Friday, May 8, 2009

BSE / NSE Shares analysis for 08-05-09

BSE / NSE Shares analysis for 08-05-09

The market spent the major part of the session in the red and finished with sharp losses today.  Global cues were a bit negative to start with. Though Asian markets recovered, investors back home were keen on booking profits in afternoon trade. 
The Sensex ended at 11,878.12 (provisional) with a big loss of 238.82 points or 1.97%.

Bank, metal, IT and power stocks went down sharply.  Realty, pharma and oil stocks too ended on a weak note.  The Nifty closed at 3619.20, down 64.70 points or 1.76%.  Wipro, ICICI Bank, Sterlite, Reliance Infra, M&M, HDFC and Tata Steel closed with sharp losses.  BHEL, RComm, ACC, SBI, HDFC Bank, Infosys, Hindalco, Maruti, RIL and Bharti Airtel also closed weak. 
The market breadth was neutral at close

Investors willing to wait patiently for good returns can buy NTPC, Power Grid, NLC and Areva in a staggered manner.  All these stocks are likely to see some downside in the near run and one can treat them as opportunities to buy.

UCO Bank has reported strong results for the January - March 2009 quarter.  It has posted a net profit of Rs 102.56 crore for the quarter ended 31 March 2009.  The bank had posted a net profit of Rs 85.99 crore for the corresponding quarter last year.
The stock, up 3.4% at Rs 32, can give good returns over a medium term. One can try it around current levels and buy more at declines.

Metal stocks, which had moved up sharply over the past few sessions, have turned weak today.  Besides profit taking, weak metal prices in London Metal Exchange triggered a sell-off in the metal space today.  One holding quality metal stocks with a long term view, need not worry about this fall. Stay invested and look at picking up these stocks at dips.

GE Shipping's net profit for the quarter ended 31 March 2009 declined to Rs 250.05 crore from a net profit of Rs 299.41 crore the company had recorded for the quarter ended March 31, 2008.  Total income decreased from Rs 824.34 crore for the quarter ended March 31, 2008 to Rs 622.41 crore for the quarter ended March 31, 2009.  The stock has slipped by over 5% to Rs 228 now and further weakness is not ruled out in the near run.

Exide Industries (Rs 51) can be retained for long term.  The stock is likely to see some weakness in the near run but investors with a long term view can use that to increase exposure to the stock.  For now, a stop loss can be placed near Rs 35.  Late last month, the Company reported a net profit after tax of Rs 68.20 crore for the quarter ended March 31, 2009 as compared to Rs 62.82 crore for the quarter ended March 31, 2008.

Andhra Bank has posted a net profit of Rs 201.21 crore for the quarter ended March 31, 2009 as compared to Rs 124.25 crore for the quarter ended March 31, 2008.  Total Income has increased from Rs 1342.95 crore for the quarter ended March 31, 2008 to Rs 1827.10 crore for the quarter ended March 31, 2009.  The stock (Rs 63) looks good for long term. Even over a short run, one can expect fairly solid returns from this stock.

Videocon Industries (Rs 123) is near a crucial resistance level now.  The stock will have to decisively move past Rs 130 to make a further upmove. It will then face some resistance near Rs 155.  Long term investors can hold the stock with a stop loss near Rs 90.

There are some strong signs that global economy is slowly inching its way up.  But then, it will another 3 - 4 quarters for recovery to gather significant momentum.  Till then, the market is likely to move sideways with some strong rallies and corrections.

Sugars stocks Bajaj Hindustan, Bannari Amman Sugars, Balrampur Chini, Renuka Sugars and Triveni Engineering can be picked up at declines.  These stocks may find the going a bit tough in the near run, but one willing to wait patiently for about 6 - 9 months, an expect fairly solid returns from these stocks.

12:10 PM: India's inflation inched up to 0.70% for the week ended April 25, 2009.

The index had moved up to 0.57 per cent for the week ended April 18, from 0.26 cent the week before.

Hindalco (cmp Rs 69) can move up sharply over the next 6 - 9 months.  One holding the stock can stay invested and look at buying more at sharp declines from here.  Long term investors can have a stop loss at Rs 37.

SAIL is a good stock to own.  The stock, traded at Rs 127 now, can move on to Rs 145 - 150 where it is likely to find some strong resistance.  Short term traders can book profits there and re-enter the counter later at declines.

After some early weakness, a few Asian markets have edged higher as there are no negative surprises from the US stress test results.  Still, most of the Asian markets are seen struggling to make a significant headway with investor choosing to wait for clear signals to emerge.  The mood back home is also quite cautious this morning. Inflation numbers and the trend in European markets may give some direction for afternoon trade.

One looking at long term can go in for telecom stocks.  Bharti Airtel, RComm and Tata Communications can be picked up in a staggered way at declines.  Idea Cellular looks good even at current levels. Still, with the market having run up quite sharply over the past couple of months, one would do well to restrict fresh buying to modest levels for now.

With crude oil prices surging higher, one can look at buying ONGC and Cairn India for some decent gains over a short run.
Investors holding the stock with a long term view can increase exposure at every sharp decline.  Though a sharp upmove looks likely in the near term, one would do well to have proper stop loss triggers in place.

Investors holding Tata Steel (cmp Rs 296) can stay invested in the stock with a stop loss near Rs 230.  The stock is not likely to see a significant fall from here. One with a good appetite for risk can try this stock around Rs 260 - 270 for short term.



Compiled and Brought to you by 

Equity Research Team

Intelligent Investor -
Invest Advisory Arm of

Ravina Consulting
Bangalore India

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