Thursday, March 5, 2009

Market Voices 05-03-09

The market saw the lowest closing for the Sensex since November 2005. It was a bad day and the market slipped led by banking and oil and gas stocks. Sensex shut shop at 8197, down 248 points and Nifty at 2576, down 68 points from the previous close. CNX Midcap index was down 1.86% and BSE Smallcap index was down 1.81%. The market breadth was negative with advances at 254 against declines of 933 on the NSE. Top Nifty gainers included Sun Pharma, TCS and Hero Honda while losers included Ranbaxy, Suzlon and ICICI Bank.  

The banking space is in a strong downtrend, says Rajat Bose, technical analyst, on CNBC-TV18. ICICI Bank looks the worst, is headed lower to Rs 230, Axis Bank towards Rs 280 and HDFC Bank towards Rs 720, he adds.  

The market is looking very weak and even the October lows may not hold, feels Sudarshan Sukhani, technical analyst, on CNBC-TV18. Nifty could possibly go below 2000, he adds.  

The market is likely to see a negative opening if international cues are weak tomorrow, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Investors are generally reluctant to buy close to the weekend and so there is unlikely to be any buying interest tomorrow, he adds. Net net the market is likely to remain under pressure, he feels. 

It was a terrible day for the market that closed at the low point of the day. Sensex closed at 8185, down 261 points (provisional) and Nifty at 2576, down 68 points (provisional) from the previous close. CNX Midcap index was down 1.86% and BSE Smallcap index was down 1.77%. The market breadth was negative with advances at 268 against declines of 908 on the NSE.  

Sell Nifty March futures above 2620 with a stop loss of 2665, says stockmechanics.com, on CNBC Awaaz, as closing market strategy.  

Buy Hero Honda with a target of Rs 980 and stop loss of Rs 915, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy. 

Hold short positions for a target of 2540, says E Mathew, technical analyst, on CNBC-TV18, as closing market strategy. Fresh short positions should be taken only at 2620-2685, he adds. 

Book partial profits on Nifty shorts, says Anil Maghnani, technical analyst, on CNBC-TV18, as closing market strategy. Hold the rest for a Nifty target of 2500, he adds. 

The market is not showing any strength and its reaction to good news like the rate cut shows that breaking 2500 on Nifty is only a matter of time, says Ashwani Gujral, technical analyst, on CNBC-TV18. In the best case scenario, Nifty may hold 2500 only for a day or two, he adds. It is time to cover shorts, he feels.  

Nifty will find it difficult to sustain the strong support of 2500, says Rajat Bose, technical analyst, on CNBC TV18. In a pullback rally, Nifty may not be able to cross 2665, he adds. The October lows likely to be tested soon, he says.  

The Asian markets closed mixed, the European markets continue to trade weak. Our market is under pressure and looking bad. Sensex is trading at 8192, down 253 points and Nifty is at 2573, down 71 points from the previous close. CNX Midcap index is down 1.82% and BSE Smallcap index is down 1.97%. The market breadth is negative with advances at 242 against declines of 928 on the NSE. 

Sell GMR Infrastructure with a target of Rs 58 and stop loss of Rs 81, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 70, down 3.3% on the BSE.  

Buy Cairn India around Rs 145 for the long term, says Jagdish Thakkar, technical analyst, on Zee Business. The stock is currently trading at Rs 161, up 1.42% on the BSE.  

The government feels there is no need for CRR cut, says Ashok Chawla, secretary of the Department of economic Affairs, on NDTV Profit. More repo and reverse repo rate cut if the need is felt, he adds. BSE Bankex index is down 4.47%.  

Sharekhan maintains a buy call on Marico with a target of Rs 71, reports Zee Business. The stock is currently trading at Rs 59, up 2.24% on the BSE.  

The picture for the market will be clear only post elections, says Gul Tekchandani, investment strategist, on CNBC Awaaz. The market situation is likely to improve by the year end, he adds.  

The sentiment in the market is bad and confidence is low, says Sajiv Dhawan of JV Capital Services, on CNBC TV18. The strategy should be to sell on rally and sit on cash as cash is king, he feels.  

Short Nifty spot at current levels with a stop loss of 2680 and target of 2500, says Vijay Bhambwani, technical analyst, on CNBC TV18. If Nifty goes below 2500, one can go further short, he adds.  

The European markets have opened in the negative. Weak global cues are putting pressure on our market that is trading lower. There is selling in the pharma space that is dragging the market down. Sensex is trading at 8238, down 207 points and Nifty is at 2587, down 57 points from the previous close. CNX Midcap index is down 1.53% and BSE Smallcap index is down 1.38%. The market breadth is negative with advances at 255 against declines of 901 on the NSE. 

Motilal Oswal maintains a buy call on Indian Bank with a target of Rs 176, reports Zee Business. The stock is currently trading at Rs 76, down 3.78% on the BSE.  

Banks have the capacity to absorb lower interest rates, says SA Bhat, CMD of IOB, on NDTV Profit. Banks may not look at cutting rates till FY09 end, he feels. It can only cut rates once deposit rates come down, he adds. Indian Overseas Bank is currently trading at Rs 40, down 1.34% on the BSE. 

SMC Global maintains a buy call on Shree Renuka Sugars with a target of Rs 100 and stop loss of Rs 77, reports CNBC Awaaz. The stock is currently trading at Rs 81, down 1.15% on the BSE.  

Buy Jain Irrigation with a target of Rs 400-450 in 12 months, says PK Agarwal, market expert, on CNBC Awaaz. The stock is currently trading at Rs 339, up 0.89% on the BSE.  

CLSA maintains a buy call on DLF with a target of Rs 195, reports Zee Business. The stock is currently trading at Rs 144, down 2.67% on the BSE.  

Crnindia.com maintains a buy call on Cairn India with a target of Rs 168 and stop loss of Rs 154, reports CNBC Awaaz. The stock is currently trading at Rs 162, up 2.11% on the BSE. 

Buy IVRCL Infrastructure with a target of Rs 140 in 12 months, says Ashish Kapoor, CEO of Investshoppe, on CNBC Awaaz. The company has a strong order book of Rs 15,000 crore with two-thirds of the projects in water irrigation, he adds. The stock is currently trading at Rs 108, down 0.46% on the BSE.  

The Asian markets are trading mixed. The Indian market is drifting lower as the market gives the RBI rate cut a thumbs down. Sensex is trading at 8279, down 166 points and Nifty is at 2599, down 45 points from the previous close. CNX Midcap index is down 0.85% and BSE Smallcap index is down 0.74%. The market breadth is negative with advances at 375 against declines of 745 on the NSE. 

Hold JSW Steel with target of Rs 200-205, says Ashwani Gujral, technical analyst, on CNBC TV18. It has strong support at Rs 170, he adds. The stock is currently trading at Rs 179, up 0.6% on the BSE.  

Hold Sterlite Industries with stop loss of Rs 220-250, says E Mathew, technical analyst, on CNBC TV18. If it breaks Rs 220-225 level then it will go in free-fall, he adds. The stock is currently trading at Rs 250.50, up 2.1% on the BSE.  

Exit Mercator Lines on any rally, says Sharmila Joshi of Systematix Shares on CNBC Awaaz. There is not much future in this stock fundamentally, she adds. The stock is currently trading at Rs 25, up 1% on the BSE.  

Hold SBI and exit when it reaches its resistance at Rs 1025, says Kiran Jadhav, technical analyst, on NDTV Profit. It has support at Rs 911 breaking which it might go down to Rs 700, he adds. The stock is currently trading at Rs 945.45, down 1.3% on the BSE. 

Buy Shree Renuka Sugars on dips at Rs 72-75, says Ashwani Gujral, technical analyst, on CNBC TV18. It can go up to Rs 96 and then Rs 105, he adds. The stock is currently trading at Rs 81.90, down 1.2% on the BSE. 

Exit IVRCL Infra at current levels, says Kiran Jadhav, technical analyst, on NDTV Profit. It has resistance at Rs 128 and support at Rs 98 breaking which it might go down to Rs 60-70, he adds. The stock is currently trading at Rs 108.10, down 0.8% on the BSE.  

Buy Sesa Goa with target of Rs 92, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 70, he adds. The stock is currently trading at Rs 76.30, up 0.3% on the BSE.  

Only traders may buy JP Associates at Rs 60 with target of Rs 80, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 55, he adds. Investors should stay away, he says. The stock is currently trading at Rs 63.05, down 3.6% on the BSE.  

The market at noon continues to trade flat and weak, despite inflation figures being announced at its lowest level since 2002. Sensex is trading at 8239, down 206 points from its previous close, and Nifty is at 2591, down 53 points. CNX Midcap index is down 0.8% and BSE Smallcap index is down 0.4%. The market breadth is negative with advances at 368 against declines of 714 on the NSE.  

Inflation figure for week ended February 21 has been declared at 3.03% versus the last week's figure of 3.36%, reports NDTV Profit. Inflation is at its lowest level since 2002, it adds. 

Hold Axis Bank which has good fundamentals, says PK Agarwal of Bonanza Portfolio, on Zee Business. It will recover soon, he adds. The stock is currently trading at Rs 317, down 1.7% on the BSE. 

Hold ICICI Bank, says Sharmila Joshi of Systematix Shares on CNBC Awaaz. It will not go down any further, she adds. The stock is currently trading at Rs 279.10, down 1.8% on the BSE. 

Buy Nagarjuna Fertilisers and Chambal Fertilisers at lower levels, says Hemant Thukral of Asian Market Securities on CNBC TV18. There is fresh move in these stocks and they are safe to enter, he adds. The stocks are currently trading at Rs 14.25, down 0.4%, and Rs 35, down 0.7%, on the BSE respectively. 

Buy Jindal Steel with target of Rs 1100-1140, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1020, down 1% on the BSE. 

Buy DLF only with a strict stop loss of Rs 140, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. Keep target of Rs 170-175, he adds. The chart for the stock is weak for both medium and long term so stop loss should be maintained, he says. The stock is currently trading at Rs 150.55, up 1.8% on the BSE.  

Buy Maruti at Rs 683 with target of Rs 698, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 671, she adds. The stock is currently trading at Rs 680.15, down 0.1% on the BSE. 

Sell Koutons at current levels, says Pankaj Jain of Satguru Capital on CNBC Awaaz. It is a weak stock and will fall further, he adds. The stock is currently trading at Rs 381.75, down 2.6% on the BSE.  

An hour into opening, the Indian market is choppy although the global markets rally. The market sees selling pressure and is at its lowest point of the day yet. Sensex is trading at 8352, down 94 points from its previous close, and Nifty is at 2619, down 25 points. CNX Midcap index is up 0.3% and BSE Smallcap index is up 0.2%. 

Impact of rate cuts taking a long time to come through, says Jim Walker of Asianomics on CNBC TV18. He expects India's GDP growth at 3-5% will be better than most of Asia. He thinks that 2009 will a difficult year globally but India will be stable.  

Traders may buy RIL with target of Rs 1240-1250, Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 1190-1195, he adds. The stock is currently trading at Rs 1198.50, down 1% on the BSE. 

Buy United Spirits at Rs 570 with target of Rs 589, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 562, she adds. The stock is currently trading at Rs 580.60, up 1.7% on the BSE.  

Sell Ranbaxy on rally at around Rs 175-180, Anil Singhvi, market expert, on CNBC Awaaz. The stock is currently trading at Rs 153.65, down 3.5% on the BSE. 

Buy ACC at Rs 539 with target of Rs 554, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 530, she adds. The stock is currently trading at Rs 545.60, up 1% on the BSE.  

Goldman Sachs has put out a sell call on ONGC with target of Rs 574, reports CNBC TV18. The reason given for this is that the Indian Government as promoters of ONGC has withdrawn $20 billion from the company without consulting the minority shareholders. The stock is currently at Rs 647.50, down 0.3% on the BSE.  

Go long on HDFC with stop loss of Rs 1115, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1143.20, down 4.85 on the BSE.  

Buy ICICI Bank for small gains with target of Rs 300, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 280, he adds. The stock is currently trading at Rs 289.90, down 2.2% on the BSE.  

The market opens up on a surprisingly quiet note. It is not exactly a great start to trade today, despite the rate cuts announced by the RBI. Also disappointing since the global cues were positive. The breadth is however positive. Sensex is trading at 8460, up 14 points from its previous close, and Nifty is at 2650, up 4 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 0.5%. The market breadth is positive with advances at 322 against declines of 107 on the NSE.  

If Nifty can go up to 2740-2750 in a day then average and create more short positions, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. At 2500 levels one can do partial profit-booking, he adds.  

Market may have a positive opening today, says Ashwani Gujral, technical analyst, on CNBC TV18. He sees supports for Nifty at 2600 and resistance at 2700-2750. He feels that Nifty may trade in a range and remain sideways and so advises traders to go long near support for quick intra-day gains.  

RBI's rate cuts were in line with expectations, says Deepak Chhabria of Collins Stewart on CNBC TV18. He thinks that the market may bounce on positive global cues and the Nifty may not go below 2,500 in the near term. The market is likely to consolidate in a range for the next few months, he adds, saying it is a good time to build a portfolio with a two-year perspective.  

The sentiment in the market has turned neutral from negative, says VK Sharma of Anagram Stock Broking on CNBC TV18. He advises avoiding going short on Nifty till 2,600 is breached as a lot of Put writing is visible around that level. He sees major resistance for Nifty at 2,880 and feels that banks and realty stocks are likely to see some short covering. 

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