End of day summary and outlook for 21Nov06

Today also the markets moved as per expectations. The outlook was not positive for today and the markets crashed to the intraday low of 3794.30 i.e., a loss of 58 points and recovered to close at 3856.15 with a meager gain of 3 points. The BSE sensex also lost close to 230 points in the intraday trade and closed at 13430.71 with a nothing gain of 1.23 points. There was 230 points lost and gained in a single day. There was enough strength in the market to push it back above the crucial level of 3840.00 I still stand on my opinion that the markets have to close below 3840 for two consecutive sessions to turn bearish. The FII figures were not very encouraging as they were net sellers in the capital market segment to the tune of 300 crores, net sellers of 1050 crores in index futures, net sellers of 345 crores in index potions and net sellers of 250 crores in stock futures. They are net sellers in index futures for 1500 crores in the last two days.

The outlook for 21Nov06 is sideways to positive. It appears that the bears who have short sold today would be trapped and the markets might open with a gap up opening. On the upper side watchout out for the level of 3900. If this is taken out then 3920 is possible. Please donot go and short sell Nifty futures until it closes below 3840 for 2 consecutive days.

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