Daily Report August 30th Wednesday

Nifty (3425) SUPPORT-3405-3388-3357 RESISTANCE-3442-3478-3519 Nifty range 3396-3478 markets has closed more toward positive bias with last 2days of F&O expiry and the volatility is not so high but stock specific movement would be larger now. F&O expiry so below 3392 if markets stay a sell off till 3357 is also possible. TOP 5GAINERS=MARUTI-ITC-SUNPHARMA-WIPRO-HDFC TOP5LOSER=HINDLEVER-TATASTEEL-BPCL-IPCL-ORIENTBANK . P/E=19.22 p/b=4.64 adv=27 dec=22 NSE adv: 436 dec: 478 -vol-rs.5750crs

Sensex (11706) SUPPORT-11651-11570-11492 RESISTANCE-11798-11910-12040 Sensex has gaped up 11633-11651 so till this gap is not closed one can have a bullish view 12000 above levels can also be possible soon. SBIN would be a stock to watch in next 2days it can target rs.980 levels also if rs.900 above levels is maintained.

8dma=11539 13dma=11453 21dma=11239 34dma=10945 55dma=10679 OPEN=11651 HIGH=11739 LOW=11651 BSE adv: 1249 dec: 1269 -vol-rs.2710crs

Fiis buyer rs.43crs and Mutual funds seller rs.10crs on Monday, Fiis buyer rs.3937crs in August month and buyer rs.16683Crs in 2006, mutual fund buyer rs.240crs in August month. F&O DATA Fiis buy rs.289crs in nifty future and sell rs.90crs in stock future on 29th August and provisional Fiis buy in cash rs.202crs source NSE website

Day That Ended: Market opened on positive note but volumes is still a worry, failing Crude $69.93 helped the sentiment and sectors which led the gains are TECH-CONSUMER DURABLE while METALS was a notable loser after news that small price cut in steel would come. Fiis buying almost rs.4000crs and above in the month of August is a big sentiment booster and with Crude almost near 4month low and FED rate hike can face one more pause would be lead Indian markets to highest gain on monthly basis with still 2trading days left. International markets U.S market closed positive and Indian ADRs closed higher EURO market mixed and ASIAN markets opened positive.

Outlook for Wednesday: 2days more for month end close & F&O expiry also falls on that date so markets can surprise and big upside in next 2days is not ruled out as there is no major selling pressure from Fiis &MF and both have turned net buyer for the month. There is a major sector rotation and with lower crude would benefit stocks which are linked to that. WIPRO has given a breakout and would target higher levels soon and TECH stocks in general looking good on charts TCS-INFOSYS-SATYAM can give 10-15% returns soon.

STOCK TECH view: HPCL buy around rs.265-275 for a target of rs.320-330 soon stops below rs.254. BPCL buy around rs.348-355 target rs.420-430 stops below rs.338 holding period can be 1-2months.

NEWS:

Bharat Heavy Electricals (BHEL) today announced a roadmap for expanding power equipment manufacturing capacity to 10,000 MW annually at an investment of more than Rs 1,600 crore.(BS)

The board of Steel Authority of India (SAIL) today approved an investment of Rs 350 crore for three modernisation and expansion projects at its Bhilai and Bokaro plants.(BS)

Suven Life Sciences has signed an agreement with US-based Eli Lilly and Company to collaborate on pre-clinical research of molecules in the therapeutic area of central nervous system (CNS) disorders.(BS)

Tulip IT Services has received the national long distance (NLD) licence from the Department of Telecommunications (DoT).(BS)

Tata Steel, which said in June it planned to raise up to $1.4 billion through one or more equity-related sales, has invited investment banks to pitch for a $500 million-$600 million Global Depository Receipt (GDR) offering, sources said.(ET)

Domestic manufacturers of hot-rolled steel are likely to reduce prices from September 1. However, the quantum of reduction is yet to be decided and is likely to be finalized within the next two days.(BL)

ITC Ltd is scouting for prime locations to set up hotels in West Bengal. It is exploring a clutch of options, including launching these hotels under the Fortune or WelcomHeritage, two key brands in its hotels portfolio.(ET)

Hinduja TMT is scheduled to meet on August 31, 2006 to consider a scheme of

Arrangement and restructuring by way of the demerger of the company's IT & IES undertaking into a separate company.(BS)

[Dow Jones] STOCK CALL: First Global starts GAIL with a market perform rating, although valuations (at 9.3X FY07E) "extremely low as compared to that of the other global majors"; says its valuations justified "given the high regulatory risk in India". Adds, "going forward, there are a number of potential triggers, although their timing and form isn't yet clear due to various regulatory roadblocks".

[Dow Jones] WALL STREET: Stocks mounted Fed-induced comeback with techs out in front; DJIA +0.2% after early 52 point fall, NASDAQ +0.5%, Philly semicons +1.7%. Market struggled for much of session but turned positive midafternoon after release of FOMC minutes from last meeting; "the Fed made no statement that rate hikes would resume anytime soon, if at all. Also, oil breaking below the psychological 70 dollar barrier added to the positive tone.

(Dow Jones)--Capgemini the French information-technology and consulting company, has lined up $500 million for acquisitions in India , a senior company official said Tuesday.

(DJ) EADS Says To Invest EUR2Bln In India Over 15 Years EADS Chief Executive Tom Enders made the announcement during meetings with senior Indian officials. Enders is in India as a member of a German delegation headed by the country's Minister of Economics and Technology, Michael Glos .

(Bloomberg) -- National Aluminum Co., India's biggest producer of alumina, expects second-half profit to decline because of falling prices of the raw material used to make the lightweight metal.

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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.businessstandard.com/bsonline/storypage.php?leftnm=11&bKeyFlag=IN&autono=4894 IPCL buy-out tussle may be headed for arbitration.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a6w3xjaWVJgI&refer=worldwide_news Fed Pause `Close Call'; Officials Unsure of Outlook


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