BSE / NSE Market voices 16 July 2009

Market voices 16 July 2009

The market opened on a rousing note on strong global cues but turned volatile past noon and finally ended on flat note after a choppy ride in afternoon trade. The Sensex ended at 14,256.57 (provisional) with a small gain of 3.33 points. It touched a high of 14,493.10 in morning trade, but fell to 14,169.58 around mid afternoon.

Capital goods stocks ended lower. Auto, oil, consumer durables and pharma stocks found support. IT, realty, FMCG, bank, power and metal stocks gave up early gains and ended well off their highs. RIL, RComm, NTPC, Maruti Suzuki, Hero Honda, Tata Steel and Tata Motors moved up sharply.

Sterlite, JP Associates, L&T, Reliance Infra, HDFC, ACC, DLF, ONGC and SBI closed with sharp losses. Cairn India, Idea Cellular, ABB, SAIL, Ambuja Cements and Suzlon Energy closed on a weak note. GAIL India, Cipla, PNB, Ranbaxy, Nalco and Unitech ended with notable gains. Midcap and smallcap stocks drifted lower on profit taking. The market breadth, however, was positive at close.

NTPC touched an intraday high of Rs 208.80 and an intraday low of Rs 199.80. At 3:27 pm, the share was quoting at Rs 206.70, up Rs 7.70, or 3.87%. It was trading with volumes of 7,899,819 shares. Yesterday the share closed up 1.82% or Rs 3.55 at Rs 199.

L&T has slipped following a sharp fall in order inflow in June 2009. One holding the stock can stay invested if looking at long term. Exposure to the stock can be increased at sharp declines. Short term investors can exit the counter at rallies and buy back later at dips.

Jaiprakash Associates (Rs 198) is a good one for long term. One can buy the stock in a staggered way. Though some weakness is likely in the near term, a modest upmove cannot be ruled out.

Reliance Industries touched an intraday high of Rs 1,967.85 and an intraday low of Rs 1,880. At 2:47 pm, the share was quoting at Rs 1,966, up Rs 89.70, or 4.78% on the NSE. It was trading with volumes of 4,533,524 shares. Yesterday the share closed up 3.43% or Rs 62.25 at Rs 1,876.30.

GAIL has touched a 52-week high of Rs 346. At 2:47 pm, the share was quoting at Rs 345.55, up Rs 19, or 5.82%. It was trading with volumes of 704,317 shares. Yesterday the share closed up 1.63% or Rs 5.25 at Rs 326.55.

Larsen and Toubro can slip to Rs 1270, says Anu Jain on CNBC-TV18

Sterlite Industries has support at Rs 580, says Anu Jain, VP, IIFL Private Wealth Management at India Infoline, on CNBC-TV18

Tata Steel's subsidiary Tata Global Minerals Holdings Pte Limited, has acquired 19.38% stake in Riversdale Mining Limited, Australia. The Australian firm has acquired coal exploration tenements in Mozambique with the combined tenement size now in excess of 250,000 hectares in the Tete-Moatize area.

NTPC, Power Grid, PFC and Areva can be bought at declines for long term. Though a sharp upmove over a short run is not ruled out altogether, some weakness is likely in the next few sessions.

Hold Bajaj Auto says Mohindar on CNBC-TV18. "The scrip has some resistance at the previous peak towards the Rs 1165 levels but getting to Rs 1220-1230 should not be a problem in the short term", he says.

Hexaware Technologies is trading higher by 4.87 per cent at Rs 43.05. The intra-day high of the scrip being Rs 48 and low being Rs 42.

Axis Bank and HDFC Bank look attractive for long-term bets, says Srikant Chouhan, technical analyst, Kotak Securities, on CNBC TV18. One can buy stocks from infrastructure space at sharp declines. IVRCL Infra, GMR Infrastructure, PBA Infrastructure and Reliance Industrial Infrastructure can be picked up in small quantities at dips.

Patni Computers was trading up at Rs 294, higher by Rs 17.05 on the NSE. Total traded quantity was at 2,96,077

Zee Entertainment Enterprises touched an intraday high of Rs 177 and an intraday low of Rs 162.10. At 1:56 pm, the share was quoting at Rs 175.40, up Rs 11.55, or 7.05%. It was trading with volumes of 1,388,876 shares, compared to its five-day average of 315,804 shares, an increase of 339.79%. Yesterday the share closed up 0.74% or Rs 1.20 at Rs 163.85.

Banking behemoth SBI was trading weaker at Rs 1600.10, down 2.25 per cent on the NSE. Total trading quantity was 10,91,964

IDBI has lost nearly 4.45 % on the NSE. The scrip was last trading at Rs 95.50. The scrip opened higher at Rs 104

Sterlite has lost nearly 8.29% on the NSE. The scrip was last trading at Rs 577.30, with intra-day high of Rs 641 and intra-day low of Rs 572. Total traded quantity was 65,26,878

Larsen & Toubro trading weak despite posting strong results. On the NSE, the scrip has lost 3.33 per cent at Rs 1383.

Godrej Industries locked at 10% upper circuit. The scrip's intraday high is Rs 135.70 and intraday low is Rs 127. The share was up Rs 12.30 at Rs 135.70.

Welspun-Gujarat Stahl Rohren has posted a profit after tax of Rs 138.21 crore for the quarter ended June 30, 2009 as compared to Rs 71.14 crore for the quarter ended June 30, 2008. The total income has also increased sharply from Rs 1096.73 crore for the quarter ended June 30, 2008 to Rs 1883.80 crore for the quarter ended June 30, 2009. The stock is trading a percent down at Rs 202. Earlier, it had touched a high of Rs 208.70 this morning. One can stay invested in the stock.

Investors can hold Mercator Lines, says Ashwani Gujral, technical analyst, on CNBC TV18. Target for the scrip is Rs 65. On the BSE, it is trading down by 0.63 % at Rs 55

Zee Entertainment's profit for the quarter ended June 2009 has declined sharply. The media firm has posted a net profit after tax of Rs 71.27 crore for the quarter ended June 30, 2009 as compared to Rs 130.97 crore for the quarter ended June 30, 2008. The company's total income decreased from Rs 359.34 crore for the quarter ended June 30, 2008 to Rs 266.65 crore for the quarter ended June 30, 2009. Despite weak results, the stock shot up to Rs 177 this afternoon and is currently trading at Rs 172, up over 5% on its previous closing price.

Macro wise power sector looks like a pretty positive sector to be in, says Rajat Rajgarhia, Director Research, Motilal Oswal Financial Securities, on CNBC-TV18.

Buy Sterlite Industries on declines, says Rajat Rajgarhia, Director Research, Motilal Oswal Financial Securities, on CNBC-TV18

Jai Corp was locked at 5% upper circuit. It touched an intraday high of Rs 220.55 and an intraday low of Rs 220.55. At 12:46 pm, the share was quoting at Rs 220.55, up Rs 10.50. there were pending buy orders of 23,601 shares, with no sellers available. It was trading with volumes of 10,077 shares. Yesterday the share closed up 5% or Rs 10 at Rs 210.05.

Thanks to buoyant results, Bajaj Auto has moved up by over 6% to Rs 1166 this afternoon. Bajaj Auto has posted a net profit of Rs 2934.90 million for the quarter ended June 30, 2009 as compared to Rs 1751.10 million for the quarter ended June 30, 2008. Total Income has increased from Rs 23334.50 million for the quarter ended June 30, 2008 to Rs 23616.10 million for the quarter ended June 30, 2009.

Thermax touched an intraday high of Rs 463.55 and an intraday low of Rs 430.10. At 12:37 pm, the share was quoting at Rs 454, up Rs 26.70, or 6.25%. It was trading with volumes of 39,505 shares, compared to its five-day average of 16,332 shares, an increase of 141.88%. Yesterday the share closed up 3.95% or Rs 16.25 at Rs 427.30.

Satyam Computer Services touched an intraday high of Rs 82 and an intraday low of Rs 77.75. At 12:26 pm, the share was quoting at Rs 80.75, up Rs 3.45, or 4.46%. It was trading with volumes of 15,950,867 shares. Yesterday the share closed up 3.07% or Rs 2.30 at Rs 77.30.

CESC (Rs 282) is a good stock for long term. Over a short term, the stock is likely to rise to Rs 295 - 300. Short term traders can book some profits at those levels and make a re-entry later at declines. Long term investors can continue to hold the stock with a trailing stop loss.

Punj Lloyd is trading near resistance level, long position is not recommended, says Vasudev, CEO, Angel Broking Hold Hindalco with a stop loss of Rs 67. It is showing higher top, higher bottom char formation: Angel Broking Metal counters look positive: Angel Broking

Bajaj Hindusthan touched an intraday high of Rs 164.35 and an intraday low of Rs 152.40. At 12:07 pm, the share was quoting at Rs 154.20, down Rs 5.4, or 3.38%. It was trading with volumes of 818,358 shares. Yesterday the share closed up 8.17% or Rs 12.05 at Rs 159.60. 12:03 PM: Inflation is in the negative territory for a fifth straight week. According to the data released a little while ago, India's inflation was down 1.21% for the week ended July 4. It was down 1.55% in the previous week.

Navneet Publications touched an intraday high of Rs 89.90 and an intraday low of Rs 81.50. At 11:41 am, the share was quoting at Rs 84.30, up Rs 3.80, or 4.72%. The company board has meet on July 31 to discuss Bonus Issue, reports CNBC-TV18.

It was trading with volumes of 790,330 shares, compared to its five-day average of 135,515 shares, an increase of 483.20%.

Yesterday the share closed up 5.78% or Rs 4.40 at Rs 80.50.

Hold RNRL, says Vasudev, CEO, Angel Broking Steel sector positive, says Gajendra Nagpal, CEO. Unicorn Financial Intermediaries

Larsen & Toubro has reported a substantial rise in standalone net profit for the quarter ended March 2009. During the quarter, the profit of the company rose 3.18 times to Rs 15,982 million from Rs 5,024.40 million in the same quarter last year. The stock is trading 2% down at Rs 1401 now. One looking at long term can consider fresh buying in the stock at declines.

ONGC touched an intraday high of Rs 1,054 and an intraday low of Rs 1,024.50. At 11:31 am, the share was quoting at Rs 1,030.30, down Rs 9.1, or 0.88%. The company has started crude oil production in Brazil, quoting Business Standard, reports CNBC-TV18. It was trading with volumes of 580,327 shares. Yesterday the share closed up 3.97% or Rs 39.70 at Rs 1,039.40.

Maruti Suzuki (Rs 1106) can be retained for medium to long term. Intra-day traders with some appetite for risk can go in for the stock at current levels with a stop loss near Rs 1090. The stock could rise to Rs 1126 or even higher if it manages a decisive breakout at Rs 1108.

Gujarat NRE Coke touched an intraday high of Rs 44.50 and an intraday low of Rs 41.50. At 10:56 am, the share was quoting at Rs 42.50, up Rs 1.75, or 4.29%. The company is going to invest Rs 536 crore this fiscal for expansion, reports business Line. It was trading with volumes of 955,428 shares. Yesterday the share closed up 8.23% or Rs 3.10 at Rs 40.75.

Suzlon Energy's German unit, REpower Systems has won an order to supply 30 turbines with total output of 150 megawatts. The Suzlon Energy stock is up by around 3.25% at Rs 96.95. A modest rise looks very likely in the near run. One can stay invested and buy more of the stock if willing to take some chances.

Cement stocks are likely to see a few rounds of strong buying in the near term. One can go in for stocks like ACC, India Cements, Ambuja Cements, Ultratech and Birla Corporation at declines. Short term players can book some profits at rallies and re-enter at lower levels.

Tata Motors touched an intraday high of Rs 303 and an intraday low of Rs 293. At 10:26 am, the share was quoting at Rs 302.50, up Rs 13.95, or 4.83%. It was trading with volumes of 967,901 shares. Yesterday the share closed up 5.97% or Rs 16.25 at Rs 288.55.

Sterlite Industries has announced that it will be raising about $1.5 billion in an issue of American Depositary Receipts, with parent Vedanta to buy $500 million of the issue. The deal, arranged by JPMorgan and Morgan Stanley, was launched in the United States on Wednesday, 15 July 2009, and is set to price shortly. The company intends to use the net proceeds from the offering for the further development of its power generation business in India, planned capital expenditures, planned and potential acquisitions and for general corporate purposes. The Sterlite Industries stock is down by over 5% at Rs 596 at present.

Suzlon Energy, after the wind turbine maker said its German unit, REpower Systems, had won an order to supply 30 turbines with total output of 150 megawatts.

Alembic Ltd, after the pharmaceutical company said it had raised Rs 50 crore through bonds