Market Wrap

A post market analysis

14th October 2011

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Market Overview
INDEX NIFTY SENSEX BANK NIFTY Close 5077.85 16883.92 9591.25 Chng -21.55 -74.47 108.95 %Chng. -0.42 -0.44 1.15

Volatility continued in late trade as key benchmark indices weakened once again to hit fresh intraday lows after staging a recovery from the negative terrain to move into positive zone in mid-afternoon trade. Weak European shares weighed on sentiment. The barometer index BSE Sensex fell below the psychological 17,000 mark, having alternately moved above and below that mark in intraday trade. The Sensex was provisionally down 103.20 points or 0.61%, off about 230 points from the day's high. The market breadth turned negative from positive in late trade. The market was volatile. A firm opening took the barometer index BSE Sensex to a 3-week high above the psychological 17,000 level. The market trimmed intraday gains to hit fresh intraday low in morning trade. The market slipped into the red to hit fresh intraday low in mid-morning trade. The Sensex fell below 17,000 level. The market alternately swung between gains and losses in early afternoon trade. The market regained strength in afternoon trade, with the Sensex reclaiming the psychological 17,000 mark.

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Index CNX IT CNX FMCG CNX PSE CNX MNC CNX SERVICE CNX ENERGY CNX PHARMA CNX INFRA CNX PSU BANK CNX AUTO
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Last Value 5978.55 10062.60 3078.75 4655.30 6107.90 7965.10 4519.45 2633.05 3215.65 3659.30

Change 44.30 -61.60 -37.15 -38.90 19.40 -71.65 -47.75 -27.65 17.35 -46.60

% Change 0.75 -0.61 -1.19 -0.83 0.32 -0.89 -1.05 -1.04 0.54 -1.26
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Sectoral Performance
u

Index heavyweight Reliance Industries (RIL) fell 0.31% to Rs 846.85. The stock was volatile, gyrating between a high of Rs 857 and a low of Rs 842. FMCG stocks fell on profit taking. Nestle India, ITC, Hindustan Unilever, and Godrej Consumer fell by between 0.01% to 0.88%. From the metal space, Tata Steel, Sesa Goa and Sterlite rose 1% each while JSPL, Coal India, SAIL and Hindalco fell 1-2%. Capital goods stocks declined in a weak market. L&T, Bhel, Siemens, BEML shed by between 0.46% to 2.03%. IT bellwether Infosys rose 0.58%, extending Wednesday's 6.83% surge triggered by good Q2 results and upward revision in full year earnings guidance. TCS gained 0.99%, extending Wednesday's 3.66% gains. India's third largest software services exporter Wipro fell 0.57% after Wednesday's 2.71% rise. Interest rate sensitive banking stocks extended their recent rally triggered by hopes a slowing economy could prompt the Reserve Bank of India (RBI) to pause on rate increases this month. India's second largest private sector bank by net profit HDFC Bank rose 0.62%, with the stock gaining for the fifth straight day. India's largest private sector bank by net profit ICICI Bank rose 2.29%, extending Wednesday's 3.24% jump. State Bank of India (SBI) rose 0.33%, extending Wednesday's 6.07%. Interest rate sensitive realty stocks extended their recent rally triggered by hopes a slowing economy could prompt the Reserve Bank of India (RBI) to pause on rate increases this month. Purchases of both residential and commercial property are largely driven by finance. DLF, HDIL, Phoenix Mills and Sunteck Realty rose by between 0.51% to 2.63%. Among midcap space, Hathway Cable, Zydus Wellness, Hotel Leela, Manappuram Finance and Voltas gained 3-9% while KGN Industries, Bajaj Electricals, India Securities, Kwality Dairy and Maharashtra Seamless lost 3-5%.

Technical View
Intraday Levels: For Next Trading Session LEVELS R3 R2 R1 Pivot Point S1 S2 S3 NIFTY 5273.48 5196.21 5155.53 5078.26 5037.58 4960.31 4919.63 BANK NIFTY 10000.00 9769.00 9647.00 9416.00 9294.00 9063.00 8941.00

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Nifty

taken support at 50 DMA which is currently valued at 5030 level. Prices are above to that level so if it sustains above that level for few trading sessions then further rise in prices can be expected over the next few trading sessions.

uThe support for Nifty is at 5015 and 4990. uThe resistance for Nifty is at 5075 and 5140. uAccording to daily chart, Nifty Future prices have

Bank Nifty

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uThe supports for Bank Nifty are 9525 and 9385. uThe resistance for Bank Nifty is at 9600 and 9705. uAccording to daily chart, Bank Nifty Future prices have

exhibited a trend line which has taken support at 9525 level. Prices are closed at same level so if it breaks that level and sustains below in then further fall in prices can be expected over the next few trading sessions.

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Daily News
Business news
uIIFCL's capital base to be hiked to Rs 5,000 cr. uSuzlon Rs 890 cr stake sale in Hansen Transmissions concluded. uSomany Ceramics to buy 26% stake in Vintage Tiles. uTata may cut Europe steel output if order books weak.

Economic News
uOilMin allocates 7.23 mmscmd of ONGC gas to power, fert uCabinet approves overseas raw material acquisition policy. uFood inflation eases marginally to 9.32% on Oct 1. uRailways to raise Rs 10k-cr via tax-free bonds.

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ARBITRAGE OPPORTUNITIES COMPANY NSE CMP (Rs.) Industrial Investment Trust 151.55 Renaissance Jewellery 94.70 IP Rings 62.00 Cura Technologies 120.00 Winsome Yarns 25.40 KSE 219.80 IMP Powers 73.95 Kovai Medical Center & Hospital 120.00 Zodiac-JRD-MKJ 23.85 Uniphos Enterprises 27.60 ADVANCES/DECLINES GROUP NIFTY BANK NIFTY NIFTY 500 ADVANCES 13 8 217 DECLINES 37 4 270 UNCHANGED 0 0 13 BSE CMP (Rs.) 135.70 88.75 58.50 113.70 24.30 210.85 70.95 115.50 23.00 26.65 Diff (Rs.) 15.85 5.95 3.50 6.30 1.10 8.95 3.00 4.50 0.85 0.95 Chg. (%) 10.5 6.3 5.6 5.3 4.3 4.1 4.1 3.8 3.6 3.4

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Open Interest
Index Future Underlying Asset Nifty Future Bank Nifty Future Mini Nifty Future LTP 5114.85 9525.00 5116.25 Strike Price Open Int. 23536700 2271475 783040 Expiry OCT2011 OCT2011 OCT2011

Stock Future Underlying Asset TATAMOTORS HINDALCO DLF LTP 182.80 133.60 235.00 Strike Price Open Int. 47778750 26737000 23612000 Expiry OCT2011 OCT2011 OCT2011

Index Option Underlying Asset NIFTY NIFTY NIFTY Option Type PE PE PE Strike Price 4800.00 4700.00 4900.00 Open Int. 8362950 7652750 6339050 Expiry OCT2011 OCT2011 OCT2011

Stock Option Underlying Asset SBIN SBIN INFY Option Type CE CE PE Strike Price 1850.00 2000.00 2500.00 Open Int. 588500 449000 439875 Expiry OCT2011 OCT2011 OCT2011

Put Call Ratio Underlying Asset RELIANCE IND SBIN TATA MOTORS DLF INFOSYS NIFTY TOTAL Put Volume 1355750 1418500 6291250 3637000 3542625 107598000 153511373 Call Volume 1757000 3817125 4780000 3218000 3201250 96065500 207697456 P/C Ratio 0.77 0.37 1.32 1.13 1.11 1.12 0.74

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