Market Commentary ..

Red may the colour of the day but investors will love to see more green on their screens.

From the beginning of the year, investors have been suffering; especially those holding on to counters they love.

Friday’s bounce could well spill over into today’s session, at least in the early morning trade. The global cues are positive. The exit of Egypt’s autocratic ruler Hosni Mubarak and the subsequent drop in oil prices could aid the sentiment. For the Nifty, a breakout above 5400 should pave the way for an extension of the rally towards 5670 levels.

US stocks finished a strong week at multi-year highs on Friday. European stocks reversed losses to end higher as well. Most Asian markets are up smartly this morning.

Watch out for ADAG stocks; besides the Q3 results investors will watch closely all other developments though enough clarifications have been issued. RIL could be a laggard amid reports of a hefty SEBI penalty in connection with the insider trading case. Other key result to keep an eye on today is that of GSK Pharma, Satyam, Unitech and Videocon.

INTRADAY CALL,

BUY and HOLD

TATA MOTOR

RELCAPITAL

MNM

Red may the colour of the day but investors will love to see more green on their screens.

Market to open GREEN  &  

Relief rally likely to begin 

Keep watch on  front line Selective stocks

 

Sector Watch 

Sugar, Banking, Finance,   Education related,  

Retail sector stocks,   Bajaj-Tata Group Stocks  

 

Sector Avoid:

Telecom, Mukes-Anil Ambani Stocks

Pre Market Ideas

morning call,

BUY and HOLD

ICICI BANK at 1000

sl 991

TARGET 1021,1027

Corporate Snippets

±  NTPC in talks with Toshiba Corp to build a pilot project in India to capture and store carbon emissions. (BS)

±  SBI raised its base rate and the benchmark prime lending rate by 25bps each. (BS)

±  The Bajaj Group mulling a return to scooter manufacturing. (ET)

±  SBI plans to sell retail bonds once again to raise Rs20bn. (ET)

±  Apollo Tyres plans to set up car radial-tyre plants in Eastern Europe. (ET)

±  GE Shipping withdraws the draft red herring prospectus of its subsidiary, Greatship (India) Ltd. (BS)

±  M&M has fixed Rs66.55 per share for an open offer to acquire 20% additional stake in EPC Industries from public shareholders. (ET)

±  Dexia Group, European banking major may rope in YesBank and IndusInd Bank to takeover its Israel operations. (ET)

±  IDFC raises Rs7.65bn in its second bond sale in less than four months, up 66% from the first one. (ET)

±  S Kumars Nationwide plans to make it a Rs5bn brand in the next 3-5 years. (BS)

±  Uttam Galva, Bhushan Steel and APL Apollo eye Lloyds Steel, which has an annual steelmaking capacity of 0.6mn tonnes. (ET)

सेन्सेक्स (17728.61) +265.57 अंक चढ्कर, नीफ़्टी (5310.00) +84.20 अंक चढ्कर, बंद..

SENSEX

17728.61

265.57

 

NIFTY

5310.00

84.20

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

Markets may under pressure

&

Little recover likely in mid-session

Overall volatile session

Keep stock specific approach

Sector Watch : Infra & Banking

Sector Avoid: Telecom, Realty, I.T.

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.

Pre Market Ideas

morning call,
BUY and HOLD
M&M at 654
sl 650
TARGET 663,665

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)

सेन्सेक्स (17463.04) -129.73 अंक गिरकर, नीफ़्टी (5225.80) -27.75 अंक गिरकर, बंद.

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.

Sector Watch : 

Anil Ambani (ADAG)

Group Stocks, I.T. & Fertilizer Stocks

Sector Avoid:

Telecom, Banking, Realty & Cement

Market to open with negative note

&

Likely to bounce back in mid session 

 due to overbought position

Avoid Small & Mid Cap Stocks

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..!!