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Wednesday, September 22, 2010
Investors lock profit after indices peak 32 month highs
The key benchmark indices took a breather after a three-day winning streak with negative global cues playing the spoilsport. Investors took some cash off the table after the recent strong gains which saw indices scale their 32 month highs. High volatility was the hallmark of the day's trading session. Both the BSE Sensex and S&P CNX Nifty closed below the psychological levels of 20,000 and 6,000 respectively after trumping these levels in early trade to scale 32-month peak. The BSE 30-share Sensex was down 59.83 points or 0.3%, off close to 160 points from the day's high and up close to 140 points from the day's low.
Crude back in the red
Prices drop as investors mull over economic recovery
Crude oil prices slipped once again on Tuesday, 21 September 2010 at Nymex. Prices dropped as investors failed to understand the pace of US economic recovery following the FOMC meeting details. Prices had registered gains a day before for the first time in five days.
Gold continues to shine
Silver drops again from its thirty-year high level
Precious metals ended mixed on Tuesday, 21 September 2010 at Comex. Yellow metal prices struck new record but silver reversed ended lower once again. Last week, silver had registered its highest close in three decades time. Gold prices shone following comments from Federal Reserve.
Market seen extending three-day gains
The market is likely to continue to recent upmove following positive global cues after the US Federal Reserve hinted it could take additional measures to stimulate economic growth. Trading of the S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could rise 14 points at the opening bell.
All the Latest Grey Market Premiums - Sep 22 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Indosolar Ltd. | 29 (Lower Band) | 0.70 to 0.75 (Paise) |
| Tirupati Inks (FPO) | 43 (Upper Band) | 8 to 9 |
| Career Point Infosystems | 295 to 310 | 130 to 135 |
| Eros International | 158 to 175 | 41 to 42 |
| Microsec Fin | 113 to 118 | 22 to 23 |
| Ramky Infrastructure Ltd. | 405 to 468 | 32 to 34 |
| Orient Green Power | 47 to 55 | 2 to 2.50 |
| Electro Steel | 10 to 11 | 1.20 to 1.25 |
| Gallantt Ispat | 50 (Fixed Price) | 4 to 5 |
| VA Tech Wabag | 1230 to 1310 | 330 to 340 |
| Cantabil Retail | 127 to 135 | 15 to 17 |
| Tecpro Systems | 340 to 355 | 60 to 63 |
| Ashok Buildcon | 297 to 324 | 43 to 44 |
| Sea TV Network | 90 to 100 | 19 to 21 |
| Bedmutha Ind. | 95 to 102 |
Psychological, don't get illogical!
The major psychological insight I’ve arrived at in life is that the psyche isn’t logical. - Anonymous.
The psyche of the bulls is hard to explain. There appears to be no end in sight to the liquidity deluge that has propelled the main Indian stock indices closer to all-time highs. But, leave no room for complacency as the market could not sustain gains on Tuesday and lack of participation by the broader market perhaps tells a different story. The frenzied, mindless euphoria of January 2008 is missing. People are more cautious and a little skeptical too. The worry of course is continuous selling by our local institutions.
Markets may see a strong start
Headlines for the day:
EGoM could save 2G telcos Rs20,000 crore
ONGC bids for Arctic oilfields in Russia
Indian Oil Corporation to invest Rs47,000 crore this year
Daily News Roundup - Sep 22 2010
Nord Imperial, the Russian subsidiary of India’s state-run ONGC, has entered the fray to bid for the Trebs and Titov deposits, the largest unallotted hydrocarbon fields remaining in Russia. (BS)
Ranbaxy has received an exclusive six-month marketing opportunity to sell a generic version of Japanese drugmaker Eisai’s drug for Alzheimer’s in the US. (BS)
Nifty ends above 6000...Sensex recaptures 20000
The benchmark Indian stock indices ended above key psychological levels as the Euphoria continued on Dalal Street. Markets extended recent gains ahead of the FOMC meet tonight and the upswing was led by IT, Telecom and Capital Goods stocks.
Asian stocks open positive
Asian stocks rose, driving the MSCI Asia Pacific Index higher for a fourth day, overshadowing declines by Japan`s exporters after the dollar weakened against the yen.
Sterlite Technologies
We recommend a buy in the stock of Sterlite Technologies from a short-term perspective. It is apparent from the charts of the stock that it has been on a steady long-term uptrend forming higher peaks and higher troughs from its January 2009 low of Rs 8.8. However, following a short-term correction from its high of Rs 123 this June, the stock found support retracing 23.6 per cent fibonacci retracement of around Rs 95 in early September. This level is also an important medium-term support level for the stock. On Tuesday, the stock gained 3 per cent closing above its 21-day moving average. We observe that there is an increase in volume in the past two trading sessions. The daily and weekly relative strength indices are rising in the neutral region towards bullish zone. Daily moving average convergence divergence oscillator has signalled a buy and is inching towards positive territory. Taking into consideration the presence of key support and its long-term uptrend still being in place, we are bullish on the stock. We expect it to move up until it hits our price target of Rs 102 or Rs 104 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 96.
via BL
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