

Outlook for Monday: Market to open positive Paper companies have hiked prices and the statement made by a company management says pricing power is high and it is here to stay which would benefit the stocks in that sector BILT-TNPL would be my best pick. BAYERCROP listed in BSE has seen a huge volume rise one can buy the stock in dips at rs.196-202 for 15-20% rise in coming month.

F&O watch: ACC-ALOKTEX-CESC-REL-BILT-BHEL-MAHSEAMLESS-NICOLASPIRMAL-RPL-STAR-TATAPOWER-INDIACEMENT (these stocks has shown unusual rise in volumes in Stock fut and looks bullish also in graph)

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Day Trading calls:
CESC: Buy rs.330-331 target rs.343-346 SL-327 close-334
NDTV: Buy rs.232-234 target rs.244-248 SL-rs.229 close-235
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Counter View: IPOs flush- There are many IPOs which are lined up and in my personnel view many look very expensive and past 3years experience of IPOs has showed that only 2out of 10 IPOs are successful in rewarding shareholder and has given gains over a period of time, in 1980s-1990s we had a system where promoters where not allowed to charge premium for new business and existing business can charge premium fixed by controller of capital issues but the era of free pricing is just fleecing investor. And now we need a system where free pricing should have a basis to fix price as an investor who invest in new business should have a reward over period of time for the risk taken by him & lead managers & bankers like before should provide safety net. In my view there should be some norms which can make promoters answerable but in India never have seen a big politician or Big business person punished for wrong doing it is not they never commit crime it is that our legal system are not competent to deal with irregularities.

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://news.xinhuanet.com/english/2006-11/03/content_5287182.htm?rss=1 china Central bank decides to raise deposit reserve ratio by 0.5
http://www.ndtvprofit.com/homepage/storybusiness.asp?id=34471&template RBI, FM speak one voice on overheating
http://www.ndtvprofit.com/homepage/storybusiness.asp?id=34485&template Reliance to revive the Vimal brand
http://business-standard.com/common/storypage_c.php?leftnm=10&autono=263748 FMCG sector logs 18% growth
http://www.financialexpress.com/fe_full_story.php?content_id=145517 No duty on 217 IT items soon
http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=17163 Pharma industry opposes price controls
http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=17157 S Kumars may buy US-based American Pacific
http://www.businessweek.com/globalbiz/content/oct2006/gb20061003_157876.htm?campaign_id=rss_as Innovation: Outsourcing's Second Wave
http://www.fool.com/news/commentary/2006/commentary06110403.htm DCF-Discounted cash flow analysis requires companies to show you the money -- literally.