End of day summary and outlook for 04Dec06

As expected, the markets were positive on 01Dec06 and NSE Nifty tested the psychological level of 4000.00 and closed just a shade below at 3997.60 with a gain of 43.10 points and the BSE Sensex closed at 13844.78 with a gain of 148.47 points. The volumes were back to normal levels after 2-3 days of high volumes due to roll over. As indicated on 30Nov06 the auto sector joined the party with handsome gains in Bajaj Auto, Hero Honda, Maruti and Tata Motors.The FIIs were net buyers in cash segment for 194.84 crores, Index futures to the tune of 308.97 crores and net sellers in stock futures for 95.08 crores. There has been continued selling in stock futures. This very well suggests that a correction is round the corner.

On Monday the markets will open on a good note. The NSE Nifty will face resistance at 4025.00 and has the support at 3930.00 and 3913.00 levels. The BSE Sensex will come closer to 14000.00 levels but the question is how will it react at these levels. Again the opening high has to be breached for any further up move.

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.