Friday, November 21, 2008

Outlook for 21.11.08 & Research Reports Attached



Headlines for the day
    Corporate News Headline
    GVK Power and Infrastructure is planning to raise Rs. 2.4 bn by divesting a 40% stake to private equity funds for its power unit in Punjab. (ET)
    Hindustan Copper is expecting a 10% fall in production in the fiscal year to end-March ´09. (ET)
    Welspun Gujarat Stahl Rohren bagged orders worth Rs. 5 bn in Indian and abroad. (BS)
    Economic and Political Headline
    Inflation declined to 8.9% for the week ended November 8 from 8.98% a week ago. (BS)
    To ensure growth momentum in the employment sensitive micro and small enterprises as well as rural housing sectors, the RBI has asked banks to provide Rs. 30 bn for funds under SIDBI and National Housing Bank. (ET)
    The UK retail sales fell 1% in October, after dropping 0.5% in September, as shoppers bought more food items, offsetting lower spending on electrical goods and clothing. (Bloomberg)
 
NIFTY AND SENSEX SPOT LEVELS TODAY
NSE Nifty Index   2553.15 ( -3.11 %) -81.85       
  1 2 3
Resistance 2623.93 2694.72   2755.23  
Support 2492.63 2432.12 2361.33

BSE Sensex  8451.01 ( -3.68 %) -322.77     
  1 2 3
Resistance 8555.52 8660.02 8779.59
Support 8331.45 8211.88 8107.38
Strong & Weak  futures
 
This is list of 10 strong futures:
 TTML, Hind Petro, GTL, Glaxo, Union Bank, Colpal, IOC, BPCL, MTNL & Sterlin Bio.
And this is list of 10  Weak Futures:
Tata Motors, Suzlon, Orchid Chem, Gitanjali, Rel Capital, Ansal Infra, Purva, Matrix Labs, Uni Tech & Amtek Auto.
 
Nifty is in Down Trend.

NIFTY FUTURES (F & O)

Below 2543-2545 zone, fall may continue up to 2525 level and thereafter it can tumble up to 2493-2495 zone by non-stop.

Above 2560 & 2565 levels, it can touch 2575-2577 zone and thereafter it can jump up to 2595-2597 zone. Problem is that multiple resistance zones at 2605-2607 zone & at 2625-2627 zone will be major barriers too.

Sell if touches 2675-2677 zone. Stop Loss at 2705-2707 zone.

On Negative Side, Multiple support zones at 2453-2455 zone & at 2463-2465 zone. Below these zones, expect panic up to 2423-2425 zone and if breaks & sustains at below this zone then downtrend may continue and have caution.

Short-Term Investors:

Short-Term trend is bearish and target at around 2392 level on down side.

On Positive Side, rallies up to 2982 level can be used to exit. Maintain a

Stop Loss at 3178 level for your short positions too.

BSE SENSEX

Technically selling should continue. If bears reluctant then bulls will try to

rig up and have caution.

Short-Term Investors:

Trend is Bearish & Technical target at around 8183 level on down side. Rallies up to 9974 level can be used to exit. SL at 10571 level.

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The Dow Jones Industrial Average closed at 7,552.29. Down by 444.99 points.

The Broader S&P 500 closed at 752.44. Down by 54.14 points.

The Nasdaq Composite Index closed at 1,316.12. Down by 70.30 points.

The partially convertible rupee <INR=IN> closed at 50.18/22 on yesterday, weaker than its previous close of 50.02/03.

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Sell SENSEX Stocks

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Trading Calls 21st Nov 08

-ve sectors & scripts : Bse Oil&Gas, Metal, Auto, IT

Intra day Trading calls

Short HeroHonda-710 for 690-672 with sl 718

Short Relcapital-421 for 400-383 with sl 430

Short MTNL-69 for 65-63 with sl 71.50

Short Divislab-1133 for 1090-1069 with sl 1150

Short Rolta-165 for 157-155 with sl 169

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-ve to Market

1. Profit booking 2.Continous selling by FII 3. Rs.Vs $ 4. The impact of global recession in economic growth 5. SGX nifty 6. Weak sentiment 7. Asian Markets 8. There is no investment buying by small investors and institution. 9. Heavy slashes in commodity prices (Metal prices) 10. US Market

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Arvind Parekh