End of day summary(14Nov06) and outlook for 15Nov06

Today the markets were very volatile eventhough the nifty traded in the very narrow range of 20 points. The NSE index gained and lost 20 points twice before closing with a gain of 7 points at 3865.90 and the BSE sensex also closed at 13425.50 with a gain of 26.50 points. The volumes were back in normal. As expected there was some profit taking after the early morning gains. The FIIs were net buyers of 1270 crores in the cash market and net sellers of 90 crores in stock futures. They were net buyers of 90 crores in index futures. Frontend technology stocks along with ICICI bank helped the index stay steady.

The outlook for 15Nov06 doesnot look promising and the markets might open on a weak note. The nifty levels of 3840 will be tested. If the nifty closes below 3840 for 2 consecutive days, I foresee a correction of another 120 points from here till 3720. If markets hold 3840 successfully then new highs can be seen in coming days. Day traders are advised to stay out until a clear trend is visible.