Market Calls

Scrip                    CMP           Call        S/L            Tgt.1             Tgt. 2          D/L                     

Fag Bearing           3559           Buy        3515             3620               3710        Dec. 26            

MRF                    37871           Buy      37560           38350             38610              "                    

IPCA                       710           Buy         705               720                 730             "               

Pfizer                     2050           Buy       1983             2120                2155            "                  

Wockhardt               914           Buy        904                927                 953            "                         

Central Bank              85           Buy          84                 87                  90             "                     

Orient Bank              316          Buy         310                325                 330            "                  

Castrol                     507          Buy         501                514                 525            "                    

Vaibhav Global          599          Buy         590                611                 620             "                 

Market Calls

Scrip                       Call         S/L        Target 1         Target 2      Deadline    

Lupin                       Buy        1468          1498             1510           5th Dec.      
Strides Arcolab         Buy          835           864               872            "     "        
Shasun Pharma        Buy          240           255              259             "     "        
Pfizer                       Buy         1760         1815             1820            "     "        
J K Tyre                   Buy           658           682              690             "     "         
Karnataka Bank        Buy          142           149               155            "     "        
Central Bank            Buy             77             81                83            "     "       
Bank Of Baroda        Buy          1076         1120             1130            "     "        
Punjab Nat. Bank     Buy          1059         1110              1120            "     "         

Market Calls

Scrip                  Call          CMP         SL         Target 1     Target 2     Deadline

BPCL                  Buy         724.75       717            739              749          Nov. 7th
Tata Power             "            93.85         92.5           96              100            "      "
GAIL                      "          528.8         518            547              560            "      "
Maruti                    "         3337          3292          3425            3440            "      "
Andhra Bank          "            83.85         82              87.5             90            "      "
UCO Bank             "             87.45         86             92                95            "      "
HDFC Bank           "            911.85       907           922              930            "       "
ICICI Bank             "          1626          1612         1655            1675            "      "

Market Calls

Scrip               CMP          Call        SL         Target 1       Target 2       Deadline

Bajaj Auto       2529           Buy       2430          2590            2620            31st Oct.

Maruti             3165            "           3135          3315            3350                "           

Hero Motors    3110            "           3075          3210            3260                "            

Tata Motors      515            "             510            545              555                "         

Kotak Bank     1061           "            1036          1123            1142                "          

ICICI Bank      1575            "            1555          1625            1660               "        

Powergrid         139            "             138            146              149               "            
Gail                  481           "              465            490              495               "     

Siemens           858           "              835            895              905               "     

Engineers         266           "              255            287              297               "      

India

REC Ltd            284           "              277            294              300              "         

BOSCH Ltd   15003            "          14900         15500           15800             "      

BHEL               240            "              235            250              255              "       

  

HAPPY DIWALI

With the gleam of lights and echoes of prayers,
With the sweetness of sweets and fireworks glare,
Wishing you all a jubilant Diwali and a successful year.

Market Review

Both the International Monetary Fund and the European Central Bank President
have flagged growth concerns going forward.    There is a significant surge in
volatilities across asset classes like gold, crude oil, equities, etc.    Further, 
major equity indices of the world are dangerously trading at crucial technical
levels.    This is causing investors and traders to go long on government bonds
and short on equities.

Locally,  the manufacturing output data released post market hours on Friday
remained subdued at 0.4% in August.    Markets will react to this data on Monday.
Barring Infosys results on Friday,  nothing has been positive for the Indian markets
in the week goneby.    Now,  it is only the earnings season and the results of the
upcoming assembly elections that may save Indian markets from the fate of the
rest of the world.

Market Review

Rise in the US treasury yields is putting global markets in a tight spot.    Come
Wednesday Sep. 17th,  the US Federal Reserve Bank is going to decide on the
future course of interest rates and the mortgage backed securities & treasuries
purchase program.    The interest rate concerns in the US has caused the Asian
currencies ( particularly the South Korean Won,  the Indian INR and the Thailand
Baht ) to suffer the most.    Yet again,  the US may 'sneeze' causing the global
markets to contract flu.

Locally,  the industrial production data announced on Friday is not encouraging
either.    Given the rigidity in inflation,  the RBI will not turnaround the interest
rate trajectory in the near future.                                                                 

Going forward,  equities may continue to remain under pressure for the coming
week.    Therefore,  bulls beware.

Market Review

Globally,  equities are in an uptrend,  particularly the US.    The US dollar has
gained remarkably on account of a rate cut from the European Central Bank and
an announcement of quantitative easing program.    The positive US economic
data is also supporting the US dollar.    That is putting pressure on gold prices.

Locally,  fundamentals for India have improved.    Positive sentiment amongst
the foreign fund managers towards India is driving Indian markets higher.
Having said that,  Nifty is showing signs of fatigue on the upside.    Barring auto
and pharmaceutical sectors,  other sectors just appear to be languishing.  
Going forward,  Nifty may consolidate at higher levels for the coming week.  

Market Synopsis

Globally,  stock markets are in a correction mode.    US Dollar has gained against
major currencies over the last couple of weeks owing to strong economic data in
the USA.    Concerns of an Argentine debt default are weighing on the emerging  
markets.    No wonder did the currency traders turned out to be net sellers in the
emerging market funds.

Locally,  Indian markets have been languishing at higher levels without any
conviction for the past several trading sessions.    Markets will be keenly          
watching RBI's next move in its policy on 5th August.    If Friday's session in
Nifty is the harbinger of things to follow then a correction is on the anvil.

Market Synopsis

Indian markets have entered the zone of secular bull run.    In this regard,
a stable government at the center provides the necessary backbone.

However,  concerns like deficient monsoon,  the escalating crisis in Iraq
do weigh on the markets.    The prevalence of high interest rates in the economy
is another dampener.

Going forward,  markets will be mainly driven by the General Budget on 10th
July and the upcoming earnings season.

Market Trajectory

No matter how the world markets are doing, Indian markets are in a state of
frenzy. It appears that sooner or later, 7000 will be taken out on Nifty.

Market Outlook

Last week,  the US Federal Reserve stayed on its course on lowering its assets
purchase program,  dropping it by USD 10 billion to bring it down to USD 55 
billion a month.    It also released interest rate forecasts that predicted rates would
go up by 1% by end 2015 and 2.25% by end 2016.    Janet Yellen stated that rates
would start rising six months after the asset purchase program got over and that 
should be over by end 2014.    Markets quickly discounted the development.
Dollar Index rose,  gold prices fell and yields in the US rose.
Another development has been the stand off between Russia and the West over
Crimea.    Market analysts believe that any escalation of the crises will hurt 
emerging markets.

Regardless of all these headwinds,  Nifty is inching upwards on course to achieving
historic peaks by the time the elections got over.

Market Outlook

Last week saw metal stocks getting hammered on account of growth concerns in
China.    IT and pharma sector underperformed the Nifty.    Overall,  the market
was subdued.

Now,  Crimea has voted in favour of Russia in a referendum.    The US and EU
are preparing to slap sanctions on Russia.    Depending on the nature of the 
sanctions,  the yellow metal may remain firm and equities may remain under 
pressure this week. 

Market Synopsis

Market is showing signs of strong bullish sentiment partly on account of 
healthy Q3 CAD (current account deficit) number at $4.2 billion and partly
on account of probable BJP led ruling coalition at the centre in the upcoming
elections.    India is also offering a better investment destination as compared
to China within the Asian region and also amongst the fastest growing nations
in the world.

The nervousness with regard to the murky shadow banking system in China
and its likely fallout,  is working in India's favour.

The Dragon Falters

The heavy selling pressure in the Chinese Yuan continues unabated.    This may cause unwinding
of the Yuan carry trade at some point of time.    This development coupled with the acceleration,
if undertaken by the US Federal Reserve Bank,  of tapering of the Quantitative Easing program
could trigger a cascading effect in the global markets.

Carry trades involve borrowing funds in a nation with low interest rates to purchase high yielding
assets elsewhere.    The initial cracks in the Chinese shadow banking system appears to be
surfacing.    The dragon is stumbling.

Weekly Outlook

Last week saw some significant selling in the Chinese Yuan.    Now that the G20 choosing to look
away at the concerns of the emerging economies with regard to market volatilities,  the latter shall
continue to remain vulnerable to capital outflows.

Now that the Vote on Account is behind us,  there appears to be no significant domestic trigger
except for the data points like the IIP,  etc.    In the light of the above,  global cues will drive Indian
markets.

Finally,  it appears that Nifty may see significant spike in volatility going forward.

Weekly Outlook

Globally,  the risk-off sentiment is prevailing in the markets.    Add to that,  the soft economic
data that has emanated from the US has kept the dollar index subdued causing the yellow metal
to rally in the short term.    Moreover,  the intent of the US Federal Reserve Bank to stay on its
taper course has further added to the risk aversion sentiment.

Locally,  markets will be closely watching the Vote-on-Account (VoA) session in the Parliament
on Monday.    In anticipation of some kind of positive surprise  on the VoA front,  equities saw
some short covering during the fag end of Friday's trading session.    Will the Finance Minister
reciprocate to the market sentiment ?    One will have to wait and see till Monday.    Foreign
Institutional Investors (FII) have been net sellers in Indian equities for the past several trading
sessions.

Finally,  it appears that equities may remain listless with a downward bias.

Market Outlook

The week goneby witnessed some kind of stability returning in the markets.    Volatility was
seen to be subsiding in global markets.    Having said that, emerging markets are not out of
the woods yet.

For the coming week,  world markets will be keenly watching Janet Yellen's comments,
as she will be making a debut appearance before the House Financial Services Committee
on Tuesday and the Senate Banking Committee on Thursday,  as chairperson of Federal
Reserve Bank.

Finally,  it appears that global equities may see a fresh bout of selling at some point of time.

Weekly Outlook

The week goneby, witnessed selling pressure in the emerging market currencies and stocks.
Volatility has spiked up significantly in these markets.    Even rate hikes from the central
banks of some economies have failed to lure investors.    There is no sign of abatement of
this nervousness.

Back in India,  now GDP is estimated at 4.5% much below the previous estimate of 5% as
per a government agency.    Further,  according to a latest data,  consumer vehicles sales
have dropped for the month of January 2014 YoY.

Given all these factors,  markets may continue to remain under pressure for the coming week.

Weekly Outlook

For the earlier part of the week goneby,   markets were inching upwards although unconvincingly.
On Friday,   Ranbaxy haunted the markets and catalysed the correction.    Now,   there is growing
consensus that the economy will have to live with high interest rates for some more time.

Globally,   markets are in the soup.    European equities crashed on Friday.    Emerging market
currencies tanked led by Argentine Peso.    Now this contagion could spread to other markets
as well.    There is a growth concern emanating from China.

Amidst all these,   the prospects for Nifty do not look good going forward.

Weekly Outlook

The coming week will be eventful in terms of companies announcing their quarterly results.
Companies like UCO Bank,  IDBI Bank,  Indian Overseas Bank,  Bank of Baroda,  Yes Bank,
Axis Bank,  Bajaj Auto,  HCL Tech,  TCS,  Coal India,  ITC,  HDFC Bank,  Federal Bank,
and the big boy Reliance Industries Limited are amongst others that are scheduled to announce
their Q3 results.    Inflation data is also expected.

In the light of the above,  markets may remain stock specific.    Having said that,  Nifty is
precariously trading near the edge of the cliff.    No matter what,  Nifty must stay above
6120 -- 6140 range.  

Market Summary

The markets were experiencing listless trading sessions on account of the gloomy sentiment for
the past one week.    The upcoming earnings season was another factor that led to the continued
choppiness.

Today,  Infosys came out with its quarterly numbers and FY 14 forward guidance which were much
better than what the street was expecting.    The foreign trade data also contributed its bit towards
the exuberance on the dalal street.    But how far will the euphoria last?    One would suspect this
intraday rally in Nifty after looking at the way it closed.