Reports ----- for Thursday 25th

Outlook for the day

The coming trading session is expected to trade in the broad range of 5580 – 5420 levels. On the upside, Nifty may test 5630 – 5680 levels if it trades above 5560 level. On the downside, Nifty has support at 5420 – 5400 levels. Further, it may test 5380 – 5340 levels. For short term traders, any upward rally will be an exit opportunity. Day traders are advised to trade cautiously with strict stop losses as market may remain volatile.

Rolta

The stock has given a close near to multiple resistance level of Rs. 652 level on the Daily chart with rising volumes. This suggests that further upside is likely in the coming trading session if it trades above Rs. 652 level. Stop-loss*: Rs. 646.30 Tgt: Rs.670.00

Bajaj Hindustan

The stock has witnessed buying on the daily chart with rising volumes. This suggests that further upside is likely in the coming trading session if it trades above Rs.187 level. Stoploss*: Rs.184.30 Tgt: Rs.198.

Derivative Report Comments

• Open interest in Nifty futures has increased significantly by 10.73% whereas the Nifty price has risen by 0.41% from 5473.70 to 5496.15.
• The Nifty PCR-OI has remained unchanged at 1.17 levels.
• Nifty October series is trading at a discount of 18.15 points whereas November series is trading at a discount of 39.90 points. The current COC in November series is negative 7.36%.
• Nifty Futures annual volatility has reduced from 49.97% to 48.45%.
• The current rollover in Nifty is 60.09%.
• Stocks showing maximum rollover are GTL, SKUMARSYNF, TATACHEM, JSWSTEEL and ABAN.

Derivative Report Views

• Once again we have seen addition of contracts in the 5500 strike price Call option. Significant build up of Nifty open interest along with huge discount in Nifty futures indicates few short positions have been formed in yesterdays trading session. Also, FII data on Index futures suggest formation of short positions. However, with a significant Call and Put base at 5400 we may see Nifty taking support at this level on closing basis.
• The maximum addition of open interest was seen in the FMCG sector. Heavy weights like HINDUNILVR and ITC has added significant OI along with negative bias in prices. We may see some downside in theses counters for time being.
• Other heavy weights like ONGC, BHARTIARTL and ICICIBANK have all shown significant OI addition at higher levels and have depicted downside in prices.
• Stocks currently trading with significant premium in November series are STROPTICAL, BINDALAGRO, STAR, EDUCOMP and IOB.

Dealers Diary

The markets on Wednesday opened with a bang on continued buying interest in blue-chip stocks tracking firm global markets but later it slipped in the red on selling pressure. The market staged a comeback in lateafternoon trades to end the day with marginal gains. The markets posted gains consecutively for the third straight session, as investors flocked blue-chip shares, inspired by robust set of quarterly results. All this came amidst volatility, which is expected to remain high ahead of the expiry of October 2007 derivatives contracts on Thursday, 25 October. Among the frontliners, Reliance Energy, SBI, Tata Steel, Hindalco and HDFC Bank gained 2-9%, while ONGC, Tata Motors, Infosys, Bharti Airtel and M&M lost ground by 1-3%. In the mid-cap segment, BL Kashyap, Blue Star, Indus Ind Bank, Novartis and Elecon Eng gained 11-20%, whereas Subex Azure, NIIT Tech, Binani Cem, Wire & Wireless and Jai Corp lost 5-8%.

Markets Today

The trend deciding level for the day is 5498/18554. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 5576 / 18791 levels. However, if NIFTY trades below 5498/18554 for the first half-an-hour of trade then it may correct upto 5418-5339 / 18276-18039.

Events for the day (quarterly results)

ABB
ACE
Alfa Laval
Bank of Rajasthan
Cairn India
Century Textiles
Cranes Software
Elecon Eng
GSK Pharma
Gujarat State Petro
Idea
Liberty Shoes
Motherson Sumi
MRF
Nicholas Piramal
NIIT
NIIT Tech
Reliance Cap
Sun Pharma
UTV Software
Voltas



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