Global Research Limited

EQUITY
Market
Week : Aug 15th to 19th Aug 2011

REPORT

WEEKLY
Analyst Speak

Nifty Reclaim Below 5100 Mark

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segment

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Week : Aug 15th to 19th Aug 2011

Week : Aug 15th to 19th Aug 2011

Global Market News

Weekly Wrap
The markets declined as investors remained cautious over murky global outlook and expectations that the Reserve Bank of India would continue to hike rates after better than expected industrial output data. The Nifty opened in the green and touched a high of 5,195 tracking firm global cues. The index wilted under selling pressure after the industrial output data came in higher than expected; stoking expectations that RBI may continue with its tightening process. The index made a low of 5,053 in the noon session. The Nifty finally closed at 5,073, down 65 points and the Sensex ended at 16,840, down 220 points. Analysts said that Indian markets could see another round of sell-off due to weak global cues. A K Prabhakar, Senior Vice President Equity Research, Anand Rathi said, Nifty can drop below 4,780 in the coming days."

Global Market Analysis

NIFTY
NIFTY Properties Weekly Open Weekly High Weekly Low Weekly Close Weekly Chg Points Weekly Chg% Values 5083.55 5204.20 4946.45 5072.95 -10.06 -0.20%

World Indices
World Indices Sensex Nifty DOW Jones Shanghai Comp. Nikkei CAC 40 FTSE Close 17181.62 5072.95 11444.16 2593.17 8963.72 3157.04 5245.05 Weekly Chg Points +118.25 -10.6 -699.08 -33.25 -336.16 -121.52 +1.95 % Chg +0.68% -0.20% -5.75% -1.26% -3.60% -10.53% +0.03%

Asian & Emerging

Asian stocks were mixed on Friday as early gains on the back of rallies in the United States and Europe were sold and markets remained volatile at the end of a rollercoaster week. Sydney added 0.78 per cent, or 31.8 points, to 4,172.6 and Hong Kong ended up 0.13 per cent, or 24.87 points, to 19,620.01. Nikkei sinks further below 9,000 in volatile week: Tokyo stocks dipped further below the 9,000 line on Friday, extending hefty losses sustained during the most volatile week since the March 11 earthquake as the yen's strength prompted foreigners to sell carmakers, pulling Toyota Motor to its lowest level this year

Sectorial Indices
Indices BANK NIFTY CNX NIFTY JUNIOR S&P CNX 500 CN XIT CNX MIDCAP CNX 100 Open 10121.40 10517.20 4150.20 5709.90 7688.00 5232.40 High 10516.90 10541.00 4205.95 5717.75 7692.80 5129.80 Low 9920.90 10145.75 4028.25 5362.25 7382.15 4892.85 Close 10182.70 10343.10 4121.35 5416.25 7581.35 5009.20

US Market
Wall Street retreats again in wildly volatile day: US stocks slipped back into the red late on Friday after fluctuating between big gains and losses in a wildly volatile session with trading volume in equities and options on track to set another record. The Dow Jones industrial average was down 5.83 points, or 0.05 percent, at 11,377.85. The Standard & Poor's 500 Index was down 5.32 points, or 0.44 percent, at 1,194.75. The Nasdaq Composite Index was down 29.84 points, or 1.17 percent, at 2,526.55. U.S. non-farm payrolls data showed a gain of 117,000 jobs in July compared with a forecast for an increase of 85,000, while the country's unemployment rate dipped to 9.1 percent last month from 9.2 percent in June, the Labor Department reported

Gainers
Scrip DCM GUJ NRE COKE STERLING BIO WELSPUN GLOB PRECOT MILLS Current Close 52.70 28.95 59.85 54.90 108.55 Change 79.35 42.90 84.20 76.85 146.05 Chg % -33.59 -32.52 -28.92 -28.56 -25.68

Losers
Scrip AVANTI FEEDS NITIN FIRE IFGL REFRACT PAGE INDUSTR VALECHAENGIN Current Close 61.90 136.05 35.95 2,574.60 90.50 Change 38.25 108.55 29.80 2,200.30 78.15 Chg % 61.83 25.33 20.64 17.01 15.80

Micro Economic Front

Industrial growth revives to 8.8% in June : Industrial growth in the country revived moderately to 8.8% in June this year on the back of a smart recovery in the manufacturing sector and better offtake of capital goods. Output of the manufacturing sector, which constitutes over 75% of the index, grew by 10% in June, 2011, compared to 7.9% in the same month last year. Natural rubber output up by 7.2%, imports by 12% in July : India's natural rubber production rose by 7.2% to 62,700 tonne in July, 2011, vis-a-vis the year-ago period, while consumption increased by 7.61% to 82,000 tonne.

Mutual Fund Invesement

Indices 11-Aug-2011 10-Aug-2011 09-Aug-2011 08-Aug-2011 Buy Value 656.30 839.10 1,426.90 926.70 Sell Value 460.20 548.70 901.10 601.50 Net Value 196.00 290.40 525.80 325.10

FIIs Investment
Indices 12-Aug-2011 11-Aug-2011 10-Aug-2011 09-Aug-2011 08-Aug-2011 Buy Value 2,426.00 3,279.50 2,415.30 1,857.50 2,189.10 Sell Value 2,332.10 3,030.60 Net Value 93.90 248.90

4,376.00 -1,960.70 2,967.20 -1,109.70 3,798.60 -1,609.60

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Week : Aug 15th to 19th Aug 2011

Week : Aug 15th to 19th Aug 2011

Weekly Analysis
Spot Nifty

Observation

Expert

Stock Of The Week

Observation

Expert

TECHNICAL OVERVIEW Nifty Futures shut stop at 5074.50 down by -62.75 or -1.22 %. It is looking bearish in the coming trading session if it manages to trade below the support level of 5050 else above resistance level of 5190 it would be in an upward trend.

TECHNICAL LEVELS
Properties Support 1 Support 2 Resistance 1 Resistance 2 Values 5050 4950 5190 5240

Weekly Chart

ANALYST RECOMMEND

BUY
L &T
Symbol
LT (NSE)

Bank Nifty

Company Name
LARSEN & TOURBO LTD.

Price
`1648

Change
`7.60

Volume
1333056

52 Week High
2212.70

% From High
-25.52%

Day High
1668

EPS
66.19

Weekly Chart

Stock Analysis
TECHNICALS
L&T IS IN CONSOLIDATION PHASE FROM LAST WEEK, IF IT
Indices
L&T

TECHNICAL OVERVIEW Bank Nifty Futures shut stop at 10179.90 down by -164.15 points or 1.59 %. It is looking bearish in the coming trading session if it manages to trade below the support level of 10175 else above resistance level of 10525 it would be in an upward trend.

TECHNICAL LEVELS
Properties Support 1 Support 2 Resistance 1 Resistance 2 Values 10175 9935 10525 10790

MANAGES TO SUSTAIN ABOVE 1674. IT WILL TAKE UP MOVE .WE RECOMMEND TO BUY L&T IN NSE IN CASH ABOVE 1674 TARGET 1690, 1710, 1730 WITH STOPLOSS OF 1650.

Support Resistance

1650 1674

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Week : Aug 15th to 19th Aug 2011

Week : Aug 15th to 19th Aug 2011

CAN SLIM
WHY CAN SLIM?
CAN SLIM is a formula created by William J. O'Neil, who is the founder of the Investor's Business Daily and author of the book How to Make Money in Stocks - A Winning System in Good Times or Bad. Each letter in CAN SLIM stands for one of the seven chief characteristics that are commonly found in the greatest winning stocks. The C-A-N-S-L-I-M. characteristics are often present prior to a stock making a significant rise in price, and making huge profits for the shareholders! O'Neil explains how he conducted an intensive study of 500 of the biggest winners in the stock market from 1953 to 1990. A model of each of these companies was built and studied. Again and again, it was noticed that almost all of the biggest stock market winners had very similar characteristics just before they began their big moves.

S
Supply and Demand: Shares Outstanding Plus Big Volume Demand.
Primary Factors LARSEN & TOURBO LTD. is a large cap stock consisting of approx Rs. 624933.6 crores Shares Outstanding (Total Public Shareholding)

L
Leader or Laggard: Which is your stock?
Primary Factors LARSEN & TOURBO LTD. is a leading stock with a relative strength 44.97%

in Weekly and 39.05% in Daily.

KEY STATISTICS

C
Current Quarter Earning per Share. The Higher The Better.
Primary Factors Almost 55.83% of decline in Q o Q Earnings.

I
Institutional Sponsorship: Follow the Leaders.
Primary Factors Approximately 25.93% of Shares are held by the Institutional Investors (FIIs, Mutual Funds etc.)

M A
Annual Earnings Increases: Look for a significant growth.
Primary Factors Annual Earnings showed an decline of 8.32% Y o Y.

Market Direction
Primary Factors If Market continues to remain in a secular uptrend, hence overall conditions are appropriate to initiate long position in the stock: A Big plus for the Stock

Disclaimer
The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most.

N
New Products, New Management, New Highs, Buying at Right Time.
Primary Factors LARSEN & TOURBO LTD. is set to break out its resistance after a good consolidation phase.

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