Sunday, April 25, 2010

Weekly Market Outlook 26-30th April 2010



Weekly Index Outlook: Feisty fight-back by bulls

Sensex (17,694.2)

Despite a wobbly start, the Sensex perked up from Tuesday buoyed by a lesser-than-feared hike in policy rates and reserve requirement and receding concerns on the Goldman front. Intraday volatility however increased as stocks struggled to cling on to higher levels.

Small and micro cap stocks sizzled and simmered and many penny stock also joined the ongoing party on our bourses. It is therefore not surprising that BSE Mid and Small cap indices outperformed the Sensex last week. FIIs were net sellers in the first two sessions of the week though they turned net buyers thereafter.

Volatility could spike higher next week as April derivative contracts expire on Thursday. Open interest at record level is a cause for concern as it shows that leveraged positions are piling up.

The Sensex declined to an intra-week low of 17,276 before rallying to close the week 103 points higher. Weekly oscillators are moving sideways implying status quo. Oscillators in the daily chart have reversed higher though they are yet to move in to the bullish zone. In other words, the current rally needs to cover some more ground before the near-term view turns positive.

The medium-term trend in the Sensex continues to be up. A close below the 200-day moving average at 16,500 is needed to signal that this trend is under threat. We have been following a flat formation as a terminal corrective from the low of 15,330. The C wave of this flat could have ended on April 7. If the current rally continues, next target for the index, as per this count, is 18,110.

The short-term trend in the index is however ambivalent. There are numerous counts that are possible for the short-term. Some of the trajectories that the index can take in the days ahead are,

Sensex could move higher to the 18,000 level again but could reverse lower from there resulting in a range-bound movement between 17,000 and 18,000 for few more weeks.

The most bearish scenario is one of the index struggling to move past 17,800. Such a move can usher in a decline to 17,249 or 16,954.

Strong close above 18,000 would mean an extension of the up-move from the 15,651 resulting in a rally to 18,200 or even 18,758.

Our preferred view is one of the index spending some time in the range between 17,000 and 18,000 before making the next move.

We had explained last week that retracement of the move from 15,651 low gives us the targets of 17,328 and 17,130. The Sensex reversed higher from the first support denoting short-term strength. It can now move higher to 17,800 or 18,048 in the days ahead. Investors should brace themselves to face volatility around the 18,000 level again. Targets above 18,048 are 18,111 and 18,346. Supports for the week would be available at 17,276 and 17,165.

Nifty (5,304.1)

Nifty declined slightly below our first support to record the intra-week low of 5,161 but the recovery from there helped to erase most of the losses and the index closed the week on a positive note. Immediate resistance for the index is at 5,310. Inability to move above this level will result in the index declining to 5,163 or even 5,072.

Conversely, move above 5,310 will imply that the index is heading towards 5,400 or 5,441. Short term traders should watch out for volatility and another downward reversal from the band between 5,400 and 5,440.

Medium term target on a strong move above 5,440 is 5,546. The index needs to close below 4,950 to signal that the medium term trend is reversing lower.

It was a choppy trading week for global equity, up in one session and down in the next. The weekly close for most indices was on a mildly negative note. CBOE VIX dropped sharply in the first two sessions as fears of Goldman indictment cascading in to a major issue abated.

The index closed at 16 implying that traders are back to feeling gung-ho and confident. The downtrend that began in the second week of April however continues to stay in place for many global benchmarks though the US indices have erased all the losses made in the previous week.

The Dow moved sideways with a positive bias through last week before Friday's spurt helped it close at a new 2010-high. The next two weeks will be the acid test for this intermediate term rally since the index is nearing the key resistance at 11,245. As we have been parroting, area around 11,300 is a very important resistance for this index and the action around this zone will set the tone not just for Dow but for global equity markets.


Pivotals

Reliance Industries (Rs 1,087.3)

RIL moved below our first short-term target to record the low of Rs 1,050 last week. A minor pull-back is currently on that has the targets of Rs 1,112 and Rs 1,126. Short-term traders can initiate fresh short positions on failure to move past the first target in the early part of next week, with stop at Rs 1,130. Downward targets would then be Rs 1,035 and Rs 1,025. Presence of the 50- and 200-day moving average in the band between Rs 1,035 and Rs 1,045 makes it a very important medium-term support for the stock.

Close below Rs 1,035 will imply that the stock is heading towards the lower end of its medium-term trading band at Rs 966. Conversely, move above Rs 1,200 is required to make the medium-term trend positive in the stock.

State Bank of India (Rs 2, 255.6)

This stock moved contrary to our expectation and surged to the intra-week peak of Rs 2,294, lending strong support to the tottering market. Key short-term resistance for the stock exists in the band between Rs 2,275 and Rs 2,300. Next target for the third leg from February 24 low also occurs at Rs 2,275. Traders holding long positions should book some profits if the stock fails to move past Rs 2,300.

We are ambivalent regarding the medium-term view. The afore-mentioned resistance band is also a key medium-term trend deciding level. Failure to move past it will drag the stock down to Rs 1,900 again while a move above this level can take the stock to its previous peak of Rs 2,500.

Tata Steel (Rs 648.4)

Tata Steel launched a gentle decline last week to close the week over 6 per cent lower. As indicated last week, the stock has strong intermediate-term resistance at Rs 660. Reversal from here can usher in a decline to Rs 470 over the medium-term.

But the short-term down-trend has not yet intensified enough to signal the onset of a serious correction. Immediate supports are at Rs 635 and then Rs 590. Short-term traders can hold the stock as long as it trades above the first support. Resistances for the week are at Rs 665 and Rs 680.

Infosys Technologies (Rs 2,728.1)

Infosys Technologies followed our script closely, reversing from the intra-week peak of Rs 2,825 to decline to the low of Rs 2,693 on Thursday. Last week's move implies that the stock is likely to remain in a sideways range between Rs 2,600 and Rs 2,900 for a few more weeks.

Key short-term support for the stock is at Rs 2,693 and fresh short positions are recommended only on a close below this level. Infosys could attempt to move up to Rs 2,725 or Rs 2,825 in the days ahead. Reversal from the first resistance would provide the apt juncture at which traders could short this stock. —


Stock Strategy: Consider going long on Rpower, IDBI Bank

Reliance Power (Rs 161.65): After confining to a narrow range over the last three months, the stock gained momentum last week. It now finds strong support at Rs 142 and resistance at Rs 173.

A move above the resistance could lift the stock to Rs 201-203 levels, while a close below Rs 142 would change the outlook to negative. It appears that the stock is heading towards its immediate resistance level.

F&O pointers: The Reliance Power futures (market lot 2000) saw a healthy rollover of about 43 per cent to May series. The higher premium for May contract suggests accumulation of long position. Calls, particularly 160 and 170 strikes, also saw decent rollover, indicating bullish undertone. Market wide open interest stood at about 40 per cent.

Strategy: Consider going long on Reliance Power with a stop-loss at Rs 151 for an initial target of Rs 173. Adjust the stop-loss progressively as the stock is generally of a volatile nature.

IDBI Bank (Rs125.95): This stock has gained momentum last week. It now finds crucial support at Rs 120 and resistance at Rs 135. A close above the resistance could lift the stock towards its all-time high of Rs 177. Now, it appears that stock might be able to break this range on the upside. Only a close below Rs 97-98 would change the view to negative.

F&O pointers: The IDBI Bank futures (market lot 2,400) saw a low rollover of about 25 per cent to May series. Options are not that active to discern any view from them.

Strategy: Consider going long on IDBI Bank with a stop-loss at Rs 120 for a target of Rs 135. Adjust the stop loss progressively to protect profits.

Both the recommendations are valid for only two days as this week is the settlement week for April contracts. Stock prices could swing wildly close to expiry.

Follow-up: Last week we had recommended shorting DLF and Neyveli Lignite Corporation. While DLF achieved our first target of 320, stop-loss would have been triggered for NLC.


Sizzling Stocks

TTK Healthcare (Rs 413.3)

It was TTK Healthcare that applied salve to the wounds inflicted on trading portfolios by an otherwise volatile market. The stock gained around 40 per cent last week. Its foray into orthopaedic business was viewed with much enthusiasm by market participants, helping it move past the key resistance at Rs 300. High volume action accompanying this break-out is a positive for the stock.

The structural uptrend from the 2003 low continues to be in place for TTK Healthcare. Following a long-drawn consolidation from April 2006 to December 2008, the stock appears to have commenced the third leg of its structural uptrend. Simple extrapolation gives us the first target of this up-trend at Rs 390. Next long-term target is Rs 576.

A short-term correction began in the stock on Friday. This decline could extend to Rs 360 or Rs 320 in the near-term. Investors with short-term perspective can hold the stock with stop at Rs 355. Medium-term investors can hold the stock as long as it trades above Rs 300.

Adani Enterprises (Rs 562.6)

This was yet another stock that gave runaway gains to investors last week. The week began on a sedate note at Rs 475 for Adani Enterprises. It zoomed higher from there to record the peak of Rs 565 on Friday, yielding 19 per cent gain to this high. The stock put the bear phase of 2008 behind it when it moved above the key intermediate-term resistance at Rs 464 in February this year. After spending some time consolidating above this level, it appears to have broken out now.

Third wave of the move from March 2009 low has the targets of Rs 504 and then Rs 616. Since the stock has moved beyond the first target it can now attempt to move towards the second one. Previous life-time high at Rs 667.5 is also a potential target for this stock if the rally sustains. But volatility is likely to surface as it nears its previous peak. Short-term investors can buy in declines as long as it trades above Rs 525. Stop for medium-term investors can be at Rs 475. — 


Now, offshore companies under SEBI lens


To stem the flow of funds from questionable sources into the Indian stock market, SEBI has asked all FIIs to divulge the structure of their offshore entities. This can curtail overseas fund-flows into equity markets albeit temporarily.



 
Move to controlround-tripping.

Even as foreign institutional investors (FIIs) continue to show their preference for Indian equities and have flooded our stock market with about $5.9 billion since this March, the stock market regulator, the Securities and Exchange Board of India, is unable to rest easy.

The multi-layered organisation of some of these investors makes them opaque, enabling funds from questionable sources to be routed through this conduit into domestic stocks and their derivatives.

The Indian stock market regulator had taken the strong step of banning Barclays Bank and Societe Generale from issuing offshore derivative instruments early this year, for misrepresenting facts. It has now taken the next step in controlling round-tripping by asking all FIIs to divulge the structure of their offshore entities.

FIIs seeking to register with SEBI will henceforth have to give an undertaking that they are not Protected Cell Companies (PCCs) and Segregated Portfolio Companies (SPCs) and if they are Multiclass Share Vehicles (MCVs), then they have an adequate number of shareholders. Existing foreign investors are required to give similar undertakings by the end of this September.

Protected Cell Company

The PCC structure has evolved over the past five years in tax havens to impart anonymity/privacy to investors to enable them shield their assets from 'prying eyes'. A PCC contains a number of segregated parts known as 'cells'.

Each cell is legally independent from other cells as well as from the main company (core).

The assets, liabilities and activities of each cell are separated from each other. The creditor of one cell does not have recourse to the assets of other cells or the core in the event of bankruptcy.

While this structure ensures that each cell can continue to survive even if one of the others gets defunct, there is a large degree of opacity surrounding this structure. The most important being that the ownership of each of the individual cells is questionable as the PCC is registered as a single entity only at the core level with SEBI. The company can also continue to add new cells without seeking permission from our market regulator.

Thus the real owner of the funds that are routed into our equities remains unknown.

According to Mr Suresh N. Swamy, ED, PwC, "PCCs have never been a favoured lot with SEBI and it has been reluctant to grant registrations to them. All FII/sub-account have to now declare that they are not a PCC or SPC. If they are, they may have to unwind their structure or amend it to something which may be more acceptable to SEBI."

Multiclass Share Vehicle

The other structure that the circular talks about is MCV. This is a more conventional entity that is permitted by its memorandum of association/charter to issue multiple classes of shares so that each class of share owns assets catering to a certain set of investors. MCVs act like a mutual fund managing various mutual fund schemes.

There are two structures of MCVs that SEBI has recognised in its circular. One in which there is a common portfolio of assets that is to be distributed across all the classes of shares, and in the second structure each class of share holds a different portfolio.

In the first instance, SEBI requires the foreign company to be broad-based (have a minimum of 20 shareholders at the company level with no single individual investor holding more than 10 per cent shares or units) at the core level.

When each class of shares has a different portfolio, then each class of shares should have minimum of 20 shareholders. In case of change in structure or addition of new classes of shares, permission needs to be taken from SEBI.

To put the SEBI directive in simple terms, only FIIs that are structured as MCVs and suitably broad-based would be allowed to register with SEBI in future.

FIIs structured as PCCs would not be allowed to register. Existing MCVs can broad-base their shareholding and continue to function while the existing PCCs would have to change their structure to something acceptable to SEBI.

The Fallout

The principal consequence of this move is that it can curtail overseas fund-flows into equity markets albeit temporarily.

It is obvious that investors that are part of cells in PCCs are those that are neither registered with any regulatory authority nor want to register directly with the Indian regulator. Anonymity is the main reason why this route is used.

Since such entities cannot invest through the participatory notes either, as these instruments can only be issued to regulated entities, such funds could move away from the Indian stock market.

According to Mr Swamy, "overseas exchanges such as the Singapore Stock Exchange allow funds to bet on the Indian market via the SGX S&P CNX Nifty Future. In addition, there are ETFs linked to Indian equity indices traded on various global exchanges. If investing in India is increasingly made difficult, overseas funds will flock to other jurisdictions where investing is easier."

While temporary reduction in overseas fund-flow would not impact the structural trend in our stock market, funds from dubious sources moving away from our shores would be welcomed by both SEBI and the RBI. Reduction in the copious overseas flows witnessed since March this year will also ease the pressure on the rupee that has strengthened 4 per cent against the dollar so far this year.

Some quarters are, however, of the view that frequent changes in regulation are not good for the image of the Indian equity market.

"The financial services world is very innovative and regulation often plays catch up. It would also not be surprising if overseas funds come up with something new in the near future," 


Sensex leads the pack


A strong rupee, a reasonably resilient economy and improved corporate earnings are some of the factors that have helped the Indian stock market outperform other global markets.



 
Closely pegged to global trends.

Just as it did in the previous bull market, Indian stocks have outperformed most global peers in the recent stock market rally. While the Sensex gained 114 per cent from its March low, China's Shanghai Composite (up 47 per cent), Brazil's Bovespa (92 per cent), Taiwan's Taiex and South Korea's KOSPI indices haven't managed to match Sensex's return. MSCI Barra's World index reported a 74 per cent gain in this period. Developed markets have underperformed too, with the US bellwether Dow Jones Industrial up only 66 per cent.

Multiple factors have driven India's outperformance of other global markets: A strong rupee which made investments more lucrative for foreign investors, a reasonably resilient Indian economy and an improved earnings report from corporates.

Support factors

In the three quarters between March and December 2009, India Inc.'s earnings numbers have seen a sharp recovery. While the stimulus measures of the Government helped demand revive and supported sales; profits rose at a higher rate due to lower interest and input costs.

Every quarter, sequentially from March 2009, CNX 500 companies reported a double digit growth in PAT, at 20 per cent and above.

In the December 2009 quarter, companies of the same basket reported a 37 per cent growth in PAT against a 27 per cent fall in the same period last year (first signs of an earnings slowdown came in December 2008 quarter).

This was underpinned by India's strong economic growth, with GDP growth averaging 6.6 per cent between the June-December quarters. Its counterparts in the BRIC — Brazil, Russia and China — showed a mixed picture, with only China doing better.

India's growth also came on a fairly large base, as the respective quarters of the previous year saw GDP growth averaging 9.7 per cent. Corporate and economic fundamentals apart, the rupee factor too has played no small role in attracting fund flows into Indian stocks.

Between March last year and end-March 2010, the rupee moved from 51.88 to 44.9; giving more in return to FIIs than domestic investors who invested in Indian equities in this period. Dollar-denominated Sensex returns for this period stand at 146 per cent.

In recent months, a renewed debt crisis has shaken the European economies and China's efforts to cool its overheated economy too have seen investor preference for the Indian market. Lower Chinese demand also creates uncertainties for the commodity price outlook, which curtailed the rally in commodity-reliant economies such as Brazil and Russia.

Where valuations stand


Indian stocks may have outperformed other markets for good reasons.

But where do valuations stand today, relative to other global markets? If one looks at data from Bloomberg, based on their own estimates on earnings, Indian valuations do seem justified by growth prospects. But there are no doubt other cheaper markets to invest in.

The Sensex is trading at a PE of 17.2 with its earnings projected to grow by 20 per cent in the next year. China's Shanghai Composite index is trading at a PE of 18.5, much closer to the expected earnings growth of 19 per cent. European markets, as reflected by CAC 40, DAX and FTSE, are all much cheaper. They trade in a PE band of 12.5-13.5 with earnings growth projection at around 20 per cent. The US Dow Jones' PE is at 14, a discount to India for a 16 per cent estimated earnings growth in the next year.

Though the earnings outlook for Indian companies appears to have a more solid foundation than for many of the others above, India's high relative valuations do call for caution on the part of investors.

The outperformance by Indian stocks in fact suggests not a 'decoupling' from global markets, but a reiteration that it is a high beta market, that is closely pegged to global trends.

Remember the last bull market? Between January 2007 and January 2008, the MSCI India index was up 47 per cent; higher than both the MSCI EM (19 per cent) and MSCI BRIC index (32 per cent).

But as the credit crisis unfolded with Lehman Brothers going bust, India was at the bottom of the pile — leading the losers. Given the persisting high correlation between the Indian stock market and the other global ones, investors should keep in mind that Indian stocks will not be immune if the global stock markets launch into a fresh correction.


DLF arm buys out PE stake in group firm for Rs 3,085 cr


Real estate company DLF Ltd said on Saturday that its subsidiary, Caraf Builders & Constructions Pvt Ltd, acquired 24.52 crore compulsorily convertible preference shares (CCPS) in group company DLF Assets from PE firm SC Asia for Rs 3,084.68 crore.

The company said the move is in line with its strategy of consolidating shareholding of DAL, a co-developer for four IT/ITES SEZs based in Gurgaon, Chennai and Hyderabad.

With this, Caraf's stake in DLF Assets has risen to 91.90 per cent. DSIPL (a company owned by SC Asia) would continue to hold 2.72 crore CCPS, representing an economic interest of 4.59 per cent in DAL.

The balance 3.5 per cent is held by DE Shaw. Sources said that before the deal, SC Asia's stake in DAL was 45-50 per cent.

"As on December 2009, DLF had about Rs 2,700 crore cash on its books. We had surplus cash and have used it to purchase equity. Post the consolidation, DLF will have a substantial annuity and rental business. For instance, this year, we expect Rs 1,500 crore of rental business," the DLF Executive Director (Finance), Mr Saurabh Chawla, told Business Line.

To another query, Mr Chawla clarified that SC Asia is an independent PE fund, and not linked to DLF or its promoters.

"The transaction is helping us create the largest rent-yielding company. At some point when we look at monetising it through DAL listing, the DLF shareholders will benefit," he said.

On Friday, the DLF stock ended up 1.78 per cent at Rs 331.35.

In December 2009, the DLF board had approved the integration of its wholly-owned subsidiary DLF Cyber City Developers Ltd (DCCDL) with Caraf Builders & Constructions (a K.P. Singh company that then owned DLF Assets Ltd).

DLF had stated that post-integration, it would hold 60 per cent interest in the consolidated entity, and 40 per cent will be with DLF promoter Mr K P Singh and family.

The integration announced in December was aimed at resolving the perceived conflict of interest between DAL and DLF, a concern that had been flagged by analysts time and again as DAL was the prime buyer of DLF's commercial property at one time.

According to the integration blueprint, DCCDL would emerge as the Group's flagship company for holding rental assets - retail, utilities and support, IT Park and DAL (held under independent companies).

In a presentation to analysts in December, DLF had said that DAL had CCPS outstanding towards SC Asia, which had infused Rs 2,725 crore. It has also disclosed that Caraf's economic ownership in DAL on a fully diluted basis is expected to be 96 per cent once the entire outstanding CCPS are acquired.


A rally with a difference

Funds flow.


The stock market rebound since the March 2009 lows has been different on two counts: Better quality of foreign money flowing in, and greater participation by domestic institutional investors.



Srividhya Sivakumar

It is no secret that foreign institutional investors in recent years have wielded a big influence on Indian equities. No prizes, therefore, for guessing that inflows from foreign investors were responsible for driving the market from its March 2009 lows too.

But did you know that this time around FIIs have made more than a subtle change in the way they invested in Indian equities? And that a year and a global financial crisis later, domestic institutional investors too have gained considerably in prominence? A study of the funds flow data from different categories of investors as put out by both SEBI and NSE offers interesting takeaways.

Can't do without FIIs

Let's face it, Indian market has intertwined its fate with that of foreign investors, what with the market rising on higher FII inflows and falling with increasing outflows. The market plummeted on FIIs sucking out close to Rs 53,000 crore in 2008 and a dramatic about-turn in their stance starting March 2009 led the bellwether indices to more than double in value.

FIIs pumped in over Rs 83,500 crore in 2009, according to SEBI data. Interestingly, despite the fact that the market hasn't yet scaled its 2007 summit, the foreign money influx has far surpassed the 2007 peak by a good 17 per cent; the net inflow was about Rs 71,500 crore in 2007 and was even lower at about Rs 36,500 crore in 2006.

SEBI data however include FII investments made in both the primary and secondary markets (while SEBI now classifies FII investment into primary and secondary market, the classification is not available for earlier periods).

So, how have FIIs fared in secondary market alone? The FII trading activity as put out by the NSE (compiled based on the code entered by trading members in both the exchanges) reveals that from the March 2009 lows to date (as of April 19, 2010), FIIs invested over Rs 42,000 crore into Indian equities.

A good part of it perhaps came from global funds as EPFR Global-tracked equity funds recorded a net India inflow of about Rs 31,285 crore in the same period.

Traceable inflows


But that's just half the story. While the influence of FII investments on the Indian market hasn't changed much, there has been a perceptible change in the 'quality' of these flows. From an average of 45.5 per cent in 2007, participatory notes (PNs) accounted for just about 16 per cent of the total assets managed by FIIs by end-2009.

That the proportion remained low despite the surge in FII inflows in 2009 suggests 'better quality' money coming in, as against what was alleged in 2007 when the ban was put in place. SEBI had banned the use of PNs in October 2007 following concerns regarding the sudden surge in FII money flowing in through the instrument. Though it had lifted the ban a year later following the financial crisis, FIIs seem to have largely refrained from ramping up PNs once again.

Foreign investors instead seem to have preferred either registering with the capital market regulator or routing their investments through registered sub-accounts. From little over 1,200 registered FIIs and 3,644 sub-accounts at the end of December 2007, the number has increased to over 1,706 FIIs and 5,377 sub-accounts now (as of April 19, 2010). Sub-accounts include foreign corporates, foreign individuals, and institutions, funds or portfolios that are established or incorporated outside India, but on whose behalf investments are made by a FII.

Rise of DII


The NSE data on DII (domestic institutional investor) inflows too have some interesting trends to offer. One, DIIs have earned a greater say in the market after the 2008 correction. From net investments of just 54 per cent of the net FII inflows during the period May-Oct 2007 (before PNs were banned), their share has increased to over 66 per cent in the recent rally (March 2009 lows to date).

Two, it therefore may not be wrong to say that DIIs seem better placed to absorb FII selling now than they were earlier.

It merits note that DIIs had absorbed the bulk of FII selling in 2008, pumping in about Rs 81,000 crore when FIIs had sold equities worth about Rs 1,12,500 crore. DIIs comprise banks, domestic financial institutions, insurance companies, mutual funds and the investments from the new pension scheme.

Retail investors

Spiralling markets apart, retail investors have more to cheer about in this rally.

Better quality of flows: With better quality of foreign money flowing into the Indian market, investors may see fewer instances of a sudden reversal in flows as was seen following the regulatory clampdown on participatory notes. Besides, better quality flows signal a more long-term investment approach of foreign investors towards Indian equities.

DIIs are more powerful: Domestic institutional investors, though not yet a match to FIIs' strength, have certainly emerged as strong contenders in the recent rally. This bodes well for retail investors as a stronger DII lobby make them better placed to absorb FII selling in future. Improving trade volumes of both DIIs and FIIs will also help bring down the cost of transacting in the Indian market and afford better price discovery.


Strong & Weak  Stocks FOR 26TH APRIL MONDAY 2010

This is list of 10 Strong Stocks: 

DCB, Uco Bank, Pir Health, Zeel, Tata Motors, Indian Bank, Andhra Bank, Sintex, SBIN & HCL Tech.  

And this is list of 10 Weak Stocks: 

Triveni, Renuka, Bajaj Hind, Balrampur Chini, HDIL, BEL, McDowell, Tech Mahindra, ACC & Rel Capital.

The daily trend of nifty is in downtrend 


SPOT/ CASH INDEX LEVELS FOR 26TH APRIL MONDAY 2010

NSE Nifty Index   5304.10 ( 0.66 %) 34.75       
 1 23
Resistance 5320.225336.33   5361.62  
Support 5278.825253.53 5237.42

BSE Sensex 17694.20 ( 0.68 %) 120.21      
 1 23
Resistance 17768.7617843.32 17960.76
Support 17576.7617459.32 17384.76

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category DateBuy Value Sell ValueNet Value
FII23-Apr-2010 2844.922505.62 339.3
DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category DateBuy Value Sell ValueNet Value
DII23-Apr-2010 1077.121048.03 29.09

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