Global Markets update 16/02/2010

DJIA Down 45.05 (0.44%) NSDQ Up 6.12 (0.28%) FTSE 100 +25.02 (0.49%) Asian Markets as on 8.30 AM NIKKEI +47.04 (0.47%) SGX NIFTY 20

Markets opened 16/02/2010

Markets opened on a flat note and traded with negative bias throughout the day to close in the negative territory

on lower volumes. The coming trading session is expected to trade sideways. Bullish pivot level for the day is

16135/4825, while the bearish pivot level is 16010/4780. If the market trades convincingly above 16135/4825

levels, then it is likely to test 16230 – 16275/4850-4870 levels. On the down side below 16010/4780 indices may

test 15890 – 15765 /4750-4710 levels.

Markets opened on a positive 11/02/2010

Markets opened on a positive note, but were unable to sustain the gains as selling emerged at higher levels and
dragged the indices to close near days low. On the daily charts, Nifty (futures), the gap down area, which is at
4824, has acted as a strong resistance where selling was witnessed. In the coming trading session if indices
trade convincingly below 15890 / 4740 levels then it is likely to test 15754 / 4700 levels or even the prior low of
15651 /4675 .On the flip side the upward momentum would resume only if indices trade above 16141 / 4830
levels.

BANKNIFTY SUPPORT 08/02/2010

BANKNIFTY Support 1 8195.92

Support 1 8230.83

Pivot Point 8259.92

Resistance 1 8294.83

Resistance 2 8323.92

NIFTY SUPPORT 08/02/2010

NIFTY Support 1 4703.25

Support 1 4726.3

Pivot Point 4748.05

Resistance 1 4771.1

Resistance 2 4792.85

Markets witnessed a gap down05/02/2010

Markets witnessed a gap down opening, in the wake of weak global cues and selling intensified in the later half of

the session, which led the indices to close near days low. On the daily chart, we are witnessing that for last four

trading sessions indices have remained stuck in the range of 16129 / 4800 on the downside and 16552 / 4950 on

the upside. Now a decisive breakout or a breakdown on either side would indicate the direction of the trend. If

indices trade below 16129 / 4800 levels then it is likely to test the prior low of 15982 /4766 and 15832 / 4700

levels. On the flip side 16552 / 4950 remains an important resistance levels and any breakout above those levels

only would certify further upside momentum. opening, in the wake of weak global cues and selling intensified in the later half of

the session, which led the indices to close near days low. On the daily chart, we are witnessing that for last four

trading sessions indices have remained stuck in the range of 16129 / 4800 on the downside and 16552 / 4950 on

the upside. Now a decisive breakout or a breakdown on either side would indicate the direction of the trend. If

indices trade below 16129 / 4800 levels then it is likely to test the prior low of 15982 /4766 and 15832 / 4700

levels. On the flip side 16552 / 4950 remains an important resistance levels and any breakout above those levels

only would certify further upside momentum.

IDBI TARGET 04/02/2010

IDBI has immediate support around 116-117 levels

and some long formation around these level was

seen in last trading session. Advisable to buy on

dips with the price target of 127

BANKNIFTY SUPPORT 04/02/2010

BANKNIFTY Support 1 8381.12

Support 1 8497.23

Pivot Point 8576.12

Resistance 1 8692.23

Resistance 2 8771.12

NIFTY SUPPORT 04/02/2010

NIFTY Support 1 4801.33

Support 1 4863.57

Pivot Point 4906.73

Resistance 1 4968.97

Resistance 2 5012.13

Indian ADRs Update 04/02/2010

Indian ADRs Update : INFOSYS Up0.13 (0.24%), WIPRO Up0.23 (1.11%), SATYAM Up0.07 (1.39%), ICICI BANK Up1.19 (3.32%), HDFC BANK Up1.23 (1.02%), MTNL Up0.03 (0.96%)

Indian ADRs Update 03/02/2010

Indian ADRs Update : INFOSYS Up0.21 (0.40%), WIPRO Down 0.32 (1.52%) , SATYAM Up0.03 (0.60%), ICICI BANK Down 0.14 (0.39%) , HDFC BANK Up0.73 (0.61%), MTNL Down 0.07 (2.20%)

Global Markets update 03/02/2010

Global Markets update: DJIA Up 111.32 (1.09%) NSDQ Up 18.86 (0.87%) FTSE 100 +35.90 (0.68%) Asian Markets as on 8.30 AM NIKKEI +29.51 (0.28%) HANG SENG +73.67 (0.36%) SGX NIFTY 27

CAIRN has support zone

CAIRN has support zone around Rs. 255-260. Due

to short covering positive move can be expected.

Dips around Rs. 260 can be used to go long, with

the target of Rs.280.

INFOSYSTCH GOOD AMOUNT

INFOSYSTCH has good amount of short positions,

and yesterday, we have seen buying interest in the

stock in the last half an hour trading. We are

expecting a positive move in this counter due to

short covering. Thus, advisable to trade with

positive bias.

we reiterate our view 03/02/2010

we reiterate our view

that indices are likely to test 16640 – 16840 / 4970 – 5030 levels in the coming trading sessions. On the down

side 16160 / 4825 may act as support for the day.

Markets opened on a negative note 03/02/2010

Markets opened on a negative note and recovered from the day’s low to close in the positive territory. In the

previous daily report we had mentioned about the bullish “Hammer” pattern formation on the daily charts.

Considering the fact that the Nifty has managed to close above the high of the “Hammer”, we reiterate our view

that indices are likely to test 16640 – 16840 / 4970 – 5030 levels in the coming trading sessions. On the down

side 16160 / 4825 may act as support for the day.

Markets staged smart recovery 01/02/2010

Markets staged smart recovery from the days low to close in the positive territory. On the daily chart we are

witnessing a bullish “Hammer” pattern at an important support levels(as shown in the chart).The low of the

hammer 15982 / 4766 will now act as support for the markets. Hence if indices trade convincingly above 16390 /

4894 levels, then indices are likely to test 16640 – 16840 / 4970 – 5030 levels. Since the intermediate trend is

down, markets may witness selling around these levels. Only a daily close above 16880 / 5035 will warrant a

review of the negative sentiments. On the flip side if the low of the hammer, 15982 / 4766, is breached then we

may witness continuation of down trend and indices may test 15800 – 15620 / 4700 – 4650 levels.

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.