6th August

We think the US sub-prime problem will be there for some more time and it is not over yet. Any problem of this sort affects US markets and then emerging markets get affected because most of the time investors tend to fly towards quality. We should see some kind of money going out of India in the short- to medium-term and the paying is not over yet. The markets will correct some more before we see consolidation happening and interest buying taking place.
However what is pleasing to see is that the overall discount for the futures and options side has gone back to 45 points still lower by about 15 points from what we saw on that 600-point fall day. At the moment our market is in tandem with US and Asian markets. Our market closed in green because of good global cues from Friday but Dow Jones ended in deep red this Friday so we might see another fall on Monday. Sensex is testing 14700 mark and if market falls below 14500 then buying should be done at every opportunity.
Stocks To Watch:-
State Bank of India has firmed up plans to launch a separate holding company for its life insurance and mutual fund management arms within the next 2-3 months. Merchant bankers have evaluated the valuation of the new company between $4 billion and $5 billion (Rs 16,000-20,000 crore). The new company would be listed on the exchanges this year.
AUGUST TGT 1750-1825+

GMR Hyderabad International Airport Ltd, a subsidiary of GMR Infrastructure has selected Apollo Hospitals for setting up a medical centre inside the Passenger Terminal Building (PTB) at the new Hyderabad international airport at Shamshabad, Hyderabad.
AUGUST TARGET 950+

Punj Lloyd has signed a MoU to invest Rs 403 crore for acquiring 25.1% stake in Pipavav Shipyard Ltd. The investment is subject to receipt of corporate and statutory approvals and satisfaction of certain conditions precedent.
AUGUST TARGET 320+

Suzlon Energy plans to reach 5000 MW capacity installation from the current 2700 MW by the end of this financial year, to become one among the top four integrated wind energy manufacturers in the world.

6th august : 14600 & 4270 crucial trend deciders to watch out for Today.

Buy Nifty Future @ higher levels around 4380-4385 Stoploss 4260 Target 4425-4445.


Caution :Global cues not looking good ,expect market to be very volatile. wait before creating long positions.

MARUTI,LT,GMR,ONGC,BHEL,RPL,TATA STEEL,RELIANCE,SBI
Looking Good