Daily Technical Futures - Dec 27 2007
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Wednesday, December 26, 2007
Stocks you can pick up
Mahindra & Mahindra
CMP: RS 823.55
Target price: RS 939
Religare has initiated coverage on Mahindra & Mahindra (M&M ) with an ‘accumulate’ rating as it feels that new launches over the next two years will completely revamp the company’s utility vehicle (UV) portfolio and help sustain its market position.
The brokerage also expects competition to remain moderate apart from a rebound in growth rates of tractors. “Tractor sales will recover in FY09 driven by good monsoons, increase in prices of agricultural products, increase in allocation of funds towards rural credit and softening of interest rates” , says the report. “Till FY10, M&M is unlikely to face any serious competition in its key segments ie UVs, LCVs, tractors and three wheelers. Threat from new entrants also appears to be low till FY10, after which competition in UVs could intensify” , adds the report.
The brokerage also feels that M&M’s joint ventures with international players can create substantial value in the coming years and the near term trigger will be the listing of Mahindra Holidays. The brokerage has valued M&M at Rs 939 based on a sum-of-the parts (SOTP) valuation method.
Jaiprakash Hydro-Power
CMP: RS 125.60
Target price:
NA ICICI Direct has advised investors to book profits in Jaiprakash Hydro-Power (JHPL) as its feels that the stock is fairly valued at the current price factoring its business model and steady cash flows. “At the current price of Rs 128, the stock is trading at 34.43 times FY09 earnings, 25.50 times FY09 EV/EBITDA and 7.4 times FY09 P/BV. We advise investor to book profits” , says the report.
The brokerage further adds that the company plans to form a joint venture company, Jaypee Powergrid Ltd, with Power Grid Corporation of India (PGCIL) to set up the transmission system for the 1,000-MW Karcham Wangtoo Hydoelectric Project in Himachal Pradesh. While JHPL will hold 74% of the equity, the remaining 26% will be held by PGCIL. ICICI Direct has valued the the venture at Rs 16 per share for Jaiprakash Hydro-Power .
GMR Infrastructure
CMP: RS 239.55
Target price: RS 358
Emkay has maintained a ‘buy’ rating on GMR Infrastructure after the company announced the placement of 16.52 crore shares at a price of Rs 240 to qualified institutional buyers (QIBs).
However, the brokerage has revised the target price downwards to factor in the increased equity capital. “We continue to maintain a buy recommendation with a revised price target to Rs 358 per share (down 2% from Rs 367). We have revised our price target downwards to account the increase in the equity capital of the company” , says the report. “Our price target is arrived at from the embedded value of each of the projects undertaken by GMR Infrastructure and as the company develops more projects our target price would be revised to include the value of the new projects” , adds the report.
On a different note, the brokerage feels that the government’s stand that GMR’s Delhi Airport can raise funds by way of deposits and charge lower lease rentals for the commercial property to be developed adjacent to the Delhi International Airport will prove positive for the company. “This would enable GMR to collect about Rs 30 billion (Rs 3,000 crore) as interest refundable deposits for the first parcel of 50 acres of land” , says the report.
Tata Chemicals
CMP: RS 386.20
Target price: RS 444
Asit C Mehta Investments has initiated coverage on Tata Chemicals with a `buy’ rating on account of growth from its fertilizers and inorganic segment. According to the brokerage, the company’s net sales is expected to grow at a CAGR of 11% and PAT at a CAGR of 17% in the next two years.
“The company’s competitive advantage stems from its inorganic segment, mainly soda ash business. The domestic demand is expected to grow at a CAGR of 6% to 3.037 mn. tonnes in 2010 from 2.546 mn. tonnes in 2007 led by increase in consumption from glass industry and soap & detergent industry,” said the brokerage in a note to its clients.
TCL is also in the process of de bottlenecking its Urea plant at Babrala, where the Urea manufacturing capacity would increase from 0.86 mtpa to 1.2 mtpa. TCL’s foray into new businesses like Khet Se and Bio-fuel , would help the company to exploit new opportunities arising from the growing retail segment and need for alternative energy segment respectively.
BSE Bulk Deals to Watch
26/12/2007 532282 AMTEK INDI L WARBURG PINCUS INTERNATIONAL LLC AC STONERIDGE INVESTMENT LTD B 2900000 203.98
26/12/2007 532282 AMTEK INDI L BLUECREST SPECIAL SITUATIONS MASTER FUND LIMITED S 2900000 203.90
26/12/2007 532747 DECCAN AVIAT KINGFISHER RADIO LTD B 1640000 275.00
26/12/2007 526717 GOPALA POLYP INDUSTRIAL DEVELOPMENT BANK OF INDIA LTD S 100000 11.48
26/12/2007 500186 HIND.OIL EXP REKHA JHUNJHUNWALA S 1721355 169.01
26/12/2007 532187 INDUS IND BK HINDUJA VENTURES LTD B 1977391 124.00 26/12/2007 532187 INDUS IND BK ASHOK LEYLAND LTD S 2000000 124.01
26/12/2007 523218 KILBURN OFFI IDBI LTD S 75000 12.70
26/12/2007 532481 NOIDA TOL BR CREDIT SUISSE SINGAPORE LIMITED S 1400000 57.98
26/12/2007 532529 NDTV LTD. PRANNOY ROY B 4835850 400.00 26/12/2007 532529 NDTV LTD. G A GLOBAL INVESTMENT LIMITED S 4836000 400.00
Post Market Commentary
The Sensex opened with a positive gap of 87 points at 19,941, and breached the 20,000-mark in early deals.
A minor bout of profit-taking saw the index drop to a low of 19,897, but renewed buying in heavyweights like Reliance, SBI and L&T saw the index zoom to a high of 20,211.
The Sensex finally closed with a gain of 338 points (1.70%) at 20,192.
The BSE Oil & Gas Index moved up 3% to 13115. The BSE Smallcap Index was also up 3% at 12,342.
The market breadth was extremely bullish - out of 2,945 scrips traded, 2,278 scrips logged gains today.
INDEX GAINERS....
Reliance led the rally with a gain of nearly 4% (Rs 109) at Rs 2,897.
SBI moved up 3% (Rs 69) to Rs 2,399.
L&T gained 2.6% (Rs 105) to Rs 4,194.
DLF moved up 4% to Rs 1,014.
Hindalco, Tata Steel, Tata Motors, BHEL and Reliance Energy also finished with gains of over 3% each today.
....AND LOSERS
Bajaj declined 1% to Rs 2,682. ONGC was also down 1% at Rs 1,236.
MOST ACTIVE COUNTERS
Reliance Petroleum was the most active counter with a turnover of Rs 241 crore followed by Essar Oil (Rs 219 crore), NDTV (Rs 213 crore), Reliance Energy (Rs 199 crore) and Reliance (Rs 173 crore).
Bulk Deal Watch
26-DEC-2007,AIRDECCAN,Deccan Aviation Limited,KINGFISHER RADIO LIMITED,BUY,2360000,275.00,-
26-DEC-2007,HINDOILEXP,Hind. Oil Exploration ,MATTERHORN DY EQ FUND,BUY,1770000,168.90,-
26-DEC-2007,HINDOILEXP,Hind. Oil Exploration ,RAKESH JHUNJHUNWALA,SELL,1035250,168.80,-
26-DEC-2007,HINDOILEXP,Hind. Oil Exploration ,REKHA JHUNJHUNWALA,SELL,750000,169.07,-
26-DEC-2007,MICROTECH,Micro Technologies (India,RELIANCE CAPITAL TRUSTEE CO LTD,SELL,70507,280.31,-
26-DEC-2007,NOIDATOLL,Noida Toll Bridge Company,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAPO,SELL,2300000,57.74,-
26-DEC-2007,PRECWIRE,Precision Wires India Ltd,RELIANCE CAPITAL TRUSTEE CO. LTD-A/C RELIANCE TAX ,SELL,74147,159.92,-
26-DEC-2007,ZICOM,Zicom Electronic Security,ARISAIG INDIA FUND LTD,SELL,70269,229.27,-
Sensex moves above 20000
A late spurt in index heavyweight Reliance Industries on Wednesday saw the Sensex and Nifty close above the 20,000 and 6,000 marks, respectively, after remaining firm throughout the day. Even so, midcaps and smallcaps outperformed the benchmarks.
Bombay Stock Exchange's Sensex settled at 20,192.52, up 1.70 per cent or 338.40 points. It touched an intra-day high of 20,211.47. The low was 19,896.61.
National Stock Exchange's Nifty ended at 6070.75, up 85 points or 1.43 per cent. It scaled a high of 6085.25 from a low of 5988.45.
Investor interest in second rung shares saw the BSE Midcap Index end up 2 per cent and BSE Smallcap Index 3 per cent higher.
However, volume has been low the last few sessions on account of thin investor participation. The NSE today clocked a turnover of Rs 15,693 crore against Rs 18,235.85 crore week ago.
"Although the Nifty has recovered smartly, the low volume is a cause of concern. Only if the Nifty breaks 6185 decisively, can the index see a good upmove," said Manas Jaiswal, senior technical analyst with Emkay Shares & Stock Brokers.
Shares of oil & gas companies posted smart gains. State-owned HPCL surged 6.78 per cent, BPCL added 5.46 per cent and IOC gained 6.55 per cent. Reliance Industries rose nearly 4 per cent.
After lying low for most of the day, the BSE IT Index ended flat. Satyam Computer finished up 1.04 per cent, Infosys Technologies inched 0.15 per cent higher and Wipro was up 0.07 per cent.
DLF (up 4.35%), Hindalco Industries (4.18%), Reliance Industries (3.90%), Tata Steel (3.51%), Tata Motors (3.3%), State Bank of India ( 2.97%) and BHEL (2.63%) were the biggest Sensex gainers.
Bajaj Auto (down 1.14%), TCS (0.99%), ONGC (0.90%), Hindustan Unilever (0.39%), HDFC (0.27%) were the laggards.
Across BSE, 2,283 shares advanced, 639 declined and 23 remained unchanged.
Market Close : Party mood continues...!
It was a strong season for the markets after a gap up start despite global cues were quiet for the day. Markets continued its northward journey and ended higher on the back of value buying across the board. Buying support was seen is sectors like Auto, Capital goods, Metal, Power and Banking while selected IT & Pharma stocks saw some level of profit booking but markets managed to trade above the 20,000 mark . In the final hour of trading indices witnessed consolidation near the day's highs with strong gains. Market is anticipating a better 3QFY08 results which heads up investors confidences and led markets to continue the buoyant momentum. Midcaps and smallcap indices have outperformed. Market roller over position is healthy near to 60% roll over from Dec series to Jan 08 series which is inline with the market expectation. Key European markets were closed today.
Markets also reacted positively on the news that Government has allowed all trusts to invest in securities including shares and bonds of listed Companies. This move will have more inflow in markets which is booming. Large number of trusts such as schools, temples and private hospitals having huge resources will be able to invest their funds in the market. Trusts had a corpus of nearly Rs 25,000 crore by the beginning of the decade according to data gathered by the government for tax purposes.
Sensex ended up by 345 points at 20199.52.It was helped up by gains in Hindalco (209.4,+4 percent), RIL (2896.7,+4 percent), TISCO (892.75,+4 percent), Tata Motors (752.1,+3 percent) and SBI (2399.3501,+3 percent). Restricting the gains were Bajaj Auto (2681.8999,-1 percent), TCS (1097.75,-1 percent), ONGC (1236.2,-1 percent), HLL (214.7,0 percent) and HDFC (2889.45,0 percent).
Lok Housing was on limelight for the day & ended up10% circuit. Lok Housing & Constructions (LHCL) a company of Lok group mainly in the suburbs of Mumbai. Lok Surabhi , Lok Kedar , Lok Everest, Lok Malhar and Lok Nisarg at Mulund, Lok Yamuna at Marol , Lok Amber at Ambernath, Lok Prabhat at Virar are some of the projects executed by the company. It is planning to commence premium projects in Mumbai and at other places like Pune, Vasai, Bangalore,Turbhe. Till date Lok Housing has completed 31 projects over 17,000 units and 9mn sq.ft area. Lok housing has a good amount of land bank and some valuable salt pans plots are still under litigation. We like the business model. Chances are that the owners may manage it in their favour given the history of such cases between the Government and Corporates. Keep watching this space for more updates.
Karuturi Networks zoomed to close 10% up. Karuturi the largest rose player in the world. It has 2 segments of business, Horticulture and ISP. More than 90% of the revenue comes from the flower business. Karuturi has a total capacity of 650 mn stems. It has 10 hectares in India with 10 mn stems capability inhouse and another 25 mn stems which are managed through contract farming. 100 hectares are operational in Ethiopia with a capacity of over 100 mn stems. Karuturi Networks has been allotted additional 450 hectares of land by the Government of Ethiopia for its expansion and diversification projects. The Kenyan acquisition of Sher brought in about 525 mn stems. Globally 40,000 hectares of land is under rose cultivation. However, the field sizes globally are fragmented and are not over 200 acres. Karuturi is one of the big players here now. Feb is the peak season and we are positive on this business. Do read our research note to know more ??
Technically Speaking: Markets have outperformed the benchmark indices giving positive breadth. It made intraday high of 20,211 and days low of 19,897. Volume was good at Rs 7,620crs. The breath was in favor of Advances, where Advances stood at 2236 and Declines at 652. Sensex resistance stands at 20500 and support lies at 20,020.
Post Session Market Commentary
The market closed with handsome gains on the back of heavy buying pressures across the counters. The investors showed their eagerness in buying to book their positions. Since from the initial bell the market keeps on trading on the front foot through out the trading session. The market also got a further direction on the back of reports that government has allowed all trusts to invest in securities including shares and bonds of listed companies. The Metal, Capital Goods and Oil & Gas indices scrips remained in the limelight as most buying is seen from these baskets. Both the BSE Mid cap and Small Cap closed higher by 189.15 points and 361.92 points at 9,400.86 and 12,342.49 respectively. The BSE Sensex closed with heavy gains of 338.40 points at 20,192.52 and NSE Nifty closed higher by 85.65 points at 6,070.75. Overall, the market breadth was strong as 2,283 stocks are closed in green while 639 stocks are closed in red.
BSE Metal index surged 470.55 points to close at 19,291.34. Scrips that grew are Bhushan Steel 10.30%, Sh Precoated 6.57%, Hindalco 4.18%, Jindal Steel 3.56%, Tata Steel 3.51%.
BSE Oil & Gas index grew by 437.67 points to close at 13,115.99. Pushed up by Essar Oil 7.93%, HPCL 6.78%, IOCL 6.55%, BPCL 5.46%, Reliance industries 3.90% and RPL 3.39%.
BSE Capital goods index inclined by 430.43 points to close at 19,654.31. Jumped by Crompton Greaves 6.09%, BEML 3.79%, Punj Lloyd 3.78%, BHEL 2.63%, L&T 2.57% and ABB 2.39%.
BSE Realty index closed up by 291.47 points at 12,109.99 as Ansal Infra 9.42%, Parsvnath 7.87%, DLF 4.35%, Sobha Dev 2.72%, Mahindra Life 2.45% and Indbul Real 2.28% closed in green.
BSE Bankex index advanced by 188.34 points to close at 11,290.08. Scrips that grew are Kotak bank 4.74%, IOB 3.41%, Andhra bank 3.15%, Andhra bank 3.15%, BOI 3.05% and SBI 2.97%.
BSE IT index closed with marginal gains of 10.26 points at 4,591.87. Scrips that gained are Karut Net 10%, Aptech 4.41%, I-Flex 3.54%, Rolta India 2.97%, Finance tech 1.51% and Satyam 1.04%.
Sensex garners 338 points
The market surged today led by rally in index heavyweight Reliance Industries. The market got a boost from reports the government has allowed all trusts to invest in securities, including shares and bonds of listed companies.
Oil & gas, metal, capital goods and power stocks were in demand. IT stocks slipped. Mid-cap and small-cap shares gained momentum. The market breadth was strong. 25 out of 30 stocks from the Sensex pack were in green. Asian markets, which opened before Indian markets, were mixed. Key European markets were closed today, 26 December 2007.
The government on Monday, 24 December 2007 allowed all trusts to invest in securities, including shares and bonds of listed companies. Accordingly, charitable trusts, including educational institutions, hospitals and religious trust, will be able to access the market. The move will give a boost to the already-booming equities market as a large number of trusts, such as schools, temples and private hospitals having huge resources will be able to invest their funds in the market. Trusts had a corpus of nearly Rs 25,000 crore by the beginning of the decade, according to data gathered by the government for tax purposes.
The 30-share BSE Sensex jumped 338.40 points or 1.70% to 20,192.52. Sensex touched a high of 20,211.47 in late trade. At day’s high it rose 357.35 points.
The broader CNX S&P Nifty rose 85.65 points or 1.43% to 6070.75.
Investors appear to have begun building positions in anticipation of strong Q3 December 2007 results which are due next month.
The BSE Mid-Cap index rose 2.05% to 9,400.86. The BSE Small-Cap index rose 3.02% to 12,342.49. Both these indices outperformed the Sensex.
The market breadth was strong. On BSE, 2283 shares advanced as compared to 639 that declined. 23 shares were unchanged.
BSE clocked a turnover of Rs 7620 crore compared to Monday (24 December 2007)'s Rs 5,694.27 crore.
Nifty December 2007 futures were at 6076.50, a premium of 5.75 points as compared to the spot closing of 6070.75.
The NSE's futures & options (F&O) segment turnover was Rs 96,144.43 crore, which was higher than Rs 80,577.10 crore on Monday, 24 December 2007.
India’s largest private sector firm by market capitalization & oil refiner Reliance Industries jumped 3.90% to Rs 2896.70.
The BSE Oil & Gas index rose 3.45% to 13,115.99. It outperformed the Sensex. HPCL spurted 6.78% to Rs 340.10, Indian Oil Corporation jumped 6.55% to Rs 692.55, BPCL flared up 5.46% to Rs 475.45, and GAIL India rose 2.92% to Rs 538. However, ONGC, India's biggest oil exploration firm in terms of revenue, fell 0.90% to Rs 1236.20.
The BSE Metal index rose 2.50% to 19,291.34. It outperformed the Sensex. Hindalco Industries jumped 4.18% to Rs 209.40, Sterlite Industries gained 2.64% to Rs 1026.85, and Hindustan Zinc rose 2.59% to Rs 791.25. National Aluminum Company lost 1.66% to Rs 438.10.
The world's sixth-largest steel maker Tata Steel rose 3.51% to Rs 892.75 on reports the company is eyeing the Western Cluster Iron Ore deposits in Liberia, for which it has already submitted a bit. The Western Cluster consists of several deposits spread over 207.58 square kilometer and the investment is likely to be around $1.5 billion.
India's largest steel producer in terms of sales Steel Authority of India (Sail) rose 0.60% to Rs 270.05 on reports the company will invest Rs 20,000 crore in West Bengal.
The BSE Capital Goods index rose 2.24% to 19,654.31. It outperformed the Sensex. Bharat Heavy Electricals jumped 2.63% to Rs 254.65, Larsen & Toubro rose 2.57% to Rs 4193.85, HEG spurted 3.83% to Rs 562.65, BEML gained 3.79% to Rs 1669.79, and Jaiprakash Associate rose 2.70% to Rs 431.65.
The BSE Auto index was up 1% to 5,642.90. It underperformed the Sensex. India's top tractor maker by sales Mahindra & Mahindra (M&M) rose 1.21% to Rs 833.55 on reports that the company is all charged up for its retail foray. The retail foray will be through Mahindra Intertrade, a subsidiary of M&M that has thus far been selling LEGO toys and other kids products.
India's top car maker by sales Maruti Suzuki India rose as much as 0.31% to Rs 993.25 after the company said it will raise prices of some vehicles by 2-3% in January 2008 because of higher raw material costs.
Tata Motors gained 3.31% to Rs 752.10, Hindustan Motors jumped 4.37% to Rs 54.90, Ashok Leyland rose 1.83% to Rs 50.20, Exide Industries spurted 5.07% to Rs 77.70 and Escorts gained 2.59% to Rs 150.55.
The BSE IT index rose 0.22% to 4,591.87, off day’s low of 4,526.14. It underperformed the Sensex. Infosys Technologies rose 0.15% to Rs 1813.60, Wipro gained 0.07% to Rs 535.70, and Satyam Computers rose 1.04% to Rs 459.30. However, TCS fell 0.99% to Rs 1097.75.
The BSE Banking index rose 1.70% to 11,290.08. India’s largest private sector bank by assets ICICI Bank rose 0.95% to Rs 1219.40.
India's largest commercial bank State Bank of India rose 2.97% to Rs 2399.35 on reports it plans to merge all the associate banks with itself by March 2009.
Kotak Mahindra Bank jumped 4.74% to Rs 1252, Indian Overseas Bank rose 3.41% to Rs 180.55, Karnataka Bank flared up 3.27% to Rs 217.75, and Andhra Bank gained 3.15% to Rs 106.50.
Telecom stocks were in demand. India’s largest listed cellular service provider by market share Bharti Airtel rose 1.28% to Rs 982.55. India’s second largest listed telecom service provider by sales Reliance Communications jumped 2.46% to Rs 743.15. India’s third largest listed telecom service provider by sales Idea Cellular rose 0.73% to Rs 131.55.
North-based telecom service provider Spice Communications jumped 5.36% to Rs 62.90 on reports that the board of the company has decided to sell 875 telecom towers to a tower operating company.
Telecom service provider Gemini Communication soared 10.05% to Rs 230.60 after the company bagged an order worth Rs 200 crore from BSNL.
State run telecom equipment maker ITI was locked at upper limit of 10% at Rs 63.40 on reports the firm is seeking a Rs 2,000 crore government aid to wipe out accumulated losses and to obtain working capital for telecom equipment manufacturing. A committee has been set up by the centre to finalise the package. The share may be under action on likely government aid.
The BSE Power index rose 2.08% to 4,443.76. It outperformed the Sensex. Reliance Energy gained 2.58% to Rs 2111.95, Power Grid Corporation of India rose 3.33% to Rs 141.05, Tata Power gained 1.66% to Rs 1348.15, and NTPC rose 1.31% to Rs 239.35.
Diverisified firm Assam Company was locked at upper limit of 5% at Rs 47.05 on reports that the company plans to hive off oil and gas business unit into separate subsidiary.
Anil Dhirubhai Ambani group firm Reliance Capital (RCL) soared 7.25% to Rs 2624.85. Earlier on 22 December 2007, some reports suggested that Reliance Capital’s unlisted subsidiary Reliance Technology Ventures (RTVL) had invested in US-based telecom solution provider Stoke Inc for an undisclosed sum. The US-based firm enables telecom operators to solve security services problems across different broadband access.
Reliance Petroleum clocked the highest turnover of Rs 241.99 crore on BSE. Essar Oil (Rs 219.91 crore), NDTV (Rs 213.27 crore), Reliance Energy (Rs 199.78 crore) and Reliance Industries (Rs 173.99 crore), were the other turnover toppers on BSE that order.
GV Films registered the highest volumes of 2.41 crore shares on BSE. Ispat Industries (1.93 crore shares), IKF Technologies (1.79 crore shares), Bellary Steels & Alloys (1.23 crore shares) and Reliance Petroleum (1.08 crore shares), were the other volume toppers on BSE in that order.
Asian markets were trading mixed today, 26 December 2007. Key indices in China, Japan and Singapore were up between 0.62% to 1.23% . However, key indices in Taiwan, and South Korea were down between 0.13% to 0.66%.
US market finished higher on Monday, 24 December 2007 after credit worries eased following news Merrill Lynch will receive an investment of up to $6.2 billion from Singapore's government-controlled investment fund, Temasek Holdings, and US-based money manager Davis Selected Advisors. The Dow Jones industrial Average rose 98.87 points at 13,549.33. The Nasdaq Composite Index, finished higher by 21.51 points at 2,713.5. S&P 500 finished higher by 11.99 points at 1,496.45.
Oil prices edged higher today, 26 December 2007, on new supply concerns amid expectations that data from the US will show a new decline in its oil inventories. Light, sweet crude for February delivery added 26 cents to $94.39 a barrel in Asian electronic trading on the New York Mercantile Exchange, Singapore.
Sensex ends on bullish note
Riding on the back of three straight sessions of gains, the Sensex opened firm at 19,941 and crossed the 20,000 mark by mid-morning trades. Short coverings in December derivative contracts and firm global cues triggered major buying in Sensex stocks in morning trades. The Sensex rallied sharply as investors continued to roll over positions to January series and the Sensex touched an intra-day high of 20,212 by afternoon. The market remained buoyant for the entire trading session on substantial buying support from oil, metal, and capital goods stocks. The Sensex finally wrapped up the session with gains of 1.70% or 338 points at 20,193. The Nifty advanced by 1.43% or 85 points at 6,071.
The breadth of the market was positive. Of the 2,945 stocks traded on the BSE, 2,283 stocks advanced, 639 stocks declined and 23 stocks ended unchanged. All the sectoral indices on the BSE ended in positive territory. The BSE Oil & Gas ended firm with gains of 3.49% at 13,121,the BSE Realty index rose 2.82% at 12,152 and the BSE Metal index added 2.34% at 19,262.
Action in several index heavyweights lifted the market. DLF led the pack and shot up by 4.35% at Rs1,014. Hindalco soared 4.18% at Rs209, Reliance Industries surged 3.90% at Rs2,897, Tata Steel flared up by 3.51% at Rs893, Tata Motors jumped by 3.31% at Rs751, SBI added 2.97% at Rs2,399, BHEL advanced by 2.63% at Rs2,555, Reliance Energy moved up by 2.58% at Rs2,112 and L&T was up 2.57% at Rs4,194. However, Bajaj Auto slipped 1.14% at Rs2,682, while TCS at Rs1,098, ONGC at Rs1,236, HLL at Rs215 and HDFC at Rs2,889 dropped marginally.
Over 2.41 crore GV Films shares changed hands on the BSE followed by Ispat Industries (1.92 crore shares), IKF Technologies (1.79 crore shares), Bella Steel (1.23 crore shares) and Reliance Petroleum (1.08 crore shares).
Valuewise, Reliance Energy registered a turnover of Rs199 crore on the BSE followed by reliance Industries (Rs173 crore), Reliance Communications (Rs145 crore), L&T (Rs68 crore) and DLF (Rs52 crore).
Pre Market Watch
The Indian Market is likely to have a positive opening as the US market closed in green while the Asian market is trading mixed. The market closed on an upbeat note by creating a rally across the sectoral indices scrips. The market opened firmly backed by favoring cues from the global markets and keeps on marching forward through out the trading session to close with handsome gains. The cues from the domestic market was good as the BJP got a comfortable victory in the Gujarat state election that wiped off the worries of early national election by the ruling Congress. The IT scrips remained in the limelight today on the back of heavy buying from these baskets ahead of Q3 December 2007 earnings. The BSE Sensex closed higher by 691.55 points at 19,854.12 and NSE Nifty closed up by 218.6 points at 5,985.10. We expect the market to remain volatile during the trading session.
On Monday, the US market closed green. The Dow Jones Industrial Average (DJIA) closed up by 93.72 points at 13,549.33. S&P 500 index closed higher by 12.95 points at 1,496.45 and NASDAQ grew by 21.51 points to close at 2,713.50.
The major stock markets in Asia are trading mixed. Japan''s Nikkei is trading up by 31.08 points at 15,583.67. Singapore Strait Times is trading higher by 18.46 points at 3,452.99 while Taiwan weighted is also trading lower by 67.08 points at 8,099.99.
On Monday, the FIIs stood as the net seller in equity while net buyer in debt. The gross equity purchased was Rs2,561.20 Crore and the gross debt purchased was Rs27 Crore while the gross equity sold stood at Rs3,077 Crore. Therefore, the net investment of equity reported was (Rs515.80 Crore) and net debt was Rs27Crore.
Today, Nifty has support at 5,879 and resistance at 6,081 and BSE Sensex has support at 19,573 and resistance at 20,132.
Daily Trading Calls
Buy Gujarat Narmada Valley Fertiliser with a stop loss of Rs 190 for a target of Rs 255.
Buy GAIL India with a stop loss of Rs 475 for a target of Rs 625.
Buy Arvind Mills with a stop loss of Rs 74 for short-term target of Rs 142.
Grey Market Premium - Transformers, Brigade, BGR
eClerx Services 315 30 to 40
BGR Energy 480 340 to 345
Transformers & Rectifiers 465 330 to 335
Brigade Enterprises 390 25 to 30
Burnpur Cement Ltd. 12 5 to 8
SVPCL 42 DISCOUNT
Aries Agro 120 to 130 25 to 28
Manaksia Ltd. 140 to 160 20 to 25
Porwal Autocomponents 68 to 75 DISCOUNT
Precision Pipes & Profiles 140 to 150 30 to 35
Bullish trend may continue
Firm global markets followed by strong buying interest in heavyweights and sectoral stocks may help the local indices advance further. However, FIIs remaining net sellers in equities may put some pressure on investor sentiment and the market may see some volatility in later part of the day. Among the key local indices, the Nifty has a support at 5,600 and a break below this level could see it slip further to 5,540, while on the upside the index could test higher level in the 6,000-6,400 range. The Sensex has a likely support at 18,600 and may face resistance at 19,830.
US indices closed higher on Monday as investors remained buoyant on financial services sector after one of the Wall Street firm announced a big foreign cash investment. The Dow Jones gained about 99 points at 13549, while the Nasdaq added 22 points at 2714.
Crude oil prices moved up marginally. The US light crude oil for February series surged by 82 cents at $94.13 a barrel. In the commodity space, the Comex gold for February delivery surged by $1.10 to settle at $816.50 an ounce.
Trading Calls
Nifty (5985) Sup 5909 Res 6060
Buy GAIL (523) SL 518
Target 533, 536
Buy GNFC (210) SL 205
Target 220, 222
Buy Dr Reddy’s (720) SL 714 Target 732, 735
Buy NDTV (435) SL 430
Target 445, 448
Sell Voltas (241) SL 246
Target 232, 230
Welcome…can bulls have the last laugh?
Pleasure that comes unlooked for is thrice welcome.
The festive season appears to be entertaining on Dalal Street as bulls take pleasure in lapping on gains. Comedies of today may not make you laugh much but with movies like Welcome doing well at the box office, there sure are some people laughing their way to the bank. More on movies later. The holiday cheer and yuletide spirit is expected to continue on Dalal Street for a while, with global markets holding up in the face of nagging concerns about weakness in the US economy.
The bulls did last minute Christmas shopping on Monday, pushing the Sensex and the Nifty up by over 3.5% each. For a change, the large caps hogged the limelight though partly due to some short-covering ahead of Thursday's F&O expiry. FIIs and Mutual Funds did some buying, but their shopping spree was anything but spectacular. The small-cap and mid-cap shares took a breather after the recent run-up. Some more short-covering may take place before the derivative settlement tomorrow as global worries seems to have taken a backseat for a while. Volumes will be on the higher side as is generally the case in an expiry week. We expect the market to open higher. But, it remains to be seen whether the bulls are able to maintain the tempo all through the day. Asian markets are pretty mixed this morning and not much action is expected in other key global markets due to the holiday factor.
Shares of media and entertainment companies may attract investors' attention with films like "Taare Zameen Par" and " Welcome" doing well. While TZP is co-produced by PVR, Welcome is being distributed by the Network 18 group. Multiplex operators such as Inox, Adlabs and Shringar Cinemas could also gain.
US stocks closed higher on Monday at the end of a half-day of trading on the eve of Christmas, as investors snapped up financial shares after Merrill Lynch announced cash infusion from Singapore's Temasek.
Benchmark indexes touched their highest levels in two weeks, after falling interest rates and an agreement to restructure $33.3bn of Canadian commercial debt improved the outlook for credit markets.
Citigroup and AIG led the advance in financial shares as banks' borrowing costs decreased for a fifth day. Target led retailers higher after activist investor William Ackman said that he held talks with management about boosting the stock price.
The S&P 500 rose 12 points, or 0.8%, to 1,496.45, bringing its yearly gain to 5.5%. The Dow Jones Industrial Average advanced 99 points, or 0.7%, to 13,549.33. The Nasdaq Composite Index added 22 points, or 0.8%, to 2,713.50.
Market breadth was positive. More than 11 stocks gained for every three that fell on the New York Stock Exchange. Trading volume was light throughout the day. US markets were closed on Tuesday on account of Christmas.
Thursday will see the release of a key report on US consumer confidence, and on Friday the government will release data on new home sales for November.
Apart from the cash infusion, Merrill Lynch also announced that it will sell its commercial finance unit, Merrill Lynch Capital, to the finance branch of General Electric (GE). Terms of that deal were not disclosed.
GE shares rose 2% on the news. Shares of Merrill Lynch, which were up nearly 4% in early trading, ended Monday a little more than 3% lower.
Treasury prices fell, raising the yield on the 10-year note to 4.21% from 4.16% late on Friday. US light crude oil for January delivery rose 84 cents to $94.15 per barrel in New York. In currency trading, the dollar fell versus the euro and gained against the yen. COMEX gold for February delivery rose $1.10 to $816.50 an ounce.
Asian stocks rose for the fourth day, led by Toyota after the company lifted its sales forecast for next year. Toyota gained the most in three weeks and was the single biggest contributor to the advance in the MSCI Asia Pacific Index.
Canon shares climbed after a report showed that US Christmas sales increased. Mediatek fell by the daily limit in Taipei after cutting its fourth-quarter sales forecast for the second time since November.
The MSCI Asia Pacific Index rose 0.2% to 156.66 as of 11:37 a.m. in Tokyo, with all but one of its 10 industry groups climbing. The index has added 11% this year and is on course for its fifth annual increase.
Benchmarks in Asian markets open for trading gained, except in Taiwan, South Korea and Malaysia. Taiwan's Taiex index lost 1.1%, the biggest decline in the region. Markets in Australia, New Zealand and Hong Kong are closed.
Festive spirit may continue!
Markets continued their upward trend for fourth straight trading session as
Finally, 30-share Sensex closed at 19,854 surging 691 points and Nifty gained 218 points to close at 5,985.
Gail jumped by over 9% to Rs528 after reports stated that they would issue bonus shares in next 3-6 months. The scrip touched an intra-day high of Rs529 and a low of Rs489 and recorded volumes of over 33,00,000 shares on NSE.
Satyam Computer surged by over 7% to Rs458 to Rs458 as reports stated the company would set up a process manufacturing innovation centre of excellence (PROMICE) in
Gujarat Apollo surged by over 4% to Rs328 after the company announced that it agreed to sell 49% Johnson Screens
Mascon Global gained 2% to Rs21 after the company announced that they approved plan to raise $50mn in overseas bond sale. The scrip touched an intra-day high of Rs21 and a low of Rs20 and recorded volumes of over 4,00,000 shares on NSE.
Gujarat NRE advanced 1.4% to Rs113 after the company announced that it completed acquisition of Elouera mine from BHP the company also approved hike in FII limit to 74%. The scrip touched an intra-day high of Rs119 and a low of Rs112 and recorded volumes of over 16,00,000 shares on NSE.
Coromandel Fertilizer slipped 2.5% to Rs118 after the company declared that they would temporarily suspend Ennore operations. The scrip touched an intra-day high of Rs126 and a low of Rs117 and recorded volumes of over 68,000 shares on NSE.
Nagarjuna Construction surged by over 5% to Rs338 after the company announced that it secured Rs5.7bn order from government of
Aban Offshore advanced 2% to Rs4680 after the company announced that its subsidiary has entered into a contract with Chevron Offshore (Thailand) Ltd ('Chevron') for provision of the jack-up drilling rig, Deep Driller 2. This contract will commence around end of December 2007. The contract value is approximately US$28mn to US$40mn. The scrip touched an intra-day high of Rs4798 and a low of Rs4631 and recorded volumes of over 77,000 shares on NSE.
Triton Corp gained 2% to Rs32 after the Board of directors of the company approved stock split and also would buy 51% stake in
What the FIIs are doing
FIIs were net buyers of Rs1.76bn (provisional) in the cash segment on Monday while the local institutions pumped in Rs3.33bn.
In the F&O segment, foreign funds were net buyers of Rs19.87bn.
On Thursday, FIIs were net sellers of Rs5.16bn in the cash segment.
Mutual Funds were net buyers of Rs6.58bn on the same day.
Stocks in News:
SAIL to invest Rs200bn in West Bengal, about two fifth’s of its total planned investments. (BS)
State owned India Infrastructure Finance Company to lend Rs18bn to Tata group's Mundra UMPP. (BS)
ONGC-Mittal JV wins block in Trinidad & Tobago with estimated gas reserves of 2tn cubic feet. (FE)
Lanco Infratech in talks with global airport operator as partner in its bids for non metro airports. (Mint)
The Board of SBI will meet on January 25 to consider the merger of six associate banks with the parent. (TOI)
Maruti Suzuki India will hike prices of its vehicles across different models between Rs4,000 and Rs12,000 next week. (ET)
ONGC has agreed to supply natural gas for the proposed 104MW gas based thermal project at Monarchak in West Tripura district. (DNA)
GNFC has lined up an investment of Rs40bn over the next four years. (DNA)
Allied Digital is close to two small-size acquisitions. (DNA)
Coal India subsidiary in talks with Uttar Pradesh Rajya Sabha Vidyut Utpadan Nigam to float a 50:50 JV for setting up a 1,000MW thermal station. (ET)
BPCL is in talks with Japan based Nippon Oil for sharing expertise on fuel-cell cogeneration system. (DNA)
Central education and oil cess to be kept outside the dual goods and service tax structure from April 2010. (BS)
Mobile tariffs for national long-distance calls are set to witness a further drop by 5-10%. (ET)
The Coal Ministry has asked the power ministry to ensure import of at least 20mt of coal next year. (TOI)
The Government is likely to save Rs30bn on fertilizer subsidy bill. (BL).
Market outlook optimistic
The markets opened higher on Monday, and proceeded to extend early gains as the bulls celebrated the weekend gains on the Dow Jones. The prospects of early elections having diminished, the sentiments were further boosted.
The combined exchange market breadth was positive as the BSE & NSE combined figures were 2834 : 1255. The capitalisation of the breadth was also positive as the commensurate figures were Rs 18,105 crs : Rs 1,799 crs.
The F&O data for the session indicated a 1.02 per cent increase in net long positions amid a rising PCR.
The indices have closed at the upper end of the intraday range as the bulls prevailed over the bears and maintained their initiative till the fag end of the session. As I had advocated over the weekend, the oriental charts indicated a “Kouten” scenario - positive for the bulls.
The intraday resistance specified for Monday was easily overcome as the markets factored in the overseas cues. The coming session is likely to witness an intraday range of 5850 on declines and 6120 on advances.
The wide range is due to the big intraday range of Monday, making a large base effect. Traded volumes are below the 10-day average as the festive season is impacting participation.
The outlook for the markets is that of optimism, barring routine profit sales at higher levels. Avoid shorts for now.
Geometric Software
We recommend a buy in Geometric. It is evident from the weekly chart of Geometric that it had been on a long-term downtrend from June high of Rs 131 to November low of Rs 70. The stock found support at Rs 70 and began moving higher. During this up move, the stock penetrated the medium-term down trendline as well as 50-day moving average line on December 7. Following a minor correction, the stock is facing resistance at Rs 90 level. The daily momentum indicator is on the ve rge of entering the bullish region and the weekly momentum indicator has recovered from the oversold region, which indicates bullishness. The daily moving average convergence divergence is featuring in the positive territory.
Immediate support for the stock is pegged at Rs 79 and the next is at Rs 70. Short-term investors can buy the stock with stop-loss at Rs 78. We expect the stock to break through the immediate resistance and move up to the next resistance level of Rs 100 in the short-term.
Via Businessline
Flurry of deal news boost US Market
Merrill Lynch news provide market with a upbeat tone in the short trading day
US Market ended considerably higher in the Christmas Eve short trading day on Monday, 24 December, 2007. The top story of the day was the Merrill Lynch sale of stake to a Singapore based investment fund. Other than that, there was not much of any other catalyst for the market. Crude oil prices ended the session higher by almost 30 cents at $93.6/barrel.
The Dow Jones industrial Average ended the day with a gain of 98.87 points at 13,549.33. The Nasdaq Composite Index, finished higher by 21.51 points at 2,713.5. S&P 500 finished higher by 11.99 points at 1,496.45. Alcoa and GE were a couple of main Dow winners for the day.
Merrill Lynch deal news gave a good boost to the financial sector. The stocks climbed up by 5% to more than $58. The company announced that it will receive up to $6.2 billion from equity sales to the Singapore government wealth fund Temasek Holdings and to Davis Selected Advisors.
Also in the news was Alcoa. The aluminum giant announced last week that it has finally agreed to sell its packaging and consumer businesses to New Zealand-based Rank Group for $2.7 billion. The deal is expected to close by the end of the first quarter. Alcoa shares rose by almost 2%.
Apple shares were mainly responsible for taking Nasdaq higher. Shares of Apple crossed $200 mark for the first time. It ended the day higher by 2.5% at $198.5.
Advancers lead decliners by better than a 5:2 ratio on the NYSE and about 3:2 on the Nasdaq. Volume was modest, as would be expected on a partial holiday.
Daily Technical Analysis
Nifty — The index opened on a strong note and exhibited strength throughout the day’s trading session. It ended the session with a gain of 214 points.
Support & Resistance — The index closed above the 10 dma = 5934 and 20 dma = 5869. Intra day declines should find support around the 5934-5869 band. On the upside, the index faces resistance around 6012 and 6185 level.
Conclusion — Expect test of 6012, break above 6012 can see further strength
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