India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Thursday, July 04, 2013
Technical Buys for the day - July 4 2013
Recomm.
|
CMP
| |
Tech Mahindra
|
Buy
|
999.00
|
ITC
|
Buy
|
326.00
|
Tata Motors
|
Buy
|
284.00
|
SUN Pharma
|
Buy
|
1020.00
|
R.Com.
|
Buy
|
130.00
|
HCL Techno
|
Buy
|
367.00
|
Buy
|
921.00
| |
IPCA Lab
|
Buy
|
691.00
|
Bajaj Hind.
|
Buy
|
15.00
|
CESC
|
Buy
|
343.00
|
Deepak Fertilizer
|
Buy
|
94.00
|
Flat to positive start likely
The Indian stock markets are expected to witness flat to positive start led by mixed global cues. SGX Nifty is trading 21.00 points higher.
Events for the day:
Kotak Bank, Canara Bank, Ashok Leyland, Bajaj Holdings, United Phosphorous, Bajaj Fi nserv, Atul Auto, Bajaj Auto, M&M Finance, Bajaj Finance to quote Final Dividend
Headlines for the day:
JSPL plans Rs12,000 cr investment this year
Alstom wins Rs208 crore BHEL contract
Portfolio Managers' AUM reaches record high of Rs6.2 lakh cr
Indian Indices:
The Indian equities are likely start the trading session on a flat yo positive note as the global cues look mixed. SGX Nifty is trading 21.00 points higher.
On Wednesday (July 03, 2013), the S&P BSE Se nsex wrapped trade at 19,177.76, down by 286.06 points and the Nifty fell by 86.65 points to settle at 5,770.90
Global Indices:
Asian stocks opened to little fanfare on Thursday with investors cautious as key events including the European Central Bank meeting and the U.S. non-farm payrolls report loomed.
Banking stocks dragged European shares lower on Wednesday, as political turmoil in Portugal drove Lisbon's bourse to its worst day in three years and threatened to reignite the euro zone crisis.
US stocks ended slightly higher in a volatile half-day session on Wednesday as traders squared positions before the holiday and Friday's job market data.
US stocks end with moderate gains ahead of long weekend
Tech and consumer discretionary stocks perform the best
U.S. stocks closed higher on Wednesday, 03 July 2013 in advance of the Independence Day holiday, as positive jobs data countered international concerns in the abbreviated trading session. Stocks began the shortened session on a lower note as global events injected a degree of uncertainty into the market.
The Dow Jones Industrial Average rose 56.14 points, or 0.4%, to close at 14,988.55. The Nasdaq Composite finished up 10.27 points, or 0.3%, at 3,443.67. The S&P 500 advanced 1.33 points, or less than 0.1%, to finish at 1,615.41.
On a sectoral basis, tech and consumer discretionary stocks performed the best. Boeing and Cisco Systems led the Dow components. Shares of Alcoa fell 1.2%, the worst performer on the index after a downgrade from J.P. Morgan analysts. The aluminum giant will kick off second-quarter earnings season on Monday after the bell.
Portugal returned to headlines after two key government officials (finance minister and foreign minister) submitted their resignations. In addition, reports indicate two more ministers (agriculture and social security) are set to follow suit. As a result, the country's benchmark 10-yr yield spiked 85 basis points to 7.31%. In addition Portugal's PSI index fell 5.3%. The concerns regarding the country's future spilled over to other peripheral economies. Italy's 10-yr yield climbed 11 basis points at 4.51% while Spain's benchmark 10-yr yield jumped 14 basis points to 4.70%.
Equities fought back from their opening losses with the technology space pacing the advance. The sector ended with a gain of 0.6% as large components like Apple and Oracle provided notable support.
Today's economic data was plentiful. The initial claims level decreased from an upwardly revised 348,000 (from 346,000) for the week ending June 15 to 343,000 for the week ending June 29. The consensus pegged the initial claims level at 348,000.For the past several weeks, the initial claims level has moved in a slight sawtooth pattern, but overall, trends have been relatively flat. Labor conditions have not materially changed over this time.
June ADP Employment Change came in at 188,000 while the consensus expected a reading of 150,000. In addition, June Challenger Job Cuts rose 4.8% year-over-year to follow the prior month's decline of 41.2%.
The June ISM Services Index was reported at 52.2, below the 54.0 forecast by the consensus, and down from the May reading of 53.7.
Separately, the U.S. trade deficit widened to $45.0 billion in May from an upwardly revised $40.1 billion (from $40.3 billion) in April. That was the largest deficit since November 2012. The consensus expected the trade deficit to increase to $40.8 billion. The goods deficit rose to $63.4 billion in May from $58.4 billion while the services surplus increased to $18.4 billion from $18.3 billion. May exports fell by $0.5 billion from $187.6 billion in April to $187.0 billion.
Bond and equity markets will be closed tomorrow in observance of Independence Day. On Friday, June nonfarm payrolls, nonfarm private payrolls, average workweek, hourly earnings, and the unemployment rate will all be reported at 8:30 ET.
Crude rises past $101
Political protests in Egypt and U.S data impact prices
Crude Oil futures rose past $101 a barrel on Wednesday, 03 July 2013 as concerns about the Middle East oil trade intensified in the wake of political protests in Egypt and after a U.S. report showed a much bigger-than-expected drop in last week's crude supplies.
Crude for August delivery traded at $101.86 a barrel on the New York Mercantile Exchange, up $2.26, or 2.3%. It touched highs above $102. Futures prices were on track for their highest settlement since May 2012.
The U.S. Energy Information Administration on Wednesday reported that supplies dropped by 10.3 million barrels for the week ended June 28. Markets was looking for a 3 million-barrel decline. Gasoline supplies also declined by 1.7 million barrels, while distillate stockpiles fell 2.4 million barrels. Gasoline stockpiles were expected to rise by 1 million barrels, while forecasts called for an increase of 1.3 million barrels for distillates.
Portugal returned to headlines after two key government officials (finance minister and foreign minister) submitted their resignations. In addition, reports indicate two more ministers (agriculture and social security) are set to follow suit. As a result, the country's benchmark 10-yr yield spiked 85 basis points to 7.31%. In addition Portugal's PSI index fell 5.3%. The concerns regarding the country's future spilled over to other peripheral economies. Italy's 10-yr yield climbed 11 basis points at 4.51% while Spain's benchmark 10-yr yield jumped 14 basis points to 4.70%.
Today's economic data at Wall street was plentiful. The initial claims level decreased from an upwardly revised 348,000 (from 346,000) for the week ending June 15 to 343,000 for the week ending June 29. The consensus pegged the initial claims level at 348,000.For the past several weeks, the initial claims level has moved in a slight sawtooth pattern, but overall, trends have been relatively flat. Labor conditions have not materially changed over this time.
The June ISM Services Index was reported at 52.2, below the 54.0 forecast by the consensus, and down from the May reading of 53.7.
Separately, the U.S. trade deficit widened to $45.0 billion in May from an upwardly revised $40.1 billion (from $40.3 billion) in April. That was the largest deficit since November 2012. The consensus expected the trade deficit to increase to $40.8 billion. The goods deficit rose to $63.4 billion in May from $58.4 billion while the services surplus increased to $18.4 billion from $18.3 billion. May exports fell by $0.5 billion from $187.6 billion in April to $187.0 billion.
Among other energy products, August gasoline rose 6 cents, or 2.2%, to $2.85 a gallon, and August heating oil climbed 6 cents, or 2.1%, to $2.96 a gallon.
Natural gas for August delivery fell 7 cents, or 1.8%, to $3.59 per million British thermal units after climbing 2.2% on Tuesday.
Bullions shine
Political turmoil in Egypt and Portugal help boost investor appetite
Gold futures finished higher on Wednesday, 03 July 2013 at Comex recouping some of what they lost in the previous session, as a fall in the U.S. ISM services index and political turmoil in Egypt and Portugal helped boost investor appetite for the precious metal as a haven.
Gold for August delivery rose $8.50, or 0.7%, to settle at $1,251.90 an ounce on the Comex division of the New York Mercantile Exchange. September silver rose along with gold, tacking on 39 cents, or 2%, to $19.70 an ounce.
Portugal returned to headlines after two key government officials (finance minister and foreign minister) submitted their resignations. In addition, reports indicate two more ministers (agriculture and social security) are set to follow suit. As a result, the country's benchmark 10-yr yield spiked 85 basis points to 7.31%. In addition Portugal's PSI index fell 5.3%. The concerns regarding the country's future spilled over to other peripheral economies. Italy's 10-yr yield climbed 11 basis points at 4.51% while Spain's benchmark 10-yr yield jumped 14 basis points to 4.70%.
Today's economic data at Wall street was plentiful. The initial claims level decreased from an upwardly revised 348,000 (from 346,000) for the week ending June 15 to 343,000 for the week ending June 29. The consensus pegged the initial claims level at 348,000.For the past several weeks, the initial claims level has moved in a slight sawtooth pattern, but overall, trends have been relatively flat. Labor conditions have not materially changed over this time.
June ADP Employment Change came in at 188,000 while the consensus expected a reading of 150,000. In addition, June Challenger Job Cuts rose 4.8% year-over-year to follow the prior month's decline of 41.2%.
The June ISM Services Index was reported at 52.2, below the 54.0 forecast by the consensus, and down from the May reading of 53.7.
Separately, the U.S. trade deficit widened to $45.0 billion in May from an upwardly revised $40.1 billion (from $40.3 billion) in April. That was the largest deficit since November 2012. The consensus expected the trade deficit to increase to $40.8 billion. The goods deficit rose to $63.4 billion in May from $58.4 billion while the services surplus increased to $18.4 billion from $18.3 billion. May exports fell by $0.5 billion from $187.6 billion in April to $187.0 billion.
Market opens higher on positive Asian stocks
Key benchmark indices cut initial gains triggered on positive Asian stocks. Index heavyweight and cigarette major ITC rose in early trade. Reliance Industries edged higher in early trade. The S&P BSE Sensex was up 106.92 points or 0.56%, off 70.08 points from the day's high and up 35.99 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Foreign institutional investors (FIIs) sold shares worth a net Rs 705.06 crore on Wednesday, 3 July 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was up 106.92 points or 0.56% to 19,284.68. The index gained 177 points at the day's high of 19,354.76 in early trade. The index rose 70.93 points at the day's low of 19,248.69 in early trade.
The CNX Nifty was up 33.50 points or 0.58% to 5,804.40. The index hit a high of 5,831.50 in intraday trade. The index hit a low of 5,791.35 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 655 shares gained and 247 shares fell. A total of 39 shares were unchanged.
The total turnover on BSE amounted to Rs 129 crore by 09:30 IST.
Among the 30-share Sensex pack, 26 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC rose 0.93% to Rs 329.30
Reliance Industries (RIL) rose 0.7% to Rs 856.25. The government on 27 June 2013 agreed to double natural gas prices to industrial and retail consumers to help fund investment in exploration and reverse declining domestic gas output. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from current $4.2 mmBtu.
Mahindra & Mahindra (M&M) rose 0.20%. The company on Wednesday, 3 July 2013 announced that it has successfully placed a NCD series of 50-year maturity for Rs 500 crore on private placement basis. The NCDs will be unsecured, rated, listed, redeemable at the end of 50th year and will carry a coupon of 9.55% per annum payable annually. This is the first ever INR-denominated NCD issue with a 50-year bullet maturity offered by an Indian corporate. The successful placement of the NCDs is testimony to the unassailable reputation and credit worthiness of M&M. The proceeds of this issue will be used for capex, long term working capital requirements and refinancing of loans taken for capital expenditure. Credit Rating agencies, CRISIL and ICRA have assigned AA+/stable rating to the issue.
Bajaj Auto shed 0.82% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 45 per share for the year ended 31 March 2013 (FY 2013).
Bank of India rose 0.79%. The state-run bank said after market hours on Wednesday, 3 July 2013, that it has decided to reduce its base rate from the existing 10.25% per annum to 10% per annum with effect from 8 July 2013.
Bajaj Finserv fell 1.12% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 1.50 per share for the year ended 31 March 2013 (FY 2013).
Bajaj Holdings & Investment declined 2.09% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 25 per share for the year ended 31 March 2013 (FY 2013).
Bajaj Finance fell 0.86% after the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 15 per share for the year ended 31 March 2013 (FY 2013).
Canara Bank lost 2.57% after turning ex-dividend today, 4 July 2013, for dividend of Rs 13 per share for the year ended 31 March 2013 (FY 2013).
Kotak Mahindra Bank rose 0.75%. The stock turned ex-dividend today, 4 July 2013, for dividend of 70 paise per share for the year ended 31 March 2013 (FY 2013).
Ashok Leyland slipped 1.24% as the stock turned ex-dividend today, 4 July 2013, for dividend of 60 paise per share for the year ended 31 March 2013 (FY 2013).
Mahindra & Mahindra Financial Services rose 1.63%. The stock turned ex-dividend today, 4 July 2013, for total dividend of Rs 3.60 per share for the year ended 31 March 2013 (FY 2013).
United Phosphorus shed 0.56% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 2.50 per share for the year ended 31 March 2013 (FY 2013).
Meanwhile, the government finally cleared an ambitious Rs 1.25 trillion food security plan, promising subsidized food to two out of every three Indians. The move is expected to help it gain significant political support in the run-up to the 2014 general election, although it may stretch the fiscal deficit.
Asian stocks edged higher on Thursday, 4 July 2013, after better-than-expected US economic data spurred gains on Wall Street, while a strengthened yen dragged on Japanese shares. Key benchmark indices in Hong Kong, Indonesia, South Korea, China, Taiwan and Singapore were up 0.09% to 1.81%. Japan's Nikkei 225 index shed 0.03%.
US stocks closed higher Wednesday in advance of the Independence Day holiday, as positive jobs data countered international concerns in the abbreviated trading session.
Meanwhile, the European Central Bank is widely expected to keep interest rates on hold after a monetary policy review today, 4 July 2013. The Bank of England also holds its monetary policy review today, 4 July 2013.
Subscribe to:
Posts (Atom)