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Tuesday, April 22, 2008
Volatile market ends buoyant
The market wiped out losses of over 141 points incurred in the first half after a strong bout of buying led by realty and capital goods stocks triggered wide-spread buying in the market. In a highly volatile trading session, the Sensex had opened 52 points lower at 16687 following weakness in Asian indices and crashed to the day's low of 16598 on relentless selling. The market was on a recovery path thereafter. The Sensex witnessed a sharp turnaround in the afternoon as gains in heavyweights propelled it to an intra-day high of 16584. After gyrating 259 points during intra-day trades, the Sensex gained 45 points to close at 16784 whereas the Nifty ended 12 points higher at 5049.
The market breadth ended positive. Of the 2,758 stocks traded on the BSE 1,569 stocks advanced, 1,128 stocks declined and 61 stocks ended unchanged. Except the BSE IT, Teck, Oil& Gas and Auto indices the rest of the sectoral indices ended in positive territory. The BSE Realty index led the pack and gained 3.00% at 7906 followed by the BSE Metal index (up 2.07% at 15529) and the BSE CG index (up 1.90% at 13929).
BHEL was the star performer amongst the heavyweights and the stock soared 5.55% to Rs1,871.80. Among the other major gainers, Jaiprakash Associates advanced 5.41% to Rs245.65, HDFC jumped 3.73% to Rs2,576.75, DLF rose 3.55% to Rs674.40, HDFC Bank moved up by 2.93% to Rs1,487.65, Larsen & Toubro advanced 2.64% to Rs2,920.55 and ACC added 2.39% to Rs819.45. However, TCS, Wipro and Satyam moved down sharply.
Realty stocks were in demand and scaled higher. Ansal Infrastructure soared 9.38% to Rs163.90, Akruti City flared up 8.09% to Rs1,090.10, Puravankara added 6.05% to Rs277, Unitech gained 4.72% to Rs280.50 and Penland was up 4.71% to Rs107.85. In the metal pack, Ispat zoomed 8.10% to Rs36.70, Jindal Steel shot up by 6.25% to Rs2,254.85, JSW Steel rose 5.26% to Rs877.55 and Nalco gained 3.87% to Rs452.80.
Over 3.45 crore IFCI shares changed hands on the BSE followed by Ispat (3.29 crore shares), RNRL (2.72 crore shares), Tata Teleservices (1.43 crore shares) and Orchid Chemicals (1.39 crore shares).
Sixth straight day of gains
The market extend its rally for sixth straight session today led by real estate, cement and infrastructure stocks. However, IT shares faltered after TCS’ earnings disappointed. The market breadth was positive. Recovery in some Asian markets triggered a sharp pull-back from day’s lows in afternoon trade.
Asian markets, which opened before Indian market, were in the red at the onset of the trading session after disappointing results posted by Bank of America Corp, the largest US retail bank, kept concerns about the fallout of the global credit crisis alive. However, markets in Hong Kong, China and Singapore recovered later. European markets, which opened after Indian markets, were in green.
The 30-share BSE Sensex rose 44.54 points or 0.27% at 16,783.87. Sensex gained 114.63 points at day’s high of 16,853.96 hit in early-afternoon trade. It opened with 52.78 points lower at 16,686.55 and slipped further to touch a low of 16,597.53 in early trade. At the day’s low, the Sensex lost 141.80 points.
The broader based S&P CNX Nifty was up 12.30 points or 0.24% at 5,049.30. Nifty April 2008 futures were at 5048, a slight discount of 1.30 points as compared to spot closing.
Market may turn volatile in coming days ahead of the expiry of April 2008 derivative series on Thursday, 24 April 2008. As per reports, Nifty rollover from April 2008 series to May 2008 series stood at 34% while marketwide rollover was 15%, as on Monday, 21 April 2008.
Indian stock market posted gains for the sixth straight session today, 22 April 2008, primarily due to healthy earnings and firm global markets. The 30-share BSE Sensex has gained 1088.77 points or 6.94% in six trading sessions from 15,695.10 on 10 March 2008. From a low of 14,809.49 on 17 March 2008, Sensex has advanced 1974.38 points or 13.33%.
The BSE Mid-Cap index was up 0.78% to 7,037.62 and the BSE Small-Cap index advanced 0.52% to 8,798.08. Both these indices outperformed the Sensex.
The market breadth was positive on BSE with 1563 shares advancing as compared to 1127 that declined. 57 remained unchanged.
The total turnover on BSE amounted to Rs 6,125 crore as compared to Rs 5,883.10 crore yesterday, 21 April 2008. Turnover in NSE’s futures & options segment amounted to Rs 51643.74 crore as compared to Rs 40635.23 crore yesterday, 21 April 2008
Sectoral indices on BSE displayed mixed trend. The BSE Bankex (up 1.59% at 8,716.83), the BSE Health Care index (up 0.74% at 4,192.26), the BSE Metal index (up 2.07% to 15,529.38), the BSE Capital Goods index (up 1.90% at 13,928.71), the BSE FMCG index (up 0.63% at 2,380.94), the BSE Realty index (up 3% at 7,906.14), the BSE Power (up 1.12% to 3,318.13), the BSE Consumer Durables index (up 1.75% to 4,432.75), and the BSE PSU index (up 0.87% to 7,967.56), outperformed the Sensex
The BSE IT index (down 4.32% to 3,930.47), the BSE Auto (down 0.04% at 4,546.21), the BSE TecK index (down 2.40% to 3,263.43), and the BSE Oil & Gas index (down 0.34% to 11,477.39), underperformed the Sensex.
Among the Sensex pack, 18 advanced while the rest declined.
IT pivotals tumbled after India’s largest software services exporter TCS was downgraded by foreign brokerages after its earnings disappointed. TCS slumped 10.94% to Rs 884 on 8 lakh shares after the company reported 5.95% fall in net profit to Rs 1108.81 crore on 2.23% rise in net sales to Rs 4942.49 crore in Q4 March 2008 over Q3 December 2007. The results were announced after trading hours on Monday, 21 April 2008. It was the top loser from Sensex pack.
Other IT pivotals were not spared either. Infosys (down 2.42% to Rs 1605.30), Wipro (down 4.11% to Rs 435), and Satyam Computer Services (down 5.44% to Rs 434), slipped
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries was down 1.55% of Rs 2601.30 despite posting 24% rise in net profit to Rs 3912 crore on 36.27growth in total income to Rs 37575 crore in Q4 March 2008 over Q4 March 2007. Reliance Industries (RIL)’s gross refining margin (GRM) increased to $15.5 per barrel in Q4 March 2008 as compared to $13 a barrel in Q4 March 2007. The company announced the results after trading hours on Monday, 21 April 2008.
India’s top pharma company in terms of sales, Ranbaxy Laboratories slipped 2.80% to Rs 485 after the company entered into strategic business alliance with Orchid Chemicals & Pharmaceuticals involving multiple geographies and therapies for both finished dosage formulations and active pharmaceutical ingredients. Orchid Chemicals & Pharmaceuticals shares slipped 1.44% to Rs 245.80
Grasim (down 1.85% to Rs 2595), and Mahindra & Mahindra (down 1.59% to Rs 629.05), edged lower from Sensex pack.
India’s biggest dam builder Jaiprakash Associates surged 6% to Rs 247 on 51.36 lakh shares. It was the top gainer from Sensex pack
Bharat Heavy Electricals, the country’s largest state run engineering company in terms of outstanding order book position gained 5.84% to Rs 1877 on reports the company has won orders worth around Rs 2030 crore for supply and installation of the main plan package at Nabinagar thermal power plant project in Bihar.
Oil and Natural Gas Corporation, the country's largest oil exploration company in terms of market capitalisation, rose 2.06% to Rs 1051 despite the Income Tax department slapping a Rs 1,768.49 crore claim on the company for giving discounts on crude to public sector oilmarketing companies under orders from the government.
Shares from real estate sector advanced on fresh buying. DLF (up 3.49% to Rs 674), Indiabulls Real Estate (up 1.67% to Rs 503.90), Unitech (up 4.91% to Rs 280.90), Purvankara Projects (up 6.05% to Rs 277), and Ansal Infrastructures (up 10.56% to Rs 165.60), also surged.
Cement shares gained after UltraTech Cement reported good Q4 results during trading hours. UltraTech Cement Company jumped 6.20% to Rs 820. ACC (up 2.46% to Rs 820), Binani Cement (up 5.58% to Rs 86.05), India Cements (up 3.35% to Rs 193), advanced
However, UltraTech Cement said at the time of announcing the Q4 results that continuous government intervention to rein in cement prices has resulted in uncertain price environment, which along with significant increase in input costs will have an adverse impact on margins.
HDFC (up 3.86% to Rs 2580), HDFC Bank (up 3.10% to Rs 1490), and Larsen & Toubro (up 2.69% to Rs 2922) edged higher from Sensex pack.
Kiri Dyes and Chemicals settled with 5.7% premium on debut at Rs 158.55 on BSE compared to IPO price of Rs 150. The stock debuted at Rs 151 a premium of 0.06% over initial price offer (IPO) of Rs 150. On BSE, 35.10 lakh shares were traded in the counter.
Among the stocks with high volumes, IFCI surged 17.70% to Rs 59.85 on 3.45 crore shares. Reliance Natural Resources gained 7.02% to Rs 118.20 on 2.71 crore shares. Ispat Industries advanced 8.10% to Rs 36.70 on 3.27 crore shares. Tata Teleservices (Maharashtra) gained 6.91% to Rs 36.35 on 1.43 crore shares. Nagarjuna Fertilisers & Chemicals rose 2.55% to Rs 50.25 on 93 lakh shares.
Orchid Chemicals topped the turnover charts on BSE clocking turnover of Rs 355.30 crore followed by Reliance Natural Resources (Rs 314 crore), Reliance Industries (Rs 220.70 crore), Kiri Dyes (Rs 212.70 crore) and IFCI (Rs 193.50 crore) in that order.
PSL gained 3.12% to Rs 316 after the company said it has secured two orders worth Rs 1,225 crore from Larsen & Toubro and HPCL-Mittal for laying pipelines.
Everest Kanto Cylinder gained 1.87% to Rs 307.70 after the company said it has successfully completed the acquisition of all the assets of CP Industries, Inc. United States for $66.3 million.
Shyam Telecom jumped 10% to Rs 109.45 on reports it is in advanced talks with Reliance Telecom Infrastructure, for first active infrastructure sharing arrangement in the country.
United Spirits declined 5.18% to Rs 1,665 even as the company reported 21.7% rise in net profit to Rs 65.11 crore in on 16.5% rise in net sales to Rs 758.98 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on 21 April 2008.
Escorts rose 5.3% to Rs 104.40 on reporting 44.3% rise in net profit to Rs 9.68 crore inon 7.4% decline in net sales to Rs 531.47 crore in Q2 March 2008 over Q2 March 2007
Key European markets, which opened after Indian markets were trading higher. Indices from United Kingdom (up 0.20% to 6,064.90), France (up 0.28% to 4,924.01), and Germany (up 0.32% to 6,80834) rose.
Asia markets were mixed. Japan's Nikkei (down 1.09% at 13,547.80), Taiwan's Taiwan Weighted (down 0.51% at 9,037.25), and South Korea's Seoul Composite (down 0.72% at 1,788.06), edged lower. However, Shanghai Composite (up 0.99% to 3,147.33), Hong Kong's Hang Seng (up 0.88% at 24,939.45), and Singapore's Straits Times (up 0.51% at 3,187.23) gained
US markets ended mixed yesterday, 21 April 2008, as quarterly results from Bank of America fueled worries about bank earnings, while energy and tech stocks gained. The Dow Jones industrial average slipped 24.34 points, or 0.19%, to 12,825.02. The Standard & Poor's 500 index fell 2.16 points, or 0.16%, to 1,388.17, while the Nasdaq composite index gained 5.07 points, or 0.21%, to 2,408.04.
New York's main crude oil futures contract, light sweet crude, fell 5 cents to $117.43 per barrel in Asian trading today, 22 April 2008. The benchmark contract had struck a new peak in intraday trading of $117.76 before closing at a record $117.48 on Monday, 21 April 2008 at the New York Mercantile Exchange
Market may remain cautious
The market is likely to remain cautious and witness sideways movement during intra-days. The US market closing flat and major Asian indices like Nikkei and Hang Seng falling around 1% each in morning trades may trigger early selling in the domestic market. However, figures showing strong FII buying might lift the investors sentiment and may lead to buying. On the technical side, the Nifty may get support at 4950 and could test higher levels of 5050, while the Sensex may face resistance at 16900 and has a support at 16600 on the downside.
US indices finished on a flate note on Monday. While the Dow Jones ended in negative at 12825 declined by 24 points, the Nasdaq up by 5 points at 2408.
Indian ADRs witnessed mixed trend. Patni led the downfall with a slump of 4.56% followed by Satyam down by 3.54% while VSNL and Infosys dropped around 1% each. Wipro and Tata Motors were down 0.50% each However, MTNL gained 6.06%, ICICI Bank soared 4.58%, HDFC Bank up with 2.10% and Dr Reddy advanced 0.91% while Rediff reported steady gain.
Crude oil prices in the US market edged higher, with the Nymex light crude oil for May delivery gaining 79 cents to close at $117.48 a barrel and in the commodity space, the Comex gold for June series flared up $2.40 to settle at $917.60 a troy ounce.
Market may get earnings boost
The market is likely to extend its gains for the sixth straight session today, 22 April 2008 fuelled by better than expected results from Indian's top company in terms of markjet capitalisation Reliance Industries released yesterday after market hours.
The near-term market will be driven by the quality of earnings rolled out by corporates in the coming days. Important corporate numbers due today, 22 April 2008, are Ranbaxy Laboratories, UltraTechCement and Biocon.
Market may turn volatile in coming days ahead of the expiry of April 2008 derivative series on Thursday, 24 April 2008. As per reports, Nifty rollover from April 2008 series to May 2008 series stood at 34% while marketwide rollover was 15%.
Asian markets were trading lower today, 22 April 2008. Japan's Nikkei (down 1.12% at 13,542.81), Hong Kong's Hang Seng (down 0.99% at 24,476.29), Taiwan's Taiwan Weighted (down 0.67% at 9,022.27), Singapore's Straits Times (down 0.41% at 3,157.98) and South Korea's Seoul Composite (down 0.49% at 1,791.58), edged lower.
US markets ended mixed yesterday, 21 April 2008, as quarterly results from Bank of America fueled worries about bank earnings, while energy and tech stocks gained. The Dow Jones industrial average slipped 24.34 points, or 0.19%, to 12,825.02. The Standard & Poor's 500 index fell 2.16 points, or 0.16%, to 1,388.17, while the Nasdaq composite index gained 5.07 points, or 0.21%, to 2,408.04.
Back home, the Indian stock market posted fgains for the fifth straight session yesterday, 21 April 2008, shrugging off a steep 50 basis points hike in cash reserve ratio (CRR) announced by the Reserve Bank of India late on Thursday, 17 April 2008. The 30-share BSE Sensex was up 258.13 points or 1.57% at 16,739.33 and the S&P CNX Nifty advanced 78.60 points or 1.59% at 5,037 on that day.
The BSE Sensex has now gained 1,044.23 points or 6.65% in five straight sessions from 15,695.10 on 10 April 2008
As per provisional data, foreign institutional investors (FIIs) yesterday , 21 April 2008 bought shares worth a net Rs 169.66 crore. Domestic funds purchased stocks worth a net Rs 111.58 crore on that day.
FIIs were net buyers of Rs 1,078.11 crore in the futures & options segment on Monday, 21 April 2008. They were net buyers of index futures to the tune of Rs 394.02 crore and bought index options worth Rs 609.09 crore. They were net buyers of stock futures to the tune of Rs 82.74 crore and sold stock options worth Rs 7.74 crore.
Morning Call - Apr 22 2008
Market Grape Wine :
In House :
Nifty at a supp at of 4990 and 4930 with a resist of 5055 and 5095
Cash:
Sell: LT below 2845 with a tgt of 2780 with a SL of 2869
Sell: REL below 1345 with a tgt of 1310 with a SL of 1360
F&O
Buy: JPASS above 229 with a tgt of 245 with a SL of 220
Out House :
Markets at a support of 16546 & 16651 and resistance at 16868 & 16996 levels .
Buy : RPL & EssarOil
Buy : RIL
Buy : Titan & LT
Buy : IOLN
Buy : MRPL
Buy : GujNRE
Buy : Kotak & SBIN
Buy : Centurytex & Kotak
Buy : HDIL & IBulls
Dark Horse : Kotak , EssarOil , GujNRE , ITC , ZEE , IOLN , RIL , HDIL & RPL
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