Intraday Call performance 29/09/08

Indian market collapse and recover at the end

Nifty straight away broke 3970 strong support and broke down heavily to make a low of 3777-which will now provide as support for further upward move.Market recovered a bit at the last hour to take nifty above 3800 and closed at at 3850, down 135 points from the previous close.European and Asian markets saw huge sell off today.European government has rescued two financial firms namely Bradford & Bingley and Fortis & Hypo Real Estate Holding. Fortis was the first firm, which were caught in credit crisis in the Europe.Huge selling was witnessed in Realty, banking, technology, power, telecom, capital goods, metal and auto stocks.Today's low of 3777 will be very important for future market movements.The market breadth was negative with advances at 100 against declines of 1185 on the NSE. Top Nifty gainers included BPCL, SAIL and Tata Communications while losers included Reliance Industries,Suzlon, Jaiprakash Associates, ICICI Bank and Idea.

Following calls were given in yahoo messenger for clients:

It was day of huge profits for all my clients

Buy Nifty Futures around 4935 with stop loss 4930 and it just made 4948 and then hit the small stop loss

Short Reliance Industries around 1960 with stop loss 1972 for target 1900-1870 and it made a low of 1881....HUGE PROFIT

Buy Bank of India around 269 with stop loss 267 for target 276 and it made 271 and then hit the small stop loss

Short Reliance Infra around 838 with stop loss 844 for target 820 and break below free fall and it made 772....HUGE PROFIT

Short Reliance Capital around 1110 with stop loss 1126 for first target 1090 and it made 1057....HUGE PROFIT

Buy Bank Of india around 264 with stop loss 263 for target 273 and it made 273.5....GOOD PROFIT

Market Outlook 29/09/08

Market may show some recovery today

Though market crashed on friday and closed below 4000, we have some positive news in nuclear deal today as mentioned on friday (123 agreement) and if nifty holds on to support 3970 today, it might move up and there might be gap up opening also.
On global front, The Dow Jones industrial average rose 121.07 to 11,143.13 and though there are still concerns about U.S governments bail out plans, sentiments are little positive now.Congressional leaders and the White House agreed Sunday to a $700 billion rescue of the ailing financial industry after lawmakers insisted on sharing spending controls with the Bush administration. The biggest U.S. bailout in history won the tentative support of both presidential candidates and goes to the House for a vote Monday.The final result of this bail out plan will be seen in few more months and will be interesting to see how the financial sectors perform henceforth.In indian market today, if nifty moves above 4000, it will face resistance around 4040 and then 4065 and if these are taken off then it can move to test 4115 straight.There might also be gap up opening today and even if there is gap down opening, there might be recovery coming in later.Only if nifty stays below 3970, things might get weak.

Stock watch for the day:

Today's calls only for clients