Stocks in Mumbai are likely to pull back on opening bell, as negative global cues and some profit booking might pose a threat to the bulls. Expect the Sensex to test 13,500 level in today's trade. Midcap and smallcap stocks might sizzle again as speculators are active in the market.
We might see an initial sell off in the market on worries about the political front. DMK as decided against participating the government and would like to extend support from outside. We don't see major impact from this, the only reason there might be a fall in the market will be weak global markets and some profit booking.
As expected the Sensex pulled back on Thursday but midcap and smallcap continued to gain in a hopeless market. We see the trend continuing even today, although the number of gainers might be limited due to selective buying and caution from the investors.
Interestingly, major international brokerages have placed a 'overweight' rating on the Indian markets and rightfully so as hot money is still flowing in.Cinemax India, Redington,Shriram EPC and IG Petro and Rural Electrification are some of the stocks to watch out in today's trade.
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Friday, May 22, 2009
Thursday, May 21, 2009
Mid Cap rally to Continue
Stocks in India are getting ready for a lower pen after a day of correction on Wednesday. Expect the Sensex to lose nearly 1.5 percent or 150 to 200 points in today's trade. Midcaps and Smallcap stocks might continue to rise in spite of the dampened sentiment
We have seen a great move up in traditional stocks like Tata Motors, Tata Steel, Ambuja Cements and Hindalco were among the top gainers yesterday and these stocks might correct a bit today. We would like to reiterate our bullishness towards PSU's, especially Shipping Corp and MTNL. MTNL Might see another good day on some positive news regarding merger with BSNL and divestment at a later day.
Oil is one sector we are bullish in today's trade. Watch out for Cairn India, Essar Oil and last but not the least some drillers like Shiv-Vani and Jindal drilling. Crude-oil futures rose Wednesday to their highest level in more than six months, ending above $62 a barrel on higher demand.
Midcap and Smallcap stocks are likely to continue their dream run as investors look for new places to make money. Watch out for stocks that have under performed in the past few days as investors might go shopping in these stocks. CineMax Ltd, Edelweiss Capital, CESC, Transport Corporation and Nissan Copper are the stocks that are worth keeping on the radar for today's trade.
We have seen a great move up in traditional stocks like Tata Motors, Tata Steel, Ambuja Cements and Hindalco were among the top gainers yesterday and these stocks might correct a bit today. We would like to reiterate our bullishness towards PSU's, especially Shipping Corp and MTNL. MTNL Might see another good day on some positive news regarding merger with BSNL and divestment at a later day.
Oil is one sector we are bullish in today's trade. Watch out for Cairn India, Essar Oil and last but not the least some drillers like Shiv-Vani and Jindal drilling. Crude-oil futures rose Wednesday to their highest level in more than six months, ending above $62 a barrel on higher demand.
Midcap and Smallcap stocks are likely to continue their dream run as investors look for new places to make money. Watch out for stocks that have under performed in the past few days as investors might go shopping in these stocks. CineMax Ltd, Edelweiss Capital, CESC, Transport Corporation and Nissan Copper are the stocks that are worth keeping on the radar for today's trade.
Wednesday, May 20, 2009
Sensex to stay flat, Midcaps to run the show
Our STBT nifty and Banknifty will Rock today
The stock market indices on Dalal Street are likely to correct and move sideways, as bulls might take a breather after a huge run up for the past 5 sessions. Expect the Sensex to trade in a narrow band of nearly 100 to 150 points. Midcaps are likely to dominate as investors are likely to bid up shares that have not participated in the rally.
Investors are advised to focus on IT and FMCG sectors, as they have not participated in yesterday's rally. Investors could look at midcap IT stocks like Aptech, NIIT Tech, Rolta and Polaris for some quick gains. Index based heavy weights are expected to underperform in the next few sessions, as investors might focus on midcap stocks for speculative gains.
SREI Infra looked explosive yesterday with a whopping 30 percent gain at Rs 66. We advise investors to buy this stocks if it corrects back to the Rs 55 level, as there is some more room for upside in this scrip.We like Crompton Greaves, Mundra Port, Gammon Infra and shipping stocks like Varun Shipping for today's trade
The stock market indices on Dalal Street are likely to correct and move sideways, as bulls might take a breather after a huge run up for the past 5 sessions. Expect the Sensex to trade in a narrow band of nearly 100 to 150 points. Midcaps are likely to dominate as investors are likely to bid up shares that have not participated in the rally.
Investors are advised to focus on IT and FMCG sectors, as they have not participated in yesterday's rally. Investors could look at midcap IT stocks like Aptech, NIIT Tech, Rolta and Polaris for some quick gains. Index based heavy weights are expected to underperform in the next few sessions, as investors might focus on midcap stocks for speculative gains.
SREI Infra looked explosive yesterday with a whopping 30 percent gain at Rs 66. We advise investors to buy this stocks if it corrects back to the Rs 55 level, as there is some more room for upside in this scrip.We like Crompton Greaves, Mundra Port, Gammon Infra and shipping stocks like Varun Shipping for today's trade
Tuesday, May 19, 2009
India the best performing market
Markets are likely to open up after a Mad Monday on the street. Most of the investors did not get a chance to place their orders as the trading was haulted due to gigantic gains. Expect the Sensex to end the day higher by another 3 to 4 percent crossing the 14,500 mark
Winners were all across the board as investors were trying to grab each and every stock that was available in the market. Realty, Consumer Goods, Banking,Power and PSU stocks gained between 18 to 23 percent.Real Estate stocks made a giant leap on hopes of relief on the liquidity front coupled with potential for new business from government projects.
IndiaBulls Real Estate, GVK Power & Infra, Unitech and Reliance Capital were big gainers in yesterday's market. The run is likely to continue, as the market is hot now and we might find few sellers in the market. It is believed that there are Rs 25,000 Crore worth of short positions and this might provide a much needed fuel to the market.
We expected a 500 point rally and were surprised with a 2000 point run. The momentum is likely to continue and we might see another 5 to 6 percent. It is advisable to sell in to the market at around 14,800 level and stay invested in PSU stocks.So in a nut shell, book profits in the rest of the stocks and hold on to PSU stocks and some blue chips on another rally in the markets
Winners were all across the board as investors were trying to grab each and every stock that was available in the market. Realty, Consumer Goods, Banking,Power and PSU stocks gained between 18 to 23 percent.Real Estate stocks made a giant leap on hopes of relief on the liquidity front coupled with potential for new business from government projects.
IndiaBulls Real Estate, GVK Power & Infra, Unitech and Reliance Capital were big gainers in yesterday's market. The run is likely to continue, as the market is hot now and we might find few sellers in the market. It is believed that there are Rs 25,000 Crore worth of short positions and this might provide a much needed fuel to the market.
We expected a 500 point rally and were surprised with a 2000 point run. The momentum is likely to continue and we might see another 5 to 6 percent. It is advisable to sell in to the market at around 14,800 level and stay invested in PSU stocks.So in a nut shell, book profits in the rest of the stocks and hold on to PSU stocks and some blue chips on another rally in the markets
Monday, May 18, 2009
Nifty Circuit Limits today
Nifty Circuit Limits for today are :
10% 3973.75
15% 4124.80
20% 4275.85
Like circuit limits on individual stocks, there are restrictions on the movement of indices (Sensex and Nifty). There are 3 types of circuit limits 10%,15% and 20% limits. These circuit limits are applicable for the movement of the indices either in positive direction or in negative direction.
Trading in both the exchanges will come to halt if the movement exceeds the limits in any one of the exchanges.
If the 10% movement takes place before 1:00 p.m. then market will be halted for an hour and if it takes place at or after 1:00 p.m. but before 2:30 p.m. then market will be halted for half an hour. If the movement takes place after 2:30 p.m. then there won’t be any trading halt.
On resumption of trading after the halted period is elapsed, if the market hits 10% again there won’t be any halt in the trading. But if the market hits 15%, there shall be a halt of 2 hours if the movement happens before 1 p.m. If the 15% limit is breached at or after 1 p.m. but before 2 p.m. then there would be trading halt of 1 hour. If it happens after 2 p.m. then there won’t be further trading on that day.
On the resumption if the market hits 20% limit at any time during the trading hours, the trading will be suspended on that day.
These limits are put in place to stop excessive speculation and control the liquidity.
A point to be noted here is that the absolute values of these 10%, 15% and 20% limits are not based on the previous day’s close as in case of individual stocks circuit limits. These values are calculated and announced by the bourses (NSE and BSE) at the beginning of each quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of Nifty. This limit is applicable for the entire quarter.
10% 3973.75
15% 4124.80
20% 4275.85
Like circuit limits on individual stocks, there are restrictions on the movement of indices (Sensex and Nifty). There are 3 types of circuit limits 10%,15% and 20% limits. These circuit limits are applicable for the movement of the indices either in positive direction or in negative direction.
Trading in both the exchanges will come to halt if the movement exceeds the limits in any one of the exchanges.
If the 10% movement takes place before 1:00 p.m. then market will be halted for an hour and if it takes place at or after 1:00 p.m. but before 2:30 p.m. then market will be halted for half an hour. If the movement takes place after 2:30 p.m. then there won’t be any trading halt.
On resumption of trading after the halted period is elapsed, if the market hits 10% again there won’t be any halt in the trading. But if the market hits 15%, there shall be a halt of 2 hours if the movement happens before 1 p.m. If the 15% limit is breached at or after 1 p.m. but before 2 p.m. then there would be trading halt of 1 hour. If it happens after 2 p.m. then there won’t be further trading on that day.
On the resumption if the market hits 20% limit at any time during the trading hours, the trading will be suspended on that day.
These limits are put in place to stop excessive speculation and control the liquidity.
A point to be noted here is that the absolute values of these 10%, 15% and 20% limits are not based on the previous day’s close as in case of individual stocks circuit limits. These values are calculated and announced by the bourses (NSE and BSE) at the beginning of each quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of Nifty. This limit is applicable for the entire quarter.
Sensex to fly high
Stocks in India are expected to fly high on opening bell as money on the sidelines is likely to flow in to the market on hopes that the Singh led UPA government is likely to bolster the slowing economy with financial reforms. Expect the Sensex to gain more than 400 points or 4 percent for the day.
We might see heavy buying in the PSU stocks on speculation that the newly formed Singh government is likely to implement the disinvestment program in the next few months. There might be 40 to 50 percent move in these stocks and we have given our picks in these sectors to our subscribers.
Telecom and Insurance sectors are going to be the major beneficiaries if the government move ahead with measures to increase FDI Cap from 26 to 49 percent. Banking and Infra structure stocks are likely to be among the gainers in today's trade.Analysts in the market expect the Sensex to touch 14,000 level, barring any major global melt down.
We advise investors not to buy in the first hour of the market as we are likely to see a huge gap up pending of more than 700 points. One could look at buying stocks in the afternoon session, as things are likely to cool off after initial euphoria. It is a good idea trim your holdings in speculative counters and build positions in PSU and related entities going forward.Overall a great day for the stocks, but we expect some cool off after an explosive opening in the morning
We might see heavy buying in the PSU stocks on speculation that the newly formed Singh government is likely to implement the disinvestment program in the next few months. There might be 40 to 50 percent move in these stocks and we have given our picks in these sectors to our subscribers.
Telecom and Insurance sectors are going to be the major beneficiaries if the government move ahead with measures to increase FDI Cap from 26 to 49 percent. Banking and Infra structure stocks are likely to be among the gainers in today's trade.Analysts in the market expect the Sensex to touch 14,000 level, barring any major global melt down.
We advise investors not to buy in the first hour of the market as we are likely to see a huge gap up pending of more than 700 points. One could look at buying stocks in the afternoon session, as things are likely to cool off after initial euphoria. It is a good idea trim your holdings in speculative counters and build positions in PSU and related entities going forward.Overall a great day for the stocks, but we expect some cool off after an explosive opening in the morning
Saturday, May 16, 2009
Jhunjhunwala, others see Magnificent Monday post UPA win
The nation has given its verdict: the Congress-led United Progressive Alliance (UPA) comes back to power without the baggage of the Left — just what the doctor ordered for the markets.
In an exclusive discussion on CNBC-TV18, leading investor and trader Rakesh Jhunjhunwala of Rare Enterprises said that the election results signalled the coming to end of divisive politics. “The victory is very important for what will happen ahead given the economic circumstances prevailing in the world,” he said, adding that he sees the country going back to 8–10% growth on the back of a stable government. “I expect a lot of capital inflow into to India,” the ace investor said, adding that the government was likely to be aggressive with reforms. “The market would prefer to see a pro-reforms finance minister.”
Samir Arora of Helios Cap said that he saw a big rally ahead in the markets. “On Monday, we could open one circuit — a thousand points on the Sensex — up,” he predicted. Arora added that Monday’s possible rally would be followed up with a long durable rally. For the post of finance minister, Arora said Montek Singh Ahluwalia, the current Deputy Chairman of the Planning Commission, would be an ideal candidate.
Manish Chokhani of Enam Securities said that the verdict had come at a good time with the continuation of the rally that had already happened recently. “It may now happen that people were earlier working with the 8,000-12,000 band. Then it came up to 10,000-14,000. Now the band could range between 12,000 and 16,000,” he said. Chokhani added that he expected insurance reforms ahead and that there may be huge inflows in the banking space. “If liquidity returns, engineering, capital goods and realty stocks will benefit significantly,” he said.
In an exclusive discussion on CNBC-TV18, leading investor and trader Rakesh Jhunjhunwala of Rare Enterprises said that the election results signalled the coming to end of divisive politics. “The victory is very important for what will happen ahead given the economic circumstances prevailing in the world,” he said, adding that he sees the country going back to 8–10% growth on the back of a stable government. “I expect a lot of capital inflow into to India,” the ace investor said, adding that the government was likely to be aggressive with reforms. “The market would prefer to see a pro-reforms finance minister.”
Samir Arora of Helios Cap said that he saw a big rally ahead in the markets. “On Monday, we could open one circuit — a thousand points on the Sensex — up,” he predicted. Arora added that Monday’s possible rally would be followed up with a long durable rally. For the post of finance minister, Arora said Montek Singh Ahluwalia, the current Deputy Chairman of the Planning Commission, would be an ideal candidate.
Manish Chokhani of Enam Securities said that the verdict had come at a good time with the continuation of the rally that had already happened recently. “It may now happen that people were earlier working with the 8,000-12,000 band. Then it came up to 10,000-14,000. Now the band could range between 12,000 and 16,000,” he said. Chokhani added that he expected insurance reforms ahead and that there may be huge inflows in the banking space. “If liquidity returns, engineering, capital goods and realty stocks will benefit significantly,” he said.
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