June 14, 2011

Indian market Sensex Nifty BSE 100 BSE 200 CNX Midcap BSE Smallcap Developed market Dow Jones Nasdaq S&P 500 FTSE CAC DAX Hang Seng* Nikkei* S&P/ASX200*
* Markets are open

Last close 18,266 5,483 2,274 7,157 8,037 8,313 Last close 11,953 2,640 1,272 5,773 3,808 7,085 22,574 9,463 4,551

1 day (0.0) (0.1) 0.1 0.1 0.6 0.3 1 day 0.0 (0.2) 0.1 0.1 0.1 0.2 0.3 0.2 (0.3)

% change 3 mth (0.9) (0.9) 0.4 1.0 5.0 5.0 % change 3 mth (0.3) (2.3) (1.9) (0.0) (1.8) 3.2 (3.3) (1.6) (2.0) % change 3 mth (7.6) (7.7) (3.3) 5.1 (2.1) 3.4 0.9

Subdued start eye on inflation!

YTD (10.9) (10.6) (10.3) (10.1) (9.3) (14.0) YTD 3.2 (0.5) 1.1 (2.1) 0.1 2.5 (2.0) (7.5) (4.1)

No one can build his security upon the nobleness of another person. - Willa Cather. The intentions of the Government may be noble but nothing seems to be happening really. High inflation and rising interest rates are bad combination for equities. These two problems, which are inter-linked, have had an adverse impact on Indian stocks right through the year. Inflation will continue to be in the spotlight as the Government unveils the figures for May. Consensus estimate is for a print of around 8.5-9%. In April, inflation had softened slightly from the previous month. The market may not react much unless there is a major deviation from this forecast. All eyes are on the RBIs mid-quarter review on June 16. The opening looks subdued in the wake of mixed global cues. On Wall Street, the Dow and the S&P 500 just about managed to close in the green while the Nasdaq declined. European stocks finished marginally higher. But, the Euro dipped after S&P downgraded Greece amid mounting worries over its fiscal health. Asian markets are mixed. Chinese shares are up after data shows increase in inflation. RIL could stay down on the back of the CAG report though it has issued clarifications. Idea may gain after posting strong Q4 earnings. Sensex intra-day
18,375 18,300

Emerging market Shanghai Comp Brazil Bovespa Mexico Bolsa Kospi* Micex Taiwan* Straits*
* Markets are open

Last close 2,716 62,023 34,998 2,072 1,684 8,812 3,058

1 day 0.6 (1.1) 0.1 1.1 (0.5) 1.1 (0.0)

YTD (3.3) (10.5) (9.2) 1.0 (0.2) (1.8) (4.1)

Institutional activity (Rs cr) FIIs MFs FIIs Prov. MFs Prov. Commodities Crude (US$/bbl) Gold (US$/oz) Copper (US$/mt) Aluminium (US$/mt) Zinc (US$/mt) Advance/Decline stocks (Nos) Adv Dec Unch A/D ratio (x)*
*A/D excluding Unch

Cash (470) 45 (304) 27 Last close 97.2 1,520 8,896 2,560 2,227 A 104 98 3 1.1

F&O 159 -

MTD 2,592 (143)

YTD (415) 1,896

1 day (0.1) 0.2 (0.3) (1.4) (0.4) B 1,030 990 85 1.0

% change 3 mth (4.0) 6.5 (3.0) 1.9 (1.1) S 303 291 34 1.0

YTD 6.3 7.0 (7.8) 4.0 (8.9) Total 1,438 1,379 122 1.0

18,225 18,150 18,075

Trade value (Rs cr) Cash NSE Cash BSE Total Cash Delivery (%) Derivatives Currency Rs/US$ Rs/EUR US$/GBP US$/EUR Yen/US$ Bond market 10yr Gsec Call rate Last close 44.86 64.52 1.64 1.44 80.21

8,686 2,436 11,122 41.7 82,244 1 day 0.3 (0.2) 0.1 (0.0) (0.0) % change 3 mth 0.5 (2.5) 1.3 3.0 1.8

% chg (3.1) (4.7) (3.4) (8.1) YTD (0.3) (7.3) 5.0 7.7 1.1 Bps chg (0.03) (0.13)

18,000 9:00 10:05 11:10 12:15 13:20 14:25 15:30

ADR/GDR Dr. Reddys HDFC Bk ICICI Bk ITC Infosys Ranbaxy Reliance Wipro SBI Tata Motors Sterlite L&T Latest (US$) 35.0 163.8 46.8 4.3 63.4 11.8 41.6 13.6 101.3 22.1 14.6 38.1 Price % chg (0.2) 0.0 1.5 (1.6) 0.4 0.0 (1.9) (1.0) (1.7) (1.4) (1.1) (0.1) % Prem/Disc 2.1 3.2 1.1 0.7 (1.2) (0.4) 0.7 40.1 2.3 (1.9) 297.5 0.1

Last Close (%) 8.24 7.25

News
Corporate snippets Tata Communications has increased its effective holding in South Africa's secondbiggest fixed-line phone operator Neotel to 61.5% from 49%. (BS) The CAG said, the Oil Ministry and its technical arm, the DGH, bent rules for Reliance Industries. (FE) Hindustan Zinc has hiked the price of lead by 2.6% to Rs1,32,000 per ton in sync with the rise at the London Metal Exchange. (BL) Reliance Brands, a part of Reliance Industries (RIL) said its association Timberland in India will not be impacted by VF Corporation's global takeover of the latter. (BS) Reliance Communications has protested BSNL's move to pull the plug on interconnections between networks of both companies in Punjab and Haryana last month over a financial dispute. (ET) Larsen & Toubro expects its electrical and automation business to double to Rs80bn by 2015. (BS) The Goldman Sachs unit picked up 9.1% stake in Max India for about Rs5.22bn (US$116mn). (BS) Larsen & Toubro has bagged a Rs1.10bn order from the West Bengal State Electricity Distribution Company to supply energy meters. (ET) Power Grid Corporation of India and Birla Institute of Management and Technology have signed a MoU to jointly explore opportunities abroad for assignments in capacity building, institution development and training and development programmes. (BS) Gitanjali Gems has acquired Italy-based jewellery firm DIT Group SpA for US$11mn. (BS) ICICI Bank has reversed its decision to exchange three bonds with new ones due to negative reaction from investors and to avoid speculation about its funding position. (ET) Infosys Technologies has bagged the first of the Department of Posts IT modernisation contracts. (BS) Punj Lloyd has won an EPC nuclear power contract from NPCIL worth Rs6.78bn for critical nuclear piping work at four pressurised heavy water reactors of 700 MWe each. (FE) JSW Steel Ltd has approached six small mining companies in Goa to procure enough to feed its existing steel plant and the proposed pig iron project in the state. (BS) The stalemate between the Maruti management and its striking workers at the Manesar plant continued for the 10th day, as a series of negotiations between the two parties failed to yield any result. (BS) Economy snippets India will become the third largest market in the world after China and the US for light vehicles, including passenger cars and light commercial vehicles (LCVs), by 2020, according to market research firm JD Power Asia Pacific. (BS) The telecom department has pegged the total subsidy for financing the countrywide rural wireless broadband rollout at Rs60-80bn. (ET) The Commerce and Industry Minister urged the SAFTA member states to bring down all the protectionist trade barriers to achieve regional economies of scale at a much greater pace. (BL) Farm 14% year. farm year. credit flow surpassed the target by about to Rs4,265bn during 2010-11 financial The government had set the target of credit disbursal at Rs3,750bn during the (BS)

Market Mantra

Technicals
Nifty price/volume
NSE Nifty [N59901] 5469.85, 5496.70, 5436.95, 5482.80, 463785248 -0.05% Price Avg3(S,100,S,200,S,50) 31 Log IRIS 6400 6200 6000 23.60 38.20 50.00 034 61.80 5800 5600 5400 Source : www.SpiderSoftwareIndia.Com Vol 16 37 35 5200 Cr 100 50.00

Biocon (BUY, between Rs355-357, Target Rs371): Biocon has broken out from rounding saucer pattern two weeks back and now entered into a consolidation zone. The consolidation process is most likely to bring back Biocon to test the breakout levels placed at Rs357. Most importantly the volumes have been on the decelerating mode and prices have been hovering near the 50DMA levels. The amplitude of rounding saucer projects intermediate target of Rs384 and any dips towards Rs357 becomes a good buying opportunity. A bullish crossover of 10 DMA and 20DMA also corroborates strength in the up move. We advise buying stock in the range of Rs355-357 with stop loss of Rs350 for Target of Rs374. (Duration 5 days). Sintex Industries (BUY, above Rs183, Target Rs190): Sintex Industries has given a breakout from the downward sloping resistance line on the daily chart last week. Also, in the process, the stock gave a close above its 200-DMA. The 200DMA was acting as a stiff resistance and the stock had reversed from it on multiple occasions. Mondays breakout was accompanied with sporadically high volumes. Such back to back confirmation on short term and medium term chart supports our buying argument at current levels and provides better risk-reward ratio. We recommend traders to buy the stock above Rs183 with stop loss of Rs180 for target of Rs190.

10:N

11:J

Dly

The range bound trade continued for yet another day with Nifty bouncing back after testing levels of 5,440 levels and closing on flat note. Lack of directional move in market indicate indecisiveness among market participants and close above 5,530 levels can only reignite buying momentum in the market. Support/Resistance levels
Nifty Sensex Close 5,483 18,266 Support 5,440 18,120 Resistance 5,530 18,430

Abnormal change in delivery

Stock Amtekindia Asianpaint Aban Ranbaxy Sbin NSEDely (%) 90.0 73.4 33.2 28.0 44.0 Prev NSEDely (%) 21.8 24.3 11.3 10.4 20.1 Price % chg 2.9 (1.2) (2.4) (0.7) (1.0)

Positive breakout
Company name Bajaj Electrical Eih Ltd Omaxe Ltd Boc India Ltd Bgr Energy Sys Navneet Publ Amtek India Ltd Cesc Ltd Housing Developm Bartronics India CMP 261.1 86.1 133.5 293.2 498.2 65.9 87.5 289.9 174.6 65.3 10 Days MVG avg 252.9 83.6 129.9 285.4 485.4 64.2 85.4 283.4 170.7 63.9 Price % chg 3.2 3.0 2.7 2.7 2.6 2.5 2.4 2.3 2.3 2.2 20 Days MVG avg 246.5 83.1 129.7 285.6 479.0 62.5 84.9 278.6 163.1 62.3

Negative breakout
Company name Spicejet Ltd United Breweries Den Networks Ltd Gujarat Nre Coke Bf Utilities Ltd Vip Inds Ltd Canara Bank Future Capital H Deepak Fertil United Bk Of Ind CMP 35.0 172.9 96.6 48.7 730.5 759.0 518.4 136.2 173.6 96.9 10 Days MVG avg 36.2 178.7 99.5 50.2 751.6 780.5 532.3 139.7 178.0 99.3 Price % chg (3.4) (3.2) (3.0) (2.9) (2.8) (2.7) (2.6) (2.6) (2.5) (2.5) 20 Days MVG avg 38.3 177.6 102.9 49.7 746.3 729.6 529.4 137.2 175.3 98.3

Market Mantra

Technicals
Pivot table
Company Pivot Res 1 Res 2 ABB 841 856 871 ACC 1,001 1,013 1,026 Ambuja Cem 135 138 140 BHEL 1,921 1,937 1,952 BPCL 613 620 626 Bharti 377 380 383 Cairn 336 337 338 Cipla 337 344 351 DLF 229 232 235 Gail 449 453 458 Grasim 2,217 2,228 2,239 HCL Tech 501 505 510 HDFC Bank 2,366 2,387 2,408 Hero Honda 1,730 1,752 1,774 Hindalco 181 183 185 HUL 313 317 321 HDFC 654 662 670 ICICI Bank 1,038 1,048 1,058 Idea 72 73 73 Infosys 2,860 2,900 2,940 ITC 191 192 193 L&T 1,699 1,722 1,744 M&M 664 670 677 Maruti 1,223 1,238 1,253 Nalco 89 89 90 NTPC 179 182 186 ONGC 268 272 275 Powergrid 102 104 105 PNB 1,085 1,091 1,098 Ranbaxy 531 536 541 Rcom 94 95 97 Reliance 930 939 948 Reliance Infra 541 547 553 Reiance Power 117 115 114 116 118 120 Satyam 87 84 82 85 88 91 Siemens 880 868 862 875 886 897 SBI 2,220 2,206 2,188 2,224 2,238 2,252 SAIL 144 142 140 144 146 148 Sterlite 165 164 162 165 166 167 Sunpharma 480 470 465 476 486 496 Suzlon 53 52 51 52 53 54 Tata Com. 214 212 209 216 218 220 TCS 1,175 1,168 1,157 1,179 1,186 1,193 Tata Motors 1,010 1,003 996 1,011 1,018 1,025 Tata Power 1,237 1,219 1,206 1,232 1,250 1,268 Tata Steel 563 560 556 564 567 570 Unitech 34 33 33 34 34 34 Wipro 435 433 430 436 438 441 Zee 140 139 137 140 141 142 A pivot is a level at which the market direction changes for the day. These points can be critical support and resistance levels for that day. Pivot levels are only broad indicators and not necessarily our view on the stock or index. CMP (Rs) 847 1,004 136 1,925 615 378 335 340 229 450 2,214 500 2,373 1,735 180 314 657 1,040 72 2,878 191 1,708 664 1,225 88 180 269 103 1,086 531 94 926 543 Supp 1 832 992 134 1,909 609 374 334 333 226 445 2,204 496 2,351 1,713 179 310 649 1,030 71 2,837 190 1,685 658 1,210 88 177 265 101 1,079 526 93 917 537 Supp 2 824 983 132 1,898 604 372 333 329 224 442 2,190 491 2,337 1,696 176 307 644 1,022 71 2,815 189 1,672 652 1,197 87 174 263 100 1,074 521 92 903 533

Top gainers
Company Advanta India Lt Basf India Ltd Max India Ltd Cambridge Soluti Coromandel Fert Price (Rs) 285.2 636.9 179.1 37.6 346.7 Price % chg 20.0 8.3 7.5 5.0 4.9 % YTD chg (26.5) 0.4 21.3 (21.9) 9.6

Top losers
Company Ess Dee Aluminiu Bsel Infrastruct Hinduja Tmt Ltd Birla Corp Ltd Bhushan Steel Price (Rs) 382.8 5.3 290.0 360.7 405.8 Price % chg (7.0) (3.6) (3.4) (3.4) (3.3) % YTD chg (16.5) (33.8) (20.7) (0.1) (14.4)

Volume Toppers
Company Advanta India Lt Max India Ltd Greaves Cotton Basf India Ltd Sundaram Clayton Price (Rs) 285.2 179.1 87.2 636.9 146.9 Price % chg 20.0 7.5 2.3 8.3 2.2 Vol % chg 17,477.5 8,900.1 3,634.6 3,582.1 2,763.6

Sector watch
BSE Indices BSE Bankex BSE Realty BSE HC BSE Metals BSE Oil & Gas BSE Auto BSE IT BSE Power BSE FMCG BSE PSU BSE Cap Goods BSE CD BSE 200 BSE 500 BSE Mid Cap BSE Small Cap CNX 500 Last close 12,237 2,138 6,344 14,738 9,358 8,652 6,092 2,561 3,852 8,473 13,357 6,866 2,274 7,157 6,918 8,313 4,444 1 day 0.1 (0.3) 0.3 (1.0) (0.7) 0.2 (0.0) 0.7 (0.2) 0.0 0.7 1.4 0.1 0.1 0.3 0.3 0.0 Price % chg 1 week 1 mth (2.8) (1.0) (1.8) 0.8 3.2 8.3 (4.3) (6.0) (4.2) (5.8) (6.2) (2.0) 0.9 (2.4) (1.2) (1.0) 1.3 9.6 (4.0) (1.4) 5.3 5.6 10.6 18.7 (0.9) 0.4 (0.7) 1.0 0.2 5.4 (0.7) 5.0 (0.6) 1.0 50 DMA 12,480 2,193 6,086 15,770 9,694 8,968 6,228 2,632 3,576 8,686 13,074 6,114 2,290 7,185 6,825 8,299 4,462

Note: Ideas given under the Technicals section are for intraday purpose or up to a period of three trading sessions. Stocks recommended under this heading are not necessarily part of our fundamental buy or sell list.

Market Mantra

Deals
Bulk deals
Date 13/6/2011 13/6/2011 13/6/2011 Scrip name Acropetal Tech Ltd Acropetal Tech Ltd Nova Iron Client name India Max Investment Fund Ltd India Max Investment Fund Limited Bhushan Power And Steel Limited B/S B B B Qty ('000) 950 950 12,286 Avg price (Rs) 21 21 14 Deal size (Rs m) 20.0 20.0 170.5

Insider trades
Company name
Asian Electronics Ltd Asian Electronics Ltd Avon Corporation Ltd Avon Corporation Ltd Balaji Telefilms Ltd Balaji Telefilms Ltd Balaji Telefilms Ltd Balaji Telefilms Ltd Bhagwati Autocast Ltd Bhagwati Autocast Ltd Bhagwati Autocast Ltd Bhagwati Autocast Ltd Bhagwati Autocast Ltd Bhagwati Autocast Ltd Coromandel International Ltd Coromandel International Ltd Coromandel International Ltd Coromandel International Ltd Dr Wellmans Homeopathic Eclerx Services Ltd Eclerx Services Ltd Envair Electrodyne Ltd Gati Ltd Gati Ltd Geometric Ltd Himatsingka Seide Ltd Himatsingka Seide Ltd

Acquirer
Rajesh Mehta S Neelakanta Iyer Pankaj P Saraiya Pankaj P Saraiya Ekta Kapoor Ekta Kapoor Ekta Kapoor Ekta Kapoor Mrs. Mandakini P Bhagwati Mrs. Mandakini P Bhagwati Mrs. Mandakini P Bhagwati Reena P Bhagwati Reena P Bhagwati Reena P Bhagwati V Ravinchandran V Ravinchandran V Ravinchandran V Ravinchandran Madhulika Jain Anjan Malik Priyadarshan Mundhra Shripad Mirashi T S Rao T S Rao Vinay Kulkarni Rajashree Himatsingka Rajshree Himatsingka

Transaction date
1/0/1900 1/0/1900 8/6/2011 8/6/2011 1/6/2011 1/6/2011 3/6/2011 3/6/2011 2/6/2011 3/6/2011 30/05/2011 2/6/2011 3/6/2011 8/6/2011 8/6/2011 9/6/2011 9/6/2011 30/05/2011 3/6/2011 3/6/2011 31/05/2011 02/06/2011 25/05/2011 01/06/2011 25/05/2011 01/06/2011 31/05/2011 9/6/2011 6/6/2011

B/S
B B B B B B B B B B B B S S S S S S S B S S S B B

Qty ('000)
0.0 0.0 420.3 5.0 21.1 21.1 18.2 18.2 0.1 0.1 0.2 0.1 0.1 0.1 2.6 2.6 5.4 5.4 98.5 600.0 600.0 2.0 40.4 40.4 10.0 75.0 100.0

Shares transactions (%)

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 2.1 2.1 0.1 0.0 0.0 0.0 0.0 0.0

Holding after transaction (%)

0.0 0.0 12.9 12.9 15.7 15.7 15.7 15.7 9.0 9.0 9.0 11.7 11.7 11.7 0.0 0.0 0.0 0.0 0.0 27.4 27.4 54.5 0.1 0.1 0.0 5.3 5.3

FIIs trades
Scrip name Union Bank Bank of Baroda PNB Volume ('000) 15.2 8.4 52.8 Price (Rs) 323.0 885.0 1140.0 Prem/Disc (%) (0.1) 1.6 5.0

Market Mantra

Derivatives
Nifty volatility Index rose to 18.91 from 18.54, increased by 2.00%. Total Nifty futures shed 0.22mn shares in open interest. Call open interest for June series added 0.09mn shares in Open Interest. Put open interest for June series added 2.72mn shares in Open Interest. Nifty put call ratio of open interest now stands at 1.28 vs 1.23. Nifty put call ratio of volume now stands at 0.95 vs 0.84. Maximum open interest in calls for June series is at 5,800 strike prices. Maximum open interest in Puts for June series is at 5,400 strike prices. Nifty June 5,500 Call shed 0.49 shares in open interest. Nifty June 5,400 Put added 1.00mn shares in open interest. Strategies Long GSPL June Future in range of Rs96.5097 for the target price of Rs100.50 with a stop loss placed at Rs95. Lot size: 2000 Remarks: Net maximum profit of Rs8,000 and net maximum loss of Rs4,000. Long Bajaj Auto June Future in range of Rs1295-1300 for the target price of Rs1335 and stop loss placed at Rs1280. Lot size: 250 Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000.
Nifty snapshot
Near month price Near month Pre/Disc Mid month price Mid month Pre/Disc OI* (000) Volume (000) PCR (OI) PCR (Vol) Roll-over (%) Current 5,499 15.7 5,513 29.9 24,796 15,238 1.3 0.9 5.8 % Chg 0.3 (1,051.5) 0.3 144.1 (0.9) (15.1) 3.5 12.8 10.4

FII derivative data

(Rs cr) Index Futures Index Option Stock Futures Stock Options Buy 897 4,111 1,153 176 Sell 1,262 3,774 970 171 Net (365) 337 183 5 Contracts (17,890) 724 1,199 (152) OI % chg (3) 0 0 (1)

Institutional activity
(Rs cr) FII's MF's FIIs Prov. MFs Prov. Cash (470.1) 44.9 (304.2) 27.3 F&O 159.1 MTD 2,592.4 (142.7) YTD (415.3) 1,896.0

Overall market
Index Future (Rs cr) Stock Future (Rs cr) Index Options (Rs cr) Stock Options (Rs cr) Index Future (Cont '000) Stock Future (Cont '000) Index Options (Cont '000) Stock Options (Cont '000) PCR (OI) PCR (VOI) 13-Jun11 9,831 9,355 60,850 2,208 387 371 2,198 87 0.9 0.3 10-Jun11 11,649 10,327 65,259 2,220 456 411 2,345 87 0.8 0.4 9-Jun-11 9,467 9,437 51,047 2,108 369 376 2,187 206 1.1 0.4 Value % chg (15.6) (9.4) (6.8) (0.5) (15.1) (9.8) (6.3) 0.9 12.9 (4.7)

Nifty open interest chart

900 750 600 450 300 150 0 17-Mar-11 15-Apr-11 13-May-11 9-Jun-11 5,000 4,500 4,000 OI & Vol (lacs) Nifty 6,500 6,000 5,500

Nifty strikes open interest

12,000 10,000 8,000 6,000 4,000 2,000 0 5200 5300 5400 5500 5600 5700 5800 OI in Call ('000)
Put

Sector-wise OI
2 1 0 -1 Real Estate Metals FMCG Textile Power Sugar IT Automobiles Total Stock Future Logistics Cement Capital goods & Infra Pharma Fertilizers Banking Oil & Gas Telecom Others Media % Chg

Market Mantra

Derivatives
Futures open interest gainers
Scrip Glaxo Bhusanstl Drreddy Aban Tatatea Hindalco Cipla Lupin Chennpetro Prajind Bankindia OI ('000) 20.4 975.5 812.5 2,515.0 6,836.0 19,942.0 3,932.0 2,643.0 368.0 6,796.0 4,226.0 % change 38.1 18.4 13.0 9.9 8.5 8.1 7.8 7.7 6.4 6.3 5.7 CMP (Rs) 2,447.3 408.4 1,543.9 559.3 100.6 181.4 340.5 436.1 230.1 74.7 420.6 % change 1.3 (3.1) (1.2) (2.2) 4.5 (2.2) 2.2 (1.0) (0.7) 1.7 (0.8) Volume ('000) 17.3 627.5 290.3 867.3 5,100.0 8,530.0 2,089.0 841.0 159.0 1,796.0 1,114.0 % change 160.4 8.9 (4.4) (16.6) 318.0 8.7 81.5 74.5 (28.7) 108.8 (10.8) Prem/Disc (Rs) (14.1) (2.6) (7.2) (3.4) 1.0 (1.1) (0.6) (2.8) (1.8) (0.9) 2.6

Futures open interest losers

Scrip Gail Centurytex Jpassociat Punjlloyd Zeel Denabank Jpassociat Sintex Ioc Hindzinc Petronet Most active stock calls Scrip Sbin Tatamotors Reliance Tatasteel Infosystch Sbin Sbin Sbin Reliance Tatamotors Strike 2300 1050 940 580 2900 2250 2400 2350 950 1100 OI ('000) 416.6 839.3 298.3 847.5 136.8 96.9 465.6 308.6 343.0 1,291.0 % change 11.4 7.5 83.5 14.8 (14.3) 37.2 5.9 3.9 20.0 4.0 CMP(Rs) 27.9 15.4 13.5 7.0 36.0 46.0 8.9 15.1 11.9 5.7 Volume ('000) 2,790.0 2,632.0 2,127.0 1,569.0 1,128.0 1,169.0 1,085.0 1,019.0 1,189.0 1,011.0 OI ('000) 1,888.0 3,094.5 34,804.0 25,084.0 7,092.0 8,886.0 34,804.0 4,284.0 2,667.5 4,302.5 4,338.0 % change (2.6) (2.6) (3.6) (10.8) (4.4) (4.1) (3.6) (3.4) (3.3) (2.8) (2.8) CMP (Rs) 452.0 350.6 84.6 71.4 140.1 92.1 84.6 184.1 323.6 134.3 139.8 % change 1.6 0.7 3.2 7.2 0.3 2.0 3.2 3.5 2.7 0.8 0.9 Volume ('000) 540.5 1,794.0 12,634.0 15,520.0 1,166.0 2,166.0 12,634.0 2,328.0 499.0 670.0 1,824.0 % change (12.1) (47.9) 20.8 119.3 (51.7) 18.4 20.8 170.7 54.5 46.4 51.5 Prem/Disc (Rs) (2.0) (1.3) (0.3) (0.4) (0.2) (0.5) (0.3) (0.8) (0.3) 0.8 1.0

Most active nifty calls Strike 5500 5600 5700 5400 5800 5900 6000 5300 5700 5600 Most active nifty puts OI ('000) 188.3 507.0 317.5 271.3 621.0 383.8 91.8 58.5 95.6 645.0 % change 9.4 9.4 (2.2) 0.3 (5.0) (1.7) 180.2 29.6 2.3 6.8 CMP(Rs) 37.0 21.7 13.8 23.5 9.8 7.7 14.0 22.0 13.1 4.4 Volume ('000) 1,634.0 1,042.0 973.0 872.0 734.0 816.0 424.0 410.0 419.0 596.0 Strike 5500 5400 5300 5200 5600 5100 5000 5300 5400 5700 OI ('000) 6352.8 9710.4 7103.0 5907.4 2840.0 5009.1 6763.2 1685.4 1082.8 642.7 % change 16.1 11.5 8.2 (0.8) 4.4 5.3 1.3 11.8 5.4 (4.9) CMP(Rs) 79.1 44.1 22.6 11.6 134.0 6.6 4.3 64.5 90.5 211.9 Volume('000) 15204.7 14821.9 9001.9 5500.8 2147.2 2226.0 1266.9 561.9 431.6 373.9 OI ('000) 5,223.2 7,047.7 7,021.5 2,864.1 7,133.6 2,595.1 2,519.4 1,170.0 872.2 834.9 % change (8.6) 4.5 9.5 5.5 (3.2) 2.2 0.0 (16.4) 5.4 11.7 CMP(Rs) 81.5 40.0 16.0 143.3 5.9 3.0 1.6 222.9 57.0 94.0 Volume('000) 20,560.0 13,296.6 7,512.0 5,477.5 3,548.0 1,499.1 836.4 905.6 477.3 476.1

Most active stock puts Scrip Sbin Tatamotors Reliance Reliance Tatasteel Reliance Axisbank Sbin Sbin Hindalco *OI= Open Interest Strike 2200 1000 920 940 560 900 1200 2150 2100 180

Market Mantra

Mutual Funds
Fund focus ICICI Prudential Dynamic Fund
Fund manager Latest NAV NAV 52 high/low Latest AUM Class Options Sanjay Parekh Rs107.1 Rs236/176 Rs2,986cr Equity diversified Growth & dividend Min investment Entry load Exit load Benchmark Asset allocation Expense ratio

Invest
Rs5,000 Nil 1% before 1 year S&P Nifty Equity (87%), Cash (13%) 1.8% (Absolute returns (in %) are based on previous close)

Top Recommended Funds

Equity Diversified/Largecap HDFC Top 200 Fund (G) ICICI Prudential Dynamic - (G) Fidelity Equity Fund (G) Equity Midcap DSP-BR Small & Mid Cap - (G) HDFC Mid-Cap Opp Fund (G) IDFC Premier Fund (G) Equity Tax saving Fidelity Tax Advantage (G) HDFC Tax Saver (G) ICICI Prudential Tax Plan (G) Hybrid DSP-BR Balanced Fund (G) HDFC Prudence Fund (G) Reliance RSF - Balanced (G) Debt Money market DSP-BR Money Manager -RP (G) HDFC Cash Mgmt Fund TA (G) Reliance Money Manager (G) Debt Floating rate ICICI Pru Floating Rate -D (G) Kotak Floater LTP (G) Tata Floater Fund (G) 2,994 2,708 5,899 148.0 15.9 14.9 0.1 0.1 0.1 0.7 0.7 0.7 2.2 2.3 2.2 465 5,616 1,913 1,366.5 21.6 1,345.9 0.1 0.1 0.1 0.7 0.7 0.7 2.1 2.1 2.2 1,173 2,823 1,252 21.7 232.6 140.5 0.4 0.5 0.5 1.0 1.6 0.7 1.9 4.7 4.5 1,137 1,152 1,074 17.5 16.0 18.4 0.5 0.6 0.2 1.2 3.2 (0.3) 7.6 12.0 7.7 Assets (Rs Cr) 9,591 2,986 3,063 NAV (Rs) 208.7 107.1 35.1 1wk 0.4 (0.2) 0.2 1mth (0.4) (0.2) 0.7 3mth 2.8 2.4 1.6

6mth (4.3) (1.5) (4.2)

1yr 11.7 10.5 10.1

2yr 41.4 49.2 44.3

3yr 64.3 54.2 54.0

5yr 166.3 145.3 150.6

(2.1) 1.5 (0.1)

10.0 16.7 9.7

65.9 75.8 60.7

71.2 77.1 98.3

----

(4.3) (3.7) (3.1)

10.4 10.7 10.5

48.1 55.4 58.0

57.5 68.0 55.3

151.3 121.9 106.4

748 5,808 843

65.7 214.4 21.9

0.1 0.6 0.3

0.3 0.9 (0.8)

3.8 4.9 3.3

(0.8) 0.2 (5.1)

9.1 12.4 6.2

33.1 55.6 34.3

41.9 76.3 64.2

124.6 156.8 102.2

4.0 4.1 4.2

7.0 7.1 7.1

10.9 12.1 12.2

19.7 21.0 21.6

-40.9 --

4.3 4.3 4.3

7.5 7.4 7.6

#

12.6 12.8 12.8

21.9 22.5 22.4

-43.7 43.1

NFO Update
Fund name HDFC FMP 370D June 2011 (2) HDFC FMP 92D June 2011 (2) Kotak QIP Series 1 DWS Fixed Term Fund - Series 85
#OE: Open Ended, CE: Close Ended

Open date 10-Jun 10-Jun 15-Jun 15-Jun

Close date 14-Jun 15-Jun 16-Jun 22-Jun

Type CE CE CE CE

Class Debt - FMP Debt - FMP Debt - FMP Debt - FMP

Recent Actions
Franklin India Prima Fund declares dividend. The quantum of declaration will be Rs 6 per unit. The record date is June 17, 2011. Birla Sun Life Dividend Yield Plus declares dividend. The quantum will be Rs 0.60 per unit. The record date is June 17, 2011ICICI Prudential FMP Series 52 - 1 Year Plan B declares dividend. The quantum of declaration will be Rs 0.6883 per unit. The record date is June 15, 2011. Birla Sun Life Short Term FMP- Series 12 declares dividend. The quantum of declaration will be Rs 0.2233 per unit. The record date is June 14, 2011. Fidelity FMP Series V Plan D declares dividend. The record date is June 14, 2011. Canara Robeco Interval Scheme- Series 2- Quarterly Plan 2 declares dividend. The quantum of declaration will be 100% of the distributable surplus. The record date is June 14, 2011.

Disclaimer: Mutual Fund is subject to market risk, please read the offer document carefully before investing.

Market Mantra

House Recommendations
House Recommendations

The large cap Buys and Sells are relative outperformer and underperformer bets vis--vis the Nifty respectively. Reduce portfolio weight in stocks with Sell rating. Midcap Buys are based on absolute return expectations. Top Large-cap Buys
Stock Axis Bank Bharti Airtel L&T M&M REC Sterlite Industries Tata Steel Sector Banking Telecom Infrastructure Auto NBFC Metals Metals Sector View Neutral Neutral Positive Positive Positive Neutral Neutral CMP (Rs) 1,233 378 1,708 664 204 165 563 M-Cap (Rs bn) 507.7 1,433.9 1,041.9 407.8 200.9 553.7 540.0

Source: India Infoline Research

Best Mid-cap Buys

Stock Glenmark Pharma OnMobile Petronet LNG Radico Khaitan Oriental Bank of Commerce
Source: India Infoline Research

Sector Pharma Telecom Oil & Gas Breweries Banking

CMP (Rs) 311 111 141 131 350

M-Cap (Rs bn) 84.0 13.1 105.6 17.3 102.0

Top Large-cap Sells

Stock Ambuja Cements NALCO Sector Cement Metals Sector View Negative Neutral CMP (Rs) 136 88 M-Cap (Rs bn) 208.0 227.4

Source: India Infoline Research

Market Mantra

Economy
GDP growth (Quarterly)
14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Mar-11 5.0 7.0 9.0 GDP (LHS) (Rs bn) (%) 11.0 GDP Growth % (RHS) 13.0

Inflation
12.0 10.0 8.0 6.0 4.0 2.0 0.0 (2.0) Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 (%)

G-Secs yield
9.5 8.5 7.5 6.5 5.5 4.5 3.5 May-10 Nov-10 Jun-11 Sep-10 Dec-10 Feb-11 Apr-11 Oct-09 Aug-09 Dec-09 Feb-10 Apr-10 Jul-10 Jul-09 (%) 10 Yr Gsecs 1 Yr Gsecs

M3 growth
70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 May-11 Nov-10 Sep-10 Mar-11 Jun-10 Jan-11 Jul-10 0.0 ` 15.0 10.0 5.0 M3 (LHS) (Rs bn) M3 yoy % (RHS) (%) 25.0 20.0

CRR, Repo
8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 Nov-10 Jun-10 Sep-10 Feb-11 Aug-09 Dec-09 Dec-10 Feb-10 Jun-11 Oct-09 Apr-10 Apr-11 Jul-09 Jul-10 (%) CRR Repo

IIP and Six key infra industry growth

12 10 8 6 4 2 0 Apr-09 Apr-10 Aug-09 Dec-09 Aug-10 Dec-10 Apr-11 IIP growth Six key infra ind growth (%) 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0

Market Mantra

10

15

20

25

30

35

40

45

FDI

1,000

2,000

3,000

4,000

150

350

550

750

950

(650)

(450)

(250)

(50)

Dec-05 Jun-06 Dec-06 Jun-07

Apr-09

Jul-09 (US$ mn) Sep-09 Nov-09 Jan-10

(US$ bn)

(Rs bn)

Economy

Market Mantra

Fiscal deficit

Jun-09

Aug-09

Oct-09

Dec-09

Dec-07
Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11

Trade deficit (Quarterly)

Feb-10

Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10

Apr-10

Jun-10

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

10

15

20

150

200

250

300

350

(5)

(10)

100.0

20.0
Jun-09 Jul-09 Sep-09 Oct-09 Dec-09 Feb-10 Mar-10 May-10 Jul-10 Aug-10 Oct-10 Nov-10 Jan-11 Mar-11 Apr-11 (US$ bn) INR/USD INR/GBP INR/EURO INR/100 Yen

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Apr-09

Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10

(US$ bn)

Jun-09

Aug-09

Oct-09

RBI forex reserves

Nov-09

Currency movement

Jan-10

Mar-10

May-10

Jul-10

Aug-10

Current account deficit (Quarterly)

Oct-10

Dec-10

Jan-11

Mar-11

May-11

Event Calender
Monday Tuesday Wednesday Thursday Friday Saturday

June 01

June 02

June 03
- US change in nonfarm payrolls 54k vs 244k - US unemployment rate 9.1% vs 9%

June 04

- India Feb exports yoy% 34.4% vs 43.9% - India Feb imports yoy% 14.1% vs 17.3%

- US total vehicle sales 11.7m vs 13.1m - US nonfarm productivity 1.8% vs 1.6% - US Factory orders -1.2% vs 3%

June 06

June 07

June 08
- US consumer credit $6.24b vs $6.01b - US mortgage applications -0.4% vs -4%

June 09
- US trade balance -$43.7b vs -$48.2b - US initial jobless claims 427k vs 422k

June 10
- India Apr IIP data 4.4% vs 7.3% - US import price index yoy 12.5% vs 11.1%

June 11

June 13

June 14
- India May inflation data - US producer price index yoy - US business inventories

June 15
- US mortgage applications - US consumer price index mom - US empire manufac - US May IIP

June 16
- RBI policy meet - US initial jobless claims - Building permits - Housing starts

June 17

June 18

June 20

June 21
- US existing home sales

June 22
- US FOMC rate decision

June 23
- US initial jobless claims - New home sales

June 24
- US GDP qoq - US Cap Goods order - US durable goods order

June 25

June 27

June 28

June 29

June 30
- US initial jobless claims

Blue: Economic data, Black: results

Market Mantra

Recommendation parameters for fundamental reports: Buy Absolute return of over +10% Market Performer Absolute return between -10% to +10% Sell Absolute return below -10%

Published in 2011. India Infoline Ltd 2011 This report is for the personal information of the authorised recipient and is not for public distribution and should not be reproduced or redistributed without prior permission. The information provided in the document is from publicly available data and other sources, which we believe, are reliable. Efforts are made to try and ensure accuracy of data however, India Infoline and/or any of its affiliates and/or employees shall not be liable for loss or damage that may arise from use of this document. India Infoline and/or any of its affiliates and/or employees may or may not hold positions in any of the securities mentioned in the document. The report also includes analysis and views expressed by our research team. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Investors should not solely rely on the information contained in this document and must make investment decisions based on their own investment objectives, risk profile and financial position. The recipients of this material should take their own professional advice before acting on this information. India Infoline and/or its affiliate companies may deal in the securities mentioned herein as a broker or for any other transaction as a Market Maker, Investment Advisor, etc. to the issuer company or its connected persons. This report is published by IIFL India Private Clients research desk. IIFL has other business units with independent research teams separated by 'Chinese walls' catering to different sets of customers having varying objectives, risk profiles, investment horizon, etc and therefore, may at times have, different and contrary views on stocks, sectors and markets.

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