Market Outlook 8th May 2010

SPOT/ CASH LEVELS ON INDEX TODAY

	5034.00	( -1.98 %)	-101.50
		1	2	3
Resistance		5109.88	5185.77	5238.58
Support		4981.18	4928.37	4852.48

	16781.07		( -1.97 %)	-336.62
			1	2	3
Resistance			17004.98	17228.90	17388.02
Support			16621.94	16462.82	16238.90

Corporate News Headline
•	Tata Steel bought additional stake in New Millennium Capital Corp for about Rs. 892.5 bn, thereby increasing its shareholding in the Canadian mining company to 27.4%. (BS)
•	BHEL commissioned two gas-based power projects in the United Arab Emirates and Oman. "BHEL commissioned the 2x42-MW gas turbine-based power project of Al Ghail Power Company in Ras Al Khaima, near Dubai, and a 26-MW gas turbine generator at Oman refinery and petrochemical plant in Muscat". (BS)
•	Reliance Communications and AT&T have talked about a potential transaction in which the US telecoms giant would take a significant minority stake in the Indian firm. (BS)
Economic and Political Headline
•	An Empowered Group of Ministers deferred a decision on freeing petrol and diesel prices from government control for want of quorum, but discussed the impact of such a move on inflation. Freeing petrol and diesel prices would mean an up to Rs 3.50 a litre hike in rates of these fuels, and this could send wholesale prices-based inflation up by 1.4 percentage points. (BS)
•	Employment by American companies rose less than forecast in May and workers dropped out of the labor force, signaling the world's largest economy is still reliant on government assistance to boost growth. Private payrolls rose by 41,000, Labor Department figures showed. (Bloomberg)
•	European Central Bank President Jean- Claude Trichet and Treasury Secretary Timothy F. Geithner diverged on prescriptions to sustain growth, with Europe set to tighten budgets and the US seeking stronger domestic demand. The impact of narrower budget gaps "on growth could not be considered negative because it would improve confidence," Trichet told reporters. (Bloomberg)

Strong & Weak Stocks

This is list of 10 strong stocks: 

RCOM, UCO Bank, Vijaya Bank, Colpal, Uniphos, Dish TV, Federal Bank, Bank of Baroda, ONGC & Dr Reddy.   

And this is list of 10 Weak Stocks: 

Grasim, Aban Off shore, Punj Lloyd, Tata Steel, Bhushan Steel, Suzlon, MLL, Hindalco, KS Oils & Ster.

The daily trend of nifty is in Uptrend 

Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-08Jun2010.htm

Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-07-Jun-2010.htm

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	07-Jun-2010	1625.33	2028.78	-403.45

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	07-Jun-2010	795.44	997.95	-202.51

SUPPORT / RESISTANCE LEVELS IN CASH MARKET

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 Aban Offshore Ltd. NSE 674.45 683.47 666.97 692.48 659.48 699.97 650.47 Bank of Baroda NSE 745.90 760.07 726.17 774.23 706.43 793.97 692.27 Bank of India NSE 328.05 330.60 324.60 333.15 321.15 336.60 318.60 Bank of Rajasthan Ltd. NSE 163.60 165.27 161.17 166.93 158.73 169.37 157.07 Banking Index Benchmark Exchange Traded Scheme (Bank BeES) NSE 923.41 932.27 912.28 941.13 901.15 952.26 892.29 Bhushan Steel Ltd. NSE 1297.65 1338.10 1259.10 1378.55 1220.55 1417.10 1180.10 Colgate-Palmolive (India) Ltd. NSE 820.60 851.50 769.90 882.40 719.20 933.10 688.30 Dish TV India Ltd. NSE 40.70 41.70 39.80 42.70 38.90 43.60 37.90 Federal Bank Ltd. NSE 335.35 340.57 330.07 345.78 324.78 351.07 319.57 Grasim Industries Ltd. NSE 1752.15 1767.77 1738.77 1783.38 1725.38 1796.77 1709.77 Hindalco Industries Ltd. NSE 140.65 145.37 135.47 150.08 130.28 155.27 125.57 Mercator Lines Ltd. NSE 44.65 45.20 44.10 45.75 43.55 46.30 43.00 NSE Index NSE 5034.00 5109.88 4981.18 5185.77 4928.37 5238.58 4852.48 Punj Lloyd Ltd. NSE 116.65 118.48 113.83 120.32 111.02 123.13 109.18 Punjab National Bank NSE 1003.00 1014.12 986.62 1025.23 970.23 1041.62 959.12 Reliance Capital Ltd. NSE 666.35 675.73 654.73 685.12 643.12 696.73 633.73 Reliance Communications Ltd. NSE 176.60 182.87 166.17 189.13 155.73 199.57 149.47 Reliance Industries Ltd. NSE 1007.75 1015.17 1000.17 1022.58 992.58 1030.17 985.17 Reliance Natural Resources Ltd. NSE 52.65 53.30 52.00 53.95 51.35 54.60 50.70 Sterlite Industries (India) Ltd. NSE 621.15 628.27 615.67 635.38 610.18 640.87 603.07 Suzlon Energy Ltd. NSE 54.60 55.37 53.47 56.13 52.33 57.27 51.57 Tata Motors Ltd. NSE 737.10 751.27 727.67 765.43 718.23 774.87 704.07 Tata Steel Ltd. NSE 462.15 469.60 456.10 477.05 450.05 483.10 442.60 Tata Tea Ltd. NSE 1073.05 1079.70 1065.70 1086.35 1058.35 1093.70 1051.70 UCO Bank NSE 81.65 83.43 78.93 85.22 76.22 87.93 74.43 Uniphos Enterprises Ltd. NSE 31.60 32.07 31.07 32.53 30.53 33.07 30.07 Vijaya Bank NSE 62.30 63.75 59.90 65.20 57.50 67.60 56.05

*LTP stands for Last Traded Price as on Monday, June 07, 2010 4:04:25 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.

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