MARKET OUTLOOK - 6th NOV. 2007

Market likely to open and trade firm today. Sensex has immediate resistance at 19900 and support at 19390.Sensex may touch 20400 if close/sustain above 19900.Sensex may touch 19000 if close/sustain below 19390.

NIFTY(5847.30)- Resistance-5924,6000 Support-5795,5741

Buy RPL Above 272 For Target of 277 & 288

Buy Sterlite Optical Above 302 for target of 312& 325

Buy Petronet Above 93 For Target of 96 & 99

Buy Powergrid Above 151 For Target of 157 & 162

RNRL Given bullish brekout see level of 194 & 210 Keep SL of 168

Tata Power Given good Breakout look for Target of 1407 & 1448 !!!!! Keep SL of 1345

Happy trading...All the best

Weekly Tips for 05-11-2007 to 09-11-2007

WEEK TECHNICALS:

BUY NAGARFERT @ CMP TARGET 70+ SL 55
BUY REL @ CMP TARGET 2100+ SL 1700
BUY ICICIBANK @ CMP TARGET 1400+ SL 1270
BUY PRITHIVI @ 286.60 TARGET 315-342 SL 250
BUY SOBHA @ 925.70 TARGET 965-970-1003 SL 871
BUY ELGIEQUIPMENTS @ 71.35 TARGET 78-80-96 SL 64
BUY BSELINFRA @ 63.95 TAGET 71-77 SL 56.80

Market this Week:

Indian indices weathered the storms of CRR hike and global weakness closing at its highest level ever {shade below the 20K mark}. Asian markets have largely been outperforming in weaker US & European markets and are currently placed near to their all time highs. Sensex and Nifty have taken support at their respective gaps { Sensex at 19279 & Nifty futures at 5729 }. Technically this demonstrates a positive signal. Markets could be on fire in the coming week and one could expect some brilliant fireworks display in the Indian Stock markets. Markets could be on a frenzy and move to new highs. Resistances are placed at 20200-20250, above which markets could move upto 21K. Nifty {futures} resistances exists at 6000 mark, above which expect non-stop rally upto 6175-6200 levels. Short term support for the sensex stands at 19250-19300, below which markets could correct sharply.

Market Summary:

Markets extended its run-up from last week to record its 2nd consecutive weekly gain despite weakness in the Global markets & a CRR hike by the RBI. The indices depicted high volatility moving between 20200 – 19700 mark for most of the week. Global weakness on the last day did send jitters to the Bulls as sensex dropped to 19250 mark on Friday, but recovered sharply from last weeks gap opening to close at a new weekly high. The BSE benchmark index added 733 points or 3.80% for the week to close at 19976 and Nifty registered gains of 4% or 230 points to close at 5932. Nifty futures hit the 6000 mark for the first time ever.

Banking stocks bucked the negative news in form of a 50 bps point CRR hike by the RBI to curb capital inflows. The hike which previously used to dampen sentiment in Banking stocks failed to do so this time around. The BSE Bankex gained 9.50%. Banking majors SBI & ICICI bank hit new highs. PSU banking stocks too gained smart ground to close at its highest levels ever. Capital Goods continued to outperform the markets and gained as much as 10% for the week largely with the help of gains from L&T. The stock gained another 15% bagging another prestigious order { Mumbai Airport revamp order from GVK worth Rs.5000 crs}. ONGC had a good run from last week and was the biggest contributor to the rise in the Sensex. The stock gained 18% on higher crude prices. Metals continued to shine gaining 5.7% for the week. Auto stocks were the target of a sell-off with the CRR hike acting as a dampner. FMCG stocks too lost ground on weak results from HUL. Telecom stocks too headed south from higher levels on weak Q2 numbers, except Rcom. The top sensex gainers were Ongc{+18%}, L&T{+15%}, Tata power {+14%}, HDFC Bank{+13.80%} while draggers included HUL{-10%}, Bharti Airtel{-10%}, Hero Honda{-8.50

Sensex bucks global trend, gains 251 pts Short covering helped Indian stock markets buck the slide, as the Asian and European markets were hit by renewed concerns on subprime mortgage forcing some of the biggest Wall Street banks, including Citigroup, to report lower profits.

On a day of choppy trades, the Sensex closed 251 points up (1.28 per cent) to settle at 19,976.23, after opening lower by more than 400 points.

A day after the broader S&P CNX Nifty peaked 6,000-mark during intra-day trades, the 50-stock index ended 1.12 per cent higher at 5,932.40 points.

Dealers said some foreign institutional investors were under redemption pressure to maintain their net asset values (NAVs), which triggered a sell-off in almost all sectors.

Some hedge funds, which have now been given 18 months to unwind their P-Note (participatory note) positions, were also in a mood to sell.

Globally, Dow Jones and Nasdaq closed lower on Thursday on concerns that losses from the US subprime mortgage will deepen. Asian indices followed the suit and Japan’s Nikkei ended 352 points lower followed by Kospi and Taiwan index, down 43.80 and 325.14 points, respectively.

US crude hovered near $93.60 a barrel, after sliding from an all-time high of $96.24 as concerns about the US economy weighed, while gold notched up to $791.60 an ounce, keeping within sight of a 28-year peak near $800.

The markets opened with a negative gap of 365 points but recovered almost 100 points during mid-afternoon trades and was hovering at 19,511. However, it bounced back in late afternoon and even crossed 20,000 during intra-day trades on huge short covering.

Almost all the sectors were in positive territory by the end of Friday’s trading session. The banking index was the biggest gainer, shooting up 3.59 per cent due to heavy buying seen in State Bank of India after Bloomberg reported that the state-owned bank got government approval for a rights issue.

SBI surged 8.74 per cent to Rs 2,251.75, HDFC Bank ended 5 per cent higher at Rs 1,758.75, Reliance Energy shot up 4.78 per cent to Rs 1,852.35 and ONGC rose 2.70 per cent to Rs 1,366.10.

Sunil Mittal-controlled Bharti Airtel dropped 5 per cent to Rs 894.85 on concerns that proposed new rules for allocation of spectrum will hurt its growth prospects. ACC tumbled 1.90 per cent to Rs 1,032.55, Satyam Computer 1.87 per cent to Rs 462 and Cipla 1.39 per cent to Rs 173.60.

Almost half of the stocks advanced at BSE.