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com October 13, 2008

Ruthless selling continued across the globe for yet another week. Last week we Market Watch on 10 Oct 2008
mentioned that a break below 3,650 levels on the Nifty could drag it lower to 3,300
levels. The pace of the fall has surprised everyone. While some think that the market
has bottomed out, we believe otherwise.
Momentum indicators of Nifty indicate that the market is yet to make a bottom in the
near term. With sustained selling by FIIs, stocks like ITC, Hindustan Unilever, Bharti
Airtel, HDFC, HDFC Bank, L&T, Reliance Industries and Sun Pharma are likely to
lead the next and probably the last fall.
The structural uptrend that began in May 2003 at Nifty 930 ended with the January
peak of 6,357. Since then, the Nifty has seen a relentless fall. This has resulted in a
retracement of more than 50% gains since the start of the bull run. Analyzing the
monthly chart, a fall to 3,000 levels seems probable. This will be a 61.8% Fibonacci
retracement from the January peak. Historically, the 61.8% Fibonacci retracement
level has played a key role in determining the market's direction, as it typically signals
a turnaround in a trend. History could repeat itself here. But, then again, this time it
could be different since US is facing a once in a century crisis. Overall, at around
3,000 Nifty, the market should be close to the bottom.

Global trends remain weak

The global credit crisis has entered a very
conclusive phase with bankruptcies,
nationalization and acquisition of various
large financial institutions over the last
couple of months. Global central banks
have taken urgent monetary actions (cutting
rates, guaranteeing deposits, etc) to keep
enough liquidity within their respective
economies. We are not sure if these
initiatives would serve their purpose fully
given that apart from home loans and
mortgages, credit card debts, student loans
and auto loans would further intensify the
current crisis. In Europe, we believe that the
pain has just begun with Japan and Asia
likely to follow suit. In our last edition, we
had mentioned that Dow may touch sub- 9,000 levels, which has come true albeit earlier than our
expectation. The daily chart now indicates that major supports have been broken with next support lying at
below 7,440 levels for the index.

Market Watch: 13 October 2008

Volatility will be extremely high. Do not trade. Wise traders stay away in such
situations.

Do NOT try to catch falling knives.

Below chart of Nifty Support Level

Money Mantra Financial Focus -1-

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NSE Nifty: (3513)

The nifty lost strong ground. Seems to have broken the support level. Might fall further.
Particulars Supp 1 Supp 2 Res 1 Res 2 50 DMA 200 DMA
Levels 3,240 2,970 3,760 4,000 4,225 4,775

60 week moving average = Will it offer support?

After last week of sell off - Nifty is again at an important support level - 60 month moving average (5-year average).
Now, 60 month ma does not mean anything perse but if we look in the history - this was the level which became
significant resistance once market slipped below it in 2000-2002. It then took long time for Nifty to recover above it.

In 2001-2002 - once Nifty slipped below 60 month ma, it remained below it for 27 months - a long agonizing painful
period. Are we looking at this scenario in 2008-2009 again - let us hope we are not.

Bottom Line

There is a saying - when market breaks a significant resistance level, it becomes an important support level. Let us
hope that 60 month ma may work as an important support level. The 60 month ma i.e. 3239.

Money Mantra Financial Focus -2-

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we know this sounds ridiculous. The reality is market has shown no signs of bottom and recovery. In such an
environment, second guessing the market is a bad idea. These levels/moving average should be kept in mind only to
assess market behaviour around these levels. One should not show any urgency to put money to work till market
conclusively bottoms out.

Still Indian Market unable to come out from pain so advised to be careful
Money Mantra Research (10 Oct 2008)
Positional Calls for Short Term
Sr. Stock Action Rec Price Stoploss Target Holding Remarket
1. Cipla Sell Below 195 For Members Only 5-6 Days

NOTE: Kindly note that all stop losses in Momentum Calls are on an intra-day basis. MOM = momentum call.

Core Projects and Technology:

Core Projects and Technology has been a strong stock in last 3 months. From bottom of 160,
the stock made a strong upmove to 300 - upmove of 87% in just 2 months (July-August). The
whole of September when market was turbulent and volatile, the stock managed pretty well
and held its head above 200 dma. Technically, the stock exhibited all the signs of a bullish

Money Mantra Financial Focus -3-

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stock. But one day - Friday changed it all. From levels of 250, stock tumbled to 144 - a severe
drop of 43% in a single session.

The Core Projects and Technologies stock plunged 44% on Friday, amid market talk that shares pledged
by some high net worth individuals were offloaded after margin calls were unmet. Brokers said HNIs had
borrowed money from a couple of non-banking financial companies (NBFCs) by pledging these shares.
Close to 4 million shares changed hands on both exchanges combined, nearly 5% of its equity
base....Economic Times

Alert: In bad times, one should avoid mid-caps. The absence of liquidity (supply-demand mismatch) may create
severe price destruction. These are unusual times, and leveraged FIIs/investors are bailing out of market - and for
them exit is more important than price/value.

Money Mantra Financial Focus -4-

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Intraday calls Performance : 10 Oct 2008

Pre Market Alert :
Opening Trade very Critical .US, Asian mkt crash. Just stay away & take a fresh plunge only
when the signs get better Wait for our SMS till then away from Market.

Money Mantra Create History in 1000 point Down Market.

We rec in Newsletter to Buy Ranbaxy above 271
Check status of call
Open : 260 after Bounce 271 Touch High 295+
In Volatile Market get Target of 295 up 4%
That is Money Mantra
(Ranbaxy Call and news we publish Free on website also)
Date Script Type Rec Target Stoploss Remark
Price
10-Oct-08 Buy Axis Bank Fut 595 620+ 580 High 644 Achieved
10-Oct-08 Buy SBI Fut 1285 1320 1265 High 1361+ Achieved
10-Oct-08 Sell ICICI Fut 408 380/365 422 Low 328 Achieved
10-Oct-08 Buy Maruti EQ 682 692 675 High 686 Stoploss Triggered
10-Oct-08 Buy Reliance EQ 1575 1586 1560 High 1588 Achieved
Today on 10 Oct 2008 we allowed to trade only High Risky Members. We avoid to trade in Future only Risky
Trade in Future market.
Delivery Delight : 07 Oct 2008 Short Term Check Below Result.
08-Oct-08 Buy Axis Bank cash 642 ??? ??? Achieved after rec 686
Remark: Exit 635 Level on 10 Oct 2008
07-Oct-08 Buy NTPC cash 175 ??? ??? Short Term delivery
Remark: Achieved after rec 178+ close at 177+ in Most volatile market stock strong.
Profit in Positional call
06-Oct-08 Sell Pun Lloyd Fut 250 235/212 262 Profit: 28,500 Rs
Remark : On 08 oct 2008 collapsed to 202 Achieved Both Target Profit: 28,500 Rs
BTST/STBT CALLS : Rec on 08 Oct 2008 Result on 10 Oct 2008
Date Script Type Rec Target Remark Profit/Loss
08-Oct-08 PunjLLoyd Fut 228 238/??? High after rec 241 Profit 7,500 Rs
08-Oct-08 Maruti EQ 680 695 High after rec 698 Achieved Target
08-Oct-08 Relinfra Fut 640 Stop Loss Trigged Loss: 7,500

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Disclaimer: The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the
securities mentioned. Readers using the information contained herein are solely responsible for their actions. The
information and views contained herein are believed to be reliable but no responsibility or liability is accepted for
errors of fact or opinion. Editors may or may not have trading or investment positions in the securities mentioned
herein.

Money Mantra Financial Focus -5-