BSE NSE Indian Share Market Voices 27 July 2009
Notwithstanding a bright spell in the positive territory in morning trade, it was a flat close for the Indian stock market today as investors chose to tread a cautious path amid a slew of earnings reports.
Global markets were firm but investors back home appeared none too keen on building up positions ahead of the monetary policy statment of the Apex bank.
The Sensex ended the day at 15,367.47 (provisional) with a marginal loss of 11.49 points. In intra-day trades, the Sensex hit a high of 15,463 and a low of 15,228.
Select IT and capital goods moved higher. Midcap and smallcap stocks found good support. The market breadth was strong once again.
HUL, Tata Power, DLF, Tata Steel, Tata Motors, ITC, BHEL and RComm rallied sharply. Grasim, Bharti Airtel, NTPC and Infosys also closed on a firm note.
RIL fell on weak results and ended nearly 4% down.
ONGC, Hero Honda, M&M, ICICI Bank, HDFC and Hindalco also closed on a weak note.
Axis Bank, Jindal Steel, Suzlon, SAIL, Power Grid, HCL Technologies and PNB ended with notable gains.
GAIL, Idea Cellular, Ranbaxy and Tata Comm declined sharply.
Zee Entertainment Enterprises touched an intraday high of Rs 185.85 and an intraday low of Rs 174. At 2:31 pm, the share was quoting at Rs 176.40, down Rs 7.5, or 4.08%.
It was trading with volumes of 288,954 shares. On Friday the share closed down 0.03% or Rs 0.05 at Rs 183.90.
The market is likely to remain volatile over the next few sessions due to expiry of July series derivatives contracts.
With global economy showing signs of a revival, a fair amount of short covering is likely in the F&O segment over the next couple of sessions.
Short term traders can take advantage of rallies and book some profits.
Cipla touched an intraday high of Rs 289 and an intraday low of Rs 279.50. At 2:35 pm, the share was quoting at Rs 280, down Rs 3.45, or 1.22%. The company has board meet on July 29 on QIP/NCD/FCCB issue, reports CNBC-TV18. It was trading with volumes of 77,351 shares. Yesterday the share closed down 0.28% or Rs 0.80 at Rs 283.45.
Zee Entertainment Enterprises touched an intraday high of Rs 185.85 and an intraday low of Rs 174. At 2:31 pm, the share was quoting at Rs 176.40, down Rs 7.5, or 4.08%. It was trading with volumes of 288,954 shares. On Friday the share closed down 0.03% or Rs 0.05 at Rs 183.90.
Titan Industries has posted a net profit of Rs 46.04 crore for the quarter ended June 2009, a rise of 41% over the figure recorded in the corresponding quarter last year. The stock, which had touched a high of Rs 1375 this morning, is currently trading at Rs 1335 with a gain of 1.6%. Over 37,000 shares have changed hands at the Titan Industries counter today. The average daily volume at the counter over the past couple of weeks is around 5200 shares.
Mehraboon Irani, Senior VP-Equity, Centrum Broking is of the view that CESC can appreciate about 25-30% from here over the next six months
"Despite the 3% increase in the topline, CESC's operating profit was sharply higher but interest cost possibly took up some of the chunk from the bottomline. The bottomline was up around 12%. But having said that the fact is that we need to understand that CESC has worked very hard. One crore a day they are saving on transmission and distribution (T&D) cost that is number one. Secondly, their plant load factor (PLF) for the four operational plants is around 90-95% which is also a good thing. Thirdly, it is working on a 600 megawatt (MW) plant at Haldia for which they need only 40 acres of land. Once they are able to get that particular land there should be financial closure for this particular plant also". - Mehraboon Irani told CNBC-TV18
GAIL India touched an intraday high of Rs 364.70 and an intraday low of Rs 339.05. At 2:03 pm, the share was quoting at Rs 339.15, down Rs 13.05, or 3.71%. It was trading with volumes of 356,644 shares. On Friday the share closed up 1.92% or Rs 6.65 at Rs 352.20. Global economy appears to be recovering gradually.
Still, it is not the right time to go on a buying spree in the market.
Quarterly numbers have mostly been good this time around with some top notch companies even beating forecasts.
Since the market has run up pretty fast over the past few months, a few strong corrective spells are not ruled out. Blue chips can be picked up in a staggered manner.
MIC Electronics touched an intraday high of Rs 45.50 and an intraday low of Rs 41.30. At 2 pm, the share was quoting at Rs 41.40, down Rs 3.35, or 7.49%.
It was trading with volumes of 840,529 shares. On Friday the share closed up 9.41% or Rs 3.85 at Rs 44.75.
Bata India has target of Rs 220-225: Mehraboon Irani "I personally feel that markets have not understood well Bata's numbers. I think 8% increase in sales; around 20% increase in profit before interest depreciation in tax and the bottomline increase of 13%, which has failed to cheer the market as of now. What impresses me about Bata which we have tracked quite closely is that the earnings per share of 2.88 is a definite increase over Q1. Let us understand that Bata's yearend is in December. March quarter was around 2.52, this 2.88; if we put it together it works around Rs 5.3 EPS for the first half of the year." - Mehraboon Irani told CNBC-TV18
Balrampur Chini has posted a net profit after extraordinary items of Rs 662.90 million for the quarter ended June 30, 2009 as compared to Rs 168.50 million for the quarter ended June 30, 2008.
The stock is up 1.25% at Rs 109.20. One looking at long term can pick up more of this stock at dips.
Lanco Infratech (Rs 440) can be retained for long term.
Though a correction looks likely after recent strong gains, one can use sharp dips to add more quantities.
Technical Analyst, Vijay Bhambwani is of the view that one can invest in Shree Cements with be 2 or 3 quarter time frame.
"In Grasim you can take a positional punt rather than an intraday punt. Shree Cements would be 2 or 3 quarter time frame kind of an investment at the present levels because this stock has been showing a huge amount of relative strength comparative vis-a-vis the Nifty Fifty. On Ambuja Cement one could take a punt intraday with Rs 1-2 kind of a target objective because of all the three Ambuja Cemenst would be the shortest term perspective because this stock actually has been lagging off late and Grasim for the medium term and Shree Cements for the long term. - Bhambwani told CNBC-TV18
Investment Advisor SP Tulsian is of the view that Ranbaxy Laboratories can add Rs 10-12 from current level.
"The performance of Ranbaxy has definitely been better because in fact we have sent the EBITDA of about 7% and I am not going by the bottomline, which has mainly got a boost because of the reversal of the derivative losses and the forex losses to the extent of about Rs 800 crore. But atleast they have EBITDA positive to the extent of about 7% EBITDA margin. The management has hinted that they will be able to achieve a topline of close to Rs 7000 crore with net loss of about Rs 800 crore for the calendar year 09 but the drop or the problem which they have been facing continuously to be the US market. If they can improve on that front in the next two quarters for the calendar year 09 I do not think that you have any fear on the stock." - Tulsian told CNBC-TV18
Technical Analyst, Vijay Bhambwani is bullish on ICICI Bank.
"I am bullish on ICICI Bank because I feel that the banking stocks are actually under pressure in the absolute short term. But over a period of 2-3 quarters I do expect ICICI Bank once it sustains above the Rs 810 levels over the next 3-4 quarters to actually go into four digits and along with HDFC Bank, which would be the first choice in the private sector bank. ICICI Bank could actually lead the surge. - Bhambwani told CNBC-TV18
Due to heavy selling in some blue chip stocks, the market has plunged deeper into the red this afternoon.
The Sensex is down by nearly 125 points at 15,254 and the Nifty has lost around 33 points at 4535.60.
Oil and auto stocks are down sharply in the red. Some key stocks from banking, PSU and capital goods sectors have also declined sharply on selling pressure.
Bank of Baroda touched an intraday high of Rs 454 and an intraday low of Rs 414.50. At 12:48 pm, the share was quoting at Rs 418.80, down Rs 14.4, or 3.32%. It has declared its Q1FY10 numbers. Its standalone net profit was up 84.89% to Rs 685.38 crore from Rs 370.86 crore, YoY.
Technical Analyst, Ashwani Gujral is of the view that Bank of Rajasthan has resistance at Rs 79.
"Bank of Rajasthan has support around Rs 52 and has got resistance around Rs 73 and then Rs 79. But banks overall are not showing the same kind of strength that they were doing earlier on." - Gujral told CNBC-TV18
Bank of India has posted a net profit of Rs 5843.20 million for the quarter ended June 30, 2009 as compared to Rs 5619.50 million for the quarter ended June 30, 2008. The stock is down by around half a per cent at Rs 345.75. Fresh buying can be considered at Rs 310 - 320 levels.
Omaxe touched an intraday high of Rs 117.70 and an intraday low of Rs 101. At 12:32 pm, the share was quoting at Rs 113.20, up Rs 12.55, or 12.47%. It was trading with volumes of 581,860 shares, compared to its five-day average of 180,779 shares, an increase of 221.86%. Yesterday the share closed up 5.67% or Rs 5.40 at Rs 100.65. - CNBC-TV18
Centrum Broking is of the view that there is much room for an upside for Shree Cements because valuation wise it is attractive and performance wise it is simply superb. - Mehraboon Irani told CNBC-TV18
Manishi Raychaudhuri, MD & HOR, BNP Paribas Securities has reduced rating on Tata Motors.
"The structural problem with Tata Motors is if one looks at the, if one leave out this short term things that is just the quarterly numbers etc, the structural problem is 65-70% of the revenues still come from United States and Western Europe and these markets are not really reviving. So we currently have a reduced recommendation on Tata Motors and we really do not see the possibility of any significant reversal to that atleast in the medium term." - Raychaudhuri told CNBC-TV18
Mahindra & Mahindra (cmp Rs 827) can be tried for intra-day if the stock rises to Rs 832 and stays firm for a while. A rise to Rs 840 - 845 is possible in intra-day trades. A stop loss can be placed at Rs 820.
Godrej Industries was locked at 10% upper circuit. It touched an intraday high of Rs 153.05 and an intraday low of Rs 140 at 12:06 pm. The share was quoting at Rs 153.05, up Rs 13.90.
There were pending buy orders of 57,590 shares, with no sellers available.
It was trading with volumes of 549,441 shares, compared to its five-day average of 251,854 shares, an increase of 118.16%.
On Friday the share closed up 0.32% or Rs 0.45 at Rs 139.15.
Investors long in GAIL India can stay invested and buy more at declines.
The stock can rise to Rs 410 - 415 and in the event of a strong breakout there, a rise to Rs 450 or even higher is possible.
A stop loss can be placed around Rs 280.
United Phosphorous touched an intraday high of Rs 169.70 and an intraday low of Rs 161.60. At 10:47 am, the share was quoting at Rs 166.10, up Rs 5.65, or 3.52%.
The company is eyeing Gharda Chem, reports DNA.
It was trading with volumes of 202,985 shares. On Friday the share closed up 7.04% or Rs 10.55 at Rs 160.45.
Bank of Baroda's net profit rose to Rs 6853.80 million for the quarter ended June 30, 2009 from Rs 3708.60 million for the quarter ended June 30, 2008. The bank's total income increased from Rs 38063.70 million for the quarter ended June 30, 2008 to Rs 47351.50 million for the quarter ended June 30, 2009.
The stock, which was up in the positive territory earlier in the day, has slipped into the red on announcement of results. At present, it is down with a marginal loss at Rs 430. One holding the stock with a long term plan can stay invested.
Fresh buying can be considered at sharp declines.
Manishi Raychaudhuri, MD & HOR, BNP Paribas Securities feels that there is a lot of steam left in Gujarat State Petronet, GSPL.
"In general power I think has not really been a big outperformer or underperformer. If you look at slightly broader space, the utility space in general we have liked GSPL. Those numbers clearly surprised positively and we think there is a lot of steam left in that stock purely on a fundamental basis. Apart from that I think on the pure power utility side we have not been very bullish. In fact in our model portfolio we do not have exposures to the power front liners like NTPC or Tata Power for that matter. - Raychaudhuri told CNBC-TV18
Castrol India has posted a net profit after tax of Rs 1284.00 million for the quarter ended June 30, 2009 as compared to Rs 828.00 million for the quarter ended June 30, 2008.
Total income has increased from Rs 6306.00 million for the quarter ended June 30, 2008 to Rs 6468.00 million for the quarter ended June 30, 2009.
The stock is up by 5.2% at Rs 425. On BSE, the Castrol counter has clocked a volume of 37,800 shares today, much higher than the average daily volume of around 18,700 shares.
Sell Union Bank of India at below 234 : ICICI Direct
Technical Analyst, Ashwani Gujral is of the view that one can buy Reliance Industries on declines.
"When this sort of news comes in, you let Reliance Industries for couple of days like on Sterlite, on the second day you got about Rs 560 and that was basically the low. So probably one more day and all the pent up selling, everybody who wants to get out gets out and then you get around that Rs 1,840-1,850 if you get there. So Reliance clearly is a buy on these bad results and even the market the reaction it is showing, is clearly showing strength and if Reliance tends to pick up in the later half of the day, then you will see further short-covering which could take out key levels later on in the day." - Gujral told CNBC-TV18
Divi's Laboratories Buy above at 1125 : ICICI Direct
The Nifty (4585) will find support at 4570 but a strong breach there could result in a fall to 4550 or even lower.
On the upmove, the benchmark can rise sharply if a decisive breakout happens at 4595.
Buy Bajaj Hindustan with stop loss at 181 : ICICI Direct
HCL Technologies has entered into a strategic alliance with eBaoTech Corporation, a leading provider or new generation software and services for life and general insurance industry.
HCL Tech will work with eBaoTech to identify fitment of eBaoTech products in select geographies and customers will now have access to a single integrated entity that can help them modernize their cor business managment systems and have a global reach through cost effective solutions.
Buy Nifty above 4568 : ICICI Direct
S Kumars Nationwide touched an intraday high of Rs 43.55 and an intraday low of Rs 41.10. At 10:18 am, the share was quoting at Rs 42.85, up Rs 1.75, or 4.26%.
The company board has approved issue of 1.24 crore warrants to promoters on preferential basis, reports CNBC-TV18. It was trading with volumes of 362,921 shares. On Friday the share closed up 5.52% or Rs 2.15 at Rs 41.10.
Nucleus Software Exports Ltd has informed that one of the major customers of an overseas subsidiary of the company, has on July 25, 2009 given notice to this subsidiary of partial cancellation of contracts, on a date one month from receipt of notice.
As per legal opinion received, and an assessment by management, there is no liability on the Parent Company, and there is no impact on the financial results of the Company for this quarter.
The Nucelus Software stock has declind sharply to Rs 86, netting a loss of 4.25%.
Sell Nagarjuna Construction at below 136 : ICICI Direct
ICICI Bank has beat forecast once again and posted strong results for the April - June 2009 quarter.
The numbers, however, have not triggered any significant buying at the counter till now. The stock is currently trading with a modest gain of 0.45% at 770. One holding the stock can stay invested and look to add more quantities at sharp dips.
Nifty has strong support at 4380-4350 levels, unless we see a break below this point markets are safe and healthy and every fall is a buying opportunity.
Major breakout will be only if nifty sustains above 4600 in the near future, till then we see the markets remaining in the range of 4140-4600. Going forward the focus should be in the midcap space as the large caps will remain sideline. - Nirmal Bang
Stocks to watch
Gail (India) Ltd, after the state-run gas transporter posted a 27 per cent fall in June quarter net profit.
Reliance Petroleum, after it posted net profit of Rs 105 crore ($22 million) for the June quarter on net sales of Rs 7639 crore.
Godrej Consumer Products Ltd after the personal care products maker posted a 78 per cent rise in June quarter net profit, beating forecasts.
Quarterly Results: Areva T & D India Ltd, Ashok Leyland Ltd, Punj Llyod, Tata Motors Ltd and Tata Teleservices (Maharashtra) Ltd