The Sensex surged over 400 points and the Nifty rallied above 5,400 on short covering in metal stocks due to upbeat China manufacturing data, recovering from a 4-day decline. Metals stocks rose over 8% on optimism from China and a Nomura report recommending several metal stocks. The rupee fell to another record low against the dollar, breaching 65.

1. Sensex surges 400 points on Metals rally; INR breaches 65.5/USD
Market Summary
22-Aug-2013
Following a 4-day carnage, Indian indices started on a cautious note amidst subdued global cues and Rupee knocking
down 65 levels against USD. Later in noon trades, key benchmarks shot up in excess of 2% on short covering in metal
stocks. Sensex spiked over 400 points and Nifty rallied above 5400 at close. Among BSE sectorials, Metal index
shined over 8% on the back of upbeat China manufacturing PMI data.
On global front, US and Asian indices witnessed a soft session whereas European indices were trading in positive
terrain.
Back home, domestic currency plunged to yet another record low for the fifth straight session breaching 65 mark at Rs
65.56 to a US dollar after the Federal Reserve minutes hinted for stimulus tapering starting as early as next month.
Against GBP, INR has breached 102 mark which again is its life time low.
On macro front, Foreign Direct Investment (FDI) jumped 16% to $1.44 billion in June as against $1.24 billion during the
same period of previous year. (Read More)
Brokerage firm Nomura is overweight on Metals index and found the valuations of Indian metal stocks attractive from
investment perspective. It has maintained a “buy” rating on Hindalco (up 10.93%), Tata Steel (up 10.22%) and SAIL
(up 7.14%) with target price of Rs 133, Rs 443 and Rs 103 respectively.
Sesa Goa surged 13.10% on BSE as the stock will be included in BSE benchmark Sensex fromAugust 27, 2013. The
stock will replace Sterlite Industries due to merger of the companies.
Pharma major, Sun Pharma jumped 4.06% on BSE after plunging nearly 12% in previous four sessions. Research
house Morgan Stanley is overweight on the stock with a target price of Rs 619.
JBF industries soared 13.18% on BSE after its board nodded for buy-back of equity shares of Rs 10 each of the
Company from the existing equity shareholders of the Company. (Read More)
Federal Bank tumbled 3.35% and hit fresh yearly low at Rs 271.60 on BSE in the otherwise positive market after the
bank revised interest rates on resident and non-resident Indian (NRI) deposits to 8.5% and 9% respectively.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 1313 and 1021 respectively,
while 143 scrips remained unmoved.
The S&P BSE Sensex ended at 18312.94, up 407.03 points or 2.27%. The 30 share index touched a high and a low
of 18349.82 and 17759.59 respectively. 28 stocks advanced against 2 declining ones on the benchmark index.
The CNX Nifty gained 105.90 points or 2.00% to settle at 5408.45. The index touched high and low of 5418.95 and
5254.05 respectively. 44 stocks advanced against 6 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 5310.17 and gained 0.69% while S&P BSE Small-cap index jumped up by
0.54% to 5208.86.
The broader S&P BSE 500 index increased to 6617.08 (up 1.84%) and CNX 500 index rose to 4136.10 (up 1.64%).
The volatility as denoted by INDIA VIX gained 3.45% at 29.06 from its previous close of 28.09 on Wednesday.
Sectors in action
On the BSE Sectorial front, Metals (up 8.23%), Oil & Gas (up 3.57%) and Healthcare (up 2.64%) were the top gainers.
Real Estate (down 0.69%) was the top loser.
The Angels and the Devils
Hindalco Industries Ltd (up 10.93%), Sterlite Industries (India) Ltd (up 10.42%), Tata Steel Ltd (up 10.22%), Oil and
Natural Gas Corporation Ltd (up 7.28%) and Bharti Airtel Ltd (up 4.97%) were the top gainers on the Sensex.

2. Housing Development Finance Corporation Ltd (down 1.01%) and HDFC Bank (down 0.26%) were the top losers on
the Sensex.
Benchmark Drivers
ITC Ltd (50.58 points), Reliance Industries Ltd (46.11 points), Tata Consultancy Services Ltd (43.23 points), Infosys
Ltd (40.29 points) and Oil and Natural Gas Corporation Ltd (36.85 points) were the major Sensex drivers today.
On the other end Reliance Industries Ltd (11.99 points), ITC Ltd (11.78 points), Tata Consultancy Services Ltd (10.77
points), Oil and Natural Gas Corporation Ltd (9.73 points) and Infosys Ltd (9.00 points) were the major Nifty movers
today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 5360 for next session. The next support is at 5302 and on upside it has a resistance at
5467 levels.
CNX Nifty
Eff. Date S 3 S 2 S 1 PIVOT R 1 R 2 R 3 Actual Close
23-Aug-2013 5137 5196 5302 5360 5467 5525 5632 -
22-Aug-2013 4977 5123 5213 5358 5448 5594 5684 5408.45
21-Aug-2013 5221 5264 5333 5375 5444 5487 5556 5302.55
S&P BSE Sensex has a pivot at 18141 with first level of support and resistance at 17932 and 18522 respectively.
S&P BSE Sensex
Eff. Date S 3 S 2 S 1 PIVOT R 1 R 2 R 3 Actual Close
23-Aug-2013 17342 17551 17932 18141 18522 18731 19112 -
22-Aug-2013 16859 17333 17620 18094 18380 18854 19141 18312.94
21-Aug-2013 17707 17839 18043 18174 18378 18510 18713 17905.91
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