trade focus

Inside this issue:

Stock Focus 2 News Focus 3

Future Focus 2 Trading Table 4

Newsletter from Muthoot Securities Ltd

Trade Focus 31ST MARCH 2011

Market View

www.muthootsecurities.com

Yesterday we asked the question as to whether the market will follow the projections or respond to the flows? It appears that it has decided to respond to the flows, as it pushed thru to new swing highs by the end of the day. The flurry towards the end of the day implies that traders had switched to playing a bit short- perhaps bears were encouraged by the lack of movement during the day? Be that as it may, the strong push upward only reinforces the bullish argument once more. For clues on whether the market can forge ahead to even higher levels, we need to take a look at the options positions once again. We have maintained time and again that this month's action is largely centered around the action in the options area. There is no doubt that the strong FII flow over the last 4-5 sessions has also helped. We have seen nearly 1 bn USD flow in (which is what we had lost in the past 2-months). This positive flow has been leveraged by the operators thru a game in options for a greater impact, it appears. We find no particular addition in the 5900 P, so there is no fresh bullish action. Instead, we find a huge addition in the 5900C. Since the price is miniscule, this has to be punt-ing long positions for today's expiry. No position in the April series is really remark-worthy. So with this expiry, the game should be up. We had advised profit taking in holdings. Considering the higher index, was it a wrong strategy? Not really. Take a look at the stocks scenario. The gainers list is a rather eclectic one. Also, the moves dur-ing the day were so stilted that it would have been quite difficult to take up fresh positions and hope to benefit from them. As far as holdings go, very few of them really went up any big way to warrant con-tinuing to hold them. Hence booking profit was the right action and continues to be so for today also. Index is at the end game point with expiry today. If the game goes down to the wire in the last hour or so, anything is possible. But if there is an attempt to hold the 5800 levels - as appears possible- then fresh trading today may not really pay off. Also many of the Prop books may be off the market today

being the year ending. So volumes are likely to be lower. Index target remains unchanged from 5845. Use higher levels to exit longs. No shorts yet.

30 Min Nifty Futures



Stock Focus

Future Focus STOCK FUTURE

Buy Alok around 22-23 stop 21.5, target 24-25.

Sell Cairn below 348 stop 351 target 337

NIFTY FUTURE Buy Nifty above 5805 stop 5780 for tgt 5850. Exit positional longs, if any, near 5840-50.

PIRAMAL HEALTHCARE

Source : ASA

IL&FS TRANSPORTATION

Source : ASA

Last session, this stock exceeded its 38.2% retracement level of the swing Jan-March 2011 and closed higher. Yesterdays razor sharp rise has also led the RSI to move out of 60 levels and witness a change in range, to the bullish side. Volumes were massive during the last session rally. Looks good for a further rise here, buy.

Entry Stop Target

Sell below 431 4 Points 425 / 421

Sell Rallies 436-37 4 Points 431 / 428

Entry Stop Target

Buy Above 238 3 Points 243 / 246/248

Or dips to 231-30 3 points 235 / 239

Last three sessions have seen a aharp de-cline in prices, plunging heavily on aggres-sive sell off. The fall has been on increasing volumes, with yesterdays fall seeing mas-sive volumes. The stock is below its 100 & 200 DMA making comfortable ground for bears. Overall sentiment continues to re-main weak, go short.

Note: >> Wait for 5 minutes before executing any trade. >>If it is a buy trade then wait to break the 5 minute high. >> If it is a sell recommendation then wait for 5 minutes and then the prices must decline below the 5

Minute low to initiate the trade. >>Any change will be intimated through SMS.

Day Trading Table



SCRIPT CLOSE SECOND SUPPORT

FIRST SUPPORT

PIVOT FIRST RESISTANCE

SECOND RESISTANCE

ABB 812.3 787 800 815 828 843ACC 1078.65 1027 1053 1069 1094 1110AMBUJACEM 150.25 133 142 147 155 161AXISBANK 1426.45 1405 1416 1424 1435 1443BHARTIARTL 359.4 351 355 359 363 366BHEL 2061.2 2036 2049 2071 2083 2105BPCL 613.55 599 606 613 620 627CAIRN 347.2 340 343 349 353 358CIPLA 327.85 305 316 325 336 344DLF 263.5 250 257 261 268 272GAIL 459.15 447 453 458 464 469GRASIM 2457.7 2405 2431 2455 2482 2505HCLTECH 476.3 463 470 478 484 492HDFC 698.45 680 689 695 704 709HDFCBANK 2341.5 2279 2310 2337 2368 2395HEROHONDA 1557.55 1537 1547 1560 1571 1584HINDALCO 205.25 201 203 207 209 212HINDUNILVR 278.05 272 275 278 281 283ICICIBANK 1109.1 1093 1101 1108 1116 1123IDEA 65.9 63 65 66 67 69INFOSYSTCH 3170.9 3130 3151 3177 3197 3224ITC 177.6 174 176 179 180 183JINDALSTEL 688.75 673 681 688 696 704LT 1656.65 1625 1641 1666 1682 1707M&M 709.95 681 695 704 718 727MARUTI 1269 1211 1240 1268 1297 1325NATIONALUM 98.25 96 97 99 100 102NTPC 188.85 185 187 189 191 193ONGC 282.4 275 279 284 288 294PNB 1217.55 1150 1184 1207 1241 1264POWERGRID 101 99 100 101 102 102RANBAXY 442 434 438 442 446 450RCOM 109.8 107 108 110 112 113RELCAPITAL 580.05 570 575 582 587 594RELIANCE 1032.5 1018 1025 1031 1039 1045RELINFRA 676.3 664 670 678 685 693RPOWER 124.65 123 124 125 126 127

Day Trading Table cont’d

Disclaimer This document has been sent by The Muthoot Group and is meant for the recipient for use as intended and not for circulation. This document should not be reported or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. The Muthoot Group, its directors and employees, will not in any way be responsible for the con-tents of this report. This is not an offer to sell or a solicitation to buy any securities. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. The Muthoot Group, its directors or employees, may from time to time, have positions in, or options on, and buy and sell securities referred to herein. The Muthoot Group, during the normal course of business, from time to time, may solicit from or perform investment banking or other services for any company mentioned in this document.



SCRIPT CLOSE SECOND SUPPORT

FIRST SUPPORT

PIVOT FIRST RESISTANCE

SECOND RESISTANCE

SAIL 167.05 162 165 168 171 175SBIN 2856.1 2739 2797 2834 2893 2929SIEMENS 876.1 873 874 876 878 880STER 172.2 170 171 173 174 176SUNPHARMA 444.85 437 441 445 449 454SUZLON 44.2 43 44 44 45 45TATACOMM 244.7 240 242 246 248 251TATAMOTORS 1249 1229 1239 1249 1259 1269TATAPOWER 1324.75 1289 1307 1328 1346 1368TATASTEEL 615.8 610 613 618 621 626TCS 1151.95 1135 1143 1154 1162 1173UNITECH 41 38 40 40 42 43WIPRO 472.85 458 465 470 478 483

SENSEX 19290.18 19097 19194 19275 19372 19454NIFTY 5787.65 5732 5760 5782 5809 5831

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