End of day summary and outlook for 17Nov06

Today the markets were very volatile. As expected the PSU banks joined the party with the private sector banks and made it a all bank rally. At one point of time we could see that all banks were up by 4-5% The NSE nifty closed at 3876.85 bearly 0.55 points up and BSE sensex closed at 13505.89 up by 36.52 points. Again as predicted in the outlook yesterday markets opened on the positive note and made an intraday correction. The NSE nifty tested the levels of 3900 unsuccessfully as it just touched the pivot and started moving back giving up all the gains. The charts show that every fall was accompanied with a good bounce showing the strenght in the markets. The FIIs were undecided in the direction less market and ended up bearly 33.50 crores sellers in cash market. They were 70 crores net buyers in the index futures. Looks like there was some short covering there. FIIs were net buyers of 225 crores in the index options. It appears that they were writing the 3800 put as there was 15% rise in open interest for this strike price. HDFC Bank and ACC were stand out performers as both of them gained over 6% during the day. ICICI Bank also shot up 5% in intraday trade and gave up all its gains in the afternoon session. ONGC and Infosys were the draggers.

The outlook for tomorrow is side ways as the Nifty might try to test the 3840 support level again. The market is in a sideways consolidation zone between 3840-3900. Breakout anyside might see a rally of 100-120 points. The posibility of nifty breaking the 3840 support level appears remote as there is too much caution all around and the markets might decide to go the other way.

Disclaimer: The recommendations provided would be purely on my personal opinion and doesnot reflect any fund house interest or my personal holdings. I would not be responsible for the loss in trades undertaken based on my recommendations.