Daily Trading Tips..

Free Trading Tips

Buy 5000 Nifty Call Option at Rs 125 with intra-day target of Rs 145 and stop loss of Rs 115

Buy RIL October Futures above Rs 2125 with intra-day target of Rs 2150-2175 and stop loss of Rs 2085

Buy Hindustan Zinc October Futures above Rs 820 with intra-day target of Rs 836-842 and stop loss of Rs 818. The stock is currently trading at Rs 833, up 1.6% on the BSE

Sell Ranbaxy with target of Rs 390 and stop loss of Rs 406. The stock is currently trading at Rs 399, down 0.1% on the BSE.

Buy Bajaj Finserv Ltd with target of Rs 325 and stop loss of Rs 290. The stock is currently trading at Rs 318.10, up 4% on the BSE.

Market Strategy

The Strategist

Strategies for the day

Date Company View Strategies Action Risk Reward

08-10-2009 DLF BEARISH BUY PUT BUY 400 PA @ 14.00 4000 8000

OCT. EXPIRY

SL : 9.00 TGT : 24.00

Trading Laws:

• A Trader not observing STOP LOSS cannot survive for long.

• Never re-schedule your stop loss, square up first and then take a fresh view.

• Book small losses by buying / selling near support / resistance, and look for big gains, this will maximize the gains.

Intraday Dollar Trend

Dollar continued its downtrend against the rupee on Wednesday as the pair fell by 33 paisa from previous close to end the day at

Rs.46.70/USD. The de‐link of the currency pair from the equities market continued for the third consecutive session with Nifty closing down

by 41 points at 4985 points. Speaking of the international markets the dollar index quoted lower at 76.10 from 76.40 levels on Tuesday.

Dollar index has been in a bearish trend especially after Australian Central Bank increased its interest rates.

In the domestic bond markets RBI auctioned Rs. 20 billion (Rs.2000 Cr.) of 365 day Treasury Bill at yield of 4.59% compared with previous

auction’s yield of 4.33%. The rise in medium term yields comes in line with RBI Governor’s statement a few day’s back that the regime of

lower interest rates is over and govt. might take lead among other emerging nations in increasing the rates. The 10 year benchmark bond

yields also increased to 7.28% from 7.21% the day before which was a direct implication of bond auction results.

Looking at intraday trend one can expect USDINR to remain under pressure below 46.76 levels.

Pivot Support 1 Support 2 Resistance 1 Resistance 2 ICSC Chain Store Sales YoY ‐1.50% ‐2.00%

Spot 46.68 46.48 46.28 46.88 47.09

Oct. Future 46.77 46.33 46.29 46.81 47.25

CURRENCIES Medium Term Call

Fundamental Scenario

• Dollar has fallen by 3.12% against Rupee in past 4 trading sessions

from 48.04 on 1st Sept to 46.54 on 7th Sept.

• This is the sharpest weekly rise in rupee post the election rally

• Although international factors like weakening of dollar index and

pressure on China to re-value the yuan were the major drivers of this

rally in currency pair, we feel this rally has “over-reacted” and one can

expect some pull back in the Pair.

• A stronger Rupee will not be in favor of Indian exporters which will

increase the total trade deficit, one can expect RBI intervention in the

currency pair.

• We expect USDINR to re-touch the levels of 48.20 in coming 1-2

weeks time. Hence we hereby recommend to Long USDINR at CMP

(46.80)with a stop loss of 46.00 for a target of 48.20

USDINR

Exchange : NSE

Month : October

Risk : Medium

Call : Buy at CMP

(46.80) with a stop

loss of 46.00

Current Price: 46.80

Target Price: 48.20

Return: 1400

Risk: 800

Recent Trend: Down

Volume: Rising

Open Interest

Short covering

Yesterday Market Summary

It was an end to another choppy session, as India underperformed its global peers. There was profit booking and the intra-day volatility helped clock in a big turnover. Sensex shut shop at 16806, down 151 points and Nifty at 4985, down 41 points from the previous close. CNX Midcap index was up 1.69% and BSE Smallcap index was up 0.46%. The market breadth was positive with advances at 679 against declines of 580 on the NSE. Top Nifty gainers included Sterlite Industries,SAIL and PNB while losers were Wipro, Maruti Suzuki andTCS.

The rally in metals has just begun and expect outperformance going ahead, says Vijay Bhambwani, technical analyst, on CNBC TV18. His top picks in this space are Sterlite Industries, Tata Steel and SAIL. InHindalco, he has a price target of Rs 200 in 24 months.

The market looks fully priced right now, says Amit Dalal of Amit Nalin Securities on CNBC TV18. The strengthening of the rupee has seen increased FII flows into India as leaving this market would be impossible, he says. Thus if the flows continue the market could be headed higher

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