Daily Report August 24th Thursday

Nifty (3335) SUPPORT-3318-3295-3272 RESISTANCE-3361-3385-3425 Nifty range 3310-3364 we would see a remarkable recovery in markets by close and a small resistance would be there near 3361-3385 so any close above that by Friday would do well for markets. 3day correction would be healthy and any bounce back would be fast 3398-3271 fall in 3days recovery will be also very fast so guard u r position if u get on the wrong side. TOP 5GAINERS=VSNL-SIEMENS-SUZLON-SATYAMCOMP-GAIL TOP5LOSER=M&M-JETAIRWAYS-HDFC-BAJAJAUTO-HINDPETRO. P/E=18.71 p/b=4.52 adv=12 dec=37 NSE adv:275 dec:640 -vol-rs.5970crs

Sensex (11406) SUPPORT-11340-11264-11194 RESISTANCE-11509-11598-10710 Sensex is facing a very strong support at 11375 and it has not been able to break that if markets are able to close the gap we would have a strong pull back. But in case markets creates a downside gap and doesn’t close within the day it would be advisable to exit markets.
8dma=10414 13dma=11254 21dma=11050 34dma=10831 55dma=10520 OPEN=11579 HIGH=11579 LOW=11374 BSE adv:893 dec:1629 -vol-rs.2997crs
Fiis seller rs.9crs and Mutual funds seller rs.28crs on Tuesday, Fiis buyer rs.3810crs in August month and buyer rs.16557Crs in 2006, mutual fund buyer rs.226crs in August month. F&O DATA Fiis sell rs.353crs in nifty future and sell rs.162crs in stock future on 23rd August and provisional Fiis sell in cash rs.32crs source NSE website

Day That Ended: Markets opened weak and closed even weaker REALESTATE stocks faced good selling pressure as many news pointed to slowing demand for housing in India and in U.S too. PAPER stocks where seen to attract good buying along with TEXTILES, while many PHARMA stocks corrected. Declines where more than advances and volumes lower many cash stocks saw selling pressure. International markets U.S markets where down after data which showed slowing housing demand and general slowdown in economy EURO markets closed weak ASIAN markets has opened weak Crude $71.79.
Outlook for Thursday: Markets to open weak and panic would be good chance to buy, markets have many positive and negative factors so there has been major shift in the sector preference so that is where investor should understand slowdown in housing demand, falling Crude, rising paper prices, strong Yuan which would boost Indian exports, and possibility of pause or even a cut in U.S interest rate are the factors in front of us. PAPER-TEXTILES-OIL would be sector to watch, BILT-TNPL-MNM-ALOKTEX-BHARTISHIRYARD-BEML-FDC-GDL-WOCKHARD-WIPRO-RAYMOND-RANBAXY-BIOCON-TVSMOT would be few good pick for 3-4 months for a average returns of 15-20% some times it can be even more but use the ultimate panic in markets and stocks to enter them.


NEWS:
Corporate news:
Tata Tea buys 30% in Glaceau for $677mn In the largest ever acquisition by an Indian firm, The Tata Group today announced it had acquired a 30% stake in Energy Brands Inc, USA, also known as Glacéau, a specialty mineral water and energy drink company.(BS)
HCL Infosystems celebrated its 30th year posting a 47% growth in consolidated revenue to Rs 11, 455 crore for the year ended June 30, 2006 as against the corresponding previous period's figure of Rs 7787.2 crore. (BS)
Pune-based auto components manufacturer, Bharat Forge is setting up a special economic zone (SEZ) near Pune, on land spread across 5,000 acres at an estimated investment of around Rs 20,000-25,000 crore.(BL)
Dishman Pharmaceuticals and Chemicals Ltd on Wednesday said it has acquired Swiss research based company Cabbogen Amcis AG from Solutia Europe (SESA) for over Rs 349.30 crore ($75 million).(BL)
The US Food and Drug Administration have approved Glenmark Pharmaceuticals Ltd.'s epilepsy drug gabapentin, the regulator's Web site showed on Wednesday.(ET)
International news:
Sales of previously owned U.S. homes fell in July to the lowest in more than two years, a slowdown that may lead the Federal Reserve to keep interest rates steady for a second month.(Bloomberg)
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http://www.ft.com/cms/s/609ff4ea-32ca-11db-87ac-0000779e2340,_i_rssPage=9ff9d7a4-506d-11da-bbd7-0000779e2340.html Oil markets face continued imbalances
http://www.bloomberg.com/apps/news?pid=20601087&sid=aftfQZiZlOyg&refer=worldwide_news Japanese Stocks Drop on Concern U.S. Economic Growth Is Slowing
http://www.bloomberg.com/apps/news?pid=20601087&sid=aSfc6b6H8pd4&refer=worldwide_news U.S., France Say Iran Falls Short on Nuclear Bargain