Monday, August 3, 2009

BSE / NSE Market Voices 23 July 2009

Market Voices 23 July 2009

After staying at the sidelines for a couple of days, the bulls came back with a vengeance and lifted the market to a buoyant close today. Strong quarterly numbers, reasonably steady global markets and impressive infrastructure output data triggered frenzied buying across the board.

The Sensex ended the day with a huge gain of 388 points or 2.61% at 15,231. The Nifty closed at 4528.55 (provisional) with a gain of 129.65 points or 2.95%.

Realty, metal, consumer durables, FMCG and auto stocks moved up sharply. Power, pharma, IT, oil and capital goods stocks too posted strong gains. Bank stocks remained a bit subdued but rallied sharply in afternoon trade. PSU and telecom stocks too had a good outing. It was a bright session for midcap and smallcap stocks as well.

Reliance Infra gained nearly 7%. DLF, Maruti and Hindalco gained 6% - 6.75%. ACC, ITC, Sterlite, JP Associates, RComm, Tata Motors, M&M, Grasim and Tata Steel moved up by 4% - 6%. RIL, Hero Honda, L&T, HUL, Tata Power, TCS, NTPC, Infosys and Sun Pharma also ended sharply higher. Suzlon, Jindal Steel, RPower, Unitech, GAIL, Cipla, Idea Cellular, Power Grid, HCL Tech, SAIL, Axis Bank, Tata Comm, PNB, nalco and Hero Honda surged 3% - 7%. ABB, BPCL, Reliance Capital and Siemens also ended on a firm note. The market breadth was quite strong today.

DLF touched an intraday high of Rs 363 and an intraday low of Rs 349.90. At 2:29 pm, the share was quoting at Rs 363, up Rs 16.80, or 4.85%.

ITC has jumped to Rs 230, gaining over 5.5%, on strong results. The stock has further upside in the near run. Still, there may be a few rounds of profit taking before another rally at the counter. HUL, Marico, Dabur India and United Spirits are the other FMCG stocks to watch out for if one is looking at long run.

Glenmark Pharma touched an intraday high of Rs 270.80 and an intraday low of Rs 251.85. At 2:32 pm, the share was quoting at Rs 268.65, up Rs 17.95, or 7.16%.

Zee News touched an intraday high of Rs 42.60 and an intraday low of Rs 41. At 2:51 pm, the share was quoting at Rs 42.50, up Rs 1.95, or 4.81%. It was trading with volumes of 110,209 shares. Yesterday the share closed down 2.41% or Re 1 at Rs 40.55.

Impressive results from India Inc and hopes that Indian economy will start looking up soon are driving stock prices up quite sharply today. After taking a mild retreat, the bulls are back with a bang and the market is on a long trip up north this afternoon. Stocks across the board are seen firming up smartly and it now looks the market will sign off on a buoyant note today. Though a correction is not ruled out, it looks the market will not see a sustained slide in the near term.

IRB Infrastructure (Rs 182) has a near term target of Rs 215. A strong breakout there could result in a rise to Rs 260 - 275 or even higher. It is a good stock for medium to long term. One can stay invested with a trailing stop loss.

UltraTech Cement a market performer, says Amar Ambani of India Infoline on CNBC-TV18 Investors can pick up cement stocks ACC, Ultratech, India Cements, Birla Corporation and Ambuja Cements at declines. Though these stocks are likely to remain sluggish for a couple of quarters, they are bound to move up sharply over the next 12 - 18 months as demand for cement is expected to see a significant surge.

Buy Sintex India at lower level, says Amar Ambani, Vice President-Research, India Infoline on CNBC-TV18

ACC touched an intraday high of Rs 836.70 and an intraday low of Rs 811.55. At 1:42 pm, the share was quoting at Rs 831, up Rs 23.20, or 2.87%. It has announced its Q2CY09 numbers. Its net profit increased 73.54% at Rs 471 crore versus Rs 271.4 crore, YoY.

The mood remains quite upbeat on the Indian bourses today thanks to impressive results from several blue chip companies. Still, one cannot rule out a correction of sorts from current levels as global economy is still not back on track. Investors with a low appetite for risk can lighten commitments at rallies and take a call on re-entering later at dips.

Opto Circuits touched an intraday high of Rs 165.80 and an intraday low of Rs 157. At 11:32 am, the share was quoting at Rs 164, up Rs 9.30, or 6.01%.

Tech Mahindra, which fell sharply following a sharp decline in earnings, has rebounded into the positive territory now. The stock is currently up nearly a per cent at Rs 777.80. Long term investors can go in for fresh buying at declines.

FMCG major Marico Limited has reported a sharp rise in net profit. The Group has posted a net profit of Rs 559.728 million for the quarter ended June 30, 2009 as compared to Rs 462.936 million for the quarter ended June 30, 2008. Total Income has increased from Rs 5991.916 million for the quarter ended June 30, 2008 to Rs 6998.628 million for the quarter ended June 30, 2009. At Rs 88, the stock looks a good option for medium to long term. A modest exposure can be had at these levels. More can be bought at declines.

United Breweries touched an intraday high of Rs 147 and an intraday low of Rs 137.60. At 11:52 am, the share was quoting at Rs 146.25, up Rs 9.85, or 7.22%

Maruti Suzuki Ltd has posted a net profit after tax of Rs 5835.40 million for the quarter ended June 30, 2009 as compared to Rs 4658.50 million for the quarter ended June 30, 2008. Total Income has increased from Rs 50823.60 million for the quarter ended June 30, 2008 to Rs 67095.30 million for the quarter ended June 30, 2009. the stock is up 3.5% at Rs 1260.

Moser Baer can go up to Rs 100, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Kale Consultants was locked at 5% upper circuit. It touched an intraday high of Rs 44.55 and an intraday low of Rs 44.55.

KEC International Limited has won four orders totaling to Rs 471 crores in the domestic market. Two of the orders are from North East Transmission Co. Ltd., a joint venture of ONGC, IL&FS and Govt. of Tripura. The orders re for supply of towers, hardware, line materials and construction of transmission lines. The other two orders are from West Bengal State Electricity Transmission Co. Ltd., The stock is up 2.5% at Rs 435 now.

Bharti Airtel can test Rs 870: Ashwani Gujral, Technical Analyst, on CNBC-TV18

Satyam Computer has resistance at Rs 115, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Union Bank of India has reported a strong surge in revenues. The bank has posted a net profit of Rs 4421.90 million for the quarter ended June 30, 2009 as compared to Rs 2282.90 million for the quarter ended June 30, 2008. Total income has increased from Rs 27548.80 million for the quarter ended June 30, 2008 to Rs 37040.00 million for the quarter ended June 30, 2009. However, the sharp rise in NPA has pushed the stock down by over 6% now. Still, one holding the stock with a long term view can stay invested.

Dena Bank (Rs 52.75) looks good. Even for intra-day, the stock can be tried at current levels. Investors with a medium to long term plan can pick up this stock in a staggered way.

Cement space looks positive, says Nitin Rakesh, CEO, Motilal Oswal AMC, on CNBC-TV18

Biocon Limited has posted a net profit after tax of Rs 475.50 million for the quarter ended June 30, 2009 as compared to Rs 300.10 million for the quarter ended June 30, 2008. The firm's total income increased from Rs 2374.60 million for the quarter ended June 30, 2008 to Rs 2587.10 million for the quarter ended June 30, 2009. The stock is up by around 4.25% at Rs 221.30. Further upside looks likely in the near term.

Bharti Airtel (down 1.35% at Rs 811.50) is a good buy at declines. The stock is likely to remain a bit slippery despite strong results. However, one holding the stock with a long term view can stay invested for now.

The stock, which rose to Rs 990 in mid May this year, is likely to test those levels over a medium term.

Punj Lloyd: Buy above 239 for the target of 243 / 246 / lower with a stop loss of 237 , ICICI Direct

Praj Industries: Sell below 86 with a stop loss of 87 , ICICI Direct

Though the market is up sharply this morning, some profit taking is likely to set in some time during the course of the session. One looking at very short term can book partial profits in realty and capital goods stocks as they are likely to drift down a bit later on in the day. A re-entry can be made at sharp falls.

Gujarat State Petronet: Buy above 60.70 for the target of 62.20 / 63 / higher with a stop loss of 60.20

Punj Lloyd is a good stock to own. Investors holding the stock can stay invested with a stop loss near Rs 175 -180. The stock, currently trading at Rs 245 can move on to Rs 280 -290 in the short to medium run.

Moser-Baer: Buy above 82.50 for the target of 84 / 85 / higher/ with a stop loss of 81.50 , ICICI Direct

Nifty Futures: Sell below 4430 with a stop loss of 4432 , ICICI Direct

HCL Technologies (cmp Rs 224) is likely to move up further over a short run. One can stay invested in the stock with a stop loss near Rs 185 for now. Long term investors can pick up more of this stock at declines.

Sun Pharmaceutical Industries touched an intraday high of Rs 1,229 and an intraday low of Rs 1,158. At 10:14 am, the share was quoting at Rs 1,201.05, down Rs 53.6, or 4.27%. It was trading with volumes of 31,452 shares. Yesterday the share closed down 0.15% or Rs 1.85 at Rs 1,254.65.

Trading got off to a firm start on the major Indian bourses this morning on positive cues from Asian markets. The Sensex shot up to 15,098 after opening around 165 points up at 15,008.78. At present, the Sensex is up 235 points or 1.6% at 15,078 at present. The Nifty has gained 70.35 points or 1.6% at 4469.25.

Sterlite, Reliance Infra, Tata Steel, RComm, DLF, Hindalco, ICICI Bank, Hero Honda, Bharti Airtel and SBI are up by 2% - 4%.
Infosys, Wipro, TCS, Tata Motors, HDFC, L&T, Maruti, ITC, ONGC, ACC, RIL and HDFC Bank have also risen sharply.

Stocks to watch

Aventis Pharma Ltd, after the drug maker posted a market beating 13 percent rise in net profit to 471 million rupees for the quarter ended June 30.

Finolex Cables, after the electrical cable maker said net profit for the June quarter vaulted to 220 million rupees from 74.3 million a year earlier.

Companies reporting results on Thursday include -- Gujarat State Petronet, Siemens, Union Bank, Indian Bank, Mangalore Refinery, Madras Cements, Marico, United Breweries, United Phosphorus, Bata India, Century Enka, Deepak Fertilisers, Alstom Projects, Essel Propack, Nagarjuna Fertilisers, Apollo Tyres and Abhishek Industries.

RComm: Technically this stock can crash towards 254 to 250. Short on rise.

Reliance: Prefer to short considering 2000 as hurdle

SBI: Prefer to trade short at the break of 1680. In profit taking, the stock can go to test even 1600.