Daily Report August 23rd Wednesday

Nifty (3364) SUPPORT-3345-3314-3272 RESISTANCE-3403-3432-3475 Nifty range 3345-3403 whichever side markets move would give a breakout below 3345 we can have a 2day correction till 3272-3260 and this can be very fast and swift and possibly it can be a intraday correction only. On the other hand upside breakout markets would target 3700-3800 by Oct end so one can possibly buy in panic with 3210 as a stop loss for that target. TOP 5GAINERS=REL-SAIL-HDFC-HDFCBANK-SUNPHARMA TOP5LOSER=HINDPETRO-BPCL-GLAXO-DRREDDY-RANBAXY. P/E=18.88 p/b=4.55 adv=20 dec=29 NSE adv: 458 dec: 436 -vol-rs.6294crs

Sensex (11502) SUPPORT-11440-11374-11269 RESISTANCE-11610-11714-11877 Sensex opened with a gap up and the gap was closed due to panic selling and profit booking markets is in a tight range but not showing any sign of weakness but any 300point correction would be healthy for markets and higher levels can be easily reached.
8dma=11382 13dma=11217 21dma=10993 34dma=10817 55dma=10490 OPEN=11547 HIGH=11619 LOW=11460 BSE adv: 1247 dec: 1276 -vol-rs.3071crs
Fiis buyer rs.42crs and Mutual funds buyer rs.3crs on Monday, Fiis buyer rs.3820crs in August month and buyer rs.16566Crs in 2006, mutual fund buyer rs.254crs in August month. F&O DATA Fiis sell rs.4crs in nifty future and sell rs.131crs in stock future on 22nd August and provisional Fiis sell in cash rs.26crs source NSE website

Day That Ended: Markets opened on a strong note profit sale, traders unwinding position and panic made markets close in red. Crude $72.91 very flat and Iran has issued a reply and this should take 2-3 days to know wat the reply contains. International markets U.S has closed positively flat Indian ADRs more towards positive EURO markets positive close exception being FTSE-ATX ASIAN markets has opened flat with NIKKEI marginally down. METAL-SUGAR-TEXTILES saw good buying while PHARMA-TECH-OILMARKETING-CAPITAL GOODS saw selling and profit booking at higher levels.
Outlook for Wednesday: Flat to negative opening and markets can drift down before recovery lower levels to attract good buying ONGC can be a star performer soon BILT-SPENTEX-RAYMOND would be few value picks. Predicting daily movement of markets is very hard it is how much u can earn in a markets which is more important so be stock specific and invest wisely.

STOCK TECH view: BILT: Stock has seen good accumulation and with in a upward channel any breaking of the channel would give 15-20% returns in 1-2months. SPENTEXIND: Buy on dips and this stock can outperform markets 50% upside possible in a years time (never overexpose u r self with few stock a good portfolio should have 30-40 stocks so that risk is shared)

Counter view: IRAN can U.S handle this? This would be the most interesting development which would have no near term solution, many deadline would pass, hard bargain would go on with near term solution would be a distant dream. There are many reasons 1) European countries are tired of U.S aggressive policy and they face a huge pressure in there respective country and if one where to notice a peace force for Lebanon difficult to come 2) IRAQ has been a big failure and WMD- weapon of mass destruction is yet to be found which would be a big mistake in history as all wrong move by a super power is making those place breeding place for terrorist IRAQ-AFGAN. 3) And U.S support to Israel aggression has added to woes as more terrorist threat looms large, different policy of U.S for different countries as many terror attacks and training pointing to Pakistan and no action has been taken till now. To conclude there is a general perception that high Crude price benefits the ruling family in U.S and many policy is framed keeping this in mind and now that seem to make a big mess as U.S cant afford one more troop deployment they can resort sanction how effective will it be is a big doubt as now all GOVT are under pressure on high Oil price and no one would support this in any way. If one where to read SUN TZU ON THE ART OF WAR one would understand big mistake of taking control of a country like IRAQ saying it was a military &undemocratic rule then wat about Saudi, Pakistan, etc

NEWS:
Corporate news:
Leading paper manufacturer Ballarpur Industries (Bilt) today reported 67.72% jump in net profit at Rs 67.88 crore for the quarter ended June 30 (Q4), as compared to Rs 40.47 crore for the same quarter in FY06.For the year ended June 30, 2006 its net profit stood at Rs 212 crore, up 26.13% compared to Rs 168 crore last fiscal. The company also announced plans to pump in about Rs 1,200 crore on capacity expansion of both its domestic and overseas units as it eyes 1 million tonne capacity by 2008 to be amongst the top 10 producers in Asia.(BS)
ONGC’s Sakhalin venture will begin ramping up from 4Q-2006 and will add 8% to its crude volumes by next year. Rosneft’s recent IPO prospectus also indicates that fiscal terms for the project are attractive and Sakhalin’s profits in FY08-09 would be 55-65% higher than our current estimates. We are upgrading FY08-09 EPS for ONGC by c.5%. At 8.5x PE, 4.5% dividend yield and US$4.5/boe, ONGC is one of the cheapest stocks in India, MSCI AxJ and in the global upstream space. BUY.(CLSA)
Tata Motors is implementing a low-cost vendor strategy for component sourcing to keep the cost of its ambitious Rs 1 lakh car project within check.(FE)
Micro Technologies India has tied up with Knowledge Vector, a US based enterprise Solutions Company. Knowledge Vectors will customize the high-end security products of the company for the huge security solutions market in the US. This tie-up leverages technologies from both companies to connect advantage of global market and will cater to the growing demand for defense and homeland security product in the US market. (CM)
Sterlite Optical Technologies rose on deciding to acquire the power transmission conductor business of Sterlite Industries for Rs 148.51 crore.(CM)
Add on news:
A new article by Standard & Poor's Ratings Services says that India's economy is growing at an average rate of more than 8% in the past three years, making it the second-fastest growing economy in the world.(FE)
The Indian stock market is expected to soon join the league of key international bourses who have permitted short selling in their jurisdictions. These markets includes Hong Kong, Korea, Japan, and Singapore where all classes of investors are permitted to sell short on certain designated securities subject to disclosure of such transactions and tick rules which prohibit short sell transactions during s falling market.(FE)
International news:
Forecasters at the National Hurricane Center say a tropical depression in the far eastern Atlantic is expected to become a tropical storm by Wednesday and will take the name Debby.

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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://timesofindia.indiatimes.com/articleshow/1917498.cms Govt fills coffers with fuel hike
http://news.monstersandcritics.com/northamerica/article_1193380.php/Analysis_Straining_the_country%60s_psyche President George W. Bush admitted that the war in Iraq is 'straining the psyche of our country.
http://news.xinhuanet.com/english/2006-08/23/content_4994614.htm?rss=1 Iran ready for talks over nuclear issue