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Thursday, May 10, 2007
Up, up and then down 10 points
With the bulls firmly in control for almost the entire trading session, stocks from across sectors posted smart gains and the market appeared to be heading towards a firm close. But that was before a strong bout of profit taking towards the close shaved off nearly 206 points from the day’s high. The Sensex witnessed strong optimism after resuming with a positive gap of 41 points at 13823. The US Fed’s decision to keep interest rates unchanged turned sentiments from cautious to bullish. While the action in several counters held the market firm above the 13900 levels in the first half of the trading session, the index notched up further gains in the afternoon to touch the day's high of 13977. However, the market slipped towards the close as the weakness in select heavyweight, oil, capital goods and public sector stocks dragged the index to an intra-day low of 13745. The Sensex finally ended the session with a loss of ten points at 13771, while the Nifty shed 12 points to close at 4067.
The broader market remained weak. Of the 2,634 stocks traded on the BSE, 1,328 stocks declined, 1,238 stocks advanced and 68 stocks ended unchanged. Among the sectoral indices the BSE Oil & Gas index dropped 1.03% at 7156, the BSE PSU index shed 0.98% at 6,355 and the BSE CG index was down 0.72% at 9874.
Among the major losers ONGC dropped 2.20% at Rs889, NTPC slumped 2.11% at Rs151, Ranbaxy shed 1.84% at Rs386, Tata Motors lost 1.24% at Rs714, L&T declined 1.16% at Rs1,691 and Maruti Udyog slipped by nearly 1.02% at Rs795. However, HDFC notched up gains of 5.26% at Rs1,680, Tata Steel rose 2.50% at Rs576, Bajaj Auto added 1.74% at Rs2,609, ITC advanced 1.71% at Rs163, HDFC Bank moved up by 1.60% at Rs1,012 and Hindalco gained 1.52% at Rs147.
Over 1.76 crore Reliance Natural Resources shares changed hands on the BSE followed by IFCI (1.20 crore shares), Nagarjuna Fertilizer (86.39 lakh shares), Orbit Corporation (59.07 lakh shares) and Fortis Healthcare (54.52 lakh shares).
Value-wise, Indiabulls Real Estate registered a turnover of Rs189 crore on the BSE followed by Page Industries (Rs134 crore), Tata Steel (Rs131 crore), Rolta India (Rs125 crore) and Orbit Corporation (Rs122 crore).
Trading Calls
Ashwani Gujral
Buy NDTV with stop loss of Rs 324 for a target of Rs 445.
Buy Indian Bank with stop loss of Rs 115 for a target of Rs 155.
Rajat K Bose
Buy Reliance Energy with stoploss below 514 for a target of Rs 530-534-539. This is a day-trading recommendation.
Buy Rel Comm with stoploss below 455 for a target of Rs 475-479. This is a day-trading recommendation.
Deepak Mohoni
Buy SBI below Rs 1125 with stop loss of Rs 1110. This is a day-trading recommendation.
Short Sell Cairn India above Rs 128 with stop loss of Rs 131. This is a day-trading recommendation
Anand Rathi - Daily Strategist - May 10 2007
The NIFTY futures saw a rise in OI to the tune 4.74% with prices coming up from lows and closing near day's high indicating long positions being built up aggressively in the market at lower levels which forced bears to cover their positions .The discount in nifty futures narrowed and nifty futures closed at 19 points premium to spot nifty indicating aggressive short covering seen in the market and fresh long positions built up in the market . The FII sold index futures to the tune of 602crs and sellers in index options to the tune of 48crs. The PCR has come up from 1.17 to 1.12 indicates some weakness may be seen in the market. The IV is around 25.40 levels indicating some volatile trading sessions ahead.
Among the Big guns, ONGC saw 1.63% rise in OI with prices almost flat indicating that the counter may remain in a range before taking any sharp movement on either side. Whereas RELIANCE saw 4.19% rise in OI with prices coming up from low indicating buying spree emerging at lower levels and rise in prices was mainly driven by fresh long positions built up in the counter. The counter may see further built up of positions before taking any sharp and directional move which in turn may help to get clue about market's direction.
In the TECH front, INOFSYSTCH& TCS & SATYAMCOMP saw significant rise in OI with prices coming down though market went up indicating selling pressure emerging which in turns indicating lack of confidence in the IT pack on positive side .The only exception was WIPRO which saw shorts covering their positions and the counter closing near day's high indicating buying emerging at lower levels in this counter indicating strength in this counter.
In the BANKING counters, all the majors saw rise in OI significantly with gain in values indicating buying emerging in this pack and shorts covering their positions which in turn may help these counters to rise. SBIN saw rise OI to the tune of 6.72% with prices coming up sharply and closing near day's high indicating fresh long positions being built up in the counter indicating strength in the counter .ICICIBANK saw rise in OI to the tune of 7.08% with rise in prices indicating long positions being built up in this counter indicating strength in the counter.
In the metal pack TATASTEEL saw rise in OI to the tune of 5.08% with price up to the tune of 2.49% indicating built up of long positions in this counter and short covering their positions aggressively suggesting strength in this counter .SAIL saw rise in OI with prices almost flat indicating uncertainty may prevail in this counter. HINDALCO saw marginal drop in OI with prices almost flat indicating lack of activity in the counter .STER saw drop of positions with prices positive indicating buying emerging in this counter indicating strength in the counter.
We feel that the volume and built up in OI suggests that market may show some short positions being built up and long positions liquidation as uncertainty prevail in the market .Market may show weakness if it closes below 4025 levels where we may see fresh short positions built up in the market and long liquidation in the market .One should trade with strict stop losses to be adhered too.
Anand Rathi - Daily Strategist - May 10 2007
Anand Rathi - Daily Technical Note - May 10 2007
Nifty and Sensex have exhibited a hammer like candlestick.
Technically, one may use the level of 4030 (Nifty) and 13600 (Sensex) as the stop loss level.
Nifty faces resistance at 4185 and Sensex at 14225.
BSE Smallcap has exhibited a doji like candle and BSE Midcap also exhibited bullish candlesticks.
CNX IT has lost ground.
In the Punter's zone we have a Buy in RCOM , UNITECH & FEDERAL BANK.
In the Technical call section, we have a Buy in MPHASIS , PNB & SUZLON.
Anand Rathi - Daily Technical - May 10 2007
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