MARKET OUTLOOK 31AUGUST 2009

SATYAM RUNS MORE FAST TODAY <><><><><><

After a strong rally of 1,100 points or 7.5%, the Indian markets
decided to take a breather. The key indices fell for the first time in
seven trading sessions, with the sentiment hurt by yet another
steep fall in the Chinese market. The first-quarter GDP growth,
which was in line with expectations and better than the previous
quarter, could not arrest the slide.
The Shanghai SE Composite tumbled by 6.7%, the most in over 12
months. China has played a party pooper several times over the past few days amid worries over its banking system and its fallout on its fast-growing economy. There have been reports recently that the Chinese government is trying to curb bank lending and rapid growth in infrastructure projects. The Shanghai Composite has dropped by over 20% from the year’s peak. Barring the Realty and the Auto stocks, all the other major sectors were under the bear attack. However, the Mid-Caps and the Small-Cap were in demand. Major offloading was seen in the IT, Telecom and the Metal stocks. Technically, on Friday, it was the fifth time the NSE Nifty was unable to absorb the selling pressure at around the 4720-30 levels. In the recent past after hitting the 4,730 levels, the Nifty has corrected nearly 8% in merely 10 trading sessions. Are we again in for an 8-10% downfall? Only time will tell. The BSE Sensitve index, or the Sensex ended down 255.70 points, or 1.61 per cent at 15,666.64.
OUTLOOK: 2 day swing still in buy (both previous buy and sell were whipsaws) with reversal at 4645 spot. Strong resistance at 4800.....this is the 61.8% retracement of the entire correction from 6400 to 2200.

MARKET ENDED THIS WEEK 29 AUGUST 09

THIS WEEK
29 AUGUST 2009

SENSEX: 15379 +634(4.30%) , NIFTY :4569 +194 (4.43%), MIDCAP : 5770 +296 (5.42%). BANK NIFTY :7386 +155 (2.14%)
The Nifty closed at 2009 peak ignoring any possible fallout from drought, inflation, and fund flows and of course global cues. Impressive rollover of derivatives contracts in the month of September boosted sentiment. Finally, the BSE 30-share Sensex and NSE Nifty closed the week higher by 4.5% each.
The BSE Sensex hit an intra-week high of 15,957.6 and low of 15,362. While, NSE Nifty hit an intra-week high of 4,743.7 and low of 4,536.9
The Foreign Institutional Funds purchased Rs20.76bn during the week and the Domestic Institutional Funds were net buyers to the tune of Rs13.88bn during the week.
The top gainers: The top gainers in the Sensex were Tata Motors (up 13.3%), Wipro (up 10.1%),
L&T (up 9.1%), Reliance Capital (up 8.3%) and DLF (up 8.1%).
The Top Losers: The top losers in the Sensex were Tata Steel (down 1.4%), ONGC (down 1.1%),
HDFC Bank (down 0.6%) and Hindustan Unilever (down 0.2%).
The BSE IT Index (up 8%): The top gainers in the IT sector were Mahindra Satyam (up 15.5%),
Wipro (up 10.1%), Oracle Financial (up 8.9%) and Mphasis (up 8.4%).
HCL Tech surged over 9% during the week. According to an IIFL report released in the week,
“Higher transitioning on new deals, mostly related to the infrastructure services space, led to a better-than-expected 4% QoQ growth in revenues (constant-currency) at HCL Tech during 4QFY09. being signed in 4QFY09 (for comparison, US$1.5bn of new deals were signed in 9mFY09).
Against other vendors, HCL Tech’s dependence on new deals is high (only 88% of HCL’s revenue in 4Q came from repeat business, vs ~99% at Infosys, Wipro and TCS) and the ebb in new deal flow would have a larger impact on its growth. Our concerns over the bankruptcy of a large customer, continued decline in its BPO business and poor demand environment for Axon remain. We maintain Reduce”.
The top loser was Sasken Communication. The stock fell 5% during the week.

MARKET VIEW 27 AUGUST 2009

BEST IN THE RACE TODAY
The NSE Nifty hit the 4,700 mark for the first time since first
week of August, 2009 however was unable to hold on to the
psychological level as the bulls and bears fought it out on
F&O expiry day. Volatile trades were witnessed throughout
the day with the small-cap and mid-cap stocks continuing to
play catch-up with their frontline counterparts. The
Consumer Durables, Capital Goods and Pharma stocks were
among the major gainers. Sensex opened 58 points lower at 15,712. The BSE benchmark index touched a low of 15,685 in early trades, and thereafter rebounded in the noon trades to touch a high of 15,854.
The market breadth was positive, out of 2,843 shares traded, 1,640 advancedand 1,126 declined today.
The export-oriented sectors hogged the limelight as the government announced the Foreign Trade Policy. Also the Cycle manufacturing companies were in demand.
Tata Steel group posted a loss of Rs22.1bn in the Q1 as against Rs39bn profit inthe same period last year. Group sales were at Rs231.8bn as against Rs422.7bn adecline of 46.5% YoY. Other income was at Rs2.04bn versus Rs526.9mn in the corresponding year.

WRONGLY POSTED

SOORY

MARKET VIEW 26AUGUST 2009

RUN MORE FAST AS EXPECTED
......>>>>>>>>>>>LETS SEE TOMMORRO

The Sensex rose to a three-week high, led by smart rally in IT stocks on
the BSE today, following consumer confidence surge in the US, the
largest market for software exporters. The conference board's
confidence index climbed to 54.1 in August, its first gain in last three
months.
The Sensex opened with a positive gap of 75 points. The Sensex experienced a brief slippage and touched a low of 15,695, after a report on industrial output was declared. The growth of six core infrastructure industries - petroleum refinery, crude oil, coal, electricity, cement and finished steel, decreased to 1.8% in July, as against 5.1% a year ago, as petroleum refinery output acted as a drag on the sector. However, the prevalent positive sentiment earlier in the day helped the markets to trade in the green for the rest of the day. The Sensex touched an intra-day high of 15,831, up 143 points and finally settled at 15,769, up 81 points. The NSE Nifty settled at 4,680, up 21 points. The BSE midcap and small cap indices outperformed the broader market. The midcap index advanced over 1% to 5,800 and the small cap index gained nearly 2% to close at 6,878. The market breadth was positive - out of 2,867 stocks, 1,941 advanced and 853declined today INDEXMOVERS...
Among the sectoral indices, IT index surged 3.5% to 4,272. Infosys rallied over 4% to Rs 2,181. TCS surged nearly 4% to Rs 548. Tech Mahindra gained 3.5% at Rs 921. Wipro added 2.5% to Rs 557.Sterlite soared nearly 4% to Rs 680. Reliance Communications gained nearly 2% to Rs 267.
Tata Motors, Tata Power and DLF added around 1.5% each to Rs 498, Rs 1,334 and Rs 399, respectively. Sun Pharma and ACC also advanced 1.5% to Rs 1,208 and Rs 799, respectively. Among the Nifty stocks, Axis Bank gained nearly 2% to Rs 933 and Suzlon was up 1.5% to Rs 93.
...AND THE SHAKERS
Hindustan Unilever declined over 2% to Rs 262. HDFC Bank shed 1.5% to Rs 1,459. Hero Honda was down over 1% to Rs 1,497. Among the Nifty losers, Jindal Steel and Ranbaxy slipped 2.5% to Rs 3,175 and Rs 335, respectively.