Sunday, July 12, 2009

Brokerage Recommendations 7 July 2009

It was a volatile session for the market (post budget selloff) that saw rangebound trade and then a pullback towards close. Sensex shut shop at 14170, up 127 points and Nifty was at 4202, up 36 points from the previous close. CNX Midcap index was up 0.99% and BSE Smallcap index was down 0.33%. The market breadth was negative with advances at 499 against declines of 735 on the NSE. Top Nifty gainers included ITC, Hero Honda and ACC while losers were PNB, Ranbaxy and SAIL.

Nifty rallied from 2500-4700 so a 50% pullback was expected, says Sudarshan Sukhani, technical analyst, on CNBC TV18. The market continues to look weak and is likely to trend lower, he says. Nifty is headed to 3800-3600 levels now, he adds.

Sell RIL with a target of Rs 1785 and stop loss of Rs 1890, says Rahul Mohindar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1855, down 2.02% on the BSE.

Buy IVRCL Infra with a target of Rs 370 and stop loss of Rs 324, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 360, up 9.4% on the BSE.

The market consolidated on low volumes post budget selloff and closed in the positive. Sensex closed at 14168, up 125 points (provisional) and Nifty was at 4203, up 37 points (provisional) from the previous close. CNX Midcap index was up 1.12% and BSE Smallcap index was down 0.20%. The market breadth was negative with advances at 535 against declines of 700 on the NSE.

Sell JP Hydro with a target of Rs 75 and stop loss of Rs 92.50, reports globecapital.com, on CNBC Awaaz, as closing market strategy.

Buy Nifty 4200 put with target 250 and stop loss 100, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

After yesterday's fall market is seeing some bounceback and now could consolidate for a few days, says Ambareesh Baliga of Karvy Stock Broking, on CNBC Awaaz. But there is still weakness and market could head lower to Nifty 4100 and then 3800 levels in a week to 10 days, he adds.

The market is seeing some recovery and trading in the positive. Sensex is trading at 14168, up 125 points and Nifty is at 4200, up 35 points from the previous close. CNX Midcap index is up 0.86% and BSE Smallcap index is down 0.46%. The market breadth is negative with advances at 499 against declines of 717 on the NSE.

In an F&O Call, sell Nifty with a target of 3900 and stop loss of 4280, says Hardik Jain, technical analyst, on CNBC Awaaz. There are no triggers to take the market up, he adds.

In an F&O call, sell Nifty with a target of 4090 and stop loss of 4250, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. The market is likely to be in a range of 4305-4070 for some time, he adds.

In an F&O Call, buy Nifty with a target of 4260 and stop loss of 4180, says Nishant Jain of Tradeswift on CNBC Awaaz. This is a call for the next day or two, he adds. After yesterday's call now a bounceback is possible, he feels.

Buy Mahindra Lifespace with a target of Rs 419, says Dipan Mehta, market expert, on Zee Business. The stock is currently trading at Rs 264, up 1.6% on the BSE. » Send to friends

2:47 PM - ICICI Securities maintains buy on ITC with a target of Rs 238, reports CNBC Awaaz. The stock is currently trading at Rs 212, up 7.23% on the BSE.

Hold Hotel Leela with stop loss of Rs 30, says PK Agarwal of Purpleline Investment on Zee Business. And exit on any rally, he adds. The stock is currently trading at Rs 30.30, up 0.66% on the BSE.

Sharekhan maintains a buy call on JP Associates with a target of Rs 237 in one year, reports CNBC Awaaz. The stock is currently trading at Rs 204, up 6.6% on the BSE.

Hold HUL with target of Rs 305, says Ashwani Gujral, technical analyst, on CNBC TV18. It has resistance at Rs 280, he adds. The stock is currently trading at Rs 274, down 0.36% on the BSE.

Citi maintains a buy call on JSW Steel with a target of Rs 756 in one year, reports CNBC Awaaz. The stock is currently trading at Rs 562, down 2.45% on the BSE.

Sharekhan maintains a buy call on Shiv Vani Oil with a target of Rs 420, reports Zee Business. The stock is currently trading at Rs 278, up 3.7% on the BSE.

KR Choksey maintains a buy call on DLF with a one-week target of Rs 328, reports CNBC Awaaz. The stock is currently trading at Rs 302, down 2% on the BSE.

Hold Essar Oil for long term with stop loss of Rs 125, says PK Agarwal of Purpleline Investment on Zee Business. Short-term investors should exit the stock, he adds. The stock is currently trading at Rs 139.40, down 3.2% on the BSE.

Buy Reliance Infrastructure only after 10-15% correction in the stock price, says DD Sharma of Anand Rathi Securities on NDTV Profit. The stock is currently trading at Rs 1150.50, up 1.7% on the BSE.

Book part profits in Gail at Rs 340, says Neera Jain, technical analyst, on NDTV Profit. Hold rest with stop loss below Rs 300 on closing basis, she adds. It is currently trading at Rs 328, up 4.7% on the BSE.

Hold NTPC for long term because it is a strong stock, says PK Agarwal of Purpleline Investment on Zee Business. Keep stop loss of Rs 180, he adds. The stock is currently trading at Rs 191.90, down 1.1% on the BSE.

A status quo budget caused the market to sell-off, but the fall may have been overdone, says R Sukumar of Franklin Templeton Equity on CNBC TV18. He thinks that a lack of announcement on FDI or disinvestment was not liked. A bounce-back from here on could be led by infrastructure, IT and manufacturing, he adds.

Hold Reliance Infrastructure with target of Rs 1300, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss of Rs 1130, she adds. But she advises against fresh investment in the stock. It is currently trading at Rs 1152, up 1.9% on the BSE.

Buy BHEL, L&T, SBI, RIL and Infosys, says Rajat Bose, technical analyst, on CNBC TV18. The reason for this, he adds, is that the budget is a Rs 10 lakh crore expenditure budget. He believes that the budget is investment-oriented, tax exemption in nature which will benefit companies like RIL.

Hold ICICI Bank with target of Rs 800-900 in 6-12 months, says DD Sharma of Anand Rathi Securities on NDTV Profit. Add more at Rs 600, he adds. The stock is currently trading at Rs 695.05, up 2.5% on the BSE.

Hold GSPL with stop loss of Rs 45, says PK Agarwal of Purpleline Investment on Zee Business. It has resistance at Rs 55 and is fundamentally sound, he adds. The stock is currently trading at Rs 53.35, up 6.1% on the BSE.

Supreme Court has issued notices to RIL and RNRL on the gas pricing issue, reports NDTV Profit. Next hearing will be held on July 20, it adds.

Hold Lanco Infra with stop loss of Rs 310, says Simi Bhaumik, technical analyst, on Zee Business. If it breaks this level then it will go down to Rs 260, she adds. The stock is currently trading at Rs 348.50, up 1.3% on the BSE.

The Nifty support at 4090 is key and a break below this would negate its bullish structure, says Laurence Balanco of CLSA on CNBC TV18. Below 4090, the Nifty has support at 3700-3723, he adds. On the upside, he believes that the first resistance is expected at 4447.

Hold RNRL with target of Rs 100 in 3-4 months, says PK Agarwal of Purpleline Investment on Zee Business. It has support at Rs 70, he adds. The stock is currently trading at Rs 78.30, down 1.1% on the BSE.

Buy L&T, ICICI Bank, IVRCL and Nagarjuna Constructions, says Dipan Mehta, member BSE, on Zee Business. This is the right time to invest in these stocks, he adds.

The market had been waiting for a correction and the budget merely happened to be a trigger, says PK Agarwal of Purpleline Investment on Zee Business. He believes that the Nifty could go down below 4000 levels and adds that the levels it had attained earlier were not sustainable.

Hold JP Hydro with stop loss of Rs 79, says Simi Bhaumik, technical analyst, on Zee Business. If it breaks this level then it will go down to Rs 72, 68 and then 61, she adds. The stock is currently trading at Rs 83.75, down 1.1% on the BSE.

Buy Ranbaxy with target of Rs 290, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 245, he adds. The stock is currently trading at Rs 261.70, up 0.4% on the BSE.

An hour into opening, the market is now trading stable, appearing to gain grounds. Sensex is trading at 14219, up 176 points from its previous close, and Nifty is at 4217, up 51 points. CNX Midcap index is up 0.7% and BSE Smallcap index is down 0.5%. The market breadth is negative with advances at 398 against declines of 717 on the NSE.

Hold ICICI Bank with stop loss of Rs 650, says Simi Bhaumik, technical analyst, on Zee Business. Exit if it breaks this level because then it will go down to Rs 570, she adds. The stock is currently trading at Rs 708.40, up 4.5% on the BSE.

Buy Shree Renuka Sugars, Balrampur Chini, GMR Infra and Punj Lloyd, says SP Tulsian, investment advisor, on CNBC TV18. He is bullish on infrastructure and sugar stocks.

Hold ITC with target of Rs 225, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 188 and resistance at Rs 210, he adds. The stock is currently trading at Rs 209.50, up 6% on the BSE.

Hold SBI with stop loss of Rs 1590, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 1634, down 1.3% on the BSE.

The Indian budget was creating unnecessary expectation and actually was a non-event for the market, says Ashu Madan of Religare on CNBC Awaaz. But now that it is over, the market will settle down and follow global cues.

Hold RNRL with target of Rs 82, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 77, she adds. There is downside possible in this counter, she says. The stock is currently trading at Rs 79.60, up 0.6% on the BSE.

Go short on Aban Offshore with target of Rs 610, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 900, he adds. The stock is currently trading at Rs 796.55, down 1.4% on the BSE.

Buy NTPC for day trade, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It has support at Rs 190, he adds. The stock is currently trading at Rs 195.70, up 0.9% on the BSE.

The day after the important budget, the market opens on a reasonably positive note today afer a dismal close yesterday. Global cues are flat with US closing mixed and Asia trading firm. Sensex is trading at 14177, up 134 points from its previous close, and Nifty is at 4209, up 43 points. CNX Midcap index is up 1% and BSE Smallcap index is up 0.3%. The market breadth is positive with advances at 383 against declines of 145 on the NSE.

Sell Aban Offshore at Rs 808 with target of Rs 754, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 816, she adds. The stock is at Rs 807.85, down 8.9% on the BSE.

After yesterday's fall, the market may open on a positive note today, says Gaurang Shah of Geojit BNP Paribas on Zee Business. He expects to see buying in capital goods and infrastructure stocks today.

Sell ACC at Rs 723 with target of Rs 708, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 737, she adds. The stock is at Rs 723.80, down 5.6% on the BSE.

The Nifty may break below 4000 levels and then see a decline of 40-50 points, says Sudarshan Sukhani, technical analyst, on CNBC TV18. He advises buying on all dips and selling above 4200 levels.

In a reactionary bounce-back Nifty may test levels of 4250-4300 today, says Ashwani Gujral, technical analyst, on CNBC TV18. But he feels that in the medium term, we are heading to 3800-3870. He advises selling on rallies.