End of day summary and outlook for 13Dec06

Today was the third consecutive day of downfall, the biggest in three days. Today's overall volume was huge and the advance decline ratio was very poor with 1 advancing stock to every 13 declining stocks. All the index stock was hit badly and the midcap stocks were not spared either. The NSE Nifty closed at 3716.90 with a loss of 132.60 and BSE sensex closed at 12995.02 with a loss of 404.41 points. The BSE sensex intraday low of 12800.00 made it a fall of 1200 points in 3 days. The Fiis were net buyers in cash market for 258.82 crores, net sellers in index futures for 415.28 crores and net buyers of 480.58 crores in stock futures.

Tomorrow the fall is definately not as huge as today and the markets will bounce back from lower levels. The first indication is the buying in the stock futures by FIIs today after a huge selloff in the past few days. The second indication is the fibinacci retracement levels which indicate support around 3720.00 levels. If the markets close decisively below this level for two consecutive days we could see selling upto 3506.00 levels. I would boldly suggest buying at every lower level from here on. On the upper side the resistance is at 3850 and 3890 levels.

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.