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RAJESH DESAI

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Oct 1, 2012, 12:02:05 AM10/1/12

to LONGTERMINVESTORS, DAILY REPORTS, library-of-eq...@googlegroups.com, equity-rese...@googlegroups.com, globalspeculators, STOCK BUFFS

View-Point:

- Volatile week ends with marginal gains.

- We believe markets will trade in consolidation mode with expectation of news flow on further reforms which could act as triggers for next move.

Buy OBC (OBC IN)

- Expectation of rising NPAs and book restructuring had seen the PSU banking group witnessing a bout of correction.

- Concerns on policy paralysis and resulting slow-down in economy cast its spell on PSU banking pack on whole.

- With a host of positive steps under taken by Govt., we expect banking sector to liven up as concerns of slowdown will recede.

- We expect the PSU pack to be major beneficiaries of these reforms, which should reflect in stock prices.

- OBC with its focused strategies and attractive valuation (0.8 FY14 BV) looks a good bet.

- Maintain buy with target price of Rs. 322

Derivatives:

- Nifty Futures OI increased by 2m shs to 25m shs. Nifty Oct futures settled at a premium of 26 as against a premium of 35 in the previous session.

- Stock Specific : Tata Global witnessed delivery of 3.3m shs (10d-avg 0.9m shs) along with 7% rise in Fut OI to 12.8m shs indicating built up of long positions.

- In Oct series for Nifty, Highest Call OI is at 6000 strike with 4.6m shs up 0.8m shs which has changed from 5700 (OI at 3.9m shs down 0.6m shs) and highest Put OI is at 5300 strike with 5.5m shs up 0.4m shs.

Corporate Actions :

- Colgate Palmolive (Rs.13) and Patel Engeenring (Re.0.30) to trade ex-dividend today.

Key Statistics:

Market Sensex 18,763 up 183 & Nifty 5,703 up 54

Advance:Decline 1644 : 1248

F&O data (28th) Index Rs. 9.98bn & Stock Rs (5.79)bn

Cash (Prov 28th) FIIs Rs 12.30bn & DIIs Rs. (6.79)bn

Cash (27th) FIIs Rs. 6.31bn & MFs Rs. (1.80)bn

Others Brent Oil $112.39 v 112.01 & INR 52.86 v 53.02

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