Market Outlook 19th Aug 2010

Corporate News Headline
•	SAIL will enter into a pact next month with RITES for jointly setting up a railway wagon making unit in Kulti, in West Bengal. The proposed JV unit will have an annual production capacity of 1,200 railway wagons. The project is estimated to cost Rs. 1-2 bn. (BS)
•	Ashok leyland has entered into an agreement with IndusInd Bank for financing its dealers. "The dealers of Ashok Leyland will now have access to ready upstream finance from IndusInd Bank to meet their working capital requirements in addition to the existing retail finance arrangements," the company said. (BS)
•	Bank of Baroda has signed a memorandum of cooperation with the Dubai Multi Commodities Centre Authority, a free zone authority dedicated to enhancing trade flows through Dubai. (BS)
Economic and Political Headline
•	The government said that combined investments by private players and through PPP stood at Rs. 20.8 mn till June end this year under the 11th Five Year Plan. (BS)
•	The number of mortgage applications in the US increased last week, propelled by a surge in refinancing as borrowing costs hovered near record lows. The Mortgage Bankers Association's index rose 13% in the week ended Aug. 13, the Washington-based group said. Refinancing jumped 17% to reach the highest level since May 2009, while purchases fell 3.4%. (Bloomberg)
•	European construction output rose the most in three months in June, led by a rebound in Spain. Construction in the 16-nation euro region increased 2.7% from May, when it fell 0.7%, the European Union's statistics office in Luxembourg said. From a year earlier, June output rose 3.1% after falling 6.2% in the previous month. (Bloomberg)

Strong & Weak Stocks

This is list of 10 strong stocks: 

UCO Bank, Vijaya Bank, Tata Motors, Tata Chem, Tata Comm, Andhra Bank, Syndicate Bank, Cummins India, Bank of Baroda & Dena Bank. 

And this is list of 10 Weak Stocks: 

Suzlon, RNRL, Sesa Goa, Aban Off shore, Punj Lloyd, RCOM, Rel Infra, R Power, Cipla & ICSA.

The daily trend of nifty is in Uptrend 

• Supp / Resis SPOT/ CASH LEVELS FOR INTRADAY TRADING

Indices		Supp/Resis	1	2	3
	Nifty	Resistance	5505.98	5532.82	5577.68
		Support	5434.28	5389.42	5362.58
	Sensex	Resistance	18339.52	18421.93	18557.85
		Support	18121.19	17985.27	17902.86

Buy COREPROJECT

Daily Chart not looking good & Trend should be choppy. Buy for 1 Month. SL at 249.25.
Target at 294.15.

Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-18-Aug-2010.htm
Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-19Aug2010.htm

SUPPORT/ RESISTANCE LEVELS FOR INTRADAY TRADING IN CASH MARKET

Company Name  Exchange LTP* R1 #1 S1 @1 R2 #2 S2 @2 R3 #3 S3 @3 Aban Offshore Ltd. NSE 779.60 800.32 765.97 821.03 752.33 834.67 731.62 Andhra Bank NSE 165.10 168.40 160.20 171.70 155.30 176.60 152.00 Bank of Baroda NSE 841.90 850.17 830.97 858.43 820.03 869.37 811.77 Bank of India NSE 461.60 469.17 454.67 476.73 447.73 483.67 440.17 Bank of Rajasthan Ltd. NSE 203.30 205.63 200.23 207.97 197.17 211.03 194.83 Cummins India Ltd. NSE 714.10 724.37 707.47 734.63 700.83 741.27 690.57 Dena Bank NSE 111.20 114.02 106.82 116.83 102.43 121.22 99.62 NSE Index NSE 5479.15 5505.98 5434.28 5532.82 5389.42 5577.68 5362.58 Punj Lloyd Ltd. NSE 115.45 116.33 114.33 117.22 113.22 118.33 112.33 Punjab National Bank NSE 1183.40 1196.37 1171.07 1209.33 1158.73 1221.67 1145.77 Reliance Capital Ltd. NSE 752.80 757.97 746.57 763.13 740.33 769.37 735.17 Reliance Communications Ltd. NSE 164.35 166.53 162.43 168.72 160.52 170.63 158.33 Reliance Industries Ltd. NSE 964.60 974.95 956.30 985.30 948.00 993.60 937.65 Reliance Infrastructure Ltd. NSE 1041.30 1063.38 1020.73 1085.47 1000.17 1106.03 978.08 Reliance Natural Resources Ltd. NSE 37.05 37.82 36.57 38.58 36.08 39.07 35.32 Reliance Power Ltd. NSE 152.05 154.03 148.83 156.02 145.62 159.23 143.63 Sesa Goa Ltd. NSE 321.85 325.77 316.62 329.68 311.38 334.92 307.47 Suzlon Energy Ltd. NSE 49.50 51.25 48.30 53.00 47.10 54.20 45.35 Syndicate Bank NSE 119.95 122.90 117.10 125.85 114.25 128.70 111.30 Tata Chemicals Ltd. NSE 401.65 407.45 392.90 413.25 384.15 422.00 378.35 Tata Coffee Ltd. NSE 487.15 498.93 478.33 510.72 469.52 519.53 457.73 Tata Communications Ltd. NSE 336.60 341.45 331.70 346.30 326.80 351.20 321.95 Tata Consultancy Services Ltd. NSE 871.10 881.27 855.47 891.43 839.83 907.07 829.67 Tata Motors Ltd. NSE 1048.30 1066.87 1021.37 1085.43 994.43 1112.37 975.87 Tata Power Company Ltd. NSE 1313.95 1322.23 1303.43 1330.52 1292.92 1341.03 1284.63 Tata Steel Ltd. NSE 521.85 525.08 516.48 528.32 511.12 533.68 507.88 Tata Teleservices (Maharashtra) Ltd. NSE 24.60 24.98 24.18 25.37 23.77 25.78 23.38 UCO Bank NSE 112.90 115.55 109.95 118.20 107.00 121.15 104.35 Vijaya Bank NSE 85.15 87.73 82.68 90.32 80.22 92.78 77.63

*LTP stands for Last Traded Price as on Wednesday, August 18, 2010 4:04:21 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.

US and European markets

Index Latest 1D Chg YTD Nasdaq 1850.80 0.29% (0.51)% DJIA 10415.54 0.09% (0.12)% S&P 500 1094.16 0.15% (1.88)% • US stocks rose, as takeover speculation swirling around homebuilders and commodity producers overshadowed an energy-company slump as oil prices dropped. The NASDAQ, Dow Jones and S&P 500 added 0.29% and 0.09% and 0.15%, respectively. Ryland Group Inc. and Meritage Homes Corp. surged at least 3.8% as Citigroup Inc. predicted more mergers in the home-building industry, while Potash Corp. extended yesterday's gain on speculation BHP Billiton Ltd. will boost its bid for the company. US Steel Corp. jumped 4.8% on a report ArcelorMittal may be looking to buy the company. Index Latest 1D Chg YTD FTSE 100 5302.87 (0.89)% (2.03)% CAC 40 3647.93 (0.41)% (7.33)% • UK stocks fell for the first time in five days as BHP Billiton Ltd. led mining shares lower after making a hostile USD 40 bn bid for Potash Corp. of Saskatchewan Inc. The FTSE 100 slipped 47.68 points or 0.89% at 5,302.87. The world's largest mining company lost 3.4% as it made a USD 130-a-share cash takeover offer for the world's biggest potash producer. Vedanta Resources Plc and Eurasian Natural Resources Corp. both retreated as base metals fluctuated in London. Intertek Group Plc and Inmarsat Plc each gained more than 4%.

Buy / Sell (Aug 18, 2010)
	Buy					Sell	Net
FII	3118.91					2444.39	+ 674.52
DII	1579.43					1692.94	- 113.51

*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