S TO C K M A R K ET R EP O R T

C O M P R EH EN S IO N

Stock M arket Trend

When a market sustains itself for a

certain period of time, it is called a

market trend

M arket Trends
Bullish

Reasons behind Bullish Trend

Large scale Buying
Bull Support
Bear Covering/Short Covering: The bear sells the

stocks or shares when the price is high, expecting it

to fall. If it doesn`t fall by the date of delivery, then
he buys them even at loss.
Replacement Buying: Bull keeps on buying the same
number of shares of the same company as he has
sold to earn more because the prices are still on a
rise
Favourable Upcountry advice: Information from the
other parts of the country and from the other markets

 Political stability
Encourging Economic News
Investment Incentives
Fall I Bank Rate

Reasons for Bearish Trend:

Large Scale Selling
Bear Support
Bull Unloading/Liquidation: Bull

Unloading is selling of shares by the

bulls even at a loss, when the prices
fail to go up according to the
expectations of the bull.
Political Instability
Unfavourable Economic News

 Investment Disincentives
Heavy Taxation

Stock M arket Indices

General movement of the market is

measured by indices representation

the entire market or important
segment there of.

Stock M arket Indices:

Preference
Bonus
Deferred
Equity
Shares
Shares
Shares

Types ofSecurities

Listed Securities
Cleared

Prices ofSecurities
* Par Value:
Value stated in the memorandum and written
on the scrip (Unregistered Securities)
* Issue Price:
At which share is issued, usually higher than
par
* Market Value: Price at which share is traded
Above Par: Higher than face value or par
value

*Below Par:
Lower than face value or par value

Com prehension ofthe stock

M arket
MUMBAI: The Bombay Stock Exchange's

Sensex was witnessing a profit booking

session after a rally in last session. According
to analysts, the market uncertainty will
continue in the near-term and investors will
keenly await developments in European Union
summit for direction.
"At ~13x, valuations are below historical avg.
and appear reasonable enough to hold but a
long trade on mere valuations still not
compelling. Inflation continues to remain at
9.5%, although slowing demand and a high
base point to moderation in the near- to

 Global macro concerns remain with good news (strong US

data) regularly balancing the bad (another non-starter EU

revival plan). Even if inflation does recede from here, and we
end up being at the peak of the rate cycle, anything but a
gradual dip in rates going forward would only be in response
to a severe weakness in the economy, or a worsening turn in
the global markets.
We would not expect a cut in rates before the end of 1QFY13
under normal circumstances. This means that the investment
cycle, already delayed by a year, is unlikely to kick-start in a
hurry unless the Govt. fast-forwards its projects. Thus, the
significant level of market uncertainty is unlikely to recede in
the near-term, and the markets are likely to swing to the
news flow," said Religare Securities report.

 At 10 am; the Sensex was at 16747.33, down 99.50 points or 0.59

per cent. The 30-share index touched intraday low of 16739.05 and
high of 16845.87.
The National Stock Exchange's Nifty was at 5023.55, down 26.60
points or 0.53 per cent. The broader index touched a high of
5049.70 and low of 5017.80 in trade so far.
BSE Midcap Index was down 0.01 per cent and BSE Smallcap Index
edged 0.07per cent higher.
Amongst the sectoral indices, BSE Metal Index was down 0.81 per
cent, BSE Bankex declined 0.63 per cent and BSE IT Index was 0.63
per cent lower. BSE Power Index moved 0.24 per cent higher and
BSE Realty Index gained 0.22 per cent.

 Tata Steel (-1.89%), Wipro (-1.61%), Hindalco Industries (-

1.52%), Sterlite Industries (-1.51%) and ICICI Bank (1.26%) were the major Sensex losers.
Jaiprakash Associates (1.41%), Bharti Airtel (1.27%), BHEL
(1.01%), DLF (0.78%) and Mahindra & Mahindra (0.66%)
were the top index performers.
Market breadth was flat on the BSE with 831 gainers
against 827 losers.
Meanwhile, the Asian markets were witnessing a mixed
session. Nikkei 225 was up 0.44 per cent, Shanghai
Composite fell 0.63 per cent and Hang Seng moved 0.39
per cent higher.

Term s ofthe Passage

Profit-booking is encashing or realising the profit or gain in a share

by selling it.
The Nikkei, is a stock market index for the Tokyo Stock Exchange

(TSE). It has been calculated daily by the Nihon Keizai Shimbun

(Nikkei) newspaper since 1950.
The Hang Seng Index (is a freefloat-adjusted market

capitalization-weighted stock market index in Hong Kong. It is used

to record and monitor daily changes of the largest companies of the
Hong Kong stock market and is the main indicator of the overall
market performance in Hong Kong. These 45 constituent companies
represent about 60% of capitalization of the Hong Kong Stock
Exchange.

 The SSE Composite Index is an index of all stocks (A

shares and B shares) that are traded at the

Shanghai Stock Exchange.
Market capitalization (often market cap) is a

measurement of the value of the voting ownership interest

that shareholders hold in a business enterprise. It is equal to
the share price times the number of shares outstanding
(shares that have been authorized, issued, and purchased
by investors) of a publicly traded company. As outstanding
stock is bought and sold in public markets, capitalization
could be used as a proxy for the public opinion of a
company's net worth and is a determining factor in some
forms of stock valuation. Preferred shares are not included
into the calculation.

 Indian markets closed on positive note for a

third straight day on Friday as European

markets shot up on the news that German
Chancellor Angela Merkel defended the euro,
which she said was stronger than Germany's
former deutschemark, but with some riders
and investors banked upon the anticipation
the US jobs data will be good tonight. The
markets, which was dull throughout day
suddenly shot up, as European shares opened
strong on the improved sentiments. Ahead of
the European Union summit on Dec. 9,
German Chancellor Angela Merkel told the

 All sectoral indices closed on positive note with bank,

power, metal and IT stocks were major gainers. Tata

Power rose 5% as the company's shares gained sharply
in the late session after the investors tried for bottom
fishing, however the company outlook was downgraded
by S&P from positive to stable. Kingfisher Airlines
reversed early losses and closed 3.6% higher after its
Chairman Vijay Mallya said that he was still in talks with
an Indian investor to raise funds. While Hathway Cables
and Den Networks rose 7.6% and 3.4%, respectively,
after a newspaper report said the government could
increase foreign direct investment limit in the
distribution platforms to 74% from 49% currently.

 - Market breadth was strong at as investors

bought large cap stocks. FIIs bought

equities worth Rs.5.96bn while domestic
institutions sold equities of Rs.1.07bn.
- Asian markets are mostly up as hopes rose
for progress in curbing Europe's debt crisis.
- We expect a positive opening for the
Indian markets, following the cues from the
Asian markets. However, investors may
take some profits from the past rally.

 1. Sentiment: The feeling or tone of a

market (i.e. crowd psychology). It is shown by

the activity and price movement of securities.
2. Foreign Institutional Investor - FII
An investor or investment fundthatis from or
registered in a country outside of the one in
which it is currentlyinvesting. Institutional
investorsinclude hedge funds, insurance
companies, pension funds and mutual funds.

Term s:
3. Foreign Direct Investment FDI
An investment abroad, usually where the company being invested in is

controlled by the foreign corporation.

4. Hedge Fund
An aggressively managed portfolio of investmentsthat uses advanced
investment strategies such as leveraged,long, short and
derivativepositions inboth domestic and international marketswith the
goal of generatinghigh returns (either in an absolute sense or over a
specified market benchmark).
Legally, hedge funds are most often set up as private investment
partnerships that areopen to a limited number of investors and require a
very largeinitialminimum investment.Investments inhedge funds
areilliquid as they often require investors keep their money in the fund
for at least one year.

Sensex near day's low ; Tata Steel,ICICIB ank,W ipro

dow n

MUMBAI: The Bombay Stock Exchange's Sensex continued

to remain under pressure as wary traders booked profits

ahead after a sharp rally and ahead of European Union
summit. Lack of cues from Asian peers also kept the bulls
under check.
At 11:15 am; the Sensex was at 16720.37, down 126.46
points or 0.75 per cent. The 30-share index touched
intraday low of 16711.08 and high of 16845.87.
The National Stock Exchange's Nifty was at 5008.10, down
42.05 points or 0.83 per cent. The broader index touched a
high of 5049.70 and low of 5006.70 in trade so far.

 "The short term trend has turned very strong as

after a long time of consolidation. Nifty future has

managed to close above its 50-day EMA of 5028
which is a good sign. This rally could further extend
to (5240 / 17400) levels if we hold above the first
resistance level of 5120. Strong support is seen at
4980 and weakness could be seen only below
4940, till then any decline in the market is a buying
opportunity," said Nirmal Bang report.
BSE Midcap Index was up 0.07 per cent and BSE
Smallcap Index edged 0.17 per cent higher.

 Amongst the sectoral indices, BSE Metal Index was down 1.19

per cent, BSE Bankex declined 0.80 per cent and BSE FMCG
Index was 0.69 per cent lower. BSE Power Index moved 0.42
per cent higher and BSE Capital Goods Index gained 0.17 per
cent.
Tata Steel (-2.11%), Hindalco Industries (-1.77%), Sterlite
Industries (-1.55%), ICICI Bank (-1.52%) and Wipro (-1.45%)
were the major Sensex losers.
BHEL (1.65%), Jaiprakash Associates (0.74%), DLF (0.72%),
NTPC (0.52%) and Maruti Suzuki (0.36%) were the top index
performers.

 DLF has received the first tranche of Rs 200 crore

from IDFC, which is in the process of acquiring 100

per cent shareholding in a JV company of DLF called
Galaxy Mercantile. The JV company is the owner of a
1.3 million sq ft IT Park in the Delhi suburb of Noida.
Market breadth was flat on the BSE with 1153
gainers against 1059 losers.
Meanwhile, the Asian markets were witnessing a
mixed session. Nikkei 225 was up 0.52 per cent,
Shanghai Composite fell 0.67 per cent and Hang
Seng moved 0.34 per cent higher.

Term s:
Exponential Moving Average - EMA

A type of moving average that is similar to a simple moving

average, except that more weight is given to the latest
data. The exponential moving average is also known as
"exponentially weighted moving average".
Mid Cap

A companywith a market capitalization between $2 and

$10 billion, which is calculated by multiplying the number
of a company''''s shares outstanding by its stock price. Mid
cap is an abbreviation for the term "middle capitalization".

 Intraday

Another way of saying "within the day". Intraday price

movements are particularly important to short-term
traders looking to make many trades over the course of
a single trading session.The term intraday is
occasionallyused to describe securitiesthat trade on
the markets during regular business hours.
Small Cap
Refers to stocks with a relatively small market
capitalization. The definition of small cap can vary
among brokerages, but generally it is a company with a
market capitalization of between $300 millionand $2
billion.

 5. Large Cap - Big Cap

A term used by the investment community to refer to

companies with a market capitalization value of more
than $10 billion.Largecapis an abbreviation of the term
"large market capitalization". Market capitalization is
calculated by multiplying the number of a company's
shares outstanding by its stock price per share.
6. Market Capitalization
The total dollar market value of all of a company's
outstanding shares.Market capitalizationis calculated by
multiplying a company's sharesoutstanding bythe
current market price of one share. The investment
communityuses this figure todetermining a company's
size, as opposed to sales or total asset figures.

 7. Credit Tranche
A system used by the International Monetary Fund

(IMF) to governits lending activitiesto member

countries. When a member nation applies for a
loan to help with balance of payment difficulties,
the IMF will disperse the loan in a series of credit
tranches. Tranches are a portion of the loan that is
released upon the member country fulfilling
conditions or requirements set forth by the IMF.
Read more: http://www.investopedia.com/terms/

Sensex volatile; realty,

capital goods, banks dow n

MUMBAI: The Bombay Stock Exchange's Sensex,

witnessing a volatile session, slipped back in the negative

terrain as profit booking picked up near resistance levels.
Negative European markets also kept the bulls under
check. According to dealers, the market trend is still
bearish and rallies may fizzle out at higher levels.
Meanwhile, the Gross Domestic Growth for second
quarter ended September was in line with forecast.
Q2FY12 GDP grew at 6.9 per cent vs 7.7 per cent in Q1
and against expectations of 6.8 per cent.

 At 2:30 pm; the Sensex was at 15951.53, down 56.81

points or 0.35 per cent. The 30-share index touched

intraday low of 15849.57 and high of 16179.56.
The National Stock Exchange's Nifty was at 4784.26,
down 20.85 points or 0.43 per cent. The broader
index touched a high of 4851.55 and low of 4754.80
in trade so far.
BSE Midcap Index was down 1.06 per cent and BSE
Smallcap Index slipped 0.86 per cent.

 Amongst the sectoral indices, BSE Realty Index

was down 1.72 per cent. BSE Capital Goods Index

fell 1.52 per cent, BSE Bankex was down 1.27 per
cent and BSE Auto Index declined 1.21 per cent.
BSE FMCG Index was up 0.39 per cent and BSE
Oil&gas Index moved 0.31 per cent higher
Tata Motors (-4%), ICICI Bank (-3.16%), Sterlite
Industries (-2.88%), Jaiprakash Associates (2.06%), and Mahindra & Mahindra (-1.52%) were
amongst the major Sensex losers.

 Sun Pharmaceuticals (1.80%), Bajaj Auto (1.66%),

ONGC (1.63%), Tata Consultancy Services (1.14%)

and Hindustan Unilever (1.07%) were the top
Sensex gainers.
Market breadth was negative on the BSE with 996
gainers against 1608 losers.
Meanwhile, the European markets have opened in
the red. FTSE 100 was down 0.68 per cent, DAX fell
0.94 per cent and CAC 40 slipped 0.61 per cent.

Term s:
1.DAX

A stock index that represents 30 of the largest and most

liquid German companies that trade on the Frankfurt
Exchange. The prices used to calculate the DAX Index
comethrough Xetra, anelectronic trading system.A freefloat methodology is used to calculate the index
weightings along with a measure of average trading
volume.

2. FTSE
A company that specializes in index calculation. Although
not part of a stock exchange, co-owners include the
London Stock Exchange and the Financial Times.

 3. Consumer Advisory Council - CAC

A legislative body established by Congress in 1976.

The Consumer Advisory Councilconsists of 30
members who advise the Federal Reserve Board on
issues involving consumer financial services such as
the availability of credit and other financial issues
that affect consumers.Members of the council serve
a three-year term that is spread out over time.The
CACs responsibility is to advise the board on issues
relating to the Consumer Credit Protection Act.
Council meetings are held three times a year in
Washington, D.C., and are open to the public.

 1. Sentiment: The feeling or tone of a

market (i.e. crowd psychology). It is shown by

the activity and price movement of securities.
2. Foreign Institutional Investor - FII
An investor or investment fundthatis from or
registered in a country outside of the one in
which it is currentlyinvesting. Institutional
investorsinclude hedge funds, insurance
companies, pension funds and mutual funds.

 Bourse

A market organized for the

purpose of buying and selling
securities, commodities, options
and other investments. A bourse is
more commonly known as a
stockexchange. The word
"bourse" is based on the house,
belonging toVan der Burse,where
merchants would gather and trade

 Points

1. A 1% change in the face value of a bond or a

debenture.
2. In futures contracts, a price change of one onehundredth, or1% of one cent.
3. A$1 price change in the value of common stock.
4. In real estate mortgages, the initial fee charged by
the lender, with each point being equal to 1% of the
amount of the loan. It can also refer to each percentage
difference between a mortgage's interest rate and the
prime interest rate.

 Blue Chip Shares:

Anationally recognized,well-established and

financially sound company. Blue chips generally

sell high-quality,widely accepted products and
services. Blue chip companies are known to
weather downturns and operate profitably in
the face of adverse economic conditions, which
helps to contribute to their long record of stable
and reliablegrowth.