Friday, December 28, 2007

Technical View: Positive momentum to continue

On Thursday, the 30-share benchmark, Sensex opened on a strong note at 20,301.05, up 108.98 points from previous day`s close, boosting the positive momentum made in the last few days. The market continued to trade in choppy manner for the rest of the session on account of the F&O expiry. Small cap stocks registered phenomenal jump today. It gained 286.25 points to close at 12,628.74.

Vishwas Agarwal, Technical Analyst said, ``Today we had a good F&O closing and from tomorrow fresh F&O series will start where the overall sentiments is still positive with little bit volatility.``

He added, ``If BSE trades above 20,150 and maintains this level than the market is in trading zone. If it breaches this level than we can see only stock specific movement,`` adding ``January is a result session and also FII allocation for India will be announced. These two events will help in deciding the next move of the market. ``

Stocks Recommendation:

Vishwas Agarwal recommended Cairn India, Bank of Baroda, Man Industries and Indian Hotel. He said all these stocks looks good if the market moves up.

Suresh Iyer, Technical Analyst, Asit C Mehta, said, ``On Thursday we witnessed a good rollover in F&O segment and expiry closed on a quite note. Further, the F&O cost of carry was very high which shows the optimistic view about the market among the investors.``

He added, ``Looking at the good F&O expiry on Thursday, high cost of carry and FII which turned into buyer on Monday, we can say that from here onwards, probably the market will continue to trade in positive terrain.``

For the last day of the week, Suresh says, ``The market is expected to open positive and will continue to trade higher. Nifty is having a resistance at 6,160- 6,172 and once it breaks this level than it can cross 6,239 - 6,271 level.``

Stock Recommendation:
Suresh Iyer has recommended Punj Lloyd, Parsvnath Developers, and Everest Kanto, in addition to TISCO, RIL and SBI for Friday. He has also recommended BHEL with a stoploss of Rs 2,580.

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