Friday, January 14, 2011
Thursday, January 13, 2011
Buy and Hold....
Hindustan Unilever (BUY, between Rs301.5-302.5, Target Rs315): After declining for past five trading session, stock is currently flirting with multiple supports placed between the range of Rs301-303. The medium term moving average support of 50 DMA is also placed of Rs301.6 from where sharp bounce back is expected in the near term. A 61.8% retracement of recent decline should also assist to extend the bounce back towards Rs319.On the long term chart stock is forming ‘inverted head and shoulder pattern’ which is bullish signal. We advise buying stock in the range of Rs301.5-302.5 with stop loss of Rs297.(Time period 7 days).
± IIP slummed to an 18-month low of 2.71% in November 2010. (BS)
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Corporate Snippets
RIL signs pact with Gujarat on petroleum education. (BL)
± Oil India may miss its target to produce 3.7mn tons of crude oil in the current fiscal. (BS)
± The government is poised to clear the US$9.6bn Cairn-Vedanta deal by the middle of February. (ET)
± Reliance Infra and RNRL are closed to reaching a settlement with SEBI by paying consent fees. (ET)
± BHEL is increasing thrust on non-core businesses to support growth. (ET)
± Tata Steel to launch its up to US$800mn public share sale on 19th January 2010. (BS)
± IDFC aims to raise Rs29.3bn via infra bonds. (BS)
± Wockhardt board approves a plan to merge the nutrition business of its wholly owned subsidiary with itself. (BS)
± Reliance Media Works has lost the battle for the control of the multiplex chain against Inox. (BS)
± HCC to invest Rs12bn on Gujarat renewable energy project. (BL)
± Sterling Holiday Resorts plans to raise Rs1bn through QIP. (BS)
Wednesday, January 12, 2011
Market Commentary ..
Hopefully, a better day awaits us after a gallant yet unsuccessful attempt of the bulls on Tuesday. But, don’t take the opening for granted. It can be misleading – like it happened on Tuesday. Volatility has increased lately and might stay elevated in the near term.
The IIP data for November will be out today and will have a bearing on sentiment. The infrastructure growth for the month wasn’t all that great. IT stocks could remain in spotlight ahead of Infosys’ results on Thursday. December inflation report is scheduled for release on Friday.
The key indices have dipped to nearly a month’s low. The Indian market has now fallen for six successive sessions. With most overseas markets in the green, the negative trend may take a temporary break at least.
US stocks gained on optimism about earnings while European indices rose after Japan pledged to buy eurozone debt. Portugal’s PM has dismissed talk of a bailout. Asian stock benchmarks are up this morning.
Corporate Snippets
± BHEL has bagged Rs122bn equipment supply contract from Rajasthan state utility, Rajasthan Vidyut Utpadan Nigam, beating competition from Chinese supplier Dong Fang. (FE)
± HDFC plans to sell US$1.5bn one-year bonds. (FE)
± Tata Steel plans to issue 57 million shares through FPO. (FE)
± Singtel hikes stake in Bharti Airtel to 32.2%. (ET)
± Essar Oil has started gas production from its Raniganj CBM block in West Bengal. (BS)
± Apollo Tyres has decided to increase its investments into the Chennai factory to Rs21bn /Rs 23bn as against its originally committed investment of Rs4.5bn announced in August 2006. (FE)
± iGate made an open offer to acquire another 20.6% in Patni Computer Systems. (BS)
± Allahabad Bank will be raising capital of Rs26bn under Tier-II during the current quarter. (FE)
± Biocon’s initial data from late stage clinical trials on its experimental oral insulin drug for diabetes did not meet the desired results. (FE)
± Norges Bank, on behalf of the Norwegian Government Petroleum Fund has mopped up additional shares in Lanco Infratech. (FE)
Tuesday, January 11, 2011
Market Commentary ..
Nothing unexpectedly earthshaking has happened in recent times but the bulls are feeling the earth move below their feet. FIIs seem to be increasing their withdrawals after pumping in a record US$29bn last year.
The only thing that seems to be adding up is fears of inflation. After taking a pause in December, the RBI is most likely to push up policy rates at its Jan. 25 meeting. None of the above two reasons should surprise the markets but the undertone has been marred by the continuity and enormity of the selloff.
The silver lining is that the main indices appear to be a bit oversold. Some sort of a technical pull-back is always on the cards. It’s not yet time to take a directional call though. We see a cautious opening but like Monday one might see an extension of the previous session’s fall before a recovery, if any.
While the medium- to long-term prospects remain upbeat for India, the markets will have to negotiate a few near-term headwinds.
Corporate Snippets
± Tata Steel plans to raise Rs35bn-50bn via follow-on public offer (FPO). (BS)
± Reliance Industries has opposed the proposal of a new pipeline from Kakinada to Srikakulam floated by Andhra Pradesh Gas Infrastructure Corporation (APGIC). (BS)
± The Hero group plans to enter the three-wheeler business, pitting itself against market leader Bajaj Auto. (ET)
± Edelweiss Capital said its subsidiary is targeting to lend about Rs50bn for retail housing over the next five years. (ET)
± Sterlite Technologies has arranged Rs7bn worth of funds for its mega transmission project connecting North-east with the Northern states India. (ET)
± ONGC has demanded that the royalty it pays on crude from Cairn's oilfields in Rajasthan be added to the project cost. (ET)
± American oilfield service provider Schlumberger has executed ONGC contract for drilling country’s first shale gas well in Damodar Valley. (ET)
Monday, January 10, 2011
INTRADAY SELL; NIFTY JAN FUT above 5904 & 5114 SL 5949
TARGET 5888, 5877,
5844 & 5804
BELOW
LOOKING WEAK.................
5844 & 5804
BELOW
LOOKING WEAK.................
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