Daily Report September 4th Monday

Nifty (3435) SUPPORT-3412-3390-3368 RESISTANCE-3452-3475-3510 Nifty range 3412-3475 markets has become range bound and markets risk to reward ratio is not so favorable like it was when buy was given at 2669 as my fancy bottom, I don’t carry a bearish view of markets yet but would advise a focused and long term approach and have cash 30-40% in hand. TOP 5GAINERS=ZEETELE-GAIL-GLAXO-IPCL-BAJAJAUTO TOP5LOSER=ONGC-SATYAMCOMP-ITC-MTNL-BHEL. P/E=19.68 p/b=4.50 adv=40 dec=9 NSE adv: 534 dec: 376 -vol-rs.5900crs

Sensex (11778) SUPPORT-11710-11631-11537 RESISTANCE-11850-11930-12040 Sensex above 11740 looks good and should break 11795 two days high to be really bullish, on weekly basis sensex has given 6weeks of gains & 1-2weeks upside still possible before a correction. Sensex touched 11500 on Aug 16 and 13 trading days are past and we have not been able to cross 11800 still moving less than 23points a day, and this really makes life difficult for day traders as movement is very slow.
8dma=11629 13dma=11572 21dma=11374 34dma=11025 55dma=10804 OPEN=11669 HIGH=11795 LOW=11666 BSE adv: 1345 dec: 1179 -vol-rs.2811crs
Fiis buyer rs.487crs and Mutual funds buyer rs.54crs on Thursday, Fiis buyer rs.17876Crs in 2006, mutual fund buyer rs.426crs in August month. F&O DATA Fiis sell rs.161crs in nifty future and sell rs.127crs in stock future on 1st September and provisional Fiis buy in cash rs.179crs source NSE website

Day That Ended: Market moved with AUTO-HEALTHCARE sector moving it 2% and BANEX-CAPITALGOODS-METALS-CONSUMERDURABLES supporting the rally, AUTO numbers posted was attractive and that boosted the market sentiment CEMENT numbers suggest a flat outlook and still more numbers to come. And Tarapore panel report says Five-year roadmap for fuller float, ban on participatory notes, and easier investments by foreigners & many more but will this be implemented is which no one can have a answer (read the report important for all investor). International markets U.S markets closed very positive and Indian ADRs ICICIBANK-DRREDDY-HDFCBANK gaining above 2.5% EURO market closed very positive and crude $69.19
Outlook for Monday: Market to open positive and move up stick to basics and as said before buy laggard of this rally slowly and add in very correction and I would keep my picks simple BEML-BHARTISHIPYARD-BIOCON-WOCKHARD-TVSMOTORS-WIPRO-TCS-ALOKTEX-EIDPARRY-HINDSANTIWARE-RAYMOND-GDL-GIPCL-HPCL-MANIND-MAHAVIRSPINNING-PUNJTRACTOR-PUNJLYOD and overall returns if it exceeds 25-30% in 4-6months It would be the best but Indian investor still are in the dream days of high returns. Crude is slowly coming down which would benefit many companies and one should add exposure in that.

STOCK TECH view: TVSMOTORS - breakout above rs.100 it has been in a accumlation range for a very long time and any breakout would give 15-20% within 15-20days also so one can have a stop loss at rs.93 and buy. http://prabhakar-views.blogspot.com many graphs uploaded on a regular basis please have a look.

Counter view: Divide Risk & avoid credit purchase: Many investor are holding Sugar sector stock or Real estate stock the important point is investor jus hold less than 4-5 stocks and the stocks are confined in 1-2 sector and they always run a big risk as there fortune turns with the rise and fall of these stocks and sector a investor should have minimum 25-30 stocks and 4-5% should be the allocation with some variation in single stock and spread around 8-12 sectors and in case u feel u have a small capital and what I told cant be practiced then my sincere advise would be put in bank deposit or in good scheme with mutual fund or else u would be running a risk of eroding u r capital. And this credit purchase is more dangerous than the above F&O & margin funding is what I mean by saying credit purchase & knowing credit business, when one person cash position is very good only he will get credit and when a creditor gets a feeling u will struggle to pay back, then credit will be cut off within minutes and this is world philosophy so when u struggle the credit doesn’t really help. We would take a example of NIFTY FUT which is the bench mark I am unaware of exact margin requirement we keep rs.34, 000 for one lot, a 10% fall wipes out your entire capital what if the fall continues to 30% 1, 02,000.rs and all these happens in jus matter of few days it never gives time to think and pressure to pay mark to market margin and many other pressures make your presence of mind absent and more mistake are made. Jus think how many times this margin issue has surfaced in past 6month do a small investor need this these are for big investor and FIIs ((Never go on margin until you have mastered the market, charts and your emotions. Margin can wipe you out)). To end I would ask margin funding is done by broking house and they have team of research and give calls instead of giving u money & calls they can do it for themselves and earn more money why is that they give u please think.

NEWS:
Voltas Company, which is under the Tata Group, has won an electro-mechanical contract worth about Rs 495 crore for the Bahrain City Centre, one of the biggest electro-mechanical projects ever undertaken in the Gulf state. (BS)
TVS Motor today reported a 39% increase in motorcycle sales during August as compared to the same month last year. (BS)
Tata Motors Ltd. said on Friday vehicle sales rose 26 percent in August to 45,681 units from 36,205 units a year earlier. (ET)
Prithvi Information Solutions, a Hyderabad-based technology company, has said that it has lined up 4-5 overseas acquisitions of $10-20 million each. (BL)
Strides Arcolab, an exporter of branded generic pharmaceutical products, has acquired Drug Houses of Australia (Asia), Singapore (DHA) from Haw Par Healthcare of Singapore for $12 million (around Rs 56.4 crore). The Singapore-based subsidiary of Strides will be the investment vehicle for the proposed acquisition. (BS)


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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.business-standard.com/bsonline/storypage.php?leftnm=11&bKeyFlag=IN&autono=5020 India in top 10 developing nations' list: UN report.
http://www.business-standard.com/bsonline/storypage.php?leftnm=11&bKeyFlag=IN&autono=5027
http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=5035 United Western Bank placed under moratorium
http://www.financialexpress.com/fe_full_story.php?content_id=139194 Chinese threat pulls down steel prices