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Thursday, July 10, 2008

NSE Bulk Deals to Watch - July 10 2008


Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-JUL-2008,ASIANELEC,Asian Electronics Ltd,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,376930,84.76,-
10-JUL-2008,ASIANELEC,Asian Electronics Ltd,YUVAK SHARE TRADING PVT LTD,BUY,173464,88.39,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,93770,104.30,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,ASSET ALLIANCE SECURITIES PVT. LTD.,BUY,89810,103.75,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,BUY,134017,104.63,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,BUY,261255,102.05,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,G RAMAKRISHNA,BUY,132000,104.39,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,PRASHANT JAYANTILAL PATEL,BUY,110084,106.09,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,R APPALA RAJU,BUY,137000,102.91,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,R.M. SHARE TRADING PVT LTD,BUY,119835,104.94,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,SANJAY BHANWARLAL JAIN,BUY,96685,104.58,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,TIRUPATI ONLINE,BUY,140079,105.70,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,314896,104.26,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,VIPUL PANNALAL SHAH,BUY,139611,104.63,-
10-JUL-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,113595,297.88,-
10-JUL-2008,GSSAMERICA,GSS America Infotech Limi,PRASHANT JAYANTILAL PATEL,BUY,96587,305.13,-
10-JUL-2008,HAVELLS,Havells India Limited,SAIF III MAURITIUS COMPANY LIMITED,BUY,405356,359.96,-
10-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,176238,151.95,-
10-JUL-2008,SPICEMOBIL,Spice Mobiles Limited,MAHESH KUMAR AHLUWALIA,BUY,800000,22.74,-
10-JUL-2008,SUBHASPROJ,Subhash Proj & Mkt Ltd.,INDEA CAPITAL PTE LTD A/C INDEA LONG TERM OPPORTUNITIES MAST,BUY,497401,202.50,-
10-JUL-2008,ASIANELEC,Asian Electronics Ltd,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,342936,84.62,-
10-JUL-2008,ASIANELEC,Asian Electronics Ltd,YUVAK SHARE TRADING PVT LTD,SELL,156148,88.50,-
10-JUL-2008,BASML,Bannari Amman Spinning Mi,ACCURATE FINSTOCK PVT LTD,SELL,112000,64.38,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,93770,104.41,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,ASSET ALLIANCE SECURITIES PVT. LTD.,SELL,89810,103.93,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,CHOKHANI SECURITIES LTD,SELL,134017,104.92,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,SELL,224255,101.69,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,G RAMAKRISHNA,SELL,132000,104.20,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,PRASHANT JAYANTILAL PATEL,SELL,110084,105.55,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,R APPALA RAJU,SELL,137000,103.38,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,R.M. SHARE TRADING PVT LTD,SELL,119835,105.28,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,SANJAY BHANWARLAL JAIN,SELL,96685,104.85,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,TIRUPATI ONLINE,SELL,125079,108.94,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,316896,104.62,-
10-JUL-2008,FIRSTWIN,First Winner Industries L,VIPUL PANNALAL SHAH,SELL,139611,104.47,-
10-JUL-2008,GSSAMERICA,GSS America Infotech Limi,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,113595,297.90,-
10-JUL-2008,GSSAMERICA,GSS America Infotech Limi,PRASHANT JAYANTILAL PATEL,SELL,96587,305.41,-
10-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,176238,152.05,-
10-JUL-2008,SPICEMOBIL,Spice Mobiles Limited,SURENDRA NARAINDAS SAJNANI,SELL,800000,22.74,-
10-JUL-2008,SUBHASPROJ,Subhash Proj & Mkt Ltd.,HSBC FINANCIAL SERVICES(MIDDLE EAST) LIMITED,SELL,497401,202.50,-

Post Session Commentary - July 10 2008


The domestic market ended the day in flat note due to the selective buying and selling across the board. Market did not reacted much to the huge fall in US markets on Wednesday. Indian market opened on back foot tracking weak cues from the global markets and soon it recovered its initial losses but was not able to sustain the momentum and kept on moving in the positive and negative region through out the session. Market witnessed some selling pressure in afternoon trade due to heavy sell off in European markets but again turned volatile, and ended flat. Trading remains dull today as investors did not showed any keen interest in picking up stocks. From the sectoral front, metal index was in limelight as most of the buying witnessed in this basket while selling pressure led by the weakness in oil & gas, IT, auto, reality, capital goods, bank and FMCG stocks. The market breadth was positive as 1453 stocks closed in green while 1171 stocks closed in red and 73 stocks remained unchanged.

The BSE Sensex closed lower by 38.02 points at 13,926.24 and NSE Nifty ended up by 5.10 points at 4,162.20. The BSE Mid Caps and Small Cap closed positive with gain of 4.52 points and 19.36 points 5,475.20 and 6,809.24 respectively. The BSE Sensex touched intraday high 14,047.43 of and intraday low of 13,763.94.

Lossers from the BSE are Maruti Suzuki (3.56%), ITC Ltd (2.34%), Relaince (1.72%), JP Associates (1.33%), Tata Motors (1.25%), ICICI Bank Ltd (0.83%), Infosys Tech (0.82%), BHEL (0.77%), NTPC Ltd (0.77%) and TCS Ltd (0.76%).

Gainers from the BSE are Hindalco (5.49%), ACC Ltd (3.12%), Tata Steel (3.11%), Ambuja Cement (2.46%), Relaince Infra (2.35%), DLF Ltd (1.79%) and HDFC (1.07%).

The Oil & Gas index ended down by 53.51 points at 9,079.59. As Relaince (1.72%) and Reliance Natural Resources (0.48%) closed in negative territory.

The Auto index lost 40.35 points to close at 3,565.67. Major lossers are Maruti Suzuki (3.56%), Hero Honda Motors (2.73%), Ashok Leyland (1.32%), Tata Motors (1.25%), Bosch Ltd (0.88%) and Apollo Tyre (0.62%).

The IT Index closed lower by 30.67 points at 4,189.40. Lossers are Moser Bayer (3.71%) along with Mphasis Ltd (2.68%), NIIT Ltd (2.26), Financ Tech (1.90%), Aptech Ltd (1.37%), Infosys Tech (0.82%) and TCS Ltd (0.76%).

The Reality index ended down by 25.14 points at 4,835.39. Lossers are Indiabulls Real (5.71%), Pheonix Mill (5.19%), Ansal Infra (3.59%), Housing Development (3.34%), Penland Ltd (2.52%), and Mahindra Life (1.52%).

The Capital Goods index closed down by 24.71 points at 11,340.05. Lossers are Punj Lloyd (3.01%), ABB Ltd (2.63%), BEML Ltd (2.39%), Bharat Elect (1.89%), Thermax Ltd (1.80%) and Areva (1.66%).

The Metal index went up by 316.55 points at 12,959.17. Gainers are Nalco (8.57%), Ispat Industries (6.44%), Hindustan Zinc (6.19%), Hindalco (5.49%), Steel Authority (3.18%) and Tata Steel (3.11%).

Sensex ends flat amid sharp volatility


After gaining around 615 points in yesterday's session, the market witnessed a strong relief rally in early trades led by across-the-board buying. However, the Sensex witnessed widespread selling, as traders tried to book profits by mid morning trades and the index touched the early low of 13,764. While the market fluctuated sharply thereafter, a firm bullish sentiment came in noon trades as strong buying in heavyweights, metal and PSU stocks trimmed the loss and ended flat. The Sensex gyrated 283 points during intra-day trades and finally ended the session with a marginal loss of 38 points at 13,764, whereas the Nifty gained 5 points at 4,162.

The market breadth was positive. Of the 2,697 stocks traded on the BSE, 1,453 stocks advanced, 1,171 stocks declined and 73 stocks ended unchanged. With the exception of BSE Metal Index and BSE PSU Index, all other sectoral indices were down. BSE Auto Index, BSE IT Index and BSE FMCG Index lost over 0.60-1% each, while BSE Oil & Gas, Realty, Teck, Bankex, Power, CG, CD and HC Indexes declined and closed with steady loss.

Selling was rampant in several index heavyweights. Maruti triggered a major sell-off in the market and tumbled by 3.56% at Rs567.70. Among the other major losers, ITC dropped 2.34% at Rs179.20, Reliance Industries declined by 1.72% at Rs2,044, Jaiprakash Associates lost 1.33% at Rs171 and Tata Motors shed 1.25% at Rs399.50. However, Hindalco managed to report gains and jumped by 5.49% at Rs153.65, ACC advanced 3.12% at Rs552.80, Tata Steel added 3.11% at Rs698.95 and Reliance Infrastructure gained 2.35% at Rs855.10. Over 1.91 crore IFCI shares changed hands on the BSE followed by Reliance Natural Resources (1.69 crore shares), Ispat Industries (1.67 crore shares), Reliance Petroleum (0.92 crore shares) and Chambal Fertilisers (0.77 crore shares).

Bajaj Auto rallies amid stock-specific buying


The market ended little changed today after witnessing a bout of volatility in the day. Investors refrained building large positions ahead of the weekly inflation data and Index of Industrial Production (IIP) data for May 2008 to be released by the government tomorrow, 11 July 2008.

The Sensex ended in the red while the Nifty ended slightly higher. All sectoral indices on BSE barring BSE Metal index and BSE PSU index, were negative. India's largest aluminium producer by sales Hindalco surged.

As per provisional data, foreign funds today, 10 July 2008, sold shares worth a net Rs 551.67 crore. Domestic funds sold shares worth a net Rs 112.46 crore.

The 30-share BSE Sensex lost 38.02 points or 0.27% at 13,926.24. It shed 200.32 points at the day’s low of 13,763.94 hit in afternoon trade. At the day’s high of 14,047.43, the Sensex gained 83.17 points in early trade.

The broader based S&P CNX Nifty rose 5.1 points or 0.12% at 4162.20. Nifty July 2008 futures were at 4146, at a discount of 13.2 points as compared to spot closing.

The BSE Mid-Cap index rose 0.08% at 5,475.20, while the BSE Small-Cap index was up 0.29% at 6,809.82.

The market breadth was strong on BSE, with 1453 gainers as against 1171 losers. 73 stocks remained unchanged.

BSE clocked a turnover of Rs 4807 crore as against Rs 5,093.01 on Wednesday, 9 July 2008. NSE's futures & options (F&O) segment turnover was Rs 35645.89 crore, which was lower than Rs 47907.81 crore on Wednesday, 9 July 2008.

India's largest aluminium producer Hindalco surged 5.49% to Rs 153.65 and state-run National Aluminium Company jumped 8.57% to Rs 360.25 tracking London Metal Exchange aluminium futures which surged to a record high of $3,350 a tonne.

The BSE Metal index outperformed the Sensex, rising 2.50% at 12,959.17. Ispat Industries (up 6.44% at Rs 23.95), Hindustan Zinc (up 6.19% at Rs 550.20), Steel Authority of India (up 3.18% at Rs 139.70), and Sterlite Industries (up 1.93% at Rs 650.80), soared.

World’s sixth largest steel maker Tata Steel rose 3.11% at Rs 698.95 on reports the company plans to list a holding firm for steel and raw material assets outside India, on the London Stock Exchange to raise funds for acquiring iron ore and coal mines.

Cement pivotals rose. ACC (up 3.12% at Rs 552.80), and Ambuja Cement (up 2.46% at Rs 79), advanced.

Shares of public sector units witnessed buying interest on hopes the government may kickstart divestment of state-run units following Left's withdrawal of support to the government. MMTC (up 10% at Rs 22,678.60), Power Grid Corporation of India (up 4.69% at Rs 88.25), NMDC (up 4.01% at Rs 251.80), and Chennai Petroleum (up 3.93% at Rs 289.80), spurted. The BSE PSU index outperformed the Sensex, rising 1.79% at 6,073.82

Over the last four years, Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank. Left parties on Tuesday said they are withdrawing support to the Congress-led United Progressive Alliance government to protest Indo-US nuclear deal.

Auto stocks declined. The BSE Auto index underperformed the Sensex, sliding 1.12% at 3,565.67. Maruti Suzuki (down 3.56% at Rs 567.70), hero Honda (down 2.73% at Rs 687.80), And Tata Motors (up 1.25% at Rs 399.50), slipped.

Two and three wheeler maker Bajaj Auto gained 9.60% to Rs 494.15. The company reported 4.37% fall in net profit to Rs 175 crore on a 9.24% rise in total income to Rs 2340 crore in Q1 June 2008 over Q1 June 2007. As per reports, Bajaj’s quarterly figures were higher than expectations.

India’s largest real estate developer by market capitalization DLF rose 1.79% to Rs 458.35 after the company today said it has set aside Rs 1100 croer for buyback of shares at a maximum price of Rs 600 a share.

India's second largest software exporter by sales Infosys Technologies fell 0.82% at Rs 1806.20. The company will declare Q1 June 2008 results on Friday, 11 July 2008.

The key thing that analysts and market men will be looking at is whether Infosys revises its year ending March 2009 (FY 2009) guidance given at the time of announcing the year ended March 2008 (FY 2008) results in April 2008. Some analysts expects Infosys to revise the guidance upwards due to good Q1 June 2008 results and also to factor in sharp fall in rupee against the dollar. Infosys had given FY 2009 guidance based on a rupee/dollar rate of 40.02. Rupee is currently hovering at below 43 a dollar.

India’s largest private sector bank by market capitalization ICICI Bank fell 0.83% at Rs 616.75.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries declined 1.72% at Rs 2044.10.

Reliance Capital reported the highest turnover of Rs 280.88 crore on BSE. Reliance Industries (Rs 211.72 crore), Reliance Infrastructure (Rs 191.64 crore), DLF (Rs 185.04 crore) and Mundra Port & Special Economic Zone (Rs 160.53 crore), were the other turnover toppers on BSE in that order.

IFCI clocked highest volume of 1.91 crore shares on BSE. Reliance Natural Resources (1.69 crore shares), Ispat Industries (1.67 crore shares), Reliance Petroleum (92.24 crore shares) and First Winner Industries (80.72 crore shares), were the other volume toppers on BSE in that order.

Real estate developer DS Kulkarni Developers surged 5.93% to Rs 100.95 after the company said it has sold 50% in a unit that is setting up a premium Bangalore residential project to ICICI Prudential PMS Real Estate Portfolio, for Rs 35 crore.

Engineering and construction firm Petron Engineering Construction spurted 6.74% to Rs 209.90 after the company said on Wednesday, 9 July 2008, it has received letters of intent for four power project works in Uttar Pradesh, totally worth Rs 14.07 crore.

Aluminium producer Madras Aluminium Company jumped 11.41% to Rs 741.50 after the company fixed 24 July 2008 as record date for a 5-for-1 stock split.

IT services firm Allied Digital Services moved up 7.02% to Rs 890 after company acquired 80.5% in infrastructure management business of US-based EnPointe Technologies for $30 million.

Paint maker ICI India rose 1.94% at Rs 538 after the company said its board will meet on 17 July 2008 to consider extending the share buyback scheme, at a price of up to Rs 575 each.

Tyre maker JK Tyre & Industries slipped 3.29% to Rs 91.20 on reports that it has raised truck tyre prices by 6% effective yesterday, 9 July 2008, in the wake of rising input costs.

Volatility was caused by uncertainty as to whether the government will be able to win vote of confidence in the parliament. Reports suggest that government may hold a special session of parliament on 21 July 2008 - 22 July 2008 to seek vote of confidence following withdrawal of support to the government by Left front this week.

The government is confident of retaining power due to backing from Samajwadi Party, a regional party in Uttar Pradesh. Samajwadi Party (SP) yesterday, 8 July 2008, said it will vote with the government in support of the nuclear deal with the United States.

Cues from global markets were mixed. In Europe, key benchmark indices in UK, France and Germany were down by 0.97% to 1.64%. Asian markets were mixed. Key benchmark indices in Taiwan, South Korea, Hong Kong and Japan were up by 0.07% to 1.19%. Key indices in Singapore, and China were down by 0.55% to 1.54%.

US stocks plunged yesterday, 9 July 2008 with financial stocks taking the biggest hit as concerns over the credit crisis took the spotlight again, sending cautious investors to the sidelines. The Dow Jones industrial average plunged 236.77 points, or 2.08%, to 11,147.44. The Standard & Poor's 500 index lost 29.01 points, or 2.28%, to 1,244.69, while the Nasdaq Composite index declined 59.55 points, or 2.60%, to 2,234.89.

From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7,280.53 points or 34.33%. It is down 6360.75 points or 31.35% in calendar year 2008 so far.

Local equities seen opening lower


Key local benchmarks are likely to drift lower today, 10 July 2008 following weak global cues. Crude oil prices ended little changed yesterday, 9 July 2008. The focus would shift to earnings season with IT bellwether Infosys Technologies' quarterly results scheduled on Friday, 11 July 2008.

Crude oil futures ended little changed yesterday, 9 July 2008 as government data showed that a large drawdown in crude supplies last week was concentrated on the West Coast, which has little impact on futures prices. On the New York Mercantile Exchange, August crude settled up 1 cent at $136.05 a barrel.

Asian markets were trading lower today, 10 July 2008. Shanghai Composite fell 0.07% or 2.09 points at 2,918.45, Japan's Nikkei declined 0.10% or 12.64 points at 13,039.49, Hang Seng tumbled 1.21% or 264.55 points at 21,541.26, Taiwan's Taiwan Weighted lost 0.68% or 48.24 points at 7,000.01, Singapore's Straits Times fell 1.32% or 38.57 points at 2,879.05 and South Korea's Seoul Composite was down 0.52% or 7.90 points at 1,511.48

US stocks plunged yesterday, 9 July 2008 with financial stocks taking the biggest hit as concerns over the credit crisis took the spotlight again, sending cautious investors to the sidelines. The Dow Jones industrial average plunged 236.77 points, or 2.08%, to 11,147.44. The Standard & Poor's 500 index lost 29.01 points, or 2.28%, to 1,244.69, while the Nasdaq Composite index declined 59.55 points, or 2.60%, to 2,234.89.

Back home, the 30-share BSE Sensex surged 614.61 points or 4.6% at 13,964.26 and the broader based S&P CNX Nifty was up 168.55 points or 4.23% at 4,157.10, yesterday, 9 July 2008, following strong global cues and sharp fall in crude oil prices.

From a record high of 21,206.77 hit on 10 January 2008, Sensex has now lost 7,242.51 points or 34.15%. It is down 6,322.73 points or 31.16% in calendar year 2008 so far.

According to provisional data on NSE, foreign institutional investors offloaded equity worth Rs 435.54 crore while domestic institutional investors were net buyers of equity worth Rs 139.22 crore, yesterday, 9 July 2008.

Foreign institutional investors (FIIs) were net buyers of Rs 719.66 crore in the futures & options segment on 9 July 2008. They were net buyers of index futures to the tune of Rs 383.26 crore and bought index options worth Rs 136.49 crore. They were net buyers of stock futures to the tune of Rs 177.73 crore and purchased stock options worth Rs 22.18 crore

The government is expected to face a vote of confidence in parliament in the coming weeks. Samajwadi Party (SP) on 8 July 2008, said it will vote with the government in support of the nuclear deal with the United States.

Prime Minister Manmohan Singh on 7 July 2008 said that the government will go through the remaining formalities of the Indo-US nuclear deal. He also expressed confidence that UPA government will survive the trust vote and avoid early elections.

Meanwhile, deceleration in production of petroleum refinery products, electricity and cement pulled down the growth in six core infrastructure industries to 3.5% in May 2008 compared to 7.8% in May 2007, as per data released yesterday, 9 July 2008.

Daily Technicals - July 10 2008


Daily Technicals - July 10 2008

Morning Call - July 10 2008


Market Grape Wine :

In House :

Nifty at a support of 4085 and 4010 levels resistance at 4190 and 4245 levels .

Buy : AirDeccan above 75 target 82 s/l of 72.5

Buy : RIL above 2035 target 2100 s/l of 2009

Buy : in F&O Infosys above 1809 target 1850 s/l of 1785

Sell : in F&O TataPower below 1068 target 1020 s/l of 1088

Results : today BajajAuto & Tomorrow Infosys

Out House:

Markets at a support of 13531 & 13663 resistance at 13993 & 13786 levels .

Buy : Infy at diops

Buy : Sbin & iciciBnak at dips

Buy : Tisco

Buy : Bhel & LT at dips

Buy : Centextile at dips

Buy : RIl at dips

Dark Horse : Bhel , Infy , RIL , IciciBnak , NTPC & Tisco

Nifty futures at a discount


Turnover surges

Nifty July 2008 futures were at 4146, at a discount of 11.10 points as compared to spot closing of 4157.10. NSE's futures & options (F&O) segment turnover was Rs 47,907.81 crore, which was higher than Rs 41,117.91 crore on Tuesday, 8 July 2008.

Infosys Technologies July 2008 futures were at premium at 1838 compared to the spot closing of 1821.90.

Reliance Infrastructure July 2008 futures were at premium at 838.25 compared to the spot closing of 835.75.

Reliance Communications (RCom) July 2008 futures were at premium at 443.60 compared to the spot closing of 440.80.

In the cash market, the S&P CNX Nifty surged 168.55 points or 4.23% at 4157.10.

Crude ends flat


Prices end higher just by 1 cent after full day of volatile trading

After an entire day of volatile trading, crude prices ended marginally up today, Wednesday, 09 July, 2008. Traders, worried about slowing demand, continued selling despite a sharp drop in U.S. inventories and rising tensions in the Middle East. Crude had dropped $9.25 over last two straight sessions.

Crude-oil futures for light sweet crude for August delivery today closed at $136.05/barrel (higher by $0.01/barrel or 0.001%) on the New York Mercantile Exchange. Last week, prices gained $5.08 (3.6%).

Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 101% higher than a year ago. For the year, crude is up by 40% till date.

At the currency markets on Wednesday, the dollar traded mixed feeling some modest pressure as foreign-exchange traders showed an appetite for safe-haven currencies. News about Iran's missile tests earlier had put the greenback on the defensive, prompting gains for the Japanese yen and the Swiss franc. The U.S. dollar index which measures the greenback against a basket of major currencies, fetched 72.61 from 72.98 late Tuesday.

EIA reported today that crude inventories fell 5.9 million barrels in the week ended 4 July to stand at 293.9 million barrels. Daily crude imports averaged 9.5 million barrels last week, down 621,000 barrels from the previous week. U.S. refineries operated at 89.2% of their operable capacity last week, unchanged from the previous week.

EIA also reported that U.S. gasoline supplies rose by 900,000 barrels in the latest week, while distillates rose by 1.8 million barrels.

In a monthly report, EIA reported yesterday that U.S. petroleum consumption will shrink by 400,000 barrels a day in 2008, nearly 40% more than EIA's June projection of a decline of 290,000 barrels. The change was based on prospects for a weak economy and record high crude oil and product prices extending into 2009.

The EIA also reported that global oil consumption will grow by 900,000 barrels a day in 2008, as demand growth in developing countries will more than offset declines in the U.S. and other developed countries. The EIA projected that crude-oil prices will average $127 per barrel in 2008 and $133 per barrel in 2009.

Against this backdrop, August reformulated gasoline rose 0.5% to $3.38 a gallon and August heating oil gained 0.8% to $3.85 a gallon. August natural gas fell 3% to $12 per million British thermal units. The EIA will release the latest data on natural gas in storage on Thursday.

At the MCX, crude oil for July delivery closed at Rs 5,885/barrel, lower by Rs 21 (0.35%) against previous day’s close. Natural gas for July delivery closed at Rs 520.7/mmbtu, lower by Rs 18.8/mmbtu (3.5%).

Market may remain cautious


The market is likely to remain under pressure following an overnight fall on the US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4100 on the downside while on the upside there is a near term resistance at 4220. The Sensex has a likely support at 13810 and may face resistance at 14130.

US indices tumbled sharply on Wednesday, as the Dow Jones slumped by 237 points to close at 11147 and the Nasdaq ended 60 points lower at 2235.

Indian floats largely ended on a weak note. ICICI Bank dropped 3.52% while Dr Reddy, Satyam, VSNL, HDFC Bank and Patni Computer were down nearly 1-2% each. Tata Motors and Wipro gained 2-3% while Infosys and Rediff registered steady gains.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for August '08 delivery gaining a cents to close at $136.05 a barrel. In the commodity space, the Comex gold for August series gained marginally by $5.30 to settle at $928.60 a troy ounce.

Pre Session Commentary - July 10 2008


The Indian Market is expected to have negative opening on the back of weak global cues as US market closed in deep red and Asian market is trading weak. The Indian market on Wednesday closed with heavy gains. The domestic market had a strong opening tracking favorable global cues from Fed Chairman Ben Bernanke’s encouraging statement that central bank may extend its emergency-loan program for investment banks into next year and drop in crude oil prices. Market continued to trade in extremely positive zone throughout the trading session to close with handsome gains. From the sectoral front, all indices closed in green and Capital Goods, Metal, Oil & Gas, Reality and Bank stocks were in limelight as strong buying witnessed in these baskets. Reality index closed with gain of more than 6%. Among the Sensex 30 pack, all indices closed in green. The BSE Sensex closed higher by 614.61 points at 13,964.26 and NSE Nifty ended up by 168.55 points at 4,157.10. We expect that market may decline during the trading session.

On Wednesday, the US market was closed in red due to investor’s worries about the soundness of the financial sector that led to a late selloff, which results sharp drop in financials. Among the financials Bank of America, American Express and Citigroup led the decline. Crude oil prices raised $1.86 to $137.90 a barrel also adds on to the negative sentiment.

Investors were worried due to mortgage finance companies which may have to sell more shares than expected to compensate for losses from the housing fall. Prepayments on U.S. mortgage backed securities decreased in June from May levels as home loan refinancing activity is also reduced. Overall fixed-rate agency prepayment speeds fell 13% in June, with the paydowns 11% lower at $41 billion. The decrease in prepayment speeds in June followed a drop in May. Overall fixed-rate agency prepayment speeds fell 20% in May.

The Dow Jones Industrial Average (DJIA) closed lower by 236.77 points at 11,147.44 along with NASDAQ ended down by 59.55 points at 2,234.89 while S&P 500 index closed lower by 29.01 points at 1,244.69.

Indian ADRs ended mixed. In technology sector, Wipro ended up by (2.25%) along with Infosys by (1.91%) while Patni Computers dropped by (1.58%) and Satyam by (1.03%). In banking sector, ICICI bank and HDFC bank lost (1.76%) and (1.60%) respectively. In telecommunication sector, Tata Communication and MTNL ended down by (1.73% and (0.46%)). Sterlite industries inclined (1.35%).

Today the major stock markets in Asia are trading in red. Hang Seng index is trading lower by 264.55 points at 21,541.26 along with Taiwan Weighted trading down by 48.24 points at 7000.01 and Japan’s Nikkei trading at 13,039.49 lost 12.64 points.

The FIIs on Wednesday stood as net buyer in equity. The gross equity purchased was Rs2,333.80 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,165.30 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs168.50 Crore and net debt was 0.00 Crore.

Today, Nifty has support at 4,035 and resistance at 4,255 and BSE Sensex has support at 13462 and resistance at 14,220.

Ranbaxy


Ranbaxy

India Strategy


India Strategy

Today's Pick - Siemens


We recommend a buy in Siemens from a short-term perspective. From the charts of Siemens, we observe that the stock had been on an intermediate-term downtrend from its January 2008 peak of Rs 1,047 to its 52-week of low Rs 363, recorded in early July. Nevertheless, the stock reversed direction, after taking support at around Rs 400 (a significant long-term support level) recently.

The stock’s reversal was supported by the positive divergence in the daily relative strength index (RSI). On July 7, the stock conclusively penetrated the intermediate-term down trendline and also crossed over the 21-day moving average by gaining 6 per cent with high volume. We notice that there is an increase in volume over the past four trading sessions.

The daily RSI is rising in the neutral region towards the bullish zone and the weekly RSI has recovered from the oversold territory. We are bullish on the stock in the short-term. We anticipate the stock to rally until it hits our price target of Rs 540 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining the stop-loss at Rs 455.

via BL