Sunday, July 26, 2009

BSE / NSE Share Market Voices 15 July 2009

Market Voices

With strong global markets aiding them no end, the bulls called the shots and drove stock prices up sharply for the second successive session today.

Stocks cutting across sectors and size moved higher on sustained buying support. Expectations of more rains during the current monsoon and hopes of an economic revival kept investors busy right through the session.

The Sensex, which moved past the 14,000 mark in style, ended at 14,253.24 (provisional) with a massive gain of 399.54 points or 2.88%. It touched a high of 14,299.54 today. The Nifty closed at 4245.25, near the day's high of 4249.55, with a gain of 133.85 points or 3.26%.

Realty, metal, power, capital goods and PSU stocks sparkled. Oil, auto, bank, consumer durables and pharma stocks too had a nice ride up the charts. FMCG stocks rallied in late trades while IT stocks remained somewhat subdued today.

Midcap and smallcap stocks had another splendid session. The market breadth was pretty strong today.

Hindalco, JP Associates, DLF, Hero Honda, BHEL, Tata Steel, Tata Motors, RComm, Reliance Infra, L&T, Tata Power and Sterlite gained 4% - 8.5%. RIL, TCS, ONGC, Sun Pharma, Wipro, HDFC, SBI and ICICI Bank also closed on a high note.

Realty stocks have flared up today. Though a further upmove in some of the stocks in the realty space is not ruled out, one has to stay cautious with regard to fresh exposure to these stocks. Those running in profits would do well to book some at rallies rather than building up further positions.

Stocks of realty firms with a proven track record can be picked up in small quantities at sharp falls.

Aban Offshore (Rs 814) looks headed for further upmove. One willing to take some chances can buy the stock now. Others can look at buying the scrip at dips.

Investors looking at medium to long term can try infrastrutructure stocks. Reliance Infra, Reliance Industrial Infra, GMR Infrastructure, IVRCL Infrastructure and Gammon can be tried at falls.

Infosys Technologies (Rs 1777) is likely to edge higher this afternoon. If the current momentum at the counter sustains for a while, a rise to Rs 1795 - 1800 looks very likely. A fall to Rs 1765 could result in a slide to 1755 or even lower.

IDBI Bank has posted a net profit of Rs 171.83 crore for the quarter ended June 30, 2009 as compared to Rs 159.76 crore for the quarter ended June 30, 2008. The bank's total income increased from Rs 2756.15 crore for the quarter ended June 30, 2008 to Rs 4218.91 crore for the quarter ended June 30, 2009.

The stock has spurted following the announcement of results. At Rs 101.60, it is up by nearly 7.5% at present. One holding the stock can stay invested and buy more at dips.

It is better to have a stock specific approach during the reporting season. Though the market has taken global cues and surged higher today, one will have to stay extremely cautious ahead of announcement of results. Bad results can send a stock tumbling down sharply even if the broad market remains highly bullish.

Realty stocks are moving up sharply today. Besides bargain hunting after recent losses, expectations of a rise in demand for homes appear to be driving these stocks up north today. Still, considering the possibility of some strong rounds of correction in the near run, one would do well to lighten commitments at higher levels.

Investors with some appetite for risk can try IFCI (cmp Rs 43.85) at declines. The stock can rise to Rs 55 - 57 over a short run. However, it is advisable to have a strict stop loss in place.

One can go in for capital goods stocks Thermax, ABB, BEML and Bharat Electronics for solid gains over a medium term. L&T and BHEL can be picked up at declines in a staggered way.

3i Infotech has entered into an Agreement with Yucheng Technologies Ltd to acquire the 49% stake from Yucheng in order to make Elegon Technologies Ltd a wholly owned subsidiary of the Company in China.
The 3i Infotech stock is trading nearly 5% up at Rs 72.35 now. One holding the stock with a long term view can stay invested for now.

The stock has come a long way from a low of Rs 25 it had touched in early March this year. Though a fall to those levels is unlikely, a few weak spells could push the stock down to around Rs 60 in the near term.

HDFC Bank (Rs 1348) can be tried for intra-day if it makes a breakout at Rs 1360. The stock can then move on to 1377 - 1380 or even higher.
A stop loss can be placed near Rs 1340.

PSU stocks are likely to remain in focus as the government will be going in for some stake sale in MMTC, Hindustan Copper and NMDC among others. Though a sustained upmove looks unlikely, a few sharp rallies look very much on the cards for stocks in the PSU space.

Ashapura Minechem Ltd has informed that Ashapura Minechem (UAE) FZE, the wholly Owned Subsidiary of the Company in UAE, that it has divested its entire shareholding and consequently withdrawn from 'Ashapura Zawawi Minerals LLC' a Joint Venture Company incorporated in the Sultanate of Oman. Hence, Ashapura Minechem (UAE) FZE is no longer associated with the said Joint Venture in Oman nor the Joint Venture Partners - M/s. Alawi Enterprises LLC.

Suzlon Energy (Rs 93) can move on to Rs 135 - 140 if it rises to Rs 105 and displays strength for a few sessions. The stock will find support around Rs 80 and short term investors can hold the stock with a stop loss near that level.

Reliance Power has announced that it has achieved financial closure for its prestigious 1,200 MW Rosa power project in Uttar Pradesh. The stock is up nearly 3% at Rs 156 now. A further upmove looks very likely in the short run. One can hold the stock and look at increasing exposure at dips.

Power Finance Corporation has posted a net profit of Rs 5549.145 million for the quarter ended June 30, 2009 as compared to Rs 2962.971 million for the quarter ended June 30, 2008. The stock is up by around a per cent at Rs 206.65. One holding the stock can stay invested for solid returns over a medium to long run. More quantities can be added at declines.

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