Bearish clouds cover Dalal Street

US Markets resumed the slide yesterday after one day of pull back rally on Friday despite economic data falling in line with expectations. Indian market strength is weak, presumed from the last 2 sessions.

Reliance grabs EIH stake

Reliance Industries Ltd. paid Rs 1,021 crore, which is a 22 per cent premium on the company’s current market price of Rs 151 a share, valuing EIH at Rs 7,200 crore. RIL bought 14.2% stake from EIH Ltd. promoter P R S Oberoi and two other promoter entities, Oberoi Hotels Pvt Ltd and Aravali Polymers LLP. Reliance will not participate in the management activities and is treating this investment as a diversifying act.

Hotel & Entertainment stocks are likely to witness strong action in today's trade following this news.

Q1 GDP

The official GDP, a measure of a country's overall official economic output, figures for first fiscal quarter ended June will be released on today. While economists expect 8.6% to 9.2 % growth rate for the Q1 ending June, we at DStreet believe consolidation in economic growth will be witnessed in the coming quarters.

Market momentum will be impacted by Q1 GDP numbers.

Lackluster trading

Markets lack conviction and rightly so the retail investor participation is at a low. We believe this time the retail investor is correct in his own terms and any decent correction will see him taking a plunge into the market.

Lot of cash on sidelines will provide a cushion to the slide in the market. We are in for a long term bull market but yes not with out a meaningful correction

Asia Bulls on a honeymoon,Indian stocks to gap up

Japanese benchmark index Nikkei spiked up considerably today on the back of short covering and BOJ meet. Japanese currency Yen is on a song in the last few weeks, hitting the country's exporters hard. BOJ(Bank of Japan) is most likely to take measures to curb the currency's dream run.

Dalal Street to gap up

D-Street is set to open higher today on the back of positive global cues. US Markets closed with a good gain on Friday and today Asian opens strong enough for Dalal Street bulls to prepare for a decent open.

Here is the catch while many of the global markets are in the midst of a correction, India just started the same. While for today's trade we are cautiously optimistic and bearish for the coming weeks. September might turn out deadly for Indian markets for various reasons.

Analysts expect India's GDP to top out for Apr-June quarter, we at DStreet agree on the same. Indian economy will go soft for next couple of quarters. But softening economy is definitely a good sign after a year and half period's dramatic rise. The softening economy will not deter foreign investments and in fact we believe every major sector in India will get re-rated in the next one year as we gear up for a multi-year bull run but not with out another correction creating confusion among investors

Stocks that are likely to witness action on Monday morning

DNA reports that DB Realty Ltd. is in talks with private equity firms for selling 20% stake in its Bandra Government Colony project

Sesa Goa Ltd. is planning to diversify into steelmaking with an investment of Rs 6,000-9,000 crore, in Orissa and Jharkand - BS

Public sector mining firms NMDC Ltd and Coal India are forming a joint venture with West Bengal Mineral Development and Trading Company to acquire one of the largest coal blocks in the country having reserves of around 19 billion tonnes - ET

Tech Mahindra Ltd. CEO Sanjay Kalra has resigned from the firm after spending around six years in its management.

Jay Shree Tea & Inds. Ltd. (JTIL), a BK Birla Group company, is eyeing tea estates in Rwanda.

PSU Oil India Ltd (OIL) is likely to form a joint venture (JV) with a US-based shale gas company to acquire shale gas assets globally, a top official said


Many stock specific stories are planted in the media and investors are advised to check the depth of fundamentals before taking a stab. We expect markets to gap up and lose some of its gains but close in the green today.

Read : 5 Notable stocks that resisted Friday's carnage

Glenmark Pharmaceuticals Ltd.
Kamat Hotels (India) Ltd.
DB Realty Ltd.
Spice Mobility Ltd.
Aarti Industries Ltd.

Stocks on Wall Street tumble again, Dow loses 658 points in 11 sessions

Dalal Street open might open marginally in the red on negative cues from the overseas markets.

Global Market - Snapshot

US stocks tumbled Thursday, with the Dow index closing below the sensitive 10,000 level for the first time in nearly two months, as traders braced for a sharp revision of US economic growth. Medium term outlook remains bearish according to our US based analyst Satish Bhogadi.

Nikkei, the Japanese benchmark index is trading down 1 pct today at 8823 levels, while Australian Index shaved off 0.29 pct.

New F&O series - New hopes

September's series will kick in with out much fan fare. We do expect fireworks to the downside in the markets next month. For now we believe Indian markets are decently valued and only fresh inflows can change the valuations. Indian markets trade near to 18X forward earnings and we will see a multiple of 23-25 in the coming years. Domestic consumption matra is getting stronger and longer and that should be considered as of the major de-coupling theory for Indian market from rest of the globe.

For today expect few midcaps and smallcaps to make some noise while largecaps extend their vacation

Nifty eyes 5500 levels, global metal stocks weak

Indian markets will go through a volatile session today as F&O expiry is likely to weigh on traders.

Global Markets

US Market fared better on wednesday despite of weak durable goods orders. Asian markets started flat today with Japenese market slipping into red after Yen made another move towards the highs. Austrailia stocks are trading flat with mining stocks trading weak.

Indian Markets - Expiry hangover

F&O expiry is always tricky and with Nifty hovering between 5400 and 5500 levels it is a tough day ahead. Ideally Nifty is expected to close near to the strike price on the last day causing max pain to traders. Metals, realty and auto pushed the markets lower yesterday. We expect realty sector to show some resilience today after back to back loses.

Speculative stocks - Hop on

Investors should be careful with stocks like Prakash Steelage, Usha Martin Education. While many of us have seen the new listing movies lot of times, it is ideal to sit back and watch the show instead of participating.

DStreet market analyst Venkata Srikanth says "We still believe markets have some more steam left before the carnage. We expect underperforming sectors like Hotels, Power to participate in the midcap rally. From an investor perspective we are advicing our clients to wait till September for a better entry point

US Markets slide, D-Street gear up for selling tide

US Markets extended their nightmarish run after pending Home sales dropped a record 27.2% in July.

Global news

Japanese currency Yen hit a 15-month high against the Greenback (USD) on investors shunning equities and commodities. Japanese central bank might intervene soon. In another interesting development which might ignite memories of recent Euro crisis, S&P downgraded Ireland's rating to 'AA-'. Global economy along with the equity markets face tough times ahead

How long will India be resilient ?

Indian economy fortunately was driven by local factors along with FII inflows. While India has been the hottest destination for FIIs in the last 18 months, domestic consumption story might keep Indian market alive. But there are many ifs and buts attached to the market upmove. If global markets continue to slide and India stays on the sidelines there is a fear that citing cheaper valuations else where FIIs might exit Indian markets in favour of better returns.

With F&O expiry slated for tomorrow we do not expect a massive downside to the market. Having said that we are confident of a quick but major correction unwinding sometime next month.

Dalal Street to open flat

Mixed global cues greet Dalal Street when it opens for trade on Monday. Asian markets are largely in the red except one or two markets. Australia after opening in the red moved swiftly into green after the country's general election is headed towards a hung. Expectations are building up on new government to abolish the mining tax. US markets recovered from the lows of the day but still ended in red on Friday.

Global M&A deals are on the rise. Reports suggest world's No. 2 beer maker SABMiller PLC is interested in Foster's Group Ltd., the largest brewer in Australia with the approximate deal value pegged at USD 10.9 billion

What is the next theme ?

DStreet Analysts still feel there is some more steam in the sector rotation theme and there are two possible themes after sector rotation, while one is the group theme and then the small cap theme. We have seen the group theme kicked out on Friday with Jindal group stocks jumping from no where. Other major groups include Birla, Tata, Ambani and few more. And finally the small cap theme which might mark the end of the current bull run at least for the short term.

Under performing Sectors

Sectors that are under performing the market include Shipping, Power, Infrastructure, Hotels, Metals etc. We acknowledge that the pep-talk among the FII community is turning bearish on India or Overbought. Investors are advised to stay cautious but medium term outlook remains bullish

Stocks Set For Shaky Start

US Markets tumbled thanks to dismal regional manufacturing data and after US jobless claims jumped to a nine month high. Indian markets might receive a jolt in the form of overseas cues when they open for trading on Friday morning.

Overseas markets

Taking a cue from US markets, Asia tumbled in the early morning trades. Japan's Nikkei fell 1.4% to 9,232.6 while Australian market was down by 1.14 pct at 4,428.10DStreet US based analyst Satish Bhogadi commenting on yesterday's trade in the US markets said "US economy is deteriorating gradually. We stick to our ealier S&P SELL target of 950. We see more pain in the second quarter as US Manufacturing slowdown will continue."

In another intersting M&A (Merger & Acquisition) deal world's largest computer chip maker Intel paid $48 per share to acquire antivirus company McAfee.The deal is valued at $7.68 billion.

Inflation worries ease

Food inflation eased to to 10.35 pct from 11.4 pct much to the relief of regulators. RBI went on a rate hiking spree to curb inflation. The reserve bank also hinted of another hike in September. Inflation is expected to further ease in the coming days.

“We may raise inflation forecast for India in our next Economic Outlook slated for September 28. It may depend on how Monsoon plays out,” said cheif economist of Asian Development Bank (ADB) Jong-Wha Lee.

Markets gung-ho

Indian markets are gung-ho on upbeat economic outlook. But troubles in the form of global economic situation, another round of rate hike from RBI await. We will see a gap down open today on the back of global cues but the intrinsic strength in the market is still bullish and it is highly unlikely we might end deep in the red.

Sector rotation continues it was Cement, Airlines and midcap pharma that shined on the street. Watch out for untouched sectors like Power, Infra, Paper, Metals, Telecom, Engineering and Sugar.

Large cap stocks might carry the baton

US Markets ended flat while Asian markets had a minor but steadily positive opening session thursday morning.

Among the global economic news China's crude steel production has begun a rebound after a three-month decline. This is positive for global steel makers too as china consumption too is increasing.

Blackstone group has agreed to invest $300 million, or RS13.50 billion, in unlisted energy firm Moser Baer Projects Pvt Ltd, the two companies said on Wednesday. The group will pick up a "significant minority stake" in Moser Baer Projects, Blackstone India chief Akhil Gupta told a news conference.

Blackstone started betting big on power sector. Last month the fund picked up 12.5 pct state in Monnet Ispat.

DStreet's market analyst Sridhar Iyer says "We are bullish on the power sector from a 1-2 year perspective. Alternative space looks attractive
while implementation concerns remain. Investors with a longer term horizon can invest in this space."

Large cap stocks will be the cynosure of all eyes as they have to play the pivotal role for markets to crack the much talked trading bands. Though it is extremely tough to clock new highs, the market looks excited.

Few sectors that have not participated in the current rallies include Power, Hotels, Paper etc. Keep an on these stocks

Asia off to a flyer, D-Street to open higher

Dalal Street will wake up to a pleasant wednesday morning breeze full of positive global cues.

BHP-Potash bid : What is the take away ?

BHP Billiton, a global mining major has surprised everyone bidding for Potash Corp. of Saskatchewan, world's biggest potash producer. Potash rebuffed the deal later. The key take away from this is the interest global majors are showing on Food industry. Recently Russia banned wheat exports citing drought as a reason. Indian agri commodity stocks are already on the run and analysts at DStreet are extremely positive on this space.

Nagarjuna Fertilizers & Chemicals Ltd., United Phosphorus Ltd. and Chambal Fertilisers & Chemicals Ltd. should see some interest on the back of this news.

Strong opening, how about the close ?

Markets will open strongly but latching on the gains is a tough thing. Given the market movement in the last 15 days Indian markets are clearly holding to a tight band. So as an investor let us not get too excited with the global positives.

Rumours that Cairn India Ltd. might see a counter bid from Oil & Natural Gas Corpn. Ltd. (ONGC) might keep the stock buzzing but we do not expect fireworks here. Sector rotation and catching up theory is in the works on dalal street. Stocks like New Delhi Television Ltd. (NDTV), India Infoline Ltd. were no where in the picture till yesterday.

DStreet market analyst Sridhar Iyer says "We expect the midcaps to extend their run for the next 1-2 months with minor setbacks. October is the month to watch out for the Index stocks. We still find few bargains in the market in the midcap space.

Investors seek calm after yesterday's mini storm

Traders and investors are expecting a relatively quite start today after a stunning Bear raid on Dalal Street in the mid-market session on Monday.

US Economy in dolddrums

US markets closed flat yesterday after gap down open. While economic data released yesterday was mixed with manufacturing activity showing progress and home builder index raising doubts of a double dip.

DStreet's Boston based market analyst Satish Bhogadi says "US economic data in the past three months have clearly shows signs of fatigue and negative growth. We see both US economy and markets sliding for the next three to six months. We have a SELL on S&P with a target of 995"

Banks raising rates

While SBI raised both lending and deposit rates, ICICI bank raised prime lending rates by 50 basis points. Many banks are expected to follow with PLR hikes soon.

Music from midcaps

While we are yet to see the gush of retail money in the market, buying interest is slowly getting generated thanks to the melodious music from midcaps. Traditionally markets have seen heavy inflows in september and october.

Sector rotation, value unlocking, excellent quarterly numbers, land bank buzz are few of the reasons cited for the upmoves in the midcap space.

F&O traders

Traders who are either long or short Index futures might encounter a set back this month as Nifty is trading in extremely tight band. Traders make money when the markets are volatile

Another range bound trade on cards

Japanese GDP growth trigerred an early fall in Asian equities and India will be no exception when they open for trade Monday morning.

SKS Microfinance lists today

India's leading Microfinance company SKS Microfinance lists on bourses today. DStreet analysts predict that the SKS Microfinance’s shares will list above Rs 1100The company's IPO was a huge success as it was oversubscribed 13.69 times, as per data available with the National Stock Exchange. The issue has envinced interest in high profile investors like George Soros, venture capitalist Vinod Khosla and Infosys Technologies founder N R Narayana Murthy. Many FII's were reported to be queing to grab the stock from the open market as most of them returned empty handed due to higher subscription during the IPO

Macro concerns remain

While Indian economy continues to attract global investment community, we do have troubles in the form of global economic situation, currency fluctuations and another round rate hike in September.

While Nifty crossing 5500 levels is a real tough question to answer with majority taking the side of a trading band, midcap stocks will extend the bull run further. Realty is the latest sector that joined the bandwagon. Watch out for Mumbai based realty developers in today's trade along with Microfinance major SKS Micro

Range bound market

Options data depicts maximum Call OI at 5600 strike (10.08 million shares) while
on the Put side maximum OI stands at 5300 strike (11.9 million shares). On the
Call side, the Nifty 5600 and 5300 Call added about 1,300 lots. On the Put side,
the Nifty 5200 and 5300 Put added about 11,500 lots. Unwinding was seen to the
extent of about 5000 lots in Nifty 5400 and 5500 Call

Considering decent PCR-OI base at the 5400 strike and substantial buying by FIIs
in the cash segment for the last few days expect Nifty to take support on dips

The Nifty is likely to trade in the range of 5380-5450. The trading strategy would
be to create short positions if the Nifty resists at around 5432 levels for targets of 5415 and 5402. On the other hand, one can also create long positions if the Nifty
takes support at around 5400 levels

Nifty takes a shot at 5500

Indian equity markets when they open on Tuesday are likely to take a shot at another landmark i.e Nifty trying to hit the 5500 levels. With low participation from the retail investors markets are denying an oppurtunity for an entry at lower levels. While FII inflows are subdued, Domestic Institutions have seen net outflows in the past 2-3 months.

Interest in next generation stocks like Jubilant FoodWorks Ltd. and Talwalkars Better shows the risk apetetite has inadverently increased.

Government yesterday announced exemption of PSUs to achieve at least 25% public holding within three years.

While booming Indian economy is primarily driven by domestic consumption growth, global revival too added fuel to the fire. US economic growth started decelerating and W-Street is expecting another stimulus. Indian growth might slow down once central bankers across the world start raising rates. RBI has hinted one more rate hike in September.

The trading day is most likely to start flat with Nifty ready to take a stab at 5500 levels

All roads lead to ....

US Markets survived a strong attach from bears on weaker jobless claims data. While all indicators are pointing to a US flop show again in the next 6 months, it is very important for investors to sit tight with their holdings along with raising cash levels.

With fresh memories of 2008 still in investor's mind, there is an extreme fear among retail investor community to enter Indian capital markets. Midcaps will continue to shine while large caps will languish

Another dull day on cards

Another dull day with more emphasis on midcaps is on cards today too. One should keep in mind we are going through a consolidation phase. Stocks like Talwalkars are looking great these levels, given the momentum.

Our Prime Focus continued to move up and there are many more stocks lined up in the new portal coming soon...We expect to launch the same next week

Buying in Lower Level target above 5500

The Nifty is likely to trade in the range of 5430-5480. The trading strategy would
be to create short positions if the Nifty resists at around 5475 levels for targets of 5458 and 5440. On the other hand, one can also create long positions if the Nifty
takes support at around 5435 levels

Time For ??

The Nifty is likely to trade in the range of 5440-5500. The trading strategy would
be to create short positions if the Nifty resists at around 5495 levels for targets of 5470 and 5450. On the other hand, one can also create long positions if the Nifty
takes support at around 5440 levels

Bulls grabbed the final hour of the trade with both hands and Nifty is ready to take a shot at 5500 levels today. But underlying volume strength is missing in the current market. Midcaps are flying high and our top pick Prime Focus nearly doubled. We have further higher targets for the same....And we continue to mention about a 3 year multibagger (a 5X bagger) currently trading below Rs 20 levels. Having said that the stock might not move up in the short term. It is time to accumulate

Markets likely to take a pause

Markets are likely to take a pause before the upmove. For now trade smart instead of jumping ahead

Trade in levels given for August

Sensex - The action formed into a small bear candle, indicating respect to the 80%
retracement level to the previous fall, exactly as we suspected. Since it is a smallbodied candle, it indicates indecisive action rather than breakdown. Bias can
remain positive if it protects low of 18071. However, we remain careful near 80%
levels.

The Nifty is likely to trade in the range of 5400-5450. The trading strategy would
be to create short positions if the Nifty resists at around 5448 levels for targets of 5435 and 5415. On the other hand, one can also create long positions if the Nifty
takes support at around 5410 levels

Markets flying high

Markets continue to stretch on positive numbers. European quarterly numbers propelled the market yesterday. But chinese productivity contracted and this was taken as a positive by the market as china's central bank might not be ready for a rate hike. While the market's rationale till that point is correct slower economc growth will soon reflect in lower corporate profits and the same will be reflected in quarterly results.

Book part profits in the current upmove and enter at lower levels

Nifty August Trading Range Seen 5200-5550 Try to hedge / play in this level,Short at high & Buy at low

Bearish winds blowing slowly

While every one is bullish on the street, slowly we see a bearish wind blowing in global equity markets and India is no exception. If global correction is on cards, we re-iterate India will be a big loser.

On the other hand if world goes flat Indian economy will be flying high. We agree on the decoupling theory but the quarterly numbers are mixed and failed to propel the markets. D-Street again failed to break out from the trading range. Keep caution till then