Market Outlook 5th Oct 2010

Strong & Weak Stocks

This is list of 10 strong stocks: 

Orchid Chem, Bhushan Steel, Jindal SWHL, UCO Bank, IDBI, Alstom, Ranbaxy, India Info, Punj Lloyd & DLF. 

And this is list of 10 Weak Stocks: 

Finan Tech, Asian Paint, GT Offshore, Nagar Cont, Patni, Idea, BRFL, GMR Infra, Indian Hotel & IOC.

The daily trend of nifty is in Uptrend 

• Supp / Resis SPOT/CASH INDEX LEVELS FOR INTRADAY

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6206.13	6252.82	6283.53
		Support	6128.73	6098.02	6051.33
	Sensex	Resistance	20642.53	20809.32	20911.91
		Support	20373.15	20270.56	20103.77

SUPPORT/RESISTANCE LEVELS FOR INTRADAY TRADING

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 Alstom Projects India Ltd. NSE 858.00 874.33 833.83 890.67 809.67 914.83 793.33 Asian Paints Ltd. NSE 2646.30 2690.77 2620.97 2735.23 2595.63 2760.57 2551.17 Bank of Baroda NSE 904.30 912.80 892.90 921.30 881.50 932.70 873.00 Bank of India NSE 536.35 541.28 529.33 546.22 522.32 553.23 517.38 Banking Index Benchmark Exchange Traded Scheme (Bank BeES) NSE 1263.82 1278.55 1255.55 1293.27 1247.27 1301.55 1232.55 Bhushan Steel Ltd. NSE 506.65 532.67 459.97 558.68 413.28 605.37 387.27 Bombay Dyeing & Manufacturing Company Ltd. NSE 649.35 659.83 637.03 670.32 624.72 682.63 614.23 Bombay Rayon Fashions Ltd. NSE 255.00 258.27 253.37 261.53 251.73 263.17 248.47 DLF Ltd. NSE 390.90 397.38 384.53 403.87 378.17 410.23 371.68 Financial Technologies (India) Ltd. NSE 1200.15 1219.43 1176.43 1238.72 1152.72 1262.43 1133.43 GMR Infrastructure Ltd. NSE 57.20 57.85 56.80 58.50 56.40 58.90 55.75 Great Eastern Shipping Company Ltd. NSE 326.55 331.65 320.40 336.75 314.25 342.90 309.15 Great Offshore Ltd. NSE 372.80 377.03 369.53 381.27 366.27 384.53 362.03 IDBI Bank Ltd. NSE 161.15 162.93 159.13 164.72 157.12 166.73 155.33 Idea Cellular Ltd. NSE 72.35 75.10 70.40 77.85 68.45 79.80 65.70 India Cements Ltd. NSE 116.65 119.08 115.28 121.52 113.92 122.88 111.48 India Infoline Ltd. NSE 120.75 124.00 118.25 127.25 115.75 129.75 112.50 Indiabulls Financial Services Ltd. NSE 146.30 148.15 145.00 150.00 143.70 151.30 141.85 Indiabulls Power Ltd. NSE 28.70 29.17 28.37 29.63 28.03 29.97 27.57 Indiabulls Real Estate Ltd. NSE 180.25 183.20 177.55 186.15 174.85 188.85 171.90 Indiabulls Securities Ltd. NSE 28.20 29.42 27.52 30.63 26.83 31.32 25.62 Indian Oil Corporation Ltd. NSE 415.65 422.12 410.37 428.58 405.08 433.87 398.62 Indian Overseas Bank NSE 143.25 147.87 135.12 152.48 126.98 160.62 122.37 Indraprastha Gas Ltd. NSE 310.80 323.70 303.10 336.60 295.40 344.30 282.50 IndusInd Bank Ltd. NSE 268.85 274.72 262.12 280.58 255.38 287.32 249.52 Jindal Drilling & Industries Ltd. NSE 549.00 558.27 543.07 567.53 537.13 573.47 527.87 Jindal Photo Ltd. NSE 235.40 240.57 231.47 245.73 227.53 249.67 222.37 Jindal Poly Films Ltd. NSE 987.45 1005.07 976.72 1022.68 965.98 1033.42 948.37 Jindal Saw Ltd. NSE 215.45 220.23 212.33 225.02 209.22 228.13 204.43 Jindal South West Holdings Ltd. NSE 2210.35 2246.57 2178.57 2282.78 2146.78 2314.57 2110.57 Jindal Steel & Power Ltd. NSE 732.60 742.53 724.48 752.47 716.37 760.58 706.43 Nagarjuna Construction Co. Ltd. NSE 156.60 159.97 153.97 163.33 151.33 165.97 147.97 Nagarjuna Fertilisers & Chemicals Ltd. NSE 30.80 31.20 30.45 31.60 30.10 31.95 29.70 NSE Index NSE 6159.45 6206.13 6128.73 6252.82 6098.02 6283.53 6051.33 Orchid Chemicals & Pharmaceuticals Ltd. NSE 276.20 283.67 269.37 291.13 262.53 297.97 255.07 Patni Computer Systems Ltd. NSE 431.05 437.25 423.60 443.45 416.15 450.90 409.95 Punj Lloyd Ltd. NSE 137.45 140.38 132.38 143.32 127.32 148.38 124.38 Punjab National Bank NSE 1309.60 1322.48 1296.13 1335.37 1282.67 1348.83 1269.78 Ranbaxy Laboratories Ltd. NSE 597.60 609.63 576.93 621.67 556.27 642.33 544.23 UCO Bank NSE 129.20 133.92 120.77 138.63 112.33 147.07 107.62

*LTP stands for Last Traded Price as on Monday, October 04, 2010 4:04:26 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.

TRADING CALLS (3-5 DAYS)

BUY TWL ABV 475 T 485 495 505 515 SL 470 & CADIAL ABV 700 T 710 720 730 740 SL 695 & BHEL ABV 2590 T 2610 2630 2650 2670 SL 2580 & GLENMARK ABV 311 T 315 319 324 329 SL 308 & MNM ABV 715 T 725 735 745 755 765 SL 710 & RECLTD ABV 367 T 370 373 376 379 SL 365 & PUNJLLOYD ABV 133 T 136 139 142 145 SL 131 & COREPROJECT ABV 305 T 308 311 314 317 SL 303 & EDUCOM ABV 610 T 620 630 640 650 SL 605 & SAIL ABV 228 T 228 231 234 237 240 SL 225 & BANKINDIA ABV 510 T 530 550 570 590 610 SL 500 7 HCLTECH ABV 410 T 430 450 470 490 510 SL 400 & TCS ABV 950 T 975 1000 1025 1050 SL 933 & NIFTY ABV 6057 TGT 6160 6260 6360 6460 6560 6660 6760 6860 6960 7070 SL 6040

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BUY BOSCH ABV 6300 T 6350 6400 BLW 6200 T 6150 6100 & TITAN ABV 3340 T 3380 3420 BLW 3280 T 3240 3200 & ZEEL ABV 308 T 311 314 BLW 304 T 301 298 & SAIL ABV 226 T 229 232 BLW 222 T 219 216 & HINDALCO ABV 210 T 214 218 BLW 205 T 201 197 & BOBBANK ABV 910 T 920 930 BLW 890 T 880 870 & ICICIBANK ABV 1160 T 1175 1190 BLW 1150 T 1135 1120 & JSWSTEEL ABV 1400 T 1420 1440 BLW 1380 T 1360 1340 & JINDALSWL ABV 2230 T 2260 2290 BLW 2190 T 2160 2130 & SESAGOA ABV 365 T 370 375 BLW 355 T 350 345 & KOTAKBANK ABV 510 T 520 530 BLW 500 T 490 480 & WIPRO ABV 470 T 480 490 BLW 460 T 450 440 & INFOSYS ABV 3115 T 3135 3155 BLW 3060 T 3040 3020 & TCS ABV 966 T 980 995 1010 BLW 950 T 935 920 905

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BREAK OUT CALLS ONLY ABOVE OR BELOW SAID LEVELS

NIFTY ABV 6210 T 6230 6250 6270 BLW 6170 T 6150 6130 6110 & ABAN ABV 865 T 875 885 BLW 855 T 845 835 & ABB ABV 945 T 960 975 BLW 925 T 910 895 & ACC ABV 1020 T 1035 1050 BLW 1010 T 995 980 & AXISBANK ABV 1590 T 1610 1630 BLW 1560 T 1540 1520 & BHEL ABV 2645 T 2665 2685 BLW 2605 T 2585 2565 & BHUSANSTEEL ABV 510 T 520 530 BLW 480 T 470 460 & DLF ABV 394 T 398 402 BLW 388 T 384 380 & HDIL ABV 276 T 280 284 BLW 272 T 268 264 & HDFC ABV 2510 T 2530 2550 BLW 2480 T 2460 2420 & TISCO ABV 676 T 682 690 BLW 666 T 660 654 & TELCO ABV 1142 T 1154 1166 1178 BLW 1122 T 1110 1098 1086 & TATAPOWER ABV 1400 T 1415 1430 BLW 1370 T 1355 1340 & ONGC ABV 1420 T 1440 1460 BLW 1380 T 1360 1340 RELINFRA ABV 1090 T 1110 1130 BLW 1070 T 1050 1030 & RELCAP ABV 825 T 835 845 855 BLW 810 T 800 790 780 & RELIANCE ABV 1030 T 1050 1070 1090 1110 BLW 1010 T 990 970 950 930

Buy / Sell (Oct 04, 2010)
	Buy					Sell	Net
FII	4193.91					2929.80	+1264.11
DII	1139.91					1937.74	-797.83

01st Oct 2010   Market Snapshot   01-Oct 24-Sept Nifty 6,143.40 6,018.30 Sensex 20,445.04 20,045.18 NSE F&O Turnover (Rs. Cr) 1,18,232.26 1,45,122.34 PC Ratio 1.05 1.28 India VIX 21.43 21.71   Weekly Open Interest Gainers Stocks OI % Change in Price IFCI 11,00,60,000 6.83 ISPATIND 9,51,61,000 2.64 SUZLON 8,33,12,000 0.09 UNITECH 6,56,40,000 10.23 RENUKA 5,41,78,000 7.23 Weekly Open Interest Losers Stocks OI % Change in Price BOSCHLTD 45,750 0.56 CONCOR 51,500 -0.01 ASIANPAINT 1,85,250 -4.48 BEML 2,23,500 1.53 BEL 2,30,750 0.38 Technical Outlook Technical momentum indicator Stochastic is currently moving in neutral zone, on the brink of entering into oversold territory indicating uptrend. RSI is trading in oversold territory at 77 showing positive crossover. While MACD is on the verge of giving negative breakout and currently showing maximum divergence. Expecting Nifty to trade in narrow range of 100 points in forthcoming trading session. Nifty could face stiff resistance at 6,210-6,230, if this level breached decisively then we could see rally up to 6,260 mark and on the flip side immediate strong support at 5,960 if this level breached then we could see fall up to 5,920 mark. Derivative Outlook Nifty ended the week on a positive note at 6,143.40 mark, gaining 2.08%. The Nifty October futures ended at 6,176 with premium of 32.60 points. If we look at the derivatives data we can see that Nifty future prices ended in the positive territory along with rise in open interest, with incline in cost of carry this is an indication of continuously long position is being built up . For the coming week Nifty may continue to face resistance at higher levels of 6,180-6,250 whereas on the downside support is seen at 5,880-5,950 levels. Sector Outlook This week, buying is expected in FMCG, Cement and Auto sectors from lower supports of 6,000 level while profit booking could be seen in Banking, Realty and Metal stocks if the Nifty fails to sustain above 6,000 level. Derivative Strategies for the week: Short Nifty October 6000 Put Option and Simultaneously Short 6300 Call Option CMP: 6,143.40 View: Range Bound Strategy: Strangle Market Lot: 50 Long RELIANCE October 1020 Call Option and simultaneously Short1040 Call Option CMP: 1,007.90 View: Positive Strategy: Bull Spread Market Lot: 250

FOR DETAILS WEEKLY DERIVATIVE REPORT ON http://www.indiabulls.com/securities/mailermis/special-reports/pdf/Weekly_Derivative_Insight_October_01_2010.pdf

*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

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Arvind Parekh
+ 91 98432 32381