BSE / NSE Market Voices 22 July 2009

Market Voices 22 July 2009

Equities opened on a bright note on strong global cues and moved up further in morning trade but plunged deep down into the red as profit taking took centre stage again. A weak start in European markets and lower US index futures also contributed to the decline. Recording losses for the second successive session, the Sensex and Nifty ended sharply lower today.

The Sensex, which was up by over 300 points at one stage, ended the day at 14,840.63 (provisional) with a loss of around 222 points or 1.47%. The Nifty closed at 4402.35 with a loss of 66.75 points or 1.49%. The Sensex and Nifty plunged to 14,786 and 4380 respectively.

Capital goods, information technology, auto, power and pharma stocks declined sharply. Realty and PSU outperformed the market. After trading firm in the morning, midcap and smallcap stocks turned subdued as the session progressed. The market breadth was marginally negative at close.

ONGC moved up by over 4%. DLF ended 1.3% up. HDFC went down by over 5.5%. BHEL, Grasim, JP Associates, Tata Steel, TCS Reliance Infra, Maruti, M&M, RIL, Hindalco, ACC, L&T, RComm and Infosys also closed on a weak note. HCL Tech, Cipla, Cairn, ABB, SAIL and Tata Comm were among the major losers in the Nifty. GAIL India ended on a firm note.

Hold Yes Bank, says VK Sharma of Anagram Stock Broking

Tata Steel can give 5-10% return, says VK Sharma, of Anagram Stock Broking, on CNBCTV18

With more results to hit the market over the next few sessions, investors have turned cautious and are looking to book profits after recent sharp gains.

The Sensex is down by over 200 points at 14,855 and the Nifty is down by around 65 points at 4405.

Cipla touched an intraday high of Rs 284.90 and an intraday low of Rs 268.50. At 2:52 pm, the share was quoting at Rs 270.30, down Rs 12.25, or 4.34% on the NSE. It was trading with volumes of 1,418,103 shares. Yesterday the share closed down 0.21% or Rs 0.60 at Rs 282.55.

Drug maker Piramal Healthcare Limited has reported strong earnings. The company has posted a net profit of Rs 741.10 million for the quarter ended June 30, 2009 as compared to Rs 509.40 million for the quarter ended June 30, 2008. Total income has increased from Rs 4892.20 million for the quarter ended June 30, 2008 to Rs 5697.60 million for the quarter ended June 30, 2009. The stock has gained 3.3% to Rs 332.50. Ahead of announcement of results, the stock had drifted down to around Rs 322 earlier this afternoon.

Thermax Limited has signed technology agreements with two global leaders for advanced wastewater treatment. The company has announced that it has signed agreements with GE Water, USA and Wehrle Umwelt GmbH, Germany, for advanced solutions in sewage treatment and for treatment of hard-to-treat industrial effluents respectively. The Thermax stock, down 5.7% at Rs 428, is a good one for long term. However, fresh buying can be avoided for now. Small quantities can be picked up at sharp falls.

Moser Baer touched an intraday high of Rs 82.85 and an intraday low of Rs 78. At 2:20 pm, the share was quoting at Rs 81.80, up Rs 4.30, or 5.55%. According to sources, the company does not have to pay Philips any settlement fees. It is exploring acquisitions to augment technology gaps reports CNBC-TV18.

India Cements can move upto Rs 156, says Anu Jain of India Infoline on CNBC-TV18

GTL Limited has posted a net profit Rs 435.769 million for the quarter ended June 30, 2009 as compared to Rs 256.326 million for the quarter ended June 30, 2008. The stock, which had slipped after a positive start, is up just marginally at Rs 300.50 at present. One holding the stock with a long term plan can stay invested for now.

Glenmark Pharma can touch Rs 280, says Anu Jain of India Infoline

Selling has intensifed in mid afternoon trade and reeling under pressure, stocks across the board have declined sharply.

Profit taking is the prime reason for the market's sharp fall this afternoon. A weak start on the European bourses and lower U.S. index futures have also contributed to the fall. The Sensex, up pver 300 points at one stage today, is down with a big loss of 186 points at 14,876 now. The Nifty has tumbled to 4412.50, recording a loss of 56.60 points. IT, capital goods, power and auto stocks are among the major losers.

TCS has resistance at Rs 515, says Anu Jain of India Infoline on CNBC-TV18,

Grasim Industries touched an intraday high of Rs 2,824.90 and an intraday low of Rs 2,679. At 1:14 pm, the share was quoting at Rs 2,702, down Rs 88.25, or 3.16%.

It was trading with volumes of 43,156 shares. Yesterday the share closed up 0.95% or Rs 26.15 at Rs 2,790.25.

Axis Bank (Rs 868) can rise to Rs 910 - 915 where it is likely to face some resistance.

Short term investors can book partial or full profits at those levels and get back into the counter later at declines.

Jindal Steel & Power can rise by 6-7%, says Anu Jain of India Infoline on CNBC-TV18

Keep stop loss at Rs 224 on Punj Lloyd, says Anu Jain of India Infoline on CNBC-TV18

As expected, profit taking has pushed the market down into the red this afternoon.

Though more selling is not ruled out, one holding blue chip stocks can stay invested for now and use sharp dips to add small quantities. The market is likely to see some big rallies and a few equally big, or at times bigger, falls in the near term. Caution still remains the watchword.

Canara Bank's net profit surged to Rs 555.33 crore for the quarter ended June 30, 2009 as compared to Rs 122.68 crore for the quarter ended June 30, 2008. Total Income has increased from Rs 4099.05 crore for the quarter ended June 30, 2008 to Rs 5031.95 crore for the quarter ended June 30, 2009. The stock is up maginally at Rs 270. Investors can continue to hold the stock and pick up more at dips.

Buy MphasiS and Tech Mahindra on decline, says Anu Jain of India Infoline on CNBC-TV18

India Cements touched an intraday high of Rs 154.40 and an intraday low of Rs 144.10. At 12:26 pm, the share was quoting at Rs 144.70, down Rs 6.65, or 4.39%.

India Cements has come out with Q1FY10 numbers. Its revenues were down 2% at Rs 953 crore from Rs 973.69 crore, YoY.

Shares of Super Tannery India Limited are up on unusually large volumes.

The stock has vaulted 20% to Rs 6.86 on the back of an announcement from the company that its board will meet on 31 July 2009 to consider and recommend a bonus issue.

On BSE, around 1.93 lakh shares have changed hands at the counter, far higher than an average daily volume of around 6750 shares.

Vijaya Bank (Rs 43.50) is likely to give very good returns over a short run.

One can consider buying this stock at current levels. More quantities can be added to the portfolio at declines.

A decisive breakout at Rs 48 can result in a surge to Rs 55 - 58.

12:20 PM: Oil and Natural Gas Corporation, ONGC touched an intraday high of Rs 1,110.10 and an intraday low of Rs 1,044. At 12:04 pm, the share was quoting at Rs 1,094.70, up Rs 49.90, or 4.78%.

It was trading with volumes of 276,698 shares. Yesterday the share closed down 1.49% or Rs 15.80 at Rs 1,044.80.

NTPC: Sell below 206.80 with a stop loss of 208.50, ICICIdirect.com

India Cements Limited has posted a net profit of Rs 1442.80 million for the quarter ended June 30, 2009 as compared to Rs 1421.40 million for the quarter ended June 30, 2008. The firm's total income increased from Rs 8763.30 million for the quarter ended June 30, 2008 to Rs 9602.50 million for the quarter ended June 30, 2009. Following the announcement, the stock has declined sharply to Rs 146, recording a loss of nearly 3.5%.

Buy IT stocks on correction, says Sandeep J. Shah of Sampriti Capital on CNBC-TV18

Brahmaputra Infraprojects has bagged two orders worth an aggregate Rs 433 crores from Jaiprakash Associates for the construction of Yamuna Expressway connecting Greater Noida to Agro.

The stock has moved up by 5% to Rs 59.75.

Infosys Technologies touched an intraday high of Rs 1,972.00 and an intraday low of Rs 1,952. At 11:25 am, the share was quoting at Rs 1,962.80, up Rs 19.70, or 1.01%. The company has bagged order for eBiz project from Commerce Ministry, reports CNBC-TV18. It was trading with volumes of 58,069 shares. Yesterday the share closed down 1.50% or Rs 29.60 at Rs 1,943.10.

ITC: Sell below 218.50 with a stop loss of 220.50, ICICIdirect.com

Hotel Leela Ventures : Buy above 32 for the target of 33.30 / 34.50 / higher/ with a stop loss of 31.60, ICICIdirect.com

Tata Steel : Buy above 410 for the target of 418 / 422 / higher/ with a stop loss of 406, ICICIdirect.com

Some solid upside looks likely for infrastructure, cement and steel stocks in over the next 3 - 6 months.

One holding quality stocks in these sectors can stay invested and look at buying more in a staggered way at declines.

Nifty Futures: Sell below 4463 with a stop loss of 4465, ICICIdirect.com

Reasonably strong results and expectations that government will start some disinvestments soon are driving the market up.

Still, with monsoon rains not turning out to be sufficient, there is a possibility of some strong rounds of selling in the near run. However, a few positive surprises from India Inc and strong global markets could cap downside

Dr Reddy's Laboratories has moved up by over 3% to Rs 813 on strong results. The stocks is expected to move up further in the near run. However, a few rounds of selling on profit taking is not ruled out. One holding the stock can stay invested and those with a low appetite for risk can book some profits at rallies.

Welspun Gujarat Stahl Roh touched an intraday high of Rs 201.50 and an intraday low of Rs 193.40. At 10:06 am, the share was quoting at Rs 201.15, up Rs 9.30, or 4.85% on the NSE. It was trading with volumes of 928,852 shares. Yesterday the share closed down 2.81% or Rs 5.55 at Rs 191.85.

Wipro (cmp Rs 462) can be picked up for intra-day. The stock is likely to move on to Rs 472 - 475 or further up if the current momentum at the counter sustains for a while. Investors holding the stock can stay invested and buy more of it at sharp dips. Even over a short to medium run, a good upmove looks very likely.

Thermax touched an intraday high of Rs 440 and an intraday low of Rs 419.25. At 10:06 am, the share was quoting at Rs 425, down Rs 28.95, or 6.38%. it was trading with volumes of 5,661 shares. Yesterday the share closed down 0.23% or Rs 1.05 at Rs 453.95.