End of day summary and outlook for 01Dec06

As expected the markets did the repeat of yesterday with the exception of last hour of trade due to F&O expiry.The volumes were very high due to roll over. The NSE nifty closed at 3954.50 with a gain of 26.30 points and the BSE sensex closed at 13696.31 with a gain of 79.58 points. The FIIs were net buyers in the cash market to the tune of 88 crores, net sellers in index futures to the tune of 42.36 crores and net sellers of 686.59 in stock futures. They have sold over 2000 crores in stock futures in the last 3-4 sessions. This again adds to the fact that a decent correction is round the corner.

The outlook for tomorrow is positive as it is the first day after expiry of November futures. The markets might open weak on the back of weak global markets but is sure to recover after that and go higher. The first resistance is around 3970 and if nifty sustains above that it can test the level of 4000. On the lower side 3890-3900 is a sold support. I would still suggest to be cautious at the higher levels. Keep booking your profits in long positions how ever small it may be.

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.