Indian Stock Market Review 26-02-09

Amid mixed global cues, the market opened on a weak note and had a prolonged spell in the negative terrain today.

Hectic short-covering due to expiry of February series derivative contracts lifted the market into the positive zone during the final hour.  The Sensex, which tumbled to a low of 8788.32 in morning trade, ended the day at 8962.22 (provisional) with a gain of 59.66 points or 0.67%. The Sensex rose to a high of 8998.31 during the fag end of the session.  The Nifty closed at 2789.55, up 0.98% or 27.05 points.

Auto, oil, FMCG and IT stocks rallied sharply in afternoon trade.  Stock specific action was seen in metal, power, pharma and capital goods sectors. Bank stocks remained weak. Realty stocks bounced back after a weak spell.   Midcap and smallcap stocks found support hard to come by.

Tata Motors shot up by nearly 8%.

Grasim, Maruti, ONGC, RComm, NTPC, Sterlite and RIL closed with impressive gains.

Infosys, BHEL, HUL, Bharti and ITC also finished on a positive note.

Unitech, Hero Honda, GAIL, Tata Comm, Cairn India and SAIL moved up sharply.

Ranbaxy plunged by over 18%.

PNB, Reliance Capital, BPCL, Ambuja Cements, Siemens, RPower and RPL ended with sharp losses.

The market breadth was negative right through the day.

ABB (Rs 371) is likely to give good returns over a medium or long term. Investors holding the stock can stay invested. The company's order book is quite healthy. Small quantities can be added at sharp declines from current levels.

Dabur India (Rs 91) can be retained with a stop loss at Rs 75. The stock has more support at Rs 60 - 65 levels.  But for a sharp upmove to happen, the stock has to move on to Rs 110 and trade firm for a few sessions.

Piramal Healthcare Ltd has clarified that the Promoter has no intention to dilute current ownership levels. The Company continues to maintain its policy on not commenting on market speculation.  The clarification from the company is with reference to a news item appearing in leading financial daily about a stake sale.

Marico (Rs 56) can be picked for medium term. One can take a modest exposure now and increase holding at declines.   stop loss can be placed at Rs 46. Returns from Hindustan Unilever (Rs 250) may not be significant in the short run. However, the downside risk for the stock is somewhat limited from here. One looking at long term can pick up this stock at declines.

Jaiprakash Associates (Rs 67) may struggle to make a sharp upmove in the near term. One looking at a 12 - 15 month span can go in for the stock at Rs 60 - 63 levels. Those holding the stock can continue to do so with a stop loss near Rs 47.

Bank stocks are trading weak today.  However, investors holding key bank stocks with a long term plan can continue to hold them.  Exposure can be increased in a staggered way in SBI, Bank of Baroda, Bank of India, Federal Bank, Indian Bank, PNB and Union Bank of India.

Infosys Technologies (Rs 1233) can move on to Rs 1265 - 1275 shortly.  Traders with a good appetite for risk can try this IT stock now with a stop loss at Rs 1218.

Reliance Communications (Rs 157) can rise to Rs 163 this afternoon.  Intra-day traders can buy this stock now with a stop loss at Rs 153.  Those looking at medium to long term can stay invested with a stop loss at Rs 145.

Investors looking for some strong gains over a short run, can go in for Maruti Suzuki. The stock (Rs 672) is near a strong resistance level now. A move to Rs 730 looks very likely in the near term.

Reliance Industries (Rs 1271) can be bought at sharp declines.  Long term investors can hold the stock with a stop loss near Rs 1100.

Cipla (Rs 188) can give modest returns over a 3 - 6 month period.  One can buy the stock now or at slight declines.

Long term investors can have a stop loss near Rs 145.

Reliance Communications (Rs 156) can rise to Rs 160 - 162 where it can face some resistance.  A fall to Rs 153 and a pronounced weakness there can result in the stock sliding down to Rs 148 this afternoon.

Ultratech Cement (Rs 449) can be retained for long term.  However, fresh buying can be considered at sharp declines from current levels. Long term players can have a stop loss near Rs 320.

HDFC (Rs 1205) has hit a new 52-week low of Rs 1193.30 today.  The stock is likely to drift lower in the near term.

Still, long term investors can continue to hold the stock and pick up more of it in small quantities at declines.

One can stay invested in Balrampur Chini (Rs 48.50).  The stock can give moderate to sharp returns over a short to medium run. For now, a stop loss can be placed at Rs 35 - 37 levels.

Crompton Greaves (Rs 125) can be retained for long term.  In the short run, the stock can exhibit weakness and can drift down to Rs 110 levels. Long term investors can increase exposure at those levels.

Tata Steel (Rs 160.70) can move up sharply if it makes a decisive breakout at Rs 163.  The stock has support at Rs 158 and weakness there can result in a fall to Rs 153 or even Rs 150.

Infosys Technologies (Rs 1217) will have to rise to Rs 1225 and trade firm to give a strong buy signal for intra-day.  The stock has support at Rs 1205 and a pronounced weakness there can result in a fall to 1190 or even lower.

Tata Consultancy Services has announced that Singapore Airlines has extended its contract with the company.  As per the extension, TCS will provide IT services for three years for a suite of applications used by Singapore Airlines Group of Companies.

Educomp Solutions (Rs 1507) is not for investors with little or no appetite for risk.  Short term traders can look to sell the stock at Rs 1580 - 1600 and buy back later at Rs 1450 or slightly lower.

Nifty (2737) has some support at 2730.  Weakness around that level can result in a fall to 2710 or even lower levels.  A strong breakout at 2755 can lift the index back into the positive territory.

NTPC (Rs 180) is likely to face some strong resistance at Rs 190 levels.  In the short run, the stock can weaken to Rs 165 or even lower.  Long term investors can hold the stock and pick up more of it at sharp declines from current levels.

Punj Lloyd (Rs 82) can give fairly solid returns over a long run.  The stock can move on to Rs 90 where short term traders can make an exit. They can re-enter the counter later at declines.

SAIL (Rs 74.65) can be picked up at declines. The stock is likely to face strong resistance at Rs 90 - 95 level where one can make an exit.

Investors with a short or medium term view can hold M&M (cmp Rs 319) with a stop loss at Rs 270.  The stock will have to move on to Rs 390 and trade firm for a few sessions to give a strong buy signal.

Maruti Suzuki (Rs 649) can move up sharply in the near run.  The stock can find some resistant at Rs 675 - 685 levels where one can look at booking some profits.

GMR Infrastructure (Rs 75) can be accumulated in a staggered way.  Investors with a long term plan can have a stop loss near Rs 45, around its 52-week low.

Ranbaxy Laboratories (Rs 180) is likely to remain quite slippery in the near run.

Investors who have no appetite for risk would do well to stay away from the counter for now.

Stay invested in Tata Motors (Rs 142).  The stock may see a few weak spells in the near run and can even drop down to Rs 130. Dips can be used to add quantities.

Ambuja Cements (Rs 68) looks good as a medium to long term bet. Though a fall from current levels is not ruled out, one who can afford to hold the stock need not worry and instead, increase exposure at sharp declines.

L&T has bagged new orders worth Rs 1162 crore in Buildings & Factories Segment.  The orders are from the Andhra Pradesh Rajiv Swagruha Corporation, KCP Limited and Lafarge India Private Limited.  One with a long term plan can continue to hold L&T (Rs 623) and look to buy more at declines.

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Market Voices 26-02-09

The Asian markets closed in the negative while European markets were trading positive. The Indian market saw a pullback rally and closed at the high point of the day on F&O expiry today. Sensex shut shop at 8954, up 52 points and Nifty at 2785, up 23 points from the previous close. CNX Midcap index was down 0.75% and BSE Smallcap index was down 0.70%. The market breadth was negative with advances at 439 against declines of 712 on the NSE. Top Nifty gainers included Tata Motors, Grasim and Maruti Suzuki while losers included Ranbaxy, PNB and ICICI Bank.  

Accumulate RIL, Bharati Airtel and Infosys on dips in the portfolio for the long term for good returns, says Salil Sharma of Kapoor & Sharma Company, on Zee Business.  

Buy Tata Motors as the Nano launch to be a positive trigger that is likely to take the stock higher to Rs 160-165, says Ambareesh Baliga of Karvy Stock Broking on CNBC Awaaz. The stock is currently trading at Rs 150, up 7.7% on the BSE.  Hold Tata Motors for the long term as the worse seems to be over and the stock is fundamentally good, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. The stock is currently trading at Rs 150, up 7.7% on the BSE.  

It was a good close for the market on F&O expiry day today. Sensex closed at 8967, up 64 points (provisional) and Nifty at 2789, up 27 points (provisional) from the previous close. CNX Midcap index was down 0.75% and BSE Smallcap index was down 0.69%. The market breadth was negative with advances at 447 against declines of 714 on the NSE.  

Book profits at higher levels and go long if Nifty sustains 2850-2880, says E Mathew, technical analyst, on CNBC-TV18, as closing market strategy.  

Book partial profits in Nifty long positions with a target of 2857 and stop loss of 2730, says Anil Maghnani, technical analyst, on CNBC-TV18, as closing market strategy.  

Sell Rolta with a target of Rs 72 and stop loss of Rs 92, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 89, up 1.53% on the BSE.  

If Nifty breaks 2700 then the next level is 2630, says Deven Choksey of KR Choksey, on Zee Business. Nifty is likely to be in the 2630-2820 range for a few days before a decisive move is made, he adds.  

The market is seeing a short covering rally and trading in the positive. Sensex is trading at 8932, up 29 points and Nifty is at 2779, up 17 points from the previous close. CNX Midcap index is down 0.69% and BSE Smallcap index is down 0.61%. The market breadth is negative with advances at 435 against declines of 702 on the NSE.  

Hold Akruti City which has resistance at Rs 1150-1155 where one can exit the stock, says Vijay Bhambwani, technical analyst, on CNBC TV18. The stock is currently trading at Rs 962, down 10.8% on the BSE.  

Buy Cairn India with a target of Rs 180 and stop loss of Rs 147, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 162, up 1.25% on the BSE.  

HEM Securities maintains a sell call on Reliance Capital with a target of Rs 332 and stop loss of Rs 380, reports CNBC Awaaz. The stock is currently trading at Rs 369, down 2.94% on the BSE.  

Buy SBI with a target of Rs 1110 and stop loss of Rs 850, says Nishant Jain of Tradeswift, on CNBC Awaaz. The stock is currently trading at Rs 1028, down 0.92% on the BSE.  Hold Axis Bank which has resistance at Rs 400-425 where one can exit the stock, says Vijay Bhambwani, technical analyst, on CNBC TV18. The short and medium term trends for banking stocks is down and they will continue to be under pressure, he adds. The stock is currently trading at Rs 352, down 3.8% on the BSE.  

Hold JP Associates for the long-term for excellent returns as the fundamentals of the company are very sound, says Rajesh Tambe, technical analyst, on Zee Business. The stock is currently trading at Rs 66, down 1.19% on the BSE.  

Hold InfoEdge with a target of Rs 460-500 in the long term, says PK Agarwal, market expert, on CNBC Awaaz. The stock is currently trading at Rs 451 on the BSE.  

Buy Shree Renuka Sugars above Rs 81 with a target of Rs 93-94 and stop loss of Rs 76, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 80, up 3.6% on the BSE.  

Hold Rolta with a target of Rs 95-101 after which it can see a fresh upmove to Rs 135, says Simi Bhaumik, technical analyst, on Zee Business. Buy the stock on dips at around Rs 75 for the long term and maintain a stop loss of Rs 72, she adds. The stock is currently trading at Rs 85, down 2.5% on the BSE.  

The market is likely to see a big downside in March, says Mitesh Thacker, technical analyst, on CNBC TV18. If Nifty breaks the crucial support of 2650 then market could head lower, he adds.  

The Asian markets are trading in the negative. The Indian market is seeing a weak session. Sensex is trading at 8826, down 76 points and Nifty is at 2740, down 22 points from the previous close. CNX Midcap index is down 0.69% and BSE Smallcap index is down 0.69%. The market breadth is negative with advances at 359 against declines of 725 on the NSE.  

Tata Motors to launch the Nano on March 23, reports NDTV Profit. Booking for the Nano to begin from the second week of April. Tata Motors is currently trading at Rs 144, up 3.14% on the BSE.  

Buy metal stocks but on declines of 15-20% from current levels, says Vibhav Kapoor of IL&FS on CNBC TV18.  

Hold Unitech with stop loss of Rs 21, says Mandar Jamsandekar, technical analyst, on NDTV Profit. It has support at Rs 26 and 22 and resistance at Rs 33 and then Rs 50, he adds. The stock is currently trading at Rs 27.90, down 0.7% on the BSE.  

Buy SBI with target of Rs 1150, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1000, he adds. The stock is currently trading at Rs 1025.50, down 1.8% on the BSE.  

March is generally a more difficult month for the market and given that there has been no respite globally, the market could hit 2300, says Vibhav Kapoor of IL&FS on CNBC TV18. He believes this recession is deep and the market would remain range-bound between 2300-3000 for at least another 5 to 6 months.  

Buy Ashok Leyland with stop loss of Rs 12-13, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 16.19, up 4.5% on the BSE.  

Exit from IFCI, says Sharmila Joshi of Systematix Shares on CNBC Awaaz. There is no trigger in this stock, she adds. The stock is currently trading at Rs 18.40, up 0.3% on the BSE.  

Buy Maruti at around Rs 620, says Ashwani Gujral, technical analyst, on CNBC Awaaz. It can go up to Rs 750, he adds. The stock is currently trading at Rs 658.65, down 0.6% on the BSE.  

Buy Fortis Healthcare at Rs 60, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Book profit around Rs 86-91, he adds. The stock is currently trading at Rs 64.65 on the BSE.  » Send to friends

12:03 PM - The market at noon continues looking somber. Selling continues in banking, power, telecom and realty stocks. Sensex is trading at 8821, down 81 points from its previous close, and Nifty is at 2733, down 24 points. CNX Midcap index and BSE Smallcap index are down 0.6% each. The market breadth is negative with advances at 354 against declines of 700 on the NSE. 

Invest in Suzlon Energy for 2-3 years, says MB Singh, technical analyst, on Zee Business. Buy at around Rs 40 but in staggered fashion, he adds. Will give good returns in long term, he says. The stock is currently trading at Rs 41.55, up 0.5% on the BSE.  

HDFC is a great investor stock to buy for the long term and not for short term, says Vibhav Kapoor of IL&FS, on CNBC TV18. It will have range-bound movements for quite some time before things clear out, he adds. The stock is currently trading at Rs 1202, down 4.2% on the BSE.  

Hold Today's Writing Products with stop loss of Rs 17, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. It has resistance at Rs 22-23 at which level book profit, he adds. The stock is currently trading at Rs 19, up 2.4% on the BSE.  

Buy NTPC at Rs 180 with target of Rs 182, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 178, she adds. The stock is currently trading at Rs 180.15, up 0.1% on the BSE.  

Buy Siemens at Rs 230 with target of Rs 236, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 224, she adds. The stock is currently trading at Rs 230.45, up 0.4% on the BSE.  

Go long on Bharti Airtel with target of Rs 675 and Rs 680, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of Rs 630, he adds. The stock is currently trading at Rs 635.80, down 1.02% on the BSE.  

The market sees a bit of selling pressure, an hour into opening. Sensex is trading at 8815, down 87 points from its previous close, and Nifty is at 2740, down 22 points. CNX Midcap index is down 0.7% and BSE Smallcap index is down 0.8%. The market breadth continues to be negative with advances at 302 against declines of 685 on the NSE.  

Hold Punj Lloyd with stop loss of Rs 81, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 86 crossing which it might go up to Rs 91, she adds. The stock is currently trading at Rs 81.70, down 1.2% on the BSE.  

Buy Cairn India with target of Rs 183, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 162.70, up 1.4% on the BSE.  

Buy Gulf Oil Corporation with target of Rs 34-35, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 25, she adds. The stock is currently trading at Rs 29.40, up 0.3% on the BSE.  

Hold GMR Industries which is a strong stock, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. It has resistance at Rs 94-110 levels where one can book profits, he adds. The stock is currently trading at Rs 94.90, up 13% on the BSE.  

Buy Alstom Projects on dips with target of Rs 350, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 280, she adds. The stock is currently trading at Rs 316.35, up 1.6% on the BSE.  

Buy Tata Motors above Rs 141 for intra-day trade, says Rajat Bose, technical analyst, on CNBC TV18. Keep stop loss below Rs 138 and target of Rs 146 and Rs 148, he adds. The stock is currently trading at Rs 142.15, up 1.6% on the BSE. 

On the day of F&O expiry, the market opens on a flat note, not exactly a great opening. Sensex is trading at 8852, down 49 points from its previous close, and Nifty is at 2748, down 13 points. CNX Midcap index is up 0.03% and BSE Smallcap index is up 0.02%. The market breadth is negative with advances at 171 against declines of 268 on the NSE. 

The recovery yesterday was on low volumes and is unlikely to sustain, says Deven Choksey of KR Choksey on CNBC TV18. He finds the upside for the Nifty capped at 2820 and support at 2630. In the absence of fresh triggers, the market can break below support levels in the near term, he adds.  

Expiry is expected to be uneventful, says Tushar Mahajan of Edelweiss Securities on CNBC TV18. There may see some buying in last half hour of trade and Nifty may expire around 2760-2780, he adds. He finds that directional players are still rolling over net shorts into the next series. While 2700-2900 seems to be the range going forward, Option build-up at 2200 should be kept in mind, he says.  

Today will be a neutral day for Asian markets, says Stephen Gollop of Tyche Group on CNBC TV18. There is so much uncertainty over the banks that it is unlikely to see any major positive or negative swing today, he adds.