Technical trend

Equity Market: India

LTP Daily Change (Pts.) Daily Change (%)

(24th June 2011) Daily Update

Dow Jones Nasdaq S&P 500 FTSE 100 DAX Brazil Mexico HangSeng Nikkei Kospi Taiwan Strait Times Sensex Nifty
Commdty/ Forex Market

12050 2686 1283 5674 7149 61194 35326 21944 9642 2073 8545 3050 17727 5323
LTP

-59 17 -3 -98 -128 -229 -72 185 44 17 -22 6 176 45

Daily Change (Pts.)

-0.49 0.66 -0.28 -1.71 -1.77 -0.37 -0.21 0.85 0.47 0.85 -0.26 0.22 1.01 0.86
Daily Change (%)

Fig1: Nifty (Daily Chart)

Source: Peerless Research

Global Market: U.S Market finished off session lows Thursday

following a report that Greece has forged a deal with the EU and IMF on an austerity plan, but investors were cautious following a weak jobs news in addition to the Fed's tepid economic remarks. Technically Weekly chart reveals negative divergence exist in DJIA and presently heading towards 2 years old trend line support at 11800, breach of which would be extremely negative for the market.

Indian Market: Closing Brief: The key benchmark indices surged, settling near the
day's highs, on the back of gains in index heavyweights ICICI Bank, Reliance Industries, Larsen & Toubro and Infosys. FMCG and consumer durables stocks rose. IT stocks also gained after the industry body National Association of Software and Services Companies (Nasscom) said demand for outsourcing services remains strong. PSU OMCs rose on reports the government will raise diesel, cooking gas and kerosene prices next month.

Gold ($/Oz) Silver ($/Oz) Copper Fut. Crude INR/ USD YEN / USD USD/ EUR

1524.10 35.29 408.05 108.45 44.95 80.52 1.42

3.60 0.27 2.40 1.19 0.06 0.01 -

0.24 0.80 0.59 1.11 0.13 0.01 0.05

Short Term Outlook: Bulls must hold 5348 as the break of which
would confirm of a major downside potential in Nifty and might head towards 4 year old channel line where the lower panel of the trendline meets around 5100 while in the short term a short relief rally might be expected till 5750 and sustaining above 5600 would mark as the end of the corrective 4th wave formation in daily chart and might head higher till 6180 for wave 5 to end.

Events to Watch for the Day

U.S. Market Event Durable Goods Order GDP Estimate 1.0 % 1.9 % Prior -3.6 % 1.8 %

Market Trend
SHORT TERM (Less than 1 month) MEDIUM TERM (3-6 months) LONG TERM (2-5 yrs.) DOWN UP UP

Market Breadth
Advances Declines Unchanged 52 Week High 52 Week Low

BSE
1161 1609 139 26 347

Outlook for the day: Engulfing bullish candle formation in daily chart with rise in volume indicating of a possible reversal. Considering yesterdays trading session Nifty provided a continuous third inside day bar compared to heavy selloff witnessed on Monday which further indicates that the range bound movement in the market to continue further within the broader range of 5177-5400. Nifty presently trading below the 4-month old trendline with all major lagging indicators like MACD are in negative terrain with sell crossover. However, RSI and Stochastic are turning positive and trading in neutral territory. To conclude mid-term momentum in the market to remain negative while as long as Nifty hold February low of 5177 a short term corrective bounce is possible and positive bias remain after a continues lower hairline formation in daily chart. Nifty if manages to close above 5250 it would lead to a lower shadow in the weekly chart also, which could be positive for the coming week. For the day Nifty to open flat and intraday support exist at 5280 and Nifty likely to face stiff resistance near 5350. Momentum in the market to remain positive as long as Nifty stays above 5320. Support/Resistance levels of Indian Equity Indices S1 S2 CMP R1 R2 Sensex 17585 17450 17727 17820 17935 Nifty 5280 5240 5323 5350 5385 Nifty (Fut) 5273 5243 5316 5345 5377
Please see additional important disclosure at the end of this report

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Institutional Research Technical Analysis SECTORWISE PERFORMANCE

5 4 3 2 1 BK AE N X FG M C A U T O C G O A I&S L G H C

Equity Market : India

Last 3 day's Sectorw ise Performance

P S U

PE OR W

RT EY A L

C D

ML E T A

I T

0 -1 -2 -3 -4 -5

21.06. 11

22. 06.11

23.06.11

SECTOR OUTLOOK
BSE SECTORAL INDICES
AUTO

TREND (ST)*
DOWN

SHORT TERM OUTLOOK

BANKEX CD

CONSOILDATE/ DOWN UP/CONSOLIDATE

CG

UP/CONSOLIDATE

FMCG

UP/CONSOLIDATE

HC

SIDEWAYS/ CONSOLIDATE SIDEWAYS/ CONSOLIDATE DOWN/CONSOLIDATE SIDEWAYS/ CONSOLIDATE SIDEWAYS

IT MEATAL OIL&GAS POWER

PSU

CONSOLIDATE/ DOWN

Index had been in lower top lower bottom formation and has breached the crucial 61.8% retracement level at 8740. M&m, Bajajauto, Ashokleyland, Amtekauto and Apollotyre can be the better pick from the sector. Double bottom formnation exist in weekly chart around 18000, breach of which could witnesss further selling pressure. HDFCbank, Axisbank, BOB, BOI, FederalBank, has an upside potential. Prices trading within a rising channel formation and heading higher. However, momentum indicators are in overbought territory. Titan, Rajeshexpo, Vipind, Gitanjali, Bajajelect, Whirlpool need to be accumulate for an upside rally. After taking multiple support around 12500 the index has provided a pullback. Presently trendline resistance exist at 13500, breach of which could witness further upside in the sector. LT, Bhel, Crompgraeves, Suzlon, Thermax, Havells, Punjlloyd are in bullish formation. Multiple resistance of 3800 being breached and presently prices are trading above it. Rising channel formation is also noticed in daily chart where lower panel of the channel coincides around 3800. Nestleind, Dabur, Godrejcp need to be accumulated from present levels. The index is trading above 200SMA and with a possible pennat formation in the daily chart. The sector is in bullish formation and crucial support exist at 6250. Sunpharma, Cipla, Glaxo, Ranbaxy, CadilaDivislab, Glenmark, Ipcalab, Fortis are looking good at current levels. Index has taken support from 5900 and recovering, trade above 200SMA at 6190 can be labeled as trend change. TCS and OFSS might rally from current level. Symmetrical triangle formation is underway with support at 14500 might act as the end of 3rd leg of the pattern. Hindalco, NMDC, Hindzinc, Welcorp might rally from current levels. Presently the index seems to be in a consoldation phase after taking support from 9100 level. Oscillators are still in neutral territiory. Reliance, Gail, Cairn, Petronet. Gap created around May 2009 at 2450-2500 has been providing support in the sector, sustaining above which would be considered as trend reversal. Bhel, NTPC, Tatapower, Suzlon, Jswenergy, are looking good. Oscillators turning weak from equilibrium level. However downside might be limited till 8200. Scrip specific movement in likely.

STOCKS TO WATCH FOR THE DAY: Strong Stocks S1 S2 RELIANCE 858 HINDUNILVR 315 Weak Stocks MARUTI BHEL

840 309

CMP 870.50 317.60

R1 880 320

R2 899 325

1077 1888

1050 1870

1099.30 1898.85

1111 1930

1131 1950

Tk E C

Institutional Research Technical Analysis

Equity Market : India

TOP PICK OF THE DAY

VIPIND: (CMP 703.05)

Strategy: Short Term buy call accumulate at 698-703 with stop loss 675 for the Target of 735 & 749

Support: 690 & 675

Resistance: 712 & 735

BALRAMCHIN: (CMP 57.70)

Strategy: Short term buy call accumulate at 57.50-57.70 with stop loss 56 for the Target 61.50 & 62.80

Support: 57.20 & 56.00

Resistance: 58.75 & 61

PREVIOUS DAYS RECOMMENDATION: FOLLOW- UPS Technical Call GODREJIND GMDC Recommendation Buy Buy Remarks Recommended at 201 Recommended at 147 Profit / Loss (%) -2.11 (on closing basis) +0.23 (on closing basis)

Institutional Research Technical Analysis

Equity Market : India

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