Daily Report August 18th Friday

Nifty (3353) SUPPORT-3333-3310-3281 RESISTANCE-3382-3405-3437 Nifty range 3333-3405 there seem to be a strong support at 3333-3310 levels and we will see a major upside if markets stays above 3340 levels and from here RELIANCE will lead the rally. Stop loss for nifty stands at 3310 intraday basis and 3325 on closing basis very tight one now. http://prabhakar-views.blogspot.com/2006/08/reliance.html RELIANCE GRAPH TOP 5GAINERS=SIEMENS-IPCL-TATAMOTORS-DRREDDY-TATAPOWER TOP5LOSER=REL-TATASTEEL-HINDALCO-ONGC-HINDPETRO. P/E=18.83 p/b=4.54 adv=29 dec=21 NSE adv:268 dec:656 -vol-rs.7153crs

Sensex (11477) SUPPORT-11390-11312-11205 RESISTANCE-11564-11678-11749 Sensex is looking strong as the gap was not able to close and the bounce back was strong so now if sensex closes above 11600 it would test 12100 soon but now with failing crude and drop in metal prices the sector would change. AUTO-CAPITALGOODS-MANMADETEXTILES-OILMARKETING&REFINERY would do well.
8dma=11194 13dma=11054 21dma=11801 34dma=10743 55dma=10419 OPEN=11498 HIGH=11551 LOW=11379 BSE adv: 875 dec: 1614 -vol-rs.3849crs
Fiis buyer rs.952crs and Mutual funds buyer rs.27crs on Wednesday, Fiis buyer rs.2449crs in August month and buyer rs.15196Crs in 2006, mutual fund buyer rs.333crs in August month. F&O DATA Fiis sell rs.389crs in nifty future and buy rs.42crs in stock future on 17th August and provisional Fiis buy in cash rs.442crs source NSE website

Day That Ended: Markets opened positive and profit booking at higher levels dragged index into negative and this was a divided market as price cut in steel from china affected sentiment in Indian metal stocks, Crude $70.63 was double benefit to AUTO stock and OIL-CG-MANMADETEX would also benefit. Markets volumes in cash segment are improving and FIIs are investing heavily into market and investors prefer profit booking at every rise. International markets U.S markets closed tad positive while Indian ADRs mostly in red EURO markets closed positive ASIAN markets has opened on a positive note.
Outlook for Friday: Crude falling would be very good news for Indian growth as that was a big worry factor and Indian business confidence was dented by that, RELIANCE would be major beneficiary as there retail outlet had a price higher than PSUOIL companies BPCL-HPCL-IOC would benefit double bonanza as oil bonds has got parliament approval too and failing crude would make them attractive. CENTURYENKA-INDORAMASYS-POLYPLEX-IPCL to name a few would major gainer if crude can reach a level of $60 so jus have a close watch.

Counter view: CRUDE can crash $62 in my view we would see technical reason demand & supply reason for crude crash. TECHINCAL REASON crude has formed a island reversal $76 around levels which is a bearish sign and next support for crude comes at $68&$62 and any island reversal would give a 20% downside or a upside so the price $62 would be possible soon. DEMAND &SUPPLY reason Middle East seem to return to peace and there was a statement from IRAN FM that they would wish to settle the nuclear issue, high crude prices normally pushes down the demand and with no major natural calamity like hurricane & cold winter things looks good for a fall, there was one interesting report which surprised by saying India consumed 3.5 % less crude than last year so which goes to prove alternate energy source, fuel efficient automobiles, electrification of many rail route and use of CNG can be reasons and with many biofuels used and many new well dug things can change in near future there is a possibility of crude touching $45-50 in 12-15months time . BENEFIT India as a nation would gain immensely any fall would add to balance of payment as imports of crude is the single biggest component and many more factors are there.

NEWS:
http://www.capitalmarket.com Neyveli Lignite Corporation and Government of Gujarat have entered into a memorandum of understanding (MoU) for establishing an integrated lignite mine of 8 million tonnes per annum linked to a power project of 1,000 mega watt in South Gujarat in the first phase, which will be enhanced later to 1,500 mega watt in the second phase with linked mine capacity of 12 million tonnes per annum. The entire project will cost Rs 7,500 crore and will be implemented in a period of 5 years from the day of signing the memorandum. Asian Electronics will invest up to Rs 100 crore for buying at least 50% stake in the US-based Westinghouse Lighting Corporation. This partnership will give the company access to the Westinghouse brand and its network in the US. Shree Precoated Steels has decided to raise Rs 1,163 crore through allotment of FCCBs or securities in any other form to fund expansion plans. Savita Chemicals’ board will meet on 21 August 2006 to consider the issue of bonus shares by capitalisation of permitted reserves.

http://www.businessstandard.com OVL Mittal Energy Ltd may invest between $1.5 billion and $2 billion in the development of two off-shore deep-water blocks that it had bagged in Nigeria this May. Punj Lloyd has won an order worth Rs 823 crore from Rajasthan Vidyut Utapadan Nigam, Jaipur on EPC basis. The contract is for building the 2x250 MW Chabbra Thermal Power Station, Rajasthan on a fast track basis. Bharati Shipyard has bagged a contract from Reliance Industries for the construction of six vessels, including one diving support vessel, for its offshore terminal at Jamnagar. Rolta India and Thales, France today announced the signing of an agreement to establish a joint venture in India.

http://www.financialexpress.com Videocon Industries Ltd. and four others have submitted final bids to buy South Korean home appliance and television maker Daewoo Electronics, a source close to the deal said on Thursday. The sugar industry’s talks with the petroleum ministry over ethanol blending are still deadlocked over pricing, but a deal is expected over the next couple of weeks as international prices firm up.
http://www.thehindubusinessline.com Havell's plans acquisition in China to enhance global reach. Hinduja TMT completes Hutch-Essar stake sale. Micro Technologies India Ltd has announced that it has entered into a tie-up with Active Solutions Pvt Ltd, Nepal for launching its security products.
http://economictimes.indiatimes.com Tata Motors, India’s largest commercial vehicle maker, is learnt to be working on an initial public offering (IPO) for two of its group companies -HV Axles and HV Transmissions - as part of a larger corporate restructuring programme and to also tap alternate options of raising resources to part-finance expansion plans. Pharma major Lupin proposes to set up a sector-specific Special Economic Zone (SEZ) in Maharashtra to produce API and formulations with an initial investment of Rs 200 crore.

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http://timesofindia.indiatimes.com/articleshow/1896263.cms In a world of guzzlers, India is fuel saver