Nifty opened level 29/01/2010

Nifty open in green
with the support of
positive overall
cues. However, the traded
rather volatile in
current session,
when it broke yesterday
nadir of 4833, but bounced
back. The
index has a
positive close daily
After six days of
consecutive lower lows,
signaling that there is
probability
of a pullback in wave iv
up which will be 23.6 --
38.2%
retracement of the decline
5293 to 4825. The
volumes
increasing days
days with falling prices,
clear
shows that
trend is reversed.
Although a pullback
expected, we reserve
Our bias as it will
Just one
dead cat bounce after
that wave V is
result, which
Nifty below will
4825 level

Grasim Industries27/01/2010

Grasim Industries (Grasim) reported a consolidated robust 3QFY2010
bottom-line performance on the front (by 55.7% yoy), driven by a
outstanding performance by its VSF business. The VSF division are posted
highest ever volume of 81,300 MT and also recorded an OPM of 41.8%,
resulting in a 536% increase in operating profit Rs403.7cr (Rs63.5cr). The
cement business clocked a healthy 19% growth in operating profit, on
account of higher volumes and lower energy prices. The company net profit
grew by 55.7% to Rs715.5cr (Rs459.6cr) during the quarter. After the results,
We have revised our EPS estimates for FY2010E up from Rs309 to Rs336.
The stock trades at a P / E of 7.9x and an EV / EBITDA of 4.5x, according
its FY2012E estimates. We upgrade the stock to accumulate from Neutral

Stellar performance in the VSF business drives bottom-line growth: During
3QFY2010, the VSF's Top-line business grew by 71% to Rs962.4cr
(Rs563.9cr), helped by a 51% growth in revenue and a 13% growth in
realization of Rs109, 600 per tonne. The cement's top-line business grew
7% to RS3, 635cr. Grasim reported a robust 44% growth in operating profit
RS1, 440cr, while net profit rose 55.7% to Rs715.5cr (Rs459.6cr).

Outlook and Valuation: The stock trades at a P / E of 7.9x and a
EV / EBITDA of 4.5x, in its FY2012E estimates. We appreciated the
60.3% stake in Ultra Tech company (after splitting Samruddhi) on a
an average of EV / tonne of U.S. $ 105/Tonne and an EV / EBITDA of 6.5x
FY2012E, after deduction of 15% holding company discount to arrive at a value
of RS1, 670/share. We arrived at a value of Rs623/share for Grasim
direct shareholder participation in Ultratech (after split). We appreciated the
VSF business at 5x EV / EBITDA, which is a P / BV of 1.75x on a FY2012E
basis. Hence our SOTP fair value for Grasim working on RS2, 861. We
an upgrade of the building stock to Neutral

Markets witnessed 22/01/2010

Markets witnessed sharp selling after breaking the support levels of 17256 / 5170, which was mentioned in our

previous daily report, and dragged the indices to close at the lowest point of the day. On the daily chart, we are

witnessing that prices have moved closer towards the upward slopping trendline joining the two lows of 13219

and 15330 / 4538 and 3918 levels. If this trendline is broken, then we could witness further weakness and

indices could test 16892 – 16734 / 5045 -4998 levels. On the flip side if prices stays above the trendline then a

bounce up to 17241 – 17307 – 5150 – 5170 cannot be ruled out. Since, indices have breached 17256 / 5170

levels the momentum on the upside has lost steam.

Markets opened 21/01/2010

Markets opened on a flat note, traded in a narrow range amidst volatility to close marginally in red. Broadly,

indices are trading in the range of 17276 / 5170 on the downside and 17712 / 5293 on the higher side and there

are no clear patterns on the charts that suggest a breakdown or a breakout from the above range. Hence, we

reiterate our view that the immediate swing low, which is at 17276 / 5170 level, is the major support for the

markets. In the event of indices violating these levels, then we may witness further weakness to 17184 / 5130

levels. However, on the upside 17650 – 17700 / 5280 – 5293 levels may act as resistance for the day.

Markets opened 20/01/2010

Markets opened on a flat note, and witnessed selling in the latter half of the session, which dragged the indices to close in the negative territory. On the daily charts, the immediate swing low, which is at 17276 / 5170 level, is major support for the markets. If indices break these levels then we could witness further weakness and indices are likely to test 17184 / 5130 levels. However, on the upside 17650 – 17700 / 5280 – 5293 levels may act as resistance for the day.

Markets witnessed gap down opening 19/01/2010

Markets witnessed gap down opening, but improved as the day progressed which led the indices to close on a

positive note. On the daily chart ,the momentum indicators are still positively poised and this suggests

continuation of upmove.On the upside if indices convincingly trade above 17713 / 5293 levels then it is likely to

test 17822 -17932 / 5329 -5365 levels. On the downside 17490 - 17400 / 5230 – 5200 levels may act as support

for the day. On the sectorial front Midcap banking sector is looking positive on the charts and suggests further

upside.

Markets displayed range 18/01/2010

Markets displayed range bound activity, leading the indices to close on a flat note. On the daily chart, we are

witnessing narrow range body for second consecutive trading session, which clearly indicates indecisiveness

prevailing at current levels. On the upside if indices trade convincingly above 17640 / 5280 level then it is likely

to test 17730 – 17800 / 5300 – 5330 levels .On the downside indices have support at 17400 – 17327 / 5200 –

5170 levels.

Traders are advised to exit their long positions if indices breach 17276 / 5170 levels.

Indian ADRs Update 18/01/2010

INFOSYS Down 0.81 (1.38%) , WIPRO Up0.10 (0.45%), SATYAM Down 0.09 (1.51%) , ICICI BANK Down 0.50 (1.36%) , HDFC BANK Down 1.22 (0.94%) , MTNL Up0.03 (0.82%)

Global Markets update 18/01/2010

DJIA Down 100.90 (0.94%) NSDQ Down 28.75 (1.24%) FTSE 100 -42.83 (-0.78%) Asian Markets as on 8.30 AM NIKKEI -201.07 (-1.83%) HANG SENG -265.20 (-1.22%) SGX NIFTY -30

BANKNIFTY SUPPORT 14/01/2010

BANKNIFTY Support 1 8800.5

Support 1 8874.3

Pivot Point 8917.1

Resistance 1 8990.9

Resistance 2 9033.7

NIFTY SUPPORT 14/01/2010

NIFTY Support 1 5150.2

Support 1 5196.6

Pivot Point 5222.5

Resistance 1 5268.9

Resistance 2 5294.8

Global Markets update 14/01/2010

DJIA Up 53.51 (0.50%) NSDQ Up 25.59 (1.12%) FTSE 100 -25.23 (-0.46%) Asian Markets as on 8.30 AM NIKKEI +108.99 (1.02%) HANG SENG +154.49 (0.71%) SGX NIFTY 14

FII Data 13/01/2010

FII Data: Net Index Futures (-504.56), Net Stock Futures (-564.69), Derivative Market: Total Open Interest (Rs 103361 cr), Stock Futures Open Interest (Rs 32961 cr)

Last message received on 1/13 at 8:52 AM

milan kanabar: Markets were unable to sustain early hour gains, which pulled the

Indian ADRs Update 13/01/2010

INFOSYS Up2.82 (5.14%), WIPRO Up1.25 (5.64%), SATYAM Up0.07 (1.29%), ICICI BANK Down 1.62 (4.29%) , HDFC BANK Down 6.98 (5.17%) , MTNL Down 0.19 (5.05%)

Global Markets update 13/01/2010

DJIA Down 36.73 (0.34%) NSDQ Down 30.10 (1.30%) FTSE 100 -39.36 (-0.71%) Asian Markets as on 8.30 AM NIKKEI -97.22 (-0.89%) HANG SENG -362.26 (-1.62%) SGX NIFTY -29

Markets were unable13/01/2010

Markets were unable to sustain early hour gains, which pulled the indices to close in the negative territory. The coming trading session is likely to trade with negative bias. On the downside if indices trade below 17392 / 5200 levels then it is likely to test 17312 – 17168 / 5170 – 5126 levels. On the upside, 17528 – 17600 / 5245 – 5272 levels may act as resistance for the day. The intermediate trend is still up. The multiple resistance breakout point of 17168 / 5170 is now likely to act as a support for the markets

Markets opened 12/01/2010

Markets were unable to sustain higher levels, despite having a gap up opening. On the daily charts, we are

witnessing a range bound activity and there is no clear pattern that suggests a trend. On the upside if indices

trade convincingly above 17777 / 5287 levels then it is likely to test 17880 – 17980 / 5315 – 5343levels. On the

downside 17500 – 17322 / 5200 – 5160 may act as support for the day.

News Analysis

䀂Cement demand picks up in AP

䀂TVS Motor hopes to ride on Jive, Wego for growth

䀂Infosys 3QFY10 Result Preview

milan kanabar: Economic and Political News

䀂Aska Cooperative to pay Rs1,700 per tonne to sugarcane farmers

䀂Govt may extend white sugar import deadline

䀂Environment panel to look into green nod for power projects

䀂Bonds yields may ease

Corporate News

䀂Ministry plans special SAIL arm for overseas buys

䀂L&T plans 6,500 Mw power generation capacity in 4 yrs

䀂Nalco to get Potangi bauxite mining lease

䀂Speciality Restaurants plans Rs150cr expansion

䀂M&M to launch motorcycle this year

RELIANCE INDS

RELIANCE INDS. (1103) - BULLISH

The Call was flashed on Odin terminal dated 7th JAN, 2010

Buying Range : Rs. 1112.00 - Rs. 1100.00

Stop - loss : RS. 1058.00

Target : Rs. 1240.00

Time frame : 5 - 6 weeks.

Reliance Inds: The stock has given a trendline breakout with

rising volumes on the weekly charts. Further, RSI and the

stochastic oscillators are positively poised. This suggests further

upside in the coming weeks.

RELIANCE CAPITAL

RELIANCE CAPITAL (905) - BULLISH

The Call was flashed on Odin terminal dated 8th JAN, 2010

Buying Range : Rs. 910.00 - Rs. 900.00

Stop - loss : Rs. 865.00

Target : Rs. 1030.00

Time frame : 4 - 6 weeks.

Reliance Capital: The stock is witnessing an upward

momentum with rising volumes on the weekly charts. Further,

ADX has given a positive crossover and momentum oscillators

viz. RSI and the stochastic are positively poised. This suggests

breakout from the Triangular Pattern in coming weeks.

milan kanabar: Short-term Picks

JYOTI STRUCTURES

JYOTI STRUCTURES (185) - BULLISH

The Call was flashed on Odin terminal dated 7th JAN, 2010

Buying Range : Rs. 174.00 - Rs. 170.00

Stop - loss : RS. 161.50

Target : Rs. 212.00

Time frame : 4 - 6 weeks.

Jyoti Structures: The stock has given the trendline breakout

with rising volumes on the weekly charts. . Further, RSI and the

Stochastic oscillators are positively poised. This suggests further

upside in the coming weeks.

Indian ADRs Update 11/01/2010

INFOSYS Up0.14 (0.26%), WIPRO Up0.19 (0.86%), SATYAM Up0.22 (4.25%), ICICI BANK Down 0.80 (2.07%) , HDFC BANK Up0.41 (0.30%), MTNL Down 0.07 (1.92%)

Global Markets update 11/01/2010

DJIA Up 11.33 (0.11%) NSDQ Up 17.12 (0.74%) FTSE 100 +7.52 (0.14%) Asian Markets as on 8.30 AM NIKKEI +116.66 (1.09%) HANG SENG +262.11 (1.18%) SGX NIFTY 14.5

Markets for the second11/01/2010

Markets for the second consecutive trading session was unable to sustain higher levels as profit booking dragged the indicies to close in red. The coming trading session is likely to witness some consolidation / correction. On the downside if indices trade convincingly below 17509 / 5235 levels then it is likely to test 17400 – 17330 / 5210 – 5185 levels. On the upside 17620 - 17720 /5270 - 5294 levels may act as the resistance for the day

BANKNIFTY SUPPORT 08/01/2010

BANKNIFTY Support 1 9100.55

Support 1 9139.6

Pivot Point 9177.3

Resistance 1 9216.35

Resistance 2 9254.05

NIFTY SUPPORT 08/01/2010

NIFTY Support 1 5220.32

Support 1 5243.33

Pivot Point 5268.17

Resistance 1 5291.18

Resistance 2 5316.02

Markets opened 08/01/2010

Markets opened on a flat note ,traded with negative bias throughout the day to close in the negative territory. On the daily charts , we are witnessing a bearish Evening star candlestick pattern .The highest high of the three candlestick i.e 17790 / 5310 levels would now act as the near term resistance for the markets. On the downside if indices trade convincingly below 17567 / 5245 levels then it is likely to test 17334 – 17188 / 5177 – 5133 levels, where the markets are expected to take support, as the intermediate bullish trend remains intact.

Markets opened07/01/2010

Markets opened on a positive note, but were unable to sustain higher levels which pulled the indices to close on

a flat note. On the daily charts, we are witnessing a doji formation which shows that supply and demand are

evenly balanced in the market. There are no apparent signs of weakness on the charts. On the upside if indices

trade convincingly above 17791 / 5311 levels then it is likely to test 17930 - 17990 / 5360 - 5380 levels. On the

downside 17630 – 17584 / 5255 – 5238 may act as support for the day. Stock specific activity mainly in Midcap

and Small cap is likely to continue.

Global Markets update07/01/2010

DJIA Up 1.66 (0.02%) NSDQ Down 7.62 (0.33%) FTSE 100 +7.54 (0.14%) Asian Markets as on 8.30 AM NIKKEI +7.09 (0.07%) HANG SENG -12.30 (-0.05%) SGX NIFTY 0

Global Markets update 06/01/2010

DJIA Down 11.94 (0.11%) NSDQ Up 0.29 (0.01%) FTSE 100 +22.16 (0.40%) Asian Markets as on 8.30 AM NIKKEI +44.30 (0.41%) HANG SENG +112.81 (0.51%) SGX NIFTY 22

Market gapped up 06/01/2010

Market gapped up, traded in a narrow range throughout the day to close in the positive territory. The coming trading session is likely to trade with positive bias. On the upside if indices trade convincingly above 17730 / 5290 levels then it is likely to test 17830 – 17950 / 5320 – 5360 levels. On the downside 17590 – 17550 / 5244 – 5229 may act as support for the day. Since we are approaching the major resistance levels of 17800 -17960 / 5300 -5360, traders who have gone long at lower levels are advised to book partial profits in the range of the above mentioned resistance levels.

BANKNIFTY SUPPORT 05.01.10

BANKNIFTY Support 1 8978.42

Support 1 9045.83

Pivot Point 9092.42

Resistance 1 9159.83

Resistance 2 9206.42

NIFTY SUPPORT 05.01.10

NIFTY Support 1 5195.27

Support 1 5217.53

Pivot Point 5232.27

Resistance 1 5254.53

Resistance 2 5269.27

Market opened 05/01/2010

Market opened on a flat note, traded in the positive territory throughout the day to close near day’s high. The coming trading session is likely to trade with positive bias. If indices trade convincingly above 17583 / 5239 levels then it may test 17620 – 17680 / 5300 – 5320 levels .On the downside 17490 – 17410 / 5200 - 5160 levels may act as a support for the day

Global Markets update05/01/2010

DJIA Up 155.91 (1.50%) NSDQ Up 39.27 (1.73%) FTSE 100 +87.46 (1.62%) Asian Markets as on 8.30 AM NIKKEI +101.63 (0.95%) HANG SENG +315.51 (1.45%) SGX NIFTY 53.5

Indian ADRs Update 05/01/2010

INFOSYS Up1.49 (2.70%), WIPRO Up0.35 (1.57%), SATYAM Up0.19 (4.12%), ICICI BANK Up1.05 (2.78%), HDFC BANK Up3.38 (2.60%), MTNL Up0.23 (7.49%)