Tuesday, February 24, 2009

BSE / NSE Market Voices 23-02-09

Tuesday, 24 February 

It was a tough day for our market that outperformed its global peers and closed flat. Asian markets closed negative while European markets continued to trade weak. Our market had a choppy start, saw a short covering rally, then a downgrade by S&P on the ratings and indirect tax cuts that helped it recover at close. Sensex shut shop at 8822, down 21 points and Nifty at 2733, down 2 points from the previous close. CNX Midcap index was down 1.88% and BSE Smallcap index was down 1.41%. The market breadth was negative with advances at 315 against declines of 883 on the NSE. Top Nifty gainers included Power Grid, Mahindra & Mahindra and Ranbaxy while losers included HDFC, PNB and Tata Steel.  

Buy Power Grid with a target of Rs 94 after which it can go to Rs 104 where one can book profits, says E Mathew, technical analyst, on CNBC Awaaz. Maintian a stop loss of Rs 84, he adds. The stock is currently trading at Rs 91, up 6.5% on the BSE. 

Stay cautious at higher levels and watch the Dow, if it breaks 7100 decisively, then Nifty too shall see a breakdown, says E Mathew, technical analyst, on CNBC Awaaz. View all rallies as short coverings, he says. Nifty needs to close above 2840-2850 for one to say that the worst is over, he adds.  

Crucial Nifty level is 2630, if that breaks then it could go down further by another 150-200 points, says Deven Choksey of KR Choksey, on CNBC Awaaz. On the Sensex, if it closes below 8600 then we are headed for lower levels, he adds. Book profits in ever rally, he advises.  

The market closed flat today masking a turbulent day. Sensex closed at 8828, down 14 points (provisional) and Nifty at 2731, down 5 points (provisional) from the previous close. CNX Midcap index was down 2.07% and BSE Smallcap index was down 1.43%. The market breadth was negative with advances at 340 against declines of 857 on the NSE.

Buy Mahindra & Mahindra with a target of Rs 302 and stop loss of Rs 277, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 293, up 4.1% on the BSE.  

We are in an intermediate downtrend, in our market and globally, says Sudarshan Sukhani, technical analyst, on CNBC-TV18. No significant attachment should be made to any pullback rallies, he feels. We are now clearly heading lower, he adds.  

This is the stimulus package that did not happen during the interim budget and vote on account time, says Rajesh Jain of Pranav Securities, on CNBC TV18. The cut in the service tax is expected to provide a fillup to the service sector space, he feels. The reduction in excise duty on cement is a move to help spur the infrastructure space, he adds.  

The Indian market has seen a slight recovery after some tax cut announcements from the finance minister. Sensex is trading at 8816, down 26 points and Nifty is at 2733, down 3 points from the previous close. CNX Midcap index is down 1.67% and BSE Smallcap index is down 1.36%. The market breadth is negative with advances at 305 against declines of 878 on the NSE.  

The government to cut service tax by 2%, to reduce it down to 10%, says Finance Minister Pranab Mukherjee on CNBC TV18. The government also cuts excise duty on bulk cement to 8% or Rs 290/tonne, he says. The 8% excise duty cut applicable beyond March 31. Cement stocks react positively to the news and are trading higher, ACC (up 1.5%), Grasim (up 4%) and Ultratech Cements (up 2.3%) on the BSE. 

Hold Suzlon with a target of Rs 48-55 where one can exit the stock and maintain a stop loss of Rs 36, says Salil Sharma of Kapoor & Sharma Company, on Zee Business. The stock is currently trading at Rs 40, down 2.42% on the BSE.  

Buy Cairn India with a target of Rs 163 and stop loss of Rs 151, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 154, up 1.87% on the BSE.  

HEM Securities maintains a sell call on JSW Steel with a target of Rs 170 and stop loss of Rs 208, reports CNBC Awaaz. The stock is currently trading at Rs 187, down 4.74% on the BSE.  

S&P revises outlook on India to negative from stable, reports CNBC TV18. S&P affirms BBB- rating on India. Expect FY09 fiscal deficit to increase to 11.4% from 5.7%. Fiscal deficit is expected to remain high at 11.1% in FY10. Fiscal deficit is likely to widen if next government announces another stimulus package. 

This is the second phase of the bear market with low volumes and low volatility, says Ashwani Gujral, technical analyst, on CNBC TV18. Midcaps and smallcaps have been beaten out of shape and Nifty range is 2680-2800, he says. If the Dow breaks down, the Indian market will go with the global weakness and go down to 2500-2600 Nifty levels, he adds. This is a trader's market with buy on dips and sell on rally, he says.  

The downside in the market is limited while the upside seems capped at 3000 for Nifty, says Kavi Kumar, market expert, on CNBC Awaaz. This is a buy on dips (around Nifty levels of 2500-2600) market for trading, he adds.  

The European markets have opened weak. The Indian market has seen a slight recovery from the morning's lows. Sensex is trading at 8763, down 79 points and Nifty is at 2721, down 15 points from the previous close. CNX Midcap index is down 1.33% and BSE Smallcap index is down 1.46%. The market breadth is negative with advances at 283 against declines of 891 on the NSE.  

Sell IDBI Bank and switch to better banking stocks to save one's capital like BoB and SBI, says Salil Sharma of Kapoor & Sharma Company, on Zee Business. The stock is currently trading at Rs 49, down 0.60% on the BSE.  

HEM Securities maintains a sell call on Reliance Capital with a target of Rs 332 and stop loss of Rs 380, reports CNBC Awaaz. The stock is currently trading at Rs 374, up 0.92% on the BSE. 

Hold Balrampur Chini with a target of Rs 58-70 where one can book partial profits and maintain a stop loss of Rs 46, says Salil Sharma of Kapoor & Sharma Company, on Zee Business. The stock is currently trading at Rs 49, down 6.9% on the BSE. 

I-Securities maintains hold on TCS with a target of Rs 545, reports CNBC TV18. The stock is currently trading at Rs 470, down 0.83% on the BSE.  

Hold Punj Lloyd with a target of Rs 110-115 where one can exit the stock and maintain a stop loss of Rs 82, says Salil Sharma of Kapoor & Sharma Company, on Zee Business. The stock is currently trading at Rs 83, down 1.65% on the BSE. 

 Hold Corporation Bank with a target of Rs 310 in 18-24 months, says Vaibhav Agarwal of Angel Broking, on CNBC Awaaz. The stock is currently trading at Rs 167, down 1.74% on the BSE.  

The Asian markets are seeing a sell off. It's a global rout. The Indian market is also trading weak. Sensex is trading at 8762, down 80 points and Nifty is at 2719, down 16 points from the previous close. CNX Midcap index is down 1.49% and BSE BSE Smallcap index is down 1.62%. The market breadth is negative with advances at 258 against declines of 888 on the NSE.  

Hold Kingfisher Airlines with target of Rs 45-48, says Satish Kannav, technical analyst, on NDTV Profit. It has support at Rs 30 and resistance at Rs 37-38, he adds. The stock is currently trading at Rs 31.20, down 2.2% on the BSE.  

Buy NTPC at around Rs 164-166 for two years, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. It might go up to Rs 195 and then even test Rs 210 levels, he adds. The stock is currently trading at Rs 178.40, up 0.3% on the BSE. 

Buy ABB at around Rs 365, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of 10%, he adds. It can go up to Rs 450-460, he says. The stock is currently trading at Rs 387.60, down 3.2% on the BSE.  

Go long in Bajaj Auto with target of Rs 650, says Satish Kannav, technical analyst, on NDTV Profit. It is expected to see a bounce-back when the market rallies, he adds. The stock is currently trading at Rs 491, down 1.8% on the BSE.  

Hold Ceat with stop loss of Rs 30, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. If it breaks the Rs 35 level then it might go up to Rs 40-45, he adds. The stock is currently trading at Rs 33.65, down 1.6% on the BSE.  

Buy Suzlon Energy with target of Rs 55, says Satish Kannav, technical analyst, on NDTV Profit. It has support at Rs 36 and resistance at Rs 47, he adds. The stock is currently trading at Rs 40.25, down 2.7% on the BSE. 

Exit from Educomp Solutions, says PK Agarwal of Bonanza Portfolio on NDTV Profit. The market has no faith in this stock, he adds. The stock is currently trading at Rs 1609.50, down 9.2% on the BSE.  

Buy ICICI Bank only in staggered fashion and for long term, says Ashish Kapur of Invest Shoppe on CNBC Awaaz. Downside risk in this stock is still there and it will take time for it to bounce back, he adds. The stock is currently trading at Rs 327.80, down 2.5% on the BSE.  

At noon, a bit of strength is seen coming back into the market, with some kind of technical bounce-back in intra-day trade. Sensex is trading at 8692, down 150 points from its previous close, and Nifty is at 2697, down 39 points. CNX Midcap index is down 1.7% and BSE Smallcap index is down 1.8%. The market breadth continues to be strongly negative with advances at 217 against declines of 900 on the NSE.  

Buy SAIL at around Rs 65-70 with target of Rs 90-95, says Ashwani Gujral, technical analyst, on CNBC Awaaz. It is a strong stock, he adds. The stock is currently trading at Rs 75.65, down 4.7% on the BSE. 

Hold IDFC for two years, says Rajesh Tambe of Sunchan Securities on Zee Business. It is fundamentally a strong stock for long term, he adds. The stock is currently trading at Rs 53.20, down 1.5% on the BSE.  

Buy Tata Motors when it reaches Rs 110-115, says Rajesh Tambe of Sunchan Securities on Zee Business. It is fundamentally a strong stock but hold for long term, he adds. The stock is currently trading at Rs 131.25, down 1.9% on the BSE.  » Send to friends

11:35 AM - Buy Satyam at around Rs 40 with target of Rs 58-60, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 44.30, down 2.5% on the BSE.  

Dow's break below 7800 is significant and it can go down to 5300-5600 levels, says Daryl Guppy of guppytraders.com on CNBC TV18. Asian markets will follow Dow with export-driven countries being most vulnerable, he adds. On the Indian market, he says that downside break can take Sensex to 5000 and Nifty to 2000-2100 levels.  

Exit from ICICI Bank which may go down to Rs 275, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 323.30, down 3.7% on the BSE.  

Exit from Hexaware on rally, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. It may go down to Rs 20, he adds. The stock is currently trading at Rs 23.45, down 7% on the BSE.  » Send to friends

11:07 AM - An hour into opening, the market sees a build-up of selling pressure. Banking and realty sectors continue to do badly, down more than 3% each. The Asian markets appear to be faring worse, with China topping the list. Sensex is trading at 8656, down 187 points from its previous close, and Nifty is at 2690, down 46 points. CNX Midcap index is down 2% and BSE Smallcap index is down 1.9%. The market breadth is negative with advances at 173 against declines of 896 on the NSE.  

 Aggressive traders can sell Kingfisher Airlines with stop loss of Rs 32, says Anil Singhvi, market expert on CNBC Awaaz. The stock is currently trading at Rs 30.80, down 3.5% on the BSE. 

Buy SBI with target of Rs 1200-1250, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 950, he adds. It has support at Rs 1000-1030, he says. The stock is currently trading at Rs 1026, down 2% on the BSE.  

Exit from Axis Bank on rally, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. It is a weak stock and may go down to Rs 292-290, he adds. The stock is currently trading at Rs 360.25, down 3.5% on the BSE.  

Hold RNRL for long term, says MB Singh, technical analyst, on Zee Business. It has support at Rs 38, he adds. The stock is currently trading at Rs 42.25, down 3% on the BSE.  

Sell ICSA-India on rally at Rs 85 with strict stop loss, says Anil Singhvi, market expert on CNBC Awaaz. The stock is currently trading at Rs 73.65, down 4.4% on the BSE.  

Sell Tata Steel at Rs 168 with target of Rs 161, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 173, she adds. The stock is currently trading at Rs 162.60, down 3.2% on the BSE.  

Aggressive traders can buy Satyam for small profits with target of Rs 50, says Anil Singhvi, market expert on CNBC Awaaz. Keep strict stop loss of Rs 42-43, he adds. The stock is currently trading at Rs 44.05, down 3.1% on the BSE.  

Exit from Reliance Infrastructure which has 20% downside risk from current levels, says MB Singh, technical analyst, on Zee Business. It has support at Rs 470 breaking which it might go down to Rs 420 and then Rs 380, he adds. The stock is currently trading at Rs 473, down 3.7% on the BSE.  

The market opens on a weak note as expected, following negative global cues. Heavyweights like metals, realty and banking, are under pressure and bringing down the index. Sensex is trading at 8677, down 165 points from its previous close, and Nifty is at 2692, down 43 points. CNX Midcap index is down 1.5 % and BSE Smallcap index is down 1.7%. The market breadth is negative with advances at 66 against declines of 474 on the NSE.  

Sell L&T at Rs 621 with target of Rs 609, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 634, she adds. The stock is at Rs 622.50, down 2.8% on the BSE.  

The Nifty is below critical levels and with negative global cues, the immediate outlook is negative, says Sandeep Nayak of Kotak Securities on CNBC TV18. However, I expect the Nifty to expire at 2700-2750, he adds. He expects aggressive short rollovers in large cap stocks and the Nifty.  

Nifty has resistance at 2870 and the Sensex at 9360, says Anil Maghnani, technical analyst, on CNBC TV18. Every bounce should be seen as a shorting opportunity, he adds.  

Market will have a gap-down opening on account of weak global cues, says Ashwani Gujral, technical analyst, on CNBC TV18. Some volatility and short covering near the settlement day is expected, he adds.  » Send to friends

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