Daily Report August 2nd Wednesday

Nifty (3147) SUPPORT-3124-3095-3045 RESISTANCE-3174-3208-3270 Nifty above 3155 only would be bullish below 3124 would attract selling and profit booking. Above 3183 close would be very bullish signal for markets and target of 3381 would be month end target if we don't close below 3084. Nifty FUT almost at a premium if dividend on nifty stocks is taken into account so if global markets are positive then we would see a gap up open in my view. TOP 5GAINERS=BHEL-VSNL-BHARTIARTL-GAIL-LT TOP5LOSER=ORIENTBANK-NATIONALUM-PNB-IPCL-ZEETELE. P/E= p/b= adv=20 dec=30 NSE adv:324 dec:565 -vol-rs.4758crs

Sensex (10751) SUPPORT-10680-10564-10449 RESISTANCE-10848-10944-11050 Sensex 2nd day without direction more of sideways and volumes falling and markets never likes uncertainty this can maximum continue for few days after which markets will find a direction.

8dma=10531 13dma=10446 21dma=10559 34dma=10422 55dma=10339 OPEN=10737 HIGH=10777 LOW=10645 BSE adv: 1066 dec: 1299 -vol-rs.2200crs

Fiis buyer rs.355crs and Mutual funds seller rs.40crs on Monday, Fiis buyer rs.355crs in August month and buyer rs.13102Crs in 2006, mutual fund seller rs.81crs in July month. F&O DATA Fiis buy rs.118crs in nifty future and sell rs.35crs in stock future on 1st August and provisional Fiis sell in cash rs.106crs source NSE website

Day That Ended: Markets opened weak on global cues on a very low volume day and AUTO numbers posted by BAJAJAUTO-M&M-TVSMOT-TATAMOTORS have been excellent while sales from HEROHONDA-MARUTI was marginally up but news of above normal monsoon should boost the stocks. FITCH rating made markets close in positive and CEMENT despatch numbers from ACC boosted that stock and many BANKS had hiked there PLR which led to late recovery in those stocks too. International markets U.S. stocks closed sharply lower Tuesday after a round of strong economic reports dealt a blow to last week's hopes for a speedy conclusion to the Federal Reserve's interest-rate tightening campaign Indian ADRs closed weak EURO markets also weak and ASIAN markets also opened on weak note Crude $75.19.

Outlook for Wednesday: Indian markets have many good news above normal monsoon, good AUTO-CEMENT sales, good corporate numbers and FITCH rating upgrade. But few uncertain events like U.S fed rate decision and high Crude prices due to Geo-political tension and coming hurricane season, markets never like uncertainties. FMCG-AUTO-CEMENT would start to move with good monsoon and excellent sales number from AUTO&CEMENT companies. IPO are getting response which is a very good sign and it shows improved health of markets. BAJAJAUTO-M&M-ACC-ABB-GRASIM-TATAMOTORS looks good on graph any positive sentiment these can be big gainers.

M&M- good sales numbers, good monsoon and group companies IPO good response should boost this stock and target of rs.700 is possible soon.

NEWS:

http://www.capitalmarket.com Divi's Laboratories reported 109.60% surge in net profit to Rs 26.75 crore for Q1 June 2006 as compared to Rs 12.76 crore in Q1 June 2005. Net sales surged 148.80% to Rs 160.84 crore (Rs 64.64 crore). Navneet Publications climbs on stock-split clearance. Fitch upgraded India 's long-term foreign and local currency debt to 'BBB-' from 'BB+', with stable outlooks. The short-term foreign currency debt rating was also raised to 'F3' from 'B' and the country ceiling was upgraded to 'BBB-' from 'BB+'. "This upgrade reflects Fitch's view that fiscal consolidation is at last taking hold in India , reinforced by the impressive growth story and India 's strong external balance sheet," said Paul Rawkins, senior director in Fitch's Sovereign team in London. "Public finances are still weak, but they are no longer an insuperable constraint on this rating," he said.

http://www.businessstandard.com Tata Motors has reported a 44.5% growth in total vehicle sales for July 2006 at 45,056 vehicles (including exports) when compared with 31,173 vehicles sold in July last year. India's textiles and clothing exports rose 21.8% to $ 17.08 billion in FY06, the first full fiscal after the dismantling of the quota regime in international trade on January 1, 2005. Gujarat Ambuja Cements today said July shipments rose 7% to 1.02 million tonne from 0.95 million tonne in July 2005. Hero Honda today reported a 2.28% increase in sales during July at 2, 35,413 units as against 2, 30,050 units in the same month a year ago.

http://www.financialexpress.com Monsoon rains in July, crucial for crops such as oilseeds, cotton and rice, have been around 95 per cent of the long-term average, a senior weather official said on Tuesday. Crude oil rose in New York as Tropical Storm Chris, the third named storm of the Atlantic hurricane season, formed in the Caribbean .

http://www.thehindubusinessline.com Bajaj Auto Ltd on Tuesday reported a whopping 49 per cent jump in motorcycle sales in July at 1,71,115 units as against 1,15,216 units in the same month last year. TVS Motor Co on Tuesday reported a 28 per cent increase in motorcycle sales during July at 68,335 units compared to 53,215 units during same month last year. The initial public offering (IPO) of Tech Mahindra Ltd. has been fully subscribed, a merchant banker said today. "The issue has just been fully subscribed. The bids have come in an even spread across the price band," said a merchant banker close to the issue.

http://economictimes.indiatimes.com Paramount Communications, cable manufacturing company, on Tuesday posted 127 per cent increase in its profit after tax at Rs 5 crore for the quarter ended June 30, 2006 as against Rs 2.2 crore in the same period last year. Bharat Heavy Electricals Limited on Tuesday said it has secured a major contract from NTPC Ltd for setting up the first unit of 490 MW capacity at its National Capital Thermal Power Project Stage-II, in Dadri, Uttar Pradesh. Reserve Bank would shortly amend the Foreign Exchange Management Act (Fema) rules which have been blocking foreign direct investment (FDI) in various areas including wholesale trading.

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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.fitchindia.com/showDetails.jsp;jsessionid=37DA530F3A123E3160AEFF1447EF03C0?fileName=/upload/sectors/pressReleases/normal/2006/8/1/fitch01india.htm Fitch Raises India 's Ratings to Investment Grade; Outlook Stable

http://www.thehindubusinessline.com/2006/08/02/stories/2006080203290800.htm Drug cos make plans to beat `generic' woes

A.K.Prabhakar