Calls for today

**Areva T&D plans to aggressively expand capacity over the next two years.
The company is setting up a large facility (around 10,000MVA) to manufacture
power transformers of up to 1,200kV and other distribution and
medium-voltage transformers at Baroda with an investment of Rs5bn. Areva T&D
will invest Rs2bn in Hosur and Chennai to set up capacities for instrument
transformers and circuit breakers. At existing facilities,
debottlenecking initiatives are currently underway in order to enhance
production.

Areva has generated strong revenue growth over the last three years, and as
a result most of its plants are running at high utilisation rates. The
company's expansion plans will help it sustain high growth rates as it takes
advantage of large-scale T&D infrastructure projects in India. Areva
historically has been a net cash company. However, we believe that its net
debt equity ratio will increase to 37% in CY08 in order to finance the
expansion plan.

The company is a technology leader in terms of introducing new products to
India. The country's first 765kV sub-station project was completed by Areva
T&D for the NTPC's Sipat project. The company also accounts for 20% of
high-voltage direct current (HVDC) inter-regional linkages. At the new
Baroda facility, Areva plans to manufacture ultrahigh-voltage transformers.
Apart from supplying high-end products to the domestic market, the new
manufacturing units will also cater to growing exports for Areva.

Areva T&D, France has just inked its largest contract, with a €500m order
from Kahramaa, Qatar in January, 2008. The new facility for GIS in Chennai
will supply the €86m worth of products for this particular project. With the
commissioning of planned world-class capacities we expect to see more orders
from the international markets.

**Market Technicals for the week ending 11th July

Indian Markets Technicals

Both Nifty & Sensex has become a bit weak at these levels. The trend for
fresh buying positions will continue if the markets continue to trade beyond
4009 & 13382. There are chances that Nifty may move 321 - 322 points up &
Sensex may move 1120 - 1121 points up. There are chances of a weekly
movement of around 625 points & 2095 points in Nifty & Sensex respectively.

If the markets sustain above 4169 & 13943 levels, then they will try to
touch 4323 & 14432 levels.

On the other hand, market has a weak support at 3855 & 12893 because the
markets may further fall down to 3694 & 12333 levels from this point due to
panic selling & profit booking which can act as a strong support.

** US Markets Technicals

Both Nasdaq & Dow has become a bit weak at these levels. The trend for fresh
buying positions will continue if the markets continue to trade beyond 2266
& 11294. There are chances that Nasdaq may move 76 - 77 points down & Dow
may move 274 - 275 points down. There are chances of a weekly movement of
around 195 points & 560 points in Nasdaq & Dow respectively.

If the markets sustain above 2304 & 11431 levels, then they will try to
touch 2363 & 11574 levels.

On the other hand, market has a weak support at 2206 & 11151 because the
markets may further fall down to 2168 & 11014 levels from this point due to
panic selling & profit booking which can act as a strong support.

** ****** **Intraday Market Technicals for 10th July

Both Nifty & Sensex has become very strong at these levels. The trend for
fresh buying positions will continue if the markets continue to trade beyond
4105 & 13848. There are chances that Nifty & Sensex may open 51 - 52 points
down & 116 - 117 points down. There are chances of an intraday movement of
around 225 points & 530 points in Nifty & Sensex respectively.

If the markets sustain above 4220 & 14114 levels, then they will try to
touch 4284 & 14265 levels.

On the other hand, market has a weak support at 4042 & 13697 because the
markets may further fall down to 3927 & 13430 levels from this point due to
panic selling & profit booking which can act as a strong support.

****Derivatives Calls

Futures

Buy Nifty July' 08 Futures above 4150.00 levels with a target of 4252.00 &
with a stoploss/ average below 4099.00.

Buy APIL July' 08 Futures above 435.00 levels with a target of 516.00 & with
a stoploss/ average below 394.00.

**Options

Buy Nifty 4000.00 PE July' 08 with a target of 133.00 & with a strict
stoploss below 81.00.

Buy HDIL 500.00 CA July' 08 with a target of 36.00 & with a strict stoploss
below 5.00.
**
**Long Term Delivery Calls

We strongly recommend a buy on Taneja Aerospace at current levels with a
long-term target of 139.00.

We strongly recommend a buy on Steel Strips & Wheels at current levels with
a long-term target of 243.00.

**We strongly recommend a buy on HDFC at current levels with a long-term
target of 2984.00.**
**
Medium Term Delivery Calls

Buy KS Oils if it sustains above 53.00 levels with a medium-term target of
81.00 & with a stoploss/ average below 39.00.

Short Term Delivery Calls

**Buy Cipla if it sustains above 212.00 levels with a short-term target of
225.00 & with a stoploss/ average below 205.00.
**
**Buy Century Textiles if it sustains above 523.00 levels with a short-term
target of 568.00 & with a stoploss/ average below 500.00.**