Market Summary

BSE & NSE Market Overview

The market saw a smart recovery in late trade and closed in the positive with huge volumes. The recovery was led by outperformance in FMCG and metal stocks while the telecom stocks tanked (Bharti and RCom almost 10%) today. Sensex shut shop at 16958, up 92 points and Nifty at 5027, up 24 points from the previous close. CNX Midcap index was up 0.25% and BSE Smallcap index was down 0.72%. The market breadth was negative with advances at 419 against declines of 848 on the NSE. Top Nifty gainers included Hindalco, ITCand HUL while losers were Bharti Airtel, Idea Cellular andReliance Communications.

First Call

RELINFRA

Execution Price Range Stop Loss Target

Buy Between Rs 1218 to 1228 1212 1244

JINDAL STEEL POWER

Execution Price Range Stop Loss Target

Buy Between Rs 595 to 601 589 618

DLF

Execution Price Range Stop Loss Target

Sell Between Rs 423 to 428 431 416

The market opens on a reasonably good note, in the steps of firm global cues. Earlier, following four days of weakness, the US markets closed with good gains after a strong rally. Asia is trading mixed. Sensex is trading at 16958, up 92 points from its previous close, and Nifty is at 5025, up 22 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 0.7%. The market breadth is positive with advances at 602 against declines of 90 on the NSE.

Strategies for the day

Strategies for the day

Date Company View Strategies Action Risk Reward

06-10-2009 HINDUNILVR BULLISH BULL CALL SPREAD BUY 270 CA @ 5.80 273.20 3200 6800

OCT. EXPIRY

SELL 280 CA @ 2.60

The market will trade in the range of 4950-5100 and find strong support at 4950 which may not be broken easily. profit booking on upper levels and advises buying on dips, especially telecom stocks.

Nifty will face resistance at 5100 and come under short-term pressure. If 4960 is broken then we may see a slide of 90-100 points.

Currency Market

Sentiments turnedbearish in the currency market even as equity market closed in indicating that G7 Meeting was the major driver of

the currency pair. The pair which opened the day at 47.86 levels fell to close near the lows at Rs.47.62/USD, despite the fact that Nifty fell

by 80 points and closed at 5003 levels.

Internationally the dollar index fell to 76.50 levels after G7 finance ministers omitted any mention of the currency’s weakness in their final

communiqué. The group also urged China to strengthen the yuan, but gave no sign of how it might overcome Chinese resistance to that

suggestion or resolve other tensions over global currency rates. The weakening of the dollar proved good for the American indices with Dow

Rising by 112 points or 1.18% to close at 9599 points.

In the domestic markets, statement by RBI Governor that India may need to exit from accommodative monetary policy earlier than

advanced economies indicates that government might be interested in increasing interest rates earlier than expected. This lead to bond

yields rising with yield on 10 year benchmark bond quoting at 7.19% from 7.05% during the previous week.

Overall we fell 47.40 as critical support for the USDINR and a close below that will lead to a trend change in the currency pair.

Yesterday Market Summary

It was a day of weakness and profit booking as the market closed just above the crucial 5000 mark. Weak global cues saw Nifty drift below 5000 in intra-day trade. Sensex shut shop at 16866, down 268 points and Nifty at 5003, down 80 points from the previous close. CNX Midcap index was down 1.50% and BSE Smallcap index was down 2.12%. The market breadth was negative with advances at 232 against declines of 1056 on the NSE. Top Nifty gainers included ITC, Sun Pharma andMahindra & Mahindra while losers were Bharti Airtel,Grasim and Reliance Communications