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Friday, July 06, 2007
Daily Strategist Note
The NIFTY futures saw a drop of 1.57% in OI with prices after falling sharply recovered indicating lot of fresh positions added near the support of 4300 levels on the long side indicating that further strength may be seen in the market as lot of short covering may be expected in the market . The Nifty July series futures discount disappeared indicating that lot of short covering happened in the market. The FII were sellers in index futures to the tune of 349 crs and buyers in index options to the tune of 203 crs indicating hedged positions built up by them. The PCR has changed from 1.47 to 1.51 levels indicates some strength may be seen in the market at current levels. IV in the market was 22.10 and HV was 17.89.
Among the Big guns, ONGC saw 3.66 % drop in OI with prices coming up indicating short covering seen in the counter suggesting some strength may be seen in the counter. Whereas RELIANCE saw drop in OI to the tune of 2.13% with prices recovering from lows indicating liquidation of positions in the counter suggesting that some consolidation may be seen in the counter.
In the TECH counters INFOSYSTCH saw rise of 2.81% OI with prices negative indicating that the counter may see further selling pressure emerging thus suggesting some weakness may be seen. TCS, SATYAMCOMP & WIPRO saw rise in OI with prices down indicating that these counters my see further weakness.
In the AUTO counters, M&M saw drop of 0.94% in OI with prices moving up suggesting shorts covering and fresh long positions built up in the counter at current levels suggesting strength may be seen in the stock . TATAMOTORS saw drop in OI with prices up indicating shorts covering their positions and fresh long positions built up in the counter suggesting strength may be seen in the stock.
In the Metal pack, TATASTEEL saw rise of 0.44% in OI with prices coming up indicating long positions built up in the counter suggesting some strength may be seen in the counter. SAIL saw drop of 2.08% in OI with prices coming up indicating shorts covering their positions and fresh long positions built up suggesting strength. HIINDALCO saw drop in OI with prices coming down indicating liquidation of long positions positions in the stock suggesting some profit booking may be seen in the stock. STER saw drop in OI with prices coming down indicating liquidation of long positions in the counter suggesting some profit booking may be seen.
We feel that the volume and built up in OI suggests that market may show some strength in the coming days as market took support of 4300 levels. One should trade with strict stop losses to be adhered too.
STOCKS TO WATCH : JPHYDRO,ICICIBANK & TATASTEEL.
Market may consolidate at high levels.
The market is expected to consolidate at all time high levels, as the five day rally was halted on Thursday, 5 July 2007, on profit booking. The barometer index gained 449 points, or 3.11%, in five trading sessions to 14,880.24 on Wednesday, 4 July 2007, from its close of 14,431.06 on 27 June 2007.
The BSE 30-share Sensex settled with a decline of 18.35 points, or 0.12%, to 14,861.89, on Thursday, 5 July 2007.
WPI data for the week ending 23 June 2007 is expected by noon today, Friday, 6 July 2007. Annual inflation was 4.03% in the week ending 16 June 2007 - the lowest in 14 months. The fall in inflation has been attributed to decline in prices of certain essential food items and manufactured products and strong base effect.
Cues from the Asian markets were not encouraging either. Japan's Nikkei 225 index reversed direction after six straight days of gains as automakers such as Toyota Motor Corp. and machinery maker Komatsu declined. Japan's Nikkei slipped 0.63% at 18,107.50.
Hang Seng (down 0.59% at 22,121.80), Taiwan Weighted (down 0.31% at 9,120.31), Straits Times (down 0.16% at 3,546.17), edged lower.
However, South Korea's Seoul Composite was up 0.16% or 2.96 points at 1,850.75.
US stocks closed mixed in uneven post-holiday trading on Thursday, 5 July 2007, as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08%, to 13,565.84. Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index rose 0.53 points, or 0.03%, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44%, to 2,656.65.
As per provisional data, foreign institutional investors (FIIs) were net buyers of Rs 148.99-crore equities on Wednesday, 4 July 2007, while domestic institutional investors (DIIs) also pumped Rs 305.43- crore in equities.
Daily Morning Call - July 6 2007
Market Grape Wine :
In House :
Nifty at a support of 4321 & 4295 levels with resistance at 4379 & 4390 & 4415 levels
IFCI Board meets today for Strategic Investor .
Bank Of England yesterday increased Int Rate by .25%.
Nifty at a support of 4295 ( below this level liquidate your momentum position )
Buy : Titan above 1342 target 1375 s/l of 1329 levels
Buy : Auropharma above 780.5 target 800 s/l of 773
Buy : Bhel in F&O above 1572 target 1610 s/l of 1560
Out House :
Markets at a support of 14765 & 14654 levels with resistance at 14919 & 14995 levels .
Buy : RIL & SBIN
Buy : Century & JPAsso
Buy : DLF & TV18
Buy : Kesoram & ACC
Buy : IDBI & IFCI
Buy : M&M & Maruti
Buy : Sail & Tisco
Buy : IBulls & IBReal & Unitech
Dark Horse : Kesoram , ACC , BajajHind , IBulls , IDBI , SBIN , IbullReal & Century
Bullet : Skumar & AsianElec with strict stop loss
TGIF : Thank God Its Friday : markets at 15000 levels book profits at all levels .
Indiainfoline - Intraday Stock Ideas
NIFTY (4354) SUPP 4331 RES 4376
BUY Colgate (391) SL 386
Target 399, 401
BUY Cummins (351) SL 347
Target 360, 362
BUY UTI Bank (630) SL 625
Target 638, 641
SELL Dish TV (103) SL 107
Target 97, 94
SELL Mphasis BFL (312) SL 317
Target 305, 302
Turning around…Bulls dizzy at heights
Few of us get dizzy from doing too many good turns
The bulls have managed many good turns in recent times but appear dizzy for now. Looks like they may have to wait a while for the Sensex to get past 15k mark. Signals from the global markets are a bit weak this morning. Investors may also be cautious ahead of the corporate earnings. Infosys will kick off the season on July 11. The IT major's outlook going ahead given the appreciation in the rupee would be closely tracked. Any negative noises from Infosys and its fellow software firms could set the market back temporarily.
The ongoing consolidation and choppiness could also be because the key indices have rebounded sharply from the lows struck during the February-March crash. Both the Sensex and the Nifty are trading at all-time highs. Some more volatility and brief pain is likely in the near term. Even after the Sensex crosses 15k, there may not be much room to go further in the near term. Having said that, if money keeps pouring in, particularly from FIIs, and interest rates remain stable, bulls would be able to beat the odds.
Wipro is one stock to watch out for as its consumer care arm has acquired Singapore-based Unza. Earlier, Dabur India was to buy the company but dropped the plan. Reports also suggested that Godrej and Emami had thrown their hats in the ring for Unza.
IFCI's Board will meet today to consider the proposal for inviting preliminary bids for the induction of a strategic investor. The troubled state-run term lender will also announce its Audited Financial Results the quarter and year ended June 2007.
Cipla will be in the limelight amid reports that Reliance Lifesciences is contemplating acquiring the pharma major. Nestle India might also attract attention as a financial daily reports that the Swiss foods major is looking at inorganic opportunities in India.
RCOM is likely to gain amid reports of a proposed Rs30bn expansion for its existing GSM business. PTC is another stock to keep an eye on as Blackstone and Goldman Sachs may pick up 49% stake in the finance arm of the power trading firm.
Moser Baer is expected to extend gains as the Government has slapped anti-dumping duty on CD-Rs China, Hong Kong, Singapore and Chinese Taipei. Bajaj Auto could be in action on the back of price hikes and restructuring.
US technology stocks rallied on Thursday, lifted by strength in Apple, Google and other stocks hitting new highs. However, the broader market ended mixed ahead of Friday's widely awaited June jobs report.
The Dow Jones Industrial Average was down 11.46 at 13,565.84, snapping a three-session winning streak. But, the 30-share index ended off its lows for the session. The broader Standard & Poor's 500 index ended flat at 1,525.40. The Nasdaq Composite index rose 11.70 to 2,656.65, a fresh 6-1/2 year high.
On the economic front, investors' focus is on the closely watched June jobs report. Economists surveyed expect 135,000 new jobs and the unemployment rate to hold steady at 4.5%. Earlier, the Institute for Supply Management's services index unexpectedly rose in June, beating forecasts for a modest decline.
The number of initial claims for jobless aid filed last week increased by 2,000, according to the Labor Department.
Treasury prices fell, lifting the yield on the 10-year note to 5.14% from 5.04% late on Tuesday before the US holiday. The dollar rose against the euro and was higher versus the yen. COMEX gold for August delivery lost $4.80 to $650.60 an ounce.
Oil prices eased after the EIA's report on US fuel inventories. US light crude fell 31 cents to $71.10 a barrel on the New York Mercantile Exchange. The front-month contract was quoting 4 cents higher at $71.85 a barrel.
European shares declined after the European Central Bank's president hinted at further interest-rate hikes. The ECB left its key rate on hold at 4%, as expected. The Bank of England too did as market had expected, raising its key rate by a quarter of a percentage point, to 5.75%.
The Pan-European Dow Jones Stoxx 600 index lost 0.6% at 395.16. The German DAX closed down 1.1% at 7,987.13 , the French CAC-40 lost 0.6% at 6,059.53 and the UK's FTSE 100 slipped 0.6% to 6,635.20.
In the emerging markets, the Bovespa in Brazil was up 0.4% at 55,932 while the IPC index in Mexico lost 0.07% at 32,177 and the RTS index in Russia jumped 1.5% to 1973.
Key Asian markets were down this morning. The Nikkei in Tokyo was down 101 points at 18,119 while the Hang Seng in Hong Kong dropped 115 points to 22,137 and the Straits Times in Singapore fell by 7 points to 3544. The Kospi in Seoul was flat at 1845.
Markets registered a flat end to a highly volatile session. The benchmark Sensex gyrated 230 points and NSE Nifty nearly by 70 points. The Mid-Cap and the Small Cap index were under pressure anther other like IT, Pharma and FMCG index also lost ground. Infosys was the major dragger as the scrip dragged the Sensex index by 12 points. However, heavyweights like ICICI Bank, L&T and Tata Steel were the major gainers as it aided vital support to the key indices from slipped in to deep red. Finally, the 30-share Sensex down 18 points to close at 14861 and NSE-50 Nifty was down 5 points to close at 4353.
DLF got listed on the bourses with a premium of Rs43 at Rs568.80 on the Bombay Stock Exchange with a premium of 8%. The scrip ended up 8.5% to Rs570 touching an intra-day high of Rs714 and a low of Rs505 and recorded volumes of over 3,00,00,000 shares on BSE.
BEML dropped by 1% to Rs1233 after the company announced that it has fixed its issue price at Rs1075. The scrip touched intra-day high of Rs1260 and a low of Rs1210 and recorded volumes of over 1,00,000 shares on NSE.
Bajaj Auto slipped by 1.4% to Rs2091. The company announced that they have raised price by Rs500 on each model. The scrip touched intra-day high of Rs2128 and a low of Rs2085 and recorded volumes of over 1,00,000 shares on NSE.
Asian Electronic is locked at 5% upper circuit to Rs957.30 after the company announced that it would split each share into two. The scrip has touched intra-day high of Rs957.30 and a low of Rs876 and has recorded volumes of over 1,00,000 shares on NSE.
TV 18 was flat at Rs907. The company announced that the Board of Directors of the company has approved 1:1 bonus. The scrip touched intra-day high of Rs949 and a low of Rs907 and recorded volumes of over 2,00,000 shares on NSE.
Ashok Leyland gained by 1% to Rs38 after the company announced its June sales at 6510 units (up 2%). The scrip touched intra-day high of Rs38 and a low of Rs37 and recorded volumes of over 29,00,000 shares on NSE.
Indus Fila surged nearly by 6% to Rs221 after the company acquired 51% stake in Indus Garments for Rs93.5mn. The scrip touched intra-day high of Rs245 and a low of Rs210 and recorded volumes of over 18,00,000 shares on NSE.
Technology stocks were under pressure as Indian rupee further strengthens against the US Dollar at Rs40.46 per US Dollar. Index heavy weight Infosys was down by 0.7% to Rs1916, Satyam Computer slipped b 1.6% to Rs464 and Wipro slipped 1% to Rs504. Mphasis, Polaris and i-Flex were the major losers among the Mid-Cap stocks.
Cement stocks were a mixed bag today after being in the limelight. Grasim was up by 0.4% to Rs2748, ACC gained by 0.6% to Rs1028 and Gujarat Ambuja was flat at Rs129. However, Mangalam Cement declined by over 2% to Rs165.
Select Auto stocks ended firm in a volatile market. M&M gained by 2.8% to Rs769, Maruti was up by 1.8% to Rs805, Tata Motors advanced by 1.2% to Rs709 and TVS Motors surged by over 3.2% to Rs62 after the company announced that it expects Motorcycle sales at 1.7mn this year.
Pharma stocks were in poor health. Ranbaxy was down 2% to Rs360, Cipla declined by 1% to Rs216, Wockhardt declined 1.5% to Rs386 and Lupin dropped by 1.5% to Rs722.
Fund Activity:
FIIs were net buyers of Rs1.49bn (provisional) in the cash segment yesterday while the local institutions pumped in money to tune of Rs3.05bn. In the F&O segment, foreign funds were net sellers of Rs6.92bn yesterday.
On Wednesday, FIIs were net buyers of Rs8.25bn in the cash segment. Mutual Funds were net sellers at Rs4.27bn on the same day.
Results Today:
Classic Diamond and IFCI.
Major bulk Deals:
Deutsche Secs has bought Evinix and Tricom India; Merrill Lynch has picked up Jayant Agro and Morgan Stanley has sold Vijaya Shanti.
Insider Trades:
Insider Trades:
UFLEX Limited: A.R. Leasing Pvt. Ltd. (part of the promoters' group) has purchased from open market 26513 equity shares of the company on 27th & 28th June, 2007.
Lower Circuit:
TCI Finance, DS Kulkarni, GV Films, Anant Raj, ION Exchange and Surana Industries.
Upper Circuit:
DMC International, Shree Precoated, Zenotech Labs, Nirlon, Swan Mills, Prime Focus, Goldstone Tech, Agro Tech, Asian Electronic, Evinix, Classic Diamond, Heritage Foods, Genus Overseas and IID Forgings.
Delivery Delight (Rising Price & Rising Delivery):
Andhra Bank, Apollo Tyres, Castrol India, Colgate, Dr Reddys Laboratories, Hero Honda Motors, ICICI Bank, Jain Irrigation, Nalco, SCI, Tata Power, TVS Motor, Union Bank of India, UTI Bank and Voltas.
Abnormal Delivery:
J&K Bank, Bajaj Auto, I-Flex Solutions, Bank of India, Siemens, Bank of Baroda, Wockhardt, Sun Pharmaceuticals, HDFC, Corporation Bank and Indian Hotels.
Major News & Announcements:
HC adjourns decision on KG Gas to July 12 – Reports
L&T to start 3 units for railways, power and ship building
Hero Honda delays Factory start on slowdown in Sales
Maruti plans to expand Manesar plant engine-making capacity
BEML fixes issue price at Rs1075
Bajaj Auto raises price by Rs500 on each model
Indus Fila acquires 51% stake in Indus Garments for Rs93.5mn
Sadbhav Engineering secures Rs328bn contract
Asian electronic to split each share into two
TV 18 Board approves 1:1 bonus
Ashok Leyland June sales at 6510 units (up 2%)Daily Technical Analysis
Nifty and Sensex have exhibited Doji candlestick.
Technically, one may use the level of 4300 (Nifty) and 14700 (Sensex) as the stop loss level.
Nifty faces resistance at 4390 and Sensex at 15050.
Nifty Range 4300 to 4390.
BSE Smallcap and BSE Midcap also exhibited bearish candlestick following reversal candlesticks the day before.
CNX IT has closed Negative.
In the Punter's zone we have a Sell in Peninland, Parsvath and Ansal infra.
In the Technical call section, we have a Buy in RCOM, Sail and Voltas.
Daily Technical Analysis
Citigroup - India Technicals
Citigroup in their daily tech,
Nifty — The index opened on a positive note, after which it dipped toward 4,312 during the afternoon trading. It saw a recovery during the remaining part of the day’s session. The index ended the day down 4 points.
Trading around a high of 4,363 — The index is trading around a 4,363 high amid intra-day volatility. Intra-day rise is facing resistance around 4,363. Until the index stays below the 4,363 high on a closing basis, range-bound movement with high intra-day volatility should be expected.
Support and resistance — The index has support around 4,314 (low of 3 July 07) and 10dma at 4,305. Intra-day dips should find support around these levels. The resistance level is around 4,386 (high of 4 July 07).
Conclusion — Range-bound movement within 4,305-4,386 band can be expected.
Boeing set to unveil new 787 Dreamliner
Boeing Co. unveils its lightweight 787 Dreamliner on Sunday, the first commercial jet predominantly made of carbon-composite materials and the planemaker's first all-new airliner in more than a decade.
The mid-sized aircraft -- seating 210 to 330 people in its three planned models -- promises 20 percent fuel savings for airlines and a new standard of comfort for passengers.
Operators and lessors have jumped at the jet, placing 642 orders worth about $100 billion at list prices since it went on sale in 2004.
First and foremost, the new plane will save airlines money and help them toward greater profits, according to Richard Aboulafia, a consultant at aerospace specialists the Teal Group. But it will also benefit travelers.
"It means more frequency, more point-to-point routes and fewer changes at big hub airports," said Aboulafia. "Anyone who changes planes regularly at Heathrow, Narita or Frankfurt can be grateful."
The first of the new planes is set to be rolled out of Boeing's Everett, Washington, plant on Sunday, in front of about 15,000 staff, customers and suppliers.
Boeing even has a theme song for the plane to be played at the gala event, hosted by former television news anchor Tom Brokaw.
The public rollout of the plane was purposefully scheduled for Sunday -- 7/8/07 in U.S. date abbreviation -- but the aircraft will not actually fly until August or September, when its airborne tests are due to start.
The plane, whose fuselage is spun from carbon composites and baked in an enormous oven, is expected to save operators 20 percent on fuel costs because of its lower weight and state-of-the-art engines.
The benefit for passengers is that composite materials do not rust or fatigue, so air in the cabin can be more humid and the windows larger. Boeing is also touting softer lighting that automatically adjusts with the time of day or night.
The 787 is Boeing's first all-new plane since its 777 minijumbo entered service in 1995. Boeing's Next Generation 737, an updated version of its popular single-aisle plane, entered service in 1998.
Via Reuters
DLF July 2007 futures most active
Futures settle at premium on debut
Nifty July 2007 futures settled at 4355, a marginal premium of 1.05 points as compared to spot closing of 4,353.95
Real estate major DLF July 2007 futures settled at premium, at 574, compared to the spot closing of Rs 568. It was the top traded counter with turnover of Rs 2517.30 crore. The stock debuted today in F&O segment with lot size of 400 shares. It hit a high of 578.40 and low of 544.15 today.
Reliance Industries July 2007 futures settled at a premium, at 1722.10, compared to the spot closing of Rs 1713.20.
SBI July 2007 futures settled at a sharp premium, at 1560.10, compared to the spot closing of Rs 1545.15.
In the cash market, the S&P CNX Nifty lost 5.35 points or 0.12% at 4,353.95. It had hit an all-time high of 4,386.45 on Wednesday, 4 July 2007.
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