16 AUGUST 2012

WEEKLY REVIEW – WEEK 33

NIFTY OVERVIEW

What the markets where waiting for, did happen this week. Inflation numbers came out lower

than the street expectation. July inflation numbers came in at 6.87% below street expectation

of 7.24%.

Indian equity market is seeing positive FII inflows for the entire July 2012 and August till date.

This shows that the sentiment is bullish. And consequently Nifty is shining.

The news that the government could resume privatization program by selling stakes in Bhel

and Sail has boosted the overall sentiment. Attractive pricing of the upcoming IPOs can

rekindle investor interest into the equity markets.

Overall, the moderation in inflation numbers raises expectation for some monetary easing in

the coming quarters. Nifty has medium term resistance at 5510 and on the downside 5260 is a

critical support.

Daily Candle Chart of Nifty (spot)

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BANK NIFTY OVERVIEW

Technically, Bank Nifty has taken support at an upward sloping trendline. The overall bias is

upward. Bank Nifty has resistance at 10820 and on the downside, support lie at 10340.

Daily Candle Chart of Bank Nifty

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STOCKS IN FOCUS

TATA MOTORS LTD

BSE Code:500570 NSE Symbol: TATAMOTORS P/E :43.58

ISIN Demat:INE155A01022 Div & Yield %:1.70 EPS :5.39

Book Value:62.07 Market Cap (Rs Cr.):74924.87 Face Value :2

Recommendation : BUY Last Close : 235 Targets : 246-253-261 Stop loss: 223 (closing basis)

Tata Motors is showing signs of uptrend. The stock’s recent correction can be used to buy it.

The price-volume action suggests buying interest in the stock.

The stock has given a hammer and a bullish engulfing candlestick pattern , which suggests

bullish reversal for the stock.

The stock has also entered a gap-zone and taken support there.

The stock is a buy for the target of 246-253-261 and stop loss of 223 on closing basis.

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STOCKS IN FOCUS

RELIANCE COMMUNICATIONS LTD

BSE Code:532712 NSE Symbol: RCOM P/E :66.05

ISIN Demat:INE330H01018 Div & Yield %:0.44 EPS :0.85

Book Value:218.98 Market Cap (Rs Cr.):11589.47 Face Value :5

Recommendation : BUY Last Close : 56.20 Targets : 58-61-63 Stop loss: 53.30 (closing basis)

Reliance Communications has made a double bottom at around 53-54 levels.

The stock’s RSI (relative strength index) is showing a bullish divergence. This is a positive

indication and suggests upside for the stock in the coming days.

The stock is a buy for the target of 59-61-63 and stop loss of 53.30 on closing basis.

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STOCKS IN FOCUS

CASTROL INDIA LTD

BSE Code:500870 NSE Symbol: CASTROL P/E :33.02

ISIN Demat:INE172A01019 Div & Yield %:2.52 EPS :18.02

Book Value:24.43 Market Cap (Rs Cr.):14718.10 Face Value :10

Recommendation : BUY ONLY ABOVE 610 Last Close : 594.60 Targets : 630-655-690 Stop loss: 585 (closing basis)

Castrol has recently taken support at previous high (now broken) at around 588 levels.

The volume action in the stock suggests buying interest.

The stock is a buy ONLY above 610 levels for the target of 630-655-690 and stop loss of

585 on closing basis.

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STOCKS IN FOCUS

HINDUSTAN ZINC LTD

BSE Code:500188 NSE Symbol: HINDZINC P/E :9.36

ISIN Demat:INE267A01025 Div & Yield %:1.91 EPS :13.36

Book Value:63.62 Market Cap (Rs Cr.):52858.50 Face Value :2

Recommendation : BUY ONLY ABOVE 126.50 Last Close : 125.10 Targets : 130-134 Stop loss: 123.50 (on closing basis)

Hindustan Zinc has recently taken support at its 200 dma (day moving average), which is a

long term support.

The stock has a doji candlestick pattern which suggests that the fall from the high of 128

has halted or is about to reverse. The stock’s volume indicates buying interest.

The stock is a buy ONLY above 126.50 for the target of 130-134 and stop loss of 123.50.

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STOCKS IN FOCUS

MOTHERSON SUMI SYSTEMS LTD

BSE Code:517334 NSE Symbol: MOTHERSUMI P/E :20.74

ISIN Demat:INE775A01035 Div & Yield %:1.62 EPS :8.11

Book Value:32.56 Market Cap (Rs Cr.):6593.71 Face Value :1

Recommendation : BUY ONLY ABOVE 170 Last Close : 168.25 Targets : 176-185 Stop loss: 164 (on closing basis)

Motherson Sumi is trading above its 200 dma (day moving average).

The price and volume action shows that there is buying interest in the stock.

The stock is a buy ONLY above 170 for the target of 176-185 and stop loss of 164 on

closing basis.

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STOCKS IN FOCUS

MAHINDRA & MAHINDRA LTD

BSE Code:500520 NSE Symbol: M&M P/E :15.84

ISIN Demat:INE101A01026 Div & Yield %:1.67 EPS :47.15

Book Value:198.26 Market Cap (Rs Cr.):45870.44 Face Value :5

Recommendation : BUY Last Close : 747.10 Targets : 765-780-801 Stop loss: 730 (on closing basis)

Mahindra & Mahindra is in an uptrend, making higher bottoms and higher tops.

The volume action in the stock suggests strong buying interest.

The stock is a buy for the target of 765-780-801 and stop loss of 730 on closing basis.

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DISCLAIMER

Created by: Inventure Research Contact : Research Coordinator, Inventure Growth & Securities Ltd,201,Viraj Tower, Near Landmark Building, Western Express Highway, Andheri (East),Mumbai -400 069 Tele: 91-22-39548500 Extension :578, Fax: 91-22-40751535. E-mail: milan.bavishi@inventuregrowth.com , website : http://www.inventuregrowth.com/ Notice: This document is prepared by Mr. Milan Bavishi. Research for Inventure Group for private circulation exclusively for their clients. Disclosure: We and our affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company/companies mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company / companies discussed herein or act as advisor or lender / borrower to such company / companies or have other potential conflict of interest with respect to any recommendation and related information and opinions. The same persons may have acted upon the information contained here in. Disclaimer: This document has been furnished to you solely for your information and may not be reproduced or redistributed to any other person. This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. The material is based upon technical reading of the Graph. Though utmost care is taken by the writer of this document, and it should be relied upon as such. Neither Mr. Milan Bavishi of Inventure Growth & Securities Ltd. nor any person connected with any of these entities accepts any liability arising from the use of this document. Opinions expressed herein the report are our own and are based on Technical Research as of the date appearing in this document only. Reports based on Technical Analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report based on a company's fundamentals. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward- looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that may not exactly adhere to the recommendations expressed herein. No part of this material may be duplicated in any form and /or redistributed without Mr. Milan Bavishi’s prior written consent. In so far as this report includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed.

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