Buy Sesa Goa on declines

Long term investors should consider buying Sesa Goa on all declines. The scrip is in a very strong uptrend.

It has always been among the better metal performers. During bull markets, it is volatile, and on the downside during bear markets but its long term returns over 4-5 years is probably among the highest in this sector.

The stock could react in the near term and could stabilize around 425 levels. Buy on declines for a target of 750 in a years time frame.

The following data gives the returns the scrip given over a period of time

Performance

1 Week : Rs 399.95 (11.56%)

1 Month : Rs 353.60 (26.19%)

1 Year : Rs 72.75 (513.33%)

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Closing Bell 28th May 2009

Closing Bell 28th May 2009

The Indian markets recorded another strong day today, possibly taking cues from their Asian peers and hopes of an improved economic and political climate. Among the key Asian markets, Hong Kong and China led the pack of gainers with 5% and 2% gains respectively. Among Indian stocks, those from the metal and realty sectors gained ground while the ones from the pharma and FMCG sectors fell.

The BSE-Sensex and the NSE-Nifty closed with gains of around 185 points (1.3%) and 60 points (1.4%) respectively. The BSE-Midcap and BSE-Smallcap indices were up by 0.9% and 0.2% respectively. Rupee was trading at 47.65 to the US dollar at the time of writing.

L&T announced results today. Its standalone and consolidated sales grew by 35% YoY and 38% YoY respectively during FY09. Higher construction material costs and subcontracting charges led to a 0.2% YoY contraction in consolidated operating margins during the fiscal. Margins on a standalone basis contracted by 0.7% YoY. Consolidated net profits (excluding extraordinary items) grew by 31% YoY during FY09. Sharp increase in interest expenses though took some sheen off the bottomline. The company’s board recommended a final dividend of Rs 10.5 per share. The company’s E&C segment’s consolidated order backlog stood at Rs 703 bn at the end of March 2009, which is 2.2 times the consolidated sales of the segment in FY09.

The stock of Novartis ended on a strong note on the back of reports that the parent Novartis AG which holds around 51% in the company is likely to revise its open offer price upwards. It is believed that open offer price that was earlier Rs 351 will be revised to a range of Rs 425 and Rs 450 a share. The buyback open offer to increase the parent company’s holding to 90% started on 20th May and will close on the 8th of June.

The United Nations has gotten more pessimistic about the growth of the global economy. In January, the UN had estimated the world economy to shrink by 0.5% during the year 2009. However, it has now revised its estimates downwards, estimating a 2.6% fall instead. A UN spokesperson stated that they are yet to see any positive signals of revival in the economy. However, the organisation has also stated that with a coordinated, development-oriented policy scenario, the world economy would recover to an annual growth of 4% to 5% in 2010 to 2015.

The Indian markets continued to surge further during the previous two hours of trade on the back of continued buying activity among the index heavyweights. Currently, stocks from the metals, auto and pharma sectors are leading the pack of gainers, while select telecom and power stocks are trading weak. The overall advance to decline ratio is poised at 1.8 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 160 points and 50 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 0.6% and 0.4% respectively. The rupee is trading at 47.69 to the dollar.

As per a leading business daily, Godrej Consumer has acquired 49% stake in Godrej Sara Lee. This is possible on account of the merger of Godrej ConsumerBiz Private (GCBPL) and Godrej Hygiene Care Private (GHCPL) with the company. These companies together hold 49% stake in Godrej Sara Lee. Godrej Sara Lee is the market leader in household insecticides, air care and hair cream segment with around Rs 2 bn in revenues. The proposed consolidation would strengthen the company’s position in the FMCG market and will scale its ability to pursue growth opportunities. The merger will consolidate the promoters’ holding in Godrej Consumer from 69.7% to 74.8%. Further, the company will also be eyeing Sara Lee’s 51% stake, as the latter is reportedly in talks to sell its global household and personal care portfolios to focus on its core business of food and beverages. The stock of Godrej Consumer is trading firm, while Dabur is in the red.

Auto stocks are trading mixed. While M&M is trading firm, Tata Motors and Ashok Leyland are in the red. As per a leading business daily, Tata Motors has completed its final obligation for the US$ 3 bn bridge loans, which it had taken a year earlier for financing the Jaguar Land Rover acquisition. As such, the company has been able to extend the final maturity of US$ 1 bn by over 18 months to December 2010, while the other obligations were met through a mix of bond issue, rights issue and the proceeds from the divestment. It may be noted that despite the economic crisis globally, which resulted in liquidity tightening, Tata Motors has been able to refinance its loan obligations.

The Indian markets gained further ground during the previous two hours of trade on account of sustained buying activity. Stocks from the steel, engineering and auto are leading the pack of gainers, while select stocks from the telecom, power and energy are trading lower. The overall advance to decline ratio is poised at 1.7 to 1 on the BSE.

The BSE Sensex and NSE Nifty are trading higher, up by around 150 points and 45 points respectively. The BSE Midcap and BSE Smallcap indices are trading higher by 0.5% and 0.3% respectively. The rupee is trading at 47.80 to the dollar.

Energy stocks are trading mixed. While Reliance Industries and ONGC are trading higher, HPCL and BPCL are trading lower. As per a leading business daily, Reliance Industries (RIL) has discovered 20 trillion cubic feet (tcf) of natural gas reserves in D-3 and D-6 blocks of the KG basin. The estimates are from UK based Hardy Oil and gas which has 10% stake in these blocks. RIL has the remaining stake. It may be noted that RIL also owns the D-6 block in the same fields, which is estimated to hold up to 50 tcf of gas reserves and 143 m barrels of oil. This is positive development for the Indian natural gas industry in general and RIL in particular as it creates another significant source of revenue.

Pharma stocks are trading mixed. While Ranbaxy and Sun Pharma are trading higher, Wockhardt is trading lower. As per a leading business daily, Wockhardt is likely to sell its German business Espharma GmbH in order to raise cash. It is believed that the company is in talks with Lindopharm GmbH, a Germany based company for the same. However, the size of the deal has not been disclosed. It may be noted that Wockhardt acquired Espharma for US$ 11 m in 2004. However, the company has been facing problems to service its debt of Rs 30 bn. Also, the dynamics of the German market which has changed from branded generics to unbranded generics and the pricing pressure is taking a heavy toll on Espharma.

In line with its Asian peers, the Indian markets have started the day on a positive note. Software, energy, engineering and power stocks are trading firm, while select telecom and banking stocks are in the red. The overall advance to decline ratio is poised at 2 to 1 on the NSE. As regards global markets, the US ended lower on the back of sharp rise in Treasury yields coupled with news of looming bankruptcy for General Motors. The European markets closed higher yesterday, while the Asian indices are currently trading firm. Crude oil prices have gone up nearly 20% since the beginning of this month.

The BSE Sensex is trading higher by around 58 points. The NSE Nifty is up 36 points. The BSE Midcap and BSE Smallcap index are both trading higher. The rupee is trading at 48.06 to the dollar.

BHEL announced its FY09 results yesterday. The net sales grew 36% YoY during FY09, led by a strong growth in both its segments. BHEL’s ‘power’ segment grew by 34% YoY, while its ‘industry’ segment recorded a growth of 21% YoY. During FY09, the company’s operating margins contracted by 2.9% YoY owing to higher raw material costs (as a percentage of sales). Net profits grew by 10% YoY during FY09. This is mainly on account of BHEL’s poor performance at the operating level. During 4QFY09, the company’s topline and bottom line grew by 46% YoY and 21% YoY respectively. The Board has recommended a final dividend of Rs 8 per share (that, along with an interim dividend of Rs 9 per share paid during the year, leads to a dividend yield of 0.8%). Engineering stocks are trading firm.

Software major, Infosys Technologies is seeing good outsourcing business opportunities in India and the Middle East. The company on account of the global economic downturn has been facing pressure in the developed markets. As per the company, around 89% of its clients have indicated a cutback in their technology budgets. Hence it is looking at India and the Middle East. The company has won three deals in these markets over the last five months. Amidst the ongoing financial crisis and economic slowdown in the US, Infosys registered 10% QoQ revenue growth in sales from the domestic market. However, the company witnessed a decline in sales from the European region (by around 3% QoQ) and North America (by around 2% QoQ). The management has estimated 3% to 7% lower earnings in FY10 as compared to FY09. Software stocks are trading higher.

Market Voices 19th May 2009

Market Voices 19th May 2009

It was a day of high intra-day volatility and the market ended flat today. After yesterday's lack of trade, money poured into the market as it clocked the highest turnover of Rs 1.57 lakh crore. The previous highest turnover was clocked on October 18, 2007. Sensex shut shop at 14302, up 17 points and Nifty at 4318, down 4 points from the previous close. CNX Midcap index was up 2.21% and BSE Smallcap index was up 2.52%. The market breadth was positive with advances at 934 against declines of 332 on the NSE. Top Nifty gainers included Reliance Capital, DLF and Nalco while losers were Sun Pharma, TCS and Cipla. 

The market is looking overstretched and one can expect a correction soon, says E Mathew, technical analyst, on CNBC TV18. Initiate fresh longs around Nifty levels of 4050-4100, he adds. Buy Maharashtra Seamless with a medium-term target of Rs 326, he says. The stock is currently trading at Rs 226, down 3.7% on the BSE.  

Hold IVRCL Infra with a target of Rs 300-325 where one can book profits, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 254, up 21% on the BSE. 

Hold Tata Steel with a trailing stop loss of Rs 325-315 and book profits if it goes below that, says Deepak Mohoni, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 331, up 14%on the BSE.  

Hold SREI Infrastructure it has resistance at Rs 79-89, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 68, up 36%% on the BSE. 

Hold Unitech with a target of Rs 82 where one can book profits, says Ashish Chaturvedi of Anand Rathi Securities on Zee Business. The stock is currently trading at Rs 73, up 14% on the BSE.  

Hold Aban Offshore it has resistance at Rs 1000-1100 where one can book profits, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 929, up 23% on the BSE.  

Buy Punj Lloyd with a target of Rs 200 in 12 months, says Ashish Kukreja, market expert, on CNBC Awaaz. The stock is currently trading at Rs 165, up 1.5% on the BSE. 

In the auto sector, buy Maruti Suzuki, Hero Honda and Bajaj Auto for the long term, says a market expert on Zee Business. 

This is now a buy on dips market which is forming a new top, says Dinesh Thakkar of Angel Broking on CNBC Awaaz. With the new government at the helm, the market could give an annual return of over 17-18%, he adds. 

The market continues to trade firm. Sensex is trading at 14638, up 354 points and Nifty is at 4416, up 95 points from the previous close. CNX Midcap index is up 3.08% and BSE Smallcap index is up 2.90%. The market breadth is positive with advances at 950 against declines of 299 on the NSE.  

Hold Cairn India with stop loss below Rs 195, says Neera Jain, technical analyst, on NDTV Profit. It has resistance at Rs 230 at which level book partial profits, she adds. The stock is currently trading at Rs 218, up 0.65% on the BSE. 

We have an order book of Rs 11,000 crore and hope to double it in the next 12 months, says G Venkatesh Babu of Lanco Infra, on NDTV Profit. The stock is currently trading at Rs 329, up 14.9% on the BSE.  

Buy Syndicate Bank and Central Bank for the long term, says Dilip Bhatt of Prabhudas Liladhar, on CNBC Awaaz. He is underweight on the IT sector going forward. 

Buy Tanla Solutions with short-term target of Rs 80-85, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 49, he adds. The stock is currently trading at Rs 56, down 2.2% on the BSE. 

Buy DLF and GMR Infra with three months' view, says Paras Bothra of Ashika Stock Broking on NDTV Profit.  

The Asian markets saw a positive session while European markets have opened quiet. After much volatility our market has settled and is looking good. Sensex is trading at 14899, up 615 points and Nifty is at 4495, up 172 points from the previous close. CNX Midcap index is up 4.24% and BSE Smallcap index is up 3.78%. The market breadth is positive with advances at 966 against declines of 282 on the NSE.  

Buy Tata Steel at Rs 290-295, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 270, he adds. The stock is currently trading at Rs 347, up 9.8% on the BSE. 

Hold SBI with short-term target of Rs 1825, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1600, he adds. The stock is currently trading at Rs 1795, up 12.9% on the BSE.  

Buy on dips SBI, IDBI, PNB, BHEL, Reliance Communications and Bharti Airtel, says Deven Choksey of KR Choksey on Zee Business. But buy in staggered fashion and if the market corrects, then add more, he adds. 

Book profits in L&T and re-enter at lower levels, says Paras Bothra of Ashika Stock Broking on NDTV Profit. It is difficult to say to where the momentum will stretch, he adds. The stock is currently trading at Rs 1430, up 11.7% on the BSE.  

Volatility continues in the market with Sensex trading at 14580, up 295 points from its previous close, and Nifty at 4373, up 51 points.  

Buy Monnet Ispat at Rs 218 with stop loss of Rs 180, says Nitin Murarka of SMC Global on Zee Business. Keep short-term target of Rs 260 and medium-term target of Rs 300, he adds. The stock is currently trading at Rs 197.90 on the BSE.  

Buy GVK Power with stop loss of Rs 28, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. It has resistance at Rs 44 crossing which it can go up to Rs 52, he adds. The stock is currently trading at Rs 40.90, up 13.6% on the BSE.  

Buy Infosys, TCS and Wipro, says Ashish Kapur of Invest Shoppe on CNBC Awaaz. He is positive on IT stocks.  

Buy Exide Industries on dips at Rs 52-55 with stop loss of Rs 48, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. It has resistance at Rs 65 crossing which it can go up to Rs 75, he adds. The stock is currently trading at Rs 60.50, up 8.1% on the BSE.  

This is not a 'buy and hold' market, says Sudhanshu Pandey, technical analyst, on NDTV Profit. He would be cautious about buying at this level and advises those who want to invest to do so below 4000 mark.  

Buy Hotel Leela at Rs 25 with stop loss of Rs 21, says Nitin Murarka of SMC Global on Zee Business. Keep short-term target of Rs 32 and medium-term target of Rs 40, he adds. The stock is currently trading at Rs 24.35, down 3.2% on the BSE. 

Hold JP Associates with stop loss below Rs 130, says Neera Jain, technical analyst, on NDTV Profit. It has resistance at Rs 170 at which level book partial profits, she adds. The stock is currently trading at Rs 169.10, down 0.5% on the BSE. 

The market at noon is trading volatile and the indices are witnessing wild swings. Sensex is trading at 14578, up 294 points from its previous close, and Nifty is at 4369, up 46 points. CNX Midcap index is up 3.1% and BSE Smallcap index is up 2.1%. The market breadth is positive with advances at 906 against declines of 327 on the NSE. 

In the real estate space, buy HDIL, Omaxe and Parsvnath for the long term, says Ashwani Gujral, technical analyst, on CNBC Awaaz. If the new government comes out with positive policies the real estate sector could be an outperformer and these stocks could post 50-60% growth, he adds.  

Buy Great Offshore at Rs 295 with stop loss of Rs 260, says Nitin Murarka of SMC Global on Zee Business. Keep short-term target of Rs 350 and medium-term target of Rs 400, he adds. The stock is currently trading at Rs 277, down 2.8% on the BSE. 

Hold JM Financial with trailing stop loss of Rs 28, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. It has resistance at Rs 35-37 crossing which it can go up to Rs 45, he adds. The stock is currently trading at Rs 32.25, up 0.8% on the BSE. 

Sensex is trading strong now at 14566, up 282 points from its previous close, and Nifty is at 4377, up 54 points. The market breadth is positive with advances at 864 against declines of 355 on the NSE. 

Buy Edelweiss at Rs 380 with stop loss of Rs 330, says Nitin Murarka of SMC Global on Zee Business. Keep short-term target of Rs 460 and medium-term target of Rs 600, he adds. The stock is currently trading at Rs 402, up 2.8% on the BSE.  

Buy IFCI with target of Rs 50, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 28, he adds. The stock is currently trading at Rs 35.75, up 5.5% on the BSE. 

Buy UCO Bank, Indian Bank, IVRCL Infra and Power Grid on dips for good long term gains, says Ashwani Gujral, technical analyst, on CNBC Awaaz.  

Buy NDTV at Rs 122 with stop loss of Rs 110, says Nitin Murarka of SMC Global on Zee Business. Keep short-term target of Rs 150 and medium-term target of Rs 180, he adds. The stock is currently trading at Rs 120.70, down 3.4% on the BSE.  

I expect the market to correct further and the political overhang is now over, says SV Prasad of Schroders on NDTV Profit. He adds that global issues have not abated and this will keep the markets under pressure. He believes that the Indian market is still dependent on FIIs and that global cues are to impact inflows to India. 

Buy Firstsource Solutions with targets of Rs 20 and then 25, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 16.50, he adds. The stock is currently trading at Rs 17.30, down 7% on the BSE.  

An hour into opening, some calm appears to have returned to the market with traders playing it safe. Sensex is trading at 14241, down 41 points from its previous close, and Nifty is at 4274, down 47 points. CNX Midcap index is up 1.3% and BSE Smallcap index is up 1.1%. The market breadth is positive with advances at 806 against declines of 390 on the NSE.  

Buy Ispat Industries with intra-day target of Rs 19, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 15.50, he adds. The stock is currently trading at Rs 16.84, down 0.9% on the BSE.  

Buy Tata Steel on dips with target of Rs 390, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 290, she adds. The stock is currently trading at Rs 321.80, up 1.8% on the BSE. 

It is necessary for the market to consolidate now, says Deven Choksey of KR Choksey on Zee Business. He expects stability to return soon and advises buying on dips. 

Hold DLF with a target of Rs 375 where one can book profits, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 336, up 3.3% on the BSE. 

Buy Strides Arcolab with intra-day target of Rs 125, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 105, he adds. The stock is currently trading at Rs 117, down 6.4% on the BSE. 

Buy United Spirits with a target of Rs 900 and stop loss of Rs 690, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 740, down 1.3% on the BSE.  

Buy Sintex Industries with intra-day target of Rs 205, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 180, he adds. The stock is currently trading at Rs 193.95, up 4.8% on the BSE. 

The indices are in the green again with Sensex trading at 14438, up 154 points from its previous close, and Nifty at 4340, up 16 points. The market breadth is positive with advances at 675 against declines of 432 on the NSE. 

Hold RIL with a target of Rs 2500 where one can book profits, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2280.80, down 2.9% on the BSE. 

Buy Jain Irrigation with intra-day target of Rs 565, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 532, he adds. The stock is currently trading at Rs 550, up 4.7% on the BSE. 

Buy Suzlon Energy at Rs 90 for intra-day trading only with target of Rs 100, says Simi Bhaumik, technical analyst, on Zee Business. This is not the time for investment into this stock, she adds. The stock is currently trading at Rs 92.45, down 1.6% on the BSE. 

Buy Alok Industries with intra-day target of Rs 18, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 14.50, he adds. The stock is currently trading at Rs 14.91, down 3.5% on the BSE.  

The market opens gap up and quickly slips into the negative as there is profit booking at higher levels. Sensex is trading at 13993, down 291 points and Nifty is at 4227, down 95 points from the previous close. CNX Midcap index is down 3.90% and BSE Smallcap index is down 3.10%.  

If one sees a major policy thrust from the new government there could be a push in the infrastructure sector, says Sanjeev Prasad of Kotak Securities, on CNBC TV18. Besides looking at largecaps like L&T, BHEL, the good picks from midcaps would be Punj Lloyd, IVRCL, Nagarjuna Constructions, JP Associates and Lanco Infra, he adds.  

We will see a strong opening today and then there will be profit booking, says Sharmila Joshi of Systematix Shares on Zee Business. But she advises doing partial profit booking only. She expects the market to remain on a high in the run-up to the budget.  

Market analysis for 23-02-09

3:10 PM: Ambuja Cements (Rs 69) looks good as a long term bet.

The stock may have some weak spells in the near run. Once demand for new homes pick up and infrastructure development gets back on the rails, then one can see some sharp rallies in the cement space.

2:31 PM: Alstom Projects (Rs 318) can find resistance at this level. If it manages to trade firm for a few sessions, then a rise to Rs 400 is likely.

On the downside, the stock has support at Rs 260 and then at Rs 230 levels.

2:22 PM: DLF (Rs 153) can weaken to Rs 140 in the near run.  Due to short-covering, the stock may move up a bit over the next couple of sessions, but a sustained upmove looks quite unlikely for now.

2:16 PM: Hindalco (Rs 38.90) is all set to breach a crucial support at Rs 38.  The stock, if it does so, can drift down to Rs 33 or even lower.  For now, fresh buying can be avoided at the counter.

2:00 PM: Investors willing to wait long term can go in for NTPC at 5 - 10% down from its current levels.  The stock is traded around Rs 178 at present. It had touched a low of Rs 113 last October.

1:54 PM: Sugar stocks Triveni Engineering and Balrampur Chini can move up sharply and give good returns over a short run.  Sharp declines can be used as opportunities to increase exposure.  Bajaj Hindustan (Rs 45) can be tried at Rs 40 - 42 levels.

1:48 PM: Stay invested in GTL Infrastructure (Rs 31) with a stop loss near Rs 27.  The stock can give decent returns over a 6 - 9 month period.  Fresh buying can be restricted to modest levels.

1:40 PM: Wipro (Rs 213) can be retained with a stop loss at Rs 180.  The stock can drift down in the near term but its long term prospects appear quite bright.

Oracle Financial Services, Tech Mahindra and HCL Tech can be bought at sharp declines from current levels.

1:30 PM: Reliance Communications (Rs 156) can give good returns over a long run.  The stock is near October 2008 low of Rs 148.60 and is very likely to drift below that mark.  One can use sharp dips to increase exposure.

1:20 PM: Power stocks NTPC, Areva, Alstom, NLC and Power Grid can be retained for long term.  However, since the market is likely to see some big sell-offs in the near run, fresh buying can be avoided as far as possible.

1:12 PM: Tata Motors (Rs 133.40) can be bought at declines.  One can accumulate this stock in a staggered way with a long term view.

1:06 PM: Investors with a long term view can continue to hold Aurobindo Pharma (cmp Rs 145).  For now, a stop loss can be placed at Rs 120.  A modest upmove is likely even over a short run.

12:58 PM: Praj Industries (Rs 52) can be retained with a stop loss at Rs 47.  The stock can give fairly good returns over a medium run.  Thermax, Alstom Projects and Punj Lloyd are among the other good stocks for long term from the capital goods space. 

12:50 PM: ABB (Rs 387) can be picked up at declines.  The stock had hit a low of Rs 365.20 recently and a fall to that level looks very likely in the near run.

12:43 PM: SBI (Rs 1033) can move on to Rs 1045 or even higher if current momentum at the counter sustains for a while.  The stock has support at Rs 1020 and weakness around that level can result in a fall to Rs 1010 or further down.

12:37 PM: Nagaruna Construction Company (Rs 43) can drift down to Rs 40 if it continues to trade weak for a couple of sessions.  Those looking at long term can continue to hold the stock and look at buying more at sharp declines.

12:30 PM: Educomp Solutions (Rs 1613) can weaken further.  Fresh buying in the stock can be avoided for now. Those holding the stock can lighten commitments at rallies.

12:23 PM: One looking at long term can accumulate PSU bank stocks in a staggered way.  Andhra Bank, UCO Bank, syndicate Bank and Vijaya Bank are among the good low priced bank stocks.  Among the big ones, SBI and PNB look good.

12:14 PM: Some short-covering is expected ahead of February series derivatives expiry.  The rallies can be used to lighten commitments to an extent. One should refrain from building up big positions as the condition is still not conducive for a sustained upmove.

12:08 PM: JSW Steel (Rs 188) can drift down to Rs 170, a new 52- week low. On the upmove, the stock is likely to face resistance at Rs 200 and then around Rs 230. A strong breakout at Rs 230 can result in a rise to Rs 290 or even higher. 

12:00 PM: Oracle Financial Services (Rs 684) can give good returns over a 9 - 12 month span. Investors long at the counter can continue to hold the stock. Fresh buying can be considered at 5 - 10% down from current levels. 

11:52 AM: Maruti Suzuki (Rs 630) can be retained for long term.Exposure to the stock can be increased at declines. Hero Honda, Tata Motors and Bajaj Auto can also be bought at sharp declines from current levels.

11:45 AM: Traders with a good appetite for risk can go in for Satyam Computer Services for some short term gains.

The stock, currently traded at Rs 44.50, can move on to Rs 55 - 58.

11:32 AM: The Nifty (2702) has recovered some lost ground in mid morning trade.  The index now has some good support at 2675. Weakness there can result in a fall to 2660 or 2650. On the upmove, it can rise to 2725 where some resistance is seen. 

11:26 AM: Investors looking at long term can continue to hold RNRL (Rs 42). More quantities can be bought at sharp declines from here. For now, a stop loss can be placed at Rs 36. 

11:19 AM: Cairn India (Rs 154) can move up sharply this afternoon.  One willing to take chances can go in for the stock now. A stop loss can be placed near Rs 150. 

11:06 AM: Vijaya Bank, UCO Bank, Syndicate Bank and Andhra Bank may not see a significant downside from here.

Investors with a long term view can pick up these stocks at current levels or slightly lower for some solid returns over the next 12 - 18 months.

10:59 AM: Tata Teleservices (Rs 23) can be retained for now with a stop loss near Rs 19. Fresh buying can be avoided for the time being.

10:54 AM: One can stay invested in KEC International (Rs 138) with a stop loss around Rs 110.

Though the stock may not move up significantly in the near run, its long term prospects remain fairly bright.

10:48 AM: With global economy in a deep recession, the market will continue to struggle in the near run. The Sensex (8657) may re-test its October 2008 low of 7697.39 before showing some signs of a recovery.  It is advisable to keep exposure to the market at affordable levels. Being selective with regard to fresh exposure will help one in the long run.

10:41 AM: HCL Technologies (Rs 102) has hit a new low of Rs 100.10 today.  Investors with a long term plan can continue to hold the stock and look at buying more at declines from here. Though the stock may find the going tough in the near run, its long term prospects remain quite bright.

10:35 AM: Some leading analysts and brokerage houses expect Pantaloon Retail to outperform the market.  The stock has taken a beating this morning, losing more than 7% at Rs 134. Investors with a medium to long term plan can pick up the stock at Rs 110 - 115 levels.

10:28 AM: Shriram EPC has been awarded an order worth Rs 70 crore for wind turbines from Cape Energy Private Limited, an associate of Bergurruen Holdings, a PE funded company with infrastructure and real estate development in India.  The thinly traded stock, is down 1.65% at Rs 90 now. It had touched a low of Rs 85 late last month.

10:18 AM: Power Grid Corporation (Rs 87) can be retained for long term with a stop loss near Rs 52.One can look at buying more of this stock at sharp declines from here.

10:12 AM: Bank and realty stocks are among the worst hit in the sell-off this morning. Mirroring their fall, the Bankex and Realty have lost around 3.3% now.  Though some modest buying is likely at lower levels, it is going to be a slippery ride for several bank stocks in the very short run. 

Realty stocks may take longer time to bounce back into the reckoning. Still, not many from this space are expected to regain even 20 - 25% of what they have lost from their historic highs. 

9:58 AM: The market has opened on a negative note this morning due to weak global cues. 

The Sensex, after opening at 8707.35, around 135 points down, has slipped to 8670.54 now, netting a loss of 172.46 points or 1.95%.

The Nifty has lost 45.30 points or 1.66% at 2691.15.

DLF, ICICI Bank, RIL, HDFC, Bharti Airtel, Reliance Infra, HDFC Bank, Sterlite, SAIL, ABB, M&M and Tata Steel have declined sharply