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Morning Notes

VIEWS: 8 PAGES: 6

									                                                                  Morning Notes
                                                                                                                                                                     LKP Retail Advisory
                                                                                                                                                                                        Nov 1, 2010

Indices                        29-Oct      28-Oct        % Chg.   Major Indices                    29-Oct   28-Oct     % Chg.    FII's & IFI's in equity                                   Rs.Crs
BSE Sensex                     20,032      19,941        0.46%    DAX                               6,601    6,595      0.09%    29-Oct                             Buy         Sell          Net
S&P CNX Nifty                    6,018      5,988        0.50%    Dow                              11,118   11,114      0.04%    FII's Investments                 3350         2615          735
BSE Midcap                       8,303      8,376        -0.87%   Nasdaq                            2,507    2,507     -0.01%    IFI's Investments                  1596        1251          344
BSE Small Cap                  10,598      10,759        -1.50%   CAC 40                            3,834    3,835     -0.02%    FII's contribution to the total turnover                    29%
                                                                  FTSE 100                          5,675    5,678     -0.05%    IFI's contribution to the total turnover                    13%
BSE Sectoral Indices
Bankex                         14,016      13,807        1.52%    Major Asian Indices              29-Oct   28-Oct     % Chg.    FII's in Derivatives                                      Rs.Crs
FMCG                             3,605      3,559        1.30%    FTSE Bursa Malaysia               1506      1499      0.41%    29-Oct          Index Fut Index Opt        Stock Fut Stock Opt
Oil & Gas                      10,949      10,873        0.69%    China SCI                         2979      2993     -0.45%    Net                 -1318         1054         -256          -13
Cons. Durables                   6,544      6,517        0.42%    HANG SENG                        23096     23211     -0.49%    OI                  16381       45475        38914           503
Health Care                      6,433      6,430        0.05%    TSEC weighted                     8287      8354     -0.80%    Chg.OI                  483       2873            35         292
Capital Goods                  15,819      15,844        -0.16%   KOSPI Composite                   1883      1908     -1.30%    FIIs' contribution to the total Derivatives turnover        18%
Auto                             9,910      9,942        -0.32%   NIKKEI 225                        9202      9366     -1.75%
IT                               5,993      6,019        -0.44%   Commodities (MCX)                29-Oct   28-Oct     % Chg.    Forex                           29-Oct       28-Oct       % Chg.
Teck                             3,681      3,702        -0.57%   Aluminium                          105       103      1.85%    Rs/$                             44.43        44.52       -0.21%
PSU                            10,140      10,224        -0.83%   Copper                             367       374     -1.74%    Rs/Euro                          61.55        61.72       -0.27%
Power                            3,118      3,146        -0.89%   Crude Oil                         3,626    3,673     -1.28%    Rs/Pound                         70.76        70.85       -0.13%
Realty                           3,635      3,678        -1.16%   Gold                             19,760   19,603      0.80%    Rs/Yen (100 Yen)                 55.01        54.90        0.20%
Metal                          16,682      16,903        -1.31%   Silver                           36,782   35,954      2.30%



               Company                   LTP    Chg      % Chg                    Company           LTP     Chg % Chg           Domestic Market View
               ICICI Bank                1164       75      6.9                   SAIL               193     -10       -4.7     Domestic markets likely to make a good start
Top Gainers




                                                                   Top Losers
 CNX Nifty




                                                                    CNX Nifty




               R Power                    157        4      2.4                   Suzlon              56      -2       -2.7     on bullish regional cues
               Bajaja Auto               1518       29      2.0                   Kotak Bank         465     -13       -2.7     The Indian markets managed a close with gains of
               ITC                        170        3      1.8                   Tata Steel         588     -16       -2.6     about half a percent in the previous session on a
               Axis Bank                 1470       25      1.7                   Tata Motors       1164     -29       -2.4     smart pullback in late trade. Today the start is
                                                                                                                                likely to be good and markets are likely to extend
                                                                                                                                their gains with a gap-up opening.
               Company                   LTP    Chg      % Chg                    Company           LTP     Chg      % Chg

               Glenmark Pharma            340       23      7.4                   Tata Chemicals     390     -36       -8.5     There were lots of good result announcement
Top Gainers




                                                                   Top Losers




                                                                                                                                during the weekend and that may propel the
 BSE 100




                                                                    BSE 100




               ICICI Bank                1162       71      6.5                   Financial Tech     986     -77       -7.2
                                                                                                                                markets higher, though some cautiousness may
               Shriram Trans              882       39      4.6                   ABB                823     -47       -5.4
                                                                                                                                prevail with the expected Reserve Bank of India’s
               Essar Oil                  147        6      4.6                   Punj Lloyd         118      -5       -4.3     (RBI) second quarter review of credit policy on
               Adani Enter                704       19      2.7                   SAIL               195      -8       -3.8     Tuesday, November 2, 2010.Finance minister
                                                                                                                                Pranab Mukherjee on Sunday had said, the RBI
                                                                                                                                will try to strike a balance between growth and
               Company                   LTP    Chg      % Chg                    Company           LTP     Chg      % Chg
                                                                                                                                inflation at its monetary policy review on Tuesday.
               Glenmark Pharma            340       23      7.4                   Tata Chemicals     390     -36       -8.5
                                                                                                                                RBI may raise interest rates for a sixth time this
BSE Midcap




                                                                   BSE Midcap
Top Gainers




                                                                   Top Losers




               Madras Cements             116        7      6.3                   MVL                 64      -6       -8.0     year However, considering, the possible
               Mahi & Mah Fin             735       30      4.2                   Financial Tech     986     -77       -7.2     moderation in food prices, volatile IIP numbers and
               Gammon India               204        8      4.0                   Monsanto India    2012    -145       -6.7     5 consecutive rate hikes, the decision might get
                                                                                                                                delayed as well.
               Honeywell Auto            2547       82      3.3                   Allcargo Glob      146      -9       -5.8
                                                                                                                                Result season is still going on and lots of major
                                                                                                                                companies like, Punj Lloyd, Lupin, JSW Energy,
               Company                   LTP    Chg      % Chg                    Company           LTP     Chg      % Chg
                                                                                                                                Hindustan Motors, and Century Enka along with
               Splash Media               107       10     10.0                   MBL INFRA          228     -25       -9.9
BSE Smallcap




                                                                   BSE Smallcap




                                                                                                                                many others will announce their September
 Top Gainers




                                                                    Top Losers




               AK Capital                 813       67      9.0                   Mahan Inds           6      -1       -8.8     quarter results.
               Sundaram Clayton           231       16      7.3                   Coral Hub            7      -1       -7.6
                                                                                                                                The Asian markets have made a good start and
               Elgi Equipments            184       12      7.1                   Nagarjuna Agri     191     -16       -7.6
                                                                                                                                barring the Japanese market all other markets are
               Sonata Soft                 59        4      6.6                   Munjal Showa        66      -5       -7.5     trading with good gains. Chinese market is jubilant
                                                                                                                                with the good PMI data and is surging by about
                                                                                                                                two percent.
                                                                            LKP Retail Advisory

Domestic Market Overview
Late upsurge helps Nifty close well over the crucial 6,000 mark

The benchmarks ended the last trading day of the month with an unexpected surge in the final
hour of trade after ICICI Bank, the heavyweights which posted better than expected quarterly
earnings number, almost single handedly pushed the markets to close in the green region.

The nifty after a positive start in the initial moments lost direction and dipped into the red in no
time and gyrated around the neutral line as the end of first half of the new F&O series neared.
The second half remained highly volatile as the fifty stock index declined to its intraday low level
but a late rebound scripted a surprising comeback for the index which closed well over the
psychological 6,000 mark with strong gains of around half a percent points.
On the sectoral front, banking pocket on the NSE remained the leader in the pack with gains of
1.86% while the realty and technology counters witnessed selling pressure and ended with
losses of 0.84% and 0.29%, respectively. While the broader markets remained weak till last and
closed with moderate losses on the NSE.

S&P Nifty added 4.70 points to close at 6,017.70. The market breadth for the last trading day of
the week was negative with advances at 342 against declines of 966 on the NSE.

.




Global Market Overview
Asian stocks fell on Friday as concerns about the outlook for earnings weighed on sentiment in
Tokyo and Seoul. The key benchmark indices in China, Hong Kong, Taiwan, South Korea, Japan
and Indonesia declined between 0.46% and 1.75%. But, Singapore's Straits Times index rose
0.42%

European stocks ended slightly higher on Friday, posting a second consecutive monthly gain, as
U.S. GDP data cemented expectations of monetary easing from the Federal Reserve next week.

U.S. stocks ended on a flat note on Friday, wrapping up another strong month driven by
expectations the Federal Reserve will flood the economy with cash next week. While earnings
have largely taken a back seat to macroeconomic data, Microsoft Corp's (MSFT.O) stock rose
1.5 percent to $$26.67 a day after its profit beat estimates on higher sales of its flagship
software. Investors are betting on volatility to rise after Wednesday's announcement and have
been hedging against unexpected outcomes from the Fed meeting, as well as Tuesday's
midterm elections. The midterm elections have also garnered investor attention, with polls
indicating a Republican takeover of the U.S. House of Representatives.
                                                                                                                                                                                                                                                                     LKP Retail Advisory


Derivatives Snapshot                                                                                                                                                                                            The India VIX climbed 1.16% to 20.76 on Friday compared to its
                                                                                                                                                                                                                previous close of 20.52 on Thursday.
6300                                                                                                                                                                                                25          The 50-share S&P CNX Nifty is trading at 6,017.70, after gaining
6250                                                                                                                                                                                                            30 points or 0.50%.
                                                                                                                                                                                                    24
6200                                                                                                                                                                                                            Nifty November futures saw an addition of 5.93% or 1.44 million
                                                                                                                                                                                                    23
6150                                                                                                                                                                                                            (mn) units, taking the total outstanding open interest (OI) to 25.85
6100                                                                                                                                                                                                22          mn units.
6050                                                                                                                                                                                                21          Nifty calls, 6100 strike price (SP) from the November series was
6000                                                                                                                                                                                                            the most active call with an addition of 1.25 mn or 43.25%.
                                                                                                                                                                                                    20
5950
                                                                                                  Nifty                                      India VIX                                              19          Among Nifty puts, 6000 SP from the November month expiry was
5900
                                                                                                                                                                                                                the most active put with an addition of 0.81 mn or 19.02%.
5850                                                                                                                                                                                                18
                                                                                                                                                                                                                The maximum Call OI outstanding was at 6100 SP (4.16 mn) and
        1-Oct
                4-Oct
                        5-Oct
                                6-Oct
                                        7-Oct
                                                 8-Oct
                                                         11-Oct
                                                                  12-Oct
                                                                           13-Oct
                                                                                    14-Oct
                                                                                             15-Oct
                                                                                                      18-Oct
                                                                                                               19-Oct
                                                                                                                         20-Oct
                                                                                                                                  21-Oct
                                                                                                                                           22-Oct
                                                                                                                                                    25-Oct
                                                                                                                                                             26-Oct
                                                                                                                                                                       27-Oct
                                                                                                                                                                                28-Oct
                                                                                                                                                                                         29-Oct                 that for Puts at 6000 SP (5.09 mn).
                                                                                                                                                                                                                The Nifty Put Call Ratio (PCR) OI wise stood at 1.13 for
                                                                                                                                                                                                                November-month contracts.
                                                                                                                                                                                                                The top five scrips with highest PCR on OI were Dr Reddy’s 2,
                                                                                                                                                                                                                ACC 1.98, Godrej Ind 1.63, Jindal Ste 0.95 and Aban Offsh 0.76.


                                                            Nifty Call Options                                                                                                                                                            Nifty Put Options
   Strike                               Nifty Call OI                                           Chg in OI                                              LTP                       Net Chg                          Strike       Nifty Put OI       Chg in OI              LTP     Net Chg
   6200                                     4,507,050                                                 969,950                                       61.00                                  -9.55                   6000              5,097,500          814,550        111.00            8.65

   6500                                     4,331,300                                           1,547,150                                              8.35                                -3.35                   5800              4,838,650          734,650         49.60            1.80
   6300                                     4,227,650                                                 589,400                                       35.05                                  -6.50                   5700              3,805,100          907,450         32.00            1.00
   6100                                     4,166,250                                           1,257,900                                           99.00                                -14.25                    5900              3,491,650          907,000         75.20            5.55

   6400                                     2,872,100                                                 946,650                                       18.00                                  -4.90                   5600              2,750,450    1,166,450             18.10        -1.45
   6000                                     2,438,900                                                 868,800                                   150.00                                   -16.50                    6100              2,474,100           65,000        158.75       12.85
   6600                                     1,365,400                                                 136,550                                          4.30                                -1.95                   5500              2,369,100          906,250          9.40        -2.55

   5900                                           964,650                                             306,900                                   212.00                                   -16.30                    5400              2,260,250          839,300          5.30        -1.55
   5800                                           679,550                                                      4,850                            286.05                                   -17.55                    5200              1,462,100          -18,850          3.20            0.10
   6700                                           636,200                                                33,800                                        2.70                                -1.35                   5300              1,118,100          415,000          4.05        -0.50

 Expiry : 25NOV2010


       6,000,000
                                                                  Nifty Call OI                                         Nifty Put OI
       5,000,000

       4,000,000

       3,000,000

       2,000,000

       1,000,000

                          0
                                                5300



                                                                           5400



                                                                                                      5500



                                                                                                                                   5600



                                                                                                                                                                5700



                                                                                                                                                                                             5800



                                                                                                                                                                                                         5900



                                                                                                                                                                                                                     6000



                                                                                                                                                                                                                              6100



                                                                                                                                                                                                                                          6200



                                                                                                                                                                                                                                                 6300



                                                                                                                                                                                                                                                              6400



                                                                                                                                                                                                                                                                          6500



                                                                                                                                                                                                                                                                                  6600
                                                                                                                                             LKP Retail Advisory

                                              Index Futures
(OI in '000 Shares)        Future      Chg            Spot      Chg Prem /          Total Open Interest
                           29-Oct       (%)         29-Oct      (%)          Disc        29-Oct Chg (%)
NIFTY                       6044       0.93           6018     0.50      25.90           25687       0.05
CNXIT                       6647       0.26           6613     -0.29     33.90                 9    -16.98
BANKNIFTY                  12372       2.21          12331     1.86      41.40               1645    8.33



                            Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol                        Total OI         Del Qty Cash Market    Prev              Increase      Spot   Fut        Spot         Fut Prem /      Events
                           29-Oct % Chg.        29-Oct        % Del. % Del.           in Del Qty     (Rs.) (Rs.)     Chg (%.)   Chg (%.)   Disc
ESSAROIL                   20302       17.9      3,659,888       23           41     1,410,392        147      149        4.9       4.2     1.8
NAGARFERT                  32312        9.4      2,899,758       21           40      794,973             34   34         0.4       1.0     0.5
CAIRN                      17314        7.5      4,122,539       58           53      716,188         321      325        1.1       0.8     3.8




                                     Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol                        Total OI         Del Qty Cash Market    Prev           Increase in      Spot   Fut        Spot         Fut Prem /      Events
                           29-Oct % Chg.        29-Oct        % Del. % Del.              Del Qty     (Rs.) (Rs.)     Chg (%.)   Chg (%.)   Disc
ABGSHIP                     3491       18.4      1,173,605        7            7      377,580         454      459       -3.6       -3.5    5.4
ABB                          992       11.1        78,959        15           42        24,225        822      818       -5.3       -6.1   -4.7
BRFL                        5290        6.0      2,053,042       34           44     1,068,500        220      220       -4.4       -5.6    0.6
TATASTEEL                  23486        2.0      3,241,309       35           35        36,834        589      595       -2.4       -2.8    5.5
KSOILS                     35552        1.5      1,585,514       40           37      370,958             57   58        -0.3       -0.6    0.8
UCOBANK                    21904        0.6      6,608,425       27           30     3,854,239        126      127       -3.0       -3.5    1.5




* @ Intraday Block Deals




                               Open Interest Break-up
(Rs. in Cr.)                    29-Oct        28-Oct  Change in OI                  % Chg
Index Futures                   18,074           17,905                168            0.94
Index Options                   67,082           58,803           8,279             14.08
Total Index                     85,156           76,708           8,448             11.01
Stock Futures                   44,410           44,970            -560              -1.24
Stock Options                       3,712         2,460           1,252             50.91
Total Stocks                    48,122           47,430                692            1.46
Grand Total                    133,278          124,138           9,140               7.36
FII's                          101,274           97,592           3682                3.77
Others                          32,004           26,546           5458              20.56
                                                                                                                     LKP Retail Advisory


News Round-up
Tuticorin Alkali Chemicals & Fertilisers' plant at Tuticorin, for    Videocon Industries has announced that Petrobras, the operator
manufacturing Soda Ash and Ammonium Chloride (Fertiliser), has       of the BM-SEAL-11, Concession Block in the Sergipe-Alagoas
restarted trial production with effect from October 19, 2010 and     Basin of the Brazilian Offshore has discovered hydrocarbon in
October 28, 2010 respectively. The Company is expecting the          Cretaceous turbidite fan system on the drilling of the first ultra deep
Plant to stabilize soon for the normal production.                   water (2321m) well designated as 1-SES-158 on 'Barra' structure
                                                                     located 58 Km off the Coast of Brazil and 90 Km from city Aracaju
Oil & Natural Gas Corporation (ONGC) is planning to acquire          in Atlantic ocean.
60% stake and operatorship in onland block AA-ONJ/2 from the
Indian arm of the UK-based Tullow Oil , which is exiting the         Essar Shipping Ports & Logistics (ESP&L) is likely to complete
exploration block.                                                   its demerger process as well as listing of demerged entity i.e .
                                                                     Essar Shipping, by March 2011. The new entity will be listed on the
Mumbai-based realty major Peninsula Land (PLL) has secured           stock exchanges. The demerger is likely to simplify Essar
its board's nod for the scheme of amalgamation and arrangement       Shipping's business structure and unlock value.
of Topstar Mercantile with the company and their respective
shareholders and creditors under Sections 391 to 394 read with       Steel Authority of India (SAIL) has denied the possibility of
Sections 100 - 103 of the Companies Act, 1956, wherein Topstar       setting up a joint venture (JV) with the ArcelorMittal Group.
would be merged with the company.                                    Company officials quoted that the company has not discussed
                                                                     setting up of a joint venture with ArcelorMittal.
Anil Ambani led Reliance Power (RPower) has placed an order
with Shanghai Electric Group Co (SEC) for 30,000 megawatt            Nouveau Multimedia's media division has decided to participate as
(MW) capacity of boiler, turbine, generator packages (BTG) for its   co-sponsor for the Shaharukh Khan live concert on December 10,
coal based power plants. This is the world's largest BTG order       2010 to be held at army stadium Dhaka, Bangladesh. The concert
ever and is valued at around $10 billion.                            is organized by Antar Showbiz, managed, scripted and directed by
                                                                     Cineyug Media and Entertainment.
Ramky Infrastructure's consortium comprising a joint venture
(JV) between Ramky Infrastructure, Hyderabad (RIL) 74% and           Mount Everest Mineral Water's board has granted its in-principle
Jiangsu Provincial Transportation Engineering Group Co, China        approval to enter into a brand licensing agreement and a
(JTEG) 26% has been issued a Letter of Award dated September         manufacturing agreement for Himalayan, Natural Mineral Water
03, 2010 by National Highways Authority of India (NHAI) for the      with Tata Global Beverages and / or the 50:50 joint venture (JV)
rehabilitation, strengthening and four laning of Srinagar Banihal    company being promoted by Tata Global Beverages and PepsiCo
section of NH-1A from KM 187.00 to KM 189.350 (Banihal               India Holdings, subject to terms and conditions to be agreed
Bypass) and KM 220.700 to KM 286.110 on DBFOT (annuity )             amongst the parties.
basis in the state of Jammu and Kashmir (package No NHDP-            Phoenix Mills has secured its board's nod for the acquisition of the
PHASE -II/BOT/I/J&K).                                                entire shareholding of Butala Farm Lands, which holds 8% equity
Strides Arcolab has received tentative approval from the United      in the company's SPV for the Phoenix Market City project in Pune,
States Food and Drug Administration (USFDA) for one new drug         Vamona Developers. The board gave its approval at its meeting
application (ANDA) for fixed dose combination of Lamivudin and       held on October 28, 2010.
Zidovudine Tablets 150mg/300 mg under the expedited review
provision of the Presindent's Emergency plans for AIDS relief.
                                                                     As the Indian banking system remains in very tight liquidity
Core Projects & Technologies has secured an order worth Rs
                                                                     scenario amidst increasing dependence on the central bank's short
26.38 crore to implement Computer Aided Learning (CAL) in 645
                                                                     term lending, the Reserve Bank of India (RBI) announced some
schools across South Gujarat for 5 years. This project is under
                                                                     liquidity enhancement measures on Friday to help the banks tide
the Gujarat Government's programme to introduce CAL based
                                                                     over the tight-cash situation.
learning technologies in schools.
                                                                     In yet another sign of moderation in industrial activity in the
India's leading software exporter, Tata Consultancy Services
                                                                     country, growth in the six infrastructure industries has dipped to 18-
(TCS), has entered into a joint venture (JV) for ASP services with
                                                                     month low, probably reflecting the impact of increasing inflation in
Strate, the licensed central securities depository (CSD) in South
                                                                     manufacturing sector and the continuous tightening of monetary
Africa.
                                                                     policy by the Reserve Bank of India (RBI).



                                                                                                                    Source :ACE Equity, Reuters
                                                                                                                                                     LKP Retail Advisory

Global demand-supply scenario for natural rubber, which has
already been tight for quite some time sending prices to record high
levels, may worsen further as growth in production is likely be lower
than what was anticipated earlier due to weather woes. In such a
scenario, rubber prices may stay firm for much longer period.

Global demand-supply scenario for natural rubber, which has
already been tight for quite some time sending prices to record high
levels, may worsen further as growth in production is likely be lower
than what was anticipated earlier due to weather woes. In such a
scenario, rubber prices may stay firm for much longer period.

As the Indian banking system remains in very tight liquidity scenario
amidst increasing dependence on the central bank's short term
lending, the Reserve Bank of India (RBI) announced some liquidity
enhancement measures on Friday to help the banks tide over the
tight-cash situation.

In yet another sign of moderation in industrial activity in the country,
growth in the six infrastructure industries has dipped to 18-month
low, probably reflecting the impact of increasing inflation in
manufacturing sector and the continuous tightening of monetary
policy by the Reserve Bank of India (RBI).

The Telecom Regulatory Authority of India (TRAI) is likely to take a
tough stand against the telecom operators who were awarded
licenses in 2007, most of whom have failed to meet the rollout
obligations included in the license conditions.

In a move that would will help the information technology (IT)
companies consolidate their businesses in the Special economic
zones (SEZs), the commerce ministry has issued a notification on
Thursday clarifying that capital goods could be freely transferred
between the Software Technology Parks of India (STPI) to the SEZs.

The third phase of Bihar polls ended peacefully on Thursday with
voter turnout of 54% on the 1.03 crore voters. Around 0.5 crore
voters came out to exercise their right of voting in 48 constituencies
of Bihar in the third of six-phase elections to pick a new 243-member
assembly.




  The information in this documents has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general
  guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any
  errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the
  analyst who have issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies
  mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with
  respect to companies mentioned herein or inconsistent with any recommendation and related information and opinions. LKP Securities Ltd., and affiliates may seek to provide or
  have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on
  the date of this report or in the past.


           For any queries contact - LKP Retail Advisory. Ph: (91-22) 66351234                FAX: (91-22) 66351249          E Mail: retailadvisory@lkpsec.com
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