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Tuesday, July 10, 2007
News Tidbits
Dishman Pharmaceuticals & Chemicals will acquire the fine chemicals, vitamin D and analogues business from the Netherlands-based Solvay Pharmaceuticals BV.
Wockhardt Ltd has received the US FDA approval for marketing Fosphenytoin injections containing 50mg Phenytoin equivalents / ml.
Ahluwalia Contracts India Ltd has bagged 4 new civil construction projects, worth Rs 130 crores in June 2007.
Tata Motors will invest Rs 12,000 crore in the next three years to roll out a slew of models in cars and commercial vehicles segments.
Outlook remains positive
The market is likely to display positive trend as fund inflows into the domestic equities continues to remain robust and players are maintaining their high bets on almost all the sectors. However, the market is likely to witness cautious trend as the major Asian indices are exhibiting subdued trend in the ongoing trades.
Us indices posted modest gains on Monday, just missing new record highs, as investors remained cautious eyeing the upcoming earnings reports, which may call for a big slowdown. While the Dow Jones moved up by 38 points to close at 13650, the Nasdaq ended four points higher at 2670.
Indian floats also registered modest gains on the US bourses. Barring VSNL all closed in positive territory. Satyam led the upmove and surged 4%, Rediff added 3.48% and Infosys gained 3.15% . While HDFC Bank, MTNL, Dr Reddy's Lab, Wipro, Tata motors and ICICI BanK gained around 1% each. Global crude oil prices slipped marginally, with the Nymex light crude oil for August series fell by 62 cents at $72.19 per barrel. In the commodity space, the Comex gold for August delivery flared up $7.70 to settle at $662.50 a troy ounce.
Profit taking may emerge in the second half of the trading session
The market may consolidate in the second half, as some profit booking may emerge at all time high level. The BSE Sensex gained 81.61 points, or 0.55%, to 15,045.73, an all-time closing high, on Monday 9 July 2007. It struck a record high of 15,085.22, on that day.
As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 841.64 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 236.85 crore on Monday, 9 July 2007.
The Q1 June 2007 result of Infosys on Wednesday, 11 July 2007 will dictate near term trend on the bourses.
Asian indices were trading mixed today, 10 July 2007 with Japan's Nikkei 225 declining on banking stocks such as Mitsubishi UFJ Financial Group, while South Korea's Kospi and Singapore's Straits Times Index touched intra-day record highs. Nikkei slipped 0.22% at 18,221.36 while Taiwan's Taiwan Weighted slipped 0.10% at 9,360.68.
However, Hong Kong's Hang Seng (up 0.26% at 22,876.17), Singapore's Straits Times (up 0.30% or at 3,637.60) and South Korea's Seoul Composite (up 0.13% at 1,885.99), edged higher.
Wall Street edged higher in an erratic session on Monday, 10 July 2007, as investors were reassured by a drop in treasury bond yields. The Dow Jones industrials rose 38.29 points, or 0.28%, to 13,649.97. Broader market indexes also moved higher. The Standard & Poor's 500 index rose 1.41 points, or 0.09%, to 1,531.85, and the Nasdaq Composite index added 3.51 points, or 0.13%, to 2,670.02.
Brent crude oil eased on Tuesday, 10 July 2007 after a seven-day rally lifted prices to their highest in 11 months. London Brent crude fell 31 cents to $75.47 a barrel. US crude inched down 7 cents to $72.12 a barrel.
Trading Calls
Stocks with +ve Bias: Nagarjuna const, Zee TV, Bharti, Bank of India
Stocks for short term delivery: Crompton
Stocks for investment: Aditya Birla Nuvo, WS Industries, Balaji Telefilms
Indiainfoline - Intraday Stock Ideas
NIFTY (4419) Supp 4392 Res 4440
BUY Bank Baroda (278) SL 274
Target 286, 288
BUY Bank India (230) SL 226
Target 237, 340
BUY Bharti Airtel (883) SL 877 Target 893, 897
SELL Wockhardt (380) SL 385
Target 372, 370
SELL IOC (435) SL 440
Target 426, 423
US market closes higher ahead of earnings
Falling bond yield and lower crude prices boost investor sentiment as traders gear up for earnings season
The US market finished higher today after investors expected that the earnings season, beginning today, 9 July 2007, with Alcoa, will top the lowered expectations. Falling bond yields and slipping crude prices also cheered investors. The absence of tech's leadership today, 9 July 2007, alongside declines in financial and health care prevented a more convincing performance for the indices.
The Dow Jones Industrials ended the session with a gain of 38.29 points to close at 13,649.97. The tech-heavy Nasdaq gained 3.51 points to close at 2,670.02 and S&P 500 closed higher by 1.41 points at 1,531.85.
Nineteen out of 30 Dow stocks closed in the green today. Alcoa, Caterpillar, Boeing, Exxon Mobil, Intel and Johnson & Johnson were the main Dow winners today. Mc Donalds, H-P, AT&T and Honeywell were the main Dow laggards.
J&J shares today gained 1% after announcing a share repurchase program of up to $10 billion. Boeing gained 1% and reached an all-time high after the company unveiled its 787 Dreamliner and announced new orders for the plane.
Alcoa disappoints investors and shares slip in after hours trading
Stocks opened slightly higher in the morning as investors anxiously waited for the Q2 earnings. The absence of upside leadership from influential areas like health care, tech and consumer discretionary stalled follow-through efforts.
During mid-day stocks were trading in a split mode. The most noteworthy factor was the energy sector ignoring the slipping crude prices.
The yield on the 10-year Treasury note closed at 5.159%, down from 5.195% on last Friday.
After the close, Alcoa today reported that said it earned 81 cents a share from continuing operations in the second quarter, compared with 77 cents a year ago. Earnings per share were 81 cents, down slightly from analyst expectations of 83 cents.Revenue was 8.1 billion, in line with Wall Street estimates, and up from $7.9 billion.
Infosys Technologies to report after closing bell tomorrow
Crude oil futures fell today but once again stayed above $72/barrel today on speculation that demand will decline as US refineries shut units. Crude-oil futures for light sweet crude for August delivery closed at $72.19/barrel (lower by $0.62/barrel or 0.85%) on the New York Mercantile Exchange. It was the first decline in eight sessions but prices reached $73 during intraday sessions.
Today, the International Energy Agency revised its world oil demand forecast and said that it would rise faster than expected over the next five years. Global oil demand is forecast to expand by 1.9 million barrels a day (2.2%) a year on average, reaching 95.8 million barrels a day by 2012. The previous medium-term forecast estimated growth of 2%.
Trading volumes showed 1.3 billion shares trading on the New York Stock Exchange and 1.9 billion trading on the Nasdaq stock market. Gaining issues topped decliners by 17 to 15 on the NYSE, while decliners topped gainers by 15 to 14 on Nasdaq.
For tomorrow, market will continue to focus on quarterly earnings reports. Pepsi Bottling Group will report its quarterly results before the market open, while Infosys Technologies will report after the closing bell. On the economic front, wholesale inventories for May will be out at 10:30 ET.
Wild Picks - Bhagiradh Chemicals, Thirumalai, Diamines, XCL and Dujodwala
Wild Picks observes, one of the popular operators, has interest in Bhagiradh Chemicals, Thirumalai, Diamines, XCL, Dujodwala. These stocks might move - should be strictly used for trading purposes.
Disclaimer: Don't blame us if the operator goes Kaput or gets probed by SEBI!
Morning Call - July 10 2007
Market Grape Wine :
In House :
Nifty at a support of 4290 ( positional stop loss of Nifty ) , 4382 and 4351 levels with resistance at 4445 & 4472
Buy : intraday : Adlabs above 573 target 590 s/l of 565
Buy : intraday in F&O : ZEE above 324 target 338 s/l of 319
Buy : intraday in F&O : BOB above 283 target 292 s/l of 279
Buy : Nicolaspiramal in Intraday above 299.5 target 310 s/l of 294.5
Out House :
Markets at a support of 14909 & 14786 levels with resistance at 15095 & 15115 levels .
Buy : IciciBank & SBIN
Buy : Century & JPAsso
Buy : Bhel , & ABB
Buy : Kesoram & ACC
Buy : IDBI & IFCI
Buy : Apil & IndiaInfoline bullet
Buy : Sail & JSW
Buy : IBulls & IBReal & DLF
Dark Horse : WelspunGuj , ACC , BajajHind ,APIL , IDBI , SBIN , IbullReal & Century
Bullet : IOlBroad , Bhel & AsianElec with strict stop loss
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