One fine day for bears...

Red sky at night, sailors delight; red sky at morning, sailors warning

After bouncing back in style and creating a record turnover on Thursday, the bulls are set to drown at opening thanks to the global weakness. With a lot of money waiting on the sidelines, expect a cushion to be provided later in the day or early next week. The Cabinet Committee on Economic Affairs has given its nod for removing the prohibition on investment of surplus funds of navratnas and miniratnas in equity mutual funds. FII investments in Indian equities this calendar year has reached over $10bn as against $8bn invested in calendar 2006. But all these and any other positives will be ignored at start.

Wall Street came crumbling down after long. US stocks fell on signs of further weakness in the housing sector. The Dow Jones industrial average shed 312 points to close at 13,473. The Nasdaq dropped 49 points to end at 2599. Indian ADRs too were deep in the red. Patni Computers fell 5.5% to $23.90. Infosys, Satyam, Wipro, ICICI Bank, HDFC Bank, MTNL, VSNL and Tata Motors lost in a range of 2-5% each.

Asian stocks recorded one of its worst fall in four months on speculation that a worsening U.S. housing slump will slow growth in the world's biggest economy and prompt investors to shun riskier assets.

Inflation numbers will also be closely watched as RBI will announce its outlook and next course of action. Among the results being announced today include - Adani Ent, Avaya Global, BPCL, Bata, CEAT, IOB, J&K Bank, Madras Cements, MTNL, Moser Baer, Nagarjuna Fertilizers, NIIT Tech, Peninsula Land, STAR, Titan and Tata Chemicals.

French car maker Renault today said it was in talks with Bajaj Auto, the two-wheeler maker, for producing a car worth around Rs 1.20 lakh.

Nestle India today entered the probiotic milk market by launching its new low-fat product, Nestle Nesvita Dahi. Yakult Danone India, an equal joint venture between Yakult Honsha of
Japan and Group Danone of France, and Mother Dairy too announced their entry into the probiotic market with a probiotic health drink and yoghurt.

It was yet another historic session, however not for touching new peaks but for record turnover in F&O segment and market. A late bounce enabled the bulls to recover yesterday’s losses as smooth rollover aided the key indices to record smart gains. Heavyweights like Reliance Industries, Infosys, ONGC and TCS led the rally, even the Mid-Cap and the Small Cap stocks joined the upsurge. Finally, BSE 30-share Sensex added 76 points to close at 15776. NSE-50 Nifty gained 29 points to close at 4618.

NSE F&O and market wide turnover hit record high for third straight trading session. NSE F&O turnover hit a new high of Rs79,996cr and total market turnover hit 1.01 Lakh crore for the first time ever.

Maruti surged by over 3% to Rs835 after the company’s result beat market estimates it declared its Q1 net profit at Rs4.99bn ( up 34%) and sales at Rs3914bn ( up 26%). The scrip touched an intra-day high of Rs857 and a low of Rs810 and recorded volumes of over 31,00,000 shares on NSE.

Suzlon Energy plunged over 8% to Rs1289 after the company’s profit dropped 48% below estimates. Its Q1 profit dropped 54% to Rs894mn and net sales declined 10% to Rs8.39bn. The scrip touched an intra-day high of Rs1379 and a low of Rs1285 and recorded volumes of over 20,00,000 shares on NSE.

Bharti Airtel lost 2.5% to Rs923 after the company’s profit missed estimates. The company announced its Q1 result with profit at Rs14.13bn (up 73.5%) and net sales at Rs56.12bn (up 52.4%). The scrip touched an intra-day high of Rs959 and a low of Rs913 and recorded volumes of over 22,00,000 shares on NSE.

Cummins India edged higher by 0.5% to Rs385 after the company declared its Q1 result with net profit at Rs640.2mn (up 26%) and sales at Rs5.42bn (up 38.6%). The scrip touched an intra-day high of Rs402 and a low of Rs382 and recorded volumes of over 2,00,000 shares on NSE.

GT Offshore marginally gained by 0.3% to Rs811 after the Board of Directors of the company planned to raise FII limit to 49% from 24%. The scrip touched an intra-day high of Rs832 and a low of Rs802 and recorded volumes of over 1,00,000 shares on NSE.

Tata Motors pared its intra-day gains as the scrip marginally slipped 0.2% to Rs725. Reports stated that the company has won bidding for Land Rover, Jaguar. The scrip touched an intra-day high of Rs762 and a low of Rs725 and recorded volumes of over 31,00,000 shares on NSE.

Sugar stocks were back in action as reports stated that government is likely to lift restriction on Sugar exports. Bajaj Hindusthan surged by over 3% to Rs159, Balrampur Chini advanced 5% to Rs70, Renuka Sugar was up by 4.5% to Rs631 and Sakhti Sugar added 7% to Rs86.

Public sector Oil Marketing Companies ended with smart gains. Media reports stated that pressure is mounting on the Government to raise local retail prices of petrol and diesel following the spike in crude oil prices. HPCL gained 2.4%to Rs262, BPCL was up by 1.3%to Rs318. However, IOC slipped 2.3% to Rs410.

Banking stocks were on the receiving end led by fall in heavyweight HDFC Bank slipped by 1.5% to Rs1221, SBI was down by 1.7%to Rs1542, ICICI Bank slipped 1.2% to Rs946. PNB, Corp Bank and Syndicate Bank were the major losers among the Mid-Cap stocks.

Pharma stocks were in good health led by Ranbaxy Cipla rose over 4.5% to Rs194 after the company settled patent dispute with GSK, Dr Reddy’s Lab was up by 0.5% to Rs663, Wockhardt pharma gained by over 3.5% to Rs396 and Glenmark added 0.2% to Rs690.

IT stocks also gained momentum led by IT bellwether Infosys as the scrip advanced 1.6% to Rs2020 after the company announced that it won a seven-year, US$250mn contract from Royal Philips Electronics, Wipro surged by over 3.5% to Rs518 and Satyam Computer added 1.3% to Rs494.

With F&O settlement behind us, bulls will look forward towards the RBI meet later next week as major good news from the corporate earnings are being factored in the price of the stocks. Though, on the whole outlook remains positive given the strong FII inflow. Having said that our bourses are not isolated and cues from the international markets would once again play vital role in keeping the sentiment of the traders intact. Inflation numbers would also be the key factor to watch out for.

Results Today:

Adani Ent, Avaya Global, BPCL, Bata, CEAT, IOB, J&K Bank, Madras Cements, MTNL, Moser Baer, Nagarjuna
Fertilizers, NIIT Tech, Peninsula Land, STAR, Titan and Tata Chemicals.

Fund Activity:

FIIs were net buyers of Rs2.78bn (provisional) in the cash segment on Thursday. On the other hand, local institutions were net sellers at Rs1.44bn. In the F&O segment, FIIs were net sellers at Rs11.74bn.

On Wednesday, FIIs sold worth Rs0.59bn in the cash segment. Mutual Funds were net buyers at Rs0.52bn.

Major bulk Deals:

Fidelity bought BILT. Reliance MF bought Bombay Dyeing while Morgan Stanley was the seller. Goldman Sachs bought CESC. Morgan bought IDFC while UBS Securities was the seller. Citigroup bought Karutiri Networks while BSMA was the seller. Bulk deals were seen on counters like Sadbhav Engineering and newly listed Surya Chakra.

Insider Trades:

Polaris Software Lab Limited: Manju Jain, W/o Mr. Arjun Jain, Chairman & Managing Director has purchased from open
market 75000 equity shares of the company on 20th July, 2007

NELCO Limited: Portfolio Management Schemes of Kotak Securities Ltd has purchased from open market 77207 equity
shares of the company on 20th July, 2007.

Lower Circuit:

IID Forgings and Prism Cement.

Upper Circuit:

Hindustan Oil, Goldstone Technologies, Ganesh Forgings, Bag Film, Evinix, Jai Corp, Raj Tele, Ramco Systems, Ruby Mills and Bank of Rajasthan

Delivery Delight (Rising Price & Rising Delivery):

Balrampur Chini, CESC, HCL Tech, HPCL, IDFC, Satyam.
Abnormal Delivery:

Voltas, Bombay Dyeing, Sesa Goa, IndusInd Bank, Neyveli Lignite, Ballarpur Industries

Major News & Announcements:
Government likely to lift restriction on Sugar exports – Reports

Bharti Airtel Q1 profit at Rs14.13bn (up 73.5%), net sales at Rs56.12bn (up 52.4%)

Alfa Laval Q2 profit at Rs200.98mn (up 7%), revenue at Rs1.55bn (up 7.6%)

Subex Azure to hive off Service biz
Jai Corp Board to consider stock split on July 31

Tata wins bidding for Land Rover, Jaguar – Reports

Glaxo Q1 profit at Rs964.3mn (up 5.9%), net sales at Rs3.96 (down 2.7%)

Dabur Pharma Q1 profit at Rs1.33bn (up 101%), net sales at Rs740mn (down 8.7%)

Maruti Q1 profit at Rs4.99bn (up 34%), sales at Rs3914bn (up 26%)

GT Offshore plans to raise FII limit to 49% from 24%

Cummins India Q1 net profit at Rs640.2mn (up 26%) and sales at Rs5.42bn (up 38.6%)

Government to ease cement import norms to lower prices – Reports

Ranbaxy, GSK agree to settle US patent dispute

Suzlon plans to list in Europe at Appropriate Time

Market Close: Volatile FNO closing as expected !

Markets closed with modest gains after a volatile session all day. Not much support was seen from the global cues as the Asian markets closed mixed after starting in green. As a result of FNO expiry Indian indices had a rough session. Indices started on a firm note. The market saw healthy rollover of derivative positions from the July 2007 series to the August 2007 series. Selling pressure kept the indices in negative in the the mid session. Indices surged in the late session with buying in select index heavy weights. The market turnover hit a record high for the third day at Rs 1 lak cr. Except Banking, Capital Goods and Metals most sectors closed in green. IT, Realty, Auto and Health Care stocks outperformed the day. Mid caps ended inline with the front line indices but the small caps had something to cheer for the day. Ranbaxy was the star performer for the day as a result of settlement of a patent issue.

Sensex closed up 77 points at 15776.31 helped up by gains in Ranbaxy (373.4,+9 percent), Cipla (193.55,+4 percent), Maruti (841,+4 percent), TCS (1185.3,+3 percent) and HDFC (2021.35,+3 percent). Restricting the gains are ACC (1021.65,-5 percent), Guj Ambuja (124.7,-3 percent), Bharti Tele (925.25,-2 percent), BHEL (1755.2,-2 percent) and HDFC Bk (1219.05,-2 percent).
ABG is one of the largest private sector ship building manufacturering capability of marine ships including Bulk carriers, Deck barges, Interceptor boats, Anchor handling supply ships, Diving support ships, Tugs and Offshore vessels. ABG reported a good numbers. Revenues grew by 23% to Rs 203 cr on yoy basis led by the capacity expansion undertaken at the Surat facility. Ebidta margins for the quarter remained flat at 27% Bottomline was up 24% to Rs 33 cr yoy/. At the current market price Rs 537 the stock trades at 22 times of trailing earnings. The outstanding order book stood at Rs 5560 cr. Expect an updated research note. on this one.

Maruti Udyog reported good numbers with Income up 27% to Rs 4154 cr. The net profit was up 35% at Rs 499 cr vs Rs 370 cr. Despite the slowdown in Auto sector the company has reported good results. Competition continues to threaten. All companies are now launching new models and offering discounts too which could pressure margins. Auto stocks closed strong for the day, Maruti closed up by 3.75%, M&M ended up by 2.55% and Tata Motors closed marginally down.

Technically Speaking: Market saw volatile sessions throught out the day but finally closed in the green territory. Sensex touched intraday high of 15812 and low of 15654. Market turnover was good as it churned out Rs 5719 cr. Overall breadth was in favor of Advances, where the Advances to Declines ratio stood at 1.5:1. Sensex has closed the third consecutive day without any direction. The Open and the Close has almost been the same. Such indecision will be resolved when the Sensex moves either above 15860 or breaks below 15575. Trade in the direction of the breakout.

YES Bank - fee income supports bottom line; margins decline; result flash Q1FY08; maintain Buy

YES Bank - fee income supports bottom line; margins decline; result flash Q1FY08; maintain Buy

Indian Hotel Sector Report

Indian Hotel Sector Report

UltraTech Cement - treading on; result update Q1FY08; maintain Reduce

UltraTech Cement - treading on; result update Q1FY08; maintain Reduce

Macro Meter: Credit softening; Inflation to comfort levels

Macro Meter: Credit softening; Inflation to comfort levels

Economy, Cipla, Jubilant Organosys, Ultratech Cement

Economy, Cipla, Jubilant Organosys, Ultratech Cement

Blue Star - Buy

Blue Star - Buy

Eveninger - July 26 2007

Eveninger - July 26 2007

Short Term Trading Calls

Buy Reliance Capital with stop loss of Rs 1180 for target of Rs 1375.
Buy Educomp with stop loss of Rs 2200 for target of Rs 2760.
Buy Global Vectra with stop loss of Rs 198 for short-term target of Rs 236.
Buy Lumax Auto Technology with a stop loss of Rs 80 for short-term target of Rs 112.

Sensex recovers on late buying

The market resumed in the green despite weak Asian cues and rallied sharply led by capital goods and auto stocks. Energy majors Reliance Industries and ONGC also supported indices. The Sensex came of its high as profit selling began in mid-morning trades and slipped into the red as investor confidence waned. The index majors ACC and Bharti Airtel led the slump and the Sensex touched the intra-day low of 15,654. The market remained subdued thereafter but recovered on a hectic buying in heavyweights, IT and pharma stocks towards the close. The Sensex finally wrapped up the session with the gains of 77 points at 15,776. The Nifty closed 31 points up at 4,620.

The breadth of the market was positive, with gainers outnumbering losers in the ratio of 1.42:1. Of the 2,657 stocks traded on the BSE 1,529 stocks advanced, 1,062 stocks declined and 66 stocks ended unchanged. Among the sectoral indices the BSE IT Index flared up by 1.92%, the BSE Realty Index rose 1.54%, the BSE Oil & Gas Index and the BSE HC Index moved up by 1.49%. However, the BSE Bankex Index, the BSE CG Index and the BSE Metal Index closed in the red.

Among the index heavyweights, Ranbaxy was the star performer and surged 9.49% at Rs373. Cipla spurted 4.19% at Rs194, Maruti Udyog scaled up 3.88% at Rs841, Wipro soared 3.24% at Rs515, TCS advanced 3.21% at Rs1,186, Reliance Energy moved up by 2.80% at Rs780 and M&M added 2.36% at Rs801. However, ACC tumbled 4.56% at Rs1,022, Ambuja Cement slipped 2.84% at Rs125, Bharti Airtel fell 2.28% at Rs925, BHEL was down 1.93% at Rs1,755 and HDFC Bank shed 1.82% at Rs1,219.

IT stocks registered significant gains. Rolta India surged 4.35% at Rs493, Mphasis soared 3.29% at Rs278, Infosys firmed up by 2.26% at Rs2,035 and HCL Technologies added 1.81% at Rs327.

Over 2.84 crore IFCI shares changed hands on the BSE followed by Manglore Chemical & Fertilizer (1.47 crore shares), Suryachakra Power Corporation (1.36 crore shares), IDFC (1.31 crore shares) and IKF Technologies (80.04 lakh shares).

HDFC was the most actively traded counter on the BSE and registered a turnover of Rs369 crore followed by IFCI (Rs160 crore), Reliance Industries (Rs153 crore), IDFC (Rs151 crore) and DLF (Rs145 crore)

IT stocks stage a comeback

The market posted modest gains amid high volatility today, 26 July 2007, the day the July 2007 derivatives contracts expired. It was firm in the first half of the day following healthy rollover of derivative positions from the July 2007 series to the August 2007 series. But it weakened in mid-afternoon trade on profit booking, before bouncing back again in late trade. The turnover in NSE's derivatives segment hit record high for the third consecutive day.

Shares from auto, pharma and IT sectors were in demand, while cement, banking and capital goods stocks edged lower. Sugar stocks spiked at the fag end of the trading session. Global markets were subdued.

Meanwhile, the International Monetary Fund (IMF) on Wednesday, 25 July 2007, revised upwards its growth projections for the global economy, citing accelerating growth in China, India and Russia, while the United States appears to be regaining momentum. The IMF's updated World Economic Outlook forecast global growth of 5.2% for both calendar year 2007 and 2008, up from its earlier forecast of 4.9% growth for both years.

The BSE 30-share Sensex rose 76.98 points to 15,776.31. It opened higher at 15,768.28 and jumped to a high of 15,812.27. The index also slipped to a low of 15,654.40 at 13:01 IST

The S&P CNX Nifty was up 31.10 points to 4,619.80. The Nifty July 2007 derivatives contracts expired today. Nifty August 2007 futures settled at 4581.50, a sharp discount of 38.30 points as compared to spot closing.

The NSE F&O turnover was a record Rs 79,995.85 crore as compared to Rs 72,365.46 crore on Wednesday, 25 July 2007.

The market breadth, indicating the overall health of the market, held firm as small- and mid-cap stocks saw continued buying interest. On BSE, 1,558 shares advanced as compared to 1,100 that declined, while 73 remained unchanged

The BSE Mid-Cap index rose 35 points or 0.5% to 6,790.50 while the BSE Small-Cap index advanced 90 points or 1.1% to at 8,145.86.

The total turnover on BSE amounted to Rs 5,719 crore as compared to Rs 5,929 crore on Wednesday, 25 July 2007.

Among the 30-Sensex pack, 18 gained and the rest declined

IT pivotals rose on stock-specific buying despite the Indian rupee heading towards a nine-year high on Thursday, 26 July 2007, in anticipation of strong capital inflow.

India’s second largest software services exporter Infosys Technologies gained 1.81% to Rs 2,026 after it bagged a $250-million (around Rs 1,010 crore) contract from Royal Philips Electronics. It is one of the largest acquisition-cum-outsourcing deal by an Indian information technology firm.

TCS (up 3.13% to Rs 1185), Wipro (up 4.22% to Rs 520) and Satyam Computers (up 1.64% to Rs 494.90) gained in anticipation of further mergers and acquisitions activity in the IT sector. The BSE IT Index gained 1.92% at 5,001.24, and was the top gainer among the sectoral indices on BSE.

In early trade, the rupee was at 40.31/32 per dollar, strengthening from the previous close of 40.3500/3575 and inching towards from a nine-year high of 40.20 hit earlier this week.

India’s largest drug manufacturer by sales Ranbaxy Laboratories jumped 9.95% to Rs 375 on 19.34 lakh shares. It was the top gainer from the Sensex pack. The stock rose after Ranbaxy today, 26 July 2007, reached an agreement with GlaxoSmithKline (GSK) to end their litigation in the US on Valtrex (valacyclovir hydrochloride tablets) used in the treatment of herpes.

Other pharma stocks Cipla (up 4.16% to Rs 193.90) and Dr Reddy’s Laboratories (up 0.29% to Rs 667.40) also edged higher. The BSE Health Care Index was up 1.5% at 3,788.36.

Auto stocks advanced on fresh buying interest in anticipation that sales will pick up after monsoon, generally a slack season. Bajaj Auto (up 1% to Rs 2378) and Mahindra & Mahindra (up 2.55% to Rs 802) advanced. The BSE Auto Index closed at 5,096.44, up 1.5%.

Maruti Udyog vaulted 3.38% to Rs 837 after India’s biggest small car maker today, 26 July 2007, reported a 35.1% growth to Rs 499.60 crore in net profit in Q1 June 2007 over Q1 June 2006. Net sales were up 26% at Rs 3,930.82 crore. Maruti Udyog will be renamed as Maruti Suzuki India.

Cement shares declined for the second straight day on fresh selling following reports that the goverment is easing cement import norms in an attempt to rein in prices. India’s second largest cement manufacturer ACC plunged 4.55% to Rs 1,021.80 on 3.82 lakh shares. It was the top loser from the Sensex pack.

Ambuja Cements (down 3% to Rs 124.50) and Shree Cement (down 2.86% to Rs 1,280) also slipped.

Cement scrips had fallen yesterday, Wednesday, 25 July 2007, following reports that the Monopolies and Restrictive Trade Practices Commission (MRTCP) had on Tuesday, 24 July 2007, ordered a probe into the business practices of 14 leading cement manufacturers.

The country’s biggest private sector company Reliance Industries (RIL) advanced 1.92% to Rs 1,940, after striking an all-time high of Rs 1,948. RIL's results are due on Saturday, 28 July 2007. The market expects surprise on the positive side.

Capital goods heavyweights Bhel (down 2.05% to Rs 1,753) and L&T (down 1.13% to Rs 2,544.50) declined on profit booking after a recent rally. The BSE Capital Goods index lost 1.35% to 13,247.03, and was the worst performing sectoral index on BSE

Top cellular services provider Bharti Airtel dropped 2.30% to Rs 925 on profit taking even as it reported robust Q1 June 2007 results. The stock had hit an all-time high of Rs 960 in early trade. Bharti Airtel’s consolidated net profit as per US GAAP jumped 100% to Rs 1,511.60 crore in Q1 June 2007 over Q1 June 2006, exceeding market expectations. Revenue rose 53% to Rs 5,904.60 crore in Q1 June 2007 over Q1 June 2006. Revenue growth was within market expectation.

Bank shares drifted lower on selling pressure. HDFC Bank (down 2.12% to Rs 1,215), State Bank of India (down 1.2% to Rs 1,549) and ICICI Bank (down 1.51% to Rs 945) slipped. With inflation under control, the Reserva Bank of India (RBI) is likely to keep rates steady when the monetary policy comes up for review on 31 July 2007. However, it remains to be seen whether the central bank will raise the cash reserve ratio (CRR) to suck out excess liquidity in the banking system. BSE Bankex lost 1.2% at 8,185.52.

India’s biggest cigarette maker ITC lost 0.21% to Rs 165.50. The stock had surged almost 9% on Wednesday, 25 July 2007, on market talks it may announce demerger of its agri business. ITC announces Q1 June 2007 results tomorrow, 27 July 2007.

Sugar stocks spurted at the fag end of the trading session. Shree Renuka Sugars (up 5.51% to Rs 635), Bajaj Hindustan (up 4.30% to Rs 160.20) and Balrampur Chini Mills (up 5.45% to Rs 70.65), galloped.

NDTV (up 4.44% to Rs 400.90) and IFCI (up 9.43% to Rs 58) rose on build-up of fresh positions after NSE lifted the ban building fresh derivatives positions in these two stocks.

IDFC rose 2.30% to Rs 134.90 after 74.32 lakh shares changed hands at Rs 134 per share on BSE in early trade. IDFC’s net profit rose 38.42% to Rs 167.81 crore in Q1 June 2007 over Q1 June 2006. Total income surged 73.19% to Rs 556.8 crore . The company announced the Q1 results after trding hours yesterday, 25 July 2007.

Cummins India lost 0.17% to Rs 382.80 after it reported 26.07% rise in net profit to Rs 64.02 crore in Q1 June 2007 over Q1 June 2006. Total income was up 38.7% to Rs 565.49 crore in Q1 June 2007 over Q1 June 2006.

3i Infotech rose jumped 5.20% to Rs 306.35 after its net profit rose 39.09% to Rs 21.42 crore in Q1 June 2007 over Q4 march 2007. Sales were up 25.43% to Rs 118.81 crore in Q1 June 2007 over Q4 March 2007.

Drug maker Wochkardt gained 4.47% to Rs 400 after it reported a 39.6% growth in net profit in 39.6% growth in net profit to Rs 69.10 crore in Q1 June 2007 over Q1 June 2006.

Multiplex cinema operator Shringar Cinemas gained 3.16% to Rs 62 after it reported a 314% growth in net profit to Rs 5.22 crore in Q1 June 2007 over Q1 June 2006.

Bombay Dyeing & Manufacturing Company advanced 6.0% to Rs 618 on promoters' intention to raise their stake. The Wadia family, directly and indirectly, owns 43% in the textile company.

Sterlite Industries declined 2.90% to Rs 651 after posting 9.85% fall in net profit in Q1 June 2007 to Rs 201.46 crore over Q1 June 2006. Total income rose 31.70% to Rs 3,165.85 in Q1 June 2007 over Q1 June 2006.

India's largest wind turbine generator Suzlon Energy plunged 7.98% to Rs 1,290 after its net profit declined 53.8% to Rs 89.4 crore in Q1 June 2007 over Q1 June 2006. Total income dipped 8.85% to Rs 862.9 crore in Q1 June 2007 over Q1 June 2006. The company made this announcement before market hours today, 26 July 2007.

Hitachi Home & Life Solutions (India) galloped 11.26% to Rs 123.50 after its net profit jumped 95.83% to Rs 17.37 crore in Q1 June 2007 over Q1 June 2006. Sales rose 27.95% to Rs 148.49 crore.

Japanese shares fell today, 26 July 2007, on decline in stocks of exporters such as Canon Inc. and Advantest Corp., although strong earnings reports lifted shares of Honda Motor Co. and Nintendo Co. Japan's Nikkei slipped 0.88% at 17,702.09, while Hang Seng declined 0.64% to 23,211.69.

China's main stock index reached a new high on opening today, 26 July 2007, on strong corporate earnings. The Shanghai Composite Index opened higher and hit 4,357.796, breaching the previous high of 4,335.96 set on 29 May 2007. It was up 0.52% to 4,346.51

European markets were trading slightly weaker today, 26 July 2007.

Wall Street rose yesterday, 25 July 2007, on some strong earnings and new deals, but not without a struggle, as mounting signs of a tougher lending climate again dogged investors. The Dow Jones Industrial Average gained 68.12 points, or 0.50%, to 13,785.07. Broader stock indicators also rose in shaky trading. The Standard & Poor's 500 index climbed 7.05 points, or 0.47%, to 1,518.09, and the Nasdaq Composite index advanced 8.31 points, or 0.31%, to 2,648.17.

Crude oil rose today, 26 July 2007, for the second day in New York after a report showed US oil inventories fell for a third week and gasoline demand was near a one-year high. Crude oil for September 2007 delivery gained as much as 50 cents, or 0.7%, to $76.38 in after-hours electronic trading on the New York Mercantile Exchange. It was at $76.17 in Singapore

Metals, ONGC, HDFC, Container Corp, ABG Shipyard, Infosys, IDEA Cellular, PNB, Cement

Metals, ONGC, HDFC, Container Corp, ABG Shipyard, Infosys, IDEA Cellular, PNB, Cement

Market may remain volatile

The market may witness cautious trend as US indices closed on a firm note yesterday and Asian indices are exhibiting mixed trends in the morning trades. Although the bias remains positive, investors should maintain caution as profit taking at higher levels may pull down the market. The market is likely to remain under pressure on account of unwinding of position ahead of July series derivative contracts. Among the local indices the Nifty could test 4550 and 4500 on the downside while on the upper side it may move up to 4300. The Sensex has a likely support at 15480 and may face resistance at 15850.

US indices advanced on Wednesday, influenced by positive earnings news surging off credit and housing market jitters. While the Dow Jones gained 68 points to close at 13785, the Nasdaq advanced by 12 points at 2651.

Indian ADRs had a mixed outing on US bourses. VSNL lost 2.97% while Satyam and ICICI Bank shed over 1% each. Among other laggards Infosys, Tata motors, HDFC Bank, Patni Computer and Rediff closed with the marginal losses. However, MTNL gained 2.80%, Wipro and Dr Reddy's Lab moved up marginally.

In the crude oil front, the Nymex light crude oil for September series surged by $2.32 to close at $75.88 per barrel. The bullion Comex gold for August delivery tumbled $11 to settle at $673.80 a troy ounce.

Intraday Calls

NIFTY (4589) Supp 4567 Res 4621

Buy ONGC (934) SL 927
Target 946, 950

Buy Zee (338) SL 334
Target 345, 348

Buy HPCL (257) SL 252
Target 265, 267

Sell Bharat Forge (294) SL 298 Target 287, 284

Sell Amtek Auto (391) SL 395 Target 383, 380