Daily Report November 7th Tuesday

Nifty (3809) SUPPORT-3787-3765-3733 RESISTANCE-3827-3848-3870 Nifty range 3801-3848 breaking 3801 only we can have an intraday correction were strong support would come at 3787-3765 & possible one day correction where one can add in panic towards the close. TOP 5GAINERS=GLAXO-HINDLEVER-GUJAMBCEM-ZEETELE-HDFC TOP5LOSER=-HINDPETRO-ORIENTBANK-BPCL-MARUTI-ONGC. P/E=20.39 p/b=4.92 adv=22 dec=28 NSE adv: 498 dec: 437 -vol-rs.7752crs

Sensex (13186) SUPPORT-13104-13037-12952 RESISTANCE-13276-13352-13441 Sensex is moving up and new high is maintained, and sensex seems to head towards 13441 and above before we can think about any short term correction.
8dma=13004 13dma=12898 21dma=12772 34dma=12574 55dma=12248 OPEN=13155 HIGH=13206 LOW=13111 BSE adv: 1415 dec: 1131 -vol-rs.4264crs
Fiis buyer rs.227 crs & Mutual funds buyer rs.77crs on Friday, Fiis buyer rs.1058crs in Nov month and buyer rs.31855Crs in 2006, mutual fund rs.568crs Updated in Nov month. F&O DATA Fiis sell rs.30crs in nifty future and buy rs.36 crs in stock future on 6th November and provisional Fiis buy in cash rs.221crs source NSE website

Day That Ended: Markets opened higher and was in a very narrow range and news of Govt considering cut in fuel prices made people book profits in Oil PSU stocks while FMCG & METALS where the sectoral index gainers. And views expressed by PSU bankers with FM feel commercial real estates and personal loans will cost more and pressure on NIM-net interest margin is there as credit growth is at 30% which is not supported by deposit growth which is at 20% & FM also stressed the need to increase the deposit growth. International markets U.S markets had a very positive day with DJIA+1% NASDAQ+1.51% Indian ADRs closed positive EURO markets & other American markets were also very positive ASIAN markets has opened on a positive note Crude $ 60.15.

Outlook for Tuesday: Positive open with all global markets very positive TECH major would should good positive day PHARMA & BANKS should see some profit booking at higher levels. METALS are looking good and with TATASTEEL & CORUS deal likely to go through which is indicated by the management now after media has reported should see some sustained upmove. LOGISTICS sector would be major beneficiary if fuel prices are cut as they were not able to pass on the full fuel price hike when last done GDL-AEGIS-GATI would be few good picks in that sector.

Intraday trading idea:
GDL: Buy rs.173 Target rs.182-185 SL-rs.171 (if SL is not hit can extend duration)
GATI: Buy rs.91 target rs.96-97.5 SL-rs.89.50


WEEKLY stock: http://prabhakar-views.blogspot.com TATAMOTORS: rs.816 is the close and at rs.808-809 it has marked a double bottom & the stock has tradinally faced resistance at rs.800 levels and that would be a strong support now but weekly traders can have a SL-805 and Buy around rs.812-817 for a target of rs.845-855 which has a good risk to reward ratio.
http://in.groups.yahoo.com/group/prabhakar-views/join

Counter View: Labour Union & communist Policy
It is important to take a perspective of the Left Parties in India.
The main strength of left parties is their support for the workers and labor of India. However one must understand whether this is still relevant today as it was when the trade unions were first started.

Trade or Labour unions was started in London, UK, in an age when workers where uneducated and exploited by employers. These workers were paid extremely low wages and were overworked. Lacks of education, overbearing employers were factors that make unions necessary. Today, with improved education standards and access to information resources, labor unions are losing their significance.
Further, the world has accepted capitalism and thus the Hire & Fire policy. However, standards have improved at work and culture. If one looks deep at the attrition rate these days, it is mainly due to job switching by employees rather than retrenchment and VRS. Salaries are fixed after negotiation and minimum wage laws ensure that a set standard is maintained at the bottom.

Recently, there was a statement by the Left parties to stop incentives to higher-ranking officials of Oil PSUs along with a demand for trade unions for BPO workers. However, I feel this would have far-reaching negative effects and the statement by the Left was made without thinking. In today's competitive environment if a Govt PSU is not going to pay higher it would face exodus of employees and in BPO sector already non-voice jobs are starting to flow to Philippines. When a communist country like China can have a flexible labour policy, it is amazing that political bosses who have failed to create enough jobs themselves would want to make statement. If the Left cannot do good then it should refrain from destabilizing any good that is happening without its intervention.

Now we have to read a small story http://www.online-literature.com/orwell/animalfarm/ this story of George Orwell Animal Farm (1945) - satirical allegory of the Russian Revolution, particularly directed against Stalin's Russia. After you read this, you will understand why Communist Russia failed, whereas China, another Communist nation, was fast in changing its strategy and growing with great vision.

Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.
http://www.ndtvprofit.com/homepage/storybusiness.asp?id=34503&template commercial real estates and personal loans might cost more in the near future.

http://www.ndtvprofit.com/homepage/storybusiness.asp?id=34500&template Govt considering cut in fuel prices: Deora
http://business-standard.com/common/storypage_c.php?leftnm=10&autono=263773 Tata Steel
http://business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=IN&autono=17192 FM wants banks to beef up deposits
http://business-standard.com/common/storypage_c.php?leftnm=10&autono=263958
http://news.monstersandcritics.com/india/article_1218920.php/Corus_deal_to_be_completed_by_January_Tata_Steel Tata Steel Monday said it had received 'positive' feedback from the shareholders of Anglo-Dutch steel manufacturer Corus Steel

Deora says the retail selling prices of LPG would have to be raised by Rs 150 per cylinder and PDS kerosene by Rs 14 per liter to bring them at par with cost of production.