End of day summary and outlook for 29Nov06

As expected, the markets opened week and closed in negative. Today our markets took the clue from the global markets and traded in negative zone throughout the day. The NSE Nifty closed at 3921.75 with a loss of 47.15 points and the BSE sensex closed at 13601.95 with a loss of 171.64 points. Today was a very important day for our markets to assess the strenght. Unfortunately, the markets didnot show any strenght. Firstly, two attempts were made to recover in the afternoon but the upmove did not sustain and came down. Secondly, the volumes in the F&O segment today was close to 41,500 crores against the one month average volume of close to 30,000 crores. This means the markets have come dowmn with huge volumes. Thirdly, the FII figures are also not encouraging as they were net sellers in the cash market for 439.48 crores, net sellers in the index futures to the tune of 1748 crores and net sellers in stock futures to the tune of close to 840 crores. This indicates that there is a decent correction expected in the markets.

The outlook for 29Nov06 is also not very encouraging as the Nifty might test the support levels of 3890.00 The buzz on the streets are that the markets will come down for two days and bounce back. I would say if the bounce back happens, it should be used to exit long positions. It is not yet advisable to go short. Lets watch tomorrow if the markets can hold the support level of 3890 and bounce back.

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.