Market Guidance for 17th August 2006

Dear All ,

First of all sorry that i coundnt post message for some days because of my busy schedule .

Yesterday was one of the most happening trading sessions for the market , It has broken all crucial resistance & continued the rally . This will continue today also since the US markets closed 1% upside & the asian markets are trading strongly . Moreover crude also eased to lower levels after lebanon ceasfire . So there is no reason that could take down the market today .

We can see Nifty trying to test the 3400 levels & Sensex at 11500 levels . But people may try to book profit on higher levels & this could bring down the indices marginally . Any breakout of Nifty below 3310 could see a huge sell off . Like wise in the upside if it holds on above 3381 could see a market rally on for next 2 sessions till 3475 .

Balrampur Chinni Sugar mills has hit its support at 100 levels after a staggering rally from 84 to 118 . The entire sugar pack is trading negative for this week . If Balramchin breaks 100 in the downside today we can see it touching 90 shortly .If it turns positive next target for it is 110 shortly that is a upside of 10% from curent levels .

Value Pick for the year

GV films which has been consolidating its business quite sometime , it has managed to restructure its management & business model . It is entering into new areas of cinema retailing .

This could be a potential multibagger with a one year holding period.

GV Films has approved an increase in the authorized share capital of the company from Rs 2,250 million divided into 2,250 million equity shares of face value of Re 1 each to Rs 20,000 million divided into 2000 million equity shares of Rs 10 each. Further all the existing equity shares of the face value of Re 1 each comprised in the authorized capital of the company, both issued and un-issued, will be consolidated into one equity share of Rs 10 each fully paid up by consolidating every 10 fully paid equity shares of Re 1 each into one equity share of Rs 10 each. The board will issue GDRs or FCCBs upto an amount USS 300 million, subject to necessary provisions and approvals. The board has decided to offer equity shares on preferential basis upto 92,59,25,926 equity shares of the face value of Rs 10 each for an aggregate amount upto Rs 1000 million at the price of Rs 1.08 per share to BNP Paribas and 5 sub-accounts holders of BNP Paribas. Besides, the members will borrow money upto an aggregate amount of Rs 25,000 million (excluding overdraft / cash credit and similar facilities from bankers) of the company, subject to necessary provision and approvals. The board will further issue equity shares, convertible bonds or debentures or warrants to the shareholders for an aggregate amount upto Rs 3000 million, where one warrant is of Rs 1. The members are likely to re-appoint R Gopalan and Manisha Koirala as directors of the company, liable to retire by rotation. The board of the company at its 17th annual general meeting has approved the above mentioned decision which was held on July 11, 2006.

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Regards.,

Muthukumar.K