Market Khabar 13th Sept 2010

Buoyed by better-than-expected US data, markets across the globe had a positive week during the week ended. Ignoring the surge in food inflation and flood situation in many parts of the country, benchmark indices closed at a 32-month high.

On the BSE, the Sensex surged towards 19,000-levels closing at 18,800 gaining 579 points and the Nifty on the NSE ended 161 points higher at 5,640. The indices are now only 11 per cent below their all-time high. Market breadth continued to be positive with heightened activity in many midcap and smallcap counters. Stick to stocks that have stood the test of time.

Weekend IIP numbers were pleasant surprise with exceptional performance from capital goods sector. Despite the base effect, analysts feel that the economy is slowly inching towards high-growth path.

However, the faster-than-expected growth has also revived expectations of monetary tightening by RBI in its next review. Barring any surprises from the global front, advance tax numbers and expectations over second quarter numbers may determine near term direction of markets.

For the week ahead, chartists predict a trading range of 18,520 and 19,180 for the Sensex and 5,500 and 5,780 for the Nifty. Strong resistance can come at 18,960 and 19,100 and 5,685 and 5,740. Immediate supports are at 18,670 and 18,540 and 5,610 and 5,560. Stock markets are becoming more and more volatile. The stock market reacts to breaking news by shooting stock prices higher one day, then pounding them lower the next. So, be flexible.

FUTURES & OPTIONS
Mirroring the strong bullish undertone, robust volumes were seen in the derivative segment. Sentiment indicators like open interest, implied volatility, put/call ratio and VIX reflect a positive undercurrent. Open interest build up in the Nifty5700 strike opti-ons reflects bullish trend in the market currently.

Metal stocks are back in the limelight. Tata Steel, JSPL and Hindalco look good for targets of Rs 650, Rs 800 and Rs 210 in next few weeks. Capital goods stocks BHEL, L&T, Crompton Greaves, BGR Energy, Voltas and Cummins can touch targets of Rs 2,650, Rs 1,975, Rs 340, Rs 900, Rs 255 and Rs 800 in the near term.

US restrictions on outsourcing is unlikely to hurt IT majors significantly. Analysts feel that present sloganeering is only for election gains. Accumulate on declines good counters like Infosys, TCS, HCL Tech and Wipro. Disclosure of Satyam’s restated results may give fillip to stock price of Tech Mahindra.

Led by SBI, banking counters were on a roll. Further gains are likely in BOI, BOB, Corporation Bank, ICICI Bank, IDBI Bank, Kotak Bank, Federal Bank and PNB. Ride the boom in the sector with trailing stop loss.

Neglected sectors such as fertilisers, sugar and paper are getting a‘re-look’ from savvy punters. Stories of decontrol, price revisions are doing rounds. Adopt buy on rumour; sell on news strategy. Among the stocks looking good are Chambal Fertiliser, Dabur, Godrej Industries, HCC, IDFC, Noida Toll, Piramal Health, Opto Circuits, United Spirits and Onmobile.

A good trader need to have — A chronic inability to accept things at face value, to feel continuously unsettled, and to have humility.

STOCK SCAN
Micro Technologies Ltd is one of the leading electronic security devices company with product diversity in various segments as vehicle, premises, mobile, other assets and now diversified into energy, health and agriculture also. The company has been listed as one of the best under $1 billion firms by Forbes. Book value of `281, trailing 12 month EPS of `45 and high OPM of 39 per cent make the stock good buy for target price of `350 in medium term.

Mahindra Forgings Ltd, a M&M group company, is one of the finest and amongst the top three forging companies in India, with an installed capacity of 42,000 tonnes. It is the largest supplier of forged components like crankshafts and steering knuckles, commanding a 40 per cent market share. Buy on declines for a price target of `200.

Analysts predict turnaround results in second quarter from Heritage Foods. Reports of improvement in the operational performance of retail division and likely demerger of it are indicated by company insiders. Stay invested for further gains.

Apart from being the second largest phosphatic player in the country, Coromandel International has made impressive strides in specialty nutrients and crop protection chemicals. Buy on declines for a target price of `900 in medium term. Select midcap companies like Crew BOS, Rane Holdings, Greaves Cotton, TIL and Foods & Inns are witnessing good buying from savvy market players. Buy on declines for steady gains in medium term. Renewed buying is likely to be seen in Vishnu Chemicals, AP Petro and Pochiraju Industries. Stay invested for further gains.

C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

Source : Deccanchronicle.com

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Market Khabar 23 Aug 2010

Showing good resilience against uncertain global cues markets closed near their 30-month highs. On the BSE the Sensex closed 235 points higher at 18,402 and the Nifty on the NSE added 79 points to close above the psychological level of 5,500 at 5,531.

Market breadth continued to be good with frenetic activity in several midcap and smallcap stocks. Good monsoon, easing food inflation and strong FII inflows kept the sentiment positive. Delay in rollout of GST and DTC may have modest impact on markets feel analysts.

Recent gains in high priced IPO’s like Jubilant Foods, SKS Micro, Bajaj Corp and others in too short a time frame show build up of “bubble” in some pockets of the market. Repetition of Newton’s Law not ruled out.

It is interesting to observe that during the week ended while China, India, Brazil, Sri Lanka and other emerging markets recorded hefty gains; France, UK, Germany and US markets ended with losses after some downbeat economic reports triggered fears of “double dip” recession.

Decoupling theory is back in limelight. Though macro economic data is improving, key risk for Indian market is from ‘foreign’ fear market players. Chartists predict trading band of 18,120-18,790 for the Sensex and 5,410-5,680 for the Nifty. Supports for the week are at 18,240 and 18,040 and 5,480 and 5,420. Expect resistance to indices at 18,520 and 18,620 and 5,580 and 5,660. Short term outlook will turn negative if indices trade below 18,200 and 5,420 levels.

FUTURES & OPTIONS
Ahead of the settlement week derivatives segment witnessed robust volumes. Turnover has crossed Rs1 lakh crore on three trading sessions reflecting rise in speculative activity.
Open interest is close to Rs 2 lakh inclusive of rollovers. Sentiment indicators like implied volatility, open interest, put/call ratio and VIX indicate volatile finish to the current series. Renewed buying interest was seen in FMCG and pharma stocks.
Aurobindo Pharma, Ranbaxy and Lupin look good for more gains. Buy Lupin cum split for “good” ex-split gains. Dabur, Marico and ITC are good bets for steady gains from current levels.

Banking and capital goods extended their recent gains on momentum buying. Slight “tiredness” seen in banking stocks after their recent “spectacular” run. Buy on dips. Likely clearance of Nuclear Liability Bill sparked buying in L&T, Siemens, APIL and BHEL.

Stay invested for present. Range bound activity was seen in IT, metals and realty. Metals look set to stage a strong comeback. Buy on declines Tata Steel, Hindalco and SAIL.

Stay invested in DLF, Unitech and IBREL. Underlying land valuations make Century and Bombay Dyeing good buys on declines. Mild selling was seen in power and telecom counters. After recent correction infra counters IVRCL, NCC, JP Associates and HCC look good for relief rally. Good accumulation seen in cement counters. Use corrections to buy ACC, Ambuja, Ultratech and Samruddhi. Among the side counters Financial Technologies, Noida Toll, BEL, Exide Inds, look good for short term gains.

STOCK SCAN
Sathavahana Ispat Ltd is engaged in the manufacturing of pig iron and metallurgical coke with cogeneration power. Pig iron is the basic raw material for foundry and engineering industries for making castings and engineering components.

With the significant growth in the main user industries like automobiles and construction, pig iron prices are moving upwards again. Despite modest decline in turnover, integration of operations helped the company post 107 per cent increase in net profit in Q1.

UK-based Stemcor, world’s largest steel trading firm had invested at Rs 60 per share for nearly 15 per cent stake and is reportedly not averse to hiking its stake in the company. Buy at current levels for target price of Rs 85 in the short term.

After long consolidation heightened activity seen in Vishnu Chemicals and Brigade Enterprises. Vishnu Chemicals manufactures chromium and other specialty chemicals used in pharmaceutical, pigments, dyes, metallurgy, tanning, adhesives and animal feed industries.

Turnaround Q1 performance has triggered strong buying interest in the counter. Buy for target price of Rs 150 in near term. Brigade Enterprises is one of the leading property developers from Bengaluru.
Restructuring of debt and reports of unlocking of value from the subsidiary Brigade Hospitality Services Ltd has put the company in limelight. Spurt in volumes indicates “interested” buying. Buy for target price of Rs 200 in the coming months. Indian Hume Pipes, Lupin, Apollo Hospitals, KCP and Dhanuka Agri are all trading cum split. Buy on declines.

C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

Source : DC

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Market Khabar 12 July 2010

Markets moved towards new short term highs on the back of positive global cues, reports about good monsoon and IMF’s optimistic forecast about the Indian economy.

On the BSE, the Sensex closed 373 points higher at 17,834 and the Nifty on the NSE ended with 115 points gain at 5,352. Nearly all the sectoral indices ended in green reflecting strong bullish undercurrent. Market breadth was good and heightened action was seen in many midcap and smallcap counters.

Talk of decontrolling the sugar sector and allowing FDI in the retail sector have raised hopes about the government putting reforms agenda on the fast track. Soft food inflation data, improved indirect tax collections and tweaking of exposure margins for stock derivatives by the Sebi had a positive impact on the sentiment. US markets had the best week in a year, sending out an all-is-well hint to other global markets.

Barring any negative news, markets may scale new highs in the week ahead. Key data to watch in the coming week are IIP numbers on Monday, Infosys results on Tuesday and wholesale price inflation data on Wednesday.

For the week ahead, chartists predict a trading band of 17,540 and 18,360 for the Sensex and 5,230 and 5,540 for the Nifty. Resistances for the week are at 17,970, 18,040 and 18,180 and 5,395, 5,460 and 5,540. Expect support to the indices at 17,660 and 17,480 for the Sensex and 5,300 and 5,240 for the Nifty.

Futures & Options

With the indices edging towards new highs, robust volumes were seen in the derivatives segment. Open interest is close to record levels at Rs 1,36,680 crore. Sentiment indicators like open interest, put/call ratio, implied volatility and VIX signal strong move on upside. Buy Nifty-5,500 strike call option, suggest punters.

Ahead of first quarter numbers, Infosys touched a 52-week high. Rupee depreciation may help IT companies report better Q1 numbers, say industry insiders. Buy Wipro, HCL Tech and Rolta. Mphasis, Tech Mahindra and Tulip IT may also move up on news flow.

A renewed buying interest was seen in realty stocks on the reports of visible signs of revival in the housing demand. Further gains indicated in DLF, Unitech, HDIL and IBRL.

Telecom stocks are back in the demand following an upgrade by Credit Suisse. Buy on declines Bharti and Idea. Telecom ancillary provider GTL is tipped for the price target of Rs 600 in next few fortnights.

From the banking pack, PNB, HDFC Bank, IDBI Bank, Bank of Baroda and Canara Bank look good for higher levels.

Stronger Euro and Chinese factor may trigger bounce back in metal counters.

After the recent issue of preferential warrants to promoters at Rs 1,210, JSW Steel is reportedly placing equity to a foreign investor at Rs 1,480. Buy at current levels for a target price of Rs 1,350 in the near term.

Reports of industry majors eyeing tolling business after the finalisation of new toll policy by the government has triggered buying in Noida Toll. Punters tip an unexpected target of Rs 55 in the next few months. Infra firms are expected to benefit on the financing front with the introduction of tax-free bonds.

Stock scan

Ricoh India Ltd, a subsidiary of Japan-based Ricoh Co. Ltd, is a leading player in the area of imaging and document solutions; and networking input/output systems. It offers a wide range of digital copiers, multifunction printers and scanners. Sources indicate the possibility of parent company making Indian subsidiary a hub for exports and also the introduction of new equipment in India. Buy at current levels for target price of Rs 80 in medium term.

Auto ancillaries Steel Strips Wheels, JBM Auto, Sundaram Fasteners, Sundaram Clayton and others are attracting interest of savvy investors. Steel Strips Wheels is a leading manufacturer of automotive steel wheels and rims for OEMs of two wheelers and three wheelers. Its client list includes nearly all domestic majors and also prestigious international firms such as Audi, Renault, BMW, Kromag and Turk Tractor. Buy on declines for a target price of Rs 350.

JBM Auto, apart from supplying sheet metal components and welded sub assemblies for automotive companies, has a special purpose vehicle division manufacturing tippers, trailers, reefer vans, garbage compactors. Buy at current levels for target price of Rs 125.

C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

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BSE / NSE weekly analysis 11 June 2010

It was a week of gap-downs and gap-ups. The Indian benchmark indices finally ended the week with decent gains for the third week in a row. After starting on a somber note and facing stiff resistance around 17,000 levels, bulls were back to their scoring ways as the markets managed to recoup all the earlier losses. Better than expected April IIP data backed by positive European cues stemmed any further slide. The Realty stocks witnessed some serious offloading with heavyweights like DLF and Unitech losing over 5%. Lower than expected PMI output data in China led to a fall in Metal prices, which in turn dragged the metal stocks lower. However, the Pharma and the Auto stocks were among the notable gainers. Finally, the NSE Nifty and the BSE Sensex gained 1.3% each during the week.

The BSE Sensex hit an intra-week high of 17,131 and low of 16,560 and the NSE Nifty hit an intra-week high of 5,139 and low of 4,967.

The top gainers: The top gainers in the Sensex were Cipla (up 3.8%), HDFC Bank (up 3.2%), Grasim Inds (up 2.7%), BHEL (up 2.6%) and Acc (up 2.4%).

The Top Losers: The top losers in the Sensex were DLF (down 6.9%), Hindalco Inds (down 5.5%), Infosys Tech (down 3.6%), Tata Steel (down 2.4%) and ICICI Bank (down 2.3%),

The BSE IT Index (down 2.5%):The top losers in the IT sector were Sasken Communication (down 5.5%), HCL Tech (down 4.5%), Patni Computer (down 4%), Infosys (down 3.6%) and Mahindra Satyam (down 3.4%).

The top gainers were Oracle Financial (up 4.1%) and Mphasis (up 1.4%).

The BSE Consumer Index: The top losers in the Consumer Durables were Whirlpool (down 7.8%), Samtel Color (down 1.5%), Titan (down 1.2%), Su-Raj Diamonds (down 0.9%) and Videocon Industries (down 0.2%).

The BSE Healthcare Index (up 2.5%):The top gainers in the Pharma space were Pfizer (up 6.8%), Astrazeneca Pharma (up 6.2%), Orchid Chem (up 5.7%), Strides Arcolab (up 5.5%) and Dr Reddy's Labs (up 4.3%).

The top losers were Panacea Biotec (down 2.8%), Natco Pharma (down 2.7%), Morepen Labs (down 2.6%), Zandu Pharma (down 2.1%) and Sun Pharma (down 1.3%).

The BSE Banking Index (down 0.2%):The top losers in the banking space were Karnataka Bank (down 3%), Federal Bank (down 2.8%), Union Bank of India (down 2.6%), ICICI Bank (down 2.3%) and Bank of Baroda (down 1.7%).

The top gainers were HDFC Bank (up 3.2%), Canara Bank (up 2.9%), IOB (up 2.5%), PNB (up 1.9%) and Kotak Mahindra Bank (up 1%).

The BSE Auto Index (up 1.6%):The top gainers in the auto space were Eicher Motors (up 10.5%), Bajaj Auto (up 5%), M&M (up 3.7%), Maruti Suzuki (up 2%) and Hindustan Motors (up 1.8%).

The top losers were Ashok Leyland (down 2%) and Tata Motors (down 0.9%).

The BSE Oil & Gas Index (up 0.2%):The top losers in the oil & gas space were BPCL (down 6.7%), HPCL (down 5.6%), IOC (down 4.5%), MRPL (down 4.1%) and Jindal Drilling (down 2.9%).

The top gainers Reliance (up 1.5%), Shiv-Vani Oil & (up 0.9%) and Cairn India (up 0.4%).

The BSE Capital Goods Index (up 0.9%):The top gainers in the Capital Goods space were Alfa Laval India (up 5.3%), Areva T&D (up 5.2%), Ingersoll Rand (up 5%), Jyoti Structures (up 4.8%) and Siemens India (up 3.2%).

The top losers were Carborundum Universal (down 3.5%), Gammon India (down 2.8%), SKF India (down 2.4%), Alstom Projects (down 2.2%) and Astra Microwave (down 1.9%).

The Cement Sector: The top gainers in the cement sector were Binani Indus (up 5%), Mangalam Cement (up 4.9%), Grasim Inds (up 2.7%), ACC (up 2.4%) and Shree Cement (up 2.3%).

The top losers were Kakatiya Cement (down 4.2%), Gujarat Sidhee (down 1.1%), Birla Corp (down 0.9%), India Cements (down 0.7%) and Jk Cements (down 0.6%).

The Telecom Sector: The top losers in the telecom were MTNL (down 5.2%), Shyam Telecom (down 3.4%), TTML (down 3.4%), Idea Cellular (down 2.8%) and Gemini Comm (down 1.1%).

The top gainers were Himachal Futuristic (up 8.6%), WWIL (up 4.5%) and RCom (up 2.4%).

The Realty Sector (down 4%):The top losers in the Realty sector were DLF (down 6.9%), Unitech (down 4.2%), Mahindra Lifespace (down 2.8%), Ansal Props (down 2.7%) and Sobha Developers (down 2.2%).

The top gainers were HDIL (up 1.7%), Parsvnath (up 0.7%), Anant Raj Indus (up 0.7%) and Akruti City (up 0.3%).

The Metals sector (down 2.5%):The top gainers in the metals sector were Tata Metaliks (up 18.2%), Lloyds Metals (up 4.3%), Tata Sponge (up 3.5%), Jindal Steel (up 2%) and Sunflag Iron (up 1.1%).

The top losers in the metals sector were JSW Steel (down 3.4%), Monnet Ispat (down 3.2%), Ispat Industries (down 3.1%), Tata Steel (down 2.4%) and SAIL (down 1.7%).

Source : IIFL

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Market Khabar 24 May 2010

Markets were volatile throughout the week-ended due to the European crisis putting the global economic recovery at risk.

On the BSE, the Sensex dropped 549 points and the Nifty on the NSE shed 162 points to end the week at 16,446 and 4,931 respectively. Volatility indices — fear gauge — across the world have shot up to new short-term highs reflecting investor anxiety. Selling was seen across the board and nearly all the sectoral indices closed in the red. FII selling and weak rupee, which had seen the worst fall in 15 years, also acted as dampener.

According to analysts, the clearance of Wall Street reform bills — supposedly the most comprehensive regulation of the finance industry since the Great Depression — by the US Senate will have a huge impact on the emerging market flows.

Truce between the world’s richest siblings — Mukesh Ambani and Anil Ambani — agreeing to scrap all existing non-competition agreements between their business groups and to negotiate the gas deal may prove to be the biggest trigger for the markets.

With indices trading below 200-day moving averages, a corrective move to cross them is not ruled out. For the week ahead, chartists predict a trading band of 16,200 and 17,000 for the Sensex and 4,840 and 5,100 for the Nifty.

Resistances for the week are at 16,740 and 16,960 and 4,990 and 5,070. Last week’s lows of the indices at 16,187 and 4,842 may act as major support levels.

Futures & Options

Robust volumes were seen in the derivative segment. It is pertinent to note that the weekly volume also increased the most since second week of March. Trend change, however, is the worry plaguing traders mind. Buy Nifty5000 call option of June series for unexpected returns tip savvy punters. Watch rollovers of stock futures to spot winners for new series. Expectedly Reliance stocks will hog limelight on the back of harmony between the Ambani brothers. Buy RCom, Reliance Infra and Reliance Capital from ADAG pack for relief gains. Buy RIL for surprising gains in the medium-term with a stop loss at Rs 940. A short term target of Rs 1,100 is not ruled out.

After the recent slide infrastructure and metal stocks look good for corrective gains. Buy Lanco Infra, JP Associates, HCC, Tata Steel and SAIL for targets of Rs 62, Rs 132, Rs 130, Rs 540 and Rs 215.

Despite disappointment at the contours of the Abbott-Piramal deal, industry sources say that the deal will help in improving the valuations of other companies. Use corrections to buy and stay overweight in pharma sector.

Savvy long term players have begun nibbling telecom counters. With 3G auction process over, valuations of the battered telecom stocks are looking attractive. Buy Bharti and Idea at current levels for medium term. Banking and capital goods counters may remain range bound in near term.

Stock futures looking attractive are M&M, Tata Motors, IFCI, REC, PTC, Biocon and Maruti. Sharp down moves in counters like Educomp, Aban Offshore and others have unnerved punters. Place stops at technical danger points always on all trades in such wild counters.

Stock scan

Piramal Glass is among the top three flacconage (glass bottle) manufacturers in the world supplying to pharmaceutical, cosmetics and perfumery, specialty food and beverages and decoration industries. Restructuring of operations coupled with improved realisations helped the company post excellent turnaround performance. With the promoter group Piramal flush with cash from Abbott deal, market players expect them to concentrate more on Piramal Glass. Buy on declines for price target of Rs 175 in medium term.

Ramco Industries is one of the best performing, highly efficient producers of fibre cement sheets in India. It has pioneered and introduced the innovative calcium silicate board — a versatile building interior product — in India. The company holds investments in the group companies, presently valued at Rs 400 crores giving an enterprise value of Rs 880 crore to the company. At current price levels, the market capitalisation is only Rs 550 crore, making Ramco a good investment bet for the medium term.

Solar Industries is one of the largest comprehensive explosives and explosive initiating devices manufacturers in the country. With the superior quality of its products, the company has garnered good market share in southeast Asia, Middle East and some African countries.

Results of many smallcap and midcap textile companies are better than expectations. Re-rating and a renewed interest is clearly evident in several stocks.

C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

Source : DC

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Sensex to cross 19000 this year

Stock market benchmark Sensex may soar past the 19,000-point level this year, propelled by domestic factors like robust economic expansion and decent corporate earnings growth, the country's top brokerage and investment banking entity ICICI Securities has said.

The only negative headwinds the Indian market can witness could be due to negative cues from global markets, but investors willing to stay invested for at least 15-18 months will not be disappointed with their returns, I-Sec Managing Director and CEO Madhabi Puri-Buch told PTI.

"Markets are partly linked to real economy and the corporate earnings and then also partly to global liquidity... Real economy in India, as also the corporate earnings, will continue to grow and the growth is here to stay," Buch noted.

The I-Sec chief noted that even 15 per cent corporate earnings growth, which would be a reasonably low estimate as per the prevailing trends, would be sufficient to propel the Sensex past the 19,000 level and the surge could be much bigger if there are other positive triggers, such as those in the form of favourable global cues.

"However, we should be conscious of the fact that there could be some negative cues due to liquidity issues in the global economy," Buch said, but quickly added that any negative cues would only have a very short-term impact.

"It should not worry the investors who have at least 15-18 months of investment timeframe in their minds and those looking to stay invested for 3-5 years will certainly not be disappointed with the kind of returns they would get from Indian markets," she said.

Indian equities have been under pressure for the past few weeks, mostly because of the European financial crisis that has led to a sharp sell-off in markets across the world. However, global markets, including the US, rebounded sharply on Friday after clarity emerged about the US and Europe taking remedial actions for the deep crisis having engulfed the Western economies for about two years now.

Buch said that a volatile market is actually good for investors, as downslides actually give buying opportunities, as has been the case with recent fall in the market.

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BSE NSE Weekly Analysis 01 April 10

After enjoying a spectacular run in FY10, the Indian benchmark indices ended the week on a flat note halting its seven-week winning streak. The Nifty and the Sensex although started off the week by hitting their respective 52-week highs, however, the surge showed some signs of slackening. Headwinds include inflation, an impending hike in interest rates. Monsoon will be crucial. The earnings and guidance from India Inc would be the closely watched in the ensuing weeks.

The Realty, Capital Goods and the Power stocks were in demand during the week; even small-cap stocks attracted buying interest. On the other hand, the IT stocks were among the top laggards as the rupee appreciated to its 52-week high of Rs44.88 as against the US dollar.

The FII continued to be net buyers in the Indian markets. They bought stocks to the tune of Rs40.46bn in the last four days. On the other hand, the DIIs were net seller to the tune of Rs7.55bn.

The BSE Sensex hit an intra-week high of 17,793 and low of 17,488 and the NSE Nifty hit an intra-week high of 5,329.5 and low of 5,235.

The top gainers: The top gainers in the Sensex were HDFC (up 6.5%), DLF (up 5.8%), Tata Motors (up 3.7%), Hindalco (up 2.9%) and NTPC (up 2.5%)

The Top Losers: The top losers in the Sensex were Infosys (down 3.8%), Hindustan Unilever (down 3.4%), Hero Honda (down 3.3%), Bharti Airtel (down 2.6%) and TCS (down 2.1%).

The BSE IT Index (down 3%): The top losers were Infosys (down 3.8%), HCL Tech (down 3.7%), Financial Tech (down 3.5%), Patni Computer (down 3.3%) and TCS (down 2.1%).

The top gainers in the IT sector were Wipro (up 0.5%), Oracle Financial (up 0.4%) and Sasken Communication (up 0.2%).

The BSE Consumer Index: The top gainers in the Consumer Durables sector were Samtel Color (up 4.7%), Su-Raj Diamonds (up 3.1%), Titan Inds (up 3.1%) and Mirc Electronics (up 2.7%).

The top losers were Whirlpool (down 3.1%) and Videocon Industries (down 0.6%).

The BSE Healthcare Index (up 0.2%): The top gainers in the Pharma space were Morepen Labs (up 14.7%), Glenmark Pharma (up 7.1%), Emami (up 6.1%), Astrazeneca Pharma (up 6%) and Torrent Pharma (up 5.8%).

The top losers were Cipla (down 1.7%), Dr Reddy's Labs (down 1.6%), Lupin (down 1.6%), Orchid Chem (down 1.5%) and Zandu Pharma (down 1.1%).

The BSE Banking Index (up 0.7%): The top gainers in the banking space were Andhra Bank (up 7.9%), Bank of India (up 7.8%), Karnataka Bank (up 7.5%), Union Bank of India (up 6.3%) and Oriental Bank of Commerce (up 2.9%).

The top losers were Axis Bank (down 1.7%), Kotak Mahindra Bank (down 0.7%), HDFC Bank (down 0.6%) and Allahabad Bank (down 0.1%).

The BSE Auto Index (up 0.5%): The top gainers in the auto space were Hindustan Motors (up 8.5%), Eicher Motors (up 6.6%), Ashok Leyland (up 5.2%), Tata Motors (up 3.7%) and Bajaj Auto (up 1%).

The top losers were Hero Honda Motor (down 3.3%), Swaraj Mazda (down 1.3%), Mahindra & Mahindra (down 1.1%) and Maruti Suzuki (down 0.3%).

The BSE Oil & Gas Index (up 0.3%): The top gainers in the oil & gas space were Shiv-Vani Oil (up 8.3%), Hindustan Oil (up 4.7%), Cairn India (up 4.7%), MRPL (up 4.3%) and Chennai Petroleum (up 2.4%)

The top losers were Jindal Drilling (down 1%), Reliance Inds (down 0.8%) and Essar Oil (down 0.2%).

The BSE Capital Goods Index (up 1.4%): The top gainers in the Capital Goods space were Crompton Greaves (up 6.6%), Esab India (up 6.4%), Usha Martin (up 6.2%), SKF India (up 5.1%) and Elgi Equipments (up 5.1%).

The top losers were Kirloskar Bros (down 25%), Astra Microwave (down 2.5%), Areva T&D (down 1.1%), Siemens India (down 0.9%) and Dredging Corp (down 0.7%).

The Cement Sector: The top gainers in the cement sector were Prism Cement (up 8.9%), Kakatiya Cement (up 6.7%), Shree Cement (up 4.3%), Gujarat Sidhee (up 4.1%) and Mangalam Cement (up 3.9%)

The top losers were Grasim (down 1.6%) and JK Cements (down 0.2%).

The Telecom Sector: The top gainers in the telecom space were Himachal Futuristic (up 9.2%), Gemini Comm (up 7%), WWIL (up 2.8%), RCom (up 1.7%) and MTNL (up 1.4%).

The top losers were Idea Cellular (down 3.1%), Bharti Airtel (down 2.6%), Shyam Telecom (down 1.5%) and TTML (down 0.2%).

The Realty Sector (up 3.3%): The top gainers in the real estate space were DLF (up 5.8%), Unitech (up 5.2%), Omaxe (up 4.2%), Peninsula Land (up 3.9%) and Sobha Developers (up 3.3%).

The top losers were Akruti City (down 2.2%) and Ansal Props (down 1.4%).

The Metals sector (up 1.8%): The top gainers in the metals sector were Sunflag Iron (up 10.5%), Tata Sponge Iron (up 5.8%), Ispat Industries (up 4.7%), Jindal Stainless (up 3.7%) and SAIL (up 3.3%).

The top losers in the metals sector were Monnet Ispat & E (down 2.4%), Lloyds Metals (down 2.3%), Tata Metaliks (down 1.3%) and Jindal Steel (down 1.1%).

Source : IIFL

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BSE NSE Weekly Review 01 Feb 2010

Huge resistance at 5000 level for the nifty

Outlook currently remains down ward bias, but market craves for positive cues in the domestic / global front, which can help it move northwards

The week started the week with extreme negative bias as the 3^rd quarter result season closed besides negative macro trends in the global economy. During the week ended 29^th January 2010, the S&P CNX Nifty corrected 153.95 points to close at 4882.05. In the future & option segment it was the expiry week and the rollover was smooth with short positions being created both at the nifty and the stock futures segment. The nifty February series added 2.26 crore shares in open interest (OI) during the week under review. Some of the stock futuresalso added OI, most of them short positions. For e.g. Reliance February futures added 83.38 lakh shares in OI while Tata Steel and Tata Motors added 1.18 crore shares and 80.15 lakh shares in OI during the week ended 29^th January 2010.

The nifty future continued to trade at a discount all throughout the week.

Open Interest (OI) break-up as on 29th January 2010
	Open Interest (OI)*	Change**
Market wide	169.07	9.85
Index Future	3.37	0.22
Stock Future	142.55	4.80
Index Options	9.19	0.86
Stock options	13.97	3.98
* No of shares in crores ** Change is vis-à-vis previous day Source: NSE

Overall the market wide OI on Friday stood at 169.070 crore shares, thus rising by 9.85 crore shares as compared to the previous day. Major activity was witnessed in the stock futures & options segment. (See table OI breakup).

Most active Nifty options (February 2010 series)
	OI
Call
Nifty 4800	2000850
Nifty 5000	3799350
Nifty 5100	2768500
Nifty 5200	2933950
Put
Nifty 4500	2089750
Nifty 4600	3031050
Nifty 4700	3470900
Nifty 4800	4877250
Source: NSE

Besides all throughout the week the trend in the nifty option front was not positive as significant call writing was witnessed at 4700 to 5300 strikes simultaneously puts witnessed addition of OI with buying of 4700 to 4900 strikes. Now these indicate strong resistance at 5000 levels for the underlying.

The most active options in the February series were the 4700 to 5000 strikes. The call option on the above mentioned strikes witnessed aggressive writing, while the puts witnessed addition of OI due to fresh buying. All throughout the week the 5000 strike call witnessed 29.96-lakh-share addition in OI while the same strike put witnessed 4.51 lakh additions in OI. Put OI addition was more profound at 4700, 4800 and 4900 strikes while for the calls it was at 4900 and 5000 strike. (See most active Nifty options table).

Top 10 Open Interest (OI) gainers in February series stock futures on 29th January 2010
Scrip Name	OI*	Change*	% Change
INDIANB	1282600	389400	44
SUNTV	151000	38000	34
IVRCLINFRA	3612000	908000	34
DRREDDY	810400	164800	26
PATNI	653900	122200	23
IBREALEST	12675000	2147600	20
BANKBARODA	2002700	320600	19
COLPAL	275550	43450	19
OPTOCIRCUI	1583040	246840	18
LUPIN	519750	80500	18
* No of shares Source: NSE

Top 10 Open Interest (OI) losers in February series stock futures on 29th January 2010

Scrip Name	OI*	Change*	% Change
PIRHEALTH	757500	-243000	-24
DABUR	561600	-132300	-19
ASIANPAINT	21200	-3600	-15
FEDERALBNK	476560	-70633	-13
CROMPGREAV	409000	-60000	-13
MPHASIS	2842400	-182400	-6
MRPL	4899450	-267000	-5
INDHOTEL	4268952	-208890	-5
NAGARFERT	17477250	-740250	-4
HDFCBANK	1539800	-61200	-4
* No of shares Source: NSE

The market may seem oversold at this level although any upward trigger will depend onthe global market due to lack of domestic trigger. 5000 levels for the nifty will remain a key resistance. The outlook currently remains down ward bias, however any positive indicators for the market domestically or internationally may witness significant upward correction.

Source : Capitalmarket.com

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