Daily Market Strategy - Sep 2 2010
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Thursday, September 02, 2010
Markets expect a strong start
Headlines for the day:
Fortis plans to list SRL in 2011
IRDA clears 51 unit-linked plans
Indian Bank may sell Rs900 crore bad loans to ARC
Market seen extending Wednesday's rally on upbeat global cues; inflation data eyed
The market is likely to extend Wednesday (1 September 2010)'s 1.31% gains on upbeat global cues following encouraging economic data in the US. Asian markets were trading firm. Trading of the S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could gain 35 points at the opening bell.
Daily News Roundup - Sep 2 2010
Reliance Industries has hiked its stake in hospitality firm EIH Ltd to 14.8%, taking the Mukesh Ambani-led firm a step closer to the threshold limit of 15% for making an open offer. (BS)
Jaguar Land Rover, a Tata Motors subsidiary, will launch a slew of entry-level cars, including a station wagon and a roadster, to boost volumes across markets. (ET)
Sensex starts September on strong note
The Indian market kicked off the first trading day of September on a high and closed the session with a big bang, as investors snapped up beaten down stocks following the recent reversals. The sentiment got a boost after data showed improvement in China's manufacturing sector output and Australia's GDP growth.
CEAT
We recommend a buy in the stock of CEAT from a short-term perspective. It is seen from the charts of the stock that it had been on an intermediate-term downtrend from its October 2009 peak of Rs 190 until it found support at around Rs 125 in May 2010. However, after hovering between Rs 125 and Rs 130 , the stock started to trend up and has since been on a medium term uptrend. On August 17, the sock jumped 12 per cent accompanied with good volumes, conclusively penetrating its 50 and 200-day moving averages. Thereafter, the stock decisively breached its intermediate-term downtrend line, signalling resumption of uptrend. Moreover, on Wednesday, the stock bounced up 6.6 per cent reinforcing the bullish momentum. The stock is trading well above its 50 and 200-day moving averages. The daily relative strength index has re-entered into the bullish zone from the neutral region and weekly RSI is on the brink of entering into this zone. Further, the weekly moving average convergence divergence oscillator is likely to enter into the positive territory implying upward momentum.
Super Religare Laboratories plans IPO in 2011
Fortis Healthcare plans to launch an initial public offer (IPO) for its diagnostics business unit, Super Religare Laboratories (SRL), in the next calendar year (2011), a top company official said today, reports agency source.
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