Market Outlook 2 Aug 2010

Spooked by hawkish comments of RBI, disappointing corporate results and volatility on account of F&O settlement, markets lost ground during the week ended. On the BSE, the Sensex ended 1.5 per cent or 263 points lower at 17,868 and the Nifty on the NSE shed 1.5 per cent or 81 points closing at 5,368.

However, BSE Midcap and Smallcap indices outperformed the benchmark indices by falling just 0.3 per cent and 0.9 per cent. However, a sustained buying from FIIs, revival of monsoon in north India and easing of food inflation prevented a sharp fall in the markets.

Retail investor sentiment is upbeat, but the inflation is still sticky point with many, finds a recent market survey. Market players expect the announcement of incentives for struggling export sectors like textiles, leather and others. Barring any unexpected news flow, markets may remain range bound for next few sessions.

Reports of slowdown in the Chinese manufacturing, could weaken global recovery, already constrained by debt and unemployment in advanced countries may impact global markets. Keep a watch on US job data also. For the week ahead, chartists predict a trading range of 17,560 and 18,240 for the Sensex and 5,240 and 5,500 for the Nifty. Supports for the week are at 17,720 and 17,580 and 5,330 and 5,280.

Only a sustained trading above 18,200 and 5,450 levels will turn the outlook bullish.

FUTURES & OPTIONS
Volumes were higher in the derivatives segment on settlement considerations. Rollovers were significantly higher in both Nifty futures and stock futures.
Open interest at Rs 1,20,000-crore plus is the highest ever for the beginning of new series. Put/call ratio moved lower to 1.25 from 1.28 reflecting covering of some shorts. Most of the sectors ended the week in the red. Modest buying was seen in banks and consumer durables. The major sectoral losers were capital goods, oil and gas, realty and power.
Buoyed by the RBI move to keep the CRR unchanged, strong buying interest was seen in banking stocks. Stay overweight in the sector and use sharp declines to accumulate. Lack of positives from oil and gas majors triggered selling in Gail, RIL and ONGC.

Profit-booking was seen in the realty space with DLF leading the downtrend. However, punters do not rule out a rally on the back of auction prices for Mumbai mill land. After a sustained rally in the past few weeks, capital goods counters witnessed strong correction. Buy at lower levels Crompton Greaves, Cummins and APIL.

The news-driven volatility in Maruti and Hero Honda has affected other auto counters. Rumours of Hero group breaking its association with Honda is also doing the rounds.

Among the stock futures, HCC, Hindalco, CESC, Dena Bank, Vijaya Bank, Tata Chemicals, HCL Tech, M&M, Tata Motors, Noida Toll and Opto Circuits are looking good for price targets of Rs 148, Rs 175, Rs 425, Rs 110, Rs 80, Rs 360, Rs 425, Rs 685, Rs 880, Rs 35 and Rs 290. A relief rally is likely in Century and Dabur. Traders can attempt shorts in counters trading below their last week closing levels or lows.

STOCK SCAN
The Indian starch industry is a sunrise sector and has immense potential to grow at rapid pace in coming years. Among the organised players Anil Products, Riddhi Siddhi Gluco, Sukhjit Starch and Gayatri Bioorganics are the leading ones. After expansion of sorbitol and maize crushing capacities, Gayatri Bioorganics is also setting up 6 MW co-generation power plant to optimise costs. The company has also formed an alliance with Fursa and is expected to triple the production in the coming months.

With good crop prospects for maize and corn — the basic raw material — in the current year, Gayatri Bio looks good bet for price target of Rs 35 in medium term.

Low profile Vijayeswari Textiles Ltd has grown from a small generic yarn manufacturer into a high quality lucrative home textiles company. The company supplies to the world’s leading home textile retailers such as Macy’s, Kohl’s, Laura Ashley and others; and also has own brands like Kotton Dor, and others. First quarter results reflect an impressive turnaround performance with 110 per cent growth in turnover and registering half of last year’s profit in this quarter itself. Buy at current levels for short term target of Rs 60.

Source : DC

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Market Khabar 19 July 2010

Despite shedding some of its recent gains, markets closed on an optimistic note during the week ended. On the BSE, the Sensex closed 122 points higher at 17,956 and the Nifty on the NSE ended with 42 points gain at 5,394. Though the Sensex crossed the psychological 18,000-mark twice this month, it failed to close above that level at the end of the sessions. The reason for this is said to be the prevalent scepticism over the ongoing rally and the lack of a follow-up buying from domestic institutions.

Inflation continues to be a worrying factor and a modest rate hike by RBI is not ruled out at the next policy meeting. In the short term, everything is being driven by earnings. But in the longer-term, the question is where is the economy really going and do other economies across the globe have enough momentum to get out of the recession? Weekend negative global cues may see markets open weak at the start of next week.

However, the recovery during the latter part may see indices close at new short-term highs. For the week ahead, chartists predict a trading band of 17,650 and 18,250 for the Sensex and 5,240 and 5,450 for the Nifty. Resistances for the week are at 18,140 and 18,280 and 5,460 and 5,520. Expect support to the indices at 17,720 and 17,540 and 5,330 and 5,240.

Short-term traders are advised to cut longs, if indices dip below the 17,650 and 5,300 levels.

FUTURES & OPTIONS
The derivatives segment continued to witness robust volumes and open interest has crossed Rs 1,50,000-crore mark. Sentiment indicators like open interest in stock futures, put/call ratio, implied volatility and VIX signal heightened volatility. TCS results clearly show that there is nothing fundamentally wrong with IT outsourcing services and that business from now onwards will be volume-driven and not margin-driven. Use sharp declines to accumulate large cap IT counters.

Steady buying was seen in both PSU and private banks. Axis Bank, Yes Bank, Canara Bank, OBC, UCO Bank and Union Bank were the favourites. With RBI policy meeting due in the next fortnight, buy only on corrections. Automobile counters continue to attract buyers at lower levels. Rumour mills are active saying bonus and stock split on cards in Maruti. Buy on declines Tata Motors, Bajaj Auto and Ashok Leyland. As expected, profit-booking was seen in PSU OMCs like HPCL, BPCL and IOC.

Modest buying interest was seen in sugar stocks on the expectation of an improvement in retail prices and decontrol of the industry. Buy on declines Shree Renuka and Bajaj Hindustan. Among side-counters looking good for strong gains are Onmobile Global, Power Finance Corp, Godrej Industries, IFCI, Tata Global Beverages and Zee Entertainment. 3G rollout indicates an exponential growth in the mobile VAS sector. Onmobile is well placed to reap the benefits. Buy for target price of Rs 350 in short term and Rs 475 in medium term.

Power Finance to report quarterly numbers, indicate sources. Buy for a target price of Rs 375 in near-term. IFCI may be granted banking licence, say insiders.

STOCK SCAN
Among niche food product companies, Unique Organics Ltd is attracting the attention of savvy players. The company is a pioneer in processing and export of certified organic spices, herbs, oil seeds, pulses and other products. A certification from the US department of agriculture and consistent quality resulted in exports to more than 20 countries. Buy for a target price of Rs 40 in coming months.

Andhra Petrochemicals Ltd, which belongs to Andhra Sugars group, is the only producer of oxo-alcohols like isobutanol, 2-ethylthexanol and n-butanol in India and accounts for over 30 per cent of the market. Results for the year-ended were weak on the account of plant shutdown for expansion. With the completion of expansion, sources predict excellent results for the current year. HPCL — which supplies feedstock naphtha — and yet another petroleum major are reportedly evinced interest in picking up a stake in the company. Buy at current levels for price target of Rs40.

South Indian Bank and DCB are on the radar of investors. The latest results of DCB reflects the success of ongoing business restructuring plan. The bank was able to reduce losses and is expected to post profits by next quarter itself.

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 28 June 2010

AFTER a strong opening, markets lost ground during the latter part of the week ending on weak global cues and worries on inflation front.

On the BSE, the Sensex marginally ended up 3 points at 17,574 and the Nifty on the NSE inched up 6 points to close at 5,269. It is pertinent to note that while FIIs have been steady buyers, domestic institutions were sellers.

However, broader markets were ‘good’ with heightened activity in many midcap and smallcap counters. government’s nod to give a free hand to oil companies to fix petrol prices was a surprise move. The move to ‘control’ deficit by rationalising subsidies has enthused foreign investors. However, analysts fear the cascading effect of the decision on the already high inflation.

“Underperforming” monsoon is becoming a cause of worry. Expectations over the Q1 results may spark stock specific movements. Impact of Wall Street reform bill on global markets is not ruled out. For the week ahead, chartists predict trading range of 17,280-17,920 for the Sensex and 5,140-5,380 for the Nifty. Short term resistances for the indices are at 17,740 and 17,880 and 5,320 and 5,365. Hold long positions with stop at 17,300 on the Sensex or 5,200 on the Nifty. Gutsy traders can initiate fresh shorts if indices fail to cross 17,800/ 5,340 levels. Do not rule out yet another attempt by the indices to record new yearly highs if ‘conditions’ cooperate. Markets change continuously and so must investors.

Futures & options

EXPECTEDLY the settlement week witnessed robust volumes in the derivative segment. Overall rollovers were healthy and higher than last three months’ average. Interestingly, Nifty ‘short’ rollover is also much higher than last three months average. Option activity shows heavy call writing at 5,300 and 5,400 levels indicating strong resistance to Nifty in this band.

After the spike in the prices of PSU oil marketing companies, mild profit booking is not ruled out. However, use sharp corrections to buy ONGC, IOC, BPCL and HPCL. Spill over effect on other oil and gas counters such as Essar Oil, MRPL, GSPL and Oil India is not ruled out. Fears of policy rate hike have kept banking stocks subdued. Use the ongoing correction to accumulate smaller PSU banks like IDBI Bank, Andhra Bank, Vijaya Bank and others.

Fuel price hike will only be a short-term dampener for automobile companies. Use correction to buy auto stocks. Capital goods counters are showing good leadership and are good bets for medium term. Buy APIL, Punj Lloyd and BHEL for target prices of Rs 700, Rs 144 and Rs 2,550. Steady buying seen in pharma stocks. Further gains indicated in Aurobindo, Orchid Chemicals, Dr Reddy and Lupin. Range bound activi ty indicated in metal counters till global cues improve.

Among the side counters Noida Toll, Opto Circuits, GTL Infra, India Infoline, KFA and GMR Infra look good for targets of Rs 36, Rs 265, Rs 52, Rs 108, Rs 55 and Rs 64. Nothing goes up or down forever. After a sustained move in either direction, markets will enter a protracted period of narrow range trading and consolidate.

Stock scan

Low profile JOCIL, a subsidiary of Andhra Sugars Ltd, after listing on the NSE is attracting the attention of savvy investors. The company is engaged in the manufacture of stearic acid flakes, fatty acids, hydrogenated non-edible oils, glycerin, soap noodles and application in pharmaceuticals and is involved in the generation of power from biomass and wind. The company also offers contract manufacturing services related to its products and has customers of repute such as Hindustan Unilever. B.V. of nearly Rs 195, EPS of Rs 48 and dividend of 100 per cent make this ‘value’ stock good for target price of Rs 575 in medium term.

Onward Technologies Ltd is one of the fastest growing engineering design services company and is one of the largest ISVs for banking software solutions. Sources indicate turnaround performance from the company in Q1. Buy on declines for target price of Rs 50.

Precot Meridian Ltd, an Elgi group unit is one of the few totally integrated textile players with a total turnover of over Rs 445 crore. The company has market leadership in ‘eco-friendly’ 100 per cent organic combed cotton yarn used for knitting and weaving. Riding on the boom in the yarn sector, the firm reported turn-around in the year ended with EPS of Rs 23.

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 15th June 2009

Despite losing some steam, markets "managed" to post gains for 14th straight
week. On the Bombay Stock Exchange, the Sensex gained 134 points closing at
15,238 and the Nifty on the National Stock Exchange ended flat at 4,583.
However, selling pressure in the broader market was visible in the fall of BSE
Midcap and Smallcap indices by over 3.2 per cent and 6.9 per cent.

You can observe that while benchmark indices are in "green", many stocks are in
"red" with corrections of over 10 per cent. Despite positive IIP numbers raising
expectations on growth, higher international crude oil prices, uncertain monsoon
"path", and a rally in commodity prices warrant caution on the growth front.

Lack of a follow-up buying and "caution" ahead of the Union Budget may see
markets trudging sideways for next fortnight.

Weekend results of the Iran elections and North Korea's nuclear threat may have
limited impact on global markets. Markets have rallied for more than three
months straight and look ripe for a big pullback in near term.

For the week ahead, chartists predict a trading band of 14,600 and 15,600 for
the Sensex and 4,350 and 4,750 for the Nifty. Expect resistance to the indices
at 15,490 and 15,700 and 4,680 and 4,790.
Immediate supports for the indices are at 14,880 and 14,540 for the Sensex and
4,460 and 4,340 for the Nifty.

Trim long positions if indices hover below 15,000 and 4,500. Never assume a
market fact based on what you read or what others say, verify everything
yourselves. To succeed in the markets, it is essential to make your own
decisions.

F & O

Volumes were relatively lower in the derivatives segment during the week ended
reflecting "tiredness". Sentiment indicators such as open interest, put/call
ratio, implied volatility and VIX indicate sideways movement in near term with
intermittent bouts of high volatility. With "visible" signs of profit booking at
higher levels, savvy market players advise extreme caution for short-term
traders.

Metal stocks surged on the reports of bullish LME prices. Use sharp corrective
moves to accumulate. Weakness in bank counters will be short lived say punters.
Auto counters may continue to attract selling at higher levels. Trade
cautiously. After initial gains on the reports of extension of tax sops, IT
stocks have attracted selling at higher levels. Use declines to buy ahead of Q1
results. Buy TCS, HCL Tech, OFSS and Rolta for short term.

Among the stock futures showing relative strength are JSW Steel, Jindal Steel &
Power (included in Nifty), Noida Toll, Maha Seamless, Union Bank, Hindustan
Zinc, IFCI, Voltas, RCom, Nalco and Wockhardt. Targets for near term are Rs 825,
Rs 2800, Rs 55, Rs 350, Rs 250, Rs 750, Rs 65, Rs 160, Rs 375, Rs 410 and Rs
175.

SATTA GUPSHUP

* Laffans Petrochemicals Ltd has signed technology transfer agreement with
Huntsman Corporation for producing specialty chemicals like non-ionic
surfactants, glycol ethers and amines for wide range of markets-agrochemicals,
personal care, oil gas and automotive brake fluids. Book value of Rs 53 and EPS
of Rs 7.5 makes the stock good bet for a price target of Rs 50 in the medium
term.

* Infrastructure equipment financing company SREI Infra has two "valuable"
subsidiaries — offshore oil services firm Quippo Oil and Gas and telecom tower
services firm Quippo Telecom Infrastructure. The value of the subsidiaries is
reportedly over Rs 5,000 crore while market cap of SREI is just Rs 780 crore.
Blip in Q4 results is attributed to conscious decision of company to go slow in
disbursements. Good buy at current levels for price target of Rs 150 in medium
term.

* DCM Shriram Consolidated is a diversified company with a turnover of over Rs
3,000 crore with primary business interests in sugar, fertilisers, hybrid seeds,
chemicals, building systems, cement and rural business centres (Hariyali Kisaan
Bazaars). Completion of expansion in chemicals division and setting up of
cogeneration power plant were visible in the turnaround performance in the
current year. Buy on declines for target price of Rs 125 in medium term.

* Renewed interest seen in tyre and tea sectors. Volumes indicate further gains
in Apollo Tyres and Ceat. From the tea pack Jayashree Tea, Warren Tea, Goodricke
and Harrison Malayalam look good for investment. Use declines to buy for the
medium term.

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 : deccan.com

BSE / NSE Market Commentary 8th May 2009

Market Commentary 08 May 2009

Political uncertainty triggered profit taking after a sharp recent sharp surge in share prices. Nevertheless, the market cut losses in late trade as European stocks extended gains and as US index futures jumped. Auto stocks recovered. Index heavyweights Reliance Industries and Larsen & Toubro came off the day's lows.

The market was volatile. The BSE 30-share Sensex was down 240.51 points or 1.98%, up close to 110 points from the day's low and off close to 305 points from the day's high. The barometer index today, 8 May 2009, fell below the psychological 12,000 mark.

Domestic bourses slipped today, 8 May 2009, despite higher global markets. World stocks rose after the results of stress tests on US banks showed no nasty surprises. Banking, IT and metal stocks fell. The market breadth turned negative from strong breadth seen in early trade.

Volatility was high. After initial gains tracking higher US index futures, the market slipped into the red. It later moved between the positive and negative terrain in mid-morning trade. The market slipped to the day's low in early afternoon trade after the inflation data. The market extended losses in afternoon trade. After a steep slide at about 13:54 IST, the market cut losses in late trade.

Political uncertainty weighed on the bourses with polling underway for India's 15th Lok Sabha. The month-long a parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009. Poll estimates point to a fractured mandate. Consumption and investment decisions will be significantly impacted by any signs that the new government is unstable. The counting of votes will take place on 16 May 2009. A party/alliance needs 272 seats in the 543-member parliament to claim power at the Centre.

Recovery in the Indian economy triggered a solid rally on the domestic bourses recently. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex jumped 3,956.54 points or 48.48% to 12116.94 on 7 May 2009.

Meanwhile, the Federal Reserve stress result announced on Thursday determined that 10 US banks need to raise a total of $74.6 billion in capital, a finding that Chairman Ben S. Bernanke said should reassure investors about the soundness of the financial system.

The results showed that losses at the banks under more adverse economic conditions than most economists anticipate could total $599.2 billion over two years. Mortgage losses present the biggest part of the risk, at $185.5 billion. Trading accounts were the second-largest vulnerability, with potential losses of $99.3 billion. The conclusion of the unprecedented probe of the health of the largest 19 lenders opens an exit for some of the firms from a tense partnership between Wall Street and the government. Others will have six months to fill their capital shortfalls and may be forced to accept expanded federal ownership that could prompt changes in their management.

Bank of America Corp. was judged to need $33.9 billion in additional capital under regulators' criteria, the largest gap. Wells Fargo & Co.'s shortfall is $13.7 billion, while Citigroup Inc.'s gap is $5.5 billion. New York-based Citigroup has already announced plans to bolster its tangible common equity ratio by converting some of its preferred shares into common stock.

Fifth Third Bancorp's capital need is $1.1 billion, KeyCorp's is $1.8 billion, PNC Financial Services Group Inc.'s is $600 million, Regions Financial Corp.'s is $2.5 billion and SunTrust Banks Inc.'s is $2.2 billion. GMAC LLC needs $11.5 billion, while Morgan Stanley's assessment was $1.8 billion.

Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of New York Mellon Corp., MetLife Inc., American Express, State Street Corp., BB&T Corp., US Bancorp and Capital One Financial Corp. were deemed not to need additional funds, according to the results.

European shares extended gain on Friday, 8 May 2009, as financial stocks advanced after the results of stress tests on US banks showed no nasty surprises, while miners tracked higher metals prices. Key benchmark indices in France, Germany and UK were up by between 1.78% to 2.92%.

Asian shares rose after the US bank stress results provided no negative surprises. Key benchmark indices in Hong Kong, Japan, China, Taiwan, Singapore, South Korea were up by between 0.17% to 1.09%. Volatility was high in Asia.

Chinese State Council Vice Premier Wang Qishan wrote in an editorial Friday, 8 May 2009, that the global financial crisis and economic slump are getting worse, in contrast to more optimistic recent comments from US officials. The world economy is going to get worse before it gets better, and the situation remains serious, Wang said in a commentary published in the Financial Times. Wang called for greater cooperation between the UK and China in order to foster recovery, and repeated earlier comments by other Chinese officials calling for more international regulation to prevent future crises.

Trading in US index futures showed the Dow could rise 115 points at the opening bell on Friday, 8 May 2009. US stocks fell on Thursday 7 May 2009 before the results of the stress tests. The Dow slipped 102.43 points, or 1.2%, to 8,409.85. The S&P 500 index was down 12.14 points, or 1.3%, to 907.39, and the Nasdaq composite index fell 42.86 points, or 2.4%, to 1,716.24. The results of the stress test were announced after trading hours in the US on Thursday.

In economic news in US, initial jobless claims fell more than expected to the lowest level since January 2009. The numbers for the week ending 2 May 2009 totaled 601,000, which was less than expected and down from the preceding week. Continuing claims climbed to a new record of 6.35 million, which was in-line with expectations.

Closer home, foreign institutional investors (FIIs) are in an aggressive buying mode after they made heavy sales in the first two months of calendar 2009. Foreign institutional investors (FIIs) bought shares worth a net Rs 395.20 crore on Thursday, 7 May 2009. FII inflow in May 2009 totaled Rs 3,269.60 crore (till 7 May 2009). FII inflow in calendar year 2009 totaled Rs 3,982.40 crore (till 7 May 2009).

Asia ex-Japan equity funds took in $1.62 billion in the week though 6 May 2009, up from $1.1 billion the previous week, according to the latest data from EPFR Global which tracks global funds with assets totaling some $10 trillion. Two-thirds of the inflows in Asia ex-Japan equity funds was targeted at the Greater China region. Emerging-market stock funds worldwide took in $3.6 billion during the period, while those focused on the US and Europe posted outflows.

A pattern that started in late March 2009, with cash coming off the sidelines and bypassing funds geared to developed markets in favor of emerging markets equity, high-yield bond and some sector funds carried into the first week of May 2009, EPFR Global said.

Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 2008.

Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead.

Inflation based on the wholesale price index rose 0.7% in the year though 25 April 2009, higher than previous week's annual rise of 0.57%, data released by the government during trading hours today, 8 May 2009, showed.

The BSE 30-share Sensex was down 240.51 points or 1.98% to 11,876.43. The Sensex rose 63.13 points at the day's high of 12,180.07 in early trade. At the day's low of 11,765.06 Sensex fell 351.88 points in mid-afternoon trade.

The S&P CNX Nifty was down 63.20 points or 1.72% to 3,620.70. Nifty May 2009 futures were at 3627.65, at a premium of 6.95 points as compared to the spot closing of 3,620.70. Turnover in NSE's futures & options (F&O) segment surged to Rs 56,236.37 crore from Rs 48,471.10 crore on Thursday, 7 May 2009.

The BSE clocked a turnover of Rs 6612 crore, higher than Rs 4704.45 crore on Thursday 7 May 2009.

The BSE Consumer Durables index (up 1.89%), the BSE FMCG index (down 0.48%), the BSE PSU index (down 0.66%), the BSE Oil & Gas index (down 0.76%), the BSE Capital Goods index (down 0.78%), the BSE Auto index (down 0.78%), the BSE Healthcare index (down 1.02%), the BSE Realty index (down 1.13%), the BSE Power index (down 1.72%), the BSE TECk index (down 1.93%), outperformed the Sensex.

The BSE Bankex (down 3.21%), the BSE Metal index (down 2.52%), the BSE IT index (down 2.15%) underperfomed the Sensex.

The market breadth, indicating the overall health of the market, was even. It had turned negative in mid-afternoon trade from a strong breadth earlier in the day. On BSE, 1,277 shares rose as compared with 1,287 that fell. A total of 53 shares remained unchanged.

The BSE Mid-Cap index fell 0.17%. The BSE Small-Cap index gained 0.32%. Both these indices outperformed the Sensex

From the 30 share Sensex pack, 26 stocks fell while rest gained.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 0.89% to Rs 1,897. Nevertheless, the stock came off the day's low of Rs 1,875. Analysts expect strong growth in bottom line in coming quarters from sale of gas which it started pumping last month from its deep-sea field off the east coast.

India's biggest engineering & construction firm by revenue Larsen & Toubro (L&T) rose 0.54% to Rs 992, off the day's low of Rs 961.85. L&T on 16 April 2009 said the company expects its order inflow to grow by 25-35% in FY 2010. Other capital goods stocks BEML, Praj Industries, Crompton Greaves and Thermax rose by between 0.25% to 2.21%.

PSU OMCs fell on rise in oil prices. Indian Oil Corporation BPCL and HPCL fell by between 0.14% to 2.55%. Crude oil futures rose Friday in Asia on relative dollar weakness, staying near six-month highs. On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at $57.84 a barrel up $1.13 or 2% in the Globex electronic session. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Auto stocks cut losses on higher sales in the month just gone by. India's largest commercial vehicle maker by sales Tata Motors was down 1.36% to Rs 268.40, off the day's low of Rs 262. India's largest car maker by sales Maruti Suzuki India was down 1.1% to Rs 830.05, off the day's low of Rs 817.25. India's largest tractor maker by sales Mahindra & Mahindra was down 4.28% to Rs 494.25, off the day's low of Rs 486.75.

Metal stocks fell as copper futures for July 2009 delivery declined 1% yesterday, 7 May 2009, retreating from a three-week high on the London Metal Exchange. Aluminum slid 0.4% at $1,561 a tonne.

India's largest steel maker by sales Tata Steel fell 4.08% even after the company said its sales volume surged by 31% to 4.52 lakh tonnes in April 2009 over April 2008 led by robust demand from auto and construction sectors. Steel Authority of India, Sterlite Industries, National Aluminum Company, Hindustan Zinc and Hindalco Industries, fell by between 0.1% to 4.98%.

Rate sensitive banking stocks fell on profit taking after a sharp surge in the past few days. India's second largest private sector bank by operating income HDFC Bank fell 2.83% to Rs 1,143.50. Three block deals were executed in the HDFC stock on BSE. Two deals of 38.82 lakh shares each were executed at Rs 1140 per share while another deal of 38.82 lakh shares was executed at Rs 1175 per share.

DBS Group, Southeast Asia's biggest bank, sold its entire 2.7% stake in HDFC Bank through the block deals on BSE today, 8 May 2009.

India's largest private sector bank by net profit ICICI Bank fell 5.19% as its ADR fell 5.79% on Thursday.

India's largest bank in terms of assets and branch network State Bank of India (SBI) fell 3.06%. SBI announces Q4 March 2009 results on Saturday, 9 May 2009. A total 13 brokerages expect a between 15% fall to a 39% rise in SBI's net profit at between Rs 1601.20 crore to Rs 2626.60 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC fell 4.19%.

Outsourcing focussed IT stocks fell for the third straight day on US government plans to scrap tax incentives that encourage American firms to ship jobs overseas. India's second largest software services exporter by sales Infosys fell 2.4% as its American depository receipt (ADR) slipped 1.4% on Thursday 7 May 2009.

India's third largest software services exporter by sales Wipro fell 6.59% as its ADR fell 3.49% on Thursday. India's largest software services exporter by sales TCS fell 0.29% to Rs 630.25 off the day's low of Rs 610.

Analysts, however, feel that US government's plan to scrap tax incentives that encourages American firms to ship jobs overseas is unlikely to dent business for Indian outsourcers. US president Barack Obama on Monday, 4 May 2009, announced plans to reduce tax breaks for US-based multinationals shipping jobs to places like India. Instead, the tax incentives would now go to those creating jobs inside the US, in places like the Buffalo city, New York.

Currently, US businesses that invest overseas can take an immediate tax deduction for expenses supporting their overseas investments. They can also defer the payment of US taxes on the profits they make from such investments. But, now the Obama Administration wants to ensure that companies do not receive deductions for expenses supporting their offshore investments until they pay tax on their offshore profits. This is intended to disincentivise US companies from retaining profits abroad.

Infosys said the proposal, if implemented, was unlikely to reverse the outsourcing of a gamut of services by US firms to Indian companies. "The current proposal, as we understand, is to close corporate tax loopholes on US multinational corporations and crack down on their overseas tax havens," the company said in a statement. "We do not believe that it has anything to do with IT outsourcing done by US corporations.", Infosys said.

Rate sensitive realty stocks fell on profit taking after recent surge in prices. Unitech, Phoenix Mills, Anant Raj Industries, fell by between 0.93% to 2.04%.

DLF fell 1.84% on reports the promoters are close to finalising a deal worth around Rs 3000 crore with some foreign and domestic institutional investors to offload a little over 7% stake.

Some healthcare stocks fell on profit taking after they rose as most of the healthcare firms reported better than expected Q4 March 2009 result. Piramal Healthcare, Sun Pharmaceuticals Industries, Pfier, Biocon, Cipla, Dr Reddy's Laboratories fell by between 0.22% to 3.69%.

India's largest FMCG maker by sales Hindustan Unilever rose 0.98% to Rs 232.90 after a block deal of 3.33 lakh shares was executed on NSE at Rs 233.25 per share.

United Spirits fell 6.7% after reports Diageos talks to buy a stake in the alcohol maker have hit a roadblock.

Cement stocks fell on recent reports cement prices could fall by up to 10% in the coming months, pushed lower by new supply and slower construction activity during the monsoon season. Ultratech Cements, India Cements, ACC and Ambuja Cements, fell by between 0.43% to 4.73%.

Cals Refineries clocked the highest volume of 6.62 crore shares on BSE. Ispat Industries (3.07 crore shares), Reliance Natural Resources (1.43 crore shares), Suzlon Energy (1.36 crore shares), HDFC Bank (1.36 crore shares) were the other volume toppers in that order.

HDFC Bank clocked the highest turnover of Rs 1,524.22 crore on BSE. Reliance Industries (Rs 203.51 crore), ICICI Bank (Rs 186.57 crore), Tata Steel (Rs 177.99 crore) and Housing Development & Infrastructure (Rs 166.25 crore) were the other turnover toppers in that order.

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. 

Market Report 25-02-09

Markets bounce back after two sessions of weakness It was a positive session for the markets as they ended higher despite giving up some gains in the last one hour of trade. Volatility was visible throughout the session ahead of F&O expiry.

The Sensex finally closed 80.5pts or 0.91% higher at 8,902.56. The Nifty gained 28.6pts or 1.05% to close at 2762.5. The broad market indices too ended higher as the BSE Midcap and Small Cap indices were up by 0.53% and 0.6% respectively. Market breadth was marginally positive as A/D ratio was 1.03:1 on the BSE.

Barring the BSE Realty and Capital goods indices, all the sectoral indices ended higher. The top gainers were the BSE Auto, IT, Metals and Oil and Gas indices. The top gainers from the BSE-30 were M&M, Tata Motors, Rel infra and Maruti. The top losers were Ranbaxy, HDFC, L&T, DLF and Rcom.

With the indices recovering, traders will need to see if further upsides can sustain. Important resistances to watch are at 2800-2850 on the Nifty. Tomorrow, being derivative expiry day markets are likely to be volatile. We recommend a cautious approach.

Market analysis for 23-02-09

3:10 PM: Ambuja Cements (Rs 69) looks good as a long term bet.

The stock may have some weak spells in the near run. Once demand for new homes pick up and infrastructure development gets back on the rails, then one can see some sharp rallies in the cement space.

2:31 PM: Alstom Projects (Rs 318) can find resistance at this level. If it manages to trade firm for a few sessions, then a rise to Rs 400 is likely.

On the downside, the stock has support at Rs 260 and then at Rs 230 levels.

2:22 PM: DLF (Rs 153) can weaken to Rs 140 in the near run.  Due to short-covering, the stock may move up a bit over the next couple of sessions, but a sustained upmove looks quite unlikely for now.

2:16 PM: Hindalco (Rs 38.90) is all set to breach a crucial support at Rs 38.  The stock, if it does so, can drift down to Rs 33 or even lower.  For now, fresh buying can be avoided at the counter.

2:00 PM: Investors willing to wait long term can go in for NTPC at 5 - 10% down from its current levels.  The stock is traded around Rs 178 at present. It had touched a low of Rs 113 last October.

1:54 PM: Sugar stocks Triveni Engineering and Balrampur Chini can move up sharply and give good returns over a short run.  Sharp declines can be used as opportunities to increase exposure.  Bajaj Hindustan (Rs 45) can be tried at Rs 40 - 42 levels.

1:48 PM: Stay invested in GTL Infrastructure (Rs 31) with a stop loss near Rs 27.  The stock can give decent returns over a 6 - 9 month period.  Fresh buying can be restricted to modest levels.

1:40 PM: Wipro (Rs 213) can be retained with a stop loss at Rs 180.  The stock can drift down in the near term but its long term prospects appear quite bright.

Oracle Financial Services, Tech Mahindra and HCL Tech can be bought at sharp declines from current levels.

1:30 PM: Reliance Communications (Rs 156) can give good returns over a long run.  The stock is near October 2008 low of Rs 148.60 and is very likely to drift below that mark.  One can use sharp dips to increase exposure.

1:20 PM: Power stocks NTPC, Areva, Alstom, NLC and Power Grid can be retained for long term.  However, since the market is likely to see some big sell-offs in the near run, fresh buying can be avoided as far as possible.

1:12 PM: Tata Motors (Rs 133.40) can be bought at declines.  One can accumulate this stock in a staggered way with a long term view.

1:06 PM: Investors with a long term view can continue to hold Aurobindo Pharma (cmp Rs 145).  For now, a stop loss can be placed at Rs 120.  A modest upmove is likely even over a short run.

12:58 PM: Praj Industries (Rs 52) can be retained with a stop loss at Rs 47.  The stock can give fairly good returns over a medium run.  Thermax, Alstom Projects and Punj Lloyd are among the other good stocks for long term from the capital goods space. 

12:50 PM: ABB (Rs 387) can be picked up at declines.  The stock had hit a low of Rs 365.20 recently and a fall to that level looks very likely in the near run.

12:43 PM: SBI (Rs 1033) can move on to Rs 1045 or even higher if current momentum at the counter sustains for a while.  The stock has support at Rs 1020 and weakness around that level can result in a fall to Rs 1010 or further down.

12:37 PM: Nagaruna Construction Company (Rs 43) can drift down to Rs 40 if it continues to trade weak for a couple of sessions.  Those looking at long term can continue to hold the stock and look at buying more at sharp declines.

12:30 PM: Educomp Solutions (Rs 1613) can weaken further.  Fresh buying in the stock can be avoided for now. Those holding the stock can lighten commitments at rallies.

12:23 PM: One looking at long term can accumulate PSU bank stocks in a staggered way.  Andhra Bank, UCO Bank, syndicate Bank and Vijaya Bank are among the good low priced bank stocks.  Among the big ones, SBI and PNB look good.

12:14 PM: Some short-covering is expected ahead of February series derivatives expiry.  The rallies can be used to lighten commitments to an extent. One should refrain from building up big positions as the condition is still not conducive for a sustained upmove.

12:08 PM: JSW Steel (Rs 188) can drift down to Rs 170, a new 52- week low. On the upmove, the stock is likely to face resistance at Rs 200 and then around Rs 230. A strong breakout at Rs 230 can result in a rise to Rs 290 or even higher. 

12:00 PM: Oracle Financial Services (Rs 684) can give good returns over a 9 - 12 month span. Investors long at the counter can continue to hold the stock. Fresh buying can be considered at 5 - 10% down from current levels. 

11:52 AM: Maruti Suzuki (Rs 630) can be retained for long term.Exposure to the stock can be increased at declines. Hero Honda, Tata Motors and Bajaj Auto can also be bought at sharp declines from current levels.

11:45 AM: Traders with a good appetite for risk can go in for Satyam Computer Services for some short term gains.

The stock, currently traded at Rs 44.50, can move on to Rs 55 - 58.

11:32 AM: The Nifty (2702) has recovered some lost ground in mid morning trade.  The index now has some good support at 2675. Weakness there can result in a fall to 2660 or 2650. On the upmove, it can rise to 2725 where some resistance is seen. 

11:26 AM: Investors looking at long term can continue to hold RNRL (Rs 42). More quantities can be bought at sharp declines from here. For now, a stop loss can be placed at Rs 36. 

11:19 AM: Cairn India (Rs 154) can move up sharply this afternoon.  One willing to take chances can go in for the stock now. A stop loss can be placed near Rs 150. 

11:06 AM: Vijaya Bank, UCO Bank, Syndicate Bank and Andhra Bank may not see a significant downside from here.

Investors with a long term view can pick up these stocks at current levels or slightly lower for some solid returns over the next 12 - 18 months.

10:59 AM: Tata Teleservices (Rs 23) can be retained for now with a stop loss near Rs 19. Fresh buying can be avoided for the time being.

10:54 AM: One can stay invested in KEC International (Rs 138) with a stop loss around Rs 110.

Though the stock may not move up significantly in the near run, its long term prospects remain fairly bright.

10:48 AM: With global economy in a deep recession, the market will continue to struggle in the near run. The Sensex (8657) may re-test its October 2008 low of 7697.39 before showing some signs of a recovery.  It is advisable to keep exposure to the market at affordable levels. Being selective with regard to fresh exposure will help one in the long run.

10:41 AM: HCL Technologies (Rs 102) has hit a new low of Rs 100.10 today.  Investors with a long term plan can continue to hold the stock and look at buying more at declines from here. Though the stock may find the going tough in the near run, its long term prospects remain quite bright.

10:35 AM: Some leading analysts and brokerage houses expect Pantaloon Retail to outperform the market.  The stock has taken a beating this morning, losing more than 7% at Rs 134. Investors with a medium to long term plan can pick up the stock at Rs 110 - 115 levels.

10:28 AM: Shriram EPC has been awarded an order worth Rs 70 crore for wind turbines from Cape Energy Private Limited, an associate of Bergurruen Holdings, a PE funded company with infrastructure and real estate development in India.  The thinly traded stock, is down 1.65% at Rs 90 now. It had touched a low of Rs 85 late last month.

10:18 AM: Power Grid Corporation (Rs 87) can be retained for long term with a stop loss near Rs 52.One can look at buying more of this stock at sharp declines from here.

10:12 AM: Bank and realty stocks are among the worst hit in the sell-off this morning. Mirroring their fall, the Bankex and Realty have lost around 3.3% now.  Though some modest buying is likely at lower levels, it is going to be a slippery ride for several bank stocks in the very short run. 

Realty stocks may take longer time to bounce back into the reckoning. Still, not many from this space are expected to regain even 20 - 25% of what they have lost from their historic highs. 

9:58 AM: The market has opened on a negative note this morning due to weak global cues. 

The Sensex, after opening at 8707.35, around 135 points down, has slipped to 8670.54 now, netting a loss of 172.46 points or 1.95%.

The Nifty has lost 45.30 points or 1.66% at 2691.15.

DLF, ICICI Bank, RIL, HDFC, Bharti Airtel, Reliance Infra, HDFC Bank, Sterlite, SAIL, ABB, M&M and Tata Steel have declined sharply