End of day summary and outlook for 14Dec06

As expected the markets bounced back today from the lower levels. It was volatile though. The level of 3700.00 is acting as a good support. The volumes were good in the market suggesting that this is not a dead cat bounce. The advance decline ratio was also good at 3 advancing stocks to veery 1 declining stock. The NSE nifty closed at the day's high at 3765.20 with a gain of 48.30 points and the BSE sensex closed at 13181.34 with a gain of 186.32 points. The FII figures also suggested the end of correction as they were net buyers in cash and stock futures for 24.52 crores and 300.34 crores respectively. They were net sellers in the index futures for 284.52 crores. There was good buying in lot of nifty stocks.Reliance communication was the biggest gainer of the day.

Tomorrow is the decisive day where the actual trend of the market can be determined. If the Nifty holds 3700.00 at the end of the day we can assume that the correction is over and the market will recover slowly, otherwise we can expect one more round of selling upto 3500.00

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.