Market Guidance for 3rd August 2006

Dear All,

Yesterday was a complete surprise for all, as markets closed in green against expectations . The bullishness will prevail today as all global cues are favourable to a upper trend. The Sensex will test its major resistance at 11000 levels & likeiwise for Nifty at 3200 levels. Should not forget that indices has drizzled down thrice after hitting this resistance . So caution prevails on all sides.

Tech Mahindra's IPO opened yesterday. Its a subsidary of M&M , who is going to sell a considerable stake in this IPO,which will add Rs.180 crores to its balance sheet in this quarter. M&M has given a strong results & continues with a buy recommendation from all the research houses. Today buy M&M above 596 with a target of 609/622.

Regards.,

Muthukumar.K