Broader trend remains weak

F&O OUTLOOK

As expected, the Sensex and S&P CNX Nifty bounced back from their support levels to close at 15,597 (day's low of 15,363) and Nifty at 4508 from its day's low of 4453.

The support levels for Sensex was at 13,360 and for Nifty at 4450. The underlying trend stays positive for the markets as long as it holds the above-mentioned support levels.

Analyst Manas Jaiswal of Emkay Shares does not expect the Nifty to breach 4,450 levels. The intra-day pullback was considered to be a consolidation before next upmove. 

FMCG: CURRENT FLAVOUR
In (%)	Open Interest	Future Price
Colgate	10.51	2.09
Dabur (India)	18.43	0.15
Hindustan Unilever	17.97	3.06
ITC	35.90	8.85
Tata Tea	16.90	3.48
Titan Industries	16.89	14.22
(% change over Aug 31,2007)

The Nifty will stay strong as long as it finds support at 4,450 levels. For the upmove, Nifty has to cross 4535-4550 levels. In such a case, the index can move above its all-time high level of 4650. The strong buying has been seen in banking, fast moving consumer goods and metals, while IT stocks were weak.

The put/call ratio of open interest in Nifty options moved up on Monday to 1.60 from Friday's level of 1.57. The Nifty puts added 15.98 lakh shares, while Nifty calls added open interest of 6.93 lakh shares.

The intraday trend of the market was bullish, however the broader trend remained weak. The advance/decline for the 50 Nifty stocks was at 25:25, while for the 30 Sensex stocks it was at 16:13, with one unchanged.

The F&O turnover on the NSE was more or less unchanged from Friday's levels. The discount to Nifty September futures decreased to six points from the intra-day level of 28 points. The decline in discount was largely on account of short covering.

The weakness in the global markets pulled down the indices in the morning session. However heavy buying in key index stocks such as ITC, Reliance Industries, SBI and NTPC pulled back the benchmark from its day's low.