MARKET REPORT 21 JAN 2008

Market had a very bad section from last two weeks , any chance recovery when market tries to recover we saw a fresh sell off , This happenend across the week , all knows the dilema of RIL power IPO and FII withdrawing money from Indian markets.

We had alredy told this is last week itself that we will see sensex at 19100 lvls .. and u can see that last week itself it dipped to 19100 lvls.

The nifty breaked all support lvs during the time of free fall and at the same time lvls of 5750 was broken ..

We expect this week to saw a minor pull back as sensex had tried twice to cross the barrier of 6300 but was unable to do so ..
The coming time it may trade between range bound session of 5600 to 5900 ..

Ahead of FNO settelment and as US markets have been eaten up by bears .. the effect would be there on Asian markets too and INdia cannot be ruled out ..

THE friday package by BUSH even was not able to make bulls conquer over bears..

As of now all Asian markets are in short term downtrend .. and the trend has to reversed to take any long fresh calls..

We suggest investors to have some bottom fishing at these levels in mid cap segment ..
ICICI came out with very good results and and is planing to list its securitits arm , its listing is to be done very shortly and ipo could be used to raise money ..
ICICI has also registered a very good growth rate with profit earnings rising more then market expectations..

wockhardt demerging its RND division following the footsteps of ranbaxy and oyther
pharama conters..

HDIL plans to invest Rs40bn in the cyber city in Kochi, Kerala


Gayatri Projects plans to foray into the power generation sector and is scouting for a partner for the JV
Reliance Power, Jindal Steel & Power and L&T are among nine companies that have qualified for 2000-MW Talwandi Sabo coal-based thermal power plant at Mansa in Punjab
nifty at 5677 is considered a major support for al ur long positions any fall below 5677 and if markets trade below that positions shuld be sqrd off and we may see nifty retouching the lelvs of 5450 in that case.. but in contrast if nifty manages to trade abv 5750 lvls for an hr or so in early morng trade we may see a sharp pull back .. and nifty may go on to touch 5900 lvls...

traders shuld look for thses positions for their longs..

DLF , ongc , HDIL , RIL at all dips looks very good .. and fresh positions of nxt month cab be made in these counters in dips.. with a sl of 5500 at nifty ...

ahead of week we have triggers like FED rate cut and RBI policy any positive announcemnet can make market to rally...

dont get trapped in falsee rallies and better to stay away in short term till the down trend continues..


have a grtt day !!!


As per the leading Newzpaper .. we may see a fresh bounce back .. and traders have created fresh long positions ..
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Indicators in the derivatives market suggest that although the market bulls have taken a hammering, they still harbour some hope. At close on Friday, the Nifty January put-call ratio (PCR) was at an oversold level of 1.04. In the past, the Nifty has invariably managed to find support and bounce back from 0.95-1.05 levels. Similarly, in spite of the fall on Friday, the Nifty futures contracts due to expire in January added more than 11 lakh shares in open interest to end at a premium of over 25 points, up from a premium of 18 points the day before. This suggests that while the selling was rampant in the cash market, fresh longs may have been created on the Nifty future. Even the implied volatilities (IVs) suggest that a rebound may be on the cards pretty soon. The IVs of calls, which had been consistently quoting lower than their corresponding puts all through the week, suddenly spurted on Friday and are now quoting well over the 40% mark, at least 4-5% higher than their corresponding puts. This suggests that after an 8% fall last week, market participants expect a bounce-back and so, are charging hefty premiums to write calls. Moreover, three more facts point towards the possibility of a bounce-back this week. Firstly, in spite of Friday’s fall, the 5700 put saw fresh put writing. Secondly, the fall also saw the 6000 calls shedding some open interest, suggesting that call writers were booking profit. Finally, the strike prices with the maximum open interest buildup are the 6000 put and the 6200 call. All these indicate that a strong support may be at place at 5700 and the range of 6000-6200 can be the trading range, going into settlement.

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