Friday, February 4, 2011
Market Commentary ..
Thank god there was no afternoon shocker on Thursday as was the case on Wednesday. After a five-day rout we had a solid advance. This could sustain as FIIs were net buyers after a long hiatus. Also, the Nifty breached short term resistance of 5470 and closed above 5500. Some short covering is expected around 5550, which may take the Nifty to 5570. A close above 5650 might just shore up investor confidence.
However, any major up-trend will take a while to develop and won’t be without hiccups. Resistance is likely at 5600 and later around 5700-5750.
We expect a flat to steady start after which the indices could gain traction. But be careful as the undertone remains jittery and avoid getting hit by intraday volatility. FII flows will continue to have a bearing on overall sentiment and so will the upcoming Budget.
US economic data has improved steadily, propelling the Dow above 12,000. All eyes are on Friday’s monthly jobs report.
Balrampur Chini, Cipla, Hindustan Copper, NCC and Suzlon will declare their results today.
Thursday, February 3, 2011
Corporate Snippets
± Infosys is rehauling its hierarchical system and making internal process more flexible for young employees to stem attrition and attract talent. (ET)
± NTPC will not open price bids for the Rs110bn bulk equipment supply tender on Friday. (ET)
± NTPC has floated bids for 800MW bulk super-critical units for Rs190bn. (BS)
± Vedanta may terminate US$9.6bn deal if Cairn India tweaks royalty clause. (ET)
± M&M has rolled out a ‘mobile seva’ initiative to provide services for its three wheelers and other commercial vehicles in AP, Tamil Nadu, Kerala and Karnataka. (BL)
± ITC may soon hike prices of its packaged foods product by 7-8%. (BL)
± Bank of India to raise Tier-I capital through the issue of 30mn fresh equity share. (BL)
± Mahindra Satyam is wooing back select former employees. (BL)
± Wipro to set up an exclusive delivery centre in Toronto to develop software solutions and cut down Canadian companies’ energy consumption bill. (BL)
± SAIL FPO is likely to hit the market only by end-March. (BL)
Wednesday, February 2, 2011
Buy and Hold....
Bharti Airtel (BUY, between Rs312-314, Target Rs331): Bharti Airtel after recent correction is currently trading near strong support which corresponds to 50% Fibonacci levels and followed with support of long term moving average of 200 days. Though stockprice closed in the negative terrain in yesterday ‘s trading session, but prices have managed to bounce back sharply from the support levels of Rs310 levels. Daily RSI too has been trading near its 3 month trough of 32 levels and there is high probability that stock to post decent recovery from these levels. We advise buying stock in the range of Rs312-314 with stop loss of Rs306 for target of Rs331 (duration 5 days).
Market Commentary ..
After a five-day rout, investors may feel adventurous this morning as the Indian market could see a much-needed relief rally. World markets, especially in the US, have ignored the political turmoil in Egypt with the Dow breaching 12,000. Other global markets have also been stable to positive amid growing optimism about the ongoing recovery in the US and elsewhere.
Unfortunately, the Indian market hasn’t benefited from the global rally in recent times. On the contrary, India has lost quite a bit of ground, with the key indices dropping below 200-DMA. Inflation has been the biggest bugbear for India, along with policy paralysis. FIIs have latched on to some of these negatives to pull out $1bn in January.
All eyes will be on the forthcoming Union Budget. There have been mere murmurs of a few bold steps being considered for the Budget. If that does happen we might see some semblance of recovery. But, more importantly inflation has to soften and the Government must act on crucial reforms.
Unfortunately, the Indian market hasn’t benefited from the global rally in recent times. On the contrary, India has lost quite a bit of ground, with the key indices dropping below 200-DMA. Inflation has been the biggest bugbear for India, along with policy paralysis. FIIs have latched on to some of these negatives to pull out $1bn in January.
All eyes will be on the forthcoming Union Budget. There have been mere murmurs of a few bold steps being considered for the Budget. If that does happen we might see some semblance of recovery. But, more importantly inflation has to soften and the Government must act on crucial reforms.
FPO shares of Tata Steel will come into the market from today.
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