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Saturday, June 7, 2008
Friday, June 6, 2008
Will Pullback rally sustain till 4800 levels
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Thursday, June 5, 2008
Expect Dead Cat Bounce
FRIENDS, CONTINUOUS SELLING BY FIIS FOLLOWED BY NERVOUS RETAIL INVESTORS MAKE NIFTY BREACH THE CRITICAL 4633 LEVELS AND CLOSED BELOW IT. AT PRESENT INDICES LOOK HIGHLY OVER SOLD, AND ANY TIME A GOOD BOUNCE CAN BE EXPECTED, BUT ANY BOUNCE MAY MEET WITH HEAVY SHORT SELL & FRESH SELLING PRESSURE BY FIIS WHO ARE CONTINUOUS SELLING IN OPEN MARKET. -VE DOW FUTURES DURING THE AFTERNOON SESSION AND HIGHLY -VE EUROPEAN BOURSES ADDED FUEL IN LAST 1 HOUR MARKET FALL; ANY SMALL BOUNCE IS A POINT OF HEAVY FRESH SELLING (BASKET SELLING). NOT GO LONG BELOW NIFTY 4840 !! CHANCES – 1. 60% CHANCES R THAT WE TEST NIFTY 4448 (DT. 22/01/08) 2. 20% CHANCES R THAT WE SEE BOTTOM AT NIFTY 4200 3. 20% CHANCES R THAT WE NOT BREACH NIFTY 4503, AS LOW OF 18/03/08
A minor pull-back is not ruled out. But, any rally should be looked at a chance to lighten positions.
FIIs were net sellers to the tune of Rs11.99bn (provisional) in the cash segment yesterday while the local institutions poured in Rs4.2bn. In the F&O segment, foreign funds were net buyers at Rs3.35bn. On Tuesday, FIIs were net sellers of Rs9.52bn in the cash segment. Mutual Funds were net buyers of Rs1.24bn.
Fortis Healthcare and HOV Services will announce their results today.
After correcting sharply in yesterday's trades, the market is likely to witness sideways movement. However, on the other hand, the undertone still looks bearish on the back of strong selling by the FIIs. For the Nifty, the key resistance level is at 4635 and has a likely support at 4540 on the downside. The Sensex has a likely support at 15300 and resistance at 15700.
As usual, the Left parties, and the BJP slammed the Government's decision. Even the RJD, very much part of the Congress coalition, has called for a rollback. If the political temperature continues to mount, there could be a small reversal in the fuel price hike.
Coming to the markets, the much-awaited announcements didn't cut much ice with the investors. Even the shares of OMCs gave up most of their gains by the end of the day. Though the price hike and other measures will provide some relief to OMCs, they will still be in considerable pain. What's more, the fiscal situation is also likely to worsen. Inflation is soon expected to hit double-digits. Companies in sectors like Auto, Aviation, Cement and Steel will be hit the most. Banks will also be affected as higher inflation will lead to more monetary tightening.
To add to the macro-economic woes, we have the fresh concerns over the global front. There are talks that Lehman Brothers could report losses and will have to raise fresh capital to stay afloat. Two of the biggest US bond insurers may have their ratings cut by Moody's. Though oil prices have cooled off substantially from US$135 per barrel, they are still quite high. The US economy may have avoided a recession (only technically though), but it's not going to gallop either. Also, Federal Reserve chief Ben Bernanke has hinted that the central bank may not increase rates any further.
Given the slew of negative factors, we expect the market to remain under pressure in the near-term. There are more chances of it falling than rallying from here. Technical and F&O indicators too are negative. FII selling has accelerated in the past few days. So, the bulls appear to be cornered from all fronts.
Corporate News
Private equity firms Blackstone, Apax Partners and Carlyle are raising US$5bn for Reliance Communication Ltd’s deal with MTN. (FE)
Reliance Communications hires Deutsche Bank to fund MTN takeover. (BS)
Tech Mahindra bagged US$2.5mn deal to provide end to end systems integration services to the Botswana Tele-Communications. (BL)
Bharti Airtel to opt for the mobile virtual network operator (MVNO) model to increase its footprint overseas than acquisitions abroad. (FE)
SAP plans to invest around US$4-5mn which could go up to US$8-10mn in start-up companies in India through its investment arm, SAP Ventures. (ET)
National Aluminium Company (NALCO) to invest Rs400bn in Greenfield and brownfield projects. (BS)
RBI bars Sahara India Financial Corporation from accepting public deposits due to violation of regulations. (BS)
IVRCL Infrastructure bags RS8.36bn project from ONGC Petro Addittions. (BS)
Phoenix Mills to raise US$450mn from private equity investors to fund its mall and hospitality business. (BS)
Reliance Retail in talks with Liz Claiborne for a JV to open its stores in India. (
Novartis has bought US-based Protez Pharmaceuticals in a deal worth up to US$400mn, giving it rights to an antibiotic which could be used to fight superbugs such as methicillin-resistant Staphylococcus aureus (MRSA). (ET)
Biocon launches pre filled syringes for two drugs for kidney and for cancer patients. (BS)
Essar plans to partner or buy controlling stake in Kalindee Rail Nirman to benefit from the high spending by the railways. (Mint)
Tata Sky not granted relief by Delhi High Court on petition filed for ‘misleading’ advertisement by Dish TV. (BS)
FITCH Ratings placed Reliance Infrastructure on negative rating watch, indicating that the ratings may be downgraded or remain at the current level. (ET)
Air India to induct seven Boeing 737-800’s to its fleet of 18, making its total fleet to 25. (BS)
Orissa based Ruserger Mines and Minerals has applied for license for three mines in Sindhudurg in Maharashtra. (BS)
TVS Motor has entered into a contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt Ltd. (BL)
TATA BP Solar plans to launch its solar-powered hoardings product called I-Sign by September. (ET)
Raymond launched its new readymade garments range, Raymond Finely Crafted Garments and is close to forming a joint venture with an overseas company. (ET)
Himalaya Drug Company is going to launch a new strategic business unit (SBU) for expanding into smaller towns and hinterland districts. (ET)
Economic News
The Centre to sanction Rs45bn for Mumbai Metro Rail project.
National Bank for Agriculture and Rural Development (NABARD) to open a special liquidity assistance window for cooperative credit institutions to assist during tight resource conditions. (BS)
State governments have decided to reduce the sales tax on petrol and diesel, to reduce the impact of increase in prices. (BL)
The Board of Approval (BoA) for Special Economic Zone (SEZ) cleared 21 SEZs proposal, but there was no decision on Goa SEZ. (FE)
Infrastructure development in and around Mumbai could come to a halt as a result of the proposed coastal management zone (CMZ) regulations. (ET)
The print media industry recorded a growth of 16% last year and stood at Rs149bn according to the ministry of information and broadcasting (I&B). (ET)
In its recommendations on satellite radio Trai has recommended an FDI cap of 74% and a 4% revenue share for all players who want to offer services on this platform. (ET)
The general insurance industry grew by 14% in April led by strong growth in premiums collected by private sector insurers. (ET)
FMC will frame new rules on appointment of directors and tenure of board members in commodity exchanges in a move to improve corporate governance in these entities. (ET)
The Centre has decided to keep the base prices of edible oils unchanged for this fortnight
A minor pull-back is not ruled out. But, any rally should be looked at a chance to lighten positions.
FIIs were net sellers to the tune of Rs11.99bn (provisional) in the cash segment yesterday while the local institutions poured in Rs4.2bn. In the F&O segment, foreign funds were net buyers at Rs3.35bn. On Tuesday, FIIs were net sellers of Rs9.52bn in the cash segment. Mutual Funds were net buyers of Rs1.24bn.
Fortis Healthcare and HOV Services will announce their results today.
After correcting sharply in yesterday's trades, the market is likely to witness sideways movement. However, on the other hand, the undertone still looks bearish on the back of strong selling by the FIIs. For the Nifty, the key resistance level is at 4635 and has a likely support at 4540 on the downside. The Sensex has a likely support at 15300 and resistance at 15700.
As usual, the Left parties, and the BJP slammed the Government's decision. Even the RJD, very much part of the Congress coalition, has called for a rollback. If the political temperature continues to mount, there could be a small reversal in the fuel price hike.
Coming to the markets, the much-awaited announcements didn't cut much ice with the investors. Even the shares of OMCs gave up most of their gains by the end of the day. Though the price hike and other measures will provide some relief to OMCs, they will still be in considerable pain. What's more, the fiscal situation is also likely to worsen. Inflation is soon expected to hit double-digits. Companies in sectors like Auto, Aviation, Cement and Steel will be hit the most. Banks will also be affected as higher inflation will lead to more monetary tightening.
To add to the macro-economic woes, we have the fresh concerns over the global front. There are talks that Lehman Brothers could report losses and will have to raise fresh capital to stay afloat. Two of the biggest US bond insurers may have their ratings cut by Moody's. Though oil prices have cooled off substantially from US$135 per barrel, they are still quite high. The US economy may have avoided a recession (only technically though), but it's not going to gallop either. Also, Federal Reserve chief Ben Bernanke has hinted that the central bank may not increase rates any further.
Given the slew of negative factors, we expect the market to remain under pressure in the near-term. There are more chances of it falling than rallying from here. Technical and F&O indicators too are negative. FII selling has accelerated in the past few days. So, the bulls appear to be cornered from all fronts.
Corporate News
Private equity firms Blackstone, Apax Partners and Carlyle are raising US$5bn for Reliance Communication Ltd’s deal with MTN. (FE)
Reliance Communications hires Deutsche Bank to fund MTN takeover. (BS)
Tech Mahindra bagged US$2.5mn deal to provide end to end systems integration services to the Botswana Tele-Communications. (BL)
Bharti Airtel to opt for the mobile virtual network operator (MVNO) model to increase its footprint overseas than acquisitions abroad. (FE)
SAP plans to invest around US$4-5mn which could go up to US$8-10mn in start-up companies in India through its investment arm, SAP Ventures. (ET)
National Aluminium Company (NALCO) to invest Rs400bn in Greenfield and brownfield projects. (BS)
RBI bars Sahara India Financial Corporation from accepting public deposits due to violation of regulations. (BS)
IVRCL Infrastructure bags RS8.36bn project from ONGC Petro Addittions. (BS)
Phoenix Mills to raise US$450mn from private equity investors to fund its mall and hospitality business. (BS)
Reliance Retail in talks with Liz Claiborne for a JV to open its stores in India. (
Novartis has bought US-based Protez Pharmaceuticals in a deal worth up to US$400mn, giving it rights to an antibiotic which could be used to fight superbugs such as methicillin-resistant Staphylococcus aureus (MRSA). (ET)
Biocon launches pre filled syringes for two drugs for kidney and for cancer patients. (BS)
Essar plans to partner or buy controlling stake in Kalindee Rail Nirman to benefit from the high spending by the railways. (Mint)
Tata Sky not granted relief by Delhi High Court on petition filed for ‘misleading’ advertisement by Dish TV. (BS)
FITCH Ratings placed Reliance Infrastructure on negative rating watch, indicating that the ratings may be downgraded or remain at the current level. (ET)
Air India to induct seven Boeing 737-800’s to its fleet of 18, making its total fleet to 25. (BS)
Orissa based Ruserger Mines and Minerals has applied for license for three mines in Sindhudurg in Maharashtra. (BS)
TVS Motor has entered into a contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt Ltd. (BL)
TATA BP Solar plans to launch its solar-powered hoardings product called I-Sign by September. (ET)
Raymond launched its new readymade garments range, Raymond Finely Crafted Garments and is close to forming a joint venture with an overseas company. (ET)
Himalaya Drug Company is going to launch a new strategic business unit (SBU) for expanding into smaller towns and hinterland districts. (ET)
Economic News
The Centre to sanction Rs45bn for Mumbai Metro Rail project.
National Bank for Agriculture and Rural Development (NABARD) to open a special liquidity assistance window for cooperative credit institutions to assist during tight resource conditions. (BS)
State governments have decided to reduce the sales tax on petrol and diesel, to reduce the impact of increase in prices. (BL)
The Board of Approval (BoA) for Special Economic Zone (SEZ) cleared 21 SEZs proposal, but there was no decision on Goa SEZ. (FE)
Infrastructure development in and around Mumbai could come to a halt as a result of the proposed coastal management zone (CMZ) regulations. (ET)
The print media industry recorded a growth of 16% last year and stood at Rs149bn according to the ministry of information and broadcasting (I&B). (ET)
In its recommendations on satellite radio Trai has recommended an FDI cap of 74% and a 4% revenue share for all players who want to offer services on this platform. (ET)
The general insurance industry grew by 14% in April led by strong growth in premiums collected by private sector insurers. (ET)
FMC will frame new rules on appointment of directors and tenure of board members in commodity exchanges in a move to improve corporate governance in these entities. (ET)
The Centre has decided to keep the base prices of edible oils unchanged for this fortnight
Wednesday, June 4, 2008
HIGHTLIGHTS
Following are the highlights of the petroleum product price
hikes and tax revisions announced by the government:
* 3 rupees/L hike in diesel price.
* 5 rupees/L hike in petrol price.
* Govt hikes LPG prices by 50 rupees per cylinder.
* Customs duty on crude cut to nil.
* Govt cuts excise duty on diesel, petrol by 1 rupee/L.
* Customs other petro products cut to 5% vs 10%.
* Govt cuts customs duty on petrol, HSD to 2.5% from 7.5%.
* Excise duty cut to cost 66.60 bln rupees.
* Duty cut on oil pdts to cost govt 226 bln rupees.
* Revised fuel prices effective midnight
hikes and tax revisions announced by the government:
* 3 rupees/L hike in diesel price.
* 5 rupees/L hike in petrol price.
* Govt hikes LPG prices by 50 rupees per cylinder.
* Customs duty on crude cut to nil.
* Govt cuts excise duty on diesel, petrol by 1 rupee/L.
* Customs other petro products cut to 5% vs 10%.
* Govt cuts customs duty on petrol, HSD to 2.5% from 7.5%.
* Excise duty cut to cost 66.60 bln rupees.
* Duty cut on oil pdts to cost govt 226 bln rupees.
* Revised fuel prices effective midnight
BTST UNITECH,DLF,PUNJ ,,,,,,,,
SRF Technically, Looks Great JUST BUY N BUY
No Problem for Bulls !!!!
Buy Back Already Approved, Now, It's Time to Trader to buy the Stock.
REALITY STOCK LOOKS SUPERB
One should expect a choppy trading session be stock specefic,Important levels to watch on the Nifty now are 4800 on the upside and 4630-4635 on the lower side
Bullish or +ve Indices
Bank
Positional Calls
Buy Aartind- 34
Buy Cairn- 282
Buy Essoroil- 249
Buy Indiacem-166
Buy MTNL-96
For target pls subscribe only for memebers
The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs2,483.20 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,832.50 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs349.30 Crore) and net debt was Rs0.00 Crore.
Today, BSE Sensex has support at 15,641 and resistance at 16,387.
Market to stay cautious ahead of oil price decision
The fuel hike measure to be decided today is something the markets have to contend with. It’s a bit of a paradox as any increase in fuel prices will help oil PSUs (to a small extent) while at the same time, the move could push inflation towards the double-digit mark. The government will have to do some balancing act (in sentiment at least). What kind of package the Government has in store for the state-run oil firms, we may know by the end of the day.
The market managed to stage a smart comeback after being pounded in early morning trades. Short-covering in the afternoon lifted the key indices from the day's low. The bounce was particularly remarkable considering that most Asian markets were down sharply. It would be interesting to see if the bulls are able to continue the recovery process after the recent reversals. The market breadth remained negative and the sell-off came on much higher volume. The market is expected to go down further given the nervousness over the impending fuel price hike and its fallout on inflation and economic growth.
There are also murmurs of political instability with the Left Front reportedly planning to consider its ties with the Congress-led coalition regime. With general elections due in the first half of next year, this may not happen. In any case, the market is more worried about high oil prices, soaring inflation, slowing GDP growth, global financial turmoil and foreign capital outflows. Though some of these negative factors have already been factored in, each day seems to bring in fresh set of bad news. Technically too, the market appears to be a bit weak. On the Nifty, 4630 is seen as the next big support. Below this level though there could be danger.
Coming to today's outlook, we expect a cautious opening on the back of the overnight fall in US stocks and mixed trend in Asian markets.
AIA Engineering, Orbit Corp, Royal Orchid Hotels and Shasun Chemicals will declare their results today. AIA Engineering will also consider a stock split.
Shares of Anu’s Laboratories Ltd. and Gokul Refoils & Solvent Ltd. will get listed today.
No Problem for Bulls !!!!
Buy Back Already Approved, Now, It's Time to Trader to buy the Stock.
REALITY STOCK LOOKS SUPERB
One should expect a choppy trading session be stock specefic,Important levels to watch on the Nifty now are 4800 on the upside and 4630-4635 on the lower side
Bullish or +ve Indices
Bank
Positional Calls
Buy Aartind- 34
Buy Cairn- 282
Buy Essoroil- 249
Buy Indiacem-166
Buy MTNL-96
For target pls subscribe only for memebers
The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs2,483.20 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,832.50 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs349.30 Crore) and net debt was Rs0.00 Crore.
Today, BSE Sensex has support at 15,641 and resistance at 16,387.
Market to stay cautious ahead of oil price decision
The fuel hike measure to be decided today is something the markets have to contend with. It’s a bit of a paradox as any increase in fuel prices will help oil PSUs (to a small extent) while at the same time, the move could push inflation towards the double-digit mark. The government will have to do some balancing act (in sentiment at least). What kind of package the Government has in store for the state-run oil firms, we may know by the end of the day.
The market managed to stage a smart comeback after being pounded in early morning trades. Short-covering in the afternoon lifted the key indices from the day's low. The bounce was particularly remarkable considering that most Asian markets were down sharply. It would be interesting to see if the bulls are able to continue the recovery process after the recent reversals. The market breadth remained negative and the sell-off came on much higher volume. The market is expected to go down further given the nervousness over the impending fuel price hike and its fallout on inflation and economic growth.
There are also murmurs of political instability with the Left Front reportedly planning to consider its ties with the Congress-led coalition regime. With general elections due in the first half of next year, this may not happen. In any case, the market is more worried about high oil prices, soaring inflation, slowing GDP growth, global financial turmoil and foreign capital outflows. Though some of these negative factors have already been factored in, each day seems to bring in fresh set of bad news. Technically too, the market appears to be a bit weak. On the Nifty, 4630 is seen as the next big support. Below this level though there could be danger.
Coming to today's outlook, we expect a cautious opening on the back of the overnight fall in US stocks and mixed trend in Asian markets.
AIA Engineering, Orbit Corp, Royal Orchid Hotels and Shasun Chemicals will declare their results today. AIA Engineering will also consider a stock split.
Shares of Anu’s Laboratories Ltd. and Gokul Refoils & Solvent Ltd. will get listed today.
Tuesday, June 3, 2008
Float around, don’t fall
Nifty (4740) Supp 4630 Res 4820
BUY IN DIPS IS OUR FUNDA FOR TODAY SPECIFIC STOCK
for more subscribe with us
We expect our market to extend yesterday's selloff, given the plethora of negative factors, both local and global. Also, technical and F&O indicators are far from positive, and signal more pain in the immediate future. Select buying may always take place at lower levels. Review your financial comfort before adding stocks. Remain cautious at this juncture as the undertone has suddenly taken a reverse swing. FIIs continue to be net sellers. Supporting the market at this juncture is not on anyone’s agenda. 4800 was seen as a big support for the Nifty. But, that level was breached quite easily yesterday. The put-call ratio of option contracts expiring in June is also indicating further slide. Nifty futures continues to trade at a discount to the spot index and saw addition in its open interest, suggesting fresh build up in short positions. It remains to be seen if these shorts will get covered over the next few days or will there be further increase. Given this backdrop, one has no choice but to stay on the sidelines before there is more clarity on the market's direction.
Today's Pick - Moser Baer
We recommend a sell in Moser Baer India from a short-term perspective. The stock has been on an intermediate-term down trend from its January 2008 peak at Rs 344.
However, the corrective up move from March low of Rs 119 to May high of Rs 201 in the stock has retraced almost 38.2 per cent fibonacci retracement of its prior down move. After encountering resistance at around Rs 200, the stock resumed the downtrend. It tumbled 5 per cent, penetrating the 21-day moving average on June 2, 2008.
The daily momentum indicator is declining in the neutral region. The moving average convergence and divergence has displayed negative divergence and is indicating a sell. Our short-term outlook for the stock is bearish. We expect the stock to decline further until it hits our price target of Rs 150 in the short-term. Traders with short-term perspective can sell the stock while keeping the stop-loss at Rs 182 leve
Corporate News
Tata Motors has acquired the Jaguar Land Rover business from Ford Motor for a net consideration of US$2.3bn. (ET)
Bharti Airtel and US based VeriSign enter into 3 year arrangement for developing security solutions for Indian corporates. (ET)
Infosys has bagged patents for mobile tech, holography from the US Patent and Trademark Office. (ET)
Axis Bank and Yes Bank are securitizing loans worth over Rs10bn that were extended to HPCL and BPCL. (BS)
Ambuja Cement is set to buy a stake in ACC’s ready-mix concrete subsidiary – ACC Concrete. (ET)
ICICI Bank has raised interest rates on credit cards. (BL)
The financial closure of the Krishnapatnam UMPP of Reliance Power would be achieved in the coming three months. (BL)
SBI has launched its Agriculture Debt Waiver and Debt Relief Scheme-2008 in Jamli village near Indore. (BS)
GAIL India says its 100% subsidiary GAIL Gas will take up city gas distribution projects in 17 cities in the first phase. (BL)
IOC is in initial phase of discussions with ITC for merchandise supplies from the latter’s Choupal Sagar stores for its 2,050 kisan seva kendra (KSK) outlets across the country. (FE)
Videocon-promoted Datacom will invite bids for rolling out 70mn GSM mobile lines envisaging an investment of over Rs120bn in the next four years. (ET)
Jet Airways, SpiceJet, Kingfisher and other airlines have told the government they would curtail services frequency and air routes to cut losses after oil companies raised ATF prices by 18.5%. (BS)
The Kingfisher-Deccan combine has decided to increase fuel surcharge by Rs300-550. (BL)
Jindal Steel & Power is planning to build a Rs50bn, 1,080-mw, coal-fired captive power plant in Orissa. (BS)
Hexaware has appointed Mr P.R. Chandrasekar as the CEO and Vice-Chairman and Prateek Aggarwal as the CFO of the company. (BL)
HCL Info, HP, LG and Zenith are raising prices of personal computers (laptops and desktops), LCDs and plasma TVs, and IT peripherals by up to 13%. (BS)
The Allahabad Bank board has approved the proposal to raise about Rs1.5bn from selling rights shares to stakeholders. (BS)
Emami and a string of entities acting in concert purchased 23.6% stake from one of the promoter groups of Zandu Pharma at Rs6,900 per share for Rs1.3bn. (BL)
The Parikh family, co-promoters of Zandu Pharma is not in favour of selling its stake to Emami. (ET)
Dabur Group and the US-based Liberty Mutual Group have announced their plan to form a non-life insurance company. (BL)
The department of fertilizers has asked RCF to go ahead with the pre-project and pre-investment activities for the revival of Hindustan Fertiliser Corporation’s (HFC) Durgapur plant and Fertiliser Corporation of India’s (FCI) Talcher unit. (FE)
As part of its diversification plans, Omaxe is eyeing the power sector through its new subsidiary Omaxe Power. (BS)
Indus Fila is planning to invest Rs2bn in retail and set up 30-40 retail outlets within a year. (BS)
Sobha Developers is foraying into Mysore realty market with three projects. (BS)
Logix Microsystems will soon open an advanced photography studio in Brussels as part of its plans to enter the European market. (BS)
TDSAT has restrained BSNL from disconnecting Tata Tele over non-payment of access deficit charge. (BS)
Tamil Nadu Newsprint and Papers plans to tie up with other paper mills to get the surplus pulp converted to paper. (BL)
Bharat Gears has wiped out all its accumulated losses and has drawn up capex plans to cater to higher demand as well as technological upgradation. (BL)
The Burmans (Dabur group) plans to foray into clinical services segment through OncQuest, a privately held company. (ET)
Spanco BPO, the hived-off BPO unit of Spanco Telesystems is on the lookout for a Rs1bn KPO buy. (DNA)
Phoenix Mills is in the process of forming a separate company to manage all its real estate assets. (ET)
Vodafone has offered SouthAfrica’s Telkom to buy a further 12.5% stake in mobile operator Vodacom for US$2.47bn. (ET)
Tata Sky has cut its subscription rates.
BUY IN DIPS IS OUR FUNDA FOR TODAY SPECIFIC STOCK
for more subscribe with us
We expect our market to extend yesterday's selloff, given the plethora of negative factors, both local and global. Also, technical and F&O indicators are far from positive, and signal more pain in the immediate future. Select buying may always take place at lower levels. Review your financial comfort before adding stocks. Remain cautious at this juncture as the undertone has suddenly taken a reverse swing. FIIs continue to be net sellers. Supporting the market at this juncture is not on anyone’s agenda. 4800 was seen as a big support for the Nifty. But, that level was breached quite easily yesterday. The put-call ratio of option contracts expiring in June is also indicating further slide. Nifty futures continues to trade at a discount to the spot index and saw addition in its open interest, suggesting fresh build up in short positions. It remains to be seen if these shorts will get covered over the next few days or will there be further increase. Given this backdrop, one has no choice but to stay on the sidelines before there is more clarity on the market's direction.
Today's Pick - Moser Baer
We recommend a sell in Moser Baer India from a short-term perspective. The stock has been on an intermediate-term down trend from its January 2008 peak at Rs 344.
However, the corrective up move from March low of Rs 119 to May high of Rs 201 in the stock has retraced almost 38.2 per cent fibonacci retracement of its prior down move. After encountering resistance at around Rs 200, the stock resumed the downtrend. It tumbled 5 per cent, penetrating the 21-day moving average on June 2, 2008.
The daily momentum indicator is declining in the neutral region. The moving average convergence and divergence has displayed negative divergence and is indicating a sell. Our short-term outlook for the stock is bearish. We expect the stock to decline further until it hits our price target of Rs 150 in the short-term. Traders with short-term perspective can sell the stock while keeping the stop-loss at Rs 182 leve
Corporate News
Tata Motors has acquired the Jaguar Land Rover business from Ford Motor for a net consideration of US$2.3bn. (ET)
Bharti Airtel and US based VeriSign enter into 3 year arrangement for developing security solutions for Indian corporates. (ET)
Infosys has bagged patents for mobile tech, holography from the US Patent and Trademark Office. (ET)
Axis Bank and Yes Bank are securitizing loans worth over Rs10bn that were extended to HPCL and BPCL. (BS)
Ambuja Cement is set to buy a stake in ACC’s ready-mix concrete subsidiary – ACC Concrete. (ET)
ICICI Bank has raised interest rates on credit cards. (BL)
The financial closure of the Krishnapatnam UMPP of Reliance Power would be achieved in the coming three months. (BL)
SBI has launched its Agriculture Debt Waiver and Debt Relief Scheme-2008 in Jamli village near Indore. (BS)
GAIL India says its 100% subsidiary GAIL Gas will take up city gas distribution projects in 17 cities in the first phase. (BL)
IOC is in initial phase of discussions with ITC for merchandise supplies from the latter’s Choupal Sagar stores for its 2,050 kisan seva kendra (KSK) outlets across the country. (FE)
Videocon-promoted Datacom will invite bids for rolling out 70mn GSM mobile lines envisaging an investment of over Rs120bn in the next four years. (ET)
Jet Airways, SpiceJet, Kingfisher and other airlines have told the government they would curtail services frequency and air routes to cut losses after oil companies raised ATF prices by 18.5%. (BS)
The Kingfisher-Deccan combine has decided to increase fuel surcharge by Rs300-550. (BL)
Jindal Steel & Power is planning to build a Rs50bn, 1,080-mw, coal-fired captive power plant in Orissa. (BS)
Hexaware has appointed Mr P.R. Chandrasekar as the CEO and Vice-Chairman and Prateek Aggarwal as the CFO of the company. (BL)
HCL Info, HP, LG and Zenith are raising prices of personal computers (laptops and desktops), LCDs and plasma TVs, and IT peripherals by up to 13%. (BS)
The Allahabad Bank board has approved the proposal to raise about Rs1.5bn from selling rights shares to stakeholders. (BS)
Emami and a string of entities acting in concert purchased 23.6% stake from one of the promoter groups of Zandu Pharma at Rs6,900 per share for Rs1.3bn. (BL)
The Parikh family, co-promoters of Zandu Pharma is not in favour of selling its stake to Emami. (ET)
Dabur Group and the US-based Liberty Mutual Group have announced their plan to form a non-life insurance company. (BL)
The department of fertilizers has asked RCF to go ahead with the pre-project and pre-investment activities for the revival of Hindustan Fertiliser Corporation’s (HFC) Durgapur plant and Fertiliser Corporation of India’s (FCI) Talcher unit. (FE)
As part of its diversification plans, Omaxe is eyeing the power sector through its new subsidiary Omaxe Power. (BS)
Indus Fila is planning to invest Rs2bn in retail and set up 30-40 retail outlets within a year. (BS)
Sobha Developers is foraying into Mysore realty market with three projects. (BS)
Logix Microsystems will soon open an advanced photography studio in Brussels as part of its plans to enter the European market. (BS)
TDSAT has restrained BSNL from disconnecting Tata Tele over non-payment of access deficit charge. (BS)
Tamil Nadu Newsprint and Papers plans to tie up with other paper mills to get the surplus pulp converted to paper. (BL)
Bharat Gears has wiped out all its accumulated losses and has drawn up capex plans to cater to higher demand as well as technological upgradation. (BL)
The Burmans (Dabur group) plans to foray into clinical services segment through OncQuest, a privately held company. (ET)
Spanco BPO, the hived-off BPO unit of Spanco Telesystems is on the lookout for a Rs1bn KPO buy. (DNA)
Phoenix Mills is in the process of forming a separate company to manage all its real estate assets. (ET)
Vodafone has offered SouthAfrica’s Telkom to buy a further 12.5% stake in mobile operator Vodacom for US$2.47bn. (ET)
Tata Sky has cut its subscription rates.
Monday, June 2, 2008
Nifty 4700 or 5100 ,To Know Subscribe with Us
Keep eyes on sterlite ind,Bhushan steel, Ispat Ind
Nifty (4870) Sup 4780 Res 4910
Bulls look to carry momentum
Today's Pick - TV18
We recommend a buy in TV 18 from a short-term perspective. We note that the stock has been on an intermediate-term downtrend form its January 2008 high of Rs 599 levels. However, the stock found support at around Rs 300 level in late April and again in mid May the stock found support just above this level.
The stock has formed a falling wedge pattern spanning over the past four months, which is a bullish pattern. Falling wedge pattern has occurred at the bottom of the downtrend indicating reversal in the current trend. The daily momentum indicator has found support at 40 levels recently and bounced up. The daily moving average convergence and divergence is displaying positive divergence, supporting our bullish view.
We are bullish on the stock in the short-term. We expect the stock to rally to our price target of Rs 360 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while keeping the stop-loss at Rs 300
Market's worst fears have turned out to be a case of false alarm. We are of course talking about the GDP numbers, which came in ahead expectations. At 9%, the FY08 GDP growth beat all optimistic forecasts. That too when most were expecting a contraction due to a slowdown in industrial activity. An improved show by the farm sector helped as did the continued momentum in services. For the current fiscal year, expectations are for 8-8.5% GDP growth. This is pretty good considering the fact that it will come on top of the high base of last year. What's more, the strong growth momentum underscores India's long-term macro-economic fundamentals amid a slew of headwinds and a slowing global economy. So, in that sense, the bulls should be happy.
Of course, ground reality remains that rising inflation is reducing the weight of wallets across the board. Inflation has the potential to touch double-digits in a few week's time. If inflation does spiral out of control, the RBI will have no choice but to resort to some tightening measures. The RBI may even hike the repo rate, which may not please India Inc and the bulls.
For the day, we expect the market to open on a cautious to flat note as most global markets are sluggish. Thereafter, the trend will turn sideways and rangebound. With the GDP data out of the way, the focus will be on crude oil prices and whether the Government manages to bite the bullet and increase retail fuel prices.
Corporate News
Sterlite Industries to buy operating assets of Asarco, a US based mining, smelting and refining firm for US$2.6bn. (BL)
Essar Oil bids for an offshore block in Australia; in talks with foreign companies to explore for oil in Egypt and Yemen. (BS)
Emaar MGF plans to develop 31mn sq.ft of commercial, residential, SEZs and hospitality spaces in South India at an investment of Rs125bn.(FE)
HDFC Venture has picked up 49% stake in two subsidiaries of Godrej Properties, the real estate arm of Godrej group.(BS)
Government asks NTPC to resolve all its disputes with foreign vendors.(ET)
JSW Steel to invest US$500mn over next three years to expand capacity of iron ore mines acquired in Chile.(BL)
L&T plans to invest Rs25bn in the current fiscal to augment capacities at its growth centers.(DNA)
Bajaj Auto posts 7.6% growth in motorcycles sales in May; Hero Honda motorcycles sales growth rises 9.5%.(BS)
Tata Steel to raise its Jamshedpur plant capacity to 10mn tons pa by 2010.(BL)
M&M defers its plan to build a Rs4bn tractor facility in Chennai.(BS)
Apollo Gleneagles to invest Rs14bn in the next two years to set up 2,000 more beds.(BL)
Alstom Power is likely to enter into a US$500mn JV with Bharat Forge.(ET)
BSNL may go for a listing as trade unions likely to respond positively to the government’s call in this regard.(TOI)
Godrej Properties files a draft prospectus for its IPO; estimated to raise up to Rs6bn.(FE)
Air India announces hike in fare prices as ATF prices go up.(Mint)
Essar Oil to raise fresh debt of up to US$5bn through ECB.(BL)
Rashtriya Ispat Nigam is mulling a merger with NMDC.(BL)
Emami group acquires 27.5% stake in Zandu Pharmaceutical.(TOI)
Satyam Computers takes on lease 0.4mn sq ft of office space in Chennai SEZ.(BL)
UB Group in talks with France based EADS Socata to invest US$200mn to co-develop business for jets.(DNA)
BPCL may improve capacity utilization after merger with IOC. (BL)
L&T on look out for a JV with Indian Railways to manufacture equipment for the railways.(ET)
Elder Pharmaceuticals to invest Rs250mn in API space.(DNA)
Times of India group buys UK based Virgin Radio for Rs4.5bn.(TOI)
Genpact, EXL Services may buy a major stake in Infovision.(ET)
Sun Pharma to file 30 ANDAs in FY09.(DNA)
MRTPC issues notification to Dish TV over misleading advertisement of its free set-top box offer.(TOI)
DHL is planning to make an offer to shareholders of Blue Dart.(ET)
Mercator Lines renews a vessel charter to ArcelorMittal for two more years.(BL)
WNS Holdings emerges as the highest bidder for Aviva’s BPO operations with an offer of US$200mn.(ET)
Economic News
Fiscal deficit touches Rs329bn for April; constitutes 24.7% of the fiscal 2009 target.(FE)
Government allowssoftware developers, hotels and hospitals to raise up to US$100mn for import of capital goods.(ET) Government is believed to have decided to impose 15% export duty on iron ore.(TOI)
Air fares to go up with the government announcing an 18.5% average increase in ATF prices.(FE)
India turns into a net importer of steel with imports of 7mn tons in 2007-08.(BS)
Committee of Secretaries decides to remove export duty on most steel products.(DNA)
JNPT to invest Rs70bn in an up gradation drive.(ET)
Kerala and West Bengal government may reduce sales tax on petrol and diesel.(BS)
Department of Post in talks with Deutsche Postbank to enter into housing loan business.(FE)
Government to consider uniform state laws for liquor.(BS)
Finance ministry turns down a proposal from DIPP to give 35% abatement on excise duty to cement manufacturers.(ET)
Government announces 1% reduction in central sales tax.(FE)
RBI issues new draft norms to review current stipulations to minutely monitor off-balance sheet exposures of banks.(ET)
GoM to take a call on whether foreign and domestic companies can participate in the auction for 3G spectrum.(FE)
Indian shipping firms would meet a global deadline to phase out all single-hull tankers by 2010
Nifty (4870) Sup 4780 Res 4910
Bulls look to carry momentum
Today's Pick - TV18
We recommend a buy in TV 18 from a short-term perspective. We note that the stock has been on an intermediate-term downtrend form its January 2008 high of Rs 599 levels. However, the stock found support at around Rs 300 level in late April and again in mid May the stock found support just above this level.
The stock has formed a falling wedge pattern spanning over the past four months, which is a bullish pattern. Falling wedge pattern has occurred at the bottom of the downtrend indicating reversal in the current trend. The daily momentum indicator has found support at 40 levels recently and bounced up. The daily moving average convergence and divergence is displaying positive divergence, supporting our bullish view.
We are bullish on the stock in the short-term. We expect the stock to rally to our price target of Rs 360 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while keeping the stop-loss at Rs 300
Market's worst fears have turned out to be a case of false alarm. We are of course talking about the GDP numbers, which came in ahead expectations. At 9%, the FY08 GDP growth beat all optimistic forecasts. That too when most were expecting a contraction due to a slowdown in industrial activity. An improved show by the farm sector helped as did the continued momentum in services. For the current fiscal year, expectations are for 8-8.5% GDP growth. This is pretty good considering the fact that it will come on top of the high base of last year. What's more, the strong growth momentum underscores India's long-term macro-economic fundamentals amid a slew of headwinds and a slowing global economy. So, in that sense, the bulls should be happy.
Of course, ground reality remains that rising inflation is reducing the weight of wallets across the board. Inflation has the potential to touch double-digits in a few week's time. If inflation does spiral out of control, the RBI will have no choice but to resort to some tightening measures. The RBI may even hike the repo rate, which may not please India Inc and the bulls.
For the day, we expect the market to open on a cautious to flat note as most global markets are sluggish. Thereafter, the trend will turn sideways and rangebound. With the GDP data out of the way, the focus will be on crude oil prices and whether the Government manages to bite the bullet and increase retail fuel prices.
Corporate News
Sterlite Industries to buy operating assets of Asarco, a US based mining, smelting and refining firm for US$2.6bn. (BL)
Essar Oil bids for an offshore block in Australia; in talks with foreign companies to explore for oil in Egypt and Yemen. (BS)
Emaar MGF plans to develop 31mn sq.ft of commercial, residential, SEZs and hospitality spaces in South India at an investment of Rs125bn.(FE)
HDFC Venture has picked up 49% stake in two subsidiaries of Godrej Properties, the real estate arm of Godrej group.(BS)
Government asks NTPC to resolve all its disputes with foreign vendors.(ET)
JSW Steel to invest US$500mn over next three years to expand capacity of iron ore mines acquired in Chile.(BL)
L&T plans to invest Rs25bn in the current fiscal to augment capacities at its growth centers.(DNA)
Bajaj Auto posts 7.6% growth in motorcycles sales in May; Hero Honda motorcycles sales growth rises 9.5%.(BS)
Tata Steel to raise its Jamshedpur plant capacity to 10mn tons pa by 2010.(BL)
M&M defers its plan to build a Rs4bn tractor facility in Chennai.(BS)
Apollo Gleneagles to invest Rs14bn in the next two years to set up 2,000 more beds.(BL)
Alstom Power is likely to enter into a US$500mn JV with Bharat Forge.(ET)
BSNL may go for a listing as trade unions likely to respond positively to the government’s call in this regard.(TOI)
Godrej Properties files a draft prospectus for its IPO; estimated to raise up to Rs6bn.(FE)
Air India announces hike in fare prices as ATF prices go up.(Mint)
Essar Oil to raise fresh debt of up to US$5bn through ECB.(BL)
Rashtriya Ispat Nigam is mulling a merger with NMDC.(BL)
Emami group acquires 27.5% stake in Zandu Pharmaceutical.(TOI)
Satyam Computers takes on lease 0.4mn sq ft of office space in Chennai SEZ.(BL)
UB Group in talks with France based EADS Socata to invest US$200mn to co-develop business for jets.(DNA)
BPCL may improve capacity utilization after merger with IOC. (BL)
L&T on look out for a JV with Indian Railways to manufacture equipment for the railways.(ET)
Elder Pharmaceuticals to invest Rs250mn in API space.(DNA)
Times of India group buys UK based Virgin Radio for Rs4.5bn.(TOI)
Genpact, EXL Services may buy a major stake in Infovision.(ET)
Sun Pharma to file 30 ANDAs in FY09.(DNA)
MRTPC issues notification to Dish TV over misleading advertisement of its free set-top box offer.(TOI)
DHL is planning to make an offer to shareholders of Blue Dart.(ET)
Mercator Lines renews a vessel charter to ArcelorMittal for two more years.(BL)
WNS Holdings emerges as the highest bidder for Aviva’s BPO operations with an offer of US$200mn.(ET)
Economic News
Fiscal deficit touches Rs329bn for April; constitutes 24.7% of the fiscal 2009 target.(FE)
Government allowssoftware developers, hotels and hospitals to raise up to US$100mn for import of capital goods.(ET) Government is believed to have decided to impose 15% export duty on iron ore.(TOI)
Air fares to go up with the government announcing an 18.5% average increase in ATF prices.(FE)
India turns into a net importer of steel with imports of 7mn tons in 2007-08.(BS)
Committee of Secretaries decides to remove export duty on most steel products.(DNA)
JNPT to invest Rs70bn in an up gradation drive.(ET)
Kerala and West Bengal government may reduce sales tax on petrol and diesel.(BS)
Department of Post in talks with Deutsche Postbank to enter into housing loan business.(FE)
Government to consider uniform state laws for liquor.(BS)
Finance ministry turns down a proposal from DIPP to give 35% abatement on excise duty to cement manufacturers.(ET)
Government announces 1% reduction in central sales tax.(FE)
RBI issues new draft norms to review current stipulations to minutely monitor off-balance sheet exposures of banks.(ET)
GoM to take a call on whether foreign and domestic companies can participate in the auction for 3G spectrum.(FE)
Indian shipping firms would meet a global deadline to phase out all single-hull tankers by 2010
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