Daily Report August 7th, 2006 Monday

Nifty (3176) SUPPORT-3155-3140-3115 RESISTANCE-3201-3231-3277 Nifty range 3155-3231 markets is more a range bound and markets has failed to close above 3183-3208 levels and around these levels profit booking and selling is visible. Weekly graph shows a positive bias in markets and any down move below 3115 intraday and any close below 3140 on daily charts only would be negative till then markets is range bound with a positive bias. TOP 5GAINERS=IPCL-GLAXO-SUZLON-ABB-DABUR TOP5LOSER=PNB-ORIENTBANK-SBIN-TATATEA-HINDPETRO. P/E=17.83 p/b=4.33 adv=25 dec=25 NSE adv: 352 dec: 548 -vol-rs.5539crs

Sensex (10866) SUPPORT-10798-10708-10605 RESISTANCE-10988-11060-11135 Sensex has strong support at 10708 and a strong resistance around 11200 levels which would be the likely range for coming week and FED rate hike will be know to Indian markets on Wednesday only a clear move would happen after that till than stock specific movement would be there.
8dma=10775 13dma=10559 21dma=10574 34dma=10510 55dma=10336 OPEN=10929 HIGH=11039 LOW=10810 BSE adv: 1067 dec: 1375 -vol-rs.2550crs

Fiis buyer rs.240crs and Mutual funds buyer rs.169crs on Thursday, Fiis buyer rs.653crs in August month and buyer rs.13400Crs in 2006, mutual fund seller rs.46crs in August month. F&O DATA Fiis buy rs.17crs in nifty future and sell rs.171crs in stock future on 4th August and provisional Fiis sell in cash rs.105crs source NSE website

Day That Ended: Markets opened strong but few statements made markets to correct PSUBANK was feeling the heat of FM statement on interest rate, RELIANCE saw selling due to VOLCKER report and OIL minister statement that oil subsidiary wont be given to private companies and one more statement of ban on IRONORE exports was also flashed. Midcap stocks were action has shifted as more value and returns seem to be there but should be very selective in stock selection there. PHARMA-ENGEERING was two sectors where many stocks have gained. International markets U.S markets opened strong to close flat to weak EURO markets closed very positive Crude$74.60.

Outlook for Monday: Stock specific movements and more towards MIDCAPS for positive action INDEX stocks seem to be more sideways and running out of steam with markets waiting for U.S FED rate meeting. There is a good accumulation in smaller private sector banks KTKBANK-CUB-INDUSINDBANK-FEDRALBANK to name a few, and AUTOANCILLARY stocks like RICOAUTO-OMAXAUTO-AMTEKAUTO where good action is seen and PHARMA gained in all cap large-small. BHARTIARTL-BHARTISHIPYARD-HEROHONDA is looking good for big gains this settlement.

STOCK TECH views: ABB has a minor resistance at 2650 crossing which 2780 would be possible. AMTEKAUTO is looking good for a target of rs.320 and above but one should wait for downside to buy rs.280-285 would be good levels to buy. RANBAXY above rs.402 would target rs.422 it would be a breakout. OMAXAUTO rs.92 is a strong resistance any close above that stock would target rs.130 this would be a short term target. (Jus use this as indicators no buy or sell is advised)

Counter view: Stephen Kobrin, a professor of management at Wharton, doesn't buy what he hears from Indian businesses that while India is a democracy, China is not and therefore the Chinese have an easier time. "That argument is used too often as an excuse for a lack of progress," he says. "A lot of problems that India is experiencing are not because it is a democracy, but are leftovers from the British Raj and the socialist system early on. They don't have as much to do with democracy as the nature of governance in India." Kobrin says people looking at India have concerns about "a lot of bureaucracy, a lot of controls, a lot of restraints, a lot of difficulty in establishing an enterprise and barriers in the way of entrepreneurship." He doesn't see ready solutions: "Just simply adapting laissez faire free market economic policies, deregulating and privatizing are probably not going to work either," he says. "They have a very difficult task treading between deregulation and privatization on the one hand, and protecting the social interests of a large part of the population on the other." – True are his words jus read and listen to statements to political bosses they have proved the fears of the world true, to be continued.

NEWS:
http://www.capitalmarket.com Robust Q1 figures, bonus issue thrill Jagran Prakashan, reported 433.8% growth in net profit for Q1 June 2006 to Rs 22.90 crore (Rs 4.29 crore). Sales rose 19.8% to Rs 136.68 crore (Rs 114.06 crore). Nagarjuna Construction spurted 36.51% in a fortnight, from Rs 202.4 on 21 July to Rs 276.3 on 4 August, on securing big contracts that added to an already strong order-book of Rs 5,428 crore and robust Q1 results.

http://www.businessstandard.com SABMiller Plc, the world’s second-largest brewer by volume, has announced that it had entered into an agreement to acquire Foster’s India for $120 million. CPI (M) today demanded an investigation into the role of the Reliance group, which was one of the alleged beneficiaries named in the Volcker Committee report in the oil-for-food scam. The government today rejected the demand of Reliance Industries for compensation equal to public sector oil firms to make up for the losses it suffers on petrol and diesel sales.

http://www.financialexpress.com Mahindra & Mahindra (M&M) has received a boost in its bid to acquire Romanian tractor manufacturer Tractorul Brasov with the country’s Authority for Assets Recovery (AVAS) stating that it would sell the ailing company by ‘viable flows’, a condition that the Indian auto major has put for the deal. Most bank stocks, especially those of public sector banks (PSBs), ended the day deep in the red, even as analysts said the finance ministry’s letter to PSBs is expected to hurt their spread and net profit margins.

http://www.thehindubusinessline.com Bajaj Hindusthan Ltd has informed BSE that it has set up a 100 per cent subsidiary to implement a medium density fibre board (MDF) and particle board (PB) project. MDF/PB will use the bagasse generated by the company and this would become a significant value addition. The total cost of the project has been estimated to be Rs 240 crore and is likely to be completed within 15 months. TVS Motors Company has launched a new variant of it’s of 125 cc Victor GLX motorbike, with prices starting from Rs 42,950.

http://economictimes.indiatimes.com United Kingdom’s House of Commons Trade and Industry Committee has said that the UK is not as engaged with India’s market as it should be. It opines that UK companies perhaps lack awareness of India and that they tend to see India only as a source of low-cost labour and not an emerging market in its own right.

http://in.groups.yahoo.com/group/prabhakar-views/join join and view files and links it is like a library.

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.business-standard.com/common/storypage_c.php?leftnm=10&autono=100600 Banks listen to the master`s voice.