Friday, February 11, 2011
sell ..................
Short Bharti Airtel Feb Future in range of Rs325-327 for the target price of Rs311 and stop loss placed at Rs332.
Lot size: 1000
Remarks: Net maximum profit of Rs16,000 and net maximum loss of Rs7,000.
Market Commentary ..
The misery on the Street continues as hapless investors try in vain to interpret market movement. A dip in food inflation to a 7-week low of 13.07% for the week ended January 29, failed to bring any cheer. The increasing probe in the spectrum scam continues to ring in alarm bells. The Sensex is now at levels last seen in early July last year. Rough calculations show that stock market wealth has crashed by over Rs11,000bn since the beginning of this calendar year.
The outlook for the day is not heartening at all. Harried investors will continue rushing in aggressively to sell part of their holdings with every fall. Ideally, the reverse would have been a better strategy in such a falling market. But not many seem to like being greedy when most others are fearful.
The Index for Industrial Production (IIP) is expected to slip yoy in December too. Remember, the November numbers had come as a shocker with IIP at 2.7%. The worst may be over for the IIP and it could probably only get better sequentially. Sadly, the same view cannot be echoed about the market as yet
The outlook for the day is not heartening at all. Harried investors will continue rushing in aggressively to sell part of their holdings with every fall. Ideally, the reverse would have been a better strategy in such a falling market. But not many seem to like being greedy when most others are fearful.
The Index for Industrial Production (IIP) is expected to slip yoy in December too. Remember, the November numbers had come as a shocker with IIP at 2.7%. The worst may be over for the IIP and it could probably only get better sequentially. Sadly, the same view cannot be echoed about the market as yet
NIFTY FO CLOSED @ 5225 AS ON 10.02.2011
NIFTY FO has resistance @ 5237 to 5252; above which other resistance levels are @ 5263 to 5273. In down side support levels are @ 5213 - 5203 levels; below which other support levels are @ 5197 to 5177 levels in FEBRUARY-2011. I am positive for next week above 5273 level but be with the trend. Let the market decide further moves. As we are saying from many days Buying is suggested in falls only... and its still a better strategy in the given scenario...... One can go for buy at those levels also, but in absence of that its time to BOOK PROFIT now. This is a pessimistic outlook but that's the way we tend to be, in this market.
Corporate Snippets
± Tata Motors has bagged an order to supply around 250 ‘Tata Prima’ trucks to LINFOX Logistics.(ET)
± IOC puts Rs200bn public issue on hold due to unfavorable market condition & rising global crude prices.(ET)
± M&M to acquire 38% stake in micro irrigation company- EPC Industries Ltd through preferential issuance of equity shares for Rs0.4bn. (BS)
± PE firm, HDFC buys over 30% stake in Ratnakar bank.(ET)
± Ericsson has partnered Idea Cellular for the latter’s online applications stores.(ET)
± CESC will invest Rs30bn in its 600MW thermal power projects at Haldia in West Bengal. (BS)
± Port of Antwerp signed a MOU with Essar Shipping Ports & Logistics to enter into booming port business in India.(ET)
± LVMH, world largest conglomerate is set to acquire minority stake in Gitanjali Gems, the deal is valued at US$100 – 125 mn.(ET)
± Cochin Shipyard Ltd has signed contracts for two 120-tonne Bollard pull anchor-handling tug supply vessels with Shipping Corporation of India. (BS)
Thursday, February 10, 2011
Book profit in Short LIC Housing Fin Feb Futs at Rs164.5
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Precious Metals – ‘Uptrend intact; wait for appropriate signals’
After a record ten straight years of annual gains, gold has entered a critical phase in one of its longest rallies. Markets are abuzz with contradictory views on whether gold will continue to rise in 2011. Signs of a slowdown are apparent in the short to medium-term. However, we investigate two compelling factors affecting gold prices and find out why there is no reason that the prolonged rally cannot continue well into this year as well. Inflationary concerns are likely to be the biggest support for gold prices in 2011. Gold prices may suffer short-term damage if selling from physically-backed exchange traded funds extends for a second month. Near-term we expect that further downward pressure may be experienced in the gold market with a risk that prices could potentially fall modestly below USD1,300/oz. This could occur over the next quarter or so. Overall, we feel the gold & silver prices would be range-bound for the coming quarter with some negative bias on a very short term basis. The secular trend in gold still remains quite bullish but may see some pressure on the prices this quarter.
INTRADAY SELL;
± Short Federal Bank Feb Future in range of Rs345-347 for the target price of Rs330 and stop loss placed at Rs353.
Lot size: 1000
Remarks: Net maximum profit of Rs17,000 and net maximum loss of Rs8,000.
Market Commentary ..
The fear narrative continues to be recited by Indian investors even as select corporates are forced to work overtime to counter rumor mills. The recent CBI arrests in the telecom probe seem to be making matters worse for the bourses. The Anil Dhirubhai Ambani group was yet again a victim of what the group termed as ‘completely baseless and motivated rumors spread by unscrupulous corporate rivals.’ Whatever the truth, the group saw an erosion in its market cap with its listed entities sliding anywhere between 8-18%.
The start today is set to be in the red. The global markets have no ray of hope with the US indices ending flat; nevertheless the Dow did manage to stage an eighth straight day of gains.
The upcoming Finance Bill will have to factor in a confluence of events – domestic and global. The pick up in American economy seems to have prompted the earlier theory that a flight of capital will take place for lucrative returns back home in the US. These are opportunities for investors to take some calculated risks on large-caps.
નમસ્તે,
TATA MOTOR @ 1077 >
POSITIVE TREND @ 1069 WITH SL @ 1063
TARGET @ 1089 TO 1093 - 1097..!!
TCS LTD @ 1098 >
NEGATIVE TREND @ 1107 WITH
SL @ 1117
TARGET @
1081 TO 1077 - 1073..!!
POSITIVE TREND @ 1069 WITH SL @ 1063
TARGET @ 1089 TO 1093 - 1097..!!
TCS LTD @ 1098 >
NEGATIVE TREND @ 1107 WITH
SL @ 1117
TARGET @
1081 TO 1077 - 1073..!!
�NIFTY FO CLOSED @ 5282 AS ON 09.02.2011
NIFTY FO has resistance @ 5288 to 5297; above which other resistance levels are @ 5309 to 5317. In down side support levels are @ 5247 to 5230 levels; below which other support levels are @ 5219 to 5207 levels in FEBRUARY - 2011. I am positive for next week above 5317 level but be with the trend. Let the market decide further moves. As we are saying from many days Buying is suggested in falls only. And its still a better strategy in the given scenario. One can go for buy at those levels also, but in absence of that its time to BOOK PROFIT now. This is a pessimistic outlook but that's the way we tend to be, in this market.
Corporate Snippets
± RIL to seek help from Shell International to rectify technical glitches in its D6 block in the KG basin. (BS)
± TCS may spend as much as US$500mn on an acquisition in Germany or Japan. (ET)
± Income–Tax dept may set up special team to probe DB Realty case. (ET)
± Coal India may start exploration at Mozambique mines by June. (ET)
± Coal India may buy up to a 15% stake in US-based Peabody Energys Australian assets early next fiscal for an estimated US$100 mn. (ET)
± ONGC expects to float tenders for the Rs80bn surface facility revamp program in its three onshore assets in Gujarat within a month (BL)
± TCS has signed a five-year contract with du, an integrated telecom service provider in the UAE, to provide IT managed services. (ET)
± DLF to approach Supreme Court against a Punjab and Haryana High Court verdict ordering demolition of the SEZ in Gurgaon. (BS)
± The environment ministry has given SAIL the go-ahead to divert 595 hectare of forest land in Chiria. (BS)
± REC plans to increase its lending rates by 50 bps within two weeks. (BL)
Wednesday, February 9, 2011
Tuesday, February 8, 2011
08.02.2011
NIFTY FO CLOSED @ 5394 AS ON 08.02.2011
NIFTY FO has resistance @ 5409 to 5419; above which other resistance levels are @ 5423 to 5433. In down side support levels are @ 5373 to 5357 levels; below which other support levels are @ 5333 - 5317 levels in FEBRUARY - 2011. I am positive for next week above 5433 level but be with the trend. Let the market decide further moves. As we are saying from many days Buying is suggested in falls only and it still a better strategy in the given scenario. One can go for buy at those levels also, but in absence of that its time to BOOK PROFIT now. This is a pessimistic outlook but that's the way we tend to be, in this market.
Monday, February 7, 2011
Sell above 123.50
IOB (SELL, below Rs123.50, Target Rs117): On Friday, the stock has signaled a fresh sell signal due to formation of ‘Engulfing Bearish Line’ pattern on candlesticks. The stock had been on a strong support around its 200-DMA since third week of January 2011, which broke down on Friday, confirming the downside. Last week, we the stock broke below its 200-day DMA. Friday’s decline confirms the breakdown from the multiple support zone. Furthermore, on the weekly chart, it has broken down from a small consolidation pattern, confirming the negative trend. We expect the selling pressure to continue, which could drag the stock back towards the levels of Rs114-112. We recommend traders to sell IOB February Futs below Rs123.50 with stop loss of Rs126 for target of Rs117.
Market Commentary ..
The world seems to be embracing riskier assets, in other words- equities. Even Egypt's investors are said to be gearing for a rally in their market. But India seems to be in a battered club for quite a while. The worst may not be over and investors will hope to forget the Friday fright which saw the main indices tumbling mercilessly.
The markets will try to grapple with advance GDP estimates for FY11 today. Expectations are that the government will project about 8.5% gross domestic product (GDP) growth in the current fiscal. The latest IIP numbers will be out on Friday. The Prime Minister on Friday reiterated what we all know too well- that inflation posed a “serious threat to the growth momentum.”
A flat start is what we have in store for the day. Investors will be wary of taking heavy positions even though many counters seem attractive. Stick to the large caps in case you decide to make some purchase. Meanwhile, RBI’s Deputy Governor Subir Gokarn said Egypt’s crisis will impact the RBI’s actions.
Corporate Snippets
± Siemens sells its 8-acre land parcel in Bangalore for Rs3.8bn to realty developer RMZ Corporation. (ET)
± Government nod for the Cairn-Vedanta deal will take more time with the ministry of petroleum and natural gas conveying pre-conditions for an approval to the companies. (BS)
± RCom and Bharti, have approached the government seeking to prematurely exit from the rural telephony scheme under the USO subsidy without fulfilling the commitment they had made by winning bids in 2007 to provide telecom services in villages. (BL)
± Mozambique has awarded Jindal Steel & Power a 25-year licence to explore and mine for coal in the northwest Tete province, in return for a US$180mn investment. (DNA)
± Bank of Baroda increased the minimum lending rate by 50bps to 9.5% and the BPLR by 50bps to 13.8%. (ET)
± Hindustan Unilever says there could be further price hikes in its products as input costs particularly that of commodities continue to rise. (FE)
± Lakshmi Vilas Bank plans to dilute 40% equity to raise Rs3.5bn from a share sale to boost its capital and raise lending. (ET)
± Indian Overseas Bank plans to launch a financial services subsidiary in FY12, besides setting up exclusive branches to give gold loans. (ET)
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