This is list of 10 strong stocks
Federal Bank, EKC, ABB, Titan, Tata Tea, Glaxo, DCB, Dena Bank, Hind Petro & Opto Circuits.
And this is list of 10 Weak Stocks
Aban Off shore, RNRL, MTNL, Educomp, Ster, Hind Zinc, Punj Lloyd, Idea, Tata Steel & Moser Bear.
The daily trend of nifty is in downtrend
Derivatives EOD Report http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-19-May-2010.htm
SPOT / CASH LEVELS TODAY
 | 4919.65 | ( -2.89 %) | -146.55 |  |
| 1 | 2 | 3 | ||
| Resistance | 5020.45 | 5121.25 | 5177.40 | |
| Support | 4863.50 | 4807.35 | 4706.55 | |
 | 16408.49 | ( -2.77 %) | -467.27 | | |
| 1 | 2 | 3 | |||
| Resistance | 16682.81 | 16957.14 | 17111.88 | ||
| Support | 16253.74 | 16099.00 | 15824.67 | ||
NIFTY FUTURES (F & O):
Selling may continue up to 4891 level for time being.
Hurdles at 4933 & 4941 levels. Above these levels, expect short covering up to 4985-4987 zone and thereafter expect a jump up to 5030-5032 zone by non-stop.
Sell if touches 5134-5136 zone. Stop Loss at 5178-5180 zone.
On Negative Side, break below 4844-4846 zone can create panic up to 4800-4802 zone by non-stop. If breaks & sustains below this zone then down trend may continue and have caution.
Short-Term Investors:
Bearish Trend.
Down Side Target at 4706.40.
Stop Loss at 5218.00.
BANK NIFTY FUTURES (F & O):
Selling may continue up to 9071 level for time being.
Hurdles at 9128 & 9172 levels. Above these levels, expect short covering up to 9295-9297 zone and thereafter expect a jump up to 9417-9419 zone by non-stop.
Sell if touches 9702-9704 zone. Stop Loss at 9824-9826 zone.
On Negative Side, break below 8947-8949 zone can create panic up to 8824-8826 zone by non-stop. If breaks & sustains below this zone then down trend may continue and have caution.
Short-Term Investors:
Bearish Trend.
Down Side Target at 8757.45.
Stop Loss at 9838.95.
STOCK FUTURES (NSE):
ABAN FUTURES
Aban Offshore said it would consider raising funds by selling shares in the domestic as well as international markets.
The company's board would meet on May 25 to discuss about raising long-term funds through foreign currency convertible bonds (FCCB), American Depository Receipts and Global Depository Receipts, Aban Offshore said in a filing to the BSE.
Technicals:
Yesterday's fall was not a surprise. Do not worry about this fall & Bears manipulated.
If ongoing fall continues, then it can tumble up to 627.10 level by non-stop and have caution. Target is too far on down side & Bears will have to work hard too.
If start rebounds, then expect a jump up to 759.00 level by non-stop. It looks that, risk is too high & Short Sellers need to be cautious too.
ORCHIDCHEM FUTURES (5 Trading Day's Holding)
Orchid Chemicals & Pharmaceuticals Ltd has announced that a meeting of the Board of Directors of the Company will be held on May 27, 2010 to approve the audited financial results of the Company for the financial year ended March 31, 2010.
The Board will also consider recommendation of dividend on equity capital for the financial year ended March 31, 2010.
Technicals:
Selling taken place in last 5 trading days. Real Selling too.
If ongoing fall continues, then it can tumble up to 107.70 level by non-stop and have caution. Target is too far on down side & Bears will have to work hard too.
If start rebounds, then expect a jump up to 152.30 level by non-stop. It looks that, risk is too high & Short Sellers need to be cautious too.
OPTIONS (NSE):
NIFTY 5000 PUT OPTION
Yesterday's rally was a surprise. Real Buying too.
If ongoing uptrend continues, then expect a jump up to 145.60 level by non-stop. It looks that, uptrend may be limited from current levels and have caution.
If Start Corrects, then expect a slide up to 70.30 level by non-stop. Risk is too high & Bulls will have to be careful too.
SBIN 2200 PUT OPTION
Yesterday's rally was a surprise. Real Buying too.
If ongoing uptrend continues, then expect a jump up to 52.55 level by non-stop.
If Start Corrects, then expect a slide up to 22.00 level by non-stop.
Equity:
ICICIBANK (NSE Cash)
Paying a high price for the Bank of Rajasthan. Based on the swap rate for the all-stock deal and Tuesday's closing prices, ICICI would pay 188.42 rupees per share, a premium of 89 percent to the small lender's Tuesday close, valuing the business at $668 million.
Technicals:
Yesterday's fall was not a surprise. Real Selling too.
If ongoing fall continues, then it can tumble up to 750.00 level by non-stop and have caution. Target is too far on down side & Bears will have to work hard too.
If start rebounds, then expect a jump up to 884.00 level by non-stop. It looks that, risk is too high & Short Sellers need to be cautious too.
TATAMOTORS (NSE Cash)
Truck maker Beiqi Foton Motor Co plans to be the second major Chinese automotive manufacturer to set up a plant in India.
Foton, China's top light commercial vehicle maker and a partner of Daimler AG, follows SAIC Motor in a move into the booming Indian auto sector.
It aims to make 100,000 vehicles annually within four years of starting production, which could be as early as 2011, sources familiar with the situation told Reuters on Wednesday.
Foton declined to comment. A Daimler spokesman in China acknowledged that the partners would explore international opportunities but that China would remain its top priority.
It was unclear whether Daimler, which has a truck manufacturing venture with Foton in China, was involved in the India project.
Foton faces stiff competition in India. Japan's Nissan is scheduled to roll out its trucks in a joint venture with local player Ashok Leyland in 2011.
Daimler is investing $969 million over the next five years on a truck-making facility in southern India and plans to start production from mid-2012.
Its rival MAN SE has a joint venture with India's Force Motors while Sweden's Volvo, which has been present in India for more than a decade, has a joint venture with Eicher Motors.
Late last year General Motors teamed up with China's SAIC in a venture to make mini commercial vehicles in India.
The truck market in India is dominated by Tata Motors , which has a 65 percent market share. But local players like utility vehicles maker Mahindra & Mahindra are also getting into the segment.
Technicals:
Yesterday's fall was not a surprise. Do not worry about this fall & Bears manipulated.
If ongoing fall continues, then it can tumble up to 656.95 level by non-stop and have caution. Target is too far on down side & Bears will have to work hard too.
If start rebounds, then expect a jump up to 772.85 level by non-stop. It looks that, risk is too high & Short Sellers need to be cautious too.
TAKE (NSE Cash)
Bharat Sanchar Nigam has given Letters of Intent (LoI) to Take Solutions (Actually BSNL selected other 3 firms also) to roll out WiMax-based broadband services as a franchisee.
Take Solution has a tie-up with Chinese vendor ZTE.
The private firms have offered to give between 10% and 32% of the revenue earned across various circles to BSNL.
Take Solution had emerged the lowest bidder in Tamil Nadu, Uttar Pradesh and Orissa.
SUPPORT & RESISTANCE LEVELS FOR TOP TRADED STOCKS
Company Name  | Exchange | LTP* | R1 #1 | S1 @1 | R2 #2 | S2 @2 | R3 #3 | S3 @3 |
|---|---|---|---|---|---|---|---|---|
| Abbott India Ltd. | NSE | 1069.90 | 1114.57 | 1040.62 | 1159.23 | 1011.33 | 1188.52 | 966.67 |
| Everest Kanto Cylinder Ltd. | NSE | 140.85 | 144.80 | 137.05 | 148.75 | 133.25 | 152.55 | 129.30 |
| Federal Bank Ltd. | NSE | 312.70 | 319.25 | 306.90 | 325.80 | 301.10 | 331.60 | 294.55 |
| GlaxoSmithkline Consumer Healthcare Ltd. | NSE | 1629.00 | 1657.47 | 1610.77 | 1685.93 | 1592.53 | 1704.17 | 1564.07 |
| Hind Rectifiers Ltd. | NSE | 56.25 | 57.75 | 55.45 | 59.25 | 54.65 | 60.05 | 53.15 |
| Hindustan Petroleum Corporation Ltd. | NSE | 336.65 | 339.73 | 333.63 | 342.82 | 330.62 | 345.83 | 327.53 |
| NSE Index | NSE | 4919.65 | 5020.45 | 4863.50 | 5121.25 | 4807.35 | 5177.40 | 4706.55 |
| Opto Circuits India Ltd. | NSE | 232.25 | 237.08 | 227.33 | 241.92 | 222.42 | 246.83 | 217.58 |
| Tata Tea Ltd. | NSE | 1101.05 | 1126.85 | 1084.40 | 1152.65 | 1067.75 | 1169.30 | 1041.95 |
| Titan Industries Ltd. | NSE | 2261.55 | 2289.45 | 2243.10 | 2317.35 | 2224.65 | 2335.80 | 2196.75 |
| Company Name | Exchange | LTP* | R1 #1 | S1 @1 | R2 #2 | S2 @2 | R3 #3 | S3 @3 |
|---|---|---|---|---|---|---|---|---|
| Aban Offshore Ltd. | NSE | 703.30 | 750.42 | 675.77 | 797.53 | 648.23 | 825.07 | 601.12 |
| Educomp Solutions Ltd. | NSE | 554.25 | 575.15 | 541.70 | 596.05 | 529.15 | 608.60 | 508.25 |
| Hind Rectifiers Ltd. | NSE | 56.25 | 57.75 | 55.45 | 59.25 | 54.65 | 60.05 | 53.15 |
| Hindustan Zinc Ltd. | NSE | 966.55 | 991.37 | 951.37 | 1016.18 | 936.18 | 1031.37 | 911.37 |
| Idea Cellular Ltd. | NSE | 52.55 | 55.62 | 50.77 | 58.68 | 48.98 | 60.47 | 45.92 |
| Mahanagar Telephone Nigam Ltd. | NSE | 56.20 | 58.73 | 54.43 | 61.27 | 52.67 | 63.03 | 50.13 |
| Moser Baer India Ltd. | NSE | 60.00 | 62.92 | 58.17 | 65.83 | 56.33 | 67.67 | 53.42 |
| NSE Index | NSE | 4919.65 | 5020.45 | 4863.50 | 5121.25 | 4807.35 | 5177.40 | 4706.55 |
| Punj Lloyd Ltd. | NSE | 135.25 | 140.52 | 131.47 | 145.78 | 127.68 | 149.57 | 122.42 |
| Reliance Natural Resources Ltd. | NSE | 46.45 | 48.43 | 44.28 | 50.42 | 42.12 | 52.58 | 40.13 |
| Sterlite Industries (India) Ltd. | NSE | 637.75 | 671.53 | 619.43 | 705.32 | 601.12 | 723.63 | 567.33 |
| Tata Steel Ltd. | NSE | 512.50 | 524.55 | 505.40 | 536.60 | 498.30 | 543.70 | 486.25 |
#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. |
 Corporate News Headline | |
| • | Larsen & Toubro has won a USD 46.76 mn deal to construct Oman's labour ministry building in the capital city of the Gulf Arab state, a tender board official said. (BS) |
| • | Steel Authority of India floated the idea of combining the resources of all the industry players to create a "war chest" for "big ticket" buyouts of mines abroad. (BS) |
| • | ONGC is in talks with five foreign firms, BP Plc, Exxon Mobil, BG Group, Eni and BHP Biliton, for a strategic tie-up for its Krishna-Godavari basin gas block. (BS) |
| |
| Economic and Political Headline | |
| • | India's imports surged by a never-seen-before USD 8 bn in April, indicating the rapid pace of domestic economic activity, even as the government downplayed the 36.2% jump in exports. Imports were up by a huge 43.3% to USD 27.3 bn in the first month of the current fiscal. Exports were up 36.2%, to USD 16.9 bn, in April, but the government said this was more due to low base effect than a healthy demand revival. Year-ago exports numbers was USD 12.4 bn. (BS) |
| • | The cost of living in the US unexpectedly dropped in April for the first time in more than a year. The 0.1% fall in the consumer price index was the first decrease since March 2009, figures from the Labor Department showed in Washington. Excluding food and fuel, the so-called core rate was unchanged. (Bloomberg) |
| • | A record share of US mortgages were in foreclosure in the first quarter as job losses caused homebuyers to fall behind on monthly payments, thwarting government efforts to stem property seizures. The inventory of homes in foreclosure rose to 4.63% from 4.58% in the fourth quarter, the Mortgage Bankers Association said in a report. (Bloomberg) |
INVESTMENT VIEW
South Indian Bank-Experience Next Generation Banking; EPS Rs 20, Div Rs 4
Chairman VJ Joseph-South Indian Bank Addressing Shareholders
South Indian Bank has again proved its overall stability and strength. We are again equipped with solid balance sheet ratios having pursued a generally prudent and cautious business policy ,once again confirming our enthusiasm to maintain steady and consistent growth. This performance reported by the Bank is encouraging and it demonstrates our continuing commitment to delivering sustainable results .I thank our valued clients and our colleagues most sincerely for their confidence and dedication.
We know that "a Trustee is an individual or corporation named by an individual, who sets aside property to be used for the benefit of another person, to manage the property as provided by the terms of the document that created the arrangement". So Banks as trustees have a sacred duty to manage the funds of the public placed with them .It is this conviction which has been guiding our beloved institution for the past 80 years .May I assure our esteemed clients that we will continue to prove worthy of the confidence reposed in our beloved organization ?
I am also glad to inform you that last week the Oscar Award Winner Mr. Resool Pookutty has launched our service for NRIs of the "New Pension System" recently started by Govt. of India which is being implemented by Pension Fund Regulatory & Development Authority (PFRDA).
The "New Pension System" is the ideal scheme for the NRIs to promote security of their income in their old age. NPS is open to NRIs who continue to hold Indian passport. The contribution should be in Indian rupee. This scheme will empower a subscriber – NRI or Resident – to plan his/her retirement and pension. It not only will help them save for life after retirement but also is a good investment tool.
The contributions for the scheme, which is open to anyone from 18 years to 55 years of age, can be made only till the 60 years and pension will start at the age of 60 years. I am also happy to inform you that our Bank is the largest service provider of NPS in India having more branches authorized by PFRDA than any other bank.
Our Bank has launched a novel Savings Bank account exclusively for women called, "SIB: MAHILA'.This packaged savings bank product is linked with recurring deposit with 'house-to-house' travel insurance (including insurance cover against chain snatching, inter alia) for Rs .0.50 lac and accident death insurance cover for Rs. 1.00 lac –the cost of premia for both being borne by the Bank for the first year and a host of ten technological products/services provided free of cost. This has been mainly designed for our NRIs who are concerned about their spouses.
Patrons, you would have noticed that the Reserve Bank of India, in its monetary policy, has decided to set provisioning for non-performing assets (NPA) at 70%. The RBI proposal means that banks will have to set aside a bigger slice of their earnings for a non-performing loan, even if the borrower may not eventually default.
Banks with lower NPA coverage ratios will find it difficult to achieve the target, if it becomes a rule, in the stipulated time of four quarters. Fortunately ,our bank has achieved, as on 30/09/2009 , 66.74 % provisioning coverage for non-performing assets (NPAs) against the new RBI requirement of 70% to be achieved by September 2010 .
Our Bank could contain fresh NPAs and recover Rs.169.15 crore against the Half-yearly Recovery Target of Rs.144.00 Crore, thereby already achieving 75 % of the Annual Recovery Target of Rs.225.00 Crore in September 2009 itself .The Bank could also reduce the Net NPA to 0.43 % as on 30/09/09 from 0.68 % as on 30/06/09.We are confident that we can maintain the hard-earned title of 'Best Bank in Asset Quality' in the private sector-which includes the new generation as well as the traditional Banks- at a time when banks are concerned over the creeping of NPAs into the balance sheets.
To achieve that objective, we always do remember:"we are only trustees(not owners) of the funds of the public placed with us and also that as trustees we have a sacred duty to manage the funds of the public placed with us".
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 19-May-2010 | 2403.76 | 3787.67 | -1383.91 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 19-May-2010 | 1794.64 | 1738.29 | 56.35 |
Increase in Open Interest of OPTIDX of expiry date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stock Recommendations
There is no reason to hold the stock as its performance has not been so good.
The stock has broken a major support at 89 and is staring at the next level of 70.
Bank of Rajasthan Ltd (Hold)
Rs. 119.40 19.90 (0.20%)
Date: 19 May, 2010
There has been a change in the outlook for the company after news of its merger with ICICI Bank. Target 150-155 levels.
The stock has broken some major resistance on the chart on the back of its merger with ICICI Bank. Target is 130.
The stock is showing weakness on the charts in the short term. It needs to sustain above 82 level for an upmove. Support is at 52-38 while resistance is at 82-95.
High debt continues to be a concern while revenue uncertainty is a drag on the stock. It is a speculative stock.
The stock is in a corrective mode. It has support at 505-475-440 which can be used as an opportunity to accumulate..
Metal prices expected to remain weak in short trem. Buy around Rs 450 - 490
The stock is showing sideways movement on the daily and weekly charts. The stock has support at 227-230 while resistance is at 268 - 295. The medium to long term target is 405.
The company has strong financials & product portfolio. It is the largest line pipe company in the world and has paid back $5 billion of high cost debt. Hold with a long term perspective.
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
Arvind Parekh
+ 91 98432 32381
