Market Outlook 3rd June 2010

Strong & Weak Stocks

This is list of 10 strong stocks

DCB, Federal Bank, Dr Reddy, UCO Bank, Hind Petro, Tulip, ONGC, Vijaya Bank, TV-18 & ABB. 

And this is list of 10 Weak Stocks

Grasim, Aban Off shore, Punj Lloyd, MTNL, Bhushan Steel, Mphasis, Idea, Suzlon, Tata Steel & MLL.

The daily trend of nifty is in downtrend 

Corporate News Headline
•	Reliance Industries could invest in coal-based power plants due to the surging demand for electricity in the fast-growing country. Reliance will concentrate on offshore investments for its oil and gas and petrochemical businesses and the company's major focus on the domestic market will be coal-based power. (ET)
•	ARSS Infrastructure Projects said that the company received a new work order for Rs. 509 mn from Rayagada (R&B) Division, Rayagada, Odisha. (BS)
•	GVK Power & Infrastructure said its subsidiary bagged a Rs. 8.50 bn contract for building a highway in Rajasthan. (BS)
Economic and Political Headline
•	India's food processing sector, which was growing at about 6% four years ago, is now expanding at nearly 15% annually, Union Minister Subodh Kant Sahay said. The country processes about 10% of the total food produced and by 2015 it is expected to rise to 20%, the Minister of State for Food Processing said. (BS)
•	European producer-price inflation accelerated to the fastest pace in more than a year in April as a weaker euro made imports more expensive and energy costs rose. Factory-gate prices in the euro region rose 2.8% from a year earlier after increasing 0.9% in March, the European Union's statistics office in Luxembourg said. (Bloomberg)
•	UK mortgage approvals rose to a four-month high in April as warmer weather and the ending of a transaction tax on house purchases for some first-time buyers helped boost demand. Lenders granted 49,871 loans to buy homes, compared with 49,008 in March, the Bank of England said in London. (Bloomberg)

SPOT / CASH INDEX LEVELS

	5019.85	( 1.00 %)	49.65
		1	2	3
Resistance		5045.02	5070.18	5109.17
Support		4980.87	4941.88	4916.72

	16741.84		( 1.02 %)	169.81
			1	2	3
Resistance			16820.18	16898.51	17022.88
Support			16617.48	16493.11	16414.78

SUPPORT/ RESISTANCE IN CASH MARKET

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 Aban Offshore Ltd. NSE 694.90 703.33 684.48 711.77 674.07 722.18 665.63 ABB Ltd. NSE 854.45 862.15 846.05 869.85 837.65 878.25 829.95 Bhushan Steel Ltd. NSE 1299.75 1330.85 1272.85 1361.95 1245.95 1388.85 1214.85 Federal Bank Ltd. NSE 334.75 339.45 328.10 344.15 321.45 350.80 316.75 Grasim Industries Ltd. NSE 1776.50 1805.87 1758.27 1835.23 1740.03 1853.47 1710.67 Hindalco Industries Ltd. NSE 142.70 145.47 139.77 148.23 136.83 151.17 134.07 Hindustan Petroleum Corporation Ltd. NSE 365.30 367.87 362.87 370.43 360.43 372.87 357.87 Hindustan Unilever Ltd. NSE 237.75 240.37 233.77 242.98 229.78 246.97 227.17 Hindustan Zinc Ltd. NSE 936.35 953.60 919.60 970.85 902.85 987.60 885.60 Idea Cellular Ltd. NSE 53.45 55.25 50.35 57.05 47.25 60.15 45.45 Mahanagar Telephone Nigam Ltd. NSE 55.10 56.15 53.90 57.20 52.70 58.40 51.65 Mahindra & Mahindra Ltd. NSE 574.55 580.90 566.10 587.25 557.65 595.70 551.30 Mercator Lines Ltd. NSE 45.85 46.37 45.12 46.88 44.38 47.62 43.87 MphasiS Ltd. NSE 561.75 571.30 547.70 580.85 533.65 594.90 524.10 NSE Index NSE 5019.85 5045.02 4980.87 5070.18 4941.88 5109.17 4916.72 Punj Lloyd Ltd. NSE 115.50 119.30 112.90 123.10 110.30 125.70 106.50 Punjab National Bank NSE 989.65 998.10 983.10 1006.55 976.55 1013.10 968.10 Suzlon Energy Ltd. NSE 54.20 55.98 52.93 57.77 51.67 59.03 49.88 Tata Motors Ltd. NSE 746.15 755.30 731.55 764.45 716.95 779.05 707.80 Tata Steel Ltd. NSE 484.30 488.67 478.17 493.03 472.03 499.17 467.67 Tata Tea Ltd. NSE 1068.85 1083.83 1059.03 1098.82 1049.22 1108.63 1034.23 UCO Bank NSE 79.05 80.17 77.22 81.28 75.38 83.12 74.27 Vijaya Bank NSE 60.70 61.70 59.00 62.70 57.30 64.40 56.30

*LTP stands for Last Traded Price as on Wednesday, June 02, 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.

today market update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-03Jun2010.htm

Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-02-Jun-2010.htm

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	02-Jun-2010	2220.86	2387.36	-166.5

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	02-Jun-2010	1331.64	1166.48	165.16

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