Market Outlook 13th Oct 2010

Strong & Weak stocks

This is list of 10 strong stocks: 

ABG Ship, Orchid Chem, Rel Media, IFCI, MLL, Bhushan Steel, KFA, Chambal Fert, Shipping Corp & Vijaya Bank. 

And this is list of 10 Weak stocks

Finan Tech, Nagar Cont, Praj Ind, Bharti Airtel, Mcdowell-N, TV-18, DCHL, BGR Energy, GTL Infra & Asian Paint.

The daily trend of nifty is in Uptrend AR

• Supp / Resis SPOT/ CASH LEVELS FOR INTRADAY

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6137.92	6184.93	6224.92
		Support	6050.92	6010.93	5963.92
	Sensex	Resistance	20345.41	20487.48	20606.56
		Support	20084.26	19965.18	19823.11

TRADING CALLS

BUY NIFTY ABV 6132 T 6144 6157 6184 SL 6125 & SELL BLW 6105 T 6092 609 6053 SL 6112 

BUY BANKNIFTY ABV 12540 T 12580 12620 12660 SL 12520 & SELL BLW 12490 T 12450 12410 12370 SL 12510 

BUY AXISBANK ABV 1560 T 1570 1580 1590 SL 1552 

BUY CENTEX ABV 524 T 528 532 536 SL 521 

BUY EDUCOM ABV 635 T 640 645 650 SL 631 

BUY ESSAROIL ABV 140 T 142 144 146 SL 138 

BUY DLF ABV 380 T 384 388 392 SL 378 

BUY HDIL ABV 272 T 274 276 278 SL 270 

BUY HPCL ABV 515 T 520 525 530 SL 510 

BUY TATACEM ABV 424 T 428 432 436 SL 421 

BUY TCS ABV 955 T 965 975 985 SL 950 

BUY TVS ABV 75 T 76 78 79 SL 74 

BUY RELCAP ABV 850 T 860 870 880 SL 844 

BUY PATNANI ABV 446 T 450 454 458 SL 443 

SUPPORT/RESISTANCE LEVELS IN CASH / SPOT MARKET FOR INTRA-DAY TRADING

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 ABG Shipyard Ltd. NSE 319.00 325.20 309.40 331.40 299.80 341.00 293.60 Asian Paints Ltd. NSE 2660.65 2680.73 2642.78 2700.82 2624.92 2718.68 2604.83 Bank of Baroda NSE 968.65 984.70 946.80 1000.75 924.95 1022.60 908.90 Bank of India NSE 548.85 563.72 537.27 578.58 525.68 590.17 510.82 Banking Index Benchmark Exchange Traded Scheme (Bank BeES) NSE 1257.49 1263.64 1246.69 1269.80 1235.90 1280.59 1229.74 BGR Energy Systems Ltd. NSE 769.05 785.03 758.03 801.02 747.02 812.03 731.03 Bharti Airtel Ltd. NSE 339.05 343.83 335.93 348.62 332.82 351.73 328.03 Bhushan Steel Ltd. NSE 499.50 509.33 492.33 519.17 485.17 526.33 475.33 Chambal Fertilisers & Chemicals Ltd. NSE 81.35 82.95 79.40 84.55 77.45 86.50 75.85 Deccan Chronicle Holdings Ltd. NSE 129.25 132.47 127.27 135.68 125.28 137.67 122.07 Financial Technologies (India) Ltd. NSE 1156.60 1176.73 1143.73 1196.87 1130.87 1209.73 1110.73 GTL Infrastructure Ltd. NSE 44.80 45.33 44.33 45.87 43.87 46.33 43.33 IFCI Ltd. NSE 75.50 76.45 73.90 77.40 72.30 79.00 71.35 Kingfisher Airlines Ltd. NSE 79.35 81.42 77.87 83.48 76.38 84.97 74.32 McDowell Holdings Ltd. NSE 156.90 158.57 154.17 160.23 151.43 162.97 149.77 Mercator Lines Ltd. NSE 66.95 68.68 64.73 70.42 62.52 72.63 60.78 Nagarjuna Construction Co. Ltd. NSE 148.80 151.58 146.78 154.37 144.77 156.38 141.98 Nagarjuna Fertilisers & Chemicals Ltd. NSE 33.95 34.63 33.08 35.32 32.22 36.18 31.53 NSE Index NSE 6090.90 6137.92 6050.92 6184.93 6010.93 6224.92 5963.92 Orchid Chemicals & Pharmaceuticals Ltd. NSE 280.65 287.97 275.22 295.28 269.78 300.72 262.47 Praj Industries Ltd. NSE 74.40 76.48 73.23 78.57 72.07 79.73 69.98 Reliance Capital Ltd. NSE 844.70 856.87 835.27 869.03 825.83 878.47 813.67 Reliance Communications Ltd. NSE 186.60 188.72 183.42 190.83 180.23 194.02 178.12 Reliance Industrial InfraStructure Ltd. NSE 894.40 909.97 882.52 925.53 870.63 937.42 855.07 Reliance Industries Ltd. NSE 1055.60 1067.95 1044.70 1080.30 1033.80 1091.20 1021.45 Reliance Infrastructure Ltd. NSE 1077.90 1102.52 1054.22 1127.13 1030.53 1150.82 1005.92 Reliance Media Works Ltd. NSE 275.45 283.67 270.22 291.88 264.98 297.12 256.77 Reliance Natural Resources Ltd. NSE 40.25 40.73 39.88 41.22 39.52 41.58 39.03 Reliance Power Ltd. NSE 163.50 165.13 162.43 166.77 161.37 167.83 159.73 Religare Enterprises Ltd. NSE 479.65 487.53 474.53 495.42 469.42 500.53 461.53 Shipping Corporation of India Ltd. NSE 188.00 192.23 181.33 196.47 174.67 203.13 170.43 Television Eighteen India Ltd. NSE 89.95 91.70 88.85 93.45 87.75 94.55 86.00 Vijaya Bank NSE 93.90 94.93 92.98 95.97 92.07 96.88 91.03

*LTP stands for Last Traded Price as on Tuesday, October 12, 2010 4:03:20 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.

 International News

Data from the BRC Retail Sales Monitor for UK  has shown a total increase in sales of 2.2% and like-for-like growth of 0.5% in September. Food sales grew 4.0% for the three months from July to September, with food like-for-likes up 2.1%.

The RICS Housing Market net price balance for UK fell to -36 in September 2010 from -32 in August. The Balance has decreased for fourth consecutive month now.

Japanese consumer confidence has worsened in September. The survey's sentiment index for general households, which includes views on incomes and jobs, was 41.2 in September, down from 42.4 in August, deteriorating for the third straight month.

 Domestic News

Private sector lender Axis Bank has received approval from the RBI to set up a subsidiary in the UK, as well as permission to upgrade its Shanghai representative office into a branch.

FMCG player Dabur has completed the Rs 324 crore acquisition of Turkey-based personal care products maker Hobi Kozmetik Group.The completion of this acquisition represents a significant step for Dabur strategy to accelerate growth in the international market.

Civil Aviation Minister Praful Patel has said that the National air-carrier Air India is likely to receive Government approval for a Rs.1,200 crore equity infusion by month-end.

US markets

US stocks ended marginally higher following the minutes from Federal Reserve meeting kept hope alive that the central bank would further aid the slugging economic recovery. The minutes from the Federal Reserve's September meeting indicated most members of the central bank have agreed to consider reinitiating quantitative easing measures "before long". Also, central bankers reduced their growth projections through 2012 and believe buying assets to stimulate the economy is warranted. On the corporate front, Pfizer announced that it has agreed to purchase King Pharmaceuticals for USD 3.6 billion in cash or USD 14.25 per share. Building materials firm Fastenal reported third quarter earnings that edged out estimates by a penny, while its quarterly revenues topped forecasts by nearly 10 million.

European markets

European markets closed lower as commodity prices retreated, dragging down shares of miners and energy producers. Investors also noted some apprehension ahead of minutes from Federal Open Market Committee meeting, due after the European close. In economic news, British annual consumer-price inflation held steady at 3.1% in September. Meanwhile, UK retail same-store sales edged up 0.5% annually in September following a 1.0% increase in August. In Germany, wholesale price inflation rose 7.6% year-on-year in September after a 6.4% increase in August and consumer price index rose 1.3% year-on-year in September up from the 1% rate recorded in August. Also, the French current account balance widened to EUR 4.0 billion in August from EUR 2.1 billion in the prior month

Buy / Sell (Oct 12, 2010)   Buy Sell Net FII 2913.84 2458.08 +455.73 DII 1106.08 1561.32 -454.52

*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