India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Wednesday, May 23, 2007
Market Close: Profit taking now visible !
Modest start with a gap of 37 points in the green and moved on to touch a high of 14500 levels but could not sustain the gains as profit booking engulfed to push Indices into negative zone. Selling pressure was witnessed in selected sectors like Banking, Auto and FMCG. Market tried to recover wth smart rally by Reliance Industries after mid session led to a positive turnaround in market. Final trading hour had a fair amount of volatility with alternate bouts of buying and selling restricting the movement of the indices within a narrow range but selling pressure intensified in the market which pushed the indices to close down. Midcap and Smallcap indices closed in red inline with the frontline indices giving market a negative breadth. Not an encouraging support from the gloabl markets as most of the Asian markets ended marginally up, Hang Seng slipped by 45 points to ended in red. Europe in trading in green but ranged.
Sensex ended down 90 points at 14363. Weighing on the Sensex were losses in Tata Motors (707.95,-3 percent), ITC (166.35,-3 percent), RCVL (510.5,-2 percent), Ranbaxy (389.5,-2 percent) and Maruti (815.1,-2 percent). Losses were restricted by gains in TISCO (658.9,+5 percent), Rel Energy (570.45,+4 percent), HLL (198.45,+2 percent), BHEL (2717.7,+2 percent) and Hero Honda (693.7,+1 percent).
Punjab National Bank (PNB) reported a 17.5 % decline in net profit at Rs 238 crore for the fourth quarter ending March 31 when compared to Rs 288.67 Cr for the same period last year. The total income of the bank grew 27% to Rs 3,712 Cr for the quarter ended March 31 from Rs 2927 Cr for the corresponding quarter a year ago. The board of directors declared a 60 % final dividend at Rs 6 on shares of Rs 10 each for the financial year 2006-07 which is subject to shareholders approval. The country's second largest public sector lender has reported a net profit of Rs 1,540 Cr for the year ended March 31, as against Rs 1,439 Cr for the year ended march 31, 2006 and the total income during the period under consideration increased to Rs 12,579 Cr from Rs 10,857 Cr. The results were below market expectation. The stock ended marginally down by 1%. There was a smart recovery on indication that the Government holding would be reduced to below 51%.
India's Largest steel Maker Tata Steel Ltd. Co got approval from Vietnamese government to go ahead with plans to build a Rs 14000 cr steel plant with a local partner. It allowed state-owned Vietnam Steel Corp or Vinasteel to sign a memorandum of understanding with Tata to build the plant in central Ha Tinh province about 400 kilometers (250 miles) south of Hanoi. The plant will have the annual capacity of 4.5 million tons. Currently, Vietnam imports about 4 mn tons of steel plates. Vietnam Steel received government permission to work with Tata on a $3.5 billion steel plant in central Vietnam. Merril upgraded the stock to a buy saying that the synergies from the Corus acquisition would be significant. Target set was Rs 800. Stock surges up 4% on this news.
Technically Speaking: Sensex traded between an intraday high of 14,501 and low of 14,326. The breadth was in favor of decline as there were 1,640 declines against 950 advances. The resistance lies at 14440-14520 levels while the support is at 14200-14150 levels. The volume for the day stood at Rs.5290 Cr. We can see some correction before resuming the upward Trend..
Market ends on a bearish note
Continuing its upward march the Sensex today opened with a positive gap of 36 points and moved on to touch the day's high of 14501. The Sensex, for most of the trading session, zigzagged between the negative and positive zones, making investors nervous. However, the market failed to sustain the early optimism and drifted into negative territory towards the close and the Sensex crashed to touch an intra-day low of 14325 on hectic selling in oil, FMCG and auto stocks. The Sensex finally ended the session with losses of 90 points at 14363 while the Nifty declined by 32 points to close at 4246.
The breadth of the market was weak. Of the 2,642 stocks traded on the BSE, 1,638 stocks declined, 928 stocks advanced and 76 stocks ended unchanged. The sectoral indices were largely weak. The BSE Oil & Gas index lost 1.36%, the BSE FMCG index declined by 1.29% and the BSE Auto shed 1.19%. However, the BSE Metal index rose 1.03%.
Several heavyweights took a sharp tumble on late selling pressure. Among auto stocks, Tata Motors slipped and shed 2.60% at Rs708 and Maruti Udyog tumbled by 1.78% at Rs815. Among the other major losers ITC slumped by 2.55% at Rs166, Reliance Communication lost 2.46% at Rs511, Ranbaxy slipped by 2.38% at Rs390, Gujarat Ambuja Cement dipped 1.50% at Rs115 and ONGC shed 1.45% at Rs913. SBI, ICICI Bank and Bharti Airtel were down over 1% each. Select counters, however, ended in the green. Tata Steel advanced by 5.01% each at Rs659, Reliance Energy gained 3.55% at Rs570 and HLL added 2.19% at Rs198.
Oil stocks declined on sharp selling pressure. Chennai Petro tumbled by 6.68% at Rs257, Petronet LNG dropped 3.03% at Rs51, Dolphin Offshore shed 2.90% at Rs223 and Gujarat Petronet lost 2.71% at Rs56.
Metal stocks, however, held ground and ended at higher levels. ISMT flared up by 5.49% at Rs85, Nava Bharat Ventures added 4.65% at Rs143, Ashapura Minechem advanced by 4.34% at Rs237, Ramsarup Industries moved up by 3.20% at Rs156 and Welspun Gujarat gained 2.68% at Rs163.
Over 2.38 crore Reliance Natural Resources shares changed hands on the BSE followed by Idea Cellular (76.83 lakh shares), Tata Teleservices (69.92 lakh shares), IFCI (64.19 lakh shares) and Reliance Petroleum (54.19 lakh shares).
Value-wise Reliance Capital registered a turnover of Rs205 crore on the BSE followed by Educomp Solutions (Rs195 crore), HDFC (Rs181 crore), Tata Steel (Rs168 crore) and Unitech (Rs125 crore).
Sensex snaps five days of rally
The Sensex was going great guns in the past five trading session today took a breather, as bulls started liquidating positions in last hour of trade, on the Sensex's inability to hit new all-time high. Prior to today’s session, the benchmark index rallied sharp 525 points or 3.75% from 13,929.33 on 15 May to 14,453.72 on 22 May 2007.
The all-time high level for the benchmark Sensex was 14,723.88, hit on 9 February 2007. Marketmen expect the Sensex to consolidate before making any big upmove. Except for selective buying interest seen in metal and capital good sector, shares from auto, FMCG, oil & gas and banking space declined on profit taking.
The BSE 30-share Sensex declined 90.46 points or 0.63% at 143,63.26. It opened higher at 14,490.03, tracking flat global markets, and advanced to an intra-day high of 14,500.64. It slipped to a fresh intra-day low at 14,325.89, in late afternoon session of trade, as selling intensified. The market exhibited high degree of volatility today, 23 May 2007.
The S&P CNX Nifty lost 31.90 points or 0.75% at 4,246.2.
Robust set of FIIs and mutual fund inflows have been driving the markets higher in the past few sessions. FIIs have been on a buying spree as they purchased $747 million in equities in the last four sessions from 17 May to 22 May 2007. They bought shares worth a net $113.3 million on 21 May 2007.
Domestic institutions also provided support to the markets as they pumped Rs 1,145 crore in the Indian equity market in the last four sessions from 17 May to 22 May 2007. They bought shares worth Rs 314.4 crore on 21 May 2007.
All the European market were trading with gains while majority of Asian markets advanced. The Hang Seng index was down 0.22%, while the Nikkei 225 index rose 0.14%.
The market breadth, which indicates the overall health of the market, weakened further after staying in positive in the opening session. On BSE, 1,640 shares declined as compared to 950 that advanced. 83 scrips remained unchanged. This was in sharp contrast to the strong market breadth on BSE at 10:30 IST, when 1,001 shares advanced as compared to 678 that declined.
The BSE Small-Cap index settled 49.22 points or 0.68% lower at 7,237.55, while the BSE Mid-Cap index slipped 36 points or 0.59% to 6,108.84.
The total turnover on BSE amounted to Rs 5,293.97 crore, while the NSE F&O turnover was Rs 33,963.21 crore. Total market wide turnover declined to Rs 49955.04 crore as compared to Rs 50,069.21 crore on 22 May 2007.
Among the Sensex pack, 17 declined while the rest advanced.
Housing finance major HDFC was up 0.32% to Rs 1800.25 on high total volumes of 10 lakh shares. Two block deals were executed in the counter on BSE. One block deal of seven lakh share was struck at Rs 1,818 per share, while the other of one lakh shares was executed at Rs 1,785 per share. The counter hit an all-time high of Rs 1852.80 in intra-day trade. It was the third most top traded counter on BSE, with a total turnover of Rs 181.75 crore.
The share has been advancing in the past few days on hopes of higher valuations for its insurance and mutual funds business following media reports of high valuations for rival ICICI Bank's insurance operations.
Telecom shares eased after slashed roaming tariffs for outgoing calls by upto 70% to Rs 0.40 per minute on select plans. A cut in prices will impact these companies profitability.
Reliance Communications (RCom) was down 2.86% to Rs 508.40, and was the top loser. Bharti Airtel was also down 1.13% to Rs 849.45 on reports that it would also announce price cuts within the next couple of days.
PSU engineering major Bhel gained 1.57% to Rs 2718. The stock is rallying ahead of its record date of 1 June 2007 for the proposed 1:1 bonus issue. The company has earmarked about Rs 3,200 crore for investment in the Eleventh Five-Year Plan period to increase manufacturing capacity from the current 6,000 Mega Watt (MW) to 15,000 MW per annum.
Tata Steel surged 5% to Rs 658.80 on high volumes of 25.85 lakh shares in anticipation of firm prices. It was the top gainer. The private sector steel major has reportedly received permission from Vietnam's government to work with Vietnam Steel Corp on a $3.5 billion steel complex in the southeast Asian country.
Led by Tata Steel, the BSE Metal Index gained 0.99% to settle at 10,634.95. Maharashtra Seamless (up 0.34% to Rs 574) and Welspun Gujarat Stahl Rhoren (up 2.15% to Rs 161.75) were the other gainers.
The BSE Bankex lost 0.91% at 7,589.51. SBI (down 1.51%), HDFC Bank (down 0.39%), ICICI Bank (down 1.65%), Kotak Mahindra (down 2.81%), Federal Bank (down 3.27%), Bank of Baroda (down 3.07%) and Andhra Bank (down 2.33%), edged lower.
Bajaj Auto slumped for the fifth straight day as selling pressure continued. It lost 0.82% to Rs 2177, after staying firm throughout the day. Prior to this Bajaj Auto was on a losing streak, declining a little under 19% in the previous four trading sessions after the surprise revelation that Allianz — Bajaj’s partner in its two insurance ventures — has a ‘call option’ to buy up to 74% at a nominal price. This was the biggest disappointment in the demerger plan.
The sporadic selling began after the company unveiled its demerger scheme, during trading hours on 17 May 2007, along with its results, which triggered a flurry of rating downgrades by brokerage houses. Disappointment about the post-demerger structure and lack of clarity about future business plans were cited as the main reasons for the downgrades.
Most analysts expected Bajaj Auto to remain the majority partner, while allowing Allianz to raise its stake up to 49%. They see a high possibility of the government raising foreign investment limit in insurance sector to 74% and Allianz exercising the option to hike the stake.
The insurance business of Bajaj Auto was valued at around Rs 800 per share. But going by the new structure, the value has been trimmed to Rs 300 per share. So the fall was more of a realignment to its fair value of Rs 2,250.
RIL was down 0.97% to Rs 1758 on 6.18 lakh shares. It struck a fresh all-time high of Rs 1785 in opening trade. The stock hit a lifetime high of Rs 1,780 in late trades on Tuesday, 22 May 2007, as buying momentum intensifed. However, it was not able to surpass it as some selling emerged at higher levels. The counter had reached the same all-time high of Rs 1,780 on 21 May 2007 as well.
There are reports that RIL is in talks with rig manufacturers for the purchase of a deepwater rig whereby it can carry out operations at a depth of around 12,000 feet. This may not prove to be an easy deal for the company given the fact that demand is far in excess of supply in the current market dynamics in the rigs business. Estimated to cost close to $1 billion, the company is working aggressively to corner rigs across the world, either by leasing them or by simply buying.
RIL has been hitting record highs in the past three sessions and has advanced over 34% to Rs 1,761.55 since its close of Rs 1,313.50 on 2 April 2007. The RIL stock entered a sharp uptrend after it said on Tuesday, 15 May 2007, it had made two gas discoveries in separate blocks off the east and west coasts of the country. The commerciality of the above discoveries is currently under evaluation.
FMCG stocks declined on renewed selling pressure. The BSE FMCG Index slipped 1.19% at 1,897.41, and was the top loser among the sectoral indices on BSE. United Spirits (down 5.60%), ITC (down 2.75%), Colgate (down 2.56%) and Marico (down 2.04%), closed in red. However HLL surged 2.29% to Rs 198.65 on value buying.
Shares from the capital goods space attracted renewed buying buoyed by consistent order win and bulging order book position. The BSE Capital goods index firmed up 0.6% and was the top gainer among the sectoral indices on BSE.
SKF Bearings India jumped 11.58% to Rs 480 on 5.71 lakh shares. Thermax (up 1.90%), Areva T&D (up 5.48%), Praj Industries (up 0.80%) and ABB (up 0.86%), advanced from the capital goods space.
Reliance Capital was the top-traded scrip in the A group, notching a turnover of Rs 205.18 crore on BSE. HDFC (Rs 181.94 crore), Tata Steel (Rs 168.08 crore), Unitech (Rs 125.91 crore) were the other turnover toppers.
Torrent Power rose 1.06% to Rs 76.50 after signing an agreement with Gujarat Power Corporation for setting up a 1,000+ MW coal-based power project at Pipavav in Amreli district, Gujarat.
Bata India surged 5.31% to Rs 179.20 on reports that the footwear firm was in talks with Reliance Retail for footwear retailing. Reliance Retail, as part of its retail strategy, plans to foray into footwear retailing and is planning to sign an agreement with Bata India.
Bata would sell footwear brands planned by Reliance Retail and, in return, Bata products would find space in Reliance Retail’s shelves.
NDTV dwindled 5.13% to Rs 406 after reporting a net loss of Rs 0.17 crore in the quarter ended March 2007 as against a net loss of Rs 1.97 crore in the March 2006 quarter. Sales rose 28.18% to Rs 67.37 crore, from Rs 52.56 crore. There was a net loss of Rs 6.89 crore in the year ending March 2007 as against a net loss of Rs 6.25 crore in FY 2006. Sales jumped 23.05% to Rs 235.38 crore, from Rs 191.29 crore.
Tata Tea slipped 0.63% to Rs 872, after striking a high of Rs 917. The stick surged following Coca-Cola's renewed interest in US-based energy drink maker Glaceau, in which the Indian company claims a 30% stake. On 21 May 2007, Beverage Digest, a trade journal, reported that Coca-Cola has filed a notification with the Federal Trade Commission of the US about its proposed acquisition of New York-based energy drink maker, Glaceau, that claims to have a 30% holding by the Tata group. The Beverage Digest reported that Coca-Cola's valuation of the deal could be around $4 billion.
Nine months ago, Tata Tea had bought 30% stake in Glaceau for $677 million, which worked out to an enterprise value of $2.2 billion for the company.
Rajesh Exports shares ended 0.17% lower to Rs 472, sharply from its day’s high reached after bagging a Rs 286-crore order from Excel Goldsmiths. The order is scheduled to be completed by 30 September 2007. The Rajesh Exports stock surged a massive 28% in just eight trading sessions, from Rs 375.80 on 9 May 2007 to Rs 481.10 on 21 May 2007, on momentum buying after the stock was introduced in the Futures & Options (F&O) segment of the National Stock Exchange (NSE) from 14 May 2007. It settled at Rs 472.40 on 22 May 2007, on profit booking after a sharp rally.
Wall Street ended an erratic session little changed yesterday as investors upbeat about the latest round of takeover activity remained hesitant to take the market higher ahead of new economic data. While stocks moved sideways, Treasury yields rose to a three-month high.
The Dow Jones industrial Average (DJIA) fell 2.93 points, or 0.02%, to 13,539.95.
Broader stock indexes were mixed. The Standard & Poor's 500 slipped 0.98 points, or 0.06%, to 1,524.12. The index, considered by market professionals as the best indicator of stock performance, passed its record close of 1,527.46 on Monday and again on Tuesday for the first time since 2000. However, the S&P remains well below its trading high of 1,552.87, reached in March 2000.
The Nasdaq Composite index, which has lagged the other major indexes in recovering from Wall Street's prolonged slump early in the decade, rose 9.23 points, or 0.36%, to 2,588.02.
Crude oil prices dropped below $65 a barrel as investors sold contracts before their expiration yesterday, and before the US government's weekly inventory report. The June contract for light, sweet crude, which expired yesterday, 22 May 2007, lost $1.30 to settle at $64.97 a barrel on the New York Mercantile Exchange. The July contract also fell $1.36 cents to close at $65.51 a barrel.
July Brent crude slipped 97 cents to $69.52 a barrel on the ICE Futures exchange.
Sharekhan Riveting Metals, HighNoon, Daring Derivatives, Eagle Eye
Sharekhan Riveting Metals dated May 23, 2007
Sharekhan Highnoon dated May 23, 2007
Sharekhan Daring Derivatives for May 23, 2007
Labels:
Commodities,
Daring Derivatives,
Eagle Eye,
High Noon,
Riveting Metals,
Sharekhan
DP Group! | Facebook | Twitter
Anand Rathi - Daily Fundamental Snippets & Daily Strategist - May 232007
The NIFTY futures saw a rise in OI to the 1.92% with prices up indicating long positions built up in the counter suggesting fresh long positions built up in the market which may further strengthen the market .Market managed to remain above the 4240 levels which may give support to the market. Nifty futures premium disappeared due to liquidation of positions during the last hour and nifty futures closed at 5 points discount to spot nifty .The FII were buyers index futures to the tune of 430 crs and buyers in index options to the tune of 192 crs. The PCR has come up from 1.47 to 1.48 indicates some buying may emerge in the market. The IV is around 20.05 levels indicating some volatile trading sessions ahead.
Among the Big guns, ONGC saw 4.33% rise in OI with prices finally coming down in the and closing near day's low indicating short positions built up in the counter aggressively thus suggesting weakness in the counter . Whereas RELIANCE saw drop of 3.74% in OI with prices moved up and closed near day's high thus suggesting short covering seen in the counter but the built up suggests that their may be consolidation in the counter before taking sharp movement thus suggesting that one should start booking partial profits in the counter.
In the TECH counters, all the majors saw significant built up in OI with prices recovering from lows indicating buying emerging at lower levels which if continues today may force bears to cover their positions aggressively .One should take positions in the IT pack only after looking today's built up and movement in the price .
In the BANKING counters, all the majors saw rise in the positions with prices coming down from highs indicating short positions built up in the counters suggesting some weakness may be seen in the overall BANKING counters.
In the Metal pack, TATASTEEL & SAIL saw marginal rise in OI with prices coming down indicating long positions liquidated in these counters after a sharp rally thus suggesting one should start booking partial profits in these counters. HINDALCO & NALCO saw marginal rise in OI with prices remaining in a narrow range suggesting one should wait for making positions in the counters unless some significant built up is seen in these counters. STER saw rise in OI with prices up indicating long positions built up in the counter.
We feel that the volume and built up in OI suggests that market may show some directional movement as there is good built up in open interest. Market may show further strength and we may see fresh buying emerging in the market if market sustains above 4240 levels One should trade with strict stop losses to be adhered too.
Anand Rathi - Daily Fundamental Snippets, Daily Strategist - May 23 2007
Indiainfoline - Intraday Stock Ideas
NIFTY (4278) SUP 4258 RES 4301
BUY SIEMENS (1254)
SL 1239 T 1276, 1280
BUY TATACHEM (257.3)
SL 253 T 265, 268
BUY LICHSGFIN (176)
SL 172 T 184, 186
SELL BATAINDIA (170.55)
@ 173 SL 177 T 162, 160
SELL APTECHT (314.30)
@ 317 SL 321 T 308, 305
STRATEGY INPUTS FOR THE DAY
Bulls search for direction
Direction is more important than speed. We are so busy looking at our speedometers that we forget the milestone.
Euphoric bulls seem to be losing conviction at higher levels. Though close to the Sensex' all time high, the bulls now seem to be asking for directions after having raced ahead this far. On Tuesday, the key indices managed marginal gains after a dull and choppy day. Late surge in a few index heavyweights like Reliance Industries and Bharti Airtel did the trick for the bulls. The Nifty hit another lifetime high and the Sensex took another step towards a new historic peak. The market breadth was negative though, with the small- and mid-cap counters cooling off after the recent rally. The near term outlook remains positive on the back of the renewed spurt in FII inflows and benign global markets though rising oil prices are a cause for concern.
Today we expect a cautious opening and another volatile day as the bulls seem to be losing steam at higher levels. Having said that if foreign money keeps pouring in the current rally may sustain for some more time, at least till the Sensex nears 15k. There is a case for a healthy correction but going by the strong undercurrent that may still take a while. Still, one must be prepared for the worst case scenario. As a result, some profit booking is warranted at every rally.
FIIs were net buyers of Rs341bn (provisional) in the cash segment yesterday while the domestic institutions pumped in Rs1.28bn. In the F&O segment, FIIs were net sellers to the tune of Rs3.21bn. On Monday, FIIs pumped in Rs4.78bn in the cash segment. Mutual Funds brought in Rs3.14bn on the same day.
The derivative contracts in NAGARFERT, ARVINDMILL, IFCI and JPHYDRO have crossed 95% of the market-wide position limit and are currently in the ban period.
The IPO of Time Technoplast has been subscribed 4.8 times.
ICRA may see some action as the credit rating agency declares its results today. Nicholas Piramal is expected to witness some buying over the next few days. Bata India may attract some attention amid reports that the company is in talks with Reliance Retail for a strategic alliance. We must add here that the company has denied any such move.
Tata Tea may continue to hog the limelight as newspaper reports say the company is considering various options with regard to its 30% stake in Glaceau. Fortis may continue to hog the limelight amid the ongoing tussle between the management and renowned cardiac surgeon Dr. Naresh Trehan.
Bhushan Steel may rise as a business daily reports that it will buy a 15% stake in Australian exploration company Bowen Energy.
On Wall Street, the Nasdaq Composite index rose on Tuesday, ending at a new six-year high. But, the S&P 500 index and the Dow Jones Industrial Average couldn't quite manage new all-time records. M&A news and falling oil prices helped support stocks, but gains were capped by the recent rally.
Financial and real-estate companies led most US stocks higher for a third day after Treasury Secretary Henry Paulson said that the slump in housing is largely over.
The Dow fell by 2.93 points to 13,539.95. The S&P 500 finished flat at 1524.12. The Nasdaq added 9.23 points, or 0.4%, to 2588.02, aided by Intel. The Nasdaq posted its third consecutive gain.
After the close, Alcan's Board asked the company's shareholders to turn down a $28bn unsolicited offer from Alcoa, saying the amount was too low.
US light crude oil for June delivery fell $1.30 to $64.97 a barrel on the New York Mercantile Exchange. The front-month contract was quoting 12 cents higher at $65.63 a barrel in extended trading in Asia.
COMEX gold for June delivery fell $3.90 to settle at $659.90 an ounce. Treasury prices slipped, raising the yield on the 10-year note to 4.83% from 4.78% late on Friday. In currency trading, the dollar gained versus the euro and the yen.
European stocks ended mixed. The pan-European Dow Jones Stoxx 600 index rose 0.1% to 393.41. The German DAX Xetra 30 closed up 0.5% at 7,659.39. The French CAC-40 finished virtually unchanged at 6,089.72 while UK's FTSE 100 slipped 0.5% to 6,606.60.
In the emerging markets, the Ibovespa in Brazil fell by 0.4% to 52,208 while the IPC index in Mexico gained 0.3% to 30,802 and the RTS index in Russia shed 0.3% to 1860.
Asian markets were trading mixed this morning. The Nikkei in Tokyo was up 60 points at 17,740 while the Hang Seng in Hong Kong was flat at 20,837. The Kospi in Seoul added 2 points at 1645 and the Straits Times in Singapore advanced 7 points to 3547.
The Morgan Stanley Capital International Asia-Pacific Index rose 0.4% to 150.00 at 11:42 a.m. in Tokyo, adding to a two-day, 1.4% rally. The benchmark is less than 0.1% below a record close of 150.12 set May 9. Benchmarks in Malaysia and the Philippines declined. Other markets open for trading advanced.
Markets ended on a flat note as the key indices were unable to find any specific direction throughout the trading session. After registering a positive open the markets instantly lost ground as markets cooled off on back of selling pressure in the index heavy weights like Bajaj Auto, SBI, Infosys and ONGC. However, markets gained momentum towards the fag end of the session as frontline stocks like Reliance Communication, ACC, BHEL and Reliance Industries aided support lifting the key indices to close with a positive bias.
BSE Capital Good, FMCG and Pharma index led from front however, bank and IT dragged. Even the Mid-Cap and the small cap index ended flat except for select scrip’s like BRFL, Educomp Solution, Aftek Ltd and Ceat Ltd which completely outperformed the indices. Finally, the 30-share Sensex ended flat at 14417 gaining 35 points. NSE-50 Nifty gained 17 points ending flat at 4278.
ABB gained by 1.4% to Rs4343 after the company announced that they have won order of Rs2.89bn for Delhi Metro. The scrip touched intra- high of Rs4368 and a low of Rs4211 and recorded volumes of over 65,000 shares on NSE.
Reliance Communication surged by over 3% to Rs523 after the company announced hat they would cut roaming rates by 70%. The scrip touched intra- high of Rs526 and a low of Rs505 and has recorded volumes of over 82,00,000 shares on NSE.
Bharat Forge gained 1.9% to Rs340 after the company announced its Full Year result with profit at Rs2.41bn (up 16%) and net sales atRs18.6bn (up 17%) and also would pay dividend of Rs3.5 per share. The scrip touched intra- high of Rs344 and a low of Rs335 and recorded volumes of over 16,00,000 shares on NSE.
Motherson Sumi rallied by over 19% to Rs133.15 after the company would consider bonus share plan on 26th May. The scrip touched intra-high of Rs133.50 and a low of Rs109 and recorded volumes of over 4,00,000 shares on NSE.
EKC gained momentum towards the fag end of the session the scrip wiped off all its losses and closed at Rs1155 gaining 0.8%. The company announced that it would split each share into five. The scrip touched intra- high of Rs1177 and a low of Rs968 and recorded volumes of over 5,00,000 shares on NSE.
Pharma stocks looked in good health led by gains in Sun Pharma, the scrip gained by over 2.3% to Rs1090, Dr Redy’s Lab was up by 0.6% to Rs662, Cipla edged higher by 0.2% to Rs208 and Cadila advanced 1.5% to Rs334.
Capital Good stocks were a mixed bag. Gammon India gained by 1.4% to Rs400, BHEL was up by 1.9% to Rs2679 and Punj Lloyd advanced 1.5% to Rs183. However, L&T marginally dropped by 0.2% to Rs1733.
Technology stocks yet again witnessed a selling pressure as the dollar continues to weaken against the India rupee currently at Rs40.55 per dollar. Index heavy weight Infosys slipped by 0.8% to Rs1946, Moser Baer was down by over 3.5% to Rs442, HCL Tech dropped 1.6% to Rs344 and Mastek declined 3.6% to Rs305.
FMCG stocks were a mixed bag. ITC slipped by 0.2% to Rs170, Marico lost 2.4% to Rs58. however, HL has gained by 0.6% to Rs194, Tata Tea was up 4.5% to Rs878 and McDowell added 5.7% to Rs1244.
Insider Trades:
Aptech Limited: UBS Securities Asia Limited - A/C Swiss Finance Corporation (Mauritius) Ltd has sold in open market 457128 equity shares of Aptech Limited on 16th May, 2007
The Great Eastern Shipping Co. Limited: Bharat K. Sheth, Deputy Chairman & Managing Director has purchased from open market 32683 equity shares of The Great Eastern Shipping Co. Limited on 17th May, 2007
Gujarat Ambuja Cement Ltd: Shri P B Kulkarni, Director has sold in open market 14000 equity shares of Gujarat Ambuja Cement Ltd on 16th May, 2007.
Sectoral Movement:
BSE Capital Good index was the major gainer and gained 0.56%, BSE FMCG index (up 0.50%), BSE Pharma index (up 0.43%) and BSE IT index (up 0.46%) were among the other major gainers. However, BSE Bank index lost 0.28%.
Volume Toppers:
RNRL, TTML, SAIL, RPL, Balrampur Chini, Gujarat NRE, R Com, Zee News, Reliance Capital, IDFC, Ashok Leyland, Cairn, Balaji Telefilms, NTPC, Reliance Industries, Voltas and Century Textile.
Upper Circuit:
Raj Tele, Goldstone Tech, Global Broadcast, GHCL, Gujarat NRE, Shyam Tele, Texmaco, KEI Industries, Mefcom Agro and MLL
Delivery Delight:
Apollo Tyres, ACC, BEL, Century Textiles, Grasim Industries, Hero Honda, HDFC, Tata Chemicals, Tata Power and UTI Bank.
Abnormal Delivery:
Moser Baer, BILT, Bajaj Auto, Polaris Software, Punjab Tractors, Andhra Bank, Sundram Fasteners, Federal Bank, ONGC and Escorts.
Stock Futures with largest increase in OI:
Ansal Property, Indian Overseas Bank, R Com, OBC, EKC, Satyam Computer, United Spirits and VSNL.
Stock Futures with largest decrease in OI:
Corp Bank, Indian Bank, Jindal Stainless, Sobha Developers, Rajesh Exports, Bajaj Hindusthan and Titan.
Results Today:
Divi's Lab, Gemini Communication, KS Oils, Matrix Labs, MRO TEK, Munjal Showa, NIIT Tech, ORG Informatics, Karur Vysya Bank, PNB, Swaraj Engines and Torrent Pharma.
Results Corner:
Bharat Forge Full year profit at Rs2.41bn (up 16%), Full Year net sales atRs18.6bn (up 17%) and to pay dividend of Rs3.5 per share
Brokers Recommendations:
Bharti Airtel – Buy from CLSA with target of Rs915
EKC – Book Profits from Kotak
Long Term investment:
HCL Tech
Major News Headlines:
Tata Steel gets nod from Vietnam Govt to build steel plant
TV18 and Viacom announce 50:50 joint venture in India, called Viacom-18
R COM cuts roaming charges by 43% on incoming calls
Polaris signs agreement with Ementor, Denmark
ABB wins order of Rs2.89bn for Delhi Metro
i-flex Consulting wins order from Public Bank
EKC to split each share into five
Motherson Sumi to mull bonus share plan on 26th May
Calsoft to acquire 51% stake in Aspire Communications
Nifty may strike all time high, consolidate in later half
Even as volatility prevented the 30-share BSE Sensex from swiftly reaching all time high, the broader index S&P CNX Nifty wriggled past its previous high of 4,269.35 points struck on Monday, 21 May 2007, to reach a fresh all-time high of 4,281.60, 22 May 2007, on strong buying demand for frontline pivotals. It is expected to extend its rally and hit all time high.
However during the later half, the market is likely to consolidate after a sharp recent rally. The Nifty has rallied close to around 18% from a recent low of 3,633.60 on 2 April 2006 to settle at an all-time high of 4,278.10 on 22 May 2007.
However, selective buying and stock specefic action cannot be ruled out completely.
The all-time high level for the benchmark Sensex is 270 points away from 14,723.88 hit on 9 February 2007.
The Nikkei average gained 0.41% on Wednesday as shares of Japan's three largest banks extended gains on expected higher profits this year. Japan's banking sector has lost some 24% since hitting a seven-year high in April last year, due to concern about a legal crackdown at their affiliated consumer credit companies. The Nikkei advanced 71.69 points at 17,751.74 by the close of morning trade. The broader TOPIX index was up 0.78% at 1,745.01.
Wall Street ended an erratic session little changed yesterday as investors upbeat about the latest round of takeover activity remained hesitant to take the market higher ahead of new economic data. While stocks moved sideways, Treasury yields rose to a three-month high.
The Dow Jones industrial Average (DJIA) fell 2.93 points, or 0.02%, to 13,539.95.
Broader stock indexes were mixed. The Standard & Poor's 500 slipped 0.98 points, or 0.06%, to 1,524.12. The index, considered by market professionals as the best indicator of stock performance, passed its record close of 1,527.46 on Monday and again on Tuesday for the first time since 2000. However, the S&P remains well below its trading high of 1,552.87, reached in March 2000.
The Nasdaq Composite index, which has lagged the other major indexes in recovering from Wall Street's prolonged slump early in the decade, rose 9.23 points, or 0.36%, to 2,588.02.
FIIs have been on a buying spree as they purchased $747 million in equities in last 4 sessions from 17 May to 22 May 2007. They bought shares worth a net $113.3 million on 21 May 2007.
Domestic institutions also provided support to the markets as they pumped Rs 1,145 crore in Indian equity market in last 4 sessions from 17 May to 22 May 2007. They bought shares worth Rs 314.4 crore on 21 May.
Crude oil prices dropped below $65 a barrel as investors sold contracts before their expiration yesterday, and before the US government's weekly inventory report. The June contract for light, sweet crude, which expired yesterday, lost $1.30 to settle at $64.97 a barrel on the New York Mercantile Exchange. The July contract also fell $1.36 cents to close at $65.51 a barrel.
July Brent crude slipped 97 cents to $69.52 a barrel on the ICE Futures exchange
Market may gain further
Strong bullish sentiment, decent earnings numbers reported by number of domestic companies and strong fund inflows in the last few sessions may help the market to resume on a positive note. The market is also likely to take cues from the firm Asian indices in morning trades and is expected to remain volatile during intra-day trades. Among the indices, the Nifty could target the higher levels around 4300 while on the downside it may slide to 4245. The Sensex has a likely support at 14000 and may face resistance at 14600.
US indices closed mixed on Tuesday with Nasdaq composite ending at a new six-year high, but gains were limited by hesitation after the recent run and the ongoing trade talks between Treasury Secretary and Chinese officials. While the Dow Jones dropped three points at 13540, the Nasdaq gained nine points to close at 2588.
Other than ICICI Bank, Patni Computers, Dr Reddy's Lab and Wipro, rest of the Indian floats gained on the US bourses. Infosys, Satyam, Tata Motors, HDFC Bank, MTNL and VSNL were up around 1-4% each.
Crude oil prices slipped further, with the Nymex light crude oil shed $1.30 at $64.97 per barrel. In the metals segment, the Comex gold for June series slumped $3.90 to settle at $659.90 an ounce.
Investsmart - Morning Call
Market Grape Wine :
In House :
Nifty at a support of 4225 & 4212 & 4170 levels with resistance at 4305 , 4337 levels .
Buy : IntraDay : MphasisBfl above 310 target of 324 s/l of 305
Buy : RComm above 527 target of 539 s/l 522
Buy : In F&O Siemens
Buy : in F&O Jstainless target of 170 s/l 159
Out House :
Markets at a support of 14313 & 14235 levels with resistance at 14525 & 14575 levels .
Buy : RIL & RelCap
Buy : RComm
Buy : Sail
Buy : Siemens
Buy : GujNreCoke
Buy : Divis & CenTextile
Buy : IBulls & Praj
Dark Horse : IBUlls , Praj , GuNreCoke , EduComp , Siemens , SRF , Centextile & Adlabs
Bullet for the day : Educomp , EKC & Sobha with strict stop loss
Subscribe to:
Posts (Atom)