Smart Invest and Smart Picks - Nov 1 2010
Monday, November 01, 2010
Reliance Industries, ITC, ICICI Bank, BHEL, Maruti Suzuki, Mahindra and Mahindra, Hero Honda, Nestle, JP Associates, NALCO, ABB, Bharat Electronics
Reliance Industries, ITC, ICICI Bank, BHEL, Maruti Suzuki, Mahindra and Mahindra, Hero Honda, Nestle, JP Associates, NALCO, ABB, Bharat Electronics, Godrej Consumer Products, Tata Chemicals, Purvanakara, Sadhbhav Engineering
Dollar slides, commodity prices soar on the first session of the week
Asian markets ended mostly higher today as the global risk appetite stayed strong amid falling US dollar and strong commodity prices. Investors eyed the strong pick up in China's purchasing managers' index and looked ahead for possible new monetary stimulus from the U.S. Federal Reserve, which would keep the global liquidity conditions easy. The Fed is expected to unveil a new round of bond purchases, also known as quantitative easing, at this week's policy-setting meeting on November 2-3 to bolster the economy. The US Stocks were little changed in the last session. Dow rose 4.54 points to 11,118.49 After the US Commerce Department said that gross domestic product increased at an anemic annual rate of 2.0% in the third quarter following the 1.7% growth that was seen in the second quarter.
The key benchmark indices started the week and the month on a buoyant note logging strong gains as latest data showing surge in manufacturing activity in October 2010, good Q2 September 2010 results, and firm global stocks boosted investor sentiments. The BSE 30-share Sensex jumped 323.29 points or 1.51%.
In the last trading session, Nifty rebounded smartly on the back of better than expected earnings report by ICICI bank and BHEL and closed above 6,000 level. Now, immediate resistance for Nifty comes at 6,080 and moving and sustaining above will recheck 6,125 level while immediate bigger support comes at 5,980 and break below 5,980 levels could drag Nifty to 5,920-5,950 on the downside. Further, on derivative front, aggressive buying in OTM call and writing in OTM put is indicating an upward trend in market.
The market is geared for a strong start on a rally in Asian stocks triggered by strong Chinese manufacturing data. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could advance 60 points at the opening bell. Cement, auto and steel companies will be in focus as firms in these sector announce their sales figures for the month of October 2010. Quarterly earnings from index heavyweight Reliance Industries unveiled on 30 October 2010 were in line with market expectations.
Silver registers third consecutive healthy monthly gains
Precious metal prices registered strong gains for the month of October 2010. Prices ended with modest gains on the last trading day of October, Friday, 29 October 2010 at Comex. Anticipation among traders regarding Fed's moves on quantitative easing next week took precious metals higher. The dollar also softened on Friday.
The domestic indices are likely to start the session on a strong note on the back of positive Asian markets
Headlines for the day:
Government sees 3G auction as model for other sectors
Mahindra likely to bag Ssangyong by March
RIL to invest $5 billion in US shale assets in next 5 years
Norwegian government has offered ONGC a stake in a US$1bn carbon capture storage project at Statoil’s Mongstad oil refinery in Norway. (BS)
Reliance Industries plans to invest around US$15bn in the next five years in its petrochemical business and to develop shale gas assets in the US. (BS)
A consortium led by GSPC and also comprising Indian Oil, HPCL and BPCL, is set to get authorization for three major gas line projects worth 180bn. (BS)
I guess we all like to be recognized not for one piece of fireworks, but for the ledger of our daily work. - Neil Armstrong.
The fireworks may be missing for now but looks like we are set to start the event-packed Diwali week on a positive note. Most Asian markets are up after China’s official manufacturing PMI expanded at the fastest pace in six months in October. But shares in Japan are down owing to a few disappointing earnings. US and European markets closed flat on Friday.