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Morning Call 16 3 12

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					Morning Call
                                                                                                              16 March 2012

                                                                        Domestic Indices   Close           Prev. Close         % Change
    Status quo on policy rates
                                                                        Sensex 30            17,685.85             17,919.30            -1.30
                                                                        Nifty 50              5,380.50              5,463.90            -1.53
         Indian markets snapped its four streak and closed in the
          red ahead of budget 2012. Many of the sectoral indices        BSE Midcap            6,405.36              6,495.34            -1.39

          ended lower while IT index bucked the trend to close in       BSE Smallcap          6,780.45              6,846.34            -0.96
          green.
                                                                        Global Indices     Close           Prev. Close         % Change
         Banking index declined more than 2 percent as
                                                                        Nikkei               10,130.51             10,050.52             0.80
         maintained its status quo on policy rates.
                                                                        HangSeng             21,404.70             21,307.89             0.45

         Shares of aviation firms rose as reports claimed that rise     FTSE                  5,940.72              5,945.43            -0.08
         of passenger fares are likely to be hiked by 15 percent.       NASDAQ                3,056.37              3,040.73             0.51
                                                                        DJIA                 13,252.76             13,194.10             0.44
         Shares of Moil were in action on report the company is
         planning a foray into the power sector to diversify from its   Market depth       Advance         Decline             Turnover(mn)
         core operations.
                                                                        NSE                    392.00               1,099.00      122,779.50
                                                                        BSE                   1,006.00              1,848.00       27,679.20


                                                                        Currency Spot      Close           Prev. Close         % Change

`                                                                       USD/INR                    50.19                49.9             0.58
                                                                        EURO/INR                   65.36               65.05             0.48
                                                                        JPY/INR                    59.17               59.89            -1.20
                                                                        GBP/INR                    78.55               78.12             0.55


                                                                        Provisional
                                                                        (Cash) –BSE &        Buy(mn)               Sell(mn)        Net (mn)
                                                                        NSE
                                                                        FII’s (mn)           23,759.50             22,199.30        1,560.20
                                                                        DII (mn)              8,098.30             11,990.00        -3,891.70
    Outlook
                                                                        FII Derivative –
          The S&P 500 index closed above 1,400 for the first time                           Buy (mn)              Sell (mn)        Net (mn)
                                                                        NSE
          since June 2008, after another round of strong reports on     INDEX FUT            21,440.18             26,469.30        -5,029.12
          jobless claims and manufacturing.
                                                                        IND.OPTIONS         210,617.47            211,227.39         -609.92
                                                                        STOCK FUT            16,494.54             19,141.94        -2,647.41
         In today trade it’s a mixed bag for Asian markets and the
                                                                        ST. OPTIONS           9,813.33              9,725.75            87.58
          SGX Nifty is trading near 5400 mark. Going ahead Indian
          market is likely to open on flat note and react to budget
                                                                        Nifty Gainers          %           Nifty Losers             %
          announcements.
                                                                        HINDUNILVR                  1.99   RCOM                         -5.30
                                                                        WIPRO                       1.16   DLF                          -5.08
                                                                        NTPC                        0.90   IDFC                         -4.62
                                                                        TCS                         0.89   BHEL                         -3.52
                                                                        SUNPHARMA                   0.47   HDFCBANK                     -3.46
                               Market News

Domestic Macro
                                                                         ADR
     The Reserve Bank of India left key interest rates unchanged
     in its mid-quarter review of monetary policy. The repo rate         ADR            % Change          ADR                    % Change
     (the interest rate at which banks borrow from the RBI)
     remains at 8.50 per cent. It has remained unchanged since           HDFC Bank              -1.21     Mahindra Satyam             0.00
     mid-December 2011                                                   ICICI Bank             -0.21     Tata Comm                   -2.80
                                                                         Infosys                0.60      Tata Motor                  0.73
Global                                                                   Dr Reddy               -0.32     Wipro                       -0.36

     The International Monetary Fund (IMF) has agreed to pay
                                                                         Commodities
     28bn euros ($36.7bn, £23.3bn) towards Greece's second
     bailout of 130bn euros after last week's private debt swap.                                                   Prev.             %
                                                                              Commodities          Close
                                                                                                                   Close           Change
     Iran's banks to be blocked from global banking system The            WTI Crude                     105.90          105.47         0.41
     move will isolate Iran financially by making it almost               Gold $/oz                 1648.00            1644.25         0.23
     impossible for money to flow in and out of the country via
                                                                          Silver $/oz                    32.36           32.84        -1.46
     official banking channels.
                                                                          Copper $/m tonne          8535.00            8445.00         1.07

     U.S. unemployment benefits fell by 14,000 last week and              Aluminium $/m tonne       2232.50            2239.50        -0.31

     matched a four-year low. Initial claims dropped to a
     seasonally adjusted 351,000 from 365,000, the government
     reported. Claims from the prior week were revised up from
     362,000.


Corporate Buzz

     L&T Construction has won Rs 970-crore orders for the
     construction of a big IT campus in Kolkata.

     Infosys plans to double headcount at its product research
     and development (R&D) team to 1,000 in the next two years
     to accelerate design and development of solutions.

     SKS Microfinance Ltd has received sanction for two ‘rated
     pool assignment' transactions worth Rs 100 crore each, from
     two different banks, totaling Rs 200 crore. In such
     transactions, financial institutions sell pools of loans and
     receivables to investors in order to raise capital that can be
     used for fresh lending.

     Shasun Pharmaceuticals has sold its land for Rs 29 crore
     Shasun company officials intimated that the property of about
     24,000 sq.ft was surplus land available with the company. Its
     R&D facility had originally been located there but was
     subsequently moved out. The funds from the transaction,
     which is in the final stages, will be utilised by Shasun for debt
     reduction and related purposes.
                                         Daily Nifty




Markets snapped four day of consecutive gains yesterday and fell 1.5% yesterday. However, the volume was
on the average side. With the Union Budget being scheduled today the markets would remain volatile for the
day and could potentially determine the trend for the markets. The key supports for Nifty are placed at 5300
and 5270 levels, while the resistances are pegged at 5440 and 5500 levels.
                                                  TECHNICAL COMMENTARY


             S1      S2     PIVOT R1       R2     TRADING GUIDELINES
ACC           1334   1325    1347   1356   1369
                                                      •   This model is based on the premise that the PIVOT is the
AMBUJACEM     163     161     167   168     172
AXISBANK      1219   1205    1247   1261   1290           most important price level that decides the intraday
BAJAJ-AUTO    1714   1701    1742   1754   1783           trend. Much like how the door or a window hangs by a
BHARTIARTL     327    325     333    336    341           hinge and sways in the wind, the intraday trend also
BHEL          277     274     286   290     298           hangs by this PIVOT LEVEL and swings because of the
BPCL           655    648     669   675     690
CAIRN         364     359     369   374     379
                                                          demand-supply, volatility and market sentiments
CIPLA          305    303     308   310     313           prevailing in the market. Hence its importance in
COALINDIA     338     334     340   344     345           intraday trading.
DLF            190    187     197   201     208
DRREDDY       1663   1657    1682   1688   1707       •   Wait for the market price to stabilize after opening in the
GAIL           369    367     374   377     382
                                                          first 30 minutes of trading.
GRASIM        2762   2726    2793   2829   2860
HCLTECH        490    485     498   502     510
HDFC          652     648     665   669     682       •   Opening Price is considered around close of previous
HDFCBANK       499    494     515    520    536           day. Avoid BUYING if prices open abnormally high and
HEROMOTOCO    1931   1895    1954   1990   2013           avoid selling if prices open too low.
HINDALCO       140    138     142   144     146
HINDUNILVR    385     380     388   393     396
                                                      •   If the market price is stable above the pivot level after
ICICIBANK     917     904     937   950     970
IDFC          141     140     146   148     153           20-30 minutes of opening, then GO LONG and book
INFY          2855   2845    2880   2889   2915           profit near the resistant level (R1 & R2)
ITC           207     205     210   213     216
JINDALSTEL    594     585     600   609     615       •   If the market price is stable below the pivot level after
JPASSOCIAT     77     75      79     80     82
                                                          20-30 minutes of opening, then GO SHORT and book
KOTAKBANK      542    532     559    568    586
LT            1341   1322    1368   1387   1414           profit near the support level (S1 & S2)
M&M           649     646     660   664     674
MARUTI        1352   1342    1366   1377   1391   STOP LOSS: Since you are aware of the ʹpotential returnsʹ at the
NTPC           178    176     179   181     182   time of initiating an intraday trade (difference between the entry
ONGC          281     278     287   290     296
PNB            971    958    1003   1016   1048
                                                  price and profit targets), you should set up an appropriate STOP
POWERGRID     109     107     111   112     115   LOSS around 1% above / below of the trade price or a level
RANBAXY        404    400     415    419    430   comfortable to you, to protect yourself if the market turns and
RCOM           92     91      95     95     98    goes against you.
RELIANCE      781     773     801   809     829
RELINFRA      624     614     638   647     662
RPOWER         131    128     133    135    137
                                                  ALTERNATE STRATEGY: If you have already initiated a trade
SAIL           98     97      99    100     101   with clear-cut profit targets and a stop loss level, and find
SBIN          2251   2228    2310   2333   2392   during the course of the trading day that the market turns and
SESAGOA       201     198     206   209     214   goes the other way and crosses the TREND LEVEL, then trade
SIEMENS       792     780     802   813     823
                                                  again: For instance, if your first trade was a LONG trade and the
STER          116     114     118   120     123
SUNPHARMA      583    579     587    591    595   market price drops through the TREND LEVEL to lower price
TATAMOTORS    285     280     290   295     299   levels, then GO SHORT and if your first trade was a SHORT
TATAPOWER     108     106     110   112     113   trade and the market price rises through the TREND LEVEL to
TATASTEEL     456     450     462   468     473   higher price levels, then GO LONG.
TCS           1152   1135    1161   1178   1187
WIPRO         425     417     429   437     440
                                                  S1, S2 are the immediate support levels
                                                  R1, R2 are the immediate resistance levels.
Cholamandalam Securites Limited
Member: BSE, NSE, MSE
Regd. Office: Dare House, 2 (Old # 234) N.S.C. Bose Road, Chennai – 600 001.
Website : www.cholawealthdirect.com
E-mail id – customercarewm@chola.murugappa.com


      LOCATION                                      BEM                      PHONE NUMBERS                                                         E-MAIL ID
AHMEDABAD                         Mr. swetal                                 079 - 64500318 / 19                                 dealerahmd@chola.murugappa.com
BANGALORE                         Mr. Sathyanarayana.N                       080- 41503340 / 44                                  sathyanarayanaN@chola.murugappa.com
CHENNAI                           Mr. Baskaran S                             044 - 26208911 / 14                                 baskarans@chola.murugappa.com
COIMBATORE                        Mr. Chandrasekar                           0422- 4292041/ 4204620                              chandrasekark@chola.murugappa.com
HYDERABAD                         Mr. Srinivasa Reddy D V                    040- 23316567/68                                    srinivasardv@chola.murugappa.com
KOLKATA                           Mr. Kumar Gaurav                           033- 44103638 / 39                                  kumargaurav@chola.murugappa.com
MUMBAI                            Ms. Sheetal Bheda                          022 – 22617210 / 30729730 / 31                      sheetalbheda@chola.murugappa.com
DELHI                             Mr. Maneesh                                011 – 30461161/62/63/64                             maneeshg@chola.murugappa.com

                                                                            REGIONAL EQUITY MANAGER
CHENNAI                           Mr. Lakshmanan T S P                       9840019701                                          lakshmanantsp@chola.murugappa.com
EAST & WEST                       Mr. Ananthanarayan J                       9930103070                                          ananthanarayanj@chola.murugapa.com
SOUTH                             Mr. Shankar P V                            9840494132                                          shankarpv@chola.murugappa.com

                                                                                     RESEARCH
Mr. Alagappan A                   Financial Services                         044-3000 7363                                       alagappana@chola.murugappa.com
Mr. P.Vinayakam                   Power                                      044-30007360                                        vinayakamp@chola.murugappa.com
Mr. Sathyanarayanan M             Information Technology                     044-3000 7361                                       sathyanarayananm@chola.murugappa.com
Mr.Michel Charles C               Technicals                                044-30007353                                         michelcc@chola.murugappa.com
Mr. Vijayaraghavan V              Associate                                  044-3000 7266                                       vijayaraghavanv@chola.murugappa.com

                                                                                    COMPLIANCE
Mr.Balaji H                       Dy.Manager-Compliance                      044 - 3000 7370                                     balajih@chola.murugappa.com

DISCLAIMER:
The research analyst who is is primarily responsible for this report certifies that: (1) all of the views expressed report accurately reflect his or herhis or heropinions about any and all
The research analyst who primarily responsible for this report certifies that: (1) all of the views expressed in this in this report accurately reflect personal personal opinions about
any and all of the subject securities or issuers; of any ofno part of any of thecompensation was, is, or will be directly oris, or will related to the specific recommendations or views
of the subject securities or issuers; and (2) no part and (2) the research analyst's research analyst's compensation was, indirectly be directly or indirectly related to the specific
expressed in this report. This report has in this report. on the basis of been prepared is already available in publicly accessible media or developed through analysis of Cholamandalam
recommendations or views expressed been prepared This report hasinformation that on the basis of information that is already available in publicly accessible media or developed
through analysis of Cholamandalam Securities Limited. Cholamandalam Securities Limited makes every effort to use reliable, comprehensive information, but we make no
Securities Limited. Cholamandalam Securities Limited makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete.
representation that it is accurate or complete.


The views expressed are those of the analyst and the Company may or may not subscribe to all the views expressed therein Cholamandalam Securities Limited reserves the
right to make modifications and alterations to this statement as may be required from time to time without any prior approval. Cholamandalam Securities Limited, its
affiliates, directors and employees may from time to time, effect or have effected an own account transaction in or deal as agent in or for the securities mentioned in this
report. The recipient should take this into account before interpreting the report.

This report is for private circulation and for information purposes only. It does not provide individually tailor-made investment advice and has been prepared without regard to
any specific investment objectives, financial situation, or any particular needs of any of the persons who receive it. All investors may not find the securities discussed in this
report to be suitable. Cholamandalam Securities Limited recommends that investors independently evaluate particular investments and strategies. Investors should seek the
advice of a financial advisor with regard to the appropriateness of investing in any securities / investment strategies recommended in this report. The appropriateness of a
particular investment or strategy will depend on an investor’s individual preference. Past performance is not necessarily a guide to future performance. Estimates of future
prospects are based on assumptions that may not be realized. . Re-publication or redistribution in any form, in whole or in part, is prohibited.



The news items appearing in this are collected from various media sources and we make no representations that it is complete or accurate.

				
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