Stocks in the PSU sector continued to gain capitalizing as the disinvestment euphoria continued in the markets. This time around its was HMT and ITI's turn to spike. Metals and Oil and Gas were firm thanks to the falling dollar. We expect Realty stocks to recover in today's trade where as the Metals might take a breather after dollar bounced off lows today.
Austral Coke is one stock that is looking interesting among the smallcaps. The stock has seen lot of interest among speculative investors and is showing decent strength at RS 10 level. We recommend this as a high risk trade for traders who are looking at a quick 20 - 25 percent. Fertilizer stocks showed signs of like with FACT and Nag Fert leading the gainers. We see some more room in Nag Fert after a day of consolidation.
Our recommendation IVR Prime remained locked in 10 percent circuit for the second day in a row, following a share swap deal with IVRCL Infra. We recommend Usha Martin as a midcap idea at Rs 74 for a target of Rs 85 in the short run. Also one could look at stocks like Exide Ind, Ankur Drugs and Simbhaoli Sugars in the midcap space.
Overall momentum is with the bulls and investors are relatively less cautious than they were a week ago
Wednesday, November 11, 2009
Time to ??????.Subscribe to know
Tuesday, November 10, 2009
Markets on a roll, winning streak to continue for the indices
Investors look forward for another strong session after stocks put a good show on Dalal Street on Monday. We are expecting the Sensex to open nearly one percent higher for the day, following strong performance in the global equity markets.
Banking stocks dominated the trade on Monday and are likely to continue their up trend in to the morning session today. There has been fund buying in select Realty counters especially, Shoba developers which was locked in circuit. We have seen some strong operator activity in another Realty midcap Orbit Corp.
We expect Metals to outperform rest of the market in today's trade, thanks to a new 15-month low by the US dollar.Traders could bet on steel counters like Tata Steel, Ispat Ind and penny chasers could look at Lloyd Steel for quick gains. Kingfisher Air might gain early momentum on possible stake sale to PE firms and a possibility of increasing the FDI cap.
KPIT Cummins info is another stock that is looking hot in the current market. The stock gained more than 17 percent to make a new 52 week high of Rs 98.55. We recommend this stock for short term traders with risk appetite with a target of Rs 110.Cement and Telecom stocks are the two sectors that have under performed yesterday. We think cement is one sector that is worth looking at as the counters have not participated in the rally. Telecom stocks are likely to fare relatively better today. Edserv Systems, IVR Prime, Prajay Eng, Maytas Infra and GIC Housing are some of the stocks to watch out in today's trade
Monday, November 9, 2009
Nifty Open flat
Stocks on Dalal Street are likely to kick off the week with a green tick after closing in green for the past 3 consecutive sessions. Expect the benchmark index or the Sensex to gain nearly 0.5 percent or 75 points. We do not expect a broad based rally, but we could see some stock specific activity
PSU's dominated the trade on Friday on the back of divestment news from the government. The sectoral index gained nearly 3.9 percent for the day and is likely to extend its gains to Monday. Realty and Metal stocks were firm. We have seen a flurry of activity in midcap Realty space and we advice long term investors to avoid this space as you might get a better entry point. Metal stocks are likely to hold their gains as the dollar continued its fall on hopes that the Fed would keep the rates unchanged for a prolonged period of time.
Sun Pharma Advanced Research was among the top gainers with a 16 percent gain thanks to some speculative buying and operator activity. The scrip closed at RS 88. We recommend investors to book profits at Rs 92 level, as this is a strong resistance for the stock. Reliance Ind Infra, TV Today Network, GHCL and Lanco Industries were among other gainers. RCF continues to gain for the second day in a row after a decent show on Thursday.It looks like investors have liked the idea of the company getting in to cement distribution business. STC and Dredging Corp were two other PSU's that spiked on hopes that they will be companies that will be divested in the first round of the process. It is prudent to trim your holdings in these stocks on another up move, as the divestment process might take couple of years from now.
Overall, a flat to positive day for the markets is in the offing. IVR Prime, Dhampur Sugars, Lanco Infra are some of the stocks that traders should watch out for in intra day trade.
Friday, November 6, 2009
Decisive time for Nifty. Chances are fifty-fifty
Nifty starts trade on friday morning to a global bullish momentum lead by US stock markets on positive data. Dow Jones clocked a 200 point gain, its biggest one day gain since July.
Indian markets yesterday took a U-turn much to the dismay of the bears after government ordered all listed, profitable central public sector enterprises (CPSEs) to meet the mandatory listing norm of at least 10 per cent public ownership.
Prominent among PSU gainers include RCF, IFCI (rumours of stake sale). The momentum is likely to continue in the PSU space for some time while market is gearing towards another round of beating if technical analysts were to be believe. Traders are setting their eye on 4850 for Nifty, the most respected level in the 4000-5000 range.
FII's seem to be in the withdrawl mode from the last couple of weeks. We might expect a deeper correction this month coupled with a holiday filled december. We believe in the domestic story especially consumption driven sectors are likely to hog limelight in the years to come
Thursday, November 5, 2009
Time to take money Home
Bulls roared on Dalal Street on Wednesday, as positive global cues coupled bu short covering helped the Sensex regain the lost ground. Expect the benchmark index or the Sensex to consolidate after a big day of gains. We see the Sensex giving back close to a 0.8 to one percent or 200 points for the day.
Realty and Metal stocks which led the crash on Tuesday were major gainers on Wednesday's rebound. Jaiprakash Ind, DLF Lts, Hindalco, Unitech and Sterlite Ind were among the gainers in BSE-30 stocks. We advice investors to trim their holdings. especially in the Realty space as we believe that there is some more room to the down side for these stocks to look attractive.
One can expect some selling to come in, in the mid-cap space after a strong rebound yesterday. Excel Infoways, Educomp Solutions, Tips Ind, HDIL and India Cements topped the gainers charts. The direction of the market is really tough to predict from current levels. But it is safe to assume that bears have a strong hold on the market, and the bounce back we have seen may be a one time event.
It is going to be tough for the bulls to push the index up from here. We advise investors to trim their holdings and traders to play in small lots to avoid bigger losses.Overall, today might pan out to be another day in red. We recommend booking profits in Realty and speculative midcaps on any kind of up move
Wednesday, November 4, 2009
Book nifty btst in good profits
Good news After 15 Nov ....BULL WELCOME
Stocks on Dalal Street look to recover after a crash on Tuesday.We expect the market to open in green atleast in the open on bargain hunting and a close in green is in question looking at the past few sessions
Jet Airways and RNRL were two stocks that looked strong even in a falling market. Rumors that the court decision will be in favor of ADAG has propelled the stock to Rs 72 intraday. The stock gave up most of its gains to close the day at RS 66.50.Indiabulls securities and Indiabulls financials, Godawari Power and Rolta were among the stocks that were under tremendous selling pressure and suffered double digit percentage losses.
It is really tough to be a bull in the current market as 9 out of 10 people on the street are bearish on the market. We strongly believe that the long term bull market is in tact and what we are witnessing is a consolidation phase, where we might see another 5 to 6 percent of correction, before an up move. So watch out for the 4300-4350 level to start accumulating stocks
Tuesday, November 3, 2009
Markets look to break the losing streak
Auto stocks should be the leaders for the day after Auto major Maruti and Tata Motors reported better than expected sales numbers for the month of October. Expect decent gains in these stocks. Telecom sectors might witness a small bounce after Singapore Telecommunications has reported it intentions to buy additional 1.52 per cent stake in Bharti Airtel and will pay up to Rs 3008.4 crore for the stake.
First source IPO, Bartronics and Alkali Metals are some of the stocks that were really active in Friday's trade. We like the action in First Source as the stock gained more than 10 percent on huge volumes. One could look to build positions at Rs 33- Rs 34 level from a short term perspective. Dhampur Sugars is another stock that is looking interesting at Rs112 for a quick trade.
Overall a dull day for the markets. But do not expect a run away rally from these levels. There are is some selling pressure at higher levels. Most of the activity is likely to be stock specific from here on