End of day summary and outlook for 20Nov06

Today also, as expected the NSE Nifty tested the support level of 3840 and recovered to close at 3852.80 with a loss of 24 points. The BSE sensex closed at 13430 with a loss of 76 points. The level of 3840 acted as a good support. The bears attempted to break 3840 trice, but unsuccessfully. Although the nifty made a low of 3835.70 it could not sustain that level. The FIIs were net sellers of just 88.70 crores in cash segment however they were net sellers of 524 crores in index futures, net buyers of 235 crores in index options and net sellers of 105 crores in stock futures. It appears tha the FIIs have sold in index futures and hedges their shorts against the 3850 and 3900 calls.

The outlook for Monday is not very positive. Still, it not advisable to go short in the market at current levels. Watch out for the level of 3840. Convert all your long positions into short if the Nifty closes two consecutive days below 3840.00

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.