August 10, 2010

Eyes set on Fed meet Caution is the eldest child of wisdom. Victor Hugo. The opening is likely to be cautious given the soft Asian markets. Stocks in the US managed modest gains while those in Europe did exceedingly well. A few key earnings are due today but the same may not have a market-wide impact. Euro-zone seems to have weathered the sovereign debt storm well but concerns are mounting over the state of the US economy. So, naturally all eyes are on todays FOMC meet. Speculation is rife that Bernanke & Co. may unleash another round of quantitative easing. Whether Fed policymakers oblige the markets or not only time will tell. Though the markets may welcome such a move, it will only confirm that the US has hit a soft patch. And, that will not be good news. We will also get an update on the Chinese economy later this week when a slew of economic reports are issued. Q2 GDP data on euro-zone is also due this week. Back home, the latest IIP data will be out on Thursday and monthly inflation figures on Monday.

Indian market Sensex Nifty BSE 100 BSE 200 CNX Midcap BSE Smallcap Developed market Dow Jones Nasdaq S&P 500 FTSE CAC DAX Hang Seng* Nikkei* S&P/ASX200*
* Markets are open

Last close 18,288 5,486 2,332 7,370 8,654 9,720 Last close 10,699 2,306 1,128 5,411 3,777 6,352 21,677 9,623 4,564

1 day 0.8 0.9 0.9 0.9 1.3 1.4 1 day 0.4 0.8 0.5 1.5 1.7 1.5 (0.6) 0.5 (0.7)

% change 3 mth 5.5 5.6 6.3 6.5 9.1 8.6 % change 3 mth (0.8) (2.9) (2.8) 0.4 1.5 5.5 6.1 (8.6) (0.8) % change 3 mth (1.4) 3.7 1.7 6.6 10.1 4.8 6.2

YTD 4.7 5.5 7.0 7.7 16.4 16.3 YTD 2.6 1.6 1.1 (0.0) (4.0) 6.6 (0.9) (8.8) (6.3)

Emerging market Shanghai Comp Brazil Bovespa Mexico Bolsa Kospi* Micex Taiwan* Straits*
* Markets are open

Last close 2,661 67,862 32,838 1,788 1,419 8,030 2,996

1 day (0.4) (0.3) (0.2) (0.1) 1.1 (0.1) 0.0

YTD (18.8) (1.1) 2.2 6.2 3.6 (1.9) 3.4

Institutional activity (Rs cr) FIIs MFs FIIs Prov. MFs Prov. Commodities Crude (US$/bbl) Gold (US$/oz) Copper (US$/mt) Aluminium (US$/mt) Zinc (US$/mt) Advance/Decline stocks (Nos) Adv Dec Unch A/D ratio (x)*
*A/D excluding Unch

Cash 829 (323) 522 (46) Last close 81.2 1,200 7,399 2,173 2,120 A 168 35 1 4.8

F&O 674 -

MTD 15,781 (4,927)

YTD 51,182 (13,161)

Sensex intra-day
18,400

18,300

1 day (0.4) (0.1) 0.7 (0.4) 0.9 B 1,228 637 73 1.9

% change 3 mth 5.7 (0.3) 7.1 6.5 2.8 S 301 134 11 2.2

YTD 2.3 9.4 0.8 (1.1) (16.2) Total 1,958 1,002 112 2.0

18,200

18,100

18,000 9:00 10:05 11:10 12:15 13:20 14:25 15:30

ADR/GDR Dr. Reddys HDFC Bk ICICI Bk ITC Infosys Satyam Ranbaxy Reliance Wipro SBI Tata Motors Sterlite L&T Latest (US$) 29.3 161.7 42.4 3.4 62.4 4.9 9.9 43.1 13.9 114.3 20.1 15.5 39.6 Price % chg 0.4 0.1 2.4 0.2 0.8 (1.6) 0.2 (0.7) 0.4 (0.2) 1.0 0.3 2.0 % Prem/Disc 0.9 19.5 (0.3) 0.0 0.1 31.2 1.3 0.1 47.1 (0.6) 0.7 298.8 0.7

Trade value (Rs cr) Cash NSE Cash BSE Total Cash Delivery (%) Derivatives Currency Rs/US$ Rs/EUR US$/GBP US$/EUR Yen/US$ Bond market 10yr Gsec Call rate Last close 46.13 60.28 1.58 1.32 85.88

12,787 4,456 17,244 43.4 59,054 1 day (0.1) (1.2) (0.4) (0.3) (0.1) % change 3 mth (2.8) (4.8) 6.6 3.1 8.6

% chg 0.4 0.7 0.5 (2.3) YTD 0.9 10.5 (2.1) (8.0) 8.3 Bps chg (0.01) 0.72

Last Close (%) 7.82 5.50

Market Mantra

News

Corporate snippets BHEL has bagged a contract worth Rs25.3bn from Abhijeet Infra Ltd for setting up a 1,080MW thermal power plant in Jharkhand. (BL) Glenmark has entered into a settlement agreement with US-based Sepracor on a patent litigation suit related to the generic versions of insomnia drug eszopiclone. (BS) Areva T&D has bagged a contract worth Rs1.1bn from Power Grid Corporation of India Ltd to set up a 765 KV extra high voltage substation. (ET) Bajaj gears up to launch high-end Pulsars next year. (BS) Britannia Industries Ltd will invest around Rs800mn in expanding bakery capacity at existing facilities and setting up a new unit this fiscal. (BL) SAIL has commissioned its Rs0.4bn unit at its Salem steel plant. (ET) Orchid Chemicals has received US health regulator's approval to sell anti-epileptic levetiracetam tablets in the American market. (ET) Lupin has sued Ranbaxy Laboratories, which is now controlled by Japanese drug major Daiichi Sankyo, in a US court. (BS) SBI rights issue for Rs200bn likely in fiscal quarter ending March, 2011. (ET) GMR Airports Holding Ltd plans to raise around US$100mn to buy out the holdings of its parent, GMR Infrastructure, in the airports business. (BS) The first 600MW unit of Sterlite Energys 4X600MW power plant, with Independent Power Producer (IPP) status, at Jharsuguda in Orissa is slated to go on stream next week. (BS) Mumbai and JNPT port terminals are likely to be shut for traffic for at least a week, as containers fell off a ship after it collided with another vessel on Saturday, blocking the ports' main channel. Macquarie SBI Investments Pte Ltd and State Bank of India have agreed to invest Rs1.25bn to pick up 19% equity stake in a proposed 540MW thermal power project in Jamshedpur, Jharkhand promoted by Adhunik Power and Natural Resources Ltd, a subsidiary of Adhunik Metaliks Ltd. (BL)
Market Mantra

GMR Infra has received unsoliciated offers from international investors for buying its 50% stake in overseas power firm InterGen. (ET) UCO Bank has raised its benchmark prime lending Rate by 25bps to 12.5%. (ET) Economy snippets The Union Ministry of Home Affairs has asked the DoT to direct service providers to stop the operation of all 3G mobile services across the country, particularly in Jammu & Kashmir, till the infrastructure to enable full tapping of lines is put in place. (BS) The government diluted the guidelines on public shareholding by lowering the minimum public float requirement for state-owned enterprises to 10% against 25% prescribed earlier. (BS) RBI has told the government to empower a committee under the proposed Financial Stability and Development Council to handle all inter-regulatory issues and financial stability, to replace the High-Level Coordination Committee on Capital and Financial Markets, a forum for discussing and coordinating policy moves among regulators. (ET) The government has cleared 12 proposals for FDI worth over Rs23bn. (ET) Services exports dip 8% to US$93.7bn in FY10. (ET) Results Table
Companies Britannia Ind Opto circuit Tulip Telecom Jain Irrigation B L Kashyap Sales 9,128 1,275 5,252 7,206 2,993 % yoy 24.8 29.9 18.6 27.1 40.8 PAT 328 570 642 523 103 % yoy (30.7) 100.0 (14.5) (5.9) 29.7

Technicals

Nifty price/volume
NIFTY [N59901] 5439.80, 5492.30, 5433.25, 5486.15, 667424768 0.86% Price Log IRIS 5600 1 5400 5200 5000 0 Cr 4800

Source : www.SpiderSoftwareIndia.Com Vol

60.00

10:J

Dly

Man Industries (Buy, between Rs84-85.5, Target 90): Man Industries has formed inverted head and shoulder pattern on daily chart with neckline corresponding at Rs82. Stock so far has been consolidating in this structure for almost a month and after yesterdays close above Rs84.5, the breakout was confirmed with spurt in volumes. One can also see a flag structure in the last five candles which is characterized with continuation pattern and we expect stock to resume its short term uptrend in coming days. RSI too has been confirming positive trend and has decent room before entering into overbought zone. We advise buying stock in the range of Rs84-85.5 with stop loss of Rs82 for Target of Rs90. Kolte Patil (Buy, above Rs63.5, Target Rs68): After hitting an intermediate top of Rs74 in Jan 2010, the stock has been consolidating within symmetrical triangle with volume activity deteriorating. Price activity in last five trading sessions suggests that prices are oscillating in narrow range of Rs60-63 without confirming a breakout on either side. However, since yesterdays candle turned out to be Bullish white belt hold with spurt in volumes, there is a high probability that we might see a breakout on upside. Stock holding above its long term moving averages of 100 DMA and 200 DMA also supports our argument for an upside breakout. We recommend buying stock above Rs63.5 with stop of Rs61.5 for Target of Rs68.

Nifty on Monday surprised on the upside as it broke its previous peak of 5488 and ended near days high. As Nifty is forming a Rising wedge pattern on daily chart, one need to exercise caution at higher levels and maintain a tight stop loss at support line of 5400 levels. On the upside, immediate resistance is seen at levels of 5540 once Nifty surpasses levels of 5490. Support/Resistance levels
Nifty Sensex Close 5,486 18,287 Support 5,430 18,090 Resistance 5,505 18,400

Abnormal change in delivery

Stock Pantaloonr Erainfra Monnetispa Punjlloyd Havells NSEDely (%) 59.3 57.4 79.0 41.8 22.9 Prev NSEDely (%) 22.1 21.4 34.8 20.3 11.7 Price % chg 0.3 1.2 3.3 (0.0) 3.0

Positive breakout
Company name Videocon Industr Greaves Cotton Basf India Ltd Raymond Ltd Tamilnadu Newspr CMP 227.2 359.0 486.8 241.8 129.5 10 Days MVG avg 222.5 351.6 477.2 237.0 127.0 Price % chg 2.1 2.1 2.0 2.0 2.0 20 Days MVG avg 218.2 347.1 467.7 233.1 123.6

Negative breakout
Company name Gtl Ltd Satyam Computer Gail India Ltd Dcm Shriram Cons Crisil Ltd CMP 421.6 86.6 437.8 48.1 5,683.6 10 Days MVG avg 427.4 87.7 442.4 48.6 5,734.0 Price % chg (1.4) (1.3) (1.1) (0.9) (0.9) 20 Days MVG avg 439.1 88.9 449.4 49.3 5,773.0

Stocks in uptrend
Company Eihotel Htmedia Jyotistruc Orientppr Grasim Vol % chg 256.2 2,761.8 103.7 48.5 454.7 Delivery % 92.3 90.8 89.3 88.4 86.9 Price % chg 1.6 3.3 1.1 1.4 1.8

Stocks in downtrend
Ushamart Dishman Sundrmfast Gsfc Nbventures 285.3 71.3 130.3 25.6 95.9 90.6 88.5 78.4 82.1 82.0 (1.1) (0.2) (0.8) (0.2) (1.7)

Market Mantra

Technicals

Pivot table
Company Supp 1 Supp 2 Pivot Res 1 Res 2 ABB 792 780 804 812 821 ACC 830 822 838 853 867 Ambuja Cem 120 115 113 118 122 127 BHEL 2,530 2,506 2,487 2,524 2,549 2,573 BPCL 647 643 635 650 654 659 Bharti 328 321 317 325 333 340 Cairn 339 337 332 341 343 346 Cipla 320 317 313 321 324 326 DLF 321 310 304 316 326 337 Gail 438 434 431 437 441 445 Grasim 1,904 1,876 1,854 1,898 1,926 1,954 HCL Tech 416 409 405 414 421 428 HDFC Bank 2,082 2,068 2,049 2,086 2,100 2,115 Hero Honda 1,866 1,839 1,821 1,857 1,884 1,911 Hindalco 167 165 163 166 168 171 HUL 256 254 252 256 258 260 HDFC 3,116 3,078 3,056 3,099 3,137 3,175 ICICI Bank 980 959 947 970 992 1,013 Idea 71 70 69 72 73 74 Infosys 2,875 2,833 2,808 2,858 2,900 2,941 ITC 159 158 157 159 160 161 L&T 1,813 1,801 1,793 1,809 1,821 1,833 M&M 649 621 592 651 678 706 Maruti 1,232 1,221 1,214 1,227 1,239 1,250 Nalco 426 420 417 424 429 435 NTPC 200 198 197 199 200 202 ONGC 1,233 1,216 1,191 1,240 1,257 1,274 Powergrid 102 101 100 102 103 104 PNB 1,111 1,098 1,088 1,109 1,122 1,135 Ranbaxy 449 447 444 450 452 454 Rcom 177 174 172 176 179 183 Reliance 994 988 980 997 1,002 1,008 Reliance Infra 1,117 1,109 1,102 1,117 1,125 1,133 Reiance Power 159 157 156 159 160 161 Satyam 86 86 85 87 87 88 Siemens 701 696 690 703 707 712 SBI 2,651 2,626 2,612 2,641 2,665 2,690 SAIL 198 196 195 198 200 202 Sterlite 180 177 176 179 181 183 Sunpharma 1,767 1,757 1,742 1,773 1,783 1,793 Suzlon 57 56 55 57 57 58 Tata Com. 294 280 272 288 302 316 TCS 880 856 842 870 894 917 Tata Motors 919 902 893 912 929 946 Tata Power 1,326 1,322 1,319 1,326 1,330 1,333 Tata Steel 540 534 529 538 544 551 Unitech 91 87 85 89 93 97 Wipro 437 430 426 434 441 447 Zee 317 309 305 314 321 329 A pivot is a level at which the market direction changes for the day. These points can be critical support and resistance levels for that day. Pivot levels are only broad indicators and not necessarily our view on the stock or index. CMP (Rs) 801 845

Top movers
Company Rain Commodities Raymond Ltd Bl Kashyap&Sons Gitanjali Gems L Himachal Futuris Price (Rs) 163.7 283.0 386.8 223.6 11.1 Price % chg 19.3 17.1 15.5 14.4 10.4 % YTD chg (27.1) 44.4 (15.6) 79.1 0.0

Top losers
Company Britannia Inds Kei Indus Ltd Paramount Comm Agc Networks Ltd Gateway Distripa Price (Rs) 2,150.5 32.0 10.5 262.6 102.9 Price % chg (5.8) (3.6) (2.8) (2.5) (2.5) % YTD chg 28.0 (0.3) (31.4) 38.9 (24.9)

Volume Toppers
Company Bl Kashyap&Sons Ht Media Ltd Vardhman Textile Sundaram Clayton Asian Star Co Price (Rs) 386.8 170.2 314.1 202.1 1,172.4 Price % chg 15.5 3.3 2.0 0.9 5.3 Vol % chg 5,231.7 2,384.4 1,266.6 791.4 644.4

Sector watch
Price % chg BSE Indices BSE Bankex BSE Realty BSE HC BSE Metals BSE Oil & Gas BSE Auto BSE IT BSE Power BSE FMCG BSE PSU BSE Cap Goods BSE CD BSE 200 BSE 500 BSE Mid Cap BSE Small Cap CNX 500 Last close 11,944 3,603 5,592 15,706 10,075 8,631 5,672 3,147 3,294 9,647 14,772 5,595 2,332 7,370 7,622 9,720 4,580 1 day 1.3 4.5 (0.0) 1.5 (0.4) 1.1 0.6 0.7 0.3 0.8 0.6 2.4 0.9 0.9 1.2 1.4 0.9 1 week 8.0 10.4 (2.7) 5.9 (5.2) 3.1 3.6 0.6 2.7 1.9 0.8 12.2 2.8 2.9 4.2 4.9 2.6 1 mth 9.4 7.4 5.5 (7.2) (0.5) 11.2 7.5 2.0 15.6 6.6 9.2 21.6 6.3 6.5 8.9 8.6 6.5 50 DMA 10,908 3,284 5,484 15,996 10,203 7,922 5,346 3,097 3,015 9,176 14,191 4,678 2,214 6,985 7,056 8,955 4,343

Note: Ideas given under the Technicals section are for intraday purpose or up to a period of three trading sessions. Stocks recommended under this heading are not necessarily part of our fundamental buy or sell list.

Market Mantra

Deals

Bulk deals
Date 9/8/2010 9/8/2010 9/8/2010 9/8/2010 9/8/2010 9/8/2010 Scrip name Balaji Dist Balaji Dist Gitanjali Gems Limited TV 18 India Limited TV 18 India Limited TV 18 India Limited Client name Idfc Mutual Fund Idfc Arbitrage Plus Fund Fidelity Mgmt & Resarch Co A/C Morgan Stanley Investment Morgan Stanley Mutual Fund A/C T Rowe Price New Asia Fund B/S B S B B B S Qty ('000) 2,516 2,516 1,179 2,617 1,684 4,186 Avg price (Rs) 48 48 209 78 78 78 Deal size (Rs m) 120.5 120.5 246.1 204.1 131.4 326.2

Insider trades
Company name Hdfc Kotak Mahindra Bank Lupin Ltd Acquirer D M Sukthankar Angel Victor Gurij Pal Singh Transaction date 20/07/2010 9/7/2010 20/07/2010 B/S S B B Qty ('000) 0.3 3.0 2.0 Avg price (Rs) 3,014 763 1,872 Deal size ('000) 0.9 2.3 3.7 Shares transactions (%) Holding after transaction (%) 0.0 -

*Closing price on the transaction day is assumed to be average price of the deal

Market Mantra

Derivatives

Nifty volatility Index fell to 17.00 from 17.37, declined by 2.13%. Total Nifty futures added 1.28mn shares in open interest. Call open interest for Aug series added 0.19mn shares in Open Interest. Put open interest for Aug series added 1.50mn shares in Open Interest. Nifty put call ratio of open interest now stands at 1.39 vs 1.37. Nifty put call ratio of volume now stands at 1.16 vs 1.04. Maximum open interest in calls for Aug series is at 5,600 strike price. Maximum open interest in Puts for Aug series is at 5,300 strike prices. Nifty Aug 5,400 Call shed 0.16mn shares in open interest. Nifty Aug 5,400 Put added 0.68mn shares in open interest. Strategies Long SAIL Aug Future in range of Rs199201 for the target price of Rs209 with a stop loss placed at Rs194. Lot size: 1000 Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000. Long India Cement Aug Future in range of Rs110-111 for the target price of Rs120 and stop loss placed at Rs105. Lot size: 2000 Remarks: Net maximum profit of Rs20,000 and net maximum loss of Rs10,000. Nifty open interest chart
900 750 600 450 300 3,400 150 0 13-May-10 9-Jun-10 6-Jul-10 2-Aug-10 2,600 4,200 OI & Vol (lacs) Nifty 5,000

Nifty snapshot
Near month price Near month Pre/Disc Mid month price Mid month Pre/Disc OI* (000) Volume (000) PCR (OI) PCR (Vol) Roll-over (%) Current 5,482 (4.1) 5,487 1.3 34,539 11,962 1.4 1.2 7.2 Previous 5,442 3.2 5,447 7.4 33,255 12,654 1.4 1.0 6.9 % Chg 0.7 (229.7) 0.7 (83.0) 3.9 (5.5) 1.2 11.5 3.9

FII derivative data

(Rs cr) Index Futures Index Option Stock Futures Stock Options Buy 854 3,037 1,033 203 Sell 644 2,603 926 281 Net 210 434 107 (78) Contracts 17,987 12,124 16,120 2,962 OI % chg 3 1 1 8

Institutional activity
(Rs cr) FII's MF's FIIs Prov. MFs Prov. Cash 829.1 (322.8) 522.1 (45.5) F&O 674 MTD 15,781 (4,927) YTD 51,182 (13,161)

Overall market
Index Future (Rs cr) Stock Future (Rs cr) Index Options (Rs cr) Stock Options (Rs cr) Index Future (Cont '000) Stock Future (Cont '000) Index Options (Cont '000) Stock Options (Cont '000) PCR (OI) PCR (VOI) 9-Aug10 7,944 14,096 32,863 4,150 310 465 1,207 123 1.2 0.3 6-Aug10 8,317 14,822 33,467 3,850 325 489 1,225 120 1.0 0.3 5-Aug10 8,402 14,466 39,740 2,972 326 482 1,460 93 1.2 0.3 Value % chg (4.5) (4.9) (1.8) 7.8 (4.6) (5.0) (1.4) 2.5 11.7 (1.6)

Nifty strikes open interest

12,000 10,000 8,000 6,000 4,000 2,000 0 5200 5300 5400 5500 5600 5700 5800 OI in ('000)
Call Put

Sector-wise OI
6 3 0 -3 Real Estate Metals FMCG Textile Power Sugar IT Others Automobiles Total Stock Future Logistics Cement Capital goods & Infra Pharma Fertilizers Banking Oil & Gas Telecom Media % Chg

Market Mantra

Derivatives

Futures open interest gainers

Scrip Ptc Pateleng Ucobank Iob Tatamotors Chamblfert Sci Acc Albk Educomp Ambujacem OI ('000) 3,012.0 707.5 12,000.0 4,860.0 11,888.0 8,636.0 1,598.0 2,570.0 3,856.0 3,381.5 17,888.0 % change 31.2 25.9 14.2 14.0 13.8 13.5 13.0 11.7 9.5 8.7 8.2 CMP (Rs) 120.0 423.6 98.5 130.5 907.9 69.5 170.7 841.4 205.4 653.9 118.4 % change 3.2 0.9 2.3 4.7 3.0 2.1 0.8 2.8 2.8 7.3 4.7 Volume ('000) 2,496.0 341.0 8,120.0 7,200.0 12,818.0 7,264.0 1,248.0 807.5 2,222.0 5,681.0 4,732.0 % change 336.4 306.0 76.5 63.6 (31.1) 65.7 (59.1) 92.1 (0.7) 437.5 148.0 Prem/Disc (Rs) (0.8) (2.9) (0.7) (0.4) 11.5 (0.5) (1.2) 3.3 0.4 1.2 1.4

Futures open interest losers

Scrip Ifci Suntv Yesbank Dishtv Indiacem Hcc Sail Polaris Hindzinc Cumminsind Drreddy OI ('000) 95,368.0 249.0 6,594.0 14,816.0 12,604.0 21,896.0 6,573.0 3,992.0 340.8 354.0 1,511.5 % change (6.2) (6.6) (6.1) (5.7) (4.4) (3.6) (3.2) (3.0) (2.9) (2.7) (2.7) CMP (Rs) 60.0 473.8 305.3 50.1 109.9 143.7 199.3 183.8 1,117.1 641.9 1,344.8 % change 1.4 1.5 2.7 0.1 3.7 103.9 1.0 2.9 1.9 0.4 (0.1) Volume ('000) 25,004.0 121.0 2,573.0 8,712.0 3,350.0 5,980.0 2,549.0 1,994.0 171.0 112.0 239.8 % change (80.2) (77.4) 1.3 (70.9) 166.7 76.1 7.5 (7.3) 7.4 (4.7) (28.8) Prem/Disc (Rs) (0.3) (2.4) (0.3) (0.1) (0.8) (0.5) (0.8) (0.5) (0.5) (3.6) (6.7)

Most active stock calls

Scrip Unitech Tatamotors Tatamotors Reliance Dlf Unitech Reliance Unitech Tatamotors Sbin Strike 90 900 920 1020 320 95 1000 85 940 2750 OI ('000) 5,780.0 1,235.0 1,205.0 1,951.8 1,095.0 2,580.0 1,015.0 2,728.0 297.5 173.9 % change 16.5 32.5 303.0 18.3 (14.1) 97.9 42.9 (21.8) 95.7 50.1 CMP(Rs) 3.2 32.3 24.0 12.9 10.4 1.3 21.5 6.6 15.5 14.0 Volume ('000) 8,671.0 5,337.0 5,013.0 4,137.0 3,205.0 2,630.0 3,773.0 2,340.0 1,755.0 1,874.0

Most active stock puts

Scrip Tatamotors Tatamotors Sbin Unitech Tatamotors Unitech Tatamotors Unitech Reliance Sbin Strike 880 860 2600 85 900 90 840 80 1000 2500 OI ('000) 805.5 693.0 207.5 4,432.0 239.5 2,296.0 425.0 6,020.0 692.5 295.4 % change 471.3 168.6 67.7 91.4 648.4 382.4 24.3 26.2 (0.6) 9.1 CMP(Rs) 16.6 10.9 41.1 1.2 25.0 2.8 6.0 0.6 21.0 13.5 Volume ('000) 1,958.0 1,867.0 1,967.0 1,864.0 876.0 906.0 678.0 867.0 959.0 730.0

Most active Nifty calls

Strike 5500 5400 5600 5700 5800 5500 5300 5900 5600 5700 OI ('000) 7,679.8 4,673.4 8,547.6 4,271.4 1,492.4 1,846.8 1,714.7 461.4 1,933.8 2,038.8 % change 2.1 (3.4) (0.8) 6.3 13.8 12.5 (2.9) (15.1) 3.6 4.1 CMP(Rs) 54.3 115.6 17.9 4.7 1.8 116.0 196.0 0.7 68.7 36.5 Volume('000) 9,418.6 5,097.8 4,663.2 2,149.5 1,365.7 624.9 605.2 548.9 526.6 497.1

Most active Nifty puts

Strike 5400 5300 5500 5200 5100 5000 5400 5000 4900 5200 OI ('000) 8813.6 9768.6 3875.0 6740.0 6928.4 5909.1 1499.9 1875.1 2874.7 1689.8 % change 8.5 (2.0) 17.4 0.4 9.1 0.6 10.0 18.0 1.7 6.6 CMP(Rs) 41.9 21.9 77.5 11.9 6.1 3.5 96.9 24.0 2.3 49.0 Volume('000) 8724.3 5635.8 4141.4 3300.8 2996.5 1238.2 630.5 644.0 542.4 477.9

Note: Ideas given under the Derivatives section are positional trades for the stated F&O expiry. Stocks recommended under this heading are not necessarily part of our fundamental buy or sell list.

Market Mantra

Mutual Funds

Fund focus ICICI Prudential Dynamic Fund

Fund manager Latest NAV NAV 52 high/low Latest AUM Type Class Options S Naren Rs103.0 Rs103/74 Rs2,282cr Open-ended Equity diversified Growth & dividend Min investment Entry load Exit load Latest dividend (under dividend option) Benchmark Asset allocation Expense ratio

Invest
Rs5,000 Nil 1% <1 yr 12% (Feb 15, 2010) S&P CNX Nifty Equity (77%), Debt (0%), Cash (23%) 1.9%

Top recommended funds

Equity Diversified HDFC Top 200 (G) ICICI Pru Dynamic Plan (G) IDFC Small & Midcap Eqty -(G) Equity Thematic Reliance Pharma Fund (G) ICICI Pru Tech. Fund (G) ICICI Pru FMCG Fund (G) Equity Tax saving Birla SL Tax Relief (G) HDFC Tax Saver (G) ICICI Prudential Tax Plan (G) Hybrid HDFC Prudence Fund (G) HDFC MIP - LTP (G) Reliance RSF - Balanced (G) Debt Money market HDFC Cash Mgmt Fund SP (G) LIC MF Income Plus Fund (G) Reliance Money Manager (G) Debt Floating rate ICICI Pru Floating Rate D LIC MF Floating Rate (G) Tata Floater Fund (G) 1,413 2,588 1,179 11.7 229.6 138.9 0.7 1.2 0.8 1.6 3.4 2.7 483 106 65 52.1 16.6 63.5 (0.8) 5.1 0.8 (2.4) 3.4 3.6 Assets (Rs Cr) 8,020 2,282 746 NAV (Rs) 203.8 103.0 18.6 1wk 0.7 0.6 1.0 1mth 3.3 1.9 6.5

(Absolute returns (in %) are based on previous close) 3mth 10.0 7.1 12.4 6mth 20.1 15.5 23.9 1yr 36.2 38.5 58.1 2yr 51.7 39.9 98.1 3yr 65.0 45.8 -5yr 225.0 192.2 --

5.7 11.9 21.1

21.7 22.2 28.3

83.4 53.9 45.5

112.3 39.9 46.8

104.1 5.4 44.9

248.0 92.4 146.0

5.7 11.2 8.0

17.1 20.1 17.4

34.6 47.9 48.8

33.9 56.6 49.0

-44.3 50.2

-150.7 119.2

4,398 6,918 563

205.9 22.1 22.5

0.4 0.4 1.3

3.4 1.1 4.7

10.3 3.5 8.4

19.9 7.3 17.0

46.0 15.1 35.2

66.4 37.3 62.5

61.1 41.6 77.9

186.2 83.3 123.3

3,149 10,000 2,710

19.6 12.6 1,266.2

0.1 0.1 0.1

0.4 0.4 0.4

1.3 1.3 1.2

2.4 2.6 2.3

4.6 5.1 4.7

12.4 13.8 12.8

21.9 24.2 22.4

39.4 ---

1,730 5,102 8,486

138.8 15.4 14.0

0.1 0.1 0.1

0.5 0.5 0.5

1.3 1.3 1.3

2.4 2.6 2.5

4.8 5.3 4.9

12.7 14.2 13.2

22.7 25.1 23.1

-44.1 --

NFO Update
Fund name IDFC CPOF - Series III ICICI Pru FMP - Series 53 - 3Yrs Plan A
#OE: Open Ended, CE: Close Ended

Open date 28-Jun 09-Aug

Close date 11-Aug 24-Aug

Type OE CE

Class Hybrid Debt FMP

Recent actions SBI Magnum Contra declares dividend. The quantum of declaration is 35%. The record date is August 13, 2010. Reliance Monthly Interval Series I declares dividend. The record date is August 13, 2010. DSPBR Mutual Fund has revised the minimum investment amount under the institutional Plan of DSPBR World Energy and DSPBR World Mining. Previously, the minimum investment amount used to be Rs5cr. Now, it would be Rs1cr, with effect August 1, 2010. Reliance MF has decided to change the fund manager under Reliance RSF. Consequently, Amit Tripathi and Omprakash Kuckian will manage Reliance RS - Balanced Fund and Prashant Pimple will manage Reliance RS - Debt Fund, with effect from August 1, 2010.
Disclaimer: Mutual Fund is subject to market risk, please read the offer document carefully before investing.

Market Mantra

Economy

Quarterly GDP growth

13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Mar-10 5.0 7.0 9.0 GDP (LHS) (Rs bn) GDP Growth % (RHS) (%) 13.0

Inflation
15.0 12.0
11.0

(%)

9.0 6.0 3.0 0.0 (3.0) Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10

G-Secs yield
10.5 9.5 8.5 7.5 6.5 5.5 4.5 3.5 May-09 Mar-09 Nov-09 Oct-08 Feb-09 Feb-10 Aug-08 Sep-09 Apr-10 Jun-10 Aug-10 Dec-08 Dec-09 Jul-09 (%) 10 Yr Gsecs 1 Yr Gsecs 5 Yr Gsecs

M3 growth
60,000 55,000 50,000 45,000 40,000 ` 35,000 30,000 25,000 May-10 Nov-08 Feb-09 Sep-08 Aug-09 Dec-09 Mar-10 Jan-09 Jun-09 Oct-09 Apr-09 Jan-10 Jul-08 Jul-10 M3 (LHS) (Rs bn) M3 yoy % (RHS) (%) 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

CRR, Repo
10.0 9.0 (%) CRR Repo Reverse Repo

IIP and Six key infra industry growth

12 10 IIP growth Six key infra ind growth (%) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 (2.0)

8.0

8
7.0 6.0 5.0 4.0 3.0 May-09 Mar-09 Nov-09 Oct-08 Feb-10 Aug-08 Jan-09 Sep-09 Apr-10 Jun-10 Aug-10 Dec-08 Dec-09 Jul-09

6 4 2 0 Oct-08 Feb-09 Oct-09 Feb-10 Jun-08 Jun-09 Jun-10

Market Mantra

10

15

20

25

30

35

40

45

FDI

200

400

600

800

(400)

(200)

1,000

2,000

3,000

4,000

5,000

6,000

Mar-05 (US$ bn) Sep-05 Mar-06 Sep-06

Jun-08

Sep-08 (US$ mn) Nov-08 Jan-09 Mar-09

(Rs bn)

Economy

Market Mantra

Fiscal deficit

Trade deficit

Aug-08

Oct-08

Dec-08

Feb-09

Mar-07
May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10

Apr-09

Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10

Jun-09

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

Jun-10
10 15

150

200

250

300

350

(5)

(10)

100.0

20.0
Aug-08 Sep-08 Nov-08 Dec-08 Feb-09 Apr-09 May-09 Jul-09 Aug-09 Oct-09 Dec-09 Jan-10 Mar-10 Apr-10 Jun-10 (US$ bn) INR/USD INR/GBP INR/EURO INR/100 Yen

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Jun-08

Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10

(US$ bn)

Jul-08

Sep-08

Nov-08

RBI forex reserves

Jan-09

Currency movement

Mar-09

Current account deficit

May-09

Jul-09

Aug-09

Oct-09

Dec-09

Feb-10

Mar-10

May-10

Jul-10

Event Calendar

Monday

Tuesday

Aug 02
- India exports yoy% 30.4% vs 35.1% - India imports yoy% 23% vs 38.5%

Aug 03

Wednesday

Aug 04

Thursday

Aug 05

Friday

Aug 06
- US change in non-farm payrolls -131K vs -125K - Unemployment rate 9.5% vs 9.5%

Saturday

Aug 07

- US factory orders -1.2% vs -1.4%

- US total vehicle sales 11.56mn vs 11mn - Challenger job cuts yoy -57.2% vs -47.1%

- US initial jobless claims 479k vs 457k

- US consumer credit -$1.3bn vs -$9.1bn

- Gail, Glaxo Cons, India Cem, Madras Cem, Nestle, NMDC

- Hindalco, Plethico Pharma, Punj Lloyd, Shiv-Vani Oil

- Adani Power, Bombay Rayon, GIPCO, IDFC, Mundra Port

- Anant Raj Ind, Aurobindo Pharma

- Gammon Infra, ICSA, Nalco, Petron Eng, Power Grid

- GMR Infra, KSK Energy

Aug 09

Aug 10
- US nonfarm productivity - Wholesale inventories

Aug 11
- US Trade balance

Aug 12
- India IIP June data - US import price index mom - Initial jobless claims - IGL, Ranbaxy, Tata Power, Divis Lab, Ansal Prop, Apollo Hosp, PTC, Tata Steel, Hindustan Oil, MTNL, Moserbaer, SBI, Cummins India, Renuka Sugars

Aug 13
- US consumer price index - Business inventories

Aug 14

- Britannia, Opto Circuits, Rel Capital, Jain Irrigation

- IVRCL Infra, Nag. Const, Amtek Auto, Rolta, Educomp, Jai Corp, RCF, Tata Motors, Piramal Health, Great Off

- Bharti Airtel, Bajaj Hind, FinTech, Parsvnath, Videocon Ind

- Adani Ent, DCHL, Gammon India, RCom, Suzlon, Patel Engr, Cipla, Wockhardt

- Lanco Infra, Shree Cem, Simplex Infra

Aug 16
- India July monthly inflation - US empire manufac

Aug 17
- Housing starts mom% - Building permits mom% - US July IIP

Aug 18
- ABC consumer confidence -

Aug 19
- Leading indicators

Aug 20

Aug 21

Aug 23

Aug 24
- Existing home sales mom

Aug 25
- Durable goods order - House price index mom

Aug 26
- US initial jobless claims

Aug 27
- US GDP qoq

Aug 28

Aug 30
- US personal income

Aug 31
US consumer confidence

Orange: AGM/dividend (D), Black: Results, Blue: Economic data

Market Mantra

Recommendation parameters for fundamental reports: Buy Absolute return of over +10% Market Performer Absolute return between -10% to +10% Sell Absolute return below -10%

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