Daily Report August 22nd Tuesday

Nifty (3366) SUPPORT-3345-3305-3260 RESISTANCE-3395-3429-3475 Nifty range 3361-3429 now nifty should trade above 3361 for most part of the day failing which 3345 & 3332 is a double bottom and stop loss, now breaking that we would see selling till 3260 before any fresh rally this I would say worst case scenario. RELIANCE trading above rs.1075 would test rs.1100 and above levels. TOP 5GAINERS=PNB-HINDPETRO-ORIENTBANK-M&M-VSNL TOP5LOSER=RANBAXY-DABUR-SAIL-ONGC-BEL. P/E=18.88 p/b=4.56 adv=32 dec=17 NSE adv: 544 dec: 368 -vol-rs.5640crs

Sensex (11511) SUPPORT-11410-11335-11220 RESISTANCE-11580-11655-11814 Sensex has maintained its upside gap 11330-11375 and this area has acted as a strong support so till the gap downside is not tested being bullish would do well. Many talk about Elliot wave C-wave down till 8800-8400 is possible this is one good E-book which make one understand wave theory better in a simple way. http://rapidshare.de/files/29624465/How_to_Identify_High_Profit_Elliot_Waves.pdf

8dma=11377 13dma=11168 21dma=11926 34dma=10792 55dma=10462 OPEN=11488 HIGH=11531 LOW=11370 BSE adv: 1451 dec: 1037 -vol-rs.2300crs

Fiis buyer rs.519crs and Mutual funds seller rs.56crs on Friday, Fiis buyer rs.3777crs in August month and buyer rs.16524Crs in 2006, mutual fund buyer rs.251crs in August month. F&O DATA Fiis sell rs.186crs in nifty future and sell rs.78crs in stock future on 21st August and provisional Fiis sell in cash rs.139crs source NSE website

Day That Ended: Dull day with low volume in both exchange but positive advance to decline ratio it was TECH stocks which where seeing good buying and METALS which after few bad days showing sign of reversal. Few international events are weighing heavily now IRAN deadline for nuclear compliance has made Crude $72.53 & YUAN getting stronger against dollars should benefit Indian exports, and copper prices rise due to strike in BHP plant in Chile STER would be the biggest beneficiary. International markets U.S markets closed on a weak note Indian ADRs mixed PATNICOMP gained 11% EURO markets closed weak FTSE was the only gainer ASIAN markets has opened strong.

Outlook for Tuesday: Markets had an excellent close so the bullish trend would continue to move up and METALS-TEXTILE would be sectors to watch. MARUTI should be seeing some good buying after news that 10.2% remaining stake would be sold, ALOKTEX-BILT-EIDPARRY-TINPLATE few good picks for investor looking for a good returns in 3-4months WOCKHARD-BEML-BIOCON-BHARTISHIPYARD would soon become surprise stock of the market.

STOCK TECH view: MARUTI: Stock above rs.846 should target rs.915 and above soon. ONGC has formed a double top at rs.1250 if the low of rs.1178 is not cut or tested it would more likely test the double top at rs.1250.

Counter view: Compulsory education this would be a major driving force which can change India's growth in years to come if schemes are properly implemented, I would like to talk about the state Tamilnadu where many private engineering & medical college where started in 80's. There were many free scheme implemented and those are not worth talking now, it had few scheme for children who are studying like free books-free travel in govt buses-free midday meals-free education and this has transformed this state in a big way many poor children of 80's-90's are now professional graduates who work in big companies earning good and living a life in luxury and few electoral politics changed there lives. We the nation India would have reached great heights if we had invested our resources in developing skills rather than providing free meals and if we had done right things at right time but our politicians where more interested in gaining votes and resorted policy which wasted our nations wealth. Many still talk about poverty and they would fight against it but how? Free food-free cloth-free housing… which we have seen for past 59years of freedom didn't bring any good. Compulsory free education can be the only solution and it has to be implemented in the correct way otherwise it would be one of the wasteful schemes.

NEWS:

Corporate news:

Bajaj Hindusthan Plans $500 Million Sugar Investments in Brazil (Bloomberg)

Tata Steel KZN today commenced construction of its ambitious ferrochrome plant in South Africa, aiming to expand its presence in that country . (BS)

Banking circles are abuzz with rumours that ICICI Bank, the largest private sector bank in the country, has been pulled up by regulatory authorities in Kuwait and Hong Kong for selling mutual funds and insurance products without obtaining the necessary licences.(TOI)

The government intends to sell its remaining 10.2% stake in Maruti Udyog Ltd during the current fiscal, in a move which could fetch it nearly Rs 2,500 crore. (TOI)

GMR, which raised Rs 8000 crore through its IPO earlier this month, started trading at Rs 215 rupees, up just Rs five from the issue price of Rs 210. (IBN)

Radico Khaitan on Monday announced a 50:50 joint venture with the world's leading spirits maker Diageo targeting the Indian-Made Foreign Liquor (IMFL) segment.(ET)

Shree Renuka Sugars Ltd has revised its capital expenditure upwards by 30 per cent and is looking at acquisitions to push growth, a top official told media on Monday.(ET)

The Government on Monday put to rest possibilities of a negotiated settlement with Sterlite Industries over the sale of residual 49 per cent stake in Balco with the Law Minister, Mr H.R. Bhardwaj, declaring that the issue would ultimately go for arbitration.(BL)

Add on news:

India is likely to capture around 15 per cent of the over $54 billion Knowledge Process Outsourcing industry worldwide by 2010 from 5 per cent now, the Ministry of Communication and IT said.(ET)

India is all set to report a record 3.25 million bales of cotton exports in the just concluded cotton year (2005-06) ending July, mainly due to higher imports by neighbouring China. The forecast for the just commenced cotton year (2006-07) beginning August has also been revised up 2,50,000 bales, to 4.25 million bales.(FE)

International news:

Coffee at seven-year high Coffee prices rose 4 per cent yesterday to a near seven-year high after recent heavy rainfall hit supplies from Vietnam, the largest producer of the robusta bean. (FT)

Copper prices rose strongly on Monday as striking workers at the world's largest copper mine in Chile rejected an improved wage offer from BHP Billiton and took their dispute into its third week. (FT)

http://in.groups.yahoo.com/group/prabhakar-views/join join and view files and links it is like a library.

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=atcHZBC8v5h4&refer=worldwide_news Bajaj Hindusthan

http://www.ft.com/cms/s/3e89b41e-3139-11db-b953-0000779e2340,_i_rssPage=9ff9d7a4-506d-11da-bbd7-0000779e2340.html Coffee at seven-year high



http://globalpolitician.com/articledes.asp?ID=2071&cid=2&sid=4 Is War With Israel The Next Step For Iran ?



http://www.betanews.com/article/Infineon_Snags_RFID_Passport_Contract/1156175183 RFID passport

http://www.financialexpress.com/fe_full_story.php?content_id=138009 PSU bonus raises issues