Daily Report August 1st Tuesday

Markets as a whole are great statistical laboratories for measuring mass emotions of fear and greed.
Nifty (3143) SUPPORT-3118-3084-3045 RESISTANCE-3175-3209-3277 Nifty tested 3179 on the higher side and lower side 3110 has formed like a triple bottom so range would be 3110-3180 and markets are very even. Only below 3110 there would be panic till 3084-3045 on the higher side breakout would target 3380 and upside also would be fast. Many in the markets are confused about direction and above 3210 close markets end of the corrective phase and fresh bull markets would be in place. TOP 5GAINERS=SUZLON-BHEL-HINDPETRO-PNB-TATATEA TOP5LOSER=HINDLEVER-VSNL-GAIL-SAIL-HCLTECH. P/E=17.57 p/b=4.27 adv=25 dec=25 NSE adv: 578 dec: 318 -vol-rs.5096crs

Sensex (10743) SUPPORT-10671-10552-10434 RESISTANCE-10846-10940-11050 Sensex has closed the down gap 10797 which is a positive sign and now chances of sensex testing double top 10940 is very bright. One should understand normal technical analyst would give buy above 11000 only as by that time index would be above all daily moving averages.
8dma=10481 13dma=10455 21dma=10557 34dma=10387 55dma=10366 OPEN=10759 HIGH=10853 LOW=10710 BSE adv: 1519 dec: 922 -vol-rs.2269crs
Fiis buyer rs.131crs and Mutual funds seller rs.79crs on Friday, Fiis buyer rs.1145crs in July month and buyer rs.12746Crs in 2006, mutual fund seller rs.40crs in July month. F&O DATA Fiis sell rs.75crs in nifty future and buy rs.90crs in stock future on 31st July and provisional Fiis buy in cash rs.185crs source NSE website

Day That Ended: Markets opened higher on a low volume day and it was CAPITALGOODS as a sector which gained and BANKS which supported the markets and at higher levels profit booking and no clear direction seem to weigh on investor mind. Results season comes to an end and U.S fed rate hike high Crude $74.48 and Geo-political tension in Middle-east are factors facing markets but a report says India has got highest Fiis inflow till Friday in Asia region for month of July and sensex Net profit growth is 25% in this quarter June2006. International markets U.S markets closed weak and EURO markets closed weak Indian ADRs mixed to weak ASIAN markets has opened mixed.
Outlook for Tuesday: AUTO sales numbers and CEMENT company dispatches would be the trigger for the markets as many have doubts about Indian growth sustaining going forward. HEROHONDA has cut on discount last month and they have raised prices so if they show a growth in sales that would be a big booster for the stock which carries rs.20 as dividend. CAPITAL GOODS BHEL-ABB-SIEMENS-LT is in limelight and BHEL has closed at a breakout level with higher volumes and on higher side 2280 also would be possible soon.
BHARAT FORGE: Investment buy target rs.420 and above in 12-15months, technically rs.323 is a major resistance above which rs.355 and rs.384 would be possible.

Counter view: Many investor fear markets and this fear is making them close there position intraday itself making them more of an intraday trader. Wat people fail to understand is markets are more brilliant than all investing public it never gives u a clear chance to make profits when all people have panic in mind markets open lower and u cant sell and when all are bullish markets opens higher and u cant buy. So how is money made in stock markets in my view would be contrarian investing which is simple to say and hard to follow. And here also there are few thumb rules when all want to sell if the stock doesn’t move down the buyer is brilliant so avoid selling. And whole markets are buying and the stock is not moving up then think the seller is brilliant. As majority can never be right in a market place and whenever there is buying frenzy top is almost reached and when ever there is selling frenzy bottom is near and when whole markets is confused jus stay away let them first have clarity as 15-20% of the time majority is also correct.

NEWS:
http://www.capitalmarket.com Orchid Chemicals & Pharmaceuticals had bought out the remaining 26% stake in US-based Bexel Pharmaceuticals for $ 3 million. Orchid already owned 74% of Bexel. Madhucon projects recorded a net profit of Rs 9.1 crore on a turnover of Rs 113.05 crore for the first quarter ended 30 June 2006, a growth of 163% over the net profit of Rs 3.46 crore and 85% in turnover of Rs 61.03 crore, respectively for the corresponding quarter of the previous fiscal. The company's order-book shows a healthy Rs 5,000-crore worth projects to be completed in the next three-four years. These cover national highways, roll roads, irrigation projects, flyover, residential-cum-commercial projects and railway projects. Aurobindo Pharma gleeful as USFDA clears anti-AIDS drug. Era Construction reported 498% jump in Q1 June 2006 net profit to Rs 12.56 crore (Rs 2.10 crore). Net sales jumped 130% to Rs 121.15 crore (Rs 52.60 crore).
http://www.businessstandard.com Hero Honda today announced an increase in prices of its motorcycles by Rs 500 to Rs 2000 across various models. Dishman to invest Rs700cr in pharma, engg SEZs.
http://www.financialexpress.com Textiles and chemicals firm GHCL Ltd. said on Monday it had acquired the UK-based home textile chain Roseby's for $50 million inclusive of all costs. GHCL said Roseby's had revenues of about $210 million. Infosys Technologies Ltd became the first company in India to open the NASDAQ Stock Market, and announced plans to invest Rs 700 crore in its Mysore training campus by June 2007 for expanding its training facilities. Ranbaxy CEO Malvinder Singh and his mother Nimmi Singh on Monday announced a settlement with Max Group chairman Analjit Singh on the family feud arising out of the will of family patriarch Bhai Mohan Singh who died on March 27 this year. The move caps years of litigation which had taken an ugly turn early this month.
http://www.thehindubusinessline.com Tata Consultancy Services has entered into an agreement with Sequenom, a US-based company, to develop software solutions for the latter. Reliance to sign MoU with Punjab for agri project. Man Industries India Ltd will de-merge its aluminium division of the company into a separate entity.
http://economictimes.indiatimes.com Radico Khaitan on Monday reported a 20 per cent increase in net profit at Rs 13.28 crore for the quarter ended June 30 as against Rs 11.06 crore in the corresponding quarter last fiscal. IVRCL Infrastructures and Projects Limited (IVRCL) on Monday posted an increase of 31.5 per cent in net profit after tax at Rs 21.7 crore for the quarter ended June 30, against Rs 16.5 crore for the same quarter in 2005-06. Shree Cement Limited has increased 348 per cent at Rs 90 crore in the first quarter of the current financial year, as compared to Rs 26 crore in the corresponding period.

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Disclaimer: trade in stock market is high risk& high return and I do not accept any financial and/or legal responsibility arising the use of the information this is no offer to buy/sell jus my views to share.