MOSt Market Action

Positional Trading Ideas

Scrip Name

Bharti Airtel

Recommendation

Buy

MBP

400

SL

389

29th August, 2011

TGT

435

Retiriate Buy Bharti Airtel 399 MBP 400 SL 389 TGT 435

The stock has shown strength by crossing the 50dma after bottoming out around the 390 levels. The 14 day RSI is moving

out of the oversold zone. The stock is expected to move to the 435 levels around the August high with the stop loss at 389.

Investment Ideas

INFOSYS

Buy

CMP

2203

MBP

2210

Ø We attended Infosys' Analyst Day, and believe the IT industry's long-term value proposition remains intact, short-term

headwinds notwithstanding. Our key takeaways:

Ø Infosys continues to witness decisions and closure of deals on short term projects. Macro, however, is limiting confidence

on committing to large spends.Infosys is prepared to cater to the next wave of growth in the industry. With the restructuring

process behind, focus will be fully channelised on the clients. To be more relevant to clients: The company will look to be

more relevant to the clients in trying to help them build tomorrow’s enterprise, by focusing on themes around which the

clients will seek growth: [1] Emerging markets, [2] Sustainability, [3] Mobility, [4] Healthcare and [5] Social Networking.

Ø Focus on Consulting and non-linear growth: The company has the highest share of revenues in Consulting and SI segment

(30%), and that will remain an area of focus to ensure the quality of revenue growth. Non-linear growth will be another thrust

area, which is anticipated to change the industry landscape in 3-5 years (Technologies like Cloud, Platform-based solutions).

Ø The proportion of locals at onsite is targeted to go up to 50%, which could impact the margins by ~100bp. Pricing

environment stable.

Ø Betting on shared platforms, transaction and outcome based pricing models to bring about the next wave of

disruptive change.

Ø Valuation and view: We are maintaining our estimates for now and will wait for signs of weakness on the

ground leading to a cut in budgets before turningincrementally negative. A slowdown in deal signings in the

last quarter of the calendar year will put FY13 estimates at risk. Maintain Buy with a target price of

INR 3,176 based on 20x FY13E EPS

Market Snapshot

Short Term Trend

(10 DMA)

Intermediate Term Trend

(20 DMA)

NIFTY

Down

Trend Reversal

Sensex

NIFTY

Down

Trend Reversal

Sensex

16987

16414

5108

4928

Motilal Oswal Securities Ltd., Palm Spring Centre, 2nd floor, Palm Court Complex, New Link Road, Malad (W), Mumbai - 64.

MOSt Market Action

Intra Day Support/Resistance Levels

Prev

Close

Nifty

Nifty Futures (LTP)

Dow

11285

135.00

4840

4840

Nasdaq

Close

4748

4748

2480

Change

-92

-92

60.00

% Chng

-1.90%

-1.91%

S2

4628

4615

S1

4688

4681

-0.60

29th August, 2011

R1

4840

4851

INR Curr

R2

4932

4954

46

-0.04

B.Crude$

$110.60

The Nifty sell off continued for the 3rd day with the Nifty losing about 100 points for the week. The immediate resistance is at

the 2 day high at 4915 levels.. The immediate support is at the 4675 levels which was the level seen in Feb 2010. The 14 day

RSI at 24 is still in oversold territory, while the 14 week RSI is at 28. The Parabolic SAR is indicating a downtrend with

reversal at 4962.

Market Updates

Ø Expect market to open with positve bias. US markets closed over 1% and Asian markets have opened positvely by 0.5%

to 1%. Brent Crude is trading flat at $110.60/bbl. Singapore Nifty is up by 52 points over 1%.

Ø According to media reports, Supreme Court (SC) has extended the iron ore mining ban to Chitradurga and Tumkur, the

other 2 mining zones in Karnataka. Mining in Bellary was already banned on 29th July to prevent wide spread damage to

environment and curb illegal mining. On August 5, NMDC was allowed to operate its 2 mines in Bellary with maximum

monthly production rate of 1mtpa. With the today’s decision of SC, iron ore mining by private players has been completely

banned in Karnataka.As a result, we expect steel production of JSW Steel and iron ore deliveries of Sesa Goa to get

affected. Before the ban, JSW Steel was operating its furnaces at 80% capacity utilization with critically low level of iron ore

stocks at plant, while sourcing 70% of iron ore from other states and NMDC mines in Bellary.

Ø FY12 KG-D6 production guidance at 45.2mmscmd: KG-D6 production averaged 46.9mmscmd in July-11 v/s 48.6

mmscmd in 1QFY12. Niko guides for FY12 average KG-D6 production at 45.2mmscmd (v/s our assumption of

48mmscmd). If we were to factor Niko’s guidance, then our FY12 EPS of INR75.3 (adj. for treasury shares) will

be downgraded by 0.8%. Niko indicated that the decline in the production at KG-D6 is expected to continue till

workover wells are completed and/or additional wells are tied-in. Development drilling in KG-D6 block has

recommenced in July 11 as per Niko.

Motilal Oswal Securities Ltd., Palm Spring Centre, 2nd floor, Palm Court Complex, New Link Road, Malad (W), Mumbai - 64.

MOSt Market Action

Pivot Levels

29th August, 2011

For Day Traders -

Please Watch for Trading Calls Flashed on the Trading Terminal / Contact your MOSL Dealer or Advisor

Privous

Close

Nifty

Nifty Future

(LTP)

Sensex

Bank Nifty

CNX IT

SBIN

INFY

RELIANCE

ICICIBANK

LT

BHARTIARTL

AXISBANK

TATAMOTORS

TATASTEEL

4840

4840

16146

9177

5097

1960

2183

754

834

1546

402

1019

714

443

4839

4855

16156

9186

5097

1964

2187

751

833

1552

400

1026

715

442

4872

4888

16256

9218

5189

1972

2253

756

837

1569

408

1032

732

445

4720

4718

15766

8918

5052

1867

2183

712

814

1525

395

992

694

418

4748

4748

15849

8975

5089

1892

2208

722

819

1525

400

999

698

421

-92

-92

-298

-203

-8

-68

25

-32

-15

-21

-2

-20

-16

-22

4628

4615

15466

8737

4973

1805

2144

686

800

1496

388

968

669

402

4688

4681

15657

8856

5031

1848

2176

704

810

1511

394

983

684

411

4780

4785

15957

9037

5110

1910

2215

730

823

1540

401

1008

708

428

4840

4851

16148

9156

5168

1954

2246

748

833

1555

407

1023

722

438

4932

4954

16448

9336

5247

2016

2285

774

846

1584

414

1048

747

455

Open

High

Low

Close

Change

S2

S1

PP

R1

R2

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Motilal Oswal Securities Ltd., Palm Spring Centre, 2nd floor, Palm Court Complex, New Link Road, Malad (W), Mumbai - 64.