BSE NSE Market Voices 24 July 2009

BSE NSE Market Voices 24 July 2009

Thanks to frenzied buying in realty, auto, metal and information technology stocks, the market ended on a high note today. Firm global trend, fairly buoyant quarterly results and optimism about global economic recovery lifted the market up today. After some listless movements, the Sensex ended the session at 15,374.59 (provisional) with a gain of 143.55 points or 0.94%. Earlier, after vaulting to 15,418.61 in opening trades, the Sensex had tumbled to 15,168.52. The Nifty closed at 4569.05, up 45.30 points or 1% over its previous close. In intra-day trades, the Nifty hit a high of 4578.75 and a low of 4504.85.

Tata Motors shot up by over 8% today. Maruti, Hero Honda and M&M also closed on a high note, gaining between 3.5% and 6.5%. DLF ended stronger by around 6.5%.

Tata Steel, JP Associates, HUL, Hindalco, ONGC, Tata Power and Sterlite gained 2.5% - 6.5%. Infosys, Grasim, NTPC, TCS and BHEL also rose sharply. Suzlon, Idea Cellular, HCL Tech, ABB and Unitech moved up by 3% - 8%. Cairn, Jindal Steel, RPower, Ranbaxy, GAIL, Reliance Capital and Nalco also closed with strong gains. Midcap and smallcap stocks too had a good outing today.

RIL ended a per cent down on cautious trades ahead of results. Bharti, Sun Pharma, SBI, HDFC, ICICI Bank and ACC were subdued. The market breadth was strong right through the session.

Essar Oil touched an intraday high of Rs 142 and an intraday low of Rs 139. At 2:12 pm, the share was quoting at Rs 140.65, up Rs 3.30, or 2.40%.

Ranbaxy Laboratories touched an intraday high of Rs 284.35 and an intraday low of Rs 275.55. At 1:55 pm, the share was quoting at Rs 280.25, up Rs 5.85, or 2.13%

Dr Reddys Laboratories touched an intraday high of Rs 820.85 and an intraday low of Rs 789. At 1:52 pm, the share was quoting at Rs 816, up Rs 29.60, or 3.76%.

DLF touched an intraday high of Rs 385.70 and an intraday low of Rs 372. At 1:54 pm, the share was quoting at Rs 385.30, up Rs 15.35, or 4.15%.

HDIL (Rs 263) has come a long way from a dismal low of Rs 63 it had touched early March this year.

The stock can move up further. A rise to Rs 320, and in the event of a strong breakout there, a surge to Rs 360 -375 is possible.

Eveready Industries has near term target of Rs 50, says SP Tulsian, Investment Advisor, on CNBC-TV18

Investors with some appetite for risk can pick up realty stocks at slight declines. Though a sustained upmove may remain elusive, a few sharp rallies are likely in select stocks in the realty space.

One has to be selective and choose stocks of firms with a fairly good track record.

Shriram Transport Finance Company Limited has reported a decent surge in net profit. The Company has posted a profit after tax of Rs 164.41 crore for the quarter ended June 30, 2009 on a total income of Rs 1034.96 crore. For the corresponding quarter last fiscal, the company had posted a net profit of Rs 143.61 crore.

The stock, which tumbled to Rs 291 following the announcement of results, is trading nearly 2% down at Rs 301 now.

Havells India touched an intraday high of Rs 315.65 and an intraday low of Rs 287.05. At 12:52 pm, the share was quoting at Rs 310.50, up Rs 25.15, or 8.81%

Mangalore Refinery and Petrochemicals, MRPL touched an intraday high of Rs 84.50 and an intraday low of Rs 82.80. At 12:47 pm, the share was quoting at Rs 83.55, up Rs 1.25, or 1.52%.

Sterlite Industries was among the major gainers on the Sensex. It touched an intraday high of Rs 658.85 and an intraday low of Rs 637. The share was quoting at Rs 655.50, up Rs 22.80, or 3.60%.

With crude oil prices surging higher on hopes of a rise in demand, there is a likelihood of Cairn India rising sharply from current levels. One holding the stock can stay invested in the counter and look at buying more at dips.

Firstsource Solutions touched an intraday high of Rs 25.55 and an intraday low of Rs 23.10. At 1:18 pm, the share was quoting at Rs 25.45, up Rs 2.40, or 10.41%.

Bharti Airtel has touched an intraday high of Rs 440 and an intraday low of Rs 410. At 12:39 pm, the share was quoting at Rs 420.20, up Rs 13.25, or 3.26%.

RComm (cmp Rs 276) can move on to Rs 282 - 285 this afternoon if the market's recovery gathers a bit of momentum. One holding the stock with a short or medium term view can continue to stay invested.

Bosch Limited's net profit slipped to Rs 1882.70 million for the quarter ended June 30, 2009 from Rs 2197.20 million for the quarter ended June 30, 2008. Total income decreased from Rs 13356.70 million for the quarter ended June 30, 2008 to Rs 13113.30 million for the quarter ended June 30, 2009. The thinly traded stock is up 2.85% at Rs 3536 now.

Tulip Telecom touched an intraday high of Rs 982.15 and an intraday low of Rs 920. At 12:36 pm, the share was quoting at Rs 968, up Rs 57.80, or 6.35%...

Mahindra Lifespace Developers touched an intraday high of Rs 294.95 and an intraday low of Rs 287. At 12:27 pm, the share was quoting at Rs 290.80, up Rs 5.40, or 1.89%.

S Kumars Nationwide touched an intraday high of Rs 42.10 and an intraday low of Rs 39.25. At 12:19 pm, the share was quoting at Rs 40.80, up Rs 1.85, or 4.75%.

Most of the markets in the Asian region are trading sharply higher today on strong earnings and some better than expected economic reports. However, the mood on the Indian bourses remains a bit cautious ahead of some key results, including that of Reliance Industries. Though a rebound from lower levels is not ruled out, the undertone is likely to remain somewhat cautious right through the session today.

CESC Limited has posted a net profit of Rs 105 crore for the quarter ended June 30, 2009 as compared to Rs 94 crore for the quarter ended June 30, 2008. The stock is up with a modest gain at Rs 292. Long term investors can hold the stock with a stop loss near Rs 165, its 52-week low.

Avoid DLF, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Expect higher level in Punj Lloyd, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

One holding capital goods heavyweights L&T and BHEL can stay invested in them for long term.

There may be a few weak spells for these stocks in the near term and one can use sharp dips to increase exposure to the counters.

Avoid India Cements, Ambuja Cements, says Sanju Verma, CEO-Institutional Business, Proactive Universal Group, on CNBC-TV18

SBI (cmp Rs 1703) can be bought for intra-day if it recovers to Rs 1722 and stays firm for a while. One holding the stock with a long term view can stay invested and buy more of it at sharp declines. The stock is likely to face resistance around Rs 1810. A breach there could lift the stock past Rs 1900.

GMR Infrastructure (cmp Rs 141) can move up to Rs 155 and a strong breakout there could result in a surge to Rs 170 or even higher. The stock can be retained with a stop loss at Rs 115 - 120 levels.

Buy Idea Cellular on dip, says Sukhani, Technical Analyst, on CNBC-TV18

Tata Steel looks cheap, says Sanju Verma, CEO-Institutional Business, Proactive Universal Group, on CNBC-TV18

Gujarat State Petronet, GSPL touched a 52-week high of Rs 67.60. At 10:26 am, the share was quoting at Rs 67.20, up Rs 4.10, or 6.50% It was trading with volumes of 2,078,818 shares. Yesterday the share closed up 3.10% or Rs 1.90 at Rs 63.10.

Ambuja Cements has posted a net profit for the period of Rs 324.65 crore for the quarter ended June 30, 2009 as compared to Rs 577.02 crore for the quarter ended June 30, 2008. Total Income has increased from Rs 1610.57 crore for the quarter ended June 30, 2008 to Rs 1916.58 crore for the quarter ended June 30, 2009. The stock, currently trading at Rs 95, can be picked up at slightly lower levels for long term.

Indian Oil Corporation - Sell below 527 with a stop loss of 531

Bharat Forge has posted a net profit of Rs 9.60 million for the quarter ended June 30, 2009 as compared to Rs 265.60 million for the quarter ended June 30, 2008. Total Income has decreased from Rs 6494.50 million for the quarter ended June 30, 2008 to Rs 3638.20 million for the quarter ended June 30, 2009. Despite the fall in earnings, the Bharat Forge stock is up by 3.6% at Rs 165. One holding the stock with a long term view can stay invested for now. Fresh buying can be considered at sharp dips.

Axis Bank - Buy above 898 for the targets of 912 / 918 / Higher with a stop loss of 890

Hindalco - Buy above 89 for the target of 91 / 93 / Higher with a stop loss of 88

The market opened on a positive note this morning on strong global cues. The Sensex opened 41 points up at 15,272 and vaulted to 15,418.61 in a flash and is up by 117 points or 0.77% at 15,348 at present.

The Nifty has gained 33 points or 0.75% at 4556.75.

Idea Cellular, Suzlon, Infosys, Unitech, RPower, Cairn, DLF, Nalco, Sterlite and Tata Steel are the top gainers.

Suzlon Energy: Buy above 97.30 for the target of 99 / 101 / higher with a stop loss of 96.30