BSE / NSE Market voices 21 July 2009

Market Voices 21 July 2009

Save for a few minutes at the start, the Sensex was down in the red today as participants chose to book profits after recent gains. There were a few good report cards from India Inc and global cues were reasonably positive, but investors chose a cautious route and refrained from indulging in any big buying today.

The Sensex ended at 15,046.46 (provisional) with a sharp loss of 144.55 points or 0.95%. In intra-day trades, it slipped below the 15k mark to 14,956. The Nifty closed at 4461.80, down 40.45 points or 0.9%.

IT, power, PSU, realty and bank stocks declined sharply. Oil, FMCG and capital goods stocks too exhibited weakness.

Select pharma, metal and auto stocks edged higher. Midcap and smallcap stocks outperformed today.

Tata Steel, Maruti, Sun Pharma, L&T, Grasim and HDFC ended higher. TCS, M&M, ACC, Tata Power, ITC, BHEL, NTPC, ICICI Bank, Bharti Airtel, DLF, Infosys, ONGC and RComm closed on a weak note. RIL, SBI and HDFC Bank also ended weak. Jindal Steel closed sharply higher. Suzlon and GAIL India ended with sharp losses. The market breadth was marginally negative at close.

The market is likely to see a few corrective spells before staging another series of rallies. One with a low appetite for risk would do well to stay extremely stock specific and choose only those with a proven track record.

Investors looking at short to medium term can stay invested in fertilizers stocks Chambal Fertilizers, Nagarjuna Chemicals & Fertilizers and GSFC. RCF, Tata Chemicals and Coromandel Fertilizers can be picked up at sharp declines.

ISMT touched an intraday high of Rs 30.40 and an intraday low of Rs 27.70. At 2:40 pm, the share was quoting at Rs 30, up Rs 1.75, or 6.19%.

Voltas touched an intraday high of Rs 140 and an intraday low of Rs 131. At 2:36 pm, the share was quoting at Rs 139.35, up Rs 7.45, or 5.65%. It was trading with volumes of 1,500,089 shares, compared to its five-day average of 683,245 shares, an increase of 119.55%. Yesterday the share closed up 1.42% or Rs 1.85 at Rs 131.90.

Ultratech Cement (Rs 778) is a good one for medium to long term. Though the stock can give fairly decent returns even over a short run, some weak spells are likely as the demand for cement has not picked up any significantly as yet. Sharp dips can be used to increase exposure to the stock.

Petron Engineering Construction Ltd has received an order from Jaiprakash Associates Ltd for Mechanical Fabrication and Erection for Jaypee Balaji Cement Project, Near Village Budhwada, Dist. Krishna, Andhra Pradesh for a total Contract Value of Rs 48.10 crores. The thinly traded stock is up nearly 8% at Rs 119 now.

Glenmark Pharma touched an intraday high of Rs 263.65 and an intraday low of Rs 241. At 1:36 pm, the share was quoting at Rs 261.75, up Rs 15.30, or 6.21%.

Hold Gujarat NRE Coke, says Hemen Kapadia of Chartpundit on CNBC-TV18

Yes Bank has come out with strong results. The bank has posted a net profit of Rs 1000.70 million for the quarter ended June 30, 2009 as compared to Rs 543.30 million for the quarter ended June 30, 2008. Total income has increased from Rs 4861.90 million for the quarter ended June 30, 2008 to Rs 6878.50 million for the quarter ended June 30, 2009. The stock is up by over 4% at Rs 160. A further sharp upmove looks likely in the short run. One can stay invested in the stock

Hold Reliance Industries (Rs 2027) if you are looking at long term. Over a short run, a few spells are in the offing. However, sharp falls can be used to add small quantities to the portfolio. Intra-day traders with a reasonably good appetite for risk can buy this stock now with a stop loss near Rs 2010. A rise to Rs 2040 - 2050 is possible.

India Infoline touched an intraday high of Rs 135.75 and an intraday low of Rs 126.60. At 1:30 pm, the share was quoting at Rs 128.50, down Rs 6.1, or 4.53%. It was trading with volumes of 728,407 shares. Yesterday the share closed up 1.78% or Rs 2.35 at Rs 134.60.

Glenmark Pharma touched an intraday high of Rs 263.65 and an intraday low of Rs 241. At 1:36 pm, the share was quoting at Rs 261.75, up Rs 15.30, or 6.21%. It was trading with volumes of 1,308,095 shares, compared to its five-day average of 328,342 shares, an increase of 298.39%. Yesterday the share closed up 6.23% or Rs 14.45 at Rs 246.45.

Shree Renuka Sugars Limited has posted a net profit of Rs 611 million for the quarter ended June 30, 2009 as compared to Rs 230 million for the quarter ended June 30, 2008. Despite the sharp jump in net profit, the sugar stock is down in the negative territory at Rs 144, down by over 2%. One holding the stock with a long term plan can stay invested for now.

Oil and gas space will continue to outperform, says Gautam Shah, Technical Analyst at JM Financials on CNBC-TV18

Oriental Bank of Commerce has posted a net profit of Rs 257.41 crore for the quarter ended June 30, 2009 as compared to Rs 220.52 crore for the quarter ended June 30, 2008. Total Income has increased from Rs 2159.21 crore for the quarter ended June 30, 2008 to Rs 2796.10 crore for the quarter ended June 30, 2009.

The stock is up by 1.5% at Rs 191. One holding it can stay invested and buy more of it at dips.

Ranbaxy Laboratories has announced that it has received final approval from Health Canada Therapeutic Products Directorate to manufacture and market RAN-Simvastatin tablets in Canada. The total generia market size of Simvastatin tablets in Canada is about CAD$153 million.

Every dip in Gujarat NRE Coke is a buying opportunity: Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

LIC Housing Finance (down 1.3% at Rs 637) has declined sharply ahead of announcement of results.

The stock had surged to Rs 656 earlier this morning. The stock has a near term resistance at Rs 680 - 685 levels. A strong breakout there could result in a surge to Rs 725 or even higher.

One can consider fresh buying in LIC Housing Finance at sharp declines.

Buy Axis Bank, Bank of Baroda on every dip, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

MindTree is down sharply following the company revising its earnings for fiscal 2009-10 revenue downwards.

The stock is down by over 9% at 502 now.

One looking at fresh exposure can wait for now.

ICICI Bank is looking expensive at about 1.7 times price to book, says Sanjeev Prasad, Executive Director & Co Head, Kotak Instl Equities, on CNBC-TV18

State Bank of India (Rs 1702) can be tried for intra-day if the stock rises to Rs 1710 and trades firm for a while. The stock could rise to Rs 1725 -1730 if it makes a strong breakout at Rs 1710. A stop loss can be placed at Rs 1690 levels.

Buy IndusInd Bank on dips, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Don't buy IT stocks for trading currently at current levels, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Thermax Limited has posted a net profit of Rs 464.901 million for the quarter ended June 30, 2009 as compared to Rs 637.091 million for the quarter ended June 30, 2008. The company's total income has decreased from Rs 7271.543 million for the quarter ended June 30, 2008 to Rs 5478.852 million for the quarter ended June 30, 2009. The stock is up with a modest gain at Rs 458 now. Since a fall from current levels is likely in the near run, fresh buying can be avoided for now.

Invest in Tata Steel, says Sanjeev Prasad, Executive Director & Co Head, Kotak Instl Equities on CNBC-TV18. "If I look at it on 2011 basis the stock looks okay, not too expensive," he added.

The Nifty (4496) has recovered well after a sharp setback.

The index will now take some good support at 4470 levels. A breach could result in a fall to 4450.

On the positive side, a rise past 4615 is likely to result in a surge to 4635 - 4645.

Gujarat NRE Coke (down 2.9% at Rs 51.80) has declined on profit taking after recent sharp upmove. the company has posted pretty strong numbers for the April - June 2009 quarter. One holding the stock with a long term plan can stay invested and look at buying more at sharp falls. gujarat NRE Coke touched an intraday high of Rs 53.15 and an intraday low of Rs 50. At 10:28 am, the share was quoting at Rs 50.90, down Rs 2.45, or 4.59%

It was trading with volumes of 1,210,415 shares. Yesterday the share closed up 17% or Rs 7.75 at Rs 53.35.

MindTree touched an intraday high of Rs 622 and an intraday low of Rs 520. At 10:26 am, the share was quoting at Rs 520.10, down Rs 33.55, or 6.06%. It was trading with volumes of 264,001 shares. Yesterday the share closed up 13.53% or Rs 66 at Rs 553.65.

Punj Lloyd is reportedly planning to raise US$125-150 million by placing fresh equity with institutional buyers to retire part of its high-cost debt and infuse liquidity. The stock is currently down by 1.5% at Rs 219. One looking at long term can go in for the stock at sharp declines. The stock is a very good buy at Rs 160 - 175 levels.

TCS may move 5% higher, says Sanjeev Prasad, Executive Director & Co Head, Kotak Instl Equities, on CNBC-TV18

Essar Oil has posted a net profit of Rs 1690 million for the quarter ended June 30, 2009 where as the same was at Rs 300 million for the quarter ended June 30, 2008. Total Income is Rs 66060 million for the quarter ended June 30, 2009 where as the same was at Rs 87640 million for the quarter ended June 30, 2008. However, the figures are not strictly comparable as commercial production of the refinery started with effect from May 01, 2008. The stock is up by around 2.75% at Rs 144 at present.

Amtek Auto touched an intraday high of Rs 111 and an intraday low of Rs 100. At 10:15 am, the share was quoting at Rs 105, down Rs 3.35, or 3.09%. There was a block deal of 50 lakh Amtek Auto shares at Rs 100 per share, reports CNBC-TV18. It was trading with volumes of 5,034,357 shares. Yesterday the share closed up 9.78% or Rs 9.65 at Rs 108.35.

Sterlite Technologies touched a 52-week high of Rs 214.05. At 09:58 am, the share was quoting at Rs 214.05, up Rs 10.20, or 5% on the NSE. There were pending buy orders of 78,737 shares, with no sellers available. It was trading with volumes of 8,711 shares. Yesterday the share closed up 5.02% or Rs 9.75 at Rs 203.85.

Stocks to watch

MindTree Ltd, after the IT firm's quarterly profit rose 466 percent helped by mark to market gains, but cut its FY10 outlook on an uncertain market environment.

Era Infra Engineering, after the construction firm's quarterly net profit surged to 964.08 million rupees.

Oriental Bank of Commerce, Yes Bank Ltd, Chambal Fertilisers and Chemicals Ltd, ING Vysya Bank Ltd, LIC Housing Finance Ltd, Shree Renuka Sugars Ltd, Tamil Nadu Newsprint and Papers Ltd and Thermax Ltd are among firms reporting quarterly results on Tuesday.