Market Outlook 2nd Nov 2010

Scripts to watch today : Bhel, Cairn, HCLTech, HeroHonda, Infosys, Kotak Bank, Maruti, PNB, Ranbaxy, RelCap, RelInfra, SBI, Sail, TatMotors, TataPower, Tisco

Tip for the day
	AUROPHARMA (BUY) RSI has just entered into overbought territory from neutral, showing positive crossover indicating uptrend. Stochastic is at 65, showing positive crossover, moving upward also indicating upside. MACD is trading in positive zone, showing bullish crossover indicating continuation of uptrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 1243.25 BUY 1260/1274/1286  1222 1200/1288 BAJAJHLDNG (BUY) RSI has just entered into overbought territory from neutral, showing positive crossover indicating uptrend. Stochastic is at 68, showing positive crossover, moving upward also indicating upside. MACD is trading in positive zone, showing bullish crossover indicating continuation of uptrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 931.1 BUY 945/956/972 918 900/978 TATACOMM (SELL) RSI is at 34, on the brink of entering into oversold territory, showing negative crossover indicating correction. Stochastic is at 18, just entered into oversold territory, showing negative crossover also indicating downside. MACD is trading in negative zone, showing bearish crossover indicating continuation of downtrend. Expecting wide correction if level of 300 breaches decisively. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 304.4 SELL 300/296/290 311 300/312

Strong & Weak  Stocks for 2nd Nov 2010

This is list of 10 strong stocks: 

ABG Ship, Alok Ind, SRE Infra, Titan, Dena Bank, DCB, Canara Bank, Federal Bank, Central Bank & Renuka. 

And this is list of 10 Weak stocks: 

Finan Tech, BRFL, Sail, Educomp, Apollo Tyre, Tata Chem, BEL, LITL, Moser Bear & NTPC.

The daily trend of nifty is in Downtrend 

• Supp / Resis SPOT/

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6138.38	6159.22	6186.03
		Support	6090.73	6063.92	6043.08
	Sensex	Resistance	20554.49	20753.34	20897.04
		Support	20211.94	20068.24	19869.39

SUPPORT/CASH LEVELS FOR INTRADAY TRADING

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 ABG Shipyard Ltd. NSE 474.80 487.15 458.05 499.50 441.30 516.25 428.95 Alok Industries Ltd. NSE 28.50 29.08 27.63 29.67 26.77 30.53 26.18 Apollo Tyres Ltd. NSE 71.95 72.97 71.22 73.98 70.48 74.72 69.47 Bank of Baroda NSE 1019.95 1029.87 1006.52 1039.78 993.08 1053.22 983.17 Bank of India NSE 500.50 508.58 487.73 516.67 474.97 529.43 466.88 Banking Index Benchmark Exchange Traded Scheme (Bank BeES) NSE 1272.72 1292.81 1242.81 1312.91 1212.91 1342.81 1192.81 Bombay Dyeing & Manufacturing Company Ltd. NSE 624.25 629.28 616.93 634.32 609.62 641.63 604.58 Bombay Rayon Fashions Ltd. NSE 219.10 224.90 210.25 230.70 201.40 239.55 195.60 Canara Bank NSE 742.05 750.03 730.03 758.02 718.02 770.03 710.03 Central Bank of India NSE 236.35 241.37 228.87 246.38 221.38 253.87 216.37 Dena Bank NSE 141.05 143.13 138.03 145.22 135.02 148.23 132.93 Educomp Solutions Ltd. NSE 547.45 556.17 542.37 564.88 537.28 569.97 528.57 Federal Bank Ltd. NSE 490.20 500.67 473.67 511.13 457.13 527.67 446.67 Financial Technologies (India) Ltd. NSE 999.55 1016.03 985.03 1032.52 970.52 1047.03 954.03 Lanco Industries Ltd. NSE 62.60 64.50 59.85 66.40 57.10 69.15 55.20 Lanco Infratech Ltd. NSE 63.45 64.82 62.47 66.18 61.48 67.17 60.12 Moser Baer India Ltd. NSE 64.35 65.33 63.13 66.32 61.92 67.53 60.93 Natco Pharma Ltd. NSE 271.95 274.62 269.67 277.28 267.38 279.57 264.72 National Aluminium Company Ltd. NSE 405.55 412.70 400.70 419.85 395.85 424.70 388.70 National Fertilisers Ltd. NSE 117.85 119.97 115.47 122.08 113.08 124.47 110.97 NSE Index NSE 6117.55 6138.38 6090.73 6159.22 6063.92 6186.03 6043.08 NTPC Ltd. NSE 193.20 196.62 191.27 200.03 189.33 201.97 185.92 SREI Infrastructure Finance Ltd. NSE 133.60 136.63 130.88 139.67 128.17 142.38 125.13 Tata Chemicals Ltd. NSE 386.15 398.02 374.27 409.88 362.38 421.77 350.52 Tata Coffee Ltd. NSE 614.40 637.90 600.00 661.40 585.60 675.80 562.10 Tata Communications Ltd. NSE 304.40 309.87 301.07 315.33 297.73 318.67 292.27 Tata Consultancy Services Ltd. NSE 1053.40 1063.50 1046.20 1073.60 1039.00 1080.80 1028.90 Tata Motors Ltd. NSE 1170.60 1182.53 1160.98 1194.47 1151.37 1204.08 1139.43 Tata Power Company Ltd. NSE 1404.65 1424.88 1389.38 1445.12 1374.12 1460.38 1353.88 Tata Sponge Iron Ltd. NSE 383.60 389.40 376.40 395.20 369.20 402.40 363.40 Tata Steel Ltd. NSE 591.90 599.70 587.35 607.50 582.80 612.05 575.00 Tata Teleservices (Maharashtra) Ltd. NSE 22.75 22.97 22.52 23.18 22.28 23.42 22.07 Tech Mahindra Ltd. NSE 735.60 741.40 730.40 747.20 725.20 752.40 719.40 Titan Industries Ltd. NSE 3792.50 3892.68 3628.63 3992.87 3464.77 4156.73 3364.58

*LTP stands for Last Traded Price as on Monday, November 01, 2010 4:04:19 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.

Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-01-Nov-2010.htm

TRADING CALLS

02.11.2010 ; BUY SBIBANK SL 3173 T 3210 3220 & BUY BHEL SL 2444 T 2488 2498 & BUY MARUTI SL 1488 T 1525 1535 & BUY TELCO SL 1157 T 1186 1187 & BUY PNBBANK SL 1287 T 1330 1340 & BUY LIC SL 1327 T 1361 1371 & BUY RELIANCE SL 1081 T 1108 1119 & SELL ICICI SL 1253 T 1218 1208 & BUY FEDRALBANK ABV 485 T 495 SL 480 & BUY MNM ABV 770 T 790 SL 764 & BUY WELCORP ABV 262 T 268 SL 259 & BUY BAJAJAURO ABV 1530 T 1550 SL 1520 & BUY ESSAROIL SL 147 T 160 168 & BUY BPCL SL 738 T 765 780 & BUY DCBBANK SL 70 T 77 80 & BUY BAJAJHOLDING SL 890 T 970 1000 & BUY JETAIR SL 796 T 830 850 & BUY ADANI SL 718 T 814 & BUY BEL SL 1595 T 1800 & BUY TITAN SL 3686 T 4179 & BUY HDFC SL 690 T 780 & BUY ICICI SK 1197 T 1359 & BUY UCOBANK SL 131 T 148 TRADE WITH STRICT STOPLOSS

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COMMODITY TRADING CALLS

02.11.2010 ; GOLD ABV 19810 T 19850 19900 BELOW 19710 T 19660 19610 & SILVER ABV 37090 T 37190 37290 BLW 36910 T 36810 36710 & NICKEL ABV 1045 T 1055 1065 BLW 1035 T 1025 1015 & NATGAS ABV 179 T 182 186 BLW 172 T 169 166 & CRUDE ABV 3750 T 3775 3800 BLW 3715 T 3690 3660 & COPER ABV 375 T 378 381 BLW 372 T 369 366 & ALUM ABV 106.50 T 107 108 BLW 105.50 T 105 104 & LEAD ABV 110.50 T 111 112 BLW 109.50 T 109 108 & ZINC ABV 109.50 T 110 111 BLW 108.50 T 108 107 & SOYABEEN ABV 2215 T 2230 2245 BLW 2200 T 2185 2170 & GUARSEED ABV 2135 T 2150 2170 BLW 2125 T 2110 2090 & CARDAMOM ABV 930 T 945 960 BLW 915 T 900 885 & JERRA ABV 13000 T 13200 13400 BLW 12900 T 12700 12500 & STEELLONG ABV 24925 T 24975 25025 BLW 24800 T 24750 24700 & PEPPER ABV 22025 T 22125 22225 22325 BLW 21700 T 21650 21600 21500 TRADE WITH STRICT STOPLOSS 

Buy / Sell (Nov 02, 2010)
	Buy					Sell	Net
FII	3039.50					2327.69	+711.81
DII	1631.33					1702.63	-71.30

US markets
	US stocks closed on mixed note despite an unexpected jump in US and Chinese manufacturing activity. The lack of direction came amid investors remained cautious ahead of Federal Reserve meeting as well as the midterm elections. Market rally started after news that Chinese manufacturing was surprisingly strong, rising to a six-month high. That was followed by a strong reading on US manufacturing data which is rose to 56.9 in October from 54.4 in September. But the dollar firmed against the euro following the robust manufacturing data, helping to keep some of the market gains in check. Among the day's other economic reports, construction spending increased by 0.5% in September while had been expecting a 0.7% decrease. A separate report from the Commerce Department showed that personal income edged down by 0.1% in September, while personal spending increased by 0.2%, short of projections for a 0.4% increase.

European markets
	European shares ended higher on strong manufacturing data from the UK, China and the US. However, investors were hesitant to make any fresh position ahead of the Federal Reserve's key meeting later this week, in which the US central bank is widely expected to announce another round of asset purchases. On the economic front, the Markit/CIPS Purchasing Managers' Index for the UK manufacturing sector rose to a reading of 54.9 from 53.5 in September. Mining shares rallied after metals prices were boosted by the upbeat manufacturing numbers and as the dollar was pressured by expectations that the Fed will embark on more quantitative easing measures this week.

Indian markets (Prev Day)
	Indian markets surged higher on the back of rate sensitive stocks ahead of the RBI's second quarter Monetary Policy review. Markets belled the session on a robust note tracking positive global cues and better corporate earnings. Reliance's strong quarterly performance provided strength to the markets. Heavy buying was seen across the board. Further, key benchmark indices scaled fresh intraday highs in midmorning trade amid volatility after the latest data showed that the manufacturing activity accelerated sharply in October 2010. Nifty crossed 6,100 psychological level. During early afternoon session, trading in BSE Sensex was halted at 12 PM for one hour, which was further extended till 2:30 PM, as members were facing some technical problems in getting trade confirmation. Meanwhile, Nifty continued to move higher as firm opening in European indices supported the market sentiment. Though, some profit booking was seen in FMCG, Oil & Gas and Power stocks in the last hour, markets managed to end the session on a positive note. All the sectoral indices ended in green. At the end, Sensex closed at 20,355.63 up by 323.29 points. It touched an intraday high of 20,609.65 and low of 20,267.10. Nifty ended at 6,117.55 up by 99.85 points. It made a high/low of 6,132.40 and 6,084.75 respectively.

Index Latest 1 D Chg(%) YTD(%) NSE Index (01 Nov 2010) 6117.55 1.66 17.62 Sensex (01 Nov 2010) 20355.63 1.61 16.55 Dow Jones Ind. .. (01 Nov 2010) 11124.62 0.06 6.68 Nasdaq Composit.. (01 Nov 2010) 2504.84 -0.10 10.39 Hang Seng (01 Nov 2010) 23652.94 2.41 8.14 Straits Times (01 Nov 2010) 3192.18 1.58 10.17 Sectors Close 1D Chg(%) BSE IT 6035.43 0.71 BSEPSU 10221.46 0.80 OILGAS 10987.62 0.35 Advance Decline Ratio Value(in Cr.) Exchange 6.50 404.08 SENSEX 7.33 6578.41 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) ICICI Bank Ltd. 1231.00 5.97 40.57 Mahindra & Mahindra Ltd. 765.90 4.65 41.73 Jaiprakash Associates Ltd. 124.60 3.62 -15.18 Top Gainers Close 1D Gain(%) YTD(%) ICICI Bank Ltd. 1232.00 5.93 40.48 Suzlon Energy Ltd. 58.45 5.41 -35.31 Mahindra & Mahindra Ltd. 766.50 4.47 41.83 Top Losers Close 1D Loss(%) YTD(%) Maruti Suzuki India Ltd. 1508.70 -2.74 -3.27 Hero Honda Motors Ltd. 1840.20 -1.37 7.21 NTPC Ltd. 193.15 -0.92 -18.05 Top Losers Close 1D Loss(%) YTD(%) Maruti Suzuki India Ltd. 1508.30 -2.79 -3.32 Hero Honda Motors Ltd. 1838.35 -1.44 7.02 NTPC Ltd. 193.20 -1.08 -18.01

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume ICICI Bank 1161.65 5.97 84.14 687001 RIL 1095.80 -0.25 80.49 728921 Tata Steel 590.00 0.45 31.99 537342 L&T 2021.85 2.91 31.22 150769 SBI 3151.20 1.42 28.65 89639   NSE Close %Chg Value(in Cr.) Volume ICICI Bank 1163.00 5.93 1167.46 9525228 RIL 1096.25 -0.28 769.20 6973910 L&T 2027.80 2.77 358.00 1731708 Tata Steel 589.40 0.42 328.55 5511066 SBI 3150.60 1.52 280.94 878317   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr)    Most Active Puts by Contract Value (in Cr)    Most Active Future by Contracts Value (in Cr)     Commodities     Oil prices jumped to settle near USD 83 after comments by Saudi Arabia about consumers tolerating oil prices as high as $90 a barrel and unease about bombs found in Greece fueled earlier gains. Gold prices settled lower, below USD 1,351 as the dollar firmed. It recieved some support from the expectations that Federal Reserve will unveil further US quantitative easing at a meeting on Nov 2-3.         International News     Personal income in the US unexpectedly showed a modest decrease in the month of September. The report showed that personal income edged down by 0.1% in September following a revised 0.4% increase in August. (RTT News) An index measuring the average asking price for a home in Australia rose 0.1% in the third quarter of 2010 compared to the previous three months. That was in line with expectations for a flat reading following the 3.1% gain in the second quarter. (Action Forex) AIG has raised USD 37 billion from the recent sale of two foreign insurance units to help repay US government bailout money. It closed its ale of American Life Insurance Co. to MetLife Inc. for USD 16.2 billion. (Economic Times)         Domestic News     The Reserve Bank hinted at a marginal hike in key policy rates when it reviews its monetary stance on Tuesday, saying inflation was still above the comfort zone and that there was uptick in credit to non-food sectors. (Economic Times) Indian automobile manufacturers Monday reported stellar sales figures for the month of October as the festive season saw rising demands. Maruti Suzuki, Tata Motors, TVS, Hyundai, Ford and General Motors all posted higher sales as demand continued to grow on account of easy availability of loans and introduction of newer models. (Sify Finance). Despite a slowdown in industrial activity, Corporate India's optimism in the business outlook for the October-December quarter is at a record high on the back of unprecedented foreign capital inflows and strong overseas demand for domestic products, says a new report. (Economic Times) Global Cues:U.S. stocks rose, recovering from a late-day tumble, as growth in Chinese and American manufacturing and speculation the Federal Reserve will pump cash into the economy overshadowed a report that JPMorgan Chase & Co. was being probed for mortgage deals.      Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 62.16 0.57 % 0.57 % GBP 71.41 0.68 % 0.68 % USD 44.42 -0.27 % -0.27 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 3463.00 3463.00 617655.00 Equity Out flows 2499.10 2499.10 503768.30 Net 963.90 963.90 113886.80

*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