Nifty (5702.3)

The move from the 5070 low that started last week appears to have ample steam left to drive the index higher to 5783 or even 5977. But investors ought to stay wary until the index moves firmly beyond the previous peak at 5736. The short term support for the Nifty lies at 5522 and then 5469. Traders can buy in dips as long the index remains above the second support.

The target for the fifth wave from 3573 falls at 5611, 5927 and then 6290. If the rally continues beyond 5800, then we can peg the next medium term target at 5927. The medium term outlook will turn negative only if the index falls below 5317.

Global Cues

CBOE Volatility Index that measures investors’ fear level, fell to 19 by Friday after recording a short-term high at 24 in the previous week. This implies that investor’s trepidation decreased last week as global equities stabilised themselves. The DJIA, which led the previous week’s sell-off, recovered after a minor wobble on Monday. But the short-term outlook for this index stays negative as long as it remains below 13900. Asian markets (with the exception of Japan) turned in a strong performance. Latin American markets were relatively subdued.

Nymex crude created a flutter on Friday by recording a new peak at $92.2. The commodity bounced off the support at $84 indicated last week. The near term targets remain at $94 and then $103. It would be interesting to see how equities react to crude at $100!

Corporate News:

• Hon'ble High Court approves scheme of arrangement of Rain Calcining
• Modern Steels allots equity shares
• Hon'ble High Court approves scheme of arrangement of Rain Commodities
• Zyden Gentec appoints additional director
• Sundaram Multi Pap to convene board meeting
• Jyoti Structures grants stock options
• California Software get partners with Marketics Technologies
• Vikas WSP appoints directors
• SREI Infrastructure Finance to allot warrants
• KPR Mill declares interim dividend
• Kamat Hotels India acquires 60% stake
• Kamat Hotels India's wholetime technical director resigns
• Godrej Consumer Products to raise funds
• Arvind Mills appoints director
• Tamil Nadu Newsprint & Papers declares interim dividend
• Kansai Nerolac Paints appoints director
• Platinum Corporation to convene EGM
• Avon Organics to issue equity shares
• Nile declares interim dividend
• Quintegra Solutions to convene EGM
• Nagarjuna Agrichem recommends interim dividend
• India Tourism Development Corporation appoints director
• Temptation Foods' CEO resigns
• Cairn India to raise funds
• Banco Products India to issue equity shares
• Ankit Metal & Power commences its commercial production
• Lanco Infratech enters into MOU with Gulfainer Company
• Entertainment Network India commences its broadcast
• Jai Balaji Industries to purchase entire shareholdings
• Radha Madhav Corporation to raise funds
• Indiaco Ventures appoints additional directors
• Banco Products India appoints director

• Corporate News:
• Sterling Biotech to announce Q3 results
• Kerala Ayurveda's subsidiary acquires CMS-Katra Nursing
• Spicejet signs agreement with Air India
• Rajesh Exports recommends stock split
• Ingersoll Rand India declares interim dividend
• Prajay Engineers Syndicate to increase authorized capital
• Media Matrix Worldwide to acquire PKTSPL
• Aftek allots equity shares
• Sujana Towers to issue warrants & debentures
• Kappac Pharma to appoint directors
• Surya Pharmaceutical's director resigns
• Mold Tek Technologies allots equity shares
• Pochiraju Industries to announce quarterly results
• Shivalik Global changes its name
• Parsoli Corporation approves scheme of arrangement
• Binani Cement to appoint directors
• Aban Offshore allots equity shares
• HDFC allots equity shares
• Sabero Organics Gujarat to announce quarterly results
• Millars India declares interim dividend
• Lloyds Metals & Engineers allots warrants
• VSNL to announce Q2 results
• Sanghvi Movers allots equity shares
• Ennore Foundries to establish new projects
• Cambridge Solutions to announce financial results
• Ion Exchange India allots equity shares
• Reliance Natural Resources allots equity shares
• VSNL appoints director
• Power Grid Corporation of India to announce Q2 results
• Jumbo Bag appoints directors
• Hindustan Zinc declares interim dividend
• Bombay Dyeing & Manufacturing Company to announce Q2 results
• Murli Industries to announce quaterly results
• 3i Infotech allots equity shares
• Cals allots equity shares
• Rap Media executes agreements with Adlabs Films
• IQMS Software appoints director
• Rolta India recommends bonus issue
• KS Oils to allot equity shares
• ITD Cementation India to issue equity shares
• Patel Engineering grants options
• Dewan Housing Finance Corporation declares interim dividend
• Sonata Software declares interim dividend
• Orient Paper & Industries to diversify its activities into manufacturing
• and marketing
• HCL Infosystems declares interim dividend
• Orient Paper & Industries declares interim dividend
• Accentia Technologies to allot equity shares & warrants
• JK Paper commences commercial production
• Network allots equity shares
• JMT Auto bags order from giant Auto and Engineering & Eaton
• IL&FS Investment Managers' directors resigns
• BPL allots equity shares
• GE signs agreement with Triveni Engineering & Industries
• KEC Infrastructures allots equity shares
• Tyche Peripheral to issue warrants
• Karuturi Networks acquires Sher Agencies
• Ranbaxy Laboratories receives approval to market ran
• Parsvnath Developers launches royale villas
• Ispat Industries re-schedules board meeting
• DLF to announce Q2 results
• Foseco India declares third interim dividend
• Alstom Projects India to announce Q2 results
• Pyramid Saimira Theatre to allot convertible warrants
• Tyche Peripheral Systems signs in share holders' agreement
• IMP Powers secures order from renowned EPC contractor
• Arrow Coated Products allots equity shares
• Powersoft Global Solutions to allot warrants
• Kewal Kiran Clothing raises funds
• Ram Ratna Wires to announce quarterly results
• Southern Iron & Steel to announce financial results
• Remsons Industries enters into joint venture
• JSW Steel to convene board meeting
• Amtek India allots equity shares
• Dredging Corporation of India to announce Q2 results
• Sterlite Optical Technologies to announce Q2 results
• Sun Pharma Advanced Research allots equity shares
• MSK Projects India allots equity shares
• Havells India to issue equity shares & warrants
• Parsoli Corporation declares interim dividend
• Steel Strips & Tubes to implement projects
• Intense Technologies to allot equity shares & warrants
• Orient Information Technology to amalgamate with IT People
• India Infoline to issue equity warrants
• Kewal Kiran Clothing declares interim dividend

Markets may dip further on back of weak global markets and move down to 16800-17000 Sensex and 4950-5000 mark on the Nifty. Technically these are important levels for the markets. I recommend investors to be buyers and accumulate stocks on any Declines.

Intraday Recommendations:

Buy Ster Optical around 257 for a tgt of 272-292 SL 226
Buy IVRCL Infra on declines 415-418 for a tgt of 445-452 SL 400
Buy United Spirits on declines at 1650-1660 for a tgt of 1745-1772 SL 1616

F&O Recommendations:

Buy Bank Nifty on declines at 7300 for a tgt of 7545-7835 SL 7177
Buy ACC on declines at 970-990 for a tgt of 1120-1150 SL 950
Buy IDBI on declines at 115-118 for a tgt of 133-140 SL 112
Buy Parsvnath on declines at 318-324 for tgt of 350-360 SL 315

All the best for your trading.....

Market sees fourth straight session of losses on P-Note worries:

The market posted losses for the fourth straight day, on sustained selling pressure triggered by worries that official attempts to moderate FII inflows would see foreigners pull out funds. The market declined sharply in first half of the trading session, but recovered some ground on value buying coupled with short covering at lower level later. Intense volatility was the hallmark of the day’s session, with the market swinging sharply. European markets and Asian markets were trading lower today, 19 October 2007.

FII selling hit the bourses for the third day in a row today following market regulator Securities & Exchange Board of India's proposals to clamp down FII inflow through the participatory notes (PN) route.

After trading hours on Tuesday, 16 October 2007, Securities & Exchange Board of India issued draft proposals wherein the market regulator proposed restriction on use of the popular participatory notes (PNs) route of FII inflow and it also recommended unwinding of some PNs within 18 months. PNs are financial instruments used by foreign investors that are not registered with Sebi, to invest in Indian shares. FIIs and their sub-accounts buy Indian securities and then issue PNs to foreign investors with these securities as the underlying.

Given the large scale of the aggregate PN holding relative to new flows, even a partial unwinding of positions can put considerable pressure on stocks such as Reliance Energy, Reliance Petroleum, ONGC, IndiaBulls Financials, IndiaBulls Real Estate and Axis Bank which have had a significant run-up in the past few weeks or have high share of PN in their foreign holding, brokerage CLSA said in a recent note.

Further, analysts reckon that with restriction on participatory notes, the near term FII inflow may be affected given that the participatory notes contributed substantially to FII inflows on the bourses over the past few months and it will take some time for the FIIs currently using the PN route to get registered with the market regulator.

Franklin Templeton Investment (FTI), which operates one of the leading mutual funds in India, however, feels that inflow to India from long-term global investors will not be impacted due to these measures given that India’s economic and corporate fundamentals remain robust.

Volatility is expected to remain high for in coming few days ahead of expiry of October 2007 derivatives contracts on Thursday, 25 October 2007.

Meanwhile, the finance minister P Chidambaram said after market hours on 18 October 2007 that Securities and Exchange Board of India (Sebi) can extend the 18-month window allowed for winding down of participatory notes already issued with derivatives as the underlying. Sebi will decide on 25 October 2007 on new rules to limit the use of offshore derivatives to invest in Indian stocks. He added that motivated rumours by Mumbai broker circles had brought down the stock market 18 October 2007.
Source:Capital Market

MARKET OUTLOOK 19-10-2007

It seems that the market participants have yet to absorb the ripples created by Sebi’s proposal to clamp down participatory notes. As the markets were coming to terms with the effect of the Sebi proposal motivated rumors were floated in the market on Prime minister’s resignation and increase in margins to decidedly pull it down. Earlier in the day, Nifty futures opened on a Strong note and moved up to test the all time high of 5747 and from there crashed to touch a low of 5191, an intraday fall of 556 points from the top before settling with a loss of 242.25 points. Technically, its immediate support is now around 5300 and below that 5224 is a strong support. As long as it sustains above this level on declines, the uptrend remains intact. A decisive breach of 5224 may take it down to 5060 with some support at 5100. Below 4990 the short and intermediate term trend will turn weak. Nifty futures must now sustain decisively above 5475 to signal strength, above 5620 to signal bullishness and above 5765 to signal resumption of uptrend. Its immediate resistance is at 5365.

Resistance: 5365, 5400, 5415, 5475, 5500, 5560,5620, 5700, 5725, 5765
Support: 5300, 5265, 5224, 5200, 5190, 5060

Source: Religare

FIIs can rollover PNs up to 18 months: Sebi

(Sebi’s clarification came after the Sensex crashed by over 1,700 points within minutes of commence of trading, leading to closure of the markets for an hour)

Mumbai: In a bid to calm the investors, market regulator Securities and Exchange Board of India (Sebi) today said Foreign Institutional Investors would be allowed rollover Participatory Notes in derivatives market, provided it does not exceed the 18-month limit.
“It is made clear that there is no proposal to bar an Overseas Derivative Instrument (ODI) contract expiring this month or in the following months, being renewed provided the renewal does not go beyond 18 months,” Sebi said in a clarification to its draft discussion paper on ODI that includes Participatory Notes (PNs).
The Sebi clarification clears the air of uncertainty over the fate of renewal of PNs that are due to expire this month or will expire in the coming months.
SEBI had yesterday invited public comments on its proposal to restrict with immediate effect, issuance of PNs in derivative markets by FIIs and their agents.
As per the proposals, FIIs and their sub-accounts are required to wind up the current ODI position over 18 months, during which Sebi will review the position from time to time.
Sebi has sought comments from public by 20 October on its discussion paper, which Finance Minister P Chidambaram today said will become regulations “with or without some modifications.”
Sebi’s clarification came after the Sensex crashed by over 1,700 points within minutes of commence of trading, leading to closure of the markets for an hour. The markets, however, have recovered considerably after an assurance by the Finance Minister that there is no proposal to completely ban Participatory Notes.

Source:Livemint

Sensex pares declines after trading halt:

MUMBAI: The stock markets recovered from an almost 10 per cent slump that had shut down exchanges for an hour on Wednesday after the capital market regulator said restrictions on overseas investment won't lead to a complete ban.

The Securities & Exchange Board of India said investors who buy shares anonymously, using derivatives known as participatory notes, would have 18 months to switch to investing directly in the market.

There is no "intention to ban issue of such instruments," the Government said in a statement today. The Bombay Stock Exchange's Sensitive Index of 30 companies, or Sensex, fell as low as 17,307.90, closing 1.8 per cent down at 18,715.82 in Mumbai. The Ni fty closed at 5559.30, down by 108.75 points

Markets hit life time high at 18844 & was on course for another peak at 19K, but profit booking on the last day of the week ensured that the same was not achieved. Markets have run up almost 5000 points in 8 weeks and have now approached major resistance areas at 5550-5560. Unless these levels are cleared on the upward side markets could take a breather at current levels. On the lower side levels of 5390-5395 act as important support areas, a close below which could trigger a downward movement. We advice to remain cautious at current levels and avoid fresh buying positions.

US markets were POSITIVE & Asian markets are trading MIXED.
Levels for NIFTY - support at 5405-5382-5360 & resistance at 5450-5472-5495.
Overall bias for markets is Positive but expect volatility due to results season

Stocks with +ve bias: Power stocks (NTPC, Power Grid, Tata Power, Rel Energy, Siemens), Cement stocks (India cement, Grasim, Acc - due to better results expecatations)

Stocks for Short-term delivery: Jindal Stainless, Fin services stocks (india bulls, motilal, india info) likely to do well as most of the cos doing well due to record volumes on the exchanges.

Stocks for Investment: Grasim, BL Kashyap, Shiv vani Oil & Glenmark Pharma.

Tips for 15-10-2007

WEEKLY:
BUY JKTYRES(530007) ON DECLINES 115 TARGET 133-148-160 SL 110
BUY TCS ON DECLINES 1046-1050 TARGET 1105-1164 SL 1023
BUY VSNL ON DECLINES 492-500 TARGET 583-640-725 SL 445
BUY SUNPHARMA ON DECLINES TARGET 993-1024 SL 915
POSITIONAL FUTURES:
BUY CHAMBALFERT ON DECLINES 49-51 TARGET 61-68 SL 47
BUY HINDALCO ON DECLINES 170-174 TARGET 190-198 SL 166
BUY INFOSYS ON DECLINES 1890-1920 TARGET 2080-2130 SL 1860
BUY SATYAMCOMP ON DECLINES 434-440 TARGET 466-480 SL 428
INTRADAY:
BUY GAIL ON DIPS 400 TARGET 422 SL 390
BUY BATA ON DIPS 200 TARGET 225-230 SL 190
BUY JPASSOCIATES ON DIPS TARGET 1308-1335 SL 1219
BUY BAGFILMS ON DIPS 83 TARGET 88-90 SL 80

intraday, Short term and future tips for 10-10-2007

SHORTTERM:

BUY AIAENG ON DECLINES 1200 TARGET 1272-1346 SL 1167

BUY EDUCOMP ON DECLINES 2757 TARGET 2878-2915-2986 SL 2621

POSITIONAL FUTURES:

BUY JPHYDRO ON DECLINES 69-71 TARGET 82-88 SL 67

BUY MRPL ON DECLINES 59-61 TARGET 74-79 SL 57

BUY PETRONET ON DECLINES 74-76 TARGET 87-93 SL 72

BUY RNRL ON DECLINES 86-89 TARGET 101-108 SL 83

INTRADAY:

BUY ABB ON DIPS 1360 TARGET 1430-1440 SL 1342

BUY REL ON DIPS 1510 TARGET 1600-1630 SL 1489

BUY ACC ON DIPS 1170 TARGET 1230-1250 SL 1160

BUY SIEMENS ON DIPS 1390 TARGET 1430-1470 SL 1365

Markets lost ground before encountering stiff resistance in moving above 18K mark. The rift between the Congress & the Left created ripples in the markets, which are anticipating an early mid-term election. While markets are finding it hard to move above 5250 levels, there has been strong buying support at 5025-5030 mark. Market bias yet remains positive till the level of 5025 is not broken on the downside. We expect markets to take support at current levels and take a breather for a day or two before making another high. Bias remains positive.

Intraday:

Buy NIIT TECH @ declines (330-336) for a tgt of 370 sl 334
Buy TATA MOTORS @ declines (740-750) for a tgt of 795 sl 730

F & O:

Buy Arvind Mills at 54-56 for a tgt of 72 sl 67
Buy IOC at 456-462 for a tgt of 490 sl 450

Short term:

Buy Plethico around 422-425 for a tgt of 450 sl 413
Buy Taj GVK Hotels around 138-140 for a tgt of 155/16A

All the best.

MARKET OUTLOOK

Sensex came within striking distance of 18K but sharp and volatile movements made the task tougher for the Bulls to achieve that milestone. The Bulls have had a merry time with the sensex rising by more than 2500 points in the last 2-3 weeks. Higher Liquidity in terms of FII inflows have been largely responsible for the steep climb up the hill. Going ahead markets could take a breather for a day or two ahead of the earnings season and volatility is expected to be on the higher side. Levels of 5000-5025 act as crucial support while strong resistance could be seen at 5250-5260 mark. Bias is yet positive.

Futures:

Buy Amtek Auto @ declines for a tgt of 380 sl 350
Buy Cipla @declines for a target of 180-183 sl 175

Intraday:

Buy BIOCON @CMP 503 SL 495 TARGET 510-515-520
Buy Satyam Comp @ declines for a tgt of 440 sl 428
Buy IDBI @ declines for a tgt of 135-140 sl 132

Short term:

Buy Amtek India @ 176 for a tgt of 186 & 205
Buy Igate Solutions @ 240 for a tgt of 258& 275

Have a nice Trading day
All the best.

Corporate News:

Kpit Cummins Infosystems to provide free technical support.
i-flex Solutions acquires 100% stake.
LG Balakrishnan & Bros to announce unaudited results.
SKF India to announce Q3 results.
Refex Refrigerants receives special import license.
Phoenix Mills to allot equity shares.
Gammon India's director expired.
Larsen & Toubro allots underlying shares.
Micro Technologies launches an innovative Shop Security System.
Bala Techno Global's board to approve scheme of arrangement.
IT People India to convene board meeting.
Bharat Petroleum Corporation to announce Q2 results.
Rane Madras executes an agreement for sale.
JIK Industries to issue equity shares.
Indowind Energy to convene board meeting.
Continental Controls to convene board meeting.
Glenmark Pharmaceuticals receives emerging company of the year 2007 award.
Cinevistaas to convene board meeting.
Great Offshore allots unsecured FCCB.
Aurionpro Solutions invests in PaySimple.
Mcleod Russel India acquires equity shares of The Moran Tea Company.
Sharon Bio Medicine takes over 100% equity shares of Mumbai based company.
Allahabad Bank to announce Q2 results.
DLF to convene board meeting.
Sasken Communication Technologies enters into agreement with EMS SATCOM.
Nicholas Piramal India to merge with NPIL Healthcare.
Sical Logistics bags "Best Bulk Logistics Provider" award.
Amar Remedies's director resigns.
GlaxoSmithkline Consumer Healthcare to announce Q3 results.
Wyeth to announce Q2 results.
Hind Rectifiers signs technical collaboration agreement.
Petron Engineering Construction receives contract from VEDANTA ALUMINA.
JSW Steel posts highest ever quarterly crude steel production.
Lanco Infratech bags order worth Rs 730 million.
Sterlite Optical Technologies allots equity shares.
Compulink Systems signs up with QAI.
Satyam Computer Services allots equity shares.
Surana Industries establishes eight wind mills.
Shree Renuka Sugars to issue equity shares & warrants.
New Delhi Television allots shares.
Bank of Baroda signs definitive agreements with Pioneer Global Asset Management.
Sky Industries to convene AGM.
Lloyds Metals & Engineers to issue warrants.
Sujana Universal Industries converts warrants.
Champagne Indage appoints vice-chairman.
Jhagadia Copper's nominee director resigns.
Champagne Vineyards appoints vice-chairman.
Ashapura Minechem's subsidiary to set up a joint venture company.
Jai Balaji Industries to sign MOU with Government of West Bengal, WBIDCL & WBMTDCL.
HDFC allots equity shares.
Pan Packaging Industries acquires 65000 square yard land.
Bhagwandas Metal to announce unaudited results.
Motilal Oswal to announce Q2 results.
GTL allots share warrants.
Jaihind Projects receives order from BRPL (STEMCOR Group of U.K.).
Bhartiya International appoints additional director.
Consolidated Securities appoints additional director.
Bharat Earth Movers changes its name.
Pidilite Industries to announce Q2 results.
MRF crosses Rs 5000 crore mark.
Karnataka Bank approves preferential allotment.
GEE to allot equity shares.
Aurobindo Pharma receives UK-MHRA clearance.
Steel Authority of India to announce Q2 results.
CS Software Enterprise receives orders from Maharashtra State Electricity Distribution.
Orbit Corporation's equity shareholders to approve scheme of amalgamation.

For intraday, shortterm and future recommendations for 05-10-2007

POSITIONAL FUTURES:

BUY HINDPETRO FUTURE ON DECLINES 260-266 TARGET 291-300 SL 254

BUY HEROHONDA FUTURE ON DECLINES 710-718 TARGET 755-768 SL 702

BUY NAGARCONST FUTURE ON DECLINES 260-266 TARGET 310-324 SL 254

BUY ONGC FUTURE ON DECLINES 967-982 TARGETS 1065-1090 SL 952

SHORT TERM:

BUY NITINFIRE ON DECLINES 405-409 TARGET 431-452 SL 398

BUY TULIP ON DECLINES 835-840 TARGET 889-906 SL 826

BUY SPICEJET ON DECLINES 63-64 TARGET 69-73-78 SL 59

INTRADAY:

BUY ABB ON DIPS TARGET 1390-1425 SL 1315

BUY PTC ON DIPS TARGET 105-107 SL 91

BUY GAIL ON DIPS TARGET 400-410 SL 370

BUY VSNL ON DIPS TARGET 470-500 SL 439

For intraday, shortterm and future recommendations for 04-10-2007

POSITIONAL FUTURES:

BUY INDUSINDBK FUTURE AT DECLINES 68-70 TARGET 82-90 SL 66

BUY PRAJIND FUTURE AT DECLINES 230-235 TARGET 260-272 SL 225

BUY SOBHA FUTURE AT DECLINES 865-880 TARGET 940-960 SL 850

BUY TRIVENI FUTURE AT DECLINES 101-107 TARGET 128-136 SL 95

FOR SHORT TERM:

BUY MAHSEAMLESS AT DECLINES 585-592 TARGET 624-642-654 SL 572

BUY RADICO AT DECLINES 190-193 TARGET 218-220-270 SL 183

INTRADAY:

BUY LT ON DIPS TARGET 3000-3050 SL 2840

BUY BHARTIARTL ON DIPS TARGET 1020 SL 940

BUY GHCL ON DIPS TARGET 164 SL 148

BUY IDFC ON DIPS TARGET 170 SL 148