Tuesday, August 31, 2010

Market Outlook 31st Aug 2010

Strong & Weak Stocks
This is list of 10 strong stocks:  
BPCL, Hind Petrol, Bhushan Steel, Cummins India, UCO Bank, KFA, Petronet, PFC, Power Grid & Tata Comm.  
And this is list of 10 Weak Stocks: 
Suzlon, HCC, EKC, Patni, Punj Llyod, Tech Mahindra, Nagar Cont, Patel Eng, Chennai Petro & Ivrcl Infra.
The daily trend of nifty is in Downtrend 

  • Supp / Resis SPOT / CASH LEVELS FOR INTRADAY TRADING
Indices Supp/Resis1 23
Nifty Resistance 5459.525503.58 5538.17
Support 5380.875346.28 5302.22
Sensex Resistance 18179.00 18325.88 18435.27
Support 17922.73 17813.34 17666.46

SUPPORT/RESISTANCE LEVELS IN CASH/ SPOT MARKET FOR INTRADAT TRADING
Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3
Bank of Baroda NSE 801.25 817.77 789.97 834.28 778.68 845.57 762.17
Bank of India NSE 442.80 453.82 433.92 464.83 425.03 473.72 414.02
Banking Index Benchmark Exchange Traded Scheme (Bank BeES) NSE 1079.38 1091.92 1069.42 1104.46 1059.46 1114.42 1046.92
Bharat Electronics Ltd. NSE 1671.80 1690.80 1656.40 1709.80 1641.00 1725.20 1622.00
Bharat Forge Ltd. NSE 348.85 356.57 344.57 364.28 340.28 368.57 332.57
Bharti Airtel Ltd. NSE 322.80 326.38 319.18 329.97 315.57 333.58 311.98
Bhushan Steel Ltd. NSE 1836.80 1874.53 1812.53 1912.27 1788.27 1936.53 1750.53
Chennai Petroleum Corporation Ltd. NSE 243.60 251.28 238.08 258.97 232.57 264.48 224.88
Cummins India Ltd. NSE 726.50 748.23 713.53 769.97 700.57 782.93 678.83
Everest Kanto Cylinder Ltd. NSE 107.70 109.43 106.23 111.17 104.77 112.63 103.03
Hindalco Industries Ltd. NSE 167.05 168.62 165.12 170.18 163.18 172.12 161.62
Hindustan Construction Company Ltd. NSE 57.85 60.20 56.40 62.55 54.95 64.00 52.60
Hindustan Motors Ltd. NSE 24.50 25.53 23.78 26.57 23.07 27.28 22.03
Hindustan Oil Exploration Company Ltd. NSE 232.50 237.87 228.57 243.23 224.63 247.17 219.27
Hindustan Petroleum Corporation Ltd. NSE 533.45 541.43 527.28 549.42 521.12 555.58 513.13
Hindustan Unilever Ltd. NSE 263.65 265.27 261.77 266.88 259.88 268.77 258.27
Hindustan Zinc Ltd. NSE 1062.45 1089.53 1044.23 1116.62 1026.02 1134.83 998.93
IVRCL Infrastructure & Projects Ltd. NSE 155.10 159.47 152.02 163.83 148.93 166.92 144.57
Kingfisher Airlines Ltd. NSE 59.95 61.53 57.83 63.12 55.72 65.23 54.13
Nagarjuna Construction Co. Ltd. NSE 152.15 155.77 149.77 159.38 147.38 161.77 143.77
Nagarjuna Fertilisers & Chemicals Ltd. NSE 29.30 30.25 28.70 31.20 28.10 31.80 27.15
NSE Index NSE 5415.45 5459.52 5380.87 5503.58 5346.28 5538.17 5302.22
Patel Engineering Ltd. NSE 370.30 376.87 365.37 383.43 360.43 388.37 353.87
Patni Computer Systems Ltd. NSE 463.90 485.13 451.33 506.37 438.77 518.93 417.53
Petronet LNG Ltd. NSE 109.60 111.72 108.07 113.83 106.53 115.37 104.42
Power Finance Corporation Ltd. NSE 351.45 356.63 344.63 361.82 337.82 368.63 332.63
Power Grid Corporation of India Ltd. NSE 108.75 110.50 106.00 112.25 103.25 115.00 101.50
Punj Lloyd Ltd. NSE 108.45 111.00 106.70 113.55 104.95 115.30 102.40
Punjab National Bank NSE 1189.55 1202.03 1180.03 1214.52 1170.52 1224.03 1158.03
Suzlon Energy Ltd. NSE 46.70 47.97 45.87 49.23 45.03 50.07 43.77
Tata Chemicals Ltd. NSE 387.20 393.30 381.80 399.40 376.40 404.80 370.30
Tata Coffee Ltd. NSE 488.10 504.28 478.58 520.47 469.07 529.98 452.88
Tata Communications Ltd. NSE 332.90 341.57 327.67 350.23 322.43 355.47 313.77
Tata Consultancy Services Ltd. NSE 845.65 858.93 836.23 872.22 826.82 881.63 813.53
Tata Motors Ltd. NSE 989.85 1006.43 976.73 1023.02 963.62 1036.13 947.03
Tata Power Company Ltd. NSE 1230.75 1253.92 1207.47 1277.08 1184.18 1300.37 1161.02
Tata Steel Ltd. NSE 527.90 531.48 522.23 535.07 516.57 540.73 512.98
Tata Teleservices (Maharashtra) Ltd. NSE 22.75 23.22 22.47 23.68 22.18 23.97 21.72
Tech Mahindra Ltd. NSE 651.00 661.98 642.53 672.97 634.07 681.43 623.08
   *LTP stands for Last Traded Price as on Monday, August 30, 2010 4:04:10 PM
    #1R1   stands for Resistance level 1                         @1S1   stands for Support level 1
    #2R2   stands for Resistance level 2                         @2S2   stands for Support level 2
    #3R3   stands for Resistance level 3                         @3S3   stands for Support level 3
    
    The levels given above are with respect to previous closing price on the NSE / BSE. 


  Corporate News Headline
ONGC said Cairn Energy Plc cannot sell a majority stake in Cairn India to Vedanta Resources without its consent. (BS)
Mahindra & Mahindra has decided to separate the agri business of its subsidiary Mahindra Shubhlabh Services and merge it into itself. (BS)
Reliance Industries Ltd announced that it has acquired a 14.12% stake in EIH Ltd. The acquisition was made through Reliance Industries Investment and Holding Pvt Ltd, a wholly owned subsidiary of RIL. (BS)
  Economic and Political Headline
The government tabled the much-awaited Direct Taxes Code Bill in the Lok Sabha which proposed to raise the exemption limit on income tax from the current Rs 1.6 lakh to Rs 2 lakh. The bill seeks to widen income tax slabs to levy 10% rate on income between Rs 2-5 lakh, 20% on between Rs. 5-10 lakh and 30% above Rs. 10 lakh. For senior citizens, tax exemption is sought to be raised to Rs 2.5 lakh from Rs 2.40 lakh. The Bill seeks to fix corporate tax at the current 30% but without surcharge and cess. With surcharge and cess, the current tax liability on corporates comes to over 33%. The legislation also proposes to increase MAT from 18% to 20% of book profit of a company. It seeks to levy dividend distribution tax at 15%. (BS)
European confidence in the economic outlook in August after surging exports helped the economy expand in the second quarter. An index of executive and consumer sentiment in the 16 euro nations rose to 101.8 from a revised 101.1 in July, European Commission said. (Bloomberg)
Consumer spending in the US rose more than forecast in July, exceeding gains in incomes. Purchases rose 0.4%, after little change the prior month, Commerce Department figures showed. Incomes climbed 0.2%, less than projected, and the savings rate dropped. (Bloomberg)
  US and European markets
Index Latest 1D Chg YTD
Nasdaq 1772.07 (1.09)% (4.74)%
DJIA 10009.73 (1.39)% (4.01)%
S&P 500 1048.92 (1.47)% (5.93)%
US stocks fell, erasing the previous session's advance, after a smaller-than-forecast gain in personal incomes added to concern the economic rebound may slow further. The NASDAQ, Dow Jones and S&P 500 slipped 1.09%, 1.39% and 1.47%, respectively. Bank of America Corp., Home Depot Inc. and American Express Co. lost at least 2.4% to help lead the Dow Jones Industrial Average lower after government data showed income growth failed to keep up with the biggest increase in consumer spending since March. Intel Corp. slipped 2.2% after agreeing to buy Infineon Technologies AG's wireless unit for about USD 1.4 bn.
Index Latest 1D Chg YTD
FTSE 100 5201.56 0.89% (3.90)%
CAC 40 3487.01 (0.58)% (11.41)%
UK stocks were closed for the day on account of Summer Bank Holiday.

Buy / Sell (Aug 30, 2010)
 BuySell Net
FII1418.881234.47 +184.41
DII916.93848.22 +68.71

*Disclosure: I don't have any positions in the above said scrips & NIFTY FUTURES.

Disclaimer: "I do not make any warranties, express or implied, as to results to be obtained from using the information in this e-letter.  Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report.
--
Arvind Parekh
+ 91 98432 32381