Thursday, May 28, 2009

Flat to down opening seen in Market

We expect the market to be range bound in the 4200 and 4300 zone
in today’s trade and consolidate its gains. We continue
to maintain our short-term view that the Nifty may
consolidate in a range of 4100-4300 for a few days,
before marching upwards

The Nifty spot has supports at 4235, 4190 and
resistances at 4300, 4350

Maximum accumulation of OI was seen in the textile sector followed by fertiliser and telecom. Some unwinding was seen in the infrastructure space

• All textile counters had a magnificent rally in yesterday’s session on the back of significant long build up in OI. Positive
momentum is likely to continue in ALOKTEXT and ARVIND MILL

• After a profit booking session we again saw positive OI accumulation in fertiliser counters like CHAFER and NAGFER

• Telecom stocks like IDEA and MTNL added noteworthy long positions while short covering was seen in RELCOM.
BHARTI added significant contracts in OI along with a drop in price and surge in volumes. Shorts got added on the
second consecutive day in Bharti

• Fresh shorts got added in all sugar counters on the back of trading ban on sugar in commodities market

• As we pointed out yesterday, decent short covering was observed in infrastructure stocks like NAGARCONST,
GMRINFRA and HDIL