DAILY DIGEST

28 October 2011

A Destimoney Publication

Nifty to trade between 5150-5340 We expect Nifty to trade between 5150-5340. Next leg of upmove could take Nifty towards 5340 mark.
STOCKS TRADING IN POSITIVE ZONE : M&M, TATAMOTORS

Chart of the Day ABB LTD BUY ABOVE Rs.707

ABB Ltd is rising in a channel. The stock has made a short term bottom formation. We recommend a buy above Rs.707 with the stoploss of Rs.695, for the target of Rs.725.

Chart of th

e Day Day

ll of the Technical Ca

d BUY : ABB Lt

CMP : 708 CMP : 128 LTP : 73

Day Call of the Derivatives

lco BUY : Hinda

Ltd

oc BUY : JP Ass

iates

Indian Indices Index Sensex Nifty BSE Mid-Cap BSE Small-Cap Global Indices DJIA FTSE 100 Nikkei 225 Hang Seng Currency INR / 1 USD INR / 1 EUR Commodities Brent ($/ barrel) Gold $/oz Silver $/oz 112.8 1750.4 35.5 -0.4 5.6 0.4 -0.4% 0.3% 1.1% 3.0% 8.8% 18.9% 36.7% 30.2% 48.0% 49.5075 69.0057 -0.32 0.05 0.7% -0.1% -0.1% -3.1% -10.4% -9.8% 12208.6 5713.8 9039.1 20207.3 339.5 160.6 112.5 518.6 2.9% 2.9% 1.3% 2.6% 10.9% 9.5% 4.9% 12.2% 9.8% 0.6% -3.5% -12.9% Current Value 17288.8 5201.8 6181.6 6899.2 1D Change 34.0 10.2 65.2 98.5 1D (%) Change 0.2% 0.2% 1.1% 1.4% 1M (%) Change 4.6% 4.6% -0.8% -1.7% 1Y (%) Change -13.6% -13.5% -26.7% -36.2%

940

ABB LTD
870 800 730 660 MA20 590 29-Apr
100 75 50 25 0

MA50 30-Jun

Bollinger Band 15-Jul 1-Aug 17-Aug 5-Sep 20-Sep 5-Oct 21-Oct

16-May

31-May

15-Jun

Stochastics-Fast %K

Stochastics-Fast %D

RSI

Technical call of the Day HINDALCO INDUSTRIES LTD BUY ABOVE Rs.128
We recommend a BUY on HINDALCO LTD above Rs.128 with the stop loss of Rs.125, for the target of Rs.133.

Derivative Strategy HINDALCO Strategy November Expiry

Underlying Buy/Sell Option/Futures Strike Qty Expiry Rate BEP: 133.20 HINDALCO BUY CALL 130 1000 24-11-2011 5.40 HINDALCO SELL CALL 140 1000 24-11-2011 2.20 Max Profit: 6800 Max Loss: 3200

230

HINDALCO INDUSTRIES LTD

206 182 158 134 MA20 110 29-Apr
100 75 50 25 0

MA50 30-Jun

Bollinger Band 15-Jul 1-Aug 17-Aug 5-Sep 20-Sep 5-Oct 21-Oct

16-May

31-May

15-Jun

Stochastics-Fast %K

Stochastics-Fast %D

RSI

BEP: BREAKEVEN

Derivatives Idea of the day: JP ASSOCIATES

LTP BUY STOP LOSS TARGET

We are also available on:

73.35

75-76

71

82

We recommend a Buy in November Future series.

E-mail : research@destimoney.com www.destimoney.com

28 October 2011 Daily

Corporate Snapshot

Container Corporation of India Ltd posted a net profit of Rs 1754.192 million for Q2FY12 as compared to Rs
2067.322 million in Q2FY11. Total Income has increased from Rs. 9822.486 million for the quarter ended September 30, 2010 to Rs. 10698.362 million for the quarter ended September 30, 2011.

CMP: P/E(ttm): Impact

978.8 14.5 Neutral

Muthoot Finance reported 88% increase in profit at a little over Rs 215 crore, driven by a massive 110% jump in
revenues, for Q2FY12. It had posted a net profit of Rs 114.48 crore in Q2FY11. Amid soaring gold prices, the net sales during Q2FY12 rose to Rs 1,098.41 crore compared to Rs 523.65 crore in Q2FY11.

CMP: P/E(ttm): Impact

168.0 10.6 Positive

PowerGrid Corporation aims at a 30% increase in revenue from its telecom business in the current fiscal. Power- CMP:
Grid has a telecom network of about 21,000 km optic fibre cable providing connectivity to all the metros, major P/E(ttm): Impact cities and towns, besides presence in some remotest areas.

104.0 17.0 Positive

Infosys Ltd, is looking for acquisitions worth up to $700 million (Rs 3,500 crore). India's IT sector, which feeds off
increased outsourcing by companies looking to cut costs, is expected to face pricing pressure and a decline in new orders as Europe struggles with a debt crisis and the United States battles an economic slowdown.

CMP: P/E(ttm): Impact

2838.7 23.7 Positive

Sesa Goa expects the mining ban (the case on illegal mining) in Karnataka to be lifted by December, enabling the
Vedanta group firm to resume normal production in the state from early 2012.

CMP: P/E(ttm): Impact

205.0 4.2 Positive

ttm: trailing twelve months

Economic Snapshot The government has sanctioned setting up 21 of integrated textile industrial parks with world class infrastructure in nine states involving
a total development cost of Rs 2,100 crore. The new textile parks, to be set up under public-private-partnership, would attract an overall industry investment of over Rs 9,000 crore generating employment of four lakh workers.

The Finance Ministry is likely to approve capital infusion into PSU banks, including State Bank of India (SBI), by mid-November. The capital
requirement of PSU banks in the current fiscal has been estimated between Rs 10,000 and Rs 20,000 crore.

28 October 2011 Daily

SENSEX AND NIFTY INTRADAY
17345 17330 17315 17300 17285 17270 16:30 17:00 17:30 18:00 5220 5213 5206 5199 5192 5185

TRADERS COMMENT

Indian benchmark indices on Muhurat trading of Samvat 2068 settled on a flat note with positive bias. Also, interest rate pause hopes lighted up Muhurat Trading. Sensex was up 34.0 points, or 0.2%, at 17288.8 and Nifty was up 10.2 points, or 0.2%, at 5201.8. US Stocks rose as European leaders agreed to expand a bailout fund to $1.4 trillion and accelerated economic growth reported by America in Q3. DJIA closed up by 339.5 points or by 2.9%, at 12208.6. Asian stocks are trading up, after European leaders crafted a deal aimed at slashing Greece's massive debt load and preventing the economic crisis there from engulfing larger countries like Italy. Nikkei is trading 112.5 points up or by 1.3% at 9039.1. Hang Seng is trading 518.6 points up or 2.6%, at 20207.3. Indian rupee strengthened to close at 49.5075 against USD.

Sensex (LHS)

Nifty (RHS)

MARKET TECHNICALS

Nifty Overview
6,000
20D MVA 50D MVA 200D MVA

5,740 5,480 5,220 4,960 4,700

24-Jun 12-Jul 28-Jul 16-Aug 05-Sep 21-Sep 10-Oct 26-Oct

360 270 180 90 0

Volume (in million)

Technical Outlook We expect Nifty to trade between 5150-5340. Next leg of upmove could take Nifty towards 5340 mark.

Index NIFTY SENSEX

Close 5201.8 17288.8

S3 5173 17197

S2 5183 17227

S1 5192 17258

Pivot 5206 17304

R1 5215 17335

R2 5238 17412

R3 5262 17489

28 October 2011 Daily

EQUITY MARKETS

Nifty Movers & Shakers

Sesa Goa Ltd

Top 5 Sector Movers

Hindalco Industries Ltd
BSE IT Index

BSE Capital Goods Index

Wipro Ltd Cipla Ltd/India ICICI Bank Ltd Coal India Ltd Infosys Ltd Grasim Industries Ltd Mahindra & Mahindra Ltd State Bank of India Infrastructure Development Punjab National Bank Finance Co Ltd Housing Development Finance Sterlite Industries India Ltd Corp Reliance Industries Ltd Bharti Airtel Ltd Tata Consultancy Services Ltd Ranbaxy Laboratories Ltd Kotak Mahindra Bank Ltd Larsen & Toubro Ltd -3.1% -2.5% -1.9% -1.2% -0.6% 0.0% 0.0%

BSE Oil & Gas Index

BSE Healthcare Index

BSE Cons. Durable Index

BSE Power Index

BSE FMCG Index

0.5%

1.0%

1.4%

1.9%

2.4%

-0.5%

-0.4%

-0.3%

-0.2%

-0.1%

0.0% 0.0%

0.2%

0.4%

0.5%

0.7%

0.9%

Nifty Most Actives

130
Traded Value (Rs. Cr.)

Volume Gainers & Losers

HDFC Bank Ltd

104 78 52 26

NTPC Ltd

Kotak Mahindra Bank Ltd

Ambuja Cements Ltd

0 Tata Motors Ltd Reliance Industries Ltd Hindalco Industries Ltd Larsen & Toubro Ltd State Bank of India ICICI Bank Ltd Infosys Ltd Coal India Ltd Axis Bank Ltd ITC Ltd

Oil & Natural Gas Corp Ltd

-105% -84% -63% -42% -21% 0% 0%

56%

111%

167%

222%

278%

FII & MF Net Investments in Equities

500
FII Net Invst MF Net Invst

P/E Chart for Nifty & MSCI EMs Indices

20 18 16

250 in Rs. Cr. 0

14 12 10

-250 -500 14-Oct 17-Oct 18-Oct 19-Oct 20-Oct 21-Oct 24-Oct

FY2010

FY2011E
Nifty Index

FY2012E
MSCI EM Index

FY2013E

FIXED INCOME MARKETS

GSec & AAA Corp. Yield Curve

10.0 9.6 9.2 8.8 8.4 8.0 1 Year
GSec

OIS Curve
8.7% 8.3% 7.9%

RBI Auctions
Period of Auction 28-Oct Amount (Rs. Term of Security Cr.) 4,000 6,000 2,000 7.99% Government Stock 2017 8.13% Government Stock 2022 8.28% Government Stock 2027 8.30% Government Stock 2040 5-9 years for 3,000-4,000 cr 10-14 years for 5,000-6,000 cr 15-19 years for 3,000-4,000 cr

7.5%
3,000

7.1% 6.7%

Oct 31-Nov 4

13,000

2 Year

4 Year

5 Year

10 Year

1M

2M

3M 6 M 12M 2 Yr 3 Yr 5 Yr 7 Yr
Mid - One Month Back

Indian AAA Corporate Bond

Mid - Current

10 Yr

28 October 2011 Daily

DERIVATIVES

Open Interest Gainers

Stock BALRAMCHIN OPTOCIRCUI SOUTHBANK BAJAJHLDNG LUPIN Open Interest (contracts) 10,292,000 2,133,000 1,557,000 44,500 853,000 OI Change (%) 29.36% 25.10% 7.45% 7.23% 5.70% Price Price change (Rs.) (%) 53.2 221.3 23.5 740.1 486.0 2.68% -7.12% -0.43% 0.41% 1.09%

Open Interest Losers

Stock ARVIND BOMDYEING ALBK SINTEX DABUR Open Interest (contracts) 3,544,000 437,000 1,825,000 3,928,000 2,990,000 OI Change (%) -5.74% -3.32% -3.18% -3.11% -3.05% Price Price change (Rs.) (%) 108.1 421.4 142.9 113.8 97.5 -1.37% -0.59% 1.06% 2.99% 1.40%

Nifty Option OI Distribution

235000 188000 141000 94000 47000 0 4800 4900
Call OI

Nifty OI Vs Futures Price

550 440 Thousands 330 220 110 0 18-Oct 19-Oct 20-Oct 21-Oct 24-Oct 25-Oct 26-Oct 5300 5220 5140 5060 4980 4900

5000

5100

5200

5300
Put OI

5400

Nifty Fut OI (LHS)

Nifty Fut Price (RHS)

Top 5 Traded Stock Futures

Stock SBIN ICICIBANK LT INFY TATAMOTORS Expiry Date 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 No of contracts traded 8806 6180 3492 3195 4279 Contract value (Rs. Lacs) 20589 13560 11807 11428 10284 LTP 1872 877 1353 2866 191

Top 5 Traded Stock Options

Stock SBIN RELIANCE SBIN LT TATAMOTORS Expiry Option Date Type 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 CE CE CE CE CE No of Contract Strike contracts value price traded (Rs. Lacs) 1900 897 2209 900 2000 1400 200 670 497 335 452 1539 1264 1195 1167 LTP 68 19 34 27 6

Top 5 Contract Future Volumes

Stock SBIN ICICIBANK RELIANCE TATAMOTORS LT No of Expiry Date Contracts traded 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 8806 6180 4552 4279 3492 Current Cash Cash Volume Delivery % 669130 922858 737231 4230172 553393 25% 29% 31% 26% 45%

Bottom 5 Contract Future Volumes

Stock BOSCHLTD OIL BAJAJHLDNG SOBHA GLAXO No of Expiry Date Contracts traded 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 24-Nov-11 1 7 8 9 10 Current Cash Cash Volume Delivery % 826 2211 8445 5326 2084 76% 70% 58% 40% 95%

28 October 2011 Daily

SUPPORT / RESISTANCE LEVEL

Company Name Acc Ltd Ambuja Cements Ltd Axis Bank Ltd Bharti Airtel Ltd Bharat Heavy Electricals Bajaj Auto Ltd Bharat Petroleum Corp Ltd Cairn India Ltd Cipla Ltd Coal India Ltd Dlf Ltd Dr. Reddy'S Laboratories Gail India Ltd Grasim Industries Ltd Hcl Technologies Ltd Housing Development Finance Hdfc Bank Limited Hero Motocorp Ltd Hindalco Industries Ltd Hindustan Unilever Ltd Icici Bank Ltd Infrastructure Dev Finance Infosys Ltd Itc Ltd Jaiprakash Associates Ltd Jindal Steel & Power Ltd Kotak Mahindra Bank Ltd Larsen & Toubro Ltd Mahindra & Mahindra Ltd Maruti Suzuki India Ltd Ntpc Ltd Oil & Natural Gas Corp Ltd Punjab National Bank Power Grid Corp Of India Ltd Ranbaxy Laboratories Ltd Reliance Communications Ltd Reliance Infrastructure Ltd Reliance Industries Ltd Reliance Power Ltd Steel Authority Of India State Bank Of India Sesa Goa Ltd Siemens Ltd Sterlite Industries India Lt Sun Pharmaceutical Indus Tata Steel Ltd Tata Consultancy Svcs Ltd Tata Power Co Ltd Tata Motors Ltd Wipro Ltd Closing Price 1193.70 154.30 1122.95 393.05 316.85 1757.60 657.15 297.45 293.00 328.90 229.75 1593.10 428.15 2492.40 429.65 667.20 472.00 2107.65 128.25 343.00 871.70 128.00 2838.65 212.20 72.80 537.90 494.50 1350.75 849.40 1149.30 174.30 276.55 940.65 103.95 515.90 75.65 423.90 873.60 91.85 109.30 1866.65 205.00 838.75 122.20 503.75 451.30 1095.90 101.00 191.80 368.70 S3 1152.20 152.20 1103.10 387.00 313.00 1738.20 641.10 292.90 287.80 322.70 223.95 1542.30 420.10 2408.85 420.50 650.80 465.10 2072.95 123.90 339.00 845.00 124.30 2792.85 208.50 72.00 525.30 482.85 1325.05 833.95 1121.00 172.65 270.40 918.90 101.90 503.45 74.20 419.00 860.60 89.30 106.80 1834.00 193.45 824.00 120.00 487.50 443.00 1076.70 98.75 185.80 359.80 S2 1166.03 152.90 1109.72 389.02 314.28 1744.67 646.45 294.42 289.53 324.77 225.88 1559.23 422.78 2436.70 423.55 656.27 467.40 2084.52 125.35 340.33 853.90 125.53 2808.12 209.73 72.27 529.50 486.73 1333.62 839.10 1130.43 173.20 272.45 926.15 102.58 507.60 74.68 420.63 864.93 90.15 107.63 1844.88 197.30 828.92 120.73 492.92 445.77 1083.10 99.50 187.80 362.77 S1 1179.87 153.60 1116.33 391.03 315.57 1751.13 651.80 295.93 291.27 326.83 227.82 1576.17 425.47 2464.55 426.60 661.73 469.70 2096.08 126.80 341.67 862.80 126.77 2823.38 210.97 72.53 533.70 490.62 1342.18 844.25 1139.87 173.75 274.50 933.40 103.27 511.75 75.17 422.27 869.27 91.00 108.47 1855.77 201.15 833.83 121.47 498.33 448.53 1089.50 100.25 189.80 365.73 Pivot 1189.18 154.20 1125.62 393.02 317.33 1758.57 657.40 297.52 292.88 329.07 230.03 1587.03 428.73 2485.85 431.15 667.77 472.30 2107.72 127.95 343.33 873.90 128.28 2846.67 212.08 72.92 539.35 495.08 1348.57 850.15 1154.43 174.35 276.45 938.15 104.08 514.70 75.83 424.63 875.38 92.20 109.63 1862.88 203.85 840.92 122.23 502.12 451.77 1099.75 100.90 192.35 370.12 R1 1203.02 154.90 1132.23 395.03 318.62 1765.03 662.75 299.03 294.62 331.13 231.97 1603.97 431.42 2513.70 434.20 673.23 474.60 2119.28 129.40 344.67 882.80 129.52 2861.93 213.32 73.18 543.55 498.97 1357.13 855.30 1163.87 174.90 278.50 945.40 104.77 518.85 76.32 426.27 879.72 93.05 110.47 1873.77 207.70 845.83 122.97 507.53 454.53 1106.15 101.65 194.35 373.08 R2 1226.17 156.20 1148.13 399.03 321.67 1778.93 673.70 302.13 297.97 335.43 236.12 1631.77 437.37 2562.85 441.80 684.73 479.50 2142.48 132.00 347.67 902.80 132.27 2900.48 215.67 73.83 553.40 507.32 1372.08 866.35 1187.87 176.05 282.50 957.40 106.27 525.95 77.47 430.27 890.17 95.10 112.47 1891.77 214.25 857.83 124.47 516.73 460.53 1122.80 103.05 198.90 380.43 R3 1249.32 157.50 1164.03 403.03 324.72 1792.83 684.65 305.23 301.32 339.73 240.27 1659.57 443.32 2612.00 449.40 696.23 484.40 2165.68 134.60 350.67 922.80 135.02 2939.03 218.02 74.48 563.25 515.67 1387.03 877.40 1211.87 177.20 286.50 969.40 107.77 533.05 78.62 434.27 900.62 97.15 114.47 1909.77 220.80 869.83 125.97 525.93 466.53 1139.45 104.45 203.45 387.78

28 October 2011 Daily

Contact
Destimoney Securities Private Limited E-mail : research@destimoney.com www.destimoney.com

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In the preparation of the material contained in this document, Destimoney* has used information that is publicly available, as also data developed in-house. Some of the material used in the document may have been obtained from members/persons other than Destimoney and which may have been made available to Destimoney. Information gathered & material used in this document is believed to be from reliable sources. Destimoney has not independently verified all the information and opinions given in this material. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, authenticity, completeness or fairness of the information and opinions contained in this material. For data reference to any third party in this material no such party will assume any liability for the same. Destimoney does not in any way through this material solicit or offer for purchase or sale of any financial services, commodities, products dealt in this material. Destimoney and any of its officers, directors, personnel and employees, shall not be liable for any loss or damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible, and/or liable for any decision taken on the basis of this material. All recipients of this material before dealing and/or transacting in any of the products advised, opined or referred to in this material shall make their own investigation, seek appropriate professional advice and make their own independent decision. This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Destimoney or its affiliates to any registration requirement within such jurisdiction or country. This information does not constitute an offer to sell or a solicitation of an offer to buy any financial products to any person in any jurisdiction where it is unlawful to make such an offer or solicitation. No part of this material may be duplicated in whole or in part in any form and / or redistributed without the prior written consent of Destimoney. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else. Names such as Teji Mandi, Maal Lav, Maal Le or similar others for market calls and products are merely names coined internally and are not universally defined, and shall not be construed to be indicative of past or potential performance. Recipients of research reports shall always independently verify reliability and suitability of the reports and opinions before investing. *"Destimoney" means any company using the name Destimoney as part of its name.