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Monday, November 01, 2010

Pre Market Commentary - Nov 1 2010


In the last trading session, Nifty rebounded smartly on the back of better than expected earnings report by ICICI bank and BHEL and closed above 6,000 level. Now, immediate resistance for Nifty comes at 6,080 and moving and sustaining above will recheck 6,125 level while immediate bigger support comes at 5,980 and break below 5,980 levels could drag Nifty to 5,920-5,950 on the downside. Further, on derivative front, aggressive buying in OTM call and writing in OTM put is indicating an upward trend in market.

Market set for upbeat start on firm Asian stocks


The market is geared for a strong start on a rally in Asian stocks triggered by strong Chinese manufacturing data. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could advance 60 points at the opening bell. Cement, auto and steel companies will be in focus as firms in these sector announce their sales figures for the month of October 2010. Quarterly earnings from index heavyweight Reliance Industries unveiled on 30 October 2010 were in line with market expectations.

Precious metals witness strong weekly and monthly gains


Silver registers third consecutive healthy monthly gains

Precious metal prices registered strong gains for the month of October 2010. Prices ended with modest gains on the last trading day of October, Friday, 29 October 2010 at Comex. Anticipation among traders regarding Fed's moves on quantitative easing next week took precious metals higher. The dollar also softened on Friday.

Crude ends marginally lower


Natural gas vaults substantially during the week

Crude oil prices ended lower on Friday, 29 October 2010 at Nymex. Somber economic data and steady dollar pushed prices lower.

Gravitas India Grey Market Premiums


Company Name

Offer Price

(Rs.)

Premium

(Rs.)

Coal India

245.00

38 to 40

Gravita India Ltd.

120 to 125

20 to 22

Sensex head towards a strong start


The domestic indices are likely to start the session on a strong note on the back of positive Asian markets

Headlines for the day:

Government sees 3G auction as model for other sectors

Mahindra likely to bag Ssangyong by March

RIL to invest $5 billion in US shale assets in next 5 years

Daily News Roundup - Nov 1 2010


Norwegian government has offered ONGC a stake in a US$1bn carbon capture storage project at Statoil’s Mongstad oil refinery in Norway. (BS)

Reliance Industries plans to invest around US$15bn in the next five years in its petrochemical business and to develop shale gas assets in the US. (BS)

A consortium led by GSPC and also comprising Indian Oil, HPCL and BPCL, is set to get authorization for three major gas line projects worth 180bn. (BS)

Nice November start!


I guess we all like to be recognized not for one piece of fireworks, but for the ledger of our daily work. - Neil Armstrong.

The fireworks may be missing for now but looks like we are set to start the event-packed Diwali week on a positive note. Most Asian markets are up after China’s official manufacturing PMI expanded at the fastest pace in six months in October. But shares in Japan are down owing to a few disappointing earnings. US and European markets closed flat on Friday.

Morning Notes - Nov 1 2010


Morning Notes - Nov 1 2010

SGX Nifty Live Update - Nov 1 2010


6,103.00 +63.00

Sunday, October 31, 2010

Gravitas India IPO Review


Investors can consider giving the IPO from lead metal recycler, Gravitas India, a miss on account of the company's weak operational track record, and forays into foreign markets such as Ghana, Senegal, and Ethiopia without the desired stability in its domestic operations. The company also faces significant headwinds in terms of tightening primary lead prices, which could translate into higher raw material costs and margin pressures.

Dewan Housing Finance


Fresh investments with a more-than-two-year-horizon can be considered in the stock of Dewan Housing Finance, a non-banking finance company that extends loans predominantly to lower and middle-income groups and has presence in Tier-II and Tier-III cities.

Piramal Healthcare Ltd


Shareholders can remain invested in the stock of Piramal Healthcare in the near-term. With its key cash cow sold to Abbott Labs, the stock's current valuations largely take support from the cash value on its books.

EID Parry


The stock of EID-Parry offers a good investment proposition for investors with a two/three-year holding period, as it trades at a deep discount to the intrinsic value of its sugar and farm input businesses put together.

Buy Gold this Diwali


Buying gold during Diwali is considered auspicious. But is it only superstition or has the ‘yellow' metal really brought riches for its buyers? Well, investors who bet on gold for capital appreciation have made money, if the trend in the last five years is anything to go by. The price of gold has gone up from Rs 875/gm during Diwali 2006 to around Rs 1,968/gm now, appreciating at about 22 per cent annually on a compounded basis over the last four years.