Market Outlook 3rd Nov 2010

Strong & Weak  futures 

This is list of 10 strong stocks: 

Dish TV, Tata Motors, Bharat Forge, Praj Ind, Cipla, Aurobindo Ph, TCS, Lupin, Hexaware & Petronet. 

And this is list of 10 Weak stocks: 

Hind Const, India Info, LIC Housing, Unitech, Jindal SWHL, Rel Infra, Ibrealest, SCI, Welcorp & Orbit Corp.

The daily trend of nifty is in Down trend 

Scripts to watch today : ACC, Bhartiatl, Biocon, Cairn, HCLTech, Hindalco, Infosys, KotakBank, L&T, ONGC, PNB, Rcom, Reliance, RelInfra, Sail, Sterlite, TataPower, TCS, Tisco, Wipro

• Supp / Resis SPOT/CASH LEVELS FOR INTRADAY

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	6033.93	6056.17	6082.83
		Support	5985.03	5958.37	5936.13
	Sensex	Resistance	20078.71	20164.72	20245.19
		Support	19912.23	19831.76	19745.75

Market Outlook
	Nifty continued to rally for the fourth day and regained the mark of 6,000. Momentum indicators start giving the trend reversal indications of the positive crossing and higher top and bottom formation.Bulls would now attempt for reaching 6065 levels(50 DMA) and sustaining above will lead to Nifty 6,100-6,140 level. Immediate resistance for Nifty is 6,065 level while support for Nifty comes at 5,980 level. On the derivatives front the Nifty December Futures prices inclined along with incline in open interest with positive cost of carry indicating long position is being initiated at current level. There was significant short accumulation was witnessed in OTM Put options. Most of the open interest accretion witnessed in the range of 5900 to 5700 Puts. We are observing addition in 5800 and 5900 Puts with OI over 7.44 million and 4.98 million, which indicating that covered Put writers are shifting their positions from 5700 to 5900 Put. On the other hand the Call buying was seen in 5900- 6200 Calls. Indian market is likely to open gap up tracking strong cues from global markets which rose on reports the European Central Bank had bought euro zone bonds and as data showed pending sales of existing U.S. homes unexpectedly surged in October. Thereafter Nifty is expected to remain range bound between 6,000 to 6,050 level.

Tip for the day
	TATAMTRDVR (BUY) RSI is at 58 neutral territory showing positive crossover indicating uptrend. Stochastic is hovering in overbought zone showing positive crossover suggesting upside. MACD is likely to show bullish crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 854.80 BUY 865/875/885 840 810/900 HANUNG TOYS (BUY) RSI is at 46 neutral territory showing positive crossover indicating uptrend. MACD is likely to show positive divergence. Stock next resistance level seems at 350 if its break then stock could rise up to 370 Stochastic is at 57 levels and it has given a buy crossover. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 332.50 BUY 336/342/350 325 310/350 GUJARAT FLUOROCHEMICALS (BUY) RSI is at 64 likely to show positive crossover. MACD is showing positive divergence. Stochastic is trading in neutral territory at 66 showing positive crossover Today stock has made new candlestick above 8 day EMA which is sign of uptrend. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 207.70 BUY 210/214/218 202 190/220 RAYMOND (BUY) RSI is at 57 showing positive crossover indicating uptrend. Stochastic is trading in neutral territory at 60 on the verge of showing positive crossover. The stock has rebounded after undergoing a deep correction and has breached its resistance at 377 levels with good volumes indicating that it will move upwards from here. CMP Buy/Sell Target Price Stop Loss Support/ Resistance 399.30 BUY 404/410/418 390 380/420

US markets
	US market rose as investors cheered a slew of positive economic data. Markets started the day on positive note as the release of upbeat November sales results from major retailers helped offsetting any negative sentiment generated by a bigger than expected increase in weekly jobless claims. Retailers rose after Bon-Ton reported that its November same-store sales rose by 2.9%, Target's same-store sales increased 5.5%, Costco Wholesale saw a same-store sales jump of 6% and Abercrombie & Fitch Co. reported that its same-store sales surged up by 22%. Further boost came after payroll processor ADP said private sector employment increased by 93,000 jobs in November while market expected employment to increase by 58,000 jobs. However, market shrugged off labour department report that showed Jobless claims rose to 4,36,000 from the previous week's revised figure of 4,10,000.

European markets
	European markets rose following some encouraging data from China and US. Early surge came from mining stocks which rose after better economic growth prospect improved demand outlook. Later, markets held on to its gain after European Central Bank President Jean-Claude Trichet said the central bank would continue to provide special liquidity measures to commercial banks through the first quarter of 2011 to combat "acute" market tensions. He also added that ECB began buying bonds on open markets in May to halt a run on Greek debt. Purchases slowed after July but they have recently flared up again. In some important economic data, Eurozone GDP rose 0.4% sequentially in the third quarter following a 1% growth in the second quarter. A separate report showed that UK construction activity rose to 51.8 in November from 51.6 in October.

Indian markets (Prev Day)
	The domestic bourses ended on a cheerful note, though the movements remained rather slow. The market started off the session on a robust note, carrying forward the previous session's upmove, on the back of strength in the global front. The Asian bourses gained the most in almost two weeks, after U.S. economic reports and speculation that Europe's debt crisis will be contained, boosting confidence in a global recovery. The Japanese stocks were trading higher as strong overseas gains triggered by improved economic gauges released in the U.S. and Europe. Soon after the positive start the market entered into a tight range and continued to trade within the 5,980 to 6,030 range on Nifty. Though the morning gains were maintained but no significant movement happened on either side. Finally the market managed to close above the 6,000 mark on Nifty after trading sideways throughout the session. In the sectorial front, the Realty space remained in limelight during today's trade and gained the most by 2.23%. Further, the Metal, IT and Oil&Gas also contributed to the market gains, surging by 1.48%, 1.47% and 1.47% respectively. Both the Nifty and Sensex managed to hold on their morning gains throughout the session and finally closed near their respective session highs. The NSE Nifty closed above the 6,000 mark, while the BSE Sensex closed near the 20,000 level.

Index Latest 1 D Chg(%) YTD(%) NSE Index (02 Dec 2010) 6011.70 0.85 15.59 Sensex (02 Dec 2010) 19992.70 0.72 14.47 Dow Jones Ind. .. (02 Dec 2010) 11362.41 0.95 8.96 Nasdaq Composit.. (02 Dec 2010) 2579.35 1.17 13.67 Hang Seng (02 Dec 2010) 23448.78 0.86 7.21 Straits Times (02 Dec 2010) 3197.96 0.50 10.37 FTSE 100 (02 Dec 2010) 5767.56 2.22 6.55 CAC 40 (02 Dec 2010) 3747.04 2.12 -4.81 Sectors Close 1D Chg(%) BSE IT 6190.22 1.45 BSEPSU 9643.67 0.59 OILGAS 10360.48 1.44 Advance Decline Ratio Value(in Cr.) Index 1.31 1119.97 SENSEX 1.94 8206.15 NIFTY

SENSEX    NIFTY Top Gainers Close 1D Gain(%) YTD(%) Reliance Communications Ltd. 141.80 3.32 -17.99 Sterlite Industries (India) Lt... 169.70 3.13 -21.22 Wipro Ltd. 425.20 2.57 4.31 Top Gainers Close 1D Gain(%) YTD(%) Sterlite Industries (India) Lt... 169.80 3.41 -21.35 Reliance Communications Ltd. 141.75 3.28 -17.75 Wipro Ltd. 426.05 2.74 4.42 Top Losers Close 1D Loss(%) YTD(%) Bharti Airtel Ltd. 346.35 -1.42 5.34 Jaiprakash Associates Ltd. 112.40 -1.06 -23.49 Hero Honda Motors Ltd. 1788.25 -7.27 4.18 Top Losers Close 1D Loss(%) YTD(%) Hero Honda Motors Ltd. 1781.20 -7.49 3.70 NTPC Ltd. 182.90 -1.85 -22.38 Bharat Petroleum Corporation L... 685.80 -1.74 7.91

Top

Most Active Stocks by value (in Cr) BSE Close %Chg Value(in Cr.) Volume SBI 3105.10 -0.24 219.02 702628 Tata Motors 1288.15 2.50 131.91 1006446 Tata Steel 613.65 1.39 77.16 1239301 RIL 990.10 1.96 72.70 723874 ICICI Bank 1166.95 1.99 64.56 542322   NSE Close %Chg Value(in Cr.) Volume Tata Motors 1286.75 2.60 749.69 5731817 SBI 3100.15 -0.03 627.77 2012797 RIL 988.80 2.26 569.86 5676667 ICICI Bank 1167.45 2.03 474.75 3987877 Power Grid 96.85 2.22 385.11 39257476   Strike Price Value Price %Chg    Most Active Calls by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 6000.00 636446.69 121.35 -17.26 NIFTY ( 30 Dec 2010 ) 6100.00 607557.58 70.55 -19.77    Most Active Puts by Contract Value (in Cr) NIFTY ( 30 Dec 2010 ) 5900.00 611512.48 62.90 31.80 NIFTY ( 30 Dec 2010 ) 6000.00 575237.51 95.85 27.60    Most Active Future by Contracts Value (in Cr) TATAMOTORS ( 30 Dec 2010 ) - 126040.58 1315.85 -2.05 SBIN ( 30 Dec 2010 ) - 101008.90 3114.05 -0.21     Commodities     Crude oil prices ended higher as weaker dollarprompted investors to buy riskier assets such as oil and other commodities. Gold closed flat as safe haven buying faded after European lenders offered a liquidity safety net for vulnerable banks and as US data showed signs of an improving economy.         International News     Brazil's industrial output growth accelerated in October, but the upturn was weaker than forecast. Production in total industry rose 0.4% month-on-month in October. The rate of growth was faster than the 0.1% in September. (RTT News) The European Central Bank will continue to conduct its main refinancing operations until April next year. After the central bank retained its key interest rate at a record low of 1% for the nineteenth straight month, ECB President Jean-Claude Trichet announced it will retain exceptional liquidity measures to support commercial banks. (RTT News) Bombardier Inc reported a 15% drop in third-quarter profit on weak revenue at both its segments and said the environment in the aerospace segment remained difficult. For the August-October quarter, Bombardier reported net income of USD 143 million. In the year-ago period, it had net income of USD 168 million. (Economic Times)         Domestic News     State Bank of India (SBI) has offered an in-principle sanction to loan Rs 2,000 crore to Shipping Corporation of India (SCI) for acquiring nine vessels, for which the shipping major had hit the capital market with an FPO for the equity portion. (Economic Times) Fortis Healthcare has taken over operations and management of the 100 bed O.P. Jindal Hospital in Raigarh, Chhattisgarh in an effort to provide superior healthcare services in the region. This move is in line with Fortis' strategy to strengthen its presence in India's tier II cities. (IIFL) Encouraged by better than expected economic expansion of 8.9% during the July-September quarter, the government is likely to revise upwards its earlier GDP projection of 8.5% for the entire fiscal. This may be mentioned in the mid-year review of the economy, which is to be placed in Parliament on December 7. (Economic Times)     Currency Exchange-Rate 1D Chg(%) 1M Chg(%) EUR 59.52 -0.02 % -1.39 % GBP 70.88 -0.44 % -1.02 % USD 45.37 -0.72 % -1.46 % FIIs Activity Rs. Cr. MTD YTD Equity in flows 4715.80 10096.40 711453.20 Equity Out flows 4269.40 8459.30 578600.20 Net 446.40 1637.10 132853.10