Daily Report August 21st Monday

Nifty (3356) SUPPORT-3335-3319-3281 RESISTANCE-3382-3411-3449 Nifty range 3348-3411 markets has consolidated at this level and it needs to move up and next target would be 3540-3620 and stop loss would be 3319 on a closing basis. If Nifty is not able to move up beyond 3385 within next two days we would see a correction till 3210-3188 but for now have a bullish view. TOP 5GAINERS=BPCL-HINDPETRO-GLAXO-CIPLA-MARUTI TOP5LOSER=HCLTECH-HINDALCO-ORIENTBANK-SUZLON-MTNL. P/E=18.84 p/b=4.54 adv=27 dec=22 NSE adv: 469 dec: 437 -vol-rs.6440crs

Sensex (11465) SUPPORT-11379-11305-11221 RESISTANCE-11551-11640-11710 Sensex traded flat for the past 3days and gap is acting as a strong support and now we need a close above 11580 levels to see 12050-12200 levels in 2weeks. Support on downside would come near 11191-11221 levels and one should worry only if we breach that level and close till then have a bullish view.
8dma=11275 13dma=11110 21dma=11870 34dma=10768 55dma=10438 OPEN=11498 HIGH=11508 LOW=11409 BSE adv: 1265 dec: 1236 -vol-rs.3229crs
Fiis buyer rs.808crs and Mutual funds seller rs.23crs on Thursday, Fiis buyer rs.3258crs in August month and buyer rs.16005Crs in 2006, mutual fund buyer rs.309crs in August month. F&O DATA Fiis sell rs.55crs in nifty future and sell rs.11crs in stock future on 18th August and provisional Fiis buy in cash rs.87crs source NSE website

Day That Ended: Weekend sentiment has prevailed with flat markets drop in volumes and an advance decline ratio which was almost equal, OIL marketing companies & HC-health care gaining while METALS-BANKS noticeable loser. International market U.S markets ended positive EURO markets mixed with no major movement Crude $71.14 Indian ADRs mixed. With many news pointing to Indian pharma as a future hub and the drug policy pricing in place that would be one sector which can show some major upside.
Outlook for Monday: Bullish on few stocks which can surprise even if the markets moves downside BEML-MICROTECH-PUNTRACTOR-NELCO-WOCKHARD-BIOCON-RANBAXY-RELIANCE. To make money in stock markets one should know the downside risk and upside potential of the stock when u know the downside is limited taking a buy call would give the maximum returns but this involves many calculation to know if we have bottomed out and a person who has spread his risk in more than 20 stock only can earn a safe decent returns.

STOCK TECH view: MICROTECH: buy near rs.270-280 stops at rs.258 target rs.315-325 stock shows sign of bottoming out and can soon target higher levels. PUNJABTRACTOR: this stock is showing a small rounding bottom formation and can target rs.270-290 and even higher levels investment for medium term only advisable buy in dips.

Counter view: There is a remarkable increase in leverage position from retail investor which is always a danger sign, F&O Future & Option has unique advantage and disadvantage and which small investor can never make use of due to many limitations. 1) Investor should understand F&O is time bound 1month-2month-3month so this make it very simple one person loss is other person gain. 2)But in my experience the gains goes to arbitrage funds who benefit from cost of carry and few market intermediaries but the loss is suffered mainly by investor 3) How? Investors buy in F&O because they have limitation of funds so they like to maximize the profit with minimum investment but in reality this can never happen 4) why? Markets never move one side up or down it moves up & down so on a daily basis there is always mark to margin over and above u r initial margin suddenly the stock loses 8-10% which means big chunk of money goes in paying mark to market margin and a fear builds in as F&O position is taken due to limitation in fund end when he sees 3-4% more drop he is unable to bear the pain and sell in panic and all is capital gets eroded. Conclusion one who buys in cash can relax and one who buys on credit is always tensed profit is made only when u can bear the pain of markets and it can happen only when u can limit u r risk.
NEWS:
http://www.capitalmarket.com Ranbaxy Laboratories has launched its brand Soliten (Solifenacin) in India for managing chronic urological disorder. The product is being introduced for the first time in India. Soliten will be sold in dosage form of 5 mg and 10 mg tablets. PRICOL plans to split its operation into two independent divisions to battle rising input cost and competition. The split will be based on the growth potential for its divisions and is expected to leverage its light engineering segment. The company had seen a fall in market share from 50% from 42% in India in the last three years due to higher input cost and tighter competition. Refinery stocks surged on the back of consistently declining price of crude oil globally.

http://www.businessstandard.com Larsen and Toubro Ltd and Mitsubishi Heavy Industries are planning to set up a power generation-equipment manufacturing facility for 800 Mw super-critical boilers in the country. Ranbaxy Laboratories said Life Insurance Corporation of India has increased its stake in the company to 10.04%. The floods that ravaged Surat has taken the city backwards economically by at least 25 years, and it is likely to remain so for at least the next five years, according to industry experts who have watched the economic progress of the diamond-cutting city.

http://www.financialexpress.com Centurion Bank of Punjab (CBoP) on Saturday announced an in-principle agreement to acquire the 65-year old Kochi-based unlisted Lord Krishna Bank (LKB). The $120 billion global market for injectables is getting increasingly attractive for Indian pharmaceutical companies. The injectable formulations market is growing at a rate of 10% worldwide and injectables worth $5.5 billion are coming off patent in the US alone by 2010. This includes Amgen's Neupogen (Filgrastim) with 2002 sales of $1.5 billion, and GSK's Zofran (Ondansetron) with annual sales of $1.3 billion in 2003. Sensing this opportunity, players in the $1 billion Indian injectables segment are partnering with MNCs for supply of injectables. Orchid Chemicals & Pharmaceuticals had tied up with Apotex Corp of the US for the sale of its injectable medicines in the US.

http://www.thehindubusinessline.com Abbott India Ltd has informed BSE that a meeting of the board of directors will be held on August 25 to consider a proposal for buyback of a portion of fully paid equity shares of the company. Transworks Information Services Ltd, the BPO arm of Aditya Birla group, completed its $125 million acquisition of Canadian firm Minacs. German cement and building materials giant Heidelberg Cement AG's subsidiary Cementrum I BV has decided to waive off the conditions for accepting minimum number of shares under the open offer made by it to the shareholders of SK Birla group company Mysore Cements Ltd.
http://economictimes.indiatimes.com India is emerging as the global clinical research hub. Many multinational pharmaceutical companies are conducting clinical trials on new drugs in India which have passed through Phase I studies in their country of origin.

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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.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a6Pnf6gWNYgk&refer=worldwide_news BHP Shuts World's Biggest Copper Mine After Blockade

http://www.adb.org/documents/books/ado/2006/documents/ado2006.pdf This 18th edition of the Asian Development Outlook provides a comprehensive economic analysis of 43 economies in developing Asia and the Pacific.
http://www.financialexpress.com/fe_full_story.php?content_id=137706 Pharma firms eye global injectables pie