Daily Report August 31st Thursday

Nifty (3430) SUPPORT-3416-3394-3357 RESISTANCE-3464-3490-3540 Nifty range 3416-3464 any move above 3464 would be a major upside, downside has many support and with last day of F&O a good panic in stocks would be chance to buy. Few ratio in option point that we would see a major upside today so I have avoided a trailing stop loss. TOP 5GAINERS=BPCL-HINDPETRO-RANBAXY-PNB-MTNL TOP5LOSER=SAIL-TATAPOWER-REL-TATASTEEL-NATIONALUM. P/E=19.25 p/b=4.58 adv=26 dec=23 NSE adv: 341 dec: 570 -vol-rs.5803crs

Sensex (11723) SUPPORT-11648-11585-11510 RESISTANCE-11804-11910-12040 Sensex gap narrowed down 11633-11643 but market has maintained its bullish outlook so any panic would be a chance to add stocks and levels above 12000 soon in my view. There would be days where investors and day traders should avoid markets and today would be one, markets is always correct and we would get it wrong so never time markets.

8dma=11571 13dma=11497 21dma=11286 34dma=10968 55dma=10730 OPEN=11735 HIGH=11756 LOW=11643 BSE adv: 1066 dec: 1474 -vol-rs.2715crs

Fiis buyer rs.368crs and Mutual funds buyer rs.73crs on Monday, Fiis buyer rs.4306crs in August month and buyer rs.17052Crs in 2006, mutual fund buyer rs.313crs in August month. F&O DATA Fiis buy rs.184crs in nifty future and sell rs.167crs in stock future on 30th August and provisional Fiis buy in cash rs.287crs source NSE website

Day That Ended: Markets stable with no major gains but sectors rotation was visible METALS losing OIL marketing & FMCG gaining high, GAMMONINDIA had many block deals with 35lac volumes and 91% delivery. RBI came out with its annual report which gave loan growth which was impressive even after 200 basis point rise in interest and RBI maintained growth at 8% GDP which would be a booster to stock markets and BANKS in particular. International markets U.S markets closed with margin gains with Crude which touched 5months low to close at $70.38 Indian ADRs closing mostly negative EURO market closed very positively and ASIAN markets has opened on a very positive note.

Outlook for Thursday: LAST day of F&O expiry & month there is a positive undertone but will markets give a big upside is wat we will have to see there can be a big spurt in bank stocks & construction stocks. Markets always give good chance to buy and sell last day of F&O expiry few stocks can have panic sale or spurt due to short covering these should be used effectively and METAL stocks if they have panic sale(8-10% down) would be a chance to add. ITC-WIPRO-TCS-IVRCL-BIOCON-BEML-BHEL-BHARTISHIPYARD-HINDSANTIWARE are stocks one can add in panic.

STOCK TECH view: MAHAVIRSPINNING: buy rs.285-290 target rs.335-340 below rs.275 its stops target should be possible by 1-2 months. HINDSANTIWARE buy rs.104-108 target rs.150 which is above 40% & above gain would take 4-5months charts are showing strong accumulation use panic in markets to add.

NEWS:

United Phosphorus has purchased certain crop protection products from Bayer Crop Science for a consideration of Euro 43.50 million, including inventories.(BS)

Aurobindo Pharma may hive off research facility, joining the dedicated R&D company bandwagon, the Rs 1,500 crore bulk drug Major Aurobindo Pharma is planning to hive off its research and development division into a separate company.(BS)

A sharp 54% jump in housing loans helped retail lending grow 47% in the first quarter of the current fiscal, according to the RBI annual report released on Wednesday. The spike in retail lending comes despite a 200 basis point hike in interest rates in the last one year.(FE)

GDP growth to stay above 8%, Riding on the back of manufacturing and services sector performance, Indian economy is likely to clock above 8 per cent growth rate almost nearing the last year performance of 8.4 per cent, industry body Assocham's survey (ET)

FMCG major Hindustan Lever Ltd (HLL) would scale up the number of Ayush Therapy centres (ATCs) to 100 in next two years and would focus on addition of new value-added services. & Hindustan Lever Ltd has diluted its stake in the Tata group company Tata Chemicals through sale of a part of its shareholding for about Rs 94.4 crore. (ET)

Nicholas Piramal India Ltd on Wednesday said its group company and diagnostic laboratories chain, Wellspring, has acquired the remaining 40 per cent stake in its joint venture with Dr Phadke's Path Labs for Rs 14 crore.(ET)

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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.financialexpress.com/fe_full_story.php?content_id=138941 sharp 54% jump in housing loans.

http://www.thehindubusinessline.com/2006/08/31/stories/2006083103490100.htm Defence: Govt to partner industry

http://www.financialexpress.com/latest_full_story.php?content_id=138953 India needs to review energy taxes: Montek