Thursday, September 30, 2010

F&O Expiry Hangover to end today

&O expiry for the month of September, which was dictating terms from the last 3-4 trading sessions will finally come to an end today. Allahabad High court will announce the Ayodhya verdict at 03:30 PM.

Global markets : US & Asia flat

US markets closed flat while Asia is currently is trading the same. European woes have started increasing but none of the markets reacted voilently. Buzz about European crisis might not tamper market euphoria but a new crisis can.


Mahindra Satyam : On the right track

Mahindra Satyam says it saw revenues at a higher-than-expected Rs 8,800 crore and a net loss of Rs 8,176 crore. The management says the company has not fully recovered yet and a full recovery will take up to two more years.

We believe the stock is only a long term hold and given the merger proposal in the next 6 to 8 months, we expect a raw deal for Mahindra Satyam shareholders in case the merger happens.

FIIs with single client will not be allowed to trade in India from October 01 says regulator SEBI. Lot of IPOs sucked in money from the secondary market and the big one is yet to come. Coal India is coming out with a huge IPO, halfway through this month and is expected to absorb more liquidity.

We expect a flat trading day today with a positive bias. Nifty is expected to close around 6,000 levels

Wednesday, September 29, 2010

All eyes on Mahindra Satyam's audited numbers today

Dalal Street

Mahindra Satyam, the cynosure of traders is all set to disclose revenue and profit figures for 2008-09 and 2009-10 later in the day today. Last week Mahindra Satyam Ltd announced that it would de-list from the New York Stock Exchange as it would not be able to meet the October 15 deadline for preparing financial statements under US accounting standards. A financial newspaper reported that Mahindra Satyam might settle with Raju's family over the latter's claim for Rs 1250 crore investment in Satyam.

Indian markets might take a few more days of breather before the upmove. Atleast from a short term we do not see major issue with the market. Retail participation is reportedly on an uptrend.

Tuesday, September 28, 2010

Markets likely to witness subdued opening

Airline stocks to see interest on Southwest's Airtran acquisition

Indian equity markets are likely to open flat Tuesday morning after weak global markets and inability to sustain at higher levels in Monday's trade.

US Markets closed in the red despite of M&A deals. Low-cost carrier Southwest bought AirTran for $1.4b, a premium of 60 pct. Indian airline stocks are likely to see some interest backed by this news.

Asian markets in red

Nikkei is trading nearly 68 points down while Australia is trading flat. The Bank of Japan will discuss further easing of its monetary policy at its upcoming board meeting, according to a report published Tuesday.

Dalal Street - Flows continue

Foreign institutional investors (FIIs) have pumped nearly $18 billion (Rs 81,880 crore) in Indian stocks so far this year, their highest investment in dollar terms in a calendar year.

In September alone FIIs have net-bought shares worth nearly $5 billion (Rs 22,700 crore). While India continues to be a hot destination for FIIs, we expect minor hiccups in the form of swift corrections to hit the market time and again.

Dalal Street might take on new highs next month. With US economy struggling, Euro crisis end not in sight and market factoring part of these concerns, the situation is favouring the bulls in the medium term. Coal India IPO is a small trigger for bears but given the kind of inflows the issue might not have an impact on D-Street.

F&O expiry (30th September) will see markets trading in a extremely volatile fashion.

Monday, September 27, 2010

Dalal Street to see Dhamaka opening

Bull breeze is blowing in Mumbai on Monday morning with investors excited enough to see D-Street closing in on the new highs. US Markets shot up Friday on better economic indicators.

Asia jumps on US cues

Nikkei is trading up one percent, despite of Japanese trade surplus coming below expectations while Australia jumped 1.25 pct.

Big Bull - Cautious on the market

Speaking to a private business channel Big Bull Rakesh Jhunjhunwala said "Investors need to be cautious as the gain in equities has been “very rapid in the last 15 to 20 days,". He also acknowledged that "the Indian economy and the Indian growth story is on a continuous uphill climb.” in the longer term.

High put-call ratio

NSE's Open Interest Volume Put Call Ratio climbed to 1.93 on Sept. 22, the highest since March 26, 2009. This shows traders are trying to hedge their positions by buying put options. While F&O expiry slated for coming Thursday will be a road block for the Indices to crack new highs soon. Volatility will only increase in the next few trading sessions.

Sector is a must and sitting in Banking and Auto will ensure investors miss the next bus. Realty as expected will be one of the sectors driving the market and Reliance is another big one which has the potential to keep the momentum running.

Given the kind of inflows India Inc is witnessing it is really tough to think of correction at this point of time. But when it comes it will be wild enough to drive investors crazy

Friday, September 24, 2010

Dalal Street likely to open in the red, only to bounce back

Dalal Street : Watch for a bounce

Stocks on dalal street will open negatively to the global cues but might see a sharp bounce today. Bank stocks are likely to be under pressure today also. We advise subscribers to slowly get out of bank and auto sectors for the next six months except one or two stocks which still look under valued. We had a coverage today on a smallcap steel stock that is ready to deliver approx 70 pct gains in the next six to eight months.

Focus on Infrastructure stocks, second rung IT & metal stocks and Realty might see a surprise upmove in the coming days

Thursday, September 23, 2010

Another volatile day on cards, Asia trending lower

Indian markets will open to mildly negative cues from the global markets with US deflation worries causing nervourness among investeor community. Wall Street ended marginally in the red with Dow losing 22 points and Nasdaq down by 15 points.

Nikkei is trading down by 0.3 pct while Australia is down by 0.2 pct. Australian dollar hits new 26-month high against the US dollar on thursday while New Zealand second-quarter GDP went up by 0.2 pct, below economists expectation.

Dalal Street : Waiting for more inflows or cues ?

After a mamouth rally Dalal Street is waiting for the next step. While F&O expiry slated for next week might add more volatility to the indices, Markets still look good for another upswing with Nifty support level pegged at 5800.

Infrastructure stocks are showing some life in yesterday's trade. Watch out for offbeat sectors like Ceramics to buzz on the street. While power sector started participating, there are many sectors that missed the rally. While Banking, Auto sectors are likely to be the laggards in the next 6 months to one year time frame, we expect Realty, Infra to pick up pace in the coming months

Wednesday, September 22, 2010

Indian market to extend the rally, caution warranted

Dalal Street is likely to open in the positive zone on Wednesday morning with sectoral rotation pushing the markets up. IT pack lead the index gainers while Ranbaxy Laboratories Ltd. extended the dream run, gaining 14 pct in the last one month.

Tata Power Company Ltd. joined the winners league with an upmove of nearly 3 pct. GVK Power & Infrastructure Ltd. is another interesting stock in this space. Infra stocks are showing signs of life with IVRCL Infrastructures & Projects Ltd. inching up thanks to the new IPO's from the same sector.

Asia trading flat, Bernanke keeps rates steady

The US Federal Reserve for the first time raised direct concern that the nation's economy may be headed into a deflation trap and expressed new readiness to take more action to avert a serious turn for the worse.

Wall Street closed flat pushing the Asian markets to trade in a narrow band.

Avoid midcaps and smallcap stocks

Midcap and Smallcap stocks are going through a silent correction as index stocks extend the rally. We advice investors to avoid the second run stocks and wait for a decent correction before accumulating quality stocks.

BHEL is likely to grab index fund interest as the stock has underperformed in the last one month. Keep an eye