BSE NSE Market Voices 31 July 2009

BSE NSE Market Voices 31 July 2009

The Sensex closed at a 13-month high today as blue chip stocks gained in strength on firm global markets, strong results and recovery hopes.

Despite taking a breather or two during the afternoon session, the bulls remained firmly rooted to the ring today.

The Sensex ended the session at 15,694 (provisional) with a big gain of 306.04 points or 1.99%. The benchmark hit a high of 15,732.81 today.

The Nifty closed at 4649.15, up 77.70 points or 1.7%. Oil, FMCG, bank, IT and metal stocks closed on a firm note.

Auto, capital goods and power stocks gave up most of their gains on profit taking. Realty stocks had a good spell but turned easy in late afternoon trade and ended well off their highs. Pharma stocks displayed a mixed trend.

Hindalco shot up by over 8.5%. ONGC and Tata Motors gained more than 6%. SBI, RIL, ITC, Infosys, HDFC, Sun Pharma, Sterlite, HDFC Bank, Tata Power, HUL and Tata Steel closed with sharp gains. Nalco, Ambuja Cements, Idea Cellular, Ranbaxy and Reliance Capital moved up sharply.

Bharti Airtel, RComm, Jindal Steel, Unitech, BPCL, Hero Honda, HCL tech, TCS, Unitech, Cipla and DLF ended on a weak note.

After enjoying some bright moments in the positive territory, several midcap and smallcap stocks drifted lower on profit taking. The market breadth was marginally positive at close.

Hold KPIT Cummins, says Prasad Kushe of Equitytrendz.com on CNBC-TV18

Neyveli Lignite has target of Rs 188, says Prasad Kushe of Equitytrendz.com on CNBC-TV18

One can consider buying TVS Motor (cmp Rs 59) at sharp declines. The stock is likely to face some resistance near Rs 65, but a strong breakout there could result in a rise to Rs 72 - 75. For now, a stop loss can be placed near Rs 48.

Balrampur Chini has target of Rs 145-150, says Hemang Jani, Senior Vice-President at Sharekhan on CNBC-TV18

Mahindra & Mahindra has upside potential of 18-20%, says Hemang Jani, Senior Vice-President at Sharekhan on CNBC-TV18

Orient Paper looks cheap, says Hemang Jani, Senior Vice-President at Sharekhan on CNBC-TV18

ABB has posted a net profit of Rs 836.084 million for the quarter ended June 30, 2009 as compared to Rs 1318.102 million for the quarter ended June 30, 2008. The company's total income decreased from Rs 16376.209 million for the quarter ended June 30, 2008 to Rs 15258.705 million for the quarter ended June 30, 2009. The stock is up by around 2% at Rs 701. One holding the stock with a long-term plan can stay invested with a stop loss near Rs 550.

Buy Patni Computer, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Banking space looks positive, says Amit Khurana, Co-Head - Institutional Equities Head-Research, on CNBC-TV18

Punj Lloyd (Rs 245) is a good stock for medium to long term. One long at the counter can stay invested with a stop loss at Rs 180 - 190 levels. The stock is likely to move up to Rs 290 - 300. One can book some profits there as the stock is likely to face some stiff resistance there.

Hero Honda looks better, says VK Sharma of Anagram Stock Broking on CNBC-TV18

Mahindra & Mahindra can re-test Rs 1001, says Hemant Thukral of Asian Markets Securities on CNBC-TV18

Enter in IT stocks on every dip, says Hemant Thukral of Asian Markets Securities on CNBC-TV18

Rural Elect has target of Rs 225, says Hemant Thukral of Asian Markets Securities on CNBC-TV18

Prefer Sterlite to Nalco, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Banking space looks positive, says Amit Khurana, Co-Head - Institutional Equities Head-Research, on CNBC-TV18

Alstom Projects India proposes to enter into a joint venture with Bharat Forge Ltd in the country

Amara Raja Batteries' net profit for the first quarter ended June 30, 2009 has increased by 185 per cent to Rs 42.57 crore as compared with Rs 14.92 crore in the corresponding quarter of last fiscal

Syndicate Bank has reported a sharp rise in its net profit for the quarter ended 30 June 2009. The PSU bank has posted a net profit of Rs 2615.60 million for the quarter ended June 30, 2009 as compared to Rs 878.90 million for the quarter ended June 30, 2008. Its total income increased from Rs 22788.00 million for the quarter ended June 30, 2008 to Rs 29748.60 million for the quarter ended June 30, 2009. The stock has spurted over 5% to Rs 84.20 following the announcement.

Major gainer: Nalco was among the major gainers on the Nifty. It touched an intraday high of Rs 305.70 and an intraday low of Rs 294. The share was quoting at Rs 305.05, up Rs 13.30, or 4.56%.

Stock zooms: ONGC touched an intraday high of Rs 1,161.90 and an intraday low of Rs 1,095. The stock was quoting at Rs 1,156.10, up Rs 56.55, or 5.14%...

SBI leads on Nifty: State Bank of India was top gainer on the Nifty. It touched an intraday high of Rs 1,810 and an intraday low of Rs 1,740. The share was quoting at Rs 1,796.70, up Rs 73.90, or 4.29%.

Minting money: Dena Bank touched an intraday high of Rs 56.65 and an intraday low of Rs 54.30. The stock was quoting at Rs 56.40, up Rs 2.25, or 4.16%.

Moving up smartly: Tata Motors touched an intraday high of Rs 414.05 and an intraday low of Rs 399. The stock was quoting at Rs 412.80, up Rs 17.40, or 4.40%.

52-week high: Patni Computer Systems touched a 52-week high of Rs 368.45. The stock was quoting at Rs 357.90, up Rs 30.15, or 9.20%.

Softpro Systems Ltd has informed that subsequent to the definitive agreement entered with the Shareholders of Cura Risk Management Software (Proprietary) Ltd, South Africa for acquiring its 100% equity stake, the company has completed all the formalities pertaining to such acquisition of CURA, South Africa. The thinly traded stock is down by around 3.6% at Rs 210 now.

IT stocks Infosys, TCS and Wipro are likely to gain further over a short run. Investors can look at buying these stocks at every sharp decline.

Oracle Financial Services and Tech Mahindra can also be tried at declines.

PTC has support at Rs 80, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Buy Tata Motors at Rs 350-360, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

SBI may head upto Rs 1850, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Welspun Gujarat can touch Rs 280, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Patni has target of Rs 400, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Bajaj Hindusthan can test Rs 225, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

One can stay invested in fertilizers stocks Nagarjuna Fertilizers, Tata Chemicals, Chambal Fertilizers and GSFC. RCF also looks good. Small quantities can be picked up at declines.

Wipro - like its larger rivals TCS and Infosys - is said to be keenly eyeing the Unique Identification (UID) Project and other large Government contracts.

Reliance Infrastructure has clocked 25 per cent higher net profit for the first quarter at Rs 317 crore against Rs 253 crore in the year ago quarter.

State Bank of India has posted a 42 per cent rise in net profit at Rs 2,330 crore for the first quarter ended June 30, aided by a robust growth in ‘other income’. The bank had reported a net profit of Rs 1,641 crore in the year-ago period.

A jump in treasury income and fee-based income enabled Indian Overseas Bank to report a 17.9 per cent growth in net profits to Rs 301.7 crore for the first quarter of 2009-10 compared with Rs 255.9 crore for the same period last year.

11:45 AM: The Nifty (4651) could move on to 4685 or even higher today if global markets continue to display strength.

On the downside, it has support at 4620 and weakness there could result in a fall to 4590 or further down.

Jain Irrigation Systems Limited has reported a sharp jump in net profit.

The company has posted a net profit of Rs 555.90 million for the quarter ended June 30, 2009 as compared to Rs 295.60 million for the quarter ended June 30, 2008. Total income has increased from Rs 4761.00 million for the quarter ended June 30, 2008 to Rs 5731.20 million for the quarter ended June 30, 2009. The stock is up 1.3% at Rs 696 now.

Reliance Infrastructure has gained over 2.5% on fairly strong results.

One holding the stock can stay invested and look to buy more in small quantities at declines. The stock looks poised for further upmove even over a near run.

Top gainer: Sterlite Industries was the top gainer on the Sensex. It touched an intraday high of Rs 655 and an intraday low of Rs 637.45. The share was quoting at Rs 648.80, up Rs 22.10, or 3.53%.

Hindalco surges: Hindalco Industries touched an intraday high of Rs 98.70 and an intraday low of Rs 94.65. The stock was quoting at Rs 98, up Rs 4.20, or 4.48% on the NSE.

Nifty has resistance at 4700, says Anagram report on CNBC-TV18

Sell Nalco below 287 with a stop loss of 289

Buy SBI above 1730 for the targets of 1750 / 1770 / Higher with a stop loss of 1720

Buy Power Finance Corp above 234 for the targets of 237 / 239 / Higher with a stop loss of 232

DLF's net profit has declined sharply by as much as 85.7% to Rs 100.40 crore in the quarter ended June 2009 from a net profit of Rs 700.99 crore the company had recorded in the corresponding quarter last year.

Sales declined 67.31% to Rs 417.97 crore in the quarter ended June 2009 as against Rs 1278.61 crore during the previous quarter ended June 2008.

The stock, however, is up in the positive territory at Rs 411 with a gain of 2.2%. The stock is likely to move in a highly volatile manner today. One with a very low appetite for risk would do well to stay away from the counter for now.

Buy IOC above 560 for the targets of 570 / 575 / Higher with a stop loss of 555

Nifty Futures: Buy above 4570 for the targets of 4599 / 4650 / higher with a stop loss of 4568

Moser Baer Limited has posted a net profit of Rs 2.76 crore for the quarter ended June 30, 2009 as compared to net loss of Rs 103.98 crore for the quarter ended June 30, 2008. The company's total income increased from Rs 496.88 crore for the quarter ended June 30, 2008 to Rs 563.40 crore for the quarter ended June 30, 2009. The stock is up 2.5% at Rs 88.50 now. One holding the stock can stay invested.

The market got off to a buoyant start this morning on strong global cues.

As blue chip stocks vault higher, the Sensex shot up to 15,663.96, recording a hefty gain of 276 points or 1.8% in a flash.

The Nifty has gained 75.45 points or 1.65% at 4646.90.

Sterlite, Tata Motors, SBI, DLF, L&T, Tata Steel, M&M, Reliance Infra, ONGC, Sun Pharma and RComm have gained 2% - 4%.

Hero Honda, BHEL, Infosys, Hindalco, RIL, ITC, ICICI Bank, Maruti Suzuki and Grasim have also risen sharply.

Stocks to watch: Indian infrastructure developer Lanco Infratech Ltd after three sources told Reuters it opened its $100 million share sale to institutional investors.

Television broadcaster TV Today after it said its board has approved spinning off its radio business.

ITC: Buy and hold for massive rise in coming months. For today's trade buy with a stop loss of 238.

TCS: Buy this stock with a stop loss of 524 for the target towards 550 marks

Maruti: It may move towards 1600. Buy with a stop loss of 1370

Support for Nifty is at 4500 Resistance for Nifty is at 4700-4789 The support for Sensex is at 15000 Resistance for Sensex is at 15600-16046