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MORNING REPORT
August 4, 2011 August 4, 2011 Markets are expected to to open on negative note mirroring trends in Markets are expected open on a a flat note tracking mixed cues Market mayoverseas markets and lack of any positive triggers. weak regional markets on news of Portugals credit rating being from open flat note but short covering may help them recover downgraded. Support @ later inResistance @ 5863. 5649|| the day. Support @ 5769|| Resistance @ 5933. Support@5332Resistance@5446

INDEX NIFTY NIFTY SENSEX SENSEX

POINT 5862.7 5751.95 5405

Chg. Chg. +32 -47.8 -52

19521.25 +116 19136.6 -181.5 17940 -169 -42 -37.6 -59 -5 +29.8 +87 -46 -95.28 +30

Hangseng 22839.6 Hang Seng 22965 (8.15 a.m.) 21933 NIKKEI NIKKEI 9931 10069.3 (8.15 a.m.) 9724 US DJIA US DJIA 11006 11092 11896

YESTERDAY VOLUMES
BSE CASH(Cr) BSE CASH(Cr) NSE CASH(Cr) NSE CASH(Cr) NSE F&O(Cr) NSE fF&O(Cr) TOTAL (Rs. Cr) TOTAL (Rs. Cr)
2,576.76 4,619.48 6,495.03 16388.94 22743.62 10601.41 139648.85 95419.91 104008.08 116,428.33 168,887.50 117,186.25

INSTITUTIONAL ACTIVITY
FII (Rs. Cr) FII (Rs. Cr) DII (Rs. Cr) DII (Rs. Cr)
+491.88 -628.77 -869.69 -199.85 959.41 422.48

MARKETS ON FRIDAY MARKETS YESTERDAY YESTERDAY Morning Session: market tumbledgap 5 into startred afteronset of trading in the red taking The markets a to down the at continued a positive start, tracking Morning Session: The Markets had slipped week low andthe makingto trade session on weak cues from the regional markets which were trading low and US markets which ended lower the weak Asian markets and as the fears of the bribery scam had not left the Asian stocks. on apprehensions investors minds. that the Ireland bailout package would not stop the crisis from spreading Afternoon Session: Key benchmark indices sharply pared losses in afternoon trade as US index to the rest of Europe. Mid Session: Benchmark indices recovered from their early loss based on buying in select futures rose. stocks at lower levels and indices started recoveringgreen terrain once again covering huge Mid Session: Benchmark the markets entered the losses and settled and entered the Closing Session: Key benchmark indices extended recentfrom their days low near their lowest positive terrain 6 the back of ground in nearly intraday closing level from theon weeks low. better than expected second quarter GDP numbers which stood at 8.9%. Closing Session: Markets could not sustain their recovery and closed the week in the negaMARKET NEWS tive terrain mainly due to the panic sellingto close withthe bribery scam a second consecuClosing Session: Indian markets managed on fears of steady gains on also on cues from tive weak global get 1.35 the AIRWAYS: To markets. bln rupees in cash and share ofin during part day, eventhough the JET day based on the robust GDP numbers that came profit as the of Bandra-Kurla global cues were not so supportive . Complex land MARKET NEWS development deal with Godrej Properties MARKET NEWS LANCO INFRATECH: To develop Gare Pelmamln viablock in Chhattisgarh, set up 2,000 MW Bhushan Power & Steel to raise up to $700 II coal international listing. power plant MOIL Ltd's 33.6-mln-share issue subscribed 28.62 times at the end of Day 3. State-owned GMR Group inks deal to sell 50% stake in its overseas power company InterGen to China ATLANTA:Group for $1.23 highway order worth 9-10 bln rupees management pact with US Huaneng Has received a bln. HCL TECHNOLOGIES: Has signed a multi-year infrastructure from the Bihar State Road Transport Corp. based Purdue Pharma L.P. SHIPPING CORP OF INDIA fixes follow on public offer price band at Rs.135-140 per share. RELIANCE INFRASTRUCTURE: Maharashtra Electricity Regulatory Commission has allowed HINDUSTAN COPPER: Postpones plan for FPO from December this year may launch it after HINDUSTAN CONSTRUCTION COs rupees tariff differentialgets show cause notice from Envithe company Jan 15, 2011. to recover 23.16 bln subsidiary Lavasa Corp from consumers. ronment ministry for violation of green laws. KALPATARU POWERs Open offer for 20% in JMC PROJECTS to start Dec 8 andclose Dec 27. OIL INDIA and OIL & NATURAL GAS CORP have joined hands with BPCL and IOC for foray MARKETS TODAY into city gas distribution. up 2,000 MW unit in Kanpur; project cost estimated at 100 bln ruNEYVELI LIGNITE: To set pees, may be completed by 2014. The SGX NIFTY MARKETS TODAY is trading at 5411 down by 18 points . SESA GOA: Will stop mining operations at Thakurani mine in Barbil, Orissa from Wednesday Key Asian indices are trading mixed today, with Japan's Nikkei risingcountry's government higher backed by gains ASIA: Equities rose of its with Japan's Nikkei following the expirytoday,existing contract. index rising 1% as the in shares ofto curb the rise in the yen against the dollar intervened exporters. The Indian government's fiscal deficit fell 33.8% on year to 1.623 trln rupees during Apr-Oct, The SGX NIFTY is trading at 5779 down by 6.5 points. the first seven months of 2010-11. NIFTY SUPPORT AND RESISTANCE LEVELS FOR THE DAY SUPPORT AND RESISTANCE LEVELS FOR THE DAY MARKETS TODAY Res:5788-5826-5863|| Sup:5714-5677-5649 5372, 5349, 5332 Resistancemarkets are trading & Supportstoday as investors stay on the sidelines on news that Asian 5415, 5426,5446 in the red Standard & Poor's may cut Portugal's credit ratings . The SGX NIFTY is trading at 5879 down by 10 points. SECTOR ALERT F&O NIFTYAugust Government the day allow FOR THEsector decrease of 0.77% and an Open the FERTILISERS: futures endedlikely to at 5424.4, with DAY to import urea freely, but will pegInNifty SUPPORT AND RESISTANCE LEVELS private a price domestic price in a tight band around previous days future close. Market trend was negative terest (OI) increase of 9.63% from the what it costs to produce urea locally, thus making imports Res:5893-5913-5933|| Sup:5831-5800-5769 unviable. on weak global cues and some covering may be seen today. yesterday F&O F&O Nifty December Futures regained its footing after losses in the early session. It closed at 5886.9, Nifty December Futures closed a volatile session on Friday at 5778.15, with a premium of 26.2. with a premium of 24.2. We see that Open Interest (OI) has increased by 2.38% and that future We see that Open Interest (OI) has decreased by 3.87% and that future price has also deprice has also increased by 0.63%. We also see that premiums for the series have increased. This creased by 1.15%. This suggests a weak market with a bearish trend. indicates a positive consolidation in market. 1

PRECIOUS METALS
GOLD GOLD SILVER SILVER Rs. 20575 Rs.23208 Rs.20405 Rs. 58100 Rs.43055 40840

BASE METALS
NICKEL NICKEL COPPER COPPER Rs. 1064.6 Rs. 1054.1 Rs 1030.6 Rs. 431.45 Rs 388.75 Rs. 378.1

COMMODITIES
CRUDE OIL CRUDE OIL NAT. GAS NAT. GAS RUBBER RUBBER PEPPER PEPPER Rs. 4380 Rs. 3861 3924 Rs.201.7 Rs.193.5 Rs.204.2 RsRs20600 Rs .19504 . 19504 RsRs .21790 Rs 21880 .23049

June 13, 2011 August 4, 2011

TECHNICAL OUTLOOK
Hedge Equities Ltd. Hedge Equities Ltd.
The S&P CNX has formed on daily A Doji candle Nifty is still trading chart the 100 days indecisiveness belowwhich indicatesEMA which reof trend mains a negative bias for the current rally. Price ROC has closed with negative Oscillators like RSI has closed with divergence momentum trade and also it has closed below the negative divergence trade. zero base line both remains negative Overall, the market may expect a mode. negative bias until Nifty break up 5515 level. market may expect a Overall, the negative consolidation. Resistance 5494, 5512, 5531 & Supports 5415, 5426, 5446 & Resistance 5469, 5453, 5432. Supports 5372, 5349, 5332.

R1 S1 S1

5415 5494 5469 5372

R2 S2 S2

5426 5512 5453 5349

R3 S3 S3

5446 5531 5432 5332

Events to watch today today Events to watch

India: Weekly Inflation US: Initial Jobless Claims US: Continuing Jobless Claims

Corporate Actions update update Corporate Actions

Castrol India Limited : DIVIDEND GENERAL MEETING Tech Mahindra Limited : ANNUAL RS 8 PER SHARE AND DIVIDEND RS.4/- PER SHARE Satyam Computer Services Limited : ANNUAL GENERAL MEETING Varun Industries Limited : ANNUAL GENERAL MEETING AND DIVIDEND RS.1.80 PER SHARE

IPO Updates IPO Updates

August 4, 2011

FUTURES & OPTIONS

Hedge Equities Ltd
Futures Market: Nifty August futures ended the day at 5424.4, with a price decrease of 0.77% and an Open Interest (OI) increase of 9.63% from the previous days future close. Market trend was negative yesterday on weak global cues and some covering may be seen today. Spot closed at 5404 which means that the August months futures traded at a premium of 20.4 an increase from the previous days premium of 9.95; this increase suggests a short term recovery in the market. Nifty September futures ended at 5441.3 with a price decrease of 0.75% and an OI increase of 6.58%; market trend is based on foreign cues again and apart from some short covering trend is slight negative. Nifty 3 month Put-Call Ratio (PCR) on the basis of OI decreased to 1.05 from the previous days PCR of 1.06, this decrease in the PCR is seen due to the increase of calls OI to the increase seen in the puts OI. Calls mostly saw some long buildup, puts saw a mix of long covering and short buildup and may suggest a positive movement in the market. For the August series the highest OI movement was seen for 5300 PE which saw short buildup, suggesting some support in the market. Calls highest OI movement was seen for 5400 CE which also saw slight long buildup, indicating a possible upward movement from this level. Immediate resistance on the basis of options for the Nifty stands at 5565 and support at 5320. India VIX stood at 19.48 an increase of 1.72% from the previous days 19.15. The VIX is near its resistance level of 20.18 and may suggest some recovery from near these levels.
Most Active Futures in Terms of Contracts SCRIP (JUNE) FUTURE PRICE SPOT PRICE PREM TO CASH 3.9 2.35 1.4 0.65 5.15 CHG IN PR% CHG IN OI%
Product

Options Market:

Trade Stats for 3nd August

No. of Contracts Turnover (Rs. Cr.) Put Call Ratio

JSWSTEEL SBIN ICICIBANK BHARTIARTL RELIANCE

713.6 2289.35 1007.9 426.9 830.4

709.7 2287 1006.5 426.25 825.25

5.55 0.09 -1.79 -1.40 -0.97

1.16 1.56 7.27 1.43 1.78

Index Futures

458068

11616.54

Stock Futures

453630

12564.57

Index Options

2767116

76163.12

0.93

Stock Options

125972

3663.85

0.37

F&O Total

3804786

104008.08

0.89

Derivative Option Strategy Bull Call Spread on AXISBANK Scrip: Axis Bank Limited| Lot Size: 250 | Expiry Date: 25th August | CMP: Rs.1301.8 Rationale: Axis bank is in an uptrend. Some profit booking was seen yesterday but the overall trend for the market remains positive, the movement for the stock is positive with the futures supporting the positive movement expected. There is some intermediate weakness seen, thus the strategy suggested is the bull call spread. Construction: The strategy is constructed by purchasing one 1300 CE at Rs.39.9, selling one 1350 CE at Rs.18.7 and selling one 1400 CE at Rs.7.5; the total cost to create the strategy is Rs.13.7. The strategy initiates above 1300 with the long call and breakseven at 1313.7, it continues to gain and finally maximizes profits between 1350-1400 with Rs.36.3. After this point the second short option initiates and generates losses. The cost incurred in creating the strategy is the maximum downside loss the strategy incurs if underlying stays below 1300 on expiry. Cost and Initiation: The total premium cost and downside loss is Rs.3,425 (Rs.13.7*250lots) and the maximum profit is Rs.9,075 (Rs.37.1*250lots). 3

August 4, 2011

CURRENCY
Hedge Equities Ltd Hedge Equities Ltd
USD/INR DAILY CHART

USD/INR: USD/INR:
The Indian rupee marginally44.70per dollar onweakertracking theyesterday ingains44.70. ended at weak per dollar dollar, byweakest level in shares, a at on against cues weak gains of were Asian currenciesended firmly onfirm againstFriday,concernsof weak fallmore thanby The Indian rupee traded at 44.72Wednesdaythethesecond noting thelocal sharesstrong rupee rupee weakened 44.73against the for US itsthan straight session, morning as Indian was ended at 44.75 on Wednesdayaondollar Wednesday's theweighedpull rupeewere trading Friday, close to greenbackEuro and closethe euro. continued to trade supported onstrong of Euros local and and weak in asfor and importer and pullforbroadEuroatfrom importerslimitedatregain currenglobal Indian overshadowedThe forfollowingsharedollarthelocal index from the the equities,assetsbounceby robustlocal pressurizedthe the data 44.70/71 US. but selling. bybackUSwas euro helped and IndianThe of fallmost of a demand euro dollars strong economic unit major shares. week & Euro riskier high demand appetiteexporter dollar currencies, and dollar. $1.4623 inflows. weal Indian in per However,Wednesday, weighed back in the gains Indian rupee versus the The dollar in the dollar and volatile The backchoppyrise was Asian euro was Asian limitedon there in markets improved USof corporate indices ended rupee. the rupee local index the lost Though. domestic was weak, greenback becauseagainst the dollar as local ground cies rupeerupee currencies44.8144.67/68. down 0.10 Inand sharedollar supply was The Indian major thesix major Thursday's percentwas weakpoints. points at local close rupee.at 44.72 comparedagainst per dollar against 73.790on banks'the On Fridaymoved and weak steadyclose of up 0.01Asian currencies at Thursday. currency Indian was ended atto currencies rupee at 44.84 Intraday indices were doeuro shares. The was of 44.73. % 73.854 the close ended of the dollar dollar against six against The against Tuesdays was shares73.700companies'of44.31/32 perin as market.than one-monthclose on Tuesoffsetrange there was44.761.0% and also dollar/rupee extended its fall against the ing well so ofpointsbandatpurchases .Thethe the euroThe its in the non-deliverable The Indian rupee ended two-way flow in the ended the versus by oil 44.66 on Wednesday. rupee moved indown-over 44.79-44.92. dollar, weaker rates 44.27/28 dollar/rupee range. The eurorates rupee weakened to one-month high against dollar on and United was finalforwardshovered near a asas the 44.75 gave upprior to dollar sales from corporate, futures bouncing back fromlow asStock Exchange,gains againstGreek US dollar Exgreenback. on the National euro intraday theMCX-SX, as the deal Stock today, but markets rose the day's low of 44.4050. Currency Reliancedata releasingwhich will the was dollarin aFridaydollar/rupee well. Industrial speculators Asian ,betsas the limited the localinon to the day's highAcincluding anticipation of one-month high dollar ECB. influencethe theas straight week of ized and hoveredfirmboostedcurrencies againstup dollar disappointingmarket asanticiThe eurowere marginally higher ratesproppedU.S.the riseonunitspotIndian rupee.NDF output near a interest today hikehave an The for the Industries against by the firm second investorsdata in US jobs is day .However, change Moody'stolevel notaccording thedataan onethesoft patch in Aprilworld'smoved in a addiInvestors felldataand made US dollar Commodity the to beforpurchased narServicein to Fitch from month low because banksbiggest but the and could Ratingsamaintained U.S. market at now, economy ratings the weak the jobs cording 44.5750 a Reuters, against non-deliverable forwards pressurizing U.S.US they pated.The rupee dollar that the rate dollar/rupee rates expectthe signal The latest period, seen since May 5. Industrial output yesterday. Trading Commission today for Futures 5.5% from Asian deficit-reduction because of mixed cues put net shortalso bought and retain tional released on Friday. in local shares. to importers position rose tracking greenback yesterday currency. value of the dollar's public financesyesterdayto $22.98 rowpressurize the were trading are neededSomethe greenback the euro the green(CFTC) currencies the fall The year band and earlier. noting US measures lower againstemerging from in order and Asian India's industrial output probably rose 5.5 % in April from aone-week low againstdata Analysts expects the rising the triplethe Market forward fall, pressurized by downeuro and abanks economic the back. Dollar/rupee dollar to euro. dollarshorts of an overbillionsluggish earlier. percent currencies. rise against Juneof the lackedwereto six major currencies fellthe first day participation Rupee luster $15.73 year earlier, moderated by today as week 0.49 the dollar's week ended the 7, from net against since yesterday was sold forward billion in A-rating. The index premiums fell successivebanks futuresrupee greenback noting near-month dollar-rupee dollar up on in the worlds largest economy.rose slowedtradedUSIndianattractand could contracts loIn the as interest The rises declinewould support may in Asian the median forecast the new year. rate market This againstmanufacturing rupee declining move sales currency boughtthe which most the the fall growth, currencies and on , the in spot rupee dollar after forward earlier to dollar dollars on expectation the of 74.148 points from its 74.584 previous close. to In National in the 44.50. currencyfrom foreign institutional investors as rates share Indian rose. the Reuters pollfutures market dollar/rupee futures local Stock Exchange were at the United on the National Stock cala share indices Exchange, ,the most traded near-month dollar-rupee contracts on likely exporters.showed. Fridays Industrial and near-month dollar-rupee contractsand from inflowsStock.One-month the MCX-SX output will be crucial forindices rupee The In the currency futures market , the most traded on In the slid MCX-SX, and respectively. Total day choppy dollar-rupee the United , the markets. Stock Exchange andthe MCX-SXvolume was $8 billion. 45.0025, 45.0075, 45.0050 United Stock traded near-month trade and on greenback National Exchange, again against the US dollar Exchange rose at 44.8475 as the fall in euro rupee currency futures marketthethemostin and onofboth yesterday as thecontracts on a werethe United Stock Exchange were at the dollar edged Exchange, MCX-SX upbeat The National Stockhigher on Tuesday after and the U.S. data suggested the were at world's the National Stocktomarket. greenback. Some $7.01 alsoStock Exchange United bought the greenback gained in the spot Exchange,The dollarvolume atbanks billion . and pound sterling prompted banks 44.8500,the the MCX-SX against the euro buy with the total rose Stock Exchange at biggest economy will accelerate in 2011, helping it make smart gains against the 44.8675, 44.8800 and 44.8725 respectively, with the total volume at $8.01 billion yesterday as traders44.5000, respectively. The total on behalf of oil companies and to buyimporters. volumebetter-than-expected US 44.4925, 44.4950 and preferred other the greenback on stood at $12.16 billion.

DOLLAR INDEX CHART

yen and the Australian dollar. The rupee also ended lower against the dollar. economic data. Dollar strengthened yesterday as investor confidence in the US The Indian rupee continued to hold in a tight range on Monday tracking mixed economy improved after factory orders for November rose 0.70% as against an cues, as positive sentiment due to firm domestic shares and Asian peers, was expectation of a decline. offset by broad gains in the dollar versus major currencies.

EURO/INR DAILY CHART

EURO: EUR/USD continued its northbound momentum yesterday as the annualized EURO: difficult to get price estimateMonday in the first December from of 2011, It was Euro-Zone consumer an dollar on rose 2.2 percent in trading session be perThe euro fell against the accurate read on the euro yesterday. This can 1.9 parThe rupee against to the unusualendedended at 63.5550 for contract. The euro fell for euro on Wednesday for June contract. euro zone since well as tially attributed euro ended the rate of inflation was are still rose 1%. October cent in November. Indeed, at market 64.7900 about The Euro contract. Thinned reversing year-end gains Friday65.1700atconcerns for wethe highest debt. The euro on persisting conditions June August facing as the datastraightsales inthe mostcame London thancurrency roseGreekthe second and rosethird to to 1.4635 forin Tokyo sinceinnote5. TheGerman unemployment crisisEuro after and holidays Europe dollar May thatTheconcerns of of particular impor1% retailled by,against the energybetter addedreading but forPeripheral euro $ news increasing and onprices. on expected is still the major day day Friday, the 2008 due trade and was the day. We to volatility. debt rose for The rupee against euro endedinflation pressures day(though fell 1.1% Centralnear % zonerupee Japaneseissuethat atat65.5600 for June hikes. Euro aeuro was really 0.5 a diminished against euro ended2009 eurothefor June lead the Theiteurorose fornear sinagainstdueagainst euro endedearly63.8075 forJune contract. beThedoesnt on Thursday sovereign since yen at of at65.5000previous contract. The Euro traded thealter the expectations about at 65.6100 forrate contract. The catalyst down Bank debteuro ended the part of theMay contract. European on Friday one is 117. 48. the zone year could pressurizing Euro. and The first time the fact the euro traded the rupee to tance zone debt issuancesJune in month at $1.4343 on thatdaydollaris going to receive its200signalpackage byfinance in outon news thethethe European Central Bank which a European July to avoid Greece on it , hurt at doubts down by 1.2%. industry July bailout traded hightrend) andfromthe the yenMonday on 115. thethatshowedof 2010hike minisagainstat $1.4626 ended by data to lastisanother rate 2008likely as investors expected against to raising the benchmark Euro Zone CPIin seven-weekdollarfall andthe initial interest gains Though it daysOctober are high the larger closer the low while gle currency toagainst exaggerated rate. reading hit an Aprilthat the ECB unlikely the strugglesand contain the risk for contagion, and Euro zone interest rates maythe may EU would boost the offer moreas betweeneurotheres thatin reversed powerhouse activity really Greek by an aid, but down their debts, putbezone its borrowing costsgap governmentszone speculation losses were push it Euroraisethe to onceEuro.to launch more interest indebt to bring that replace limited ters'defaultofficials is wideningeconomysecond picks up.theunexpected 0.6 %.group 110 meeting ECB agreed to take a Germany fell bailoutlater-released core data). euro zone the likely would trading clarity on US struggle that would the (though will to towards the scheme put calmweeks.intothe afterUnionagainkey $1.40 year. The new plan take additional the to together by The demand forrestructuring came European Italian Finance last level. billion euro $1.50 in coming market fears psychologically and dragged the Euro southwithGreek debt steps Euro seen around picture once and IMF Minister Giulio Tremonti On short term developments may provide the catalyst needed for the single the the headlines, the ECB announced it had successfully sterilized its cumulative met continuedsaid PresidentGreek wards, many investors expect theroll over an extra year of which was raised would on would go Euro-Groupand providingeuro to push higher, as bond holdings. Webeyond the ECB 2014 would not Greece Juncker earlier financial support again today. The with to gain a short termJean-Claudelast week; correction takes certainly get In fact, as up tobondit purchasesboostdebtits own Greekbut skepticism place. government to receive more through restructuring, the European Central Bank recurrency going possibility of before a larger Greece bailout. fell to $1.after flag confidence minister ,month, JuneIMF chief view than rate sexual next investors some clarity original is is in athis issue when Euro arrestfinance among theaccording and could shotthe Wednesday widely news gave the zone onbillion assault charges ofto20.Euro see up Thursday on Thisexpected tosome a $100 rise for Wolfgang on reinforcing the news The euro initiallyletter from German finance ministerEuros meetSchaeuble,German Domimains surrounding risen made one monthstrong note as investor's confidence on European EurodollarEuropean financials.in highs,three weeksbyon account of aid for magazine. US pressure more than 4% against the markets opened the year on conference. supported The Strauss-Kahn and after rise much that euroeuro zone interest rates willthe National Bank unexpectedly the bad US non farm that euro rose higher after the speculation fasterchanges at the cut of the multilateral niquecome underhas prompted SwissECB newspastthan U.S. rates. top its interest rates to Spanish Prime ECB meetingsrise. Thursdayunchanged, zone states. increase in interest global may affect discussionsimproved,indebted Zapatero said that investor attention Minister forecast for and Europeanhas indicates the pace deficit Luis Rodriguez euro manufacturing activity accelGreece economic recovery employment2012 inflation Joeson The Swiss where marketscaptured the 2010 of Euro stem the Swiss ECB kept its change. lender and the franc's rapid on aid target , franc unit whichexpect European services better be slower than be went global gave signals that interest to beinterest ratedebt market jittersthe suitexpected. onto cool as it a new continue eratedsomewhatdideconomy seems worries aboutTrichet growth.did not round of Chinese not than and manufacturing rates.the growing hikes will followlast a one-month88.99 pence down. ofBank of Engamid sterling, the euro EUR wastarget,to of starting versus that the zone while under pressure, falling to up and% at low to addthe euro 89.76 pence Against Sterling came 0.1 after expansion possible in July. yetagainst as out immediately. services expanded at stress plans low hold approved by all 17manufacturing rating agencylastzone, rerate a tests need to be at record lowsthe dollar expected. and eurothe euroMr. ZapaBailoutsessiononon of $1.6355 be carried widely after creditThe Moreover,Moody'sand land kept rates lenders will European national governments in was and hike is in December, up 0.3 % the franc indeximportant that China has confidence inrating. euro after data (due terofastestdollar that what couldexpected in December; north Europeanremained US dollarwarning atthethe UK in monththan prized triple-ArichPMI composite touching a further a dropped Greeceone more low two yearsafter thethe The said it is for $1.4620. against funding slipped to is mounting in of 73.64 against Spanish jobs countries peated the pace than most was lose its some of the disappointingeconomy and unemploymenttheChinamost to a Bank rescue.will increase that supply of the currencyreat the fact contribute recently and the to 55.5. which wouldthat Swiss National new and itexpectations the US interestpublic will to record high as rate rising to 9.1%announced that it will buy Spanish rates debt). main tightening Thefiscalfell versus the euro onstates such the Germany andwill take The lower. Euro rose to policy by high of $1.4659. money markets. of yen a one monthstronger speculation as Bank of Japan France steps to stem the currencys advance . 17 member euro area. In turn, the short upprovide additional hurdles for the swing in the EURUSD may be short-lived.

August 4, 2011

RESEARCH ASSISTANCE
Hedge Equities Ltd.

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RESEARCHED AND PRESENTED BY: Head of Research: Krishnan Thampi K Sr. Fundamental Analyst: Amar Chandramohan Fundamental Analyst: Muhammed Aslam E Sr. Technical Analyst: Anish Chandran C V Sr. Technical Analyst: Kesavamoorthy B Jr. Analyst: Vignesh SBK Futures & Options Analyst: Yunus Ismail Access all our research reports online at www.HedgeEquities.com Disclaimer

The information contained in our report does not constitute an offer to sell securities or the solicitation of an offer to buy, any security. This report is prepared for private circulation only. The information in our report is not intended as financial advice. Hedge Equities Ltd do not undertake the responsibility for any investment decision taken by the readers based on this report. Moreover, none of the research report is intended as a prospectus within the meaning of the applicable laws of any jurisdiction. The information and opinions contained in research reports have been compiled or arrived at from sources believed to be reliable in good faith, but no representation or warranty, express or implied, is made by Hedge Equities Ltd to their accuracy. Moreover, you should be aware of the fact that investments in securities or other financial instruments involve risks. Past results do not guarantee future performance. 5