MARKET ENDED 08 .02.2010 monday

Gainers

MARKET ENDED 08.02.2010

SENSEX 15935.61 +19.96

NIFTY 4760.40 +3.15

NASDAQ 2190.06 +18.86

DJIA 10296.85 +111.32

RS/$ 46.25 + 0.9

NIFTY GAINERS

JubilantFood 229.10 + 58.00

Tulsyan NEC 101.20 + 19.27

KineticMotor 30.10 + 16.67

Jindal Photo 177.40 + 14.01

NorbenTea&Ex 12.20 + 10.91

Indian equities bounced back from crucial support levels and ended a volatile session on a flat-to-positive note Monday. Losses in metals, auto and IT were offset by gains in FMCG, banks and realty.Indices opened lower mirroring losses in the Asian markets. Government’s forecast of 7.2 per cent GDP growth against 6.7 per cent achieved in previous fiscal sent the market in a tizzy as sentiments turned bearish on fears that the government may start unwinding stimulus package in the forthcoming budget to reduce fiscal deficit.Government on Monday forecast GDP estimate for FY10 at 7.2% higher 6.7% growth seen in FY09. This was due to better-than-expected agriculture output with agri growth coming at -0.2%, Industry was up 8.2% while services were up 8.7%.

Given the less-than-expected decline in agriculture in FY10, we have adjusted our FY11 agriculture estimate from 5% to 4% and marginally upped services. However given receding headwinds to consumption, investments and outsourcing, coupled with government initiatives on inclusive growth, we believe India has the potential to move back to the 8%-9% growth path. We maintain our FY11 GDP estimate of 8.4% and of rates rising 125bps

However, the fall was arrested as benchmarks reached crucial support levels. Indices rebounded on the back of short coverings and positive European markets.

National Stock Exchange’s Nifty ended at 4760.40, up 3.15 points or 0.07 per cent. The index bounced back from close to its 200 DMA of 4650. It touched an intra-day low of 4675.40 and high of 4799.05.

Bombay Stock Exchange’s Sensex closed at 15,935.61, higher by 19.96 points or 0.13 per cent. The 30-share index hit a high of 16061.41 and low of 15651.99.

Indices are likely to face resistance at the 16150-16350-16500/4750-4800-4850 levels. Any surge in the indices may see profit taking around the indicated resistances. Downside supports are placed at the 15650-15500-15300/4700-4650-4600 levels.

Depending on the global cues we expect to see slight recovery from the mentioned supports and the trades could be influenced by strong moves sectorally. Any move until the above mentioned resistances shall be utilised to exit long positions and look out for a sustainable move. However, looking at the broader scenario we advise investors to play the broad range movement with caution and strict stop losses The broader market ended in the negative terrain. BSE Midcap Index was down 0.09 per cent and BSE Smallcap Index moved 0.08 per cent lower.

Amongst the sectoral indices, BSE Metal Index was down 1.38 per cent and BSE Auto Index slipped 0.21 per cent. BSE Bankex Index was up 0.49 per cent and BSE Capital Goods Index moved 0.56 per cent higher.

Among Sensex gainers, Bharti Airtel (2.7%), Reliance Communications (2.21%), ONGC (1.82%), Hindustan Unilever (1.75%) and Mahindra & Mahindra (1.48%) ended higher.

Tata Steel (-4.46, Hindalco Industries (-3.75, Wipro (-1.74), Jaiprakash Associates (-1.29%) and NTPC (-1.29%) were the losers.

Market breadth on BSE ended negative with 1444 declines against 1329 advances.

European markets were in the green led by commodities and banks and the US stock futures indicated a positive start. At 4:30 pm, Dow Jones and S&P 500 stock futures was up 0.11 per cent respectively. Nasdaq 100 gained 0.06 per cent.

Regards,

RAKESH MAKIN

Chugh securities Pvt Ltd

+91 9915684997,9041667797(DIRECT)

OFF 0172-4657997

PANCHKULA (Haryana).

Email:makin_97@yahoo.com

Email:rakeshmakin@yahoo.com

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