ter englih issue 19 yr 3

8/9/2019 Ter Englih Issue 19 Yr 3.

1/18

Vol. 3 Issue : 19 Date : 04-07-2010 to 11-07-2010 Editor : Narendra Joshi Sub.Editor : Sharad Kotak Mobile:9825065387 Address : 115/991, Nirmal Apartment, Telephone Exchange Road, Naranpura, Ahmedabad -380013 Phone : 27451449

RATE HIKE, FINALLYRATE HIKE, FINALLYRATE HIKE, FINALLYRATE HIKE, FINALLYRATE HIKE, FINALLY 03/07/2010.RBI HIKES REPO,

REVERSE REPO.In a delayed but

expected move, RBIfinally acted and raisedthe Repo and ReverseRepo rate by 25bpseach. CRR was leftuntouched as therewas liquidity tightnessin the market. The ratehike was expected

since the past twoweeks. This time theRBI was behind thecurve in reacting to the

economic situation.This rate hike was acalibrated move as onecan expect furtherinterest rate hike of25bps in credit policymeet in the last weekof July. RBI has shiftedfocus on controllinginflation withouthurting growth as theinflation was reachingvery high levels. The

inflation wouldincrease further due tothe fuel price hike inthe last week and not

to forget strong IIPnumbers. RBI is nowmore worried aboutthe upside risk to

inflation thandownside risk togrowth.

RNRL - RPOWER TOMERGE.

Just as the marketclosed on Friday, came

the announcement tomerge RNRL withReliance Power. The

merger was expectedsince the SupremeCourt judgement andnow it is happening.The board meeting isfixed on Sunday 4th July2010. The merger isnecessary for easiergas allocation. Themarket is interested infinding what will beswap ratio for themerger. If one goes

according to bookvalue, the merger ratiowill be around 1:5 in

favour of ReliancPower. But then whawill be the final mergeratio will be anybodyguess.

T E C H N I C A L L YSPEAKING.

The Sensex openedthe week at 17577made a high of17794a low of 17373 andclosed the week a17460. The Sense

gained lost 114 pointon a weekly basisSimilarly Nifty opened

Continue on ........7

Technical Analysis

for Traderswww.stockacademy.co.inMo. No. 09820920530

Sanjay Lad, (Mumbai)

WeeklyReview

PRAKASH GABACFT, MSTA (Londen)A professional Technical Analyst and aTrader based in Bombay & Runs his ownconsultancy http:// www.prakashgaba.comEmail:[email protected] : 093222-10907

Weekly Review for theWeek July 5th to 9th 2010

Nifty: (5237)Sensex: (17461)2.07.10We said The new

series has started on a

negative note and hastraded below thecrucial level of 5328and the crucial level towatch would still be5328 and I would saythat the market is weak

as long as it tradesbelow 5328

The marketunfolded weak asexpected and has

closed in the red forthe week.

Technically theweakness continuesand there is no sign ofstrength witnessed as

Continue on .....8

Continue on .....8 Continue on .....8

StochasticsLike the Relative

Strength Index (RSI),stochastics is anotherpopularoscillatort ogaugep r i c e

momentuma n d judgethe age of a pricemove.

But unlike the RSI,which measuresmomentum based onthe changes in dailysettlement prices,stochastics has twolines and thecalculations are basedon the rate of changein the daily high, low,and close.

Concept forstochastics is that asprices move higher,

t h ed a i l ycloseswill becloser

to thehigh oft h e

daily range. Thereverse is true indowntrends. As prices

A.K.Prabhakar

Website: [email protected]

[email protected]

Equity Analyst

NegNegNegNegNegaaaaative for Btive for Btive for Btive for Btive for BANKS &ANKS &ANKS &ANKS &ANKS &

AAAAAUTUTUTUTUTO follO follO follO follO follooooows with RBIws with RBIws with RBIws with RBIws with RBI

rararararate hike after fuel hikete hike after fuel hikete hike after fuel hikete hike after fuel hikete hike after fuel hike

Nifty has closedNegative -31pointsa f t e rf o r m i n gGravestoneD o j iprevious

w e e kwith longt e r mm o v i n gaverage supportingmarket 200DMA which5076 and 100DMA is

5131 without closbelow 5170 weaknes

not seen it is rangbound and Nifty failin

3

Astromoney guru

MAHINDRA AND

MAHINDRA FOR MID

TERM PICK5

Outlook

MARKET IS EXPECTED TOCONSOLIDATE FOR SOME

TIME BEFORE NEXT UPMOVE

9

Market Priview

CAN WE SEEBREAKOUT IN THISMONTH ABOVE 5400

0R BREAK 5150

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2/18

04-07-2010 to 11-07-20102

progress of monsoon willdecide the trend

Technical indicators of major StocksMFI=Money Flow Index * RSI=Relative Strength IndexADX=Directional Momentum Index

SUBSCRIBE TER, A MULTY ANALYST WEEKLYTO GET SUNDAY MIDNIGNT, SUBSCRIPTION IS ONLY RS. 1000 PER YEAR

BSE Sensex (17460.95) and Nifty (5237.10) closed down0.60% and 0.61% down respectively last week.Nifty Fu-ture July was quoting at 6.90 points premium..Nifty CallOption July 5300 was very active.Support for Sensex is at17290. Resistance for Sensex is at 17710 .Support for Niftyis at 5180 and resistance at 5310.

RBI is likely to review the monetary policy on 27th July2010.Initial public offer of Hindustan Media Ventures openson 5th July 2010 with price band of 162-175 Rs. Per share.

Tata Steel and RNRL added Open Interest inJuly series.Huge position was build up at RPower July CallOption Strike Price 180.Good build up was also seen atSuzlon July Call Option Strike Price 60.

Strategy for Futures Option players.1)Ranbaxy(456.05) Lot Size-500 Shares

Buy One Call Option of July Strike Price [email protected] RsSell One Call Option of July Strike Price [email protected] Rs.Premium .Paid=14.50*500= 7250.00.00 Rs.Premium Received=6.60*500= 3300.00 Rs.Net Premium Paid==7250.00-3300.00=3950.00 Rs.Maximum Profit==480-460==20*500=10000.00-

3950.00=6050.00 Rs.Maximum Loss= 3950.00 Rs.Break Even Price=467.902)Chambal Fertilizer(67.55) July Future-Lot Size

4000 shares.Buy One Lot July Future @67.55Sell One Call Option of July Strike Price [email protected] Rs.Premium Received=1.55*4000= 6200.00 RsMaximum Profit=70.00-67.55=2.45*4000=9800.00+

6200.00=16000.00 Rs. Max Loss=Unlimited.Trading Idea

1)Nagarjuna Fertilizer(33.00)Buy this stock in declineand trade.

2)Voltas(201.95) Buy this stock in decline and trade

TREND OF MAJOR STOCKSSTOCK TREND NO OF Weekly Monthly

DAYS Trend TrendBHEL.NS Bearish 2 Rising RisingICICIBANK.NS Bearish 7 Falling FallingINFOSYSTC.NS Bearish 4 Falling RisingITC.NS Bearish 1 Rising RisingMARUTI.NS Neutral 1 Rising RisingSBIN.NS Bearish 9 Falling Rising

TATASTEEL.NS Bearish 4 Rising FallingTCS.NS Bearish 8 Falling Falling

STOCK CLOSE MFI-21 RSI-14 ADX-14BHEL.NS 2391.9 65.67 48.97 13.61ICICIBANK.NS 840.05 66.49 43.7 18.74INFOSYSTC.NS 2727.5 61.16 49.41 18.6ITC.NS 302.55 80.25 62.51 23.72MARUTI.NS 1415.9 77.21 63.82 39.46SBIN.NS 2265.05 54.45 44.09 27.08TATASTEEL.NS 474.95 51.08 41.79 24.29TCS.NS 743.8 45.15 44.63 15.33

NIFTY SUTRA

Second -ve week, Slowly

Trend turning DOWNNifty - weekly close

5237 (5269) Marketopen pos i t ive onMonday and ag a inmanage to close above5300, but sel l ingt r ig g ered onTuesday withmark et c los ingbelow near ourw eek ly t rendpoint 5270.W e d n e s d a yw itness mutualfunds month-endral ly, again to closeabove 5300. Next twodays w i tness someprof i t book ing . Week

closes with loss of 30points. KDJ indicator onweekly chart is fal l ingfrom 78 to 58 , but below50 only i t wi l l conf irmlong term down trend.

20 % record rise in a dayis slowly absorbed duringyear long range boundphase of market. Interestadjusted Nifty is at 4625

(base Jan 2008 / 12%pa)around 25% lower than

2008 top.For Next week This

w eek mark et t rad ingrang e w i l l be betw een

Dinu's SAR -Trend and Stop-loss Table for Nifty -Investor Chart trade Beta Trend From Stop Gaintype type % lossDerivative Daily 20 (+1.2) DOWN 5300 5250 + 60Swing trade Weekly 20 (1-1.2) DOWN 5240 5240 + 0Short term Bi-weekly 20 (1) UP 5050 5210 + 180Medium term Monthly 20 (1-0.8) UP 5100 5210 + 130Mutual Fund Quarterly 10 (-0.8) UP 5000 5140/5270** + 230Long Term Yearly 10 (-0.8) UP 3670 4600/5120** +1560

(Daily stop-loss + close)/ 2 will give trader next days stop-loss and trend forNIFTY. Traders to exit below trigger** and re-enter trend at trigger** or lower level.

4940 5540 i.e. trendpoint of 5240, andweekly range with +/-300. 20 and 50 days EMAsupport for Nifty, which

are at 5230, 5180.Traders to exit theirlong pos i t ion atrespect ive t r ig g erlevels in fa l l . Re-enter t rade ag a inlater at t r ig g er orlow er level . ThusTrigger helped us toprotect , maximize

profit and hold position.NIFTY trend and its

beginning as per 20 SMAl ine d i rect ion on

different charts are asfo l low s:- 30 minut e DOWN, 5350; 90 minute- DOWN , 5300 ; Daily flat, 5000; Weekly UP,5000.

Wall street ends lowerThe Dow Jones lost 46

points, or 0.5% to 9686.48,

Nasdaq composite slipped

9 points, or 0.5% to 2091.79

while S&P 500 index dips

0.5% to 1022.58.

The main US indice

ended lower on Friday

following weaker-than

expected June jobs report

The Dow Jones lost 46

points, or 0.5% to 9686.48

Nasdaq slipped 9 points, o

0.5% to 2091.79 while S&500 index dipped 0.5% to

1022.58.

Asian markets wer

mixed, with Japan's Nikke

rising 0.1%, and Hon

Kong's Hang Seng fallin

1.1%.U.S. light crude o

for August delivery fell 8

cents to US$72.14 a barre

on the New York Mercan

tile Exchange.


3/18

04-07-2010 to 11-07-2010 3

Mahindra and Mahindra for mid term pickAs per Lt Col Ajay

www.astromoneyguru.comthis week isrepresented by Mars.This week twoimportant planet will

change their sign.Venus and Mercurywill change their signVenus from Karak toSingh and Mercury will

come in karak Rashi.Venus will make freshconjunction with Mars.

Our advancepredictions made inprevious article about

positive move in sugar,auto and oil and gassectors once againproved correct underheavy volatility oneside upward

movement was seen inthese sectors, BajajHindustan , Balrampurchini, Hpcl, oil India,ongc were among

weekly gainers listunder highestvolatility. Daily updatewas also given at myweb site beforemarket opening every

day.Now as per Astro

economics this week isgood for auto, capitalgoods and metal. It isbetter to keep eyes on

stock and sectorspecific approachrather then looking atnifty levels. Today weshall discussed aboutone of automobilefront line stockMahindra & MahindraLtd.

As per astroeconomics Mahindra &Mahindra wasincorporation year was1945. And Mr AnandMahindra is the keyperson of the

company. As perhoroscope ofMahindra andmahindra mercury,Sun, Jupiter and marsare the key planets.

Right now Mahindraand Mahindra stock istrading around Rs 610-620 In Indian stock

market. As per astroeconomics this stockwas shown Rs 645 as 52week high and low was

Rs 322. Sun will comein transit of Mahindraand mahindra in tenthhouse in month ofAugust- Sept 2010 thattime other planets will

mercury, Venus ,Saturn will be in Kanyaand tula Rashi. As perhoroscope of M & M

Rahu mahadassha, Sun

antradasha isin progress.Rahu is thei m p o r t a n tplanet for thish o r o s c o p e .When Rahuwill enter inScorpio thatwill beultimate timefor M&M.

This is the time to listMahindra andMahindra in Foreignstock exchanges. This

expected to take placeafter July 2011

This is time betterto keep eyes on thisstock for mid terminvestment. Timely

profit booking ialways recommendedfor short term tradingAs per stars monsoonwill approach iNorthern Indi

includes Rajasthan, UpMp, Himachal PradeshHaryana and Punjab. Aper stars this timsugarcane, rice, cottowill break previourecords. We have giveearly alert for 100%correct date oMonsoon in Mumbai iprevious articles well inadvance 30 days.

This week Geminwill be most benefitedrashi. Figure 5 and 5, 14and 23 dates are mos

favourable for GeminGreen emerald is thegem stone andWednesday andTuesday are the luckyday for Gemini.

FOR ACCURATE STOCK MARKET PREDICTIONS

http//www.astrostocktips.in

TEL NO9810018438- 9810056543

Ph: 98506 95994EMail: [email protected]

Web Blog : www.tanmaygopal.com

Tanmay GPurohit CFA

Hot Talk

IFCI near majorbreakout

NIFTY HAS CLOSEDSLIGHTLY NEGATIVEFOR THE WEEK 32POINTS DOWN AT

5237. THIS WEEK WASVERY RANGE-BOUNDMOVEMENT FOR THEINDICES AND CLEARTREND WAS NOTVISIBLE BUT SMALLAND MID CAP STOCKSOUTPERFORMED THEBROADER INDICES.

NIFTY AS LONG ASABOVE 5200 WOULDREMAIN FIRM BUTUNTIL CLOSE PAST 5400

IS NOTS E E NSLUGGISHNESSW I L LCONTINUE,R B IH I K I N GR E P OA N DREVERSE

REPO RATESWOULD HAVEN E G A T I V EIMPACT ONB A N K SWHICH AREL O O K I N GWEAK.

IFCI (RS56.75):- THE STOCK ISSHOWING A TRIANGLEFORMATION ONGRAPH IN WEEKLYCHARTS AND WOULDBE AN IMPORTANTBREAKOUT ABOVE RS59 WHERE TARGETS OFRS 65-68 ARE POSSIBLE

IN SHORT-TERM.BUY RS 56-57 FORTARGET RS 65, KEEPSTOPS BELOW RS 53.

GLOBUS SPIRITS (RS165.55):- THE STOCKHAS HAD A VERYGOOD RALLY AND

NOW CONSOLIDATINGIN A SMALL RANGE,ABOVE RS 175 STOCKCAN MOVE TOWARDSNEW HIGHS ONCEAGAIN AND RS 175-178IS POSSIBLE SOON.BUY RS 163-165 FORTARGET RS 175, KEEPSTOPS BELOW RS 159

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1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1

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1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1

Nifty

Sup. 5100

Market viewMarket is moving in narrow range. It is finding resistances at highe

side. But some front line stocks are in oversold region with respect toweekly chart.

Nifty viewNifty has support at 5200 & 5100 and resistance at 5360. If it break

5200 lower side then it is weak. Otherwise it is expected to remainrange bound.

Weekly calls1) ASHOK LEYLAND short sell around 64stop loss 65.50

target 59

2) BIOCON short sell 322 stop loss 330 target 305

3) IDBI buy around 119 stop loss 115 target 125128

4) BHEL short sell around 2420 stop loss 2460 target

2350..2300

5) GLAXO short sell around 2180 stop loss 2220 target 2100

6) SUZLON buy around 56 stop loss 52 target 65

7) IBREAL buy around 155/152 stop loss 148 target

170..175

VISIT : www.theeconomicrevolutiohn.com for latest infromation


4/18

04-07-2010 to 11-07-20104

TTTTTrrrrrend and Momentend and Momentend and Momentend and Momentend and MomentumumumumumThe ability to carry

out a simple Stock orIndex Trend Analysis isone of the most basicand important toolsused in Momentum

Trading. Master thisprocess and the key totrading Options

profitably is in your

hands. By the end ofthis page, you will havelearnt a simple process

of stock markettechnical analysis, andyou should be able toidentify whether boththe market and a stockis inclining up, down,or sideways. Many

times, you can eyeballthe chart and get theidea, but it does helpto have two or threeobjective measures.

You will need tolook at these threeindicators:

The balanceo f m o v i n gaverages (e.g. usingthe 5ema and the8ema) - shows

the direction of thetrend - up, down orsideways;

The Wilders DMI(ADX) - showsthe strength of the

momentumThe RSI - shows

when a reversal is

imminent;

If the 5 emais ABOVE the 8 ema,then you have

an uptrend. Thissimply means that overthe last five days, thestock has been tradinghigher than it has beentrading on averageover the last 8 days,

and soi sgenerallyheadingup. Thefurthera p a r tt h et r e n d

lines are, the strongerthe momentum.

If the 5 emais BELOW the 8 ema,then you havea downtrend . Thissimply means that overthe last five days, thestock has been tradinglower than it has beentrading on averageover the last 8 days,and so is generally

heading down. Thefurther apart the trendlines are, the strongerthe momentum.

Wilders DMI (ADX)- shows the strength of

a trendIf the ADX is above

30, the momentum is

strong, and is likely to

continue.If the ADX is below

20, the momentum isstarting toweaken.

R e l a t i v eStrength Index(RSI) - shows whena reversal isimminent

If the RSI isabove 70, themarket isgenerally thoughtto be overbought,and an upward

trend is likely to turndownward soon. Becareful about enteringa trade.

If the RSI is below30 , the market isgenerally thought tobe oversold , and adownward trend islikely to turn upwardsoon. Be careful aboutentering trade.

Trend FollowingMomentum Indicator

Many investors willtell you that your

potential for success inthe stock market iscompletely dependenton your grasp ofmarket pricemovements and theway that you exploityour sense of timing toresult in the highestprofits possible. Thisseems simple enough,simply buy stocks at thelowest price possible,

and sell them at thehighest price possiblebefore they headsouth again; howeverlike many things, it iseasier said than done.

If youre interested inperfecting your senseof timing, and learninghow to buy and sellstocks at just the rightmoment in the trend,its important for youto become familiarwith something calledMACD technicalanalysis.

MACD technicalanalysis stands forMoving AverageC o n v e r g e n c eDivergence, and is a

t r e n d - f o l l o w i n gmomentum indicatorwhich is used to showhow two differentflexible price averagesrelate to each other.You can calculate theMACD by deducting thetwenty-six dayexponential movingaverage (also known asthe EMA) from the 12-day EMA. Then, a nine-day EMA of the MACDis plotted at the top ofthe MACD and called

the signal line. Thisline functions like atrigger indicator forinvestors buying andselling signals.

Three differentmethods commonlyused for interpretingthe moving averagec o n v e r g e n c e

divergence.The first method is

called the crossover,and it is a bearishsignal that appearswhen the MACD drops

lower than the signalline. Investors usuallytake this signal tomean that it may betime to sell to thehighest bidder. Withthe convergence it canbe easy to get fakedout by the market, sobe sure to be patientand wait it out for aconfirmed cross abovethe signal line beforeseeking a sellersposition.

The second mostcommon MACDtechnical analysismethod is calleddivergence, and itworks opposite to theway that theconvergence works.You can spot thedivergence by lookingfor the point where

the security pricbreaks away from thMACD, signally the facthat the current trendhas come to an end.

The third and

finally method is calledthe dramatic rise, andit can be spotted bywaiting for the shortemoving average tobreak away from thelonger term movinaverage. Investorusually interpret this aa signal that thsecurity has beeoverbought, meaninthat it will soon returto normal price levels

If u want to knowabout Technicaanalysis classeconducted by mesend the details abouyou [email protected] will revert back withcourse details. Pleasemention the referencas THE ECONOMICREVOLUTION

Nifty for 05/07/2010 to 09/07/2010:

Nifty CMP-5237 [ Key for down

trend is now 5187-5180 then target

5150-5120. for up move from here

5330-5360 then 5430-5450] - Trend

bearish Before going to new high

some profit booking seen on chart.

Previous Weekperformance

Nifty for 28/06/2010 to 02/07/2010: Nifty

CMP-5269 [previous close 5262] [ Key

for down trend is now 5228-5180 then

target 5150-5050. for up move from here

5330-5360 then 5430-5450] - Trend Flat/

bearish Before going to new high some

profit booking seen on chart.

Scripts to watch on long

side : GNFC, NFL,

Chambal, Nagar Fert,

RCF and Bindal Agro

AVAILABLE IN ENGLISH AND GUJARATI LANGUAGE

What the RBI rate hike could do?It should be noted in

this context that theliquidity easingmeasures have becomenecessary to managewhat is essentially atemporary andu n a n t i c i p a t e ddevelopment.

The monetarymeasures shouldcontain inflation andanchor inflationaryexpectations goingforward, while nothurting the recoveryprocess, the ReserveBank of India (RBI) said

in a statement afterannouncing rate hikesand liquidity supportmeasures.

Easing liquidity andraising rates at the sametime may seemapparently inconsistent,it added.

It should be noted inthis context that theliquidity easing measureshave become necessaryto manage what isessentially a temporaryand unanticipateddevelopment, the RBIsaid.

In no way shouldthey be viewed ainconsistent with thmonetary policy stancof calibrated exit, whicremains focussed ocontaining inflation andanchoring inflationarexpectations withouhurting growth, iadded.

The RBI said that iwill continue to monitothe macroeconomiconditions, particularlthe price situation, andtake further action awarranted.


5/18

04-07-2010 to 11-07-2010 5

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WEB AND WHOLE ISSUE WILL BE AVAILABLE ON

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SUBSCRIPRIONSUBSCRIPRIONSUBSCRIPRIONSUBSCRIPRIONSUBSCRIPRION

ONLONLONLONLONL Y RS.1000 Y RS.1000 Y RS.1000 Y RS.1000 Y RS.1000

PER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GEPER YEAR, WITH THIS ISSUE GET GUJARAT GUJARAT GUJARAT GUJARAT GUJARATI VERSION FREETI VERSION FREETI VERSION FREETI VERSION FREETI VERSION FREE

MarMarMarMarMarkkkkkeeeeet is et is et is et is et is expectxpectxpectxpectxpected ted ted ted ted to consolo consolo consolo consolo consolidididididatatatatateeeeefffffor some tor some tor some tor some tor some time befime befime befime befime befororororore nee nee nee nee next up moxt up moxt up moxt up moxt up movvvvveeeee

RCOM: We had given in our weekly report that above 196 thestock could see a sharp up move. Above 196 the scrip moved to 207.8and has corrected since then. Short term traders are advised to exitthe counter.

NATCOPHARMA: This stock continued with its upward jour-

ney and made a high of 206.5. Hold the stock for targets given inearlier article.SHASUNCHEM: The stock was recommended around 80 lev-

els. At the time or writing of this article it had made intraday high of96.4 on Friday. Short term traders are advised to start book profits in astaggered manner.

HINDPETRO FUT: We advised going long in this contract fortarget of 500+ in July. However it has seen a strong up move in fewtrading sessions and hence we advise booking some profits on rise.

FOLLOWUP OF

PREVIOUS ARTICLES

STOCK TALK FOR THE

SHORT TERMDIVISLAB: The stock

has been in steadyuptrend. For the lastcouple of weeks it hasbeen consolidating inthe 760-785 range. Thestock is facing resis-tance around 785-786

levels and hence shortterm traders can ex-

pect a decent upswing

once it crosses 786.JSWSTEEL: There isnews that thiscompany is of-fering 5-15%stake to a Japanbased steel

conglom-e r a t e .There aremult ip lesupportsfor thescrip onevery de-cline. Ac-

cumulatethe scrip on declinesnear 980-1000 keepinga stop loss below 930for target of 1100, 1145in the short term. Ag-gressive traders can in-crease buy quantity

once the scripmoves past1065.

JINDALSTEL:The stockprice isaround crucialsupport of

610. Failure to hold thissupport can drag its

price to 575, 550 in few

trading sessions.HCC: Bullish as-cending triangle pat-tern is in progress. In astable market the stockmay break past the up-per range of the tri-

angle which is around122.

BPCL: The stock hasseen a sharp move ofmore than Rs150 in 5-6trading sessions. Longterm resistancetrendline is currentlyplaced around 680. Weexpect the scrip to getconsiderable resis-

tance in the 680-700range. Hence short

term traders are ad-

vised to start bookingprofits on every rise.WIPRO: Wipro has

medium term support

around 380 levels. Sus-tained trades belowthis level could takethe scrip to 340 levels

in the short term.RELMEDIA: Strong

resistance is around

236. Once it managesto break past resis-tance of 236 it couldsee a sharp up move

which could take it to280 levels in the shortterm.

IVRCLINFRA: On

verge of a bul l ishbreakout above 190.

Short term trader

should go long in thcounter as and whenit breaks past its re

sistance of 190 fotarget of 200 in theshort term. Maintai

a stop loss below 18on daily closing basis.


6/18

04-07-2010 to 11-07-20106

A BA BA BA BA BAAAAATTLE BETWEEN POSITIVE OUTTTLE BETWEEN POSITIVE OUTTTLE BETWEEN POSITIVE OUTTTLE BETWEEN POSITIVE OUTTTLE BETWEEN POSITIVE OUTCCCCCOMESOMESOMESOMESOMES

FRFRFRFRFROM DOMESOM DOMESOM DOMESOM DOMESOM DOMESTIC MARKET & NEGTIC MARKET & NEGTIC MARKET & NEGTIC MARKET & NEGTIC MARKET & NEGAAAAATIVE OUTTIVE OUTTIVE OUTTIVE OUTTIVE OUT-----

CCCCCOMES FROMES FROMES FROMES FROMES FROM INTERNOM INTERNOM INTERNOM INTERNOM INTERNAAAAATIONTIONTIONTIONTIONAL MARKETAL MARKETAL MARKETAL MARKETAL MARKETSSSSSFireworks for the

week 05th JULY 2010 -09th JULY 2010

MARKET OUTLOOKFOR THE WEEK

Global Cues,Monsoon and RBIsPolicy are going to playmajor role A BATTLEBETWEEN POSITIVEOUTCOMES FROMDOMESTIC MARKET &NEGATIVE OUTCOMESF R O MI N T E R N A T I O N A LMARKETS

RBIs 25bps ratehike on FRIDAY is anexpected one they

want to control money

flow from largeramount involved 3G &BWA If RBI mayincrease once again by25bps on 27th July thenext scheduled meet

even that also notgoing to make muchimpact as it is already

subdued by markets

E v e n

m a c r o e c o n o m i c

developments aregood by robust export& manufacturing part,we are about to notethe inflation rate is stillon its higher end So

bit worried whencomparing both

Monsoon which

was reportedly below

expected level, that

also going to make

some impact onInflation We mustlook into recent Fuelprice hike also - whichis going to show itsimpact on inflation in

SCRI P CLOSE SUP P ORTS RESI ST

ANCES

BAJAJHIND 116 114,113 121,122

BHARTI 264 261,256 270,275

CENTURYTEX 460 456,451 469,478

DLF 282 279,276 288,295

EDUCOMP 526 524,511 537,552

HCLTECH 353 351,348 360,365

HINDALCO 144 142,141 149,152HINDUNILVR 269 267,266 274,279

IDBI 119 118,115 123,128

IDFC 179 177,174 184,189

IFCI 56.50 55.8,54.30 58.30,61.20

ITC 302 299,298 308,313

PETRONET 78.50 77,75.50 81,84

PUNJLLOYD 133 131,128 138,141

RANBAXY 456 454,451 463,468

RCOM 191 189,186 200,205

RELIANCE 1068 1054,1027 1093,1108

RNRL 63.6 61.90,60.20 65.80,66.70

RPOWER 175 172,169 181,186

STERLITE 160 159,158 166,167SUZLON 58.50 57.20,56.30 59.90,61.20

TATAMOTORS 767 763,758 780,785

TATASTEEL 474 470,465 483,488

YESBANK 268 265,262 274,279

WEEKLY TRADING PICKS

(05th JUL - 09th JUL 2010)

coming daysIn Derivatives

market seen Open

interest increasedsubstantially withCall writing inhigher out-ofmoney strikeprices (5400 &5500) and Putaccumulation inlower out-ofmoney strikeprices (4900-5000)

We must notethat only IndianMarkets are still

maintaining its

positive zone whilemajor ASIAN,EUROPEAN & U.S.markets are deeply innegative range of 10-30% fromc o r r e s p o n d i n gprevious year

Finally all theabove gives a clearoutlook that this Battlebetween positivedevelopments indomestic market &

negative news /development fromglobal markets

makes traders bitnervous

SENSEX 17461TECHNICAL VIEW

(Week 05.07.10 09.07.10):

This week 17596 &17349 will act as KEYLEVELS if itmaintains above 17596or maintains below17349 levels willdecide the trend ofmarket in next week

SUPPORTS: 17349,17232, 17065 & 16784

R E S I S T A N C E S :17596, 17785, 17939 &18134

SENSEX FOR THEDAY 05.07.10:

Today, if SENSEXmaintains above 17349will give upside targetof 17645-17724 levelsOr else it may slide upto 17232-17151 levels

SUPPORTS: 17349,17294, 17232 & 17151

R E S I S T A N C E S :

17533, 17596, 17645 &17724

NIFTY 5237

TECHNICAL VIEW(Week 05.07.10 09.07.10):

This week 5203 &5278 will act as KEYLEVELS if imaintains above 5278or maintains below5203 levels will decidethe trend of market inthis week

SUPPORTS: 52035168, 5117 & 5032

RESISTANCES: 52785335, 5382 & 5441

NIFTY FOR THE DAY

05.07.10:Today, if NIFTY

maintains above 520levels then it wilgive upside target o5293-5316 levelsOtherwise it maslide up to 5168-514levels

SUPPORTS: 52035186, 5168 & 5143

RESISTANCES5259, 5278, 5293 &5316

GUJARATI HARD COPY AVAILABLE IN MUMBAI & GUJARAT

Cont. from Pg. 8Comp. of ABN Amro.....

its share capital toFor t i s FBN(H )P r e f e r r e dInvestments B.V.For t i s FBN(H )P r e f e r r e dInvestments B.V. isthe current holderof the non-c u m u l a t i v epreference shares Ain the share capitalof For t i s Bank(Nederland) N.V. 2In preparat ion forthe legal merger,Standard & Poor 's,Moody's InvestorsServ ice, F i tchRat ing s and DBRSw ere ask ed toprovide credi trat ing s for thecombined bank. Allthe rating agencieshave nowannounced the

rat ing levels theyhave (provisionally)assigned or expectto ass ig n to ABNAMRO Bank uponleg a l merg er*. . .S tandard & P oor 'sannounced that i thas assigned A (longterm)/A-1 ( shortterm) ratings with a

stable out look .Moody's InvestorsService has assignedAa3 (long term)/P-1(short term) ratingswith a stable

out look . F i tch

Rat ing s has

announced that i t

expects to assign A+

( long term)/F1+

(short term) ratings

w ith a stab le

outlook upon legal

merger. DBRS has

ass ig ned A (h ig h)

( long term)/R-

(middle) ( shor

term) provis iona

ratings with a

stable outlook.

Fol low ing th

legal merger, the

ratings of Fortis Ban

(Nederland) N.V. ar

expected to b

withdrawn.

* ABN AMRO

publ i shes thes

rat ing levels fo

i n f o r m a t i o

purposes only. ABN

AMRO does no

endorse Moody'

Investor Services,

F i tch Rat ing s

Standard & Poor's o

DBRSs rat ing s o

views and does no

accept an

responsib i l i ty fo

their accuracy.


7/18

04-07-2010 to 11-07-2010 7

Cont. from Pg. 1Lions Roar


the week at 5271,made a high of5339, alow of5210 and closed

the week at 5237. The

Nifty too closed withthe week with aloss of32 points.

Both Sensex andNifty have formed asmall spinning topformation on theweekly charts, which isa neutralformation.The longu p p e rs h a d o wrepresentss e l l i n gpressure ath i g h e rlevels. Thea b o v eformationscan ben e g a t e donly if both Sensex andNifty manage a closeabove their recentrespective highs(Sensex 17919 andNifty 5366). Until

then, the bearishformation willcontinue to exert its

pressure on the

market.

M o m e n t u moscillator like theMACD has just given a

Sell signal. The ROC isnearing the centerlineand is on the verge ofgiving a Sell signal. TheRSI though continuesto remain around 52.

The StochasticOscillator continues inits Sell mode. The ADX

has reduced to 18

suggesting thatuptrend islosing steam.The DirectionIndicators are

still in Buy mode butthe +DI in now movingdown closer to the DI

which is not a verypositive sign.

The market hasseen strong rise from15960 to 17919 for theSensex and 4786 to

5366 for the Nifty. Boththe indices are now

correcting their riseand the correctionlevels for the Sensexfalls at 17171-16940-16708and those forthe Nifty are5144-5076-5008.

T h eSensex zone17150-17250acted ass t r o n gr e s i s t a n c ebefore theb u l l i s hbreakout occurred.Now this resistancezone will act assupport, when theSensex comes downduring retracement.Besides this, the50dma (17143) and38.2% retracement ofthe recent rise from15960 (17171) also fallswithin this supportband. Hence there is aconfluence of supportsexisting between17150-17250, whichmake this support zonecritical. Similarly Niftyzone between 5140-5165 acted as strongresistance before thebreakout occurred.Now this zone will actas support duringcorrection. Besides,the 50dma (5142) and38.2% retracement ofthe recent rise from4786 (5144) also fallswithin this supportzone. Hence expectstrong supportbetween 5140-5165.

The long term trendof the market remainsintact as long as the

INDEX LEVELS :

S3 S2 S1 CLOSE R1 R2 R3Nifty 5097 5142 5187 5237 5288 5329 5368

Sensex 16942 17150 17337 17460 17629 1 7845 18047

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8

LAST WEEKS RECOMMENDATIONS

STOCK Rec. Tgt Reached Lot Profitprice size

Buy ONGC 1263 1331 1347 250 Rs.21,000

Buy HPCL 402 449 484 1000 Rs.82,000Buy BPCL 620 672 678 500 Rs.29,000Buy MRPL 73 81 84 4000 Rs.44,000Buy GTLInfra 45 48 49 8000 Rs.32,000

Total Rs.2,08,000

It was bonanza time for our readers as all our recommenda-tions achieved their targets with ease. The stars for the past

week were HPCL, BPCL and MRPL.

THIS WEEKS RECOMMENDATIONS :

STOCK CMP SL Tgt-1 Tgt-2Buy Chenn.Petro 262 258 271 281Buy ChambalFert 67 66 70 73Buy RPower 175 172 181 186Buy Suzlon 58 57 61 64Buy Purvankara 111 108 117 123

Sensex and Niftycontinue to trade

above their 200dmas(Sensex 16987 andNifty 5076). Please

note that the 200dmais almost coincidingwith the 50%retracement level ofthe recent rise i.e.Sensex 16940 and Nifty5076. Hence expectstrong rebound fromthese levels in case ofa severe correction.

If we look atbroader picture, thenwe are still correctingthe fall of the Sensexfrom 21206 to 7697 andNifty from 6357 to 2252.Since both the indiceshave managed a closeabove their 61.8%retracement levels,the next possibletarget will be Sensex18315 and Nifty 5478which are the 78.6%retracement levels ofthe entire previousfall.

Since last October,the market is movingin a rising channel andthe channel top hasprovided strongresistance to themarket and that supplytrendline top falls atSensex 18310 and Nifty

5490. Both the risinchannel trendline top

and the 78.6%r e t r a c e m e nlevels are almoscoinciding andhence Sensex and

Nifty are likely tofind difficulty icrossing ove18310-18315 and5 4 7 8 - 5 4 9respectively.

The O.I.PCR iquite normal a

1.41. 5200 PE are seeinreduction in openinterest as the Pu

writers have startedlosing confidence. ThPut writing has shiftedto 5000 strike. Verhigh open interest habeen added for 5300 Csuggesting that thi

level might prove to bedifficult to breach fothe market in the neaterm. Besides stroncall writing ihappening at thestrike of 5500.

Sensex has stronTrendline resistance a17893. Trendlinsupport for the Sensewill come in at 17147Nifty has strong risinTrendline resistance a5360. Trendlinsupport for the Niftywill come in at 5104.

For the weeahead, Sensex wilfind Support at 1733717150-16942 and wifind Resistance a17629-17845-18047.

For the weeahead, Nifty will findSupport at 5187-51425097 and will findResistance at 52885329-5368.

WATCH OUT FOR


8/18

04-07-2010 to 11-07-20108

Cont. from Pg. 1Weekly Review

yet and so the marketshould continue its

journey down withstiff resistance around5300 levels.

The crucial support

for the Nifty is 5167-5145 and strongresistance at 5300

The support for theSensex is at 17171-17104 and strong

resistance at 17751From a trading point

of view I wouldcontinue to bookprofits in the upperregions.

Cont. from Pg. 1Prabhakar Vyuhto cross 5300 would benegative for market.RBI has hiked ratewhich is negative forAuto, Realty andBanking stock. ChinaPMI HSBCm a n u f a c t u r i n gpurchasing managersindex stood at aseasonally adjusted50.4 in June, downfrom 52.7 in May thiswas followed by

Korea, India and thenEU and U.S alsoreported slowdown ineconomic activity asStimulus impact fadeand European crisisstarting show impacton Global economy

with Baltic Indexalmost 40% down fromyears high now @ yearlow showing lack ofdemand

Support-5200-5160-5075

Resistance-5270-5330-5400

Positive Stocks-JUBILANT-APIL-NHPC

Negative Stock-M A H & M A H -HDFCBANK-CAIRN

Stock for theinvestment-CAMLINCmp Rs.35

CAMLIN has madeall time high as percharts from 1990 paidregular dividend Re.1paid with Book

Value=10.30, Indiandisposable incomeincreasing and morefocus on educationbenefits. The companyis engaged ind e v e l o p i n g ,manufacturing anddistribution ofconsumer productswhich include artmaterials andstationery like artistcolours, writing

instruments, woodenpencils, ink,m a t h e m a t i c a linstrument sets, hipolymer leads,drawing instrumentsand other stationeryproducts.

Cont. from Pg. 1Tech Ana.

decrease, the dailycloses tend toaccumulate closer tothe lows of the dailytrading range. Thisconcept also holds true

on daily, weekly andmonthly charts.

Stochastics can becalculated for any timeperiod. Choosing theright time period forthe stochastics issimilar to choosing theright number of daysfor a moving average.

Stochastics signals

Both bearish andbullish divergence canbe observed.

Overbought/

oversold zones

When prices moveup and appear to beready to correct, themarket is calledoverbought. Whenprices have beenmoving down andappear to be ready torebound, the market isoversold. As am a t h e m a t i c a l

representation of amarkets overboughtor oversold condition,stochastic tells youwhen prices have gonetoo far in one

direction.Values above 75

indicate theoverbought zone.Values below 25indicate the oversoldzone. (Some tradersprefer using 80 and 20as the parameters foroverbought andoversold markets.)

MORE THAN 4.5 LACS READER WORLD WIDE

ComplComplComplComplCompleeeeetttttion of ABN AMRion of ABN AMRion of ABN AMRion of ABN AMRion of ABN AMROOOOOBank and FBank and FBank and FBank and FBank and Fortortortortortis Bankis Bankis Bankis Bankis Bank

NedNedNedNedNederererererllllland land land land land legegegegegal meral meral meral meral mergergergergergerAs from today, ABN

AMRO Bank N.V. (ABNAMRO) and FortisBank (Nederland) N.V.(Fortis BankNederland) havelegally merged andstart operating as asingle bankunder thename ofABN AMROBank.

T h ecompletionof the legalm e r g e r

means thetwo bankscan nowm a k eaccelerated progressin integrating theiractivities. Thismerger will combinethe resources andnetworks of bothbanks. The mergermarks a majormilestone and a newbeginning that willbring a future with acontinued focus onour customers. As aresult of the legalmerger, the FortisBank Nederland namewill disappear.

Gerrit Zalm,chairman of ABNAMRO Bank, issuedthe followingstatement : From 1July the legal mergerwill be a reality, andABN AMRO and FortisBank Nederland willbecome a single

entity. This marks aspecial milestone forour new bank. I amaware that the pathwe have had to travelto reach this point hasbeen challenging andfar from easy. I havegreat admiration forthe tireless effortsthat we have seen ona daily basis fromcolleagues and am

pleased by the trust

that clients havecontinued to place inus. We have managedto turn the two banksinto a single businessin a very short time.

The new bank,

operating under thename of ABN AMROBank, has 6.8 millionclients, 30,000employees, 500branches in theNetherlands, 78commercial cl ientbranches, 68 privatebanking branches(including 47 outsidethe Netherlands) andits own internationalnetwork in 27countries. The bankseeks to maintains u s t a i n a b l erelationships with itsDutch clients, both astheir primary bank inthe Netherlands andfor all their businessabroad, with financialinstitutions andclients active in theenergy, commoditiesand transportation

markets.In Asia, ABN AMROis an experiencedmerchant and privatebank. Our history inAsia commenced withthe opening of anoffice in Indonesia in1826 and Singapore in1858, making ABNAMRO the oldestforeign bank inSingapore. Since its

origin in Asia, ABN

AMRO has been activin markets such asEnergy, CommoditiesT r a n s p o r t a t i o nClearing and PrivatBanking. In Asia, ABNAMRO continues to

expand itb u s i n e sand wisoon ba d d i nSyndicationand Expor& ProjecFinance i

SingaporeCommoditiein HonKong, and

re-establishing oupresence in ShanghaIt further has presence for Clearinin Singapore, Tokyoand Sydney. Ouexpansion in Asia ibased on thcontinuous economigrowth and potentiaof this region.

As a result of thlegal merger, all thrights and obligationof Fortis BanNederland witransfer to ABN AMROby operation of lawunder universal titleFortis BanNederland will ceasto exist on the mergedate. The merger alsomeans that all thebranches andsubsidiaries of FortiBank Nederland wi

become branches andsubsidiaries of ABNAMRO. With effecfrom the merger dateABN AMRO GrouN.V., the parencompany and groucompany of ABNAMRO Bank N.V., wialso assign nonc u m u l a t i v epreference shares i

Continue on .....6

Ranbaxy transfers drug discovery unit to Daiichi SankyoIn a bout of restruc-

turing, pharma majorRanbaxy today an-

nounced that their NewDrug Discovery Re-search (NDDR) has beentransferred to DaiichiSankyo India PharmaPrivate Limited underthe rationale ofstrengthening the glo-bal R&D of DaiichiSankyo Group, reportsCNBC-TV18s Ekta Batra.

The new companyformed will be Daiichi

Sankyo Life Science Re-search Center (RCI).NDDR will become a

part of RCI. Ranbaxy willcontinue to indepen-dently develop and latercommercialize the anti-malarial drug which is inPhase III. It will explorefurther development oflate stage programs de-veloped by NDDR includ-ing developmentprogrammes with theGSK collaboration.

Most analysts are

viewing this as a strate-gically positive move; asit will reduce Ranbaxys

R&D spend. Analysts areestimating that if on anaverage Ranbaxysspends 7% on R&D ofwhich around 20% is onNDDR, a spend of Rs 500crore, expect savings ofRs 100 crore.

But what is left to beseen is how the cost sav-ings will be utilized andhow Daiichi takes theNDDR portfolio forward.


9/18

04-07-2010 to 11-07-2010 9

CAN WE SEE BRECAN WE SEE BRECAN WE SEE BRECAN WE SEE BRECAN WE SEE BREAKAKAKAKAKOUT IN THISOUT IN THISOUT IN THISOUT IN THISOUT IN THISMONTH ABOMONTH ABOMONTH ABOMONTH ABOMONTH ABOVE 5400 0R BREVE 5400 0R BREVE 5400 0R BREVE 5400 0R BREVE 5400 0R BREAK 5150AK 5150AK 5150AK 5150AK 5150

Sensex

(17,460.9)The Sensex tripped

down a gentle slope

last week. But themost notable featureof the weeks tradewas the grittyperformance of theIndian benchmarkagainst the back-dropof crumbling global

stock prices. The Dowand the FTSE fell 4 centand the ShanghaiComposite collapsed6 per cent, whileSensex walked away

with a minor cut of lessthan 1 per cent.

Concern overeconomic slow-downin China and the UScoupled with thelurking Europeancredit issue madeinvestors cash outsome of the gainsmade since last March.What with watchingthe progress of

monsoon, the RBIs

next move and thesecond quarterearnings that will starttricking in from next

week; an eventfulperiod lies ahead forIndian investors.

Volumes were highin the first half of lastweek but it peteredout in the second. FIIswere selling more

than they what theybought for most part.Open interest hasclimbed above Rs1,20,000 crore alreadyimplying that there isno let-up in

speculative activity onour bourses. Putoptions howevercontinue tooutnumber calloptions implying abearish bias in tradingsentiment.

S h o r t - t e r moscillators aresignalling a bearishbias. The 10-day rateof change oscillator

has dipped in to

negative zone thoughit is holding just belowthe zero line and therelative strengthindex has moved frombullish to neutralzone. That weeklyoscillators are notgiving a decisive signalimplies that a move ispossible in eitherdirection over themedium term.

The whipsawmovement of lastweek has not made

the medium-termdirection of theSensex apparent yet.As discussed in our lastcolumn, the medium-term uptrend from theMay low of 15,960 isstill very strong.

Movement last weeksuggests that buyersare emerging at everydip, in expectation ofa rebound.

We stay with theview that a decline to

17,330 or 17,170 ispossible in the daysahead. But reversalfrom these levelswould imply that bullsare not vanquishedyet. A sideways movebetween 17,000 and18,000 can then ensuefor a few weeks to befollowed by anotherattempt at movingabove 18,000.

This rosy scenario

would however bedashed on a closebelow 17,170.

That wouldprecede a decline to16,700 or even below16,000 over themedium-term. Itneeds to beremembered that ourmedium-term rangeremains between15,500 and 18,000.Investors have tolearn to live withvolatility for the rest

of this year, at least.A silver lining is

however present inthe form of a resilientshow by some of theother Asianbenchmarks. Stocks inmarkets such asIndonesia, Malaysia,Philippines, Korea,Taiwan, Thailand andIndia are relativelyunscathed in thisround of correctionand are still close totheir 2010 peaks. It is

possible that whenthe correction ends,investors could flockto these marketsdriving stock priceshigher to new 2010peaks.

The Sensex iscurrently poised closeto key short-termsupport bandbetween 17,350 and17,400. Presence of20-day simple movingaverage at this levelalso adds to its

significance. Anegative reaction tothe rate hike canhowever drag theindex down to thenext downward targetat 17,170.Convergence of manycounts at this pointmakes it likely that arebound is possiblefrom this level. If not,subsequent supports

would be at 17,079 and

16,950. Resistances forthe week aheadwould be at 17,581 and17,711.

Nifty (5,237.1)Nifty moved lower

in line with ourexpectation toachieve the short-term target of 5,213.The index howeverhas key short-termsupport around 5,210since the 20-daysimple movingaverage is present

here and it is also 38.2per cent retracementof the index previousup-move. Knee-jerkreaction to the policyrate hike can drag theindex down to 5,167 or5,150 in the weekahead.

The medium-termuptrend from May 25low will come underduress only i f theindex closes below5,150. That will signalan impendingdecline to 5,078 or5,010 in the medium-term.

Resistances forthe week aheadwould be at 5,284 and5,322. Traders caninit iate shortposit ions on areversal from eitherof these levels.

Global CuesThings took a turn

for the worse in theglobal equity market

with stocksaccelerating lower. Itis now confirmedthat the medium-term downtrend thatcommenced in Aprilcontinues to be inforce and the thirdleg of this move iscurrently in motionin g lobal equitymarkets. The fact thatsome of the major

global benchmarkhave breached theiMay lows and havmoved below ireinforces this view

CBOE Volat i l i tindex spiked to thepeak of 37.6 onThursday. But iremains below thMay high of 48implying that thougthere is nervousnessthere isnt any paniakin to thawitnessed in May.

Words ar

insufficient to extothe power oFibonacci numbers itechnical analysisThe awesome mighof these numbers ionce more seen ithe Dow JoneIndustrial Averagereversal from thpeak of 11,258 onApri l 26. I f theretracement of thfal l f rom Octobe2007 to March 2009trough is considered

61.8 per cenretracement occurat 11,245. The Dowcould move a bare 13points beyond thithreshold beforlaunching a mediumterm reversal.

If we consider theminor counts of thdown-move from11,258, an A-B-C flawas completed athe May low. Andfollowing a pull-bacral ly in June, th

third leg of thicorrection appears tobe unfolding nowTargets for this wavare 9,667 and 9,093In short, the Dow hakey short-termsupport around9,600, where i t icurrently halt ingBreak of this levewill drag it down to9,093.

IF NOT AVAILABLE IN MUMBAI CALL OUR DISTRIBUTOR : PHONE (022)30224757


10/18

04-07-2010 to 11-07-201010


Hot Weekly Stock Futures For Week (05.07.10 To 09.07.10)

Hot Positional Stock Futures For Week (05.07.10 To 09.07.10)

Nifty Future's Prediction for Week (05.07.10 To 09.07.10):-

Index Closing Price Support Stoploss Target 1 Target 2 Target 3

Nifty 5250.85 5200 5166 5288 5324 5347

Sr. Company Closing Support Stoploss Target 1 Target 2

No. Name Price

1 Bhushan Steel 1417.70 1400 1390 1454 1474

2 Jindal Steel 618.95 611 603 638 657

3 Sesagoa 340.95 335 331 358 369

4 GTL Infra 46.05 45 43 50 54

5 EKC 134.25 132 130 140 144

Sr. Company Closing Support Stoploss Target 1 Target 2

No. Name Price

1 ICICI 837.55 829 818 860 885

2 Century Textile 458.00 454 450 473 486

3 DLF 283.40 278 273 296 307

4 IB Real Estate 155.75 153 150 163 167

5 Uniphos 183.40 180 177 192 203

ABOVE 5288 WE MAY SEE

5324,5347,5380 BELOW 5200,WE

MAY SEE 5166,5137,5117.

Hot Midcaps/Smallcaps In Short Term For Week

(28.06.10 To 02.07.10) :-

1 Andrew Yule 526173 40.55 - 46 51

2 Rel Media 532399 231.15 - 241 253

3 Satyam 500376 91.00 - 98 104

4 Polaris 532254 179.60 - 188 198

5 Provogue 532647 60.30 - 66 706 KRBL 530813 23.35 - 28 32

7 Wanbury 524212 83.75 - 90 98

8 Usher Agro 532765 95.95 - 107 117

9 Karuturi 531687 18.55 - 23 26

10 Hind Copper 513599 486.10 - 593 635

11 Super Spinning 521180 15.05 - 19 24

12 Lakshmi Vilas 590069 90.45 - 98 105

13 FSL 532809 28.00 - 33 37

14 Edserve 533055 198.10 - 214 228

15 ASCL 532853 63.50 - 73 84

16 KFA 532747 49.25 - 55 62

17 BEL 500049 1724.25 - 1939 2047

18 Anu Lab 532981 5.71 - 8 10

In Volatile Market also,many scriptsmay give good rise due to operators in

Coming Days.Last week very

very clearly n boldly inperfect manner wehad told u all that, wemay see downsideonly below 5225 innifty future & dearinvestors, just seeewhat happened tonifty futurethen????..... Is itmiracle.??? What a

perfect level given by

us. Exactly as perour level of 5225given to you niftyfuture had made a lowof 5225.10, but notbreached our givenlevel of 5225&return back on that

day to 5323..Whatelse u all want????...

We are giving day today updates to ourpaid clients, also weare giving positionalcalls in nifty future. Weare not saying to seeour one weekperformance only.Cause since last 18months we are givingthis newsletters to uall & those who want

to see our

performance can seeall our last 18 monthsnewsletters. This iso u rconsistencyDon'thesitate to contact usfor our paid servicedetails..

From last week'sour stock future

recommendat ions,Onmobile touched 300from our reco price292,ICICI touched 885from our reco price 860,Essar oil touched 145from our reco price138,Century textouched 473 from our

reco price 461,HDILtouched2 5 9f r o mo u rr e c opr ice

246,GTL infra touched50 from our reco price45,Our master-blasterreco MRPL touched 84from our reco price74,Videocon touched217 from our reco price204,Another master-blaster reco IFCI

moved to 58 from ourreco price 53What a superb return in a

week time..Whatelse one can expect insuch kind of volatilemarkets We are notsaying to see our oneweek performanceonly. Cause since last18 months we aregiving this newslettersto u all & those whowant to see ourperformance can seeall our last 18 monthsnewsletters. This is

our consistencyDon't hesitate tocontact us for our paidservice details..

From last week's

our deliverybasedrecommendat ions,Exide touched to 137from our reco price

130,Edserve touched211 from our reco price200,Mammoth jump inNHPC to 32 from our

reco price 28,Anothersuperb rise inprovogue to 61 fromour reco price 55,

Usher Agro moved to

96 from our reco price90,Mindblowing rise

in Our Onward technoto 36.15 on upper ckt

Trade On Break Out Side Only

To Get Benifited By Trend.

from our reco price25.65 withinweek.What else u alwant??. We are notsaying to see our oneweek performanceonly. Cause sincelast 18 months we aregiving thisnewsletters to u all &those who want tosee our performancecan see all our last 18m o n t h s

newsletters. This isour consistencyDon't hesitate tocontact us for our paidservice details..

ATTENTIONThe material contained in the Economic Revolution is based on Fundamental and Tech-

nical analysis & other scientific methods and also the knowledge and belief of author. Errorcan not to be rulled out. The information given is of advisory nature only. The Editor, thePublisher and the Author does not take any consequences arising out of it. All rights re-served. Reproducing to whole or in part of any matter including featurs without permision isnot permitted. Legal jurisdiction is Ahmedabad only.

The material given in the Economic Revolution is the views of author only, it notmeans that Editor is agree with it, so Editor, the Publisher and the printer is not resposible

for the contains in writers article. Narendra Joshi Editor,


11/18

04-07-2010 to 11-07-2010 11

AUTO & PERSONAL CARE sectors

WILL OUT PERFORM THIS WEEK

ASTROLOGY &STOCK MARKET

SATISH GUPTAhttp://www.astrostocktips.in

e mail:[email protected]

MOBILE :09811738366 - 09810018438

SUCCESSFULPREDICTION

(20th June) With the blessings of LordGanesha, it was Predicted on 20th JUNE 10on our website, & on moneycontrol.comLIQUOR stocks will be in strong demand,especially on 21st & 22nd JUNE. In thissegment, watch for UNITED BREWERIES,GLOBUS, MCDOWEL & KHODAY etc Duringthis period GLOBUS appreciated by 22%,KHODAY by 20%, TILAK NAGAR by 10%,JAGATJIT INDUSTRIES by 8% etc. ( NIFTY was

down by 37 points on 21st JUNE 10)Sectors which get strong ASTRO support

are not normally affected by downfall in themarket.

5 th July-9th July2010

Weekly planetary

position: During the

week, Moon will betransiting in Pisces,Aries & Taurus, Sun,

Mercury & Ketu inGemini, Mars & Venusin Leo, Saturn in Virgo,Rahu & Pluto inSagittarius, Neptune inAquarius, Jupiter &Uranus in Pisces.Mercury will change thehouse on 6th July10.

During the weekFINANCIAL sectorwill continue to gets t r o n gASTROLOGICALsupport. In this sectorwatch for IDFC, IFCI,

R E L I A N C ECAPITAL, BOI,BOB & CANARABANK etc.

AUTO sector willbe getting planetarysupport & watch forMARUTI, TATAMOTOR, TVSMOTOR &MAHINDRA &MAHINDRA etc inthis sector.

P E R S O N A LCARE stocks will bein strong demand, in

this segment, watch

for DABUR,MARICO, EMAMI,

C O L G A T E ,G O D R E JCONSUMERS &HULetc

PLASTIC sectorwould also be gettingastro support & in thisspace keep close eye

on SINTEX, VIPINDUSTRIES &B R I G H T

BROTHERS etcLAST WEEKS

PREDICTION: Withthe blessings of LordGANESHA,

our prediction abouHOUSING FINANCEproved jack pot &CANFIN HOME wenup by 37%, GICHOUSING & INDBANKING HOUSINGby 15% & GRUHFINANCE by 8%Among DRILLING

A B A NOFFSHORE & HOECappreciated by 6-15%In LIQUOR JAGATJIT, EMPEEKHODAY & TILAKNAGAR moved up by6-9%.

SCRIPS SL BEST BUY TARGET

MRPL 70 78 91-96

CHAMBLE FERI 62 65 69-71

SUN TV 405 425 466-484

GMR INFRA 56 58 62-65

IFCI 51 55 60-63

TOP SHORT TERM BUY CALLS

SCRIPS SL BEST SELL TARGET

SESA GOA 370 353 338-324

CAIRN 320 307 295-284

GAIL 495 479 462-447

LIC 1025 1000 972-946

SCI 167 162 157-153

TOP SHORT TERM SELL FUTURES

NIFTI FUTURE Sell on rise between 5275 to 5325 with stop loss 5390

MOMENTUM CALLS

(1) NIFTY FU Sell on risebetween 5275 to 5325 stoploss 5390 target 5165/5105

(2) NIFTY OPTION Low risktraders buy 5100 and 5000put option

(3) GAIL Buy 440 strike priceput option

(4) RENUKA SUGAR Buy 75strike price call option

(5) RELIANCE POWER Stoploss 165 targets 182-187-191

(6) RCF Stop loss 80 targets 90-93-96

(7) BALRAMPUR CHINI Stoploss 77 targets 91-95-99

WEEKLY MARKETREPORT(05/07/2010)

On Friday in the lastminutes of marketclosing news come outthat RNRL will bemerged with R-POWER

and RNRL come down.In this weekly

article I will discuss theissue what will bevaluation post mergerof RNRL-R-POWER soinvestor get clear viewabout the long termprospect of thebusiness and company.

There are threemethods to value apower company

(1) cost based (2)discounted cash flow(3) price to bookvalue

In the case of R-POWER we can not usediscounted cash flowand price to bookvalue becausecompany is in theprocess of setting upplants. So we will usecost based method tovalue R-POWER

As per internationalstandard valuation permega watt is 4crores.By 2015 reliance poweris expected to buildabout 42000 mega wattpower plants.

The merger processmay be done based onbook value methodthen RNRL shareholderwill get 1 share of R-POWER against 5

shares of RNRL.As per cost method

the value will be1.68lakh crores of R-

POWER and postmerger total share willbe 2396800000.

So value per share

comes to 617

Post Merger

Company will havefollowing assets

(1) 4 co al me dmethane block In 3251

sq.km(2) O il an d g as

block at mizoram in3619 sq km

(3) 2 billion tonne

of coal reserve(4) G as su pp ly

from reliance ind(5) Cit y ga s

distribution licenseLooking at the

details and postmerger my target forR-POWER will be 1000

Long term investorcan buy RNRL and R-POWER on declines

D E R A V T I V EANALYSIS

Aggressive callwriting between 5300to 5600 call option and5100 put writingsuggest in the fewweek nifty to remain inthe range of 5100 to5400

In 5300 call optionon Friday 6.48lakhshare added and totalopen interest 56.96lakh

In 5400 call optionon Friday 2.17 lakhshares added and totalopen interest 70.72lakh

In 5500 call optionon Friday 3.61 lakhshares added and totalopen interest 74.80lakh.

While in 5100 putthere was writing andon Friday added 7.17lakh shares and totalopen interest 68.75lakh

So call and putwriting indicates onesharp fall is on card andcan nifty slide to 5100while resistance willbe seen at 5400.

TECHNICAL LEVELS(1)SENSEX-On weekly chart

there is GANN reversaresistance will b17900 while support a17100 and 16900

(2) NIFTY FUOn weekly char

there is GANN reversaresistance will be 5400while support at 510and 5000

Sell on risbetween 5275 to 5325with stop loss 5390 fotarget 5165 and 5105

A MULTY ANALYST WEEKLY ON LINE


12/18

04-07-2010 to 11-07-201012

Madhav Ranade(M) 09371002943 or

email :[email protected]

BSE Indices

comodities

World indices

posn trading lvls date 5th / 9th july 2010stock / index go entry targets stoplossBSE SENSEX sho rt 17530 17340/17150 /16960/16770 17720

long 17720 17910/18100/18290 17530BSE auto index short 8100 x 8220

long 8220 x 8160BSE bank index short 10580 x 10700

long 10700 x 10580BSE capital goods short 14270 x 14390

long 14390 x 14270BSE FMCG index short 3210 x 3245

long 3245 x 3210BSE health index short 5650 x 5710

long 5710 x 5650BSE metal index short 14300 x 14410

long 14520 x 14410BSE oil & gas INDEX short 10750 x 10840

long 10840 x 10750BSE PSU index short 9405 x 9505

long 9505 x 9405BSE realty index short 3062 x 3103

long 3103 x 3062

all rates in US dollarscommodity weekly levels 5th / 9th july 2010 unittype go entry targets stoplossgold short 1199 1190/75/60 1211 troy ounce

long 1211 1220/35/50 1199silver short 18.11 17.91/17.71/17.51 18.31 troy ounce

long 18.31 18.51/18.71/18.91 18.11crude short 72.35 71.1/69.85/68.6/67.35 73 barrel

long 73.6 74.85/76.1/77.35/78.6 73copper short 2.9 2.83/2.76/2.69/2.62 2.935 pound

long 2.97 3.04/3.11/3.18 2.94natural gas short 4.71 4.61/4.51/4.41 4.76 mmbtu

long 4.81 4.91/5.01/5.11 4.76sugar short 550 537/25/12/500 556 tonne

long 562 566/74/82/90 556

world indices weekly levels 5th / 9th july 2010index go entry targets stoplossdow jones index short 9700 9625/9550/9475/9400/9325/9250 9775

long 9850 9925/10000/10075/10150/10225/10300 9775nasdaq composit short 2101 2079/2057/2035/2013 2123

long 2145 2167/2189/2211/2233 2123s&p 500 short 1026 1015/1004/993/982 1037

long 1037 1048/1059/1070/1081/1092/1103 1026FTSE short 4820 4730/4640/4550 4865

long 4910 5000/5090/5180/5270 4865nikkei 225 short 9240 9080/8920/8760 9320

long 9400 9550/9700/9850/10000 9320australia ordinary short 4266 4237/4211/4185/4159/4133/4107 4309

long 4309 4325/4365/4405/4445/4485 4266hang seng short 19825 19450/19075/18700 20025

long 20225 20475/20725/20975/21225 20025shanghai composit short 2357 2324/2292/2259/2227 2389

long 2389 2422/54/87/2519 2357

All the world marketshave thrown in the toweland most indices havemoved into long term

bearish trend. We haveout-performed the wholeworld uptill now but howlong can we continue todo so is a million dollarquestion.

RBI has announced0.25 % rate hike on Fri-day evening and marketswill react to that on Mon-day morning. Overall thecoming week seems tobe a difficult one unlessthe world markets showa marked improvement.

RPOWER - RNRLmerger : it looks like thatthe RPOWER share-holders are being short-

changed to give exitroute to RNRL investors.

This should raise somecorporate governance is-sues as well and I ex-

pect both the stocks toseek significantly lowerlevels when marketopens on Monday.

Some Americanbanks have issued direc-tives to their traders notto take any exposurebeyond June 2011. thiswill cause a small rippleamongst counterpartieswho are holding BP me-dium / long term paper.We have to watch thisspace very carefully.

If you want nifty intra / weekly trading levelsyou will have to becomepaid member of NIFTY

group.Please remember

CAPITAL is alwaysscarce and needs to berespected.

THE NEW NIFTYGROUP HAS BECOMEA PAID GROUP FROM9TH APRIL.

h t t p : / / finance.groups.yahoo.com/group/sumamura-nifty/

I am now available onyahoo messenger onmost of the trading daysand you can add me onyour yahoo messenger.My yahoo id ismadhavranade1

Please call me if youhave any doubts or youneed levels for someother stock. I am avail-able on 09371002943 or

o [email protected]

NAME : NIFTYBUY ABOVE : 5250RES-1 : 5280

RES-2 : 5312RES-3 : 5346SELL BELOW : 5250SUP-1 : 5244SUP-2 : 5180SUP-3 : 5151

NAME : BANK NIFTYBUY ABOVE : 9360RES-1 : 9400RES-2 : 9468RES-3 : 9510SELL BELOW : 9360SUP-1 : 9300SUP-2 : 9242SUP-3 : 9200

NAME : CIPLABUY ABOVE : 335RES-1 : 338RES-2 : 341RES-3 : 348SELL BELOW : 335SUP-1 : 329SUP-2 : 325SUP-3 : 322

NAME : PNBBUY ABOVE : 1045RES-1 : 1056RES-2 : 1065RES-3 : 1069SELL BELOW : 1045

SUP-1 : 1034SUP-2 : 1025SUP-3 : 1019

NAME : CAIRNBUY ABOVE : 295RES-1 : 299RES-2 : 304RES-3 : 307SELL BELOW : 295SUP-1 : 291SUP-2 : 286SUP-3 : 281

NAME : TATACHEMBUY ABOVE : 322RES-1 : 326RES-2 : 329RES-3 : 334SELL BELOW : 322SUP-1 : 319SUP-2 : 312SUP-3 : 308

DR. DIPESH GOHIL

Mo. 9727990980

[email protected]

OUR PERFORMANCESTOCKS REC. HIGH TGT

PRICE /LOWNIFTY 5280 5345 3 TAR. ACHVD.BANK NIFTY 9485 9311 2 TAR. ACHVD.SUNPHARMA 1790 1742 3 TAR. ACHVD.CESC 37 4 3 8 3 1 TAR. ACHVD.ABGSHIP 26 8 2 5 5 1 TAR. ACHVD.GSFC 24 0 2 8 5 3 TAR. ACHVD.

Trading levels5th / 9th July

2010


13/18

04-07-2010 to 11-07-2010 13

NIFTY LIKELY TO REMAIN IN 200 TO 250 POINT RANGE 5150-5400

BUT AGAIN IN JULY WE CAN SEE 5400 LEVEL ON THE UPSIDE

IN SECTOR SPECIFIC IT S

NO BRAINER THAT BUY

OIL & GAS AND

CONSUMER DURABL E

ON DIPS.

THERE WILL BE LOT OFACTION IN CASH STOCKSANY STOCK CAN HIT THE20% CIRCUIT ONLY YOU

SHOULD HAVE EYE ON THETHAT STOCK

DEAR FRIENDS OFTHE ECONOMICREVOLUTION,

NIFTY NAMASKAR ,ONE OF OUR CLIENT

SAID ON FRIDAYCLOSING THAT THERE ISNO FUN IN PLAYINGNIFTY NO CAN PREDICTWHAT WILL HAPPENTOMM ONE DAY IT WILLOPEN GAP DOWN ANDIN CLOSING IT WILL GOUP AND VERY NEXTDAY WILL HAVE DOWN

SIDE THEN IT WILL NOTCOVER LEAVE IT WEDONT WANT TO DO

ANYTHING. REALLYTHERE IS NO FUN IN

PREDICTING NIFTYMOVEMENT IT WILLREMAIN IN OURRANGE WITH HIGHVOLITILITY AND YES IFYOU ARE HOLDINGPOSITION LONG ORSHORT MARKET WILLGIVE YOUUNEXPECTED MOVE

AND IT WILL HIT YOURSTOP LOSS AND AGAINSTART MOVING UP OR

DOWN NOW MONDAYMARKET NEED TODIGEST RBI ACTION I

DONT SEE MUCHM O V E M E N THAPPNING THEREMARKET ALREADY

KNOWS THIS SOTRADERS GOT CAUGTHSEVERAL TIMES BYGOING SHORT ONBANK STOCKS.

FRIENDS WHAT WEARE SEEING IS THEREWILL BE LOT OF ACTIONIN CASH STOCKSWHICH ONE WILL FIREAND WILL HIT 20%CIRCUIT ONLY YOUSHOLD HAVE A EYE ONTHAT IF THERE IS NOF U N D A M E N T A L

ATTACHED TO THENALSO PEOPLE WILLMAKE FUNDAMENTAL

FOR THE COMPANY LETME GIVE YOU ONEEXAMPLE : BHARAT

GEARS LASTWEEK CLOSEAROUND 51AND NOWMADE HIGHAROUND 71WHY WHATH A P P E N E DS U D D E N L Y

NOTHING THEY SAYTHAT AUTOS SECTOR ISDOING WELL SO AUTORELATED STOCKS ALSO

DO WELL SO FRIENDSWE DONT KNOW WHYTATA MOTOR MARUTIOR M&M ARE GOINGUP N UP ITS NOBRAINER THAT BHARATGEARS OR BHARATFORGE , APPLLO TYRESOR CEAT WHICH ONEWILL GO UP CHOOSEYOUR PICK AND THIS ISNOT ONLY FOR AUTOTHIS CAN HAPPEN

TO ANY SECTORAND WITHIN THAT

SECTOR TO THE ANYCOMPANY AND YESYOU SHOULD KNOW

YOUR ENTRY AND EXITPOINTS APART FROMTHIS IF YOU WANT TOTRADE IN NIFTY

STOCKS HERE ARE THLEVELS FOLLOW THIYOU WILL COME TO

KNOW THAT HOWTECHNICALS ARWORKING IN THIMARKET.

WE WEL COME ADVERTISE FOR THIS PLACE

Sr_ Scrip Close Trade Price Tgt 1 Tgt 2 Tgt 3 Stop

No Name Price Type Range Loss

TRADING LEVEL -19-June-2010

1 NIFTY 5 2 3 7 B U Y 5180-5 200 5 2 3 5 5 2 5 0 5 2 8 5 5 1 6 5

2 NIFTY 5 2 3 7 SELL 5290-5 310 5 2 5 0 5 2 3 5 5 2 1 0 5 3 2 5

3 Bank Nifty 9 3 5 7 SELL BELOW 9 3 0 1 9 2 6 5 9 2 1 0 9 1 5 0 9 3 6 5

4 Bank NIfty 9 3 5 7 B U Y 9080-9 150 9 2 1 0 9 2 6 5 9 3 4 0 9 0 2 0

5 A C C 8 6 3 SELL BELOW 8 5 8 8 5 0 8 4 4 8 3 8 8 6 8

6 ASHOK LD 6 4.4 SELL BELOW 6 4. 2 6 3 .8 6 3 62 .5 6 5 .8

7 AXIS BANK 1 2 3 7 SELL 1230-1 242 1 2 1 8 1 2 0 5 11 8 5 1 2 4 8

8 BHARAT ELEC 1 7 2 3 B U Y 1690-1 710 1 7 3 5 1 7 5 0 1 7 8 0 1 6 7 8

9 BHARAT FORGE 2 9 4 SELL 294-29 6 2 9 1 2 8 8 2 8 5 2 9 8

1 0 B H E L 2 3 9 1 B U Y 2330-2 350 2 3 8 0 2 4 1 0 2 4 3 0 2 3 1 0

11 B I O C O N 3 1 7 SELL BELOW 3 1 6 3 1 3 3 0 9 3 0 3 3 2 2

1 2 CHENNAI PETRO 2 6 2 B U Y 258-26 2 2 6 5 2 6 8 2 7 0 2 5 4

1 3 C IPLA 3 3 6 B U Y 330-33 3 3 3 6 3 4 2 3 4 5 3 2 7

1 4 C O N C O R 1 3 8 2 B U Y 1350-1 370 1 3 9 0 1 4 1 0 1 4 3 0 1 3 3 5

1 5 DR REDDY 1 4 3 5 SELL 1430-1 450 1 4 1 5 1 4 0 0 1 3 8 5 1 4 5 8

1 6 ICICI BANK 8 4 0 B U Y 790 -81 0 8 3 0 8 4 2 8 5 0 7 8 0

1 7 KOTAK BANK 7 5 9 B U Y 710 -72 0 7 3 5 7 5 0 7 7 0 6 9 5

1 8 LT 1 7 8 6 SELL 1785-1 800 1 7 7 0 1 7 5 4 1 7 3 6 1 8 1 0

1 9 P N B 1 0 4 6 B U Y 9 90 -10 10 1 0 2 0 1 0 4 0 1 0 6 0 9 8 0

2 0 RELIA NC E 1 0 6 8 B U Y 1030-1 045 1 0 6 0 1 0 7 8 1 0 9 0 1 0 2 0

RNRL, Reliance

Power to consider

merger on July 4Earlier, media reports had suggested tha

RNRL and Reliance Power could merge, sendinthe shares othe twoc o m p a n i ehigher.

The boardof directors oR e l i a n c eN a t u r aResources Ltd(RNRL) andR e l i a n c ePower Ltd. wimeet on July 4

to consider a merger of the two anil dhirubhaambani group (ADAG) companies.

Earlier, media reports had suggested thaRNRL and Reliance Power could merge, sendin

the shares of the two companiehigher.

The announcement is significanas it comes close on the heels of thetwo Ambani siblings rescinding a longstanding non-compete agreementallowing them to expand into eachother's sectors.

Also, last week Reliance IndustrieLtd. (RIL) and RNRL signed a new gasupply master agreement (GSMApursuant to the judgment of theSupreme Court, dated May 7.

RNRL said that it would now takappropriate steps requesting thGovernment of India for expeditiou

allocation of natural gas to facilitatimplementation of the same.

The price, quantity and the tenureof the natural gas to be supplied byRIL to RNRL from its KG basin block wibe decided by the GovernmentHowever, some reports suggest thathe new GSMA between the twocompanies entails supply of 28mmscmd natural gas for 17 years aUS$4.20 per mmbtu. RIL said that theGSMA is compliant with the GaUtilization Policy and EGoM decisions


14/18

04-07-2010 to 11-07-201014

A MULTY ANALYST WEEKLY ON LINE

RBI hikes repo r ate,reverse repo rate by 25 bpsThe additional

liquidity support tos c h e d u l e dcommercial banksunder the LAF to theextent of up to 0.5%of their net demandand time liabilities(NDTL) currently setto expire on July 2, isnow extended up toJuly 16.

The following is the full text of theMonetary Policy and

L i q u i d i t y M a n a g e m e n t Measures announcedby the Reserve Bankof India (RBI) today.

On an assessmentof the currentm a c r o e c o n o m i csituation, it has beendecided to take thefollowing monetarypolicy measures as apart of the calibratedexit from thee x p a n s i o n a r ymonetary policy:

to increase therepo rate under theLiquidity AdjustmentFacil ity (LAF) by 25basis points from5.25 per cent to 5.50per cent withimmediate effect.

to increase thereverse repo rateunder the LAF by 25basis points from 3.75per cent to 4.0 percent with immediateeffect.

L i q u i d i t y

M a n a g e m e n tMeasures

Also, on the basisof an assessment ofthe current liquiditysituation, the ReserveBank has decided toextend the followingl i q u i d i t ym a n a g e m e n tmeasures:

T h eadditional l iquidity

support to scheduledcommercial banksunder the LAF to theextent of up to 0.5per cent of their netdemand and timeliabil it ies (NDTL)currently set toexpire on July 2, 2010is now extended upto July 16, 2010.

For any shortfall inmaintenance ofstatutory l iquidityratio (SLR) arising outof availment of thisfacil ity, banks may

seek waiver of penalinterest purely as anad hoc measure.

The secondLAF (SLAF) will beconducted on a dailybasis up to July 16,2010.

Rationale forMonetary PolicyMeasures

There have beens i g n i f i c a n tm a c r o e c o n o m i cdevelopments sincethe April 2010

Monetary PolicyStatement. At theglobal level, therecovery iss t r e n g t h e n i n g .However, the outlookcontinues to beclouded byuncertainty in theEuro area.

On the domesticfront, the revisedgrowth estimates by

the Central StatisticalOrganisation (CSO)for 2009-10 and for Q4of 2009-10 suggestthat the recovery isconsolidating. Themanufacturing sectorhas recorded robustgrowth in recentmonths, aided amongothers, by expanding

exports.The strong

underlying growthmomentum is alsoevidenced by thesharp upturn in the

capital goods sector,acceleration in creditgrowth and thewidening currentaccount deficit. Themonsoon situation sofar has beendecidedly betterthan during last yearholding prospects forgood agriculturegrowth.

In its April policyreview, the ReserveBank projected realGDP growth for 2010-

11 at 8 per cent withan upside bias. Morerecent data suggestthat the upside biashas largelymaterialised. Thegrowth projectionwill be reviewed inthe First QuarterReview on July 27,2010.

T h edevelopments on the

inflation front,however, raiseseveral concerns.Overall WPI inflationincreased to 10.2 inMay 2010, up from 9.6per cent in April 2010.Food price inflationand consumer priceinflation remain atelevated levels.

There has beens o m emoderation infood price

inflation, but theprice index offood articlescontinues toincrease.

M o r eimportantly, theprices of non-f o o dm a n u f a c t u r e d

goods and fuel itemshave accelerated inrecent months. Year-on-year WPI non-food manufacturingproducts (weight:

52.2 per cent)inflation, which was(-) 0.4 per cent inNovember 2009 and5.4 per cent in March2010, rose further to6.6 per cent in May2010. Year-on-yearfuel price inflationalso surged from (-)0.8 per cent inNovember 2009 to12.7 per cent in March2010 and further to13.1 per cent in May2010.

Although entirely justified in terms oflong-term fiscal andenergy conservationobjectives, the recentincrease in fuelprices will have animmediate impact ofaround onepercentage point onWPI inflation, withsecond round effectsbeing felt in the

months ahead.Significantly, two-thirds of WPIinflation in May 2010was contributed bynon-food items,suggesting thatinflation is now verymuch generalisedand that demand-side pressures areevident.

Timing of theAction

This mid-cycle

policy action has beenwarranted by thee v o l v i n gm a c r o e c o n o m i csituation. Even asdata for real GDPgrowth and WPIinflation becameavailable by mid-June 2010, it wasc o n s i d e r e dinadvisable to raisethe policy rates as thefinancial system wasdealing with liquiditypressures triggered

by sudden build-up ingovernment cashbalances occasionedby the larger thananticipated level of3G spectrum andbroadband wirelessaccess auctionrealisations.

Through themonth of June,liquidity under LAFoperations remainedin deficit mode.Consequently, thecall rate moved up

s i g n i f i c a n t l y ,resulting in aneffective tighteningat the short end ofthe yield curve. Theliquidity situationhas since begun toease.

Rationale forExtension of LiquidityM a n a g e m e n tMeasures

In late May 2010, in

anticipation of thliquidity pressures oaccount of paymentfor 3G spectrum andadvance taxes, thReserve Bank toocertain l iquiditeasing measures.Even as the liquiditsituation has beguto ease, thesmeasures are beinextended sincliquidity tightnesmay persist.

E x p e c t eOutcomes

The abovmonetary measureshould contaiinflation and anchoi n f l a t i o n a rexpectations goinforward, while nohurting the recoverprocess. Easinliquidity and raisinrates at the same timmay seem apparentlinconsistent. Ishould be noted in

this context that thliquidity easinmeasures havbecome necessary tomanage what iessentially temporary andu n a n t i c i p a t e ddevelopment. In noway should they bviewed ainconsistent with thmonetary policstance of calibratedexit, which remainfocussed o

containing inflatioand anchorini n f l a t i o n a rexpectations withouhurting growth.

The Reserve Banwill continue tomonitor thm a c r o e c o n o m ic o n d i t i o n sparticularly the pricsituation, and takfurther action awarranted.


15/18

04-07-2010 to 11-07-2010 15

GUJARATI HARD COPY AVAILABLE IN GUJARAT AND MUMBAI

Nobel Laureate in

conversation at QueensNobel Laureate

Professor Amartya Senwill be inconversation with theBBCs William Crawleyat a special event inThe Great Hall atQueens UniversityBelfast this evening(Monday, 5 July).

Regarded as one ofthe worlds greatestthinkers, therenowned Indianeconomist was rated

as one of the top tenintellectuals of themodern age byProspect magazinealongside NoamChomsky. He alsofeatured in Timemagazines 2010 list ofthe top 100 mostinfluential people inthe world.

The event atQueens University isheld in associationwith the BritishA c a d e m y

(represented by theChief Executive, RobinJackson) and the RoyalIrish Academy(represented byPresident NicholasCanny). Professor Senwill speak about hiswork on welfareeconomics, for whichhe was awarded theNobel Memorial Prizein Economics in 1998,and his latest book,The idea of Justice.

Professor Sen used

his Nobel Prize moneyto set up a trust fundto pay for initiatives tohelp people in need inIndia and Bangladesh.In recognition of thishe was awarded theIndian governmentshighest civilianhonour, theprestigious BharatRatna. He has alsoreceived theEisenhower Medal in

the United States forLeadership andService, and the LifeTime Achievementaward by the UnitedNations Economic and

Social Commission forAsia and the Pacific.Professor Peter

Gregson, QueensVice-Chancellor said:Professor AmartyaSen has rightly beenidentified as one of thegreatest intellectualsof our time. His workhas served to highlightand positively alterinjustices andinequality across theglobe. A role model forour staff and students,

we are privileged tohave him join us duringgraduation week atQueens.

Sir Adam Roberts,President of theBritish Academy, said:I have had theincredible privilege ofbeing a colleague ofAmartya Sens in threegreat institutions: theLondon School ofEconomics, OxfordUniversity, and theBritish Academy. He

has been a pioneer inexploring theconnections betweenliberty and theeffective tackling ofpoverty. In his hands,economics isdefinitely not thedismal science thatits sometimes said tobe. It is wonderful thathis huge contributionis being celebrated inBelfast.

Professor NicholasCanny, President ofthe Royal IrishAcademy added:Amartya Sen isdistinctive among

Nobel laureates inEconomics in givingpriority always to thepossible impact on thewellbeing of people,and particularly on thewellbeing of the weakand the vulnerable, ofwhatever economicpaths are chosen bygovernments.

T h econversazione eventcomes ahead of theconferment of anhonorary doctorate by

Queens on ProfessorSen for distinction ineconomics during the10.30am ceremonytomorrow morning(Tuesday, 6 July).

Ends.Media inquiries to

Lisa McElroy, Press andPR Unit. Tel: 00 44 (0)2890 97 5384 or email

Notes to EditorsProfessor Sen is

available forinterview. Pleasetelephone Anne

Langford on 00 44 (0)2890 97 5310 to arrange,Professor Amartya

Sen was born inNovember 1933 inSantiniketan, India. Heis considered as one ofthe greatestintellectuals andeconomists of modernIndia.

In addition to hiswork on welfare

economics, ProfessorSen is known for hiso u t s t a n d i n gcontribution to theunderlying causes ofpoverty and hunger,gender inequality,e c o n o m i cmeasurement, humandevelopment theoryand politicall i b e r a l i s m .Recognition forProfessor Sen has seen

him awarded withmore than 80 honorarydegrees from some ofthe worlds leadinginstitutions; the UKsCompanion of Honour(2000); the LeontifPrize from the GlobalDevelopment andEnvironment Institute( 2 0 0 0 ) ; t h eI n t e r n a t i o n a lHumanist Award fromthe International

Humanist and EthicaUnion (2002), LifetimAchievement Awardby the Indian Chambeof Commerce (2003)

If you would rathenot receive futurcommunications fromQueens UniversitBelfast, let us know byclicking here. QueenUniversity BelfastUniversity Road, Belfast, BT7 1NN United Kingdom

Power Grid to dilute 20%via follow-on public offerState-run Power

Grid Corporation ofIndia will launch itsfollow-on public offersoon and will dilute20% through this offer.

The company'sboard of directors haveapproved the follow-on public offer (FPO)of 20% of existing paid-up share capitalcomprising of 10%fresh issue of existingpaid up share capitaland 10% offer for sale(disinvestment) ofexisting paid up sharecapital by Governmentof India subject toapproval of theCabinet Committee on

Economic Affairs(CCEA), as per noticeavailable on the BSEwebsite.

The governmentcurrently holds 86.36%stake in Power Grid.Share closed at Rs103.45, up Rs 0.25, or0.24% on Friday. Thecompany marketcapitalisation stands atRs 43,540.46 crore.

Power Grid plans toinvest Rs 58,000 croreto build nine highcapacity corridors,reports CNBC-TV18,quoting sources.Power Grid expectsfunding for this projectfrom the World Bank

and the AsiaDevelopment Banand accruals from itfollow on public offer

These transmissiocorridors will link thNorth-East with siother states namelyOrissa, JharkhandChattisgarh SikkimTamil Nadu and Andhr

Pradesh. This projecwill be spread over aperiod of five years

The CentraElectricity RegulatorCommission (CERC) haalready given itclearance for theshigh capacity corridorsinform sources.

Technofab Engg IPO subscribed 12.78 timesThe initial public of-

fering of Technofab En-gineering (TEL) has re-

ceived overwhelmingresponse from inves-tors. The issue has sub-scribed 12.78 times, asper data available onNSE website.

The offering of 29.9lakh shares has re-ceived bids for 3.82crore equity shares. Amajor participation wasseen from non-institu-tional investors; theirreserved portion gotsubscribed 48.85 times.

Retail and qualifiedinstitutional investors'reserved portion sub-

scribed 10.03 times and4.28 times, respec-tively. Employee's re-served portion wasfully subscribed.

A price band for theissue was at Rs 230-240a share. The issue con-stituted 28.50% of thepost issue paid-up eq-uity capital and the netissue 28.03% of the postissue paid-up equitycapital of the company.

TEL, which

specialises in engineering, procuremenand construction ser

vices, plans to raise R68.77 crore at the loweend of the price bandand Rs 71.76 crore at thupper.

The company is engaged in the business oproviding EngineerinProcurement and Construction (EPC) servicesand executing a widrange of Balance-ofPlant (BoP) and electromechanical projects on complete turnkey basis


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04-07-2010 to 11-07-201016

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SONIA GANDHI LAYS FOUNDATION STONE OF ROHTANG TUNNEL

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