Market Outlook 7th July 2010

Strong & Weak Stocks 

This is list of 10 strong stocks: 

Hind Petro, BPCL, Orchid Chem, Nagarjuna Const, Bharat Forg, Aban Off shore, IOB, TV-18, Polaris & Concor.  

And this is list of 10 Weak Stocks: 

RNRL, Sterling Biotech, Uniphos, Patni, India Cement, India Info, Grasim, Hind Zinc, HCL Tech & Hindalco.

The daily trend of nifty is in Uptrend 

• Supp / Resis SPOT / CASH LEVELS

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	5313.83	5338.62	5379.78
		Support	5247.88	5206.72	5181.93
	Sensex	Resistance	17706.55	17798.63	17954.11
		Support	17458.99	17303.51	17211.43

SUPPORT/RESISTANCE LEVELS IN CASH MARKET

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 Aban Offshore Ltd. NSE 828.90 841.72 806.77 854.53 784.63 876.67 771.82 Bank of Baroda NSE 714.65 718.72 711.87 722.78 709.08 725.57 705.02 Bank of India NSE 373.90 380.12 365.27 386.33 356.63 394.97 350.42 Banking Index Benchmark Exchange Traded Scheme (Bank BeES) NSE 965.52 974.60 949.85 983.67 934.17 999.35 925.10 Bharat Electronics Ltd. NSE 1790.25 1810.13 1760.18 1830.02 1730.12 1860.08 1710.23 Bharat Petroleum Corporation Ltd. NSE 663.55 671.33 653.43 679.12 643.32 689.23 635.53 Bharti Airtel Ltd. NSE 271.55 273.57 268.27 275.58 264.98 278.87 262.97 Grasim Industries Ltd. NSE 1819.65 1835.67 1807.87 1851.68 1796.08 1863.47 1780.07 HCL Technologies Ltd. NSE 360.00 362.78 355.43 365.57 350.87 370.13 348.08 Hindalco Industries Ltd. NSE 143.85 145.40 141.90 146.95 139.95 148.90 138.40 Hindustan Oil Exploration Company Ltd. NSE 238.25 244.60 227.00 250.95 215.75 262.20 209.40 Hindustan Unilever Ltd. NSE 267.35 268.57 265.82 269.78 264.28 271.32 263.07 Hindustan Zinc Ltd. NSE 950.00 962.82 940.37 975.63 930.73 985.27 917.92 India Cements Ltd. NSE 107.10 107.65 106.30 108.20 105.50 109.00 104.95 India Infoline Ltd. NSE 93.35 94.35 92.50 95.35 91.65 96.20 90.65 Indian Bank NSE 226.00 227.97 223.77 229.93 221.53 232.17 219.57 Indian Hotels Company Ltd. NSE 104.50 105.38 103.58 106.27 102.67 107.18 101.78 Indian Oil Corporation Ltd. NSE 394.50 399.92 391.07 405.33 387.63 408.77 382.22 Nagarjuna Construction Co. Ltd. NSE 184.80 186.47 183.62 188.13 182.43 189.32 180.77 NSE Index NSE 5289.05 5313.83 5247.88 5338.62 5206.72 5379.78 5181.93 Orchid Chemicals & Pharmaceuticals Ltd. NSE 175.00 176.10 173.45 177.20 171.90 178.75 170.80 Patni Computer Systems Ltd. NSE 515.80 522.22 510.97 528.63 506.13 533.47 499.72 Polaris Software Lab Ltd. NSE 192.65 195.47 187.92 198.28 183.18 203.02 180.37 Reliance Capital Ltd. NSE 751.80 756.63 746.33 761.47 740.87 766.93 736.03 Reliance Communications Ltd. NSE 182.35 185.13 180.28 187.92 178.22 189.98 175.43 Reliance Industries Ltd. NSE 1073.90 1082.03 1065.63 1090.17 1057.37 1098.43 1049.23 Reliance Natural Resources Ltd. NSE 45.75 46.67 45.07 47.58 44.38 48.27 43.47 Sterling Biotech Ltd. NSE 106.70 107.53 106.18 108.37 105.67 108.88 104.83 Uniphos Enterprises Ltd. NSE 34.95 35.62 33.92 36.28 32.88 37.32 32.22

*LTP stands for Last Traded Price as on Tuesday, July 06, 2010 4:04:15 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.

Corporate News Headline
•	Tata Motors will invest about Rs. 100 bn in the next 2-3 years on product development, modernization of its facilities and other capex purposes. (BS)
•	NTPC Ltd had signed production sharing contracts with the government for exploration blocks awarded in the eighth oil and gas blocks auction round held in 2009. (BS)
•	Power Grid Corp of India its board approved investment of Rs. 20.34 bn in three different projects. The projects include eastern region strengthening scheme-III, northern region system strengthening scheme-XVI and installation of a bus reactor. (BS)
Economic and Political Headline
•	The collection of direct taxes during the Q1'11 increased by over 15% to Rs. 686.75 bn, indicating higher corporate earnings. Corporate tax collection soared 21.65% to Rs. 434.39 bn and thus contributing to the maximum during the reporting period. (BS)
•	Service industries in the US expanded in June at a slower pace than forecast, indicating the economy was beginning to cool entering the second half. The Institute for Supply Management's index of non- manufacturing businesses, which covers about 90% of the economy, fell to a four-month low of 53.8 from 55.4 in May. (Bloomberg)
•	The European Union said the UK has taken effective action toward cutting the country's record budget deficit after Chancellor of the Exchequer George Osborne resigned. "The current economic circumstances call for a decisive fiscal consolidation, while not suffocating the nascent economic recovery," EU Economic and Monetary Affairs Commissioner Olli Rehn said in a statement. (Bloomberg)

Buy / Sell (Jul 06, 2010)
	Buy					Sell	Net
FII	1919.42					1577.07	+342.35
DII	934.75					1018.96	-84.21

*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