BSE NSE Market Voices 30 July 2009

BSE NSE Market Voices 30 July 2009

Shrugging off a listless and somewhat negative start, the market rallied sharply in afternoon trade and signed off on a firm note today.

The positive close in most of the Asian markets, a firm trend on the European bourses and higher U.S. index futures kept the sentiment firm.

A series of impressive report cards from India Inc., and hectic short-covering due to derivatives expiry also contributed to the surge. The Sensex ended at 15,374.37 (provisional) with a gain of around 200 points or 1.32%. The BSE barometer, down over 100 points at 15,065 at one state, rose to 15,409.91 by late afternoon. The Nifty closed at 4570.80, off the day's high of 4582.35, with a gain of 57.30 points or 1.27%.

IT stocks, led by heavyweights, Infosys, TCS and Wipro, moved up sharply. SBI's strong results buoyed up bank stocks. FMCG and realty stocks too had a niced ride up the charts. PSU oil marketing stocks were in demand. ower, metal and pharma stocks were a bit subdued today.

Buying remained stock specific in midcap and smallcap segments. The market breadth was fairly strong at close.

Zee News can add Rs 50: Rajen Shah, CIO, Angel Broking, on CNBC-TV18

Strong results buoyed up Bhushan Steel to Rs 753.50 this afternoon. The stock is up by nearly 4.5% at Rs 746.25 now. One can continue to hold this metal stock for solid gains over a short to medium term. Fresh buying can be considered at declines.

Max India has slipped by over 2% on weak results. The company has posted a net profit of Rs 2.10 million for the quarter ended June 30, 2009 as compared to Rs 136.10 million for the quarter ended June 30, 2008. Total income has decreased from Rs 1188.60 million for the quarter ended June 30, 2008 to Rs 848.70 million for the quarter ended June 30, 2009.

Back on track: Hindustan Unilever touched an intraday high of Rs 280.25 and an intraday low of Rs 266.25. The stock was quoting at Rs 278.50, up Rs 10.45, or 3.90%.

Stock split effect: GMR Infrastructure touched an intraday high of Rs 144.90 and an intraday low of Rs 138.55. The stock was quoting at Rs 144.50, up Rs 3.10, or 2.19%. GMR Infrastructure Ltd has informed that the Board of Directors of the Company has accorded approval for sub-division of all its equity shares of Rs 2/- each into 2 equity shares of Re 1/- each, subject to the approval of members of the Company at the forthcoming Annual General Meeting. The GMR Infrastructure stock is currently trading at Rs 144.

Smart move: Ashok Leyland touched an intraday high of Rs 36.80 and an intraday low of Rs 34.50. The stock was quoting at Rs 36.35, up Rs 1.65, or 4.76%

Among major gainers: HDFC touched an intraday high of Rs 2,448 and an intraday low of Rs 2,362.90. The stock was quoting at Rs 2,444.15, up Rs 81.25, or 3.44%.

Ashok Leyland touched an intraday high of Rs 36.80 and an intraday low of Rs 34.50. The share was quoting at Rs 36.35, up Rs 1.65, or 4.76%.

It was trading with volumes of 1,923,930 shares. Yesterday the share closed down 0.86% or Rs 0.30 at Rs 34.70.

Mahindra & Mahindra has posted a net profit of Rs 4008.50 million for the quarter ended June 30, 2009 where as the same was at Rs 1593.00 million for the quarter ended June 30, 2008. Total Income is Rs 42661.60 million for the quarter ended June 30, 2009 where as the same was at Rs 33318.00 million for the quarter ended June 30, 2008.

The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance Ltd and Punjab Tractors Ltd which merged with the Company effective, February 01, 2008 on August 11, 2008 and August 01, 2008 on February 16, 2009 respectively. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter.

Rural Electrification Corporation touched a 52-week high of Rs 203.80. The share was quoting at Rs 198.50, up Rs 10.90, or 5.81%. It was trading with volumes of 1,120,082 shares, compared to its five-day average of 543,125 shares, an increase of 106.23%. Yesterday the share closed up 4.86% or Rs 8.70 at Rs 187.60.

Educomp Solutions Limited has posted a net profit of Rs 362.702 million for the quarter ended June 30, 2009 as compared to Rs 167.743 million for the quarter ended June 30, 2008. The stock is trading flat at Rs 4162 now. One with a good appetite for risk can consider buying the stock at 10 - 20% down from current levels.

52-week high: Hexaware Technologies touched a 52-week high of Rs 68.25. The stock was quoting at Rs 67.20, up Rs 4.70, or 7.52%.

Riding on large volumes: ISMT touched an intraday high of Rs 35.90 and an intraday low of Rs 31.20. The stock was quoting at Rs 34.50, up Rs 3.10, or 9.87%.

Touching a new high: UltraTech Cement touched a 52-week high of Rs 827. The stock was quoting at Rs 827, up Rs 36.25, or 4.58%.

Top gainer: TCS is top gainer on the Sensex. It touched an intraday high of Rs 520 and an intraday low of Rs 496.05. The share was quoting at Rs 518.40, up Rs 18.60, or 3.72%.

Buy Corporation Bank, says Sharekhan in its report on CNBC-TV18

Mundra Port & Special Economic Zone Limited has posted a net profit of Rs 1707.551 million for the quarter ended June 30, 2009 as compared to Rs 968.030 million for the quarter ended June 30, 2008. Total income has increased from Rs 2709.880 million for the quarter ended June 30, 2008 to Rs 3213.557 million for the quarter ended June 30, 2009. Reacting positively to the numbers, the Mundra Port stock has shot up to Rs 562, gaining nearly 3%.

Buy Cipla for the target of Rs 286, says KRChoksey in its report on CNBC-TV18

South Indian Bank for the target of Rs 135, says Angel Broking in its report on CNBC-TV18

Hold Tech Mahindra for the target of Rs 868, says Reliance Money report on CNBC-TV18

SBI's net profit rose to Rs 2,330 crore for the quarter ended 30 June 2009. The bank has posted a net profit of Rs 1640 crore in the corresponding quarter last fiscal. The stock has ralled sharply following the release of results and is up by 3% at Rs 1706 at present.

Patni hits 52-week high: The stock touched a 52-week high of Rs 305. The stock was quoting at Rs 304.50, up Rs 13.30

Some reasonably good quarterly results have also contributed to the positive mood now.

Riding on order numbers: J Kumar Infra has touched an intraday high of Rs 120 and an intraday low of Rs 114. The stock was quoting at Rs 120, up Rs 3.10, or 2.65%.

HPCL moves up smartly: The stock has touched an intraday high of Rs 347.80 and an intraday low of Rs 336.90. The stock was quoting at Rs 345.65, up Rs 13.65, or 4.11%.

Top gainer: BPCL was top gainer on the Nifty. It touched an intraday high of Rs 485.25 and an intraday low of Rs 472. The stock was quoting at Rs 484.05, up Rs 15.15, or 3.23%.

Indian Oil Corporation Limited has posted a net profit of Rs 36828.30 million for the quarter ended June 30, 2009 where as the same was at Rs 4151.30 million for the quarter ended June 30, 2008. However, the figures are not comparable as figures for the quarter ended June 2008 do not include the figures of Bongaigaon Refinery and Petrochemicals Ltd (BRPL), which was merged with IndianOil on March 25, 2009. The Indian Oil stock is up by over 3% at Rs 551 now.

Corporation Bank reported a 41.75 per cent increase in net profit in the first quarter of the current fiscal at Rs 261.25 crore (Rs 184.30 crore). The treasury income for the quarter under review stood at Rs 185 crore (Rs 5 crore).

Smart gains: Welspun Gujarat has touched an intraday high of Rs 234.10 and an intraday low of Rs 224.50. The stock was quoting at Rs 234.10, up Rs 9.05, or 4.02%.

Godrej Industries reported a 97 per cent drop in the standalone net profit to Rs 58 lakh in the first quarter of this financial year against Rs 17 crore recorded in the same period last year. Sales fell 19 per cent to Rs 203 crore (Rs 252 crore).

One can go in for IRB Infrastructure with a long term view. The stock, currently traded at Rs 184, could give fairly decent returns even over a short run. Intra-day traders with a great appetite for risk can try this stock if it rises to Rs 186 and trades firm for a while.

Nifty has strong support at 4410, says Nirmal Bang's report on CNBC-TV18

IT major Oracle Financial Services Limited has reported a sharp rise in earnings. The company has posted a net profit of Rs 1522.20 million for the quarter ended June 30, 2009 as compared to Rs 921.80 million for the quarter ended June 30, 2008. Total income has increased from Rs 4628.00 million for the quarter ended June 30, 2008 to Rs 5456.20 million for the quarter ended June 30, 2009. The stock has spurted 3.65% to Rs 1452 following the announcement of results.

Hindustan Petroleum Corporation has turned the corner in the first quarter of this fiscal by posting a net profit of Rs 649.12 crore, compared with a loss of Rs 888.12 crore in the same period last year.

Sensex has support at 15145/15056, says Hem Securities' report on CNBC-TV18

Punjab National Bank has reported a 62 per cent increase in net profit for the quarter ended June 30, at Rs 832.05 crore (Rs 512.40 crore). A sharp increase in treasury income coupled with robust credit growth helped the bank’s bottomline growth.

Rico Auto touched an intraday high of Rs 31.70 and an intraday low of Rs 27.60. The share was quoting at Rs 28, down Rs 2.25, or 7.44%.

It was trading with volumes of 829,694 shares. Yesterday the share closed up 10% or Rs 2.75 at Rs 30.25.

Power Grid Corporation (Rs 120) is a good one for medium to long term.

One long in the stock can stay invested with a stop loss at Rs 100 - 105 levels for now.

Tata Steel has reported a 47 per cent drop in standalone net profit at Rs 790 crore in the first quarter ended June 30, 2009, against Rs 1,488 crore logged in the same period last year mainly due to the sharp spike in imported coal cost.

Asian stock markets fell on Thursday, with Chinese shares leading the decline amid concerns the recent rally was overdone. Shanghai's benchmark lost 1.2 percent to 3,228.75, while Hong Kong's Hang Seng dropped 71.69, or 0.4 percent, to 20,063.81. In Japan, the Nikkei 225 stock average shed 10.75, or 0.1 percent, to 10,102.49. Markets in South Korea, Taiwan and Singapore were down about 1 percent or less.

Buy Bank of India for the target of Rs 350. The stock has upside potential of 10%

Hindustan Petroleum Corporation, HPCL touched an intraday high of Rs 347.80 and an intraday low of Rs 336.90. The share was quoting at Rs 345.65, up Rs 13.65, or 4.11%.

It was trading with volumes of 161,838 shares. Yesterday the share closed up 0.85% or Rs 2.80 at Rs 332.

Biocon Ltd: Sell below 212.20 with a stop loss of 214, ICICI Direct

GE Shipping has slipped by around 2.2% to Rs 246.25 after edging up marginally earlier this morning.

The company has informed that it has entered into an agreement with the Shipyard to cancel one of the new building Kamsarmax bulk carriers scheduled for delivery in Q1 FY 2012.

With the said cancellation, the company's order book stands reduced to 7 vessels - 2 Supramax bulk carriers, 3 Kamsarmax bulk carriers, and 2 Suezmax tankers, now.

ABB: Sell below 705 with a stop loss of 710, ICICI Direct

Power Grid Corporation: Buy above 116 for the target of 118.50 / 120 / higher with a stop loss of 115 , ICICI Direct

Hero Honda has pared its gains after trading firm for a while. After a near 3% surge, the stock is up just modestly at present.

The firm's net profit zoomed over 83% to Rs 500.11 crore in the quarter ended June 2009 from a net profit of Rs 272.87 crore it had posted in the corresponding quarter last year. Sales rose by around 34% to Rs 3811.05 crore in the quarter ended June 2009 as against Rs 2843.53 crore during the quarter ended June 2008.

One holding the stock can stay invested. Short term traders can book some profits at rallies and re-enter later at dips.

Bank of Baroda: Buy above 423.20 for the target of 429 / 433 / higher with a stop loss of 420

Nifty Futures: Buy above 4495 for the targets of 4525 / 4555 / higher with a stop loss of 4493

Buy Fortis Healthcare for the target of Rs 115. The stock has upside potential of 13%

Realty firm Ackruti City Limited has posted a net profit of Rs 72 million for the quarter ended June 30, 2009 as compared to Rs 1714.10 million for the quarter ended June 30, 2008.

Total income of the firm has decreased from Rs 2410.10 million for the quarter ended June 30, 2008 to Rs 461.90 million for the quarter ended June 30, 2009.

The stock is currently trading at Rs 585, up 2.75%. It is advisable to defer any plans of taking fresh exposure at the counter.

10:11 AM: Buy Gujarat Gas for the target of Rs 371. The stock has upside potential of 15%

The market is off to a cautious start this morning amid none too strong global cues.

Buy Gateway Distriparks for the target of Rs 109. The stock has upside potential of 18%

Stocks to watch : Sesa Goa, after India's top private-sector iron ore exporter posted a fall in its net profit by a third to Rs 422 crore in the June quarter.

Power Grid Corp of India after the state-run central transmission utility showed a 79 per cent jump in its April-June net profit to Rs 547 crore.

Provogue India Ltd after it said its board will meet on Aug. 14 to consider a buyback of shares.

Quarterly Results: DLF Ltd, Mahindra and Mahindra Ltd, State Bank of India, Tata Chemicals Ltd, Indian Oil Corp Ltd.

ICICI Bank: Technically this stock can slip anytime if unable to hold 740

Rupee opened at Rs 48.56 per dollar versus Rs 48.41 yesterday.

Reliance Industries: One can again go short with suitable stop loss and expect this stock to hit below 1850 marks

L&T: Trade short with stop loss just above 1480

Nifty can go to test 4400 to 4350 marks