Brokerage Recommendations 20 July 2009

Brokerage Recommendations 20 July 2009

Buy Sesa Goa on any correction with a target of Rs 265-270, says Ashwani Gujral, technical analyst, on CNBC TV18. The charts are the strongest, he adds. It is currently trading at Rs 236, up 8.4% on the BSE.

Buy Dr Reddy with a target of Rs 850 and stop loss of Rs 750, says Neera Jain of crnindian.com, on CNBC Awaaz. The stock is currently trading at Rs 790, up 2.7% on the BSE.

Buy Infosys with a target of Rs 2050, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1969, up 5.5% on the BSE.

Buy ICICI Bank with a target of Rs 811 and stop loss of Rs 757, says Mitesh Thakkar, technical analyst, on CNBC TV18, as closing market strategy.

The technology sector was ignored and underowned, and is now likely to rally, says Ashwani Gujral, technical analyst, on CNBC TV18. Buy TCS with a target of Rs 530-565, he says. The stock is currently trading at Rs 495, up 14% on the BSE.

The market sentiment and momentum is good and strong, says Sajeev Dhavan of JV Capital Services, on CNBC TV18. The trend now is to go long, revise stop losses upwards as we are likely to see higher levels, he adds. This is a buy on dips market, he says.

The market is looking good and continues to trade strong. Nifty is trading above the crucial 4500 level. Sensex is trading at 15190, up 446 points and Nifty is at 4502, up 127 points from the previous close. CNX Midcap index is up 2.73% and BSE Smallcap index is up 2.45%. BSE IT index is up 7%, while there is good buying in technology, realty and banking stocks.

In an F&O call, buy Nifty July futures with a target of 4525 and stop loss of 4430, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. This is a bullish trend and one can buy on dips as the market is likely to go to 4580, he says.

In an F&O call, buy Nifty July futures with a target of 4700 and stop loss of 4400, says Hardik Jain, technical analyst, on CNBC Awaaz. This is a buy on dips market, he says.

In an F&O call, buy Nifty July futures with a target of 4500-4700 and stop loss of 4200, says Hormuz Maloo, technical analyst, on CNBC Awaaz. The medium-term trend is strong, so one can buy in a 100-point correction, he says.

In an F&O call, sell Nifty July futures with a target of 4350 and stop loss of 4550, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The market is likely to see a short covering rally for the next 2-3 sessions, she says.

Buy Shree Renuka Sugars with a target of Rs 155 and stop loss of Rs 135, says Neera Jain of crnindian.com, on CNBC Awaaz. The stock is currently trading at Rs 144, up 0.17% on the BSE.

Buy Allahabad Bank with a medium term target of Rs 92-99-128 and stop loss of Rs 74, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 86, up 9.7% on the BSE.

Buy Ashok Leyland with a target of Rs 38 and stop loss of Rs 31, says Neera Jain of crnindian.com, on CNBC Awaaz. The stock is currently trading at Rs 33, down 1.32% on the BSE.

We see a 60% probability that this is a new bull market, says Ridham Desai of Morgan Stanley on CNBC TV18. Unlike in 2003, this time it is a buy on dips market, he says. Government needs to pursue progressive reforms, he says. But may see another couple of tepid earnings season, he feels.

RNRL-RIL gas sharing case adjourned till September 1, reports NDTV Profit. Supreme Court to consider whether Third Party can intervene in the matter. RIL is trading at Rs 2015, up 4.2% and RNRL is at Rs 80, down 2.89% on the BSE.

SMC Global Securities maintains a buy call on Mahindra & Mahindra with a target of Rs 850 in two months, reports CNBC Awaaz. The stock is currently trading at Rs 798, up 2.5% on the BSE.

Hold South Indian Bank for the medium term with a target of Rs 130-135 once it crosses Rs 105, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 104, up 1.6% on the BSE.

ICICI Securities maintains a buy call on TCS with a target of Rs 525 in one year, reports CNBC Awaaz. The stock is currently trading at Rs 509, up 17.41% on the BSE.

Buy Gammon India, Sobha Developers, HCC on a correction for good long-term gains, says Rajesh Tambe of Sunchan Securities on Zee Business.

Buy Mahindra Lifespace with a target of Rs 419, says Dipan Mehta, BSE/NSE Member, on Zee Business. The stock is currently trading at Rs 300, up 7.26% on the BSE.

Bonanza maintains a buy call on BoB with a target of Rs 435 and stop loss of Rs 417, reports CNBC Awaaz. The stock is currently trading at Rs 430, up 3.5% on the BSE.

Asian markets have seen a tearing rally while European markets have opened firm. Our market is also trading on a good note. Sensex is trading at 15149, up 404 points and Nifty is at 4491, up 116 points from the previous close. CNX Midcap index is up 2.24% and BSE Smallcap index is up 2.30%. There is buying in IT, realty and banking stocks. The market breadth is positive with advances at 951 against declines of 249 on the NSE.

Hold RIL with target of Rs 2120-2140 in the next few days if the market remains in an uptrend, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 2015, up 4.2% on the BSE.

Buy Satyam with target of Rs 130, says Hemen Kapadia, technical analyst, on NDTV Profit. It has support at Rs 66, he adds. The stock is currently trading at Rs 94.35, up 5.8% on the BSE.

Buy Suzlon Energy at Rs 84-85 with target of Rs 110-125, Hitendra Vasudeo, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 75, he adds. The stock is currently trading at Rs 95.65, up 0.1% on the BSE.

Hold TCS for good returns in the future, says Rajesh Tambe of Sunchan Securities on Zee Business. The fundamentals of this company are good, he adds. The stock is currently trading at Rs 496, up 14.4% on the BSE.

Hold TCS with target of Rs 525-540 in the next few weeks, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 495.50, up 14.3% on the BSE.

Hold Sterlite Technologies with target of Rs 250-275 in one year, says DD Sharma of Anand Rathi Securities on CNBC Awaaz. The stock is currently trading at Rs 202.15, up 3.3% on the BSE.

Book profits in Suzlon Energy at Rs 130-140, says Paras Bothra of Ashika Stock Broking on NDTV Profit. The stock is currently trading at Rs 96.10, up 0.5% on the BSE.

Hold Glenmark Pharma and exit at Rs 250, says Pankaj Jain of Satguru Capital on Zee Business. Instead invest in Ranbaxy which is a better stock, he adds. The stock is currently trading at Rs 241, up 3.9% on the BSE.

At noon, the market is trading firm and near the day's high. Sensex is trading at 15051, up 306 points from its previous close, and Nifty is at 4462, up 87 points. CNX Midcap index is up 2.1% and BSE Smallcap index is up 2.2%. The market breadth is positive with advances at 941 against declines of 259 on the NSE.

Buy Tata Steel at Rs 300-365 with short-term target of Rs 450, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 394.65, up 0.5% on the BSE.

There has been a good run-up in the market on some financial reforms post budget, says Milind Barve of HDFC AMC on CNBC TV18. He believes that investors should still keep a close eye on earnings as it is still early to take a call of them. I think monsoon is unlikely to impact the market too much, he adds.

Hold LIC Housing Finance which will give good appreciation in the future, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 634.80, up 1.9% on the BSE.

Buy Satyam above Rs 90-92 with target of Rs 125, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 93, up 4.3% on the BSE.

Buy JSW Steel which is showing a good upmove, says Prakash Gaba, technical analyst, on CNBC Awaaz. Keep short-term target of Rs 650 he adds. The stock is currently trading at Rs 606, up 0.9% on the BSE.

Hold Jindal Steel & Power with long-term target of Rs 3000, says Pankaj Jain of Satguru Capital on Zee Business. It has good support at Rs 2250, he adds. The stock is currently trading at Rs 2645, up 0.9% on the BSE.

Buy Indiabulls Real Estate with targets of Rs 250 and then 280, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 228, up 0.8% on the BSE.

Buy Crompton Greaves at Rs 300 with target of Rs 330, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 285, he adds. The stock is currently trading at Rs 290.25, down 4.1% on the BSE.

Hold Satyam with short-term target of Rs 95, says Pankaj Jain of Satguru Capital on Zee Business. It is currently trading in the range of Rs 75-95, he adds. The stock is currently trading at Rs 93, up 4.3% on the BSE.

Buy Satyam which is looking good for the long term, says Prakash Gaba, technical analyst, on CNBC Awaaz. Keep targets of Rs 100 and then 130, he adds. The stock is currently trading at Rs 93.25, up 4.6% on the BSE.

Buy Voltas with target of Rs 140, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 120, he adds. The stock is currently trading at Rs 131.80, up 1.4% on the BSE.

Buy Bank of Baroda at Rs 415 with target of Rs 440, says Sudarshan Sukhani, technical analyst, on CNBC TV18. Keep stop loss below Rs 400, he adds. The stock is currently trading at Rs 423.50, up 2% on the BSE.

Buy NIIT Tech with target of Rs 112, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 98, he adds. The stock is currently trading at Rs 105.55, up 1.3% on the BSE. » Send to friends

Buy Firstsource with intra-day target of Rs 24, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 21, he adds. The stock is currently trading at Rs 22.40, up 1.6% on the BSE.

Buy Karnataka Bank with target of Rs 150, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 130, he adds. The stock is currently trading at Rs 141.65, up 25 on the BSE.

Buy Shree Renuka Sugars with intra-day target of Rs 152, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 142, he adds. The stock is currently trading at Rs 145.50, up 0.5% on the BSE.

Buy ICICI Bank at Rs 743 with intra-day target of Rs 760, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 734, she adds. The stock is at Rs 742.45, up 6.8% on the BSE.

Buy Kajaria Ceramics with intra-day target of Rs 39, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 35, he adds. The stock is at Rs 36.40, up 10% on the BSE.

The TCS numbers are better than street estimates but the guidance is slightly muted, says Jagdish Malkani of Taib India on CNBC TV18. The upside for the market looks limited and I expect selling pressure above 4400 on the Nifty, he adds.

Buy Satyam at Rs 89 with intra-day target of Rs 94.50, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 87, she adds. The stock is at Rs 89.15, up 8.7% on the BSE.

Free float on NSE

Mumbai, March 25 The National Stock Exchange will now use the free float market capitalisation methodology to calculate its benchmark indices, it said on Tuesday.

Currently, the Bombay Stock Exchange uses free float market capitalisation for computing the value of its benchmark index, the Sensex.

Methodology
Under the free float method, the index is calculated on the basis of the floating stock or the open market shares of the company as against the method of full float based on the market capitalisation method.

Along with S&P CNX Nifty, Nifty-100 and its dollar index Defty will also be calculated on the basis of free floating market capitalisation, according to the NSE release.

The change in the method of calculation for S&P CNX Nifty and Defty will be effective from June 26, 2009, while for Nifty Junior, this methodology will come into effect from May 4, 2009.

The free float factor (Investible Weight Factor – IWF) for each company in the index will be determined based on the public shareholding of the companies as disclosed in the shareholding pattern submitted to the stock exchanges by these companies, the release mentions.

The Government holding in the capacity of strategic investor, shares held by promoters through ADRs and GDRs, strategic stakes by corporate bodies, investments under FDI category and equity held by associate or group companies would be excluded from the free float factor where identifiable separately, according to the press release.

Free float factor for each company in the index will be updated based on the shareholding pattern submitted on a quarterly basis by companies to the stock exchanges, the release said.

There will be quite a few stocks which will see an increase in their weightage in the index while many would witness a reduction in their weight on the index, said Mr Manish Sonthalia, Vice President -Equity Strategy, Motilal Oswal Financial Services.

Mutual funds and index funds will have to re-align their portfolios according to the change in the weightage of the index stocks, said Mr Sonthalia.

Stocks such as Reliance, Infosys and ICICI would gain under the new free float method, while stocks such as NTPC and ONGC would be among the big losers, said marketmen.

CNX Realty, CNX PSU Bank Index, S&P CNX Nifty Shariah Index and S&P CNX 500 Shariah Index maintained by the NSE’s group company India Index Services and Products Ltd are already being computed using free float market capitalisation methodology, the release added.

source :businessline

BSE, NSE Brokerage Recommendations 22 Jun 2009

Buy HPCL with a target of Rs 325 and stop loss of Rs 290, says Raj Kishore Bank, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 305, up 1.14% on the BSE.

Sell Ultratech Cements with a target of Rs 620 and stop loss of Rs 700, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 656, down 1.99% on the BSE.

Buy Nifty 4300 June puts and sell 4100 puts, says Nitin Muraka of SMC Global Securities on Zee Business, as closing market strategy.

Buy Nifty with stop loss of 4225 and target of 4350, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy.

Hold Nifty short positions with stop loss of 4325 and target of 4200, says Vijay Bhambwani, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Sesa Goa June futures with a target of Rs 214 and stop loss of Rs 242, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 189, up 0.96% on the BSE.

Buy Jay Shree Tea with a target of Rs 210 and stop loss of Rs 170, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 200, down 2.88% on the BSE.

Buy Bank of Baroda June futures with a target of Rs 490-510 and stop loss of Rs 242, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 440, up 1.45% on the BSE.

In an F&O call, buy Nifty June futures with a target of 4325 and stop loss of 4210, says Nishant Jain of Tradeswift, on CNBC Awaaz.

In an F&O call, buy Nifty June futures with a target of 4300 and stop loss of 4225, says Hemen Kapadia, technical analyst, on CNBC Awaaz.

In an F&O call, sell Nifty futures with a target of 4220 and stop loss of 4280, says Salil Sharma of Kapoor & Sharma Company, on CNBC Awaaz. He suggests shorting Nifty if it crosses 4260.

Buy Bajaj Hindustan with a target of Rs 235 and stop loss of Rs 192, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 213, down 0.51% on the BSE.

Hold Central Bank with a target of Rs 100-125 where one can book part profits, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 86, up 1.29% on the BSE.

Sell Tata Steel with a target of Rs 380 and stop loss of Rs 430, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 407, down 1.22% on the BSE.

BHEL has bagged an order of Rs 105 crore for captive power plant, reports NDTV Profit. The stock is currently trading at Rs 2099, up 0.45% on the BSE.

Buy ICICI Bank with a target of Rs 800 and stop loss of Rs 700, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 733, up 2.81% on the BSE.

SMC Global Securities maintains a buy call on Infosys with a target of Rs 1950 and stop loss of Rs 1670, reports CNBC Awaaz. The stock is currently trading at Rs 1759, down 0.63% on the BSE.

Hold Renuka Sugar with a stop loss of Rs 124, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 130, down 2.68% on the BSE.

Jindal Saw has bagged an order of Rs 1000 crore, reports Zee Business. The stock is currently trading at Rs 382, up 4.6% on the BSE.

If Nifty breaks 4650 decisively, meaning holds that level for a week or so, the market could challenge the old highs of Nifty 6100, says Rakesh Jhunjhunwala, market expert, on CNBC TV18. Market unlikely to breach 4000 Nifty level in 6-9 months, he adds.

Hold Ashok Leyland because there is still some upside left in it, says Hemen Kapadia, technical analyst, on NDTV Profit. It has support at Rs 28 and resistance at Rs 38, he adds. The stock is currently trading at Rs 30.30, down 1.5% on the BSE.

Buy Ispat Industries at Rs 20 with short-term target of Rs 30, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 22.75, down 0.4% on the BSE

Buy Voltas with target of Rs 144, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 126, up 4.8% on the BSE.

There is a chance that the global counter trend rally may be over, says Chris Wood of CLSA on CNBC TV18. However, he would still not bet aggressively on this view in terms of shorting the market and base case S&P 500 target of 1000-1050 remains intact. Even if Asian equities head higher over the next two months, any subsequent correction will bring them lower than current levels, he adds.

Buy SAIL at Rs 135-145 with long-term target of Rs 250, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 152.50, up 0.10% on the BSE.

Hold ICICI Bank with target of Rs 900 in two months, says Hemen Kapadia, technical analyst, on NDTV Profit. It has support at Rs 684 and resistance at Rs 795, he adds. The stock is currently trading at Rs 739.10, up 3.6% on the BSE.

Hold GMR Infra with short-term target of Rs 185, says Prasad Kushe, technical analyst, on CNBC Awaaz. Long-term investors can hold with target of Rs 250, he adds. The stock is currently trading at Rs 145.40, down 0.9% on the BSE.

Buy RIL at Rs 1860 with target of Rs 2600-2700 in 3-4 months, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1998.10, down 2% on the BSE.

Buy Bharti Airtel on dips with long-term view, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 807, up 0.2% on the BSE.

Hold SBI with target of Rs 1850, says Prakash Gaba, technical analyst, on CNBC Awaaz. It has support at Rs 1600, he adds. The stock is currently trading at Rs 1731.95, up 0.8% on the BSE.

Hold Tata Steel with short-term target of Rs 500, says Prasad Kushe, technical analyst, on CNBC Awaaz. Buy again at Rs 375 and then hold with long-term target of Rs 600, he adds. The stock is currently trading at Rs 418.20, up 1.6% on the BSE.

Hold JSW Steel and buy more on dips, says Rajesh Tambe of Sunchan Securities on Zee Business. The international and domestic news on the steel sector are encouraging, he adds. The stock is currently trading at Rs 631.90, up 4.4% on the BSE.

Hold KS Oil with stop loss of Rs 55, says Pankaj Jain of Satguru Capital on Zee Business. It has resistance at Rs 63 crossing which it can go up to Rs 70 at which level exit, he adds. The stock is currently trading at Rs 59.65, down 1% on the BSE.

Hold Tata Tea with target of Rs 850-925 in 12-18 months, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 735.55, up 1% on the BSE.

Hold JSW Steel with target of Rs 675, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 633, up 4.6 on the BSE.

Buy Patni Computers with target of Rs 275-280, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 225, he adds. The stock is currently trading at Rs 256.80, up 6.1% on the BSE.

Invest in Kalindee Rail for long term, says Daljeet Kohli of Emkay Shares and Stock Brokers on CNBC Awaaz. Fundamentals of this company are good, he adds. The stock is currently trading at Rs 199.20, up 7.1% on the BSE.

Buy Punj Lloyd with target of Rs 220-225, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. It has support at Rs 164, he adds. The stock is currently trading at Rs 202, up 3.7% on the BSE.

Hold Tech Mahindra for long term with target of Rs 1000 plus, says Pankaj Jain of Satguru Capital on Zee Business. The stock is currently trading at Rs 769, up 1.1% on the BSE.

Buy SBI with target of Rs 1765, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of Rs 1700, he adds. The stock is currently trading at Rs 1756, up 2% on the BSE.

Hold Gateway Distriparks with target of Rs 120, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 100.75, down 0.2% on the BSE.

Buy HPCL with intra-day target of Rs 310, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 300, he adds. The stock is currently trading at Rs 302, up 0.1% on the BSE.

Sell Mahindra & Mahindra at Rs 732 with target of Rs 721, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 745, she adds. The stock is currently trading at Rs 729, down 1.1% on the BSE.

Buy Reliance Communications with intra-day target of Rs 325 says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of 303, he adds. The stock is currently trading at Rs 315,up 3.2% on the BSE.

Buy Bank of Rajasthan with intra-day target of Rs 65, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 59, he adds. The stock is currently trading at Rs 62.05, up 4.2% on the BSE.

Buy JSW Steel at Rs 610 with target of Rs 625, Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 600, she adds. The stock is at Rs 611.95, up 1.1% on the BSE.

Buy HDFC at Rs 2291 with target of Rs 2330, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 2270, she adds. The stock is at Rs 2294.70, up 1% on the BSE.

Market Voices 22 Jun 2009

Market Voices 22 Jun 2009

After a positive start and a subsequent fall this morning, the market rebounded smartly this morning only to plunge deep down into the red in afternoon trade.

While the positive trend in Asian markets prompted a bright start, weakness in European markets and lower U.S. index futures sent stock prices tumbling down into the red this afternoon.

The Sensex, after moving in a range of around 400 points - it touched a high of 14,668 and a low of 14,269 today -, provisionally ended at the day's low, recording a big loss of 252 points or 1.74%. The Nifty closed at 4222.70, down 90.90 points or 2.11%.

Oil stocks, led by heavyweights Reliance Industries and ONGC declined sharply. Metals and realty stocks had a good spell but failed to hold at higher levels and ended on a weak note. Power, PSU, auto and IT stocks also ended lower. Select bank, capital goods and FMCG stocks posted notable gains.

Maruti Suzuki, ITC, ICICI Bank and L&T ended on a firm note. Tata Power, Grasim, Hindalco, Reliance Infra, M&M, Tata Motors, NTPC, TCS, Sterlite, Tata Steel, DLF, HDFC Bank, SBI and Bharti Airtel ended with sharp losses.

Ambuja Cements, Nalco, Unitech, HCL Tech, SAIL, RPower, Tata Comm, Reliance Capital, Suzlon, Siemens, Idea Cellular, Cairn India and GAIL India closed with notable losses.

Midcap and smallcap stocks failed to retain gains. The market breadth was weak at close.

Ambuja Cements (Rs 86.50) is a good buy at declines. The stock is likely to see some weakness in the near term, but one holding the stock can stay invested and buy more at dips. Short term traders can make an exit at Rs 100 - 105 levels and get back into the counter later at declines.

The market will be looking for global cues this week. With the U.S. Federal Reserve to meet and come out with its outlook on interest rates, the market is sure to get some direction this week.

The expiry of June series derivatives will also have a say in the market's direction. A moderate to high degree of volatility is in the offing. Investors looking for fresh exposure would do well to stay at the sidelines for now.

One can go in for bank stocks for decent gains over a short to medium term. Low priced stocks such as Syndicate Bank, UCO Bank, Central Bank of India, Dena Bank and Andhra Bank can be bought for solid gains.
Among the big ones, SBI and HDFC Bank can give fairly good returns over a 6 - 9 month period.

BHEL (Rs 2093) may see some weakness in the near term. But one can hold the stock with a stop loss near Rs 1950 for now. In the event of the stock breaching a support at that level, a fall to Rs 1800 or even lower is not ruled out. Still, one willing to wait long term can use such a dip to increas exposure to the counter.

It is widely speculated in the market circles that Neyveli Lignite Corporation could be one of the candidates on the government's disinvestment list. The stock, currently traded at Rs 120, is a good one for long term. One can go in for it at sharp declines.

Reliance Communications is reported to have started preliminary talks with China Mobile, the world's largest mobile company, for a strategic alliance and possible equity participation of 5 to 6 per cent. The stock is trading at Rs 302, down by around a per cent. Investors holding the stock with a long term plan can continue to stay invested and increase exposure at dips.

Parsvnath Developers has announced that its shareholders have approved raising up to Rs 2,500 crore through issue of securities and to increase the foreign investment limit in the company by up to 40 per cent. The stock, traded at Rs 83, can be tried at declines for long term.

One can go in for Bhart Airtel (Rs 801) at sharp declines. Though the stock is likely to see some downside in the near run, its long term prospect continue to remain bright. One would do well to pick up the stock in a phased manner.

Infrastructure stocks GMR Infra, Gammon, PBA Infrastructure, RIIL and IVRCL Infrastructure may see some weak spells in the near run. however, investors looking at long term can treat sharp dips as opportunities to buy these stocks.

Reliance Industries (cmp Rs 1996) can be picked up in a staggered manner at declines. Long term investors can stay invested in the stock and look to buy more around Rs 1850- 1875 levels. Short term traders can use rallies to book profits and buy back later at declines.

Patni Computer Systems (Rs 258) can move up to Rs 280 or even higher if it manages to break a resistance near Rs 265. One holding the stock with a long term view can stay invested with a trailing stop loss. Short term traders can exit around Rs 280 and re-enter later at declines. For now, a stop loss can be placed near Rs 220.

Jindal Saw has bagged orders worth over Rs 1,000 crore for supply of large diameter pipes and ductile iron pipes for domestic and export markets. The domeistic supply orders are from GAIL and HPCL while the export orders are primarily from middle-easter market. The total order book of JSL now stands at around Rs 3,600 crore. The Jindal Saw stock is up by as much as 4.55% at Rs 382.40 at present.

Dolphin Offshore Enterprises India Ltd has informed that the company has received an LOI for Structural Modification work at unmanned platforms in MH for deployment of Modular rig on turn key basis by M/s. Instrumentation Ltd. The value of the said LOI is around Rs 106 crore and the completion date of this contract, which will commence shortly, is May 28, 2011.

McNally Bharat Engineering Company Ltd has received an order from Paradip Port Trust for Design, Manufacture, Supply, Installation and Commissioning of two 3000 TPH capacity Reclaimers at Paradip, in Jagatsinghpur district, Orissa. The value of the order is estimated to be around Rs 30.60 crore including taxes and duties.

ABB Limited has won orders worth worth Rs 550 million to provide the electrical infrastructure for modernization of Kolkatta airport.
The ABB stock is up 1.5% at Rs 752.25 at present. The stock, after opening at Rs 750, rose to Rs 766.85 earlier this morning.

Market Outlook

The market is likely to open on a cautiously positive note this morning. Short-covering ahead of derivatives expiry and bargain hunting after some severe setbacks suffered in the previous week may buoy up prices of a few front line stocks. Some volatility is in the offing.

Sector Watch

Technology stocks are likely to attract attention. Some battered down metals and realty stocks are expected to bounce back. Bank stocks may edge higher. FMCG and pharma sectors will see stock specific action.

Scrip Watch

Neyveli Lignite Corporation Limited has posted a net profit of Rs 8210.90 million for the year ended March 31, 2009 as compared to Rs 11015.70 million for the year ended March 31, 2008. Total Income has increased from Rs 36380.70 million for the year ended March 31, 2008 to Rs 40198.90 million for the year ended March 31, 2009.

SBI may edge higher with the bank's board approving the acquisition of State Bank of Indore. State Bank of India has already absorbed State Bank of Saurashtra and has said it is progressively looking to merge its other associate banks as well.

DLF is likely to be in focus on reports that the company is close to raising $300 million through external commercial borrowing to invest in its integrated township projects.

Oil stocks will be in focus on reports that the oil ministry is examining a proposal to force oil and gas producers to pay royalties to the government on the basis of sale prices rather than the present system of wellhead value. ONGC, Cairn India and RIL are likely to be affected by the move.

Sun Pharmaceutical Industries is likely to see action following the company getting the US FDA nod to launch generic version of Pfizer's blood pressure drug Accupril. The drug has annual sales of about $45 million in the United States.

Macro and Market Factors

The Wall Street ended on a mixed note on Friday last week after a lackluster session. Asian markets are exhibiting a steady trend today and this is likely to prompt a positive start on the Indian bourses this morning.

Closing Bell 22 Jun 2009

Closing Bell 22 Jun 2009

Persistent selling activity during the final hour of trade led the indices to end the day on a weak note. The BSE-Sensex ended lower by around 200 points, while the NSE-Nifty closed lower by about 80 points. Stocks from the mid-cap and small-cap spaces ended the day on a weak note as well, recording losses of about 0.6% and 0.3% respectively. While stocks from the oil & gas and metals space led the pack of losers today, stocks from the FMCG and capital goods sectors managed to garner investors’ interest.

Other Asian markets ended the day on a mixed note today. The European indices are currently trading in the red. The Rupee was trading at 48.55 against the US dollar at the time of writing.

Retail stocks ended the day on a mixed note. While Shopper’s Stop ended the day on a firm note, Trent and Pantaloon ended the day on a weak note. Retail major, Pantaloon is planning to invest about Rs 2.5 bn within the next eighteen months for setting up ten ‘Central malls’ across India. As per the management, the company will be expanding its retailing space by about 10% to 12% as it plans to add nearly 1.5 m to 1.7 msqft (million square feet) to its existing retail space of about 14 msqft. Some of the locations the company has identified include Ahmedabad, Bangalore, Vizag, Raipur and Jaipur. As per a leading business daily, the company has already tied up funds for the same. Last month, the company had raised about Rs 3.7 bn through a preferential allotment. Further, it is believed that the company will raise long term funds to the tune of Rs 10 bn by issuing securities to various investors.

Energy stocks ended the day on a weak note led by Reliance Industries, GAIL and Gujarat Gas. As per a leading business daily, upstream energy major, ONGC has made oil and gas discoveries in three regions – Cambay basin, Matar (Gujarat) and KG Basin. The company is believed to have found oil in the Cambay basin, oil and gas in Matar and gas in the KG basin. However, the reserve estimates for these locations are still unknown. This is a welcome development for the company at a time when it is actively scouting for hydrocarbon assets both in India and abroad in order to boost India’s energy security.

Apparel exports for the month of April 2009 have fallen by about 10% YoY. According to official numbers, garment exports dropped from US$ 886 m in April 2008 to US$ 800 m in April this year. Considering that demand from Europe and the US has been on the decline over the past few months, the industry is expecting a 10% to 15% YoY fall in exports during the month of May 2009. In addition to this, the industry’s exporters have also been facing stiff competition from countries such as Vietnam, Cambodia and Bangladesh.


Markets in Motion

ICICI Bank to slash costs, stock up
(2:30 pm)

The Indian markets could not hold on to their early hour gains and slipped into the red during the previous two hours of trade on account of huge selling activity witnessed across the index heavyweights. Stocks from the cement, aluminium and software sectors are leading the pack of losers, while select stocks from the banking, energy and FMCG sectors are trading firm. The overall decline to advance ratio is poised at 1.2 to 1 on the BSE.

The BSE Sensex and NSE Nifty are trading lower, down by 60 points and 20 points respectively. However, the BSE Midcap and BSE Smallcap indices are trading marginally higher by around 0.3% and 0.2% respectively. The Rupee is trading at 48.41 to the Dollar.

Banking stocks are trading mixed. While ICICI Bank and Axis Bank are trading higher, HDFC Bank and SBI are trading lower. As per a leading business daily, ICICI Bank is aiming to save up to Rs 13 bn in FY10 by trimming costs on sales agents. The bank is reviewing its business model and is planning to drive a greater share of its consumer business through its branch network. It may be noted that the bank has been rationalising its workforce of direct marketing and sales agents as well as renegotiating rentals. This is in line with the banks cost cutting exercise which began in FY08. As a matter of fact, ICICI bank decreased its direct marketing agents cost by 65% to Rs 5.3 bn in FY09. Also, it has doubled its branch network to 1,400 in the last two fiscals and plans to add another 600 branches in the next one year. This is a positive move by the bank, as it will not only help it to grow its network but will also enable it to earn revenues from the branches.

Telecom stocks are trading mixed. While Rcom and Bharti Airtel are trading lower, Spice Communications is trading higher. As per a leading business daily, Reliance Communications (Rcom) has started preliminary talks with China Mobile for a strategic alliance and a likely equity participation of around 5% to 6%. However, the company has not disclosed anything on the same. It may be noted that Rcom would require cash of around Rs 40.4 bn in order to bid for licenses for 3G services auctions which are likely to be held in the current fiscal. As a matter of fact, the company also announced its plans to issue equity shares to qualified institutional buyers to fund its 3G bid, expand its broadband network and strengthen its financials. Interestingly, RCom is not the only Indian company which is looking for the international alliances. Recently, Bharti Airtel signed an agreement with South Africa’s MTN, while Tata Teleservices has sold around 26% of its stake to Japan’s NTT DoCoMo.

DLF to raise more funds, stock up
(12:30 pm)

Despite some volatility, the BSE remained in the positive territory during the previous two hours of trade gaining 35 points. The NSE traded in the red, down by 5 points. Currently, stocks from the banking, consumer goods and realty sectors are leading the pack of gainers, while select stocks from the auto and oil and gas sectors are trading weak. The overall advance to decline ratio is poised at 1.7 to 1 on the BSE.

The BSE-Midcap and BSE-Smallcap are also trading firm, up by around 1.12% and 0.81% respectively. The Rupee is trading at 48.29 to the Dollar.

According to a leading daily, Tech Mahindra, the new owner of the scam-hit India's IT major, Satyam Computer Services Ltd., has decided to re-brand the latter as "Mahindra Satyam". The management decided to retain a part of Satyam's identity as a testimony to the commitment, purpose and proficiency of the company. This, as yet another step towards the recovery of the company, is expected to be well-received from all the stake-holders of the two firms.It is believed that Satyam which has a strong-hold in the area of ERP can complement Tech Mahindra's expertise in the telecom and business support systems vertical. Stocks of both the firms along with other major stocks like Infosys, TCS from the IT sector are trading in the green.

DLF, India's biggest real estate developer, is all set to increase its debt by US$ 300 m through external commercial borrowings (ECB). In order to fund its integrated township projects, the cash-strapped firm will be taking a long-term loan from Standard Chartered Bank at a considerably lower rate of 7%. DLF already has a net debt of Rs 140 bn on its books at the end of March and has been raising long-term loans in the domestic market to replace its short-term debt. The stock of the company is trading in the positive. The other stocks from the realty sector are trading weak.

Sun Pharma sued, stock down
(10:30 am)

In line with its global peers, the Indian markets too have started the week's proceedings on a positive note. Baring select energy stocks, all the stocks on the Nifty are trading higher. The overall advance to decline ratio stood at 3.5 to 1 on the NSE. As regards global markets, while the Dow ended in the red last Friday, the NASDAQ ended marginally in the positive. The European markets ended higher last Friday, while the Asian markets are trading firm currently.

The BSE Sensex is trading higher by around 80 points. The NSE Nifty is up 15 points. The BSE Midcap and the BSE Smallcap indices are up 1% each. The rupee is trading at 48.02 to the dollar.

Ess Dee Aluminium (EDAL), which recently acquired India Foils (IFL), is planning to pump in Rs 2 bn to add fresh capacity at the latter's Hoera unit. As part of the plan, EDAL has decided to add nearly 60,000 tonnes of capacity to manufacture aluminium packaging foils at Hoera. The latter unit will thus be positioned as IFL's main growth engine. EDAL had acquired 90% stake in IFL, from Madras Aluminium (MALCO), a Vedanta Group company. The company along with MALCO had infused Rs 2.61 bn in IFL in the form of equity and preference shares which would help repay all outstanding debt IFL has with various lenders, thus making it totally debt free. EDAL has a capacity of 18,000 tonnes. The move would enable Ess Dee Aluminium to more than double its capacity and meet the growing demand from the pharma and FMCG sectors. The stock, along with India Foils, is trading firm.

US pharma major Pfizer has charged Sun Pharma of violating a patent when the latter sought approval for its generic version of 'Lyrica', a blockbuster drug used to treat seizures. In a case filed earlier in the US courts, Pfizer had alleged that Sun Pharma infringed on a patent that Pfizer and Northwestern University held. Pfizer's patent protection for this drug is valid till 2018. 'Lyrica' currently ranks third in the anti-seizure market, and is estimated to have global sales of approximately US$ 1.2 bn. Pfizer is seeking an injunction that would bar Sun from marketing and manufacturing generic versions of 'Lyrica' (Pregabalin) prior to patent expiration as well as monetary relief (if Sun were to sell its generic product) besides fees and costs. This move by Pfizer is in the normal course of things with respect to Para IV filings, wherein the innovator company (in this case Pfizer) sues the generic company who has made the Para IV filing (in this case Sun Pharma). Pharma stocks are trading mixed.

Market Voices 18 June 2009

Market Voices 18 June 2009

With the bears going on a rampage once again, the market ended with big losses for the second successive session today. Weakness in Asian and European markets amid fresh concerns about global economy weighed in once more and took the wind out of several front line stocks.

Realty and metal stocks were among the worst hit. Cement stocks too suffered heavy losses. Power, capital goods and oil stocks declined sharply. IT and pharma stocks outperformed. Midcap and smallcap stocks were battered once again. The market breadth was very weak.

ACC, JP Associates, Tata Steel, Hindalco, Grasim, NTPC, ONGC and Reliance Infra lost 4% - 8.25%. L&T, DLF, RComm, BHEL, ICICI Bank, Ranbaxy, Sterlite, Maruti, HDFC Bank and RIL also ended with sharp losses. SBI, Sun Pharma, Tata Motors and Infosys bucked the trend and closed on a firm note.

The market is likely to see some heavy buying early next week as traders are likely to indulge in hectic short-covering ahead of derivatives expiry.

But movements are likely to remain extremely volatile during that period and hence traders with a very low appetite for risk would do well to stay away at the sidelines. Those running in profits can use sharp rallies to lighten commitments.

Tata Consultancy Services has opened a deliver center in Queretaro.
With the opening of this center, TCS has expanded its presence in Mexico with the Global Delivery Center Opening in Queretaro. The company expects to hire 500 professionals during the current fiscal for its new center.

LIC Housing Finance (Rs 586) is likely to see some profit taking.
The stock, which was down at Rs 150 in early December 2008, has come a long way since then on good results and on hopes of a surge in demand for home loands. One holding the stock with a long term view can stay invested and buy more at sharp dips. Short term traders running in profits can exit the counter at rallies and re-enter later at declines.

IDBI Bank (Rs 107) can be tried for some modest returns over a short run. Those holding the stock can stay invested with a stop loss around Rs 85. A modest exposure can be tried now. More stocks can be added at declines.

Four Soft has announced that Polar Speed Distribution (UK) has selected 4S eLog to optimize its management of their temperature controlled, pharmaceutical distribution warehouses throughout the UK. The contract will be serviced through Four Soft UK., the firm's UK subsidiary. Four Soft is trading at Rs 20.25, up by around 2.25%. One can stay invested at the counter.

Realty stocks have taken a severe beating again. More selling is not ruled out in the near run. Those looking for fresh exposure in this space can wait for now and buy small quantities at sharp dips.

Bajaj Hindustan (Rs 198) can rise to Rs 218 or slightly higher. One can book some profits there as the stock is likely to face some resistance around that level. A re-entry can be made later at declines.

ABB (Rs 749) is a good stock for long term. However, one can refrain from taking fresh exposure for now. The stock can be picked up at declines. A rise to Rs 950 or even higher looks likely over the next one year.

One can pick up infrastructure stocks IVRCL Infra, PBA Infrastructure, Gammon, Reliance Industrial Infrastructure and GMR Infra at sharp declines. Though they are likely to prove highly slippery in the near run, a modest upmove looks likely in all these stocks over the next 12 - 18 months.

Tata Motors can be tried for intra-day. The stock, currently traded at Rs 325, can move to Rs 335 or even higher if it recovers to Rs 330 and sustains there for a while. Investors holding the stock with a long term view can stay invested.

One holding Educomp Solutions (cmp Rs 2986) with a long term view can stay invested with a stop loss near Rs 2300 for now. Small quantities can be picked up at sharp falls from current levels. But one with a low appetite for risk should note that this stock is likely to move in a fairly volatile manner.

Deep Industries Ltd has obtained Notification of Award from ONGC, Rajahmundry Asset for Charter Hiring one Work Over Rig of 100 Ton capacity aggregating to Contract Value Rs 296.24 Lacs. The stock is currently down by 2.4% at Rs 135.30. Earlier, on March 6 this year, the stock had tumbled to Rs 28.25, a 52-week low. It had touched Rs 157.95 in mid August 2008.

M&M has BSE that Mahindra Holidays and Resorts India Limited is entering the Capital Market with an Initial Public Offering of 92,65,275 Equity Shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The Bid/Issue opens on June 23, 2009 and closes on June 26, 2009. MHRIL has filed a Red Herring Prospectus with the Registrar of Companies. The issue would constitute 11.0% of the fully diluted post-issue paid-up capital of MHRIL.

One can stay invested in Infosys Technologies, Wipro and TCS and pick up more of them at sharp falls. There may not be a significant and sustained upmove in the near run but these stocks are among the sure winners in the long run.

Infosys Technologies has reportedly received a $10 million three-year BPO deal from Microsoft for back-end support. The IT bellwether rose to Rs 1735 on BSE this morning. The stock, despite having eased to Rs 1722 now, remains in the positive territory with a sharp gain of 0.75%.

Reliance Infra, Ranbaxy and SBI have surged higher. ACC, HDFC, HDFC Bank, Grasim, L&T, BHEL and Maruti Suzuki are down with sharp losses.

Market Outlook

The market is likely to open on a listless note amid mixed global cues. After three days of big losses, the bulls are likely to come back fairly charged up. The expiry of June series derivatives contracts is just a few sessions away and this is likely to trigger some short-covering in a host of front line stocks.

Sector Watch

Airlines stocks are likely to be in focus with most of the players in the sector deciding to hike fares by 8% - 10% from next week. Some severely battered bank and realty stocks are likely to find support. Metals are likely to remain sluggish. Information technology stocks may track overnight gains of the Nasdaq and regain some lost ground.

Scrip Watch

Wockhardt may see action following the company selling its German subsidiary Esparma to another German company, Lindopharm GmbH, a move that is in line with its plan to divest non-core businesses. Mova GmbH, a subsidiary of Lindopharm GmbH, has bought Esparma for around Rs 120 crore.

Hindalco Industries is likely to be in focus. The company is close to acquiring a coal mine in Queensland, Australia, in a deal estimated at US$ 70-80 million. The flagship of the Aditya Birla group, which has been scouting for coal mines in Queensland for some time, is learnt to have short listed one mine in the region with reserves of around 120 million tons.

Fortis Healthcare is likely to attract attention on reports that the company has emerged as the lead bidder to acquire a part of Wockhardt Hospitals. Fortis became the front-runner after the Chennai-based Apollo Hospitals Group retracted its plans to buy three of the 12 hospitals owned by Wockhardt Chairman Habil Khorakiwala and family. It is reported that the deal with Fortis, either for buying two-three hospitals or picking up a minority stake of about 25 per cent, may happen within three-four weeks. However, Fortis is more interested in an outright purchase of the hospitals, which include Wockhardt’s leading hospitals in Bangalore and Mumbai, as this would add to its stand-alone assets.

VST Tillers Tractors Ltd has informed that a meeting of the Board of Directors of the Company will be held on June 26, 2009, to consider the Audited Financial Results for the year ending March 31, 2009 and to consider a bonus issue.

Reliance Industries is likely to be in focus following the petroleum ministry directing the company to make additional allocation of natural gas from its Krishna-Godavari basin find to nine power companies from the surplus available because of no or low off-take by fertiliser units.

Macro and Market Factors

Amid mixed economic data, the Wall Street closed on a flat note yesterday. Asian markets are trading mixed today. Thus, global cues are not any positive for the market this morning. Institutional investors, believed to have sold heavily over the past few days, may look at buying again at declines and this may help halt the slide.

Brokerage Recommendations 18th June 2009

Sell India Cements with a target of Rs 137-132 and stop loss of Rs 147, says Tejas Nandu of Unicorn Investments, on CNBC Awaaz. The stock is currently trading at Rs 140, down 5.67% on the BSE.

Buy Balrampur Chini with a target of Rs 120-130, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 103, up 3% on the BSE. He advises buying select telecom, sugar and banking stocks on dips.

Buy Satyam around Rs 60-70 for a target of Rs 90-100 in 6 months where one can exit the stock, says Deven Choksey of KR Choksey, on Zee Business. The stock is currently trading at Rs 78, up 2% on the BSE.

It was another rough session for our market that closed weak. Sensex closed at 14290, down 232 points (provisional) and Nifty at 4265, down 90 points (provisional) from the previous close. CNX Midcap index was down 2.04% and BSE Smallcap index was down 3.45%. There was selling in realty, metal and power stocks. The market breadth was negative with advances at 192 against declines of 1063 on the NSE.

Sell JP Associates with a target of Rs 175 and stop loss of Rs 200, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy.

Sell Reliance Capital with a target of Rs 850 and stop loss of Rs 900, says Nishant Jain, technical analyst, on CNBC Awaaz, as closing market strategy.

Sell Ambuja Cements with a target of Rs 90 and stop loss of Rs 85, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy.

Credit Suisse maintains buy call and outperform in Hero Honda with a target of Rs 1527, reports NDTV Profit. The stock is currently trading at Rs 1449, up 3.17% on the BSE.

BNP maintains a buy call on Marico with a target of Rs 89, reports CNBC Awaaz. The stock is currently trading at Rs 70, up 1.45% on the BSE.

Buy RNRL with a target of Rs 98-101 and stop loss of Rs 93, says Tejas Nandu of Unicorn Investments, on CNBC Awaaz. The stock is currently trading at Rs 90, down 4.67% on the BSE.

In the banking space, accumulate PNB and SBI in the portfolio for long-term gains, says P Subramanium of Venture Securities, on CNBC Awaaz. He is bullish on the cement and power space for the long term.

Bonanza Portfolio maintains a sell call on Sterlite Industries with a target of Rs 586 and stop loss of Rs 613, reports CNBC Awaaz. The stock is currently trading at Rs 590, down 2.11% on the BSE.

In the steel sector, accumulate Tata Steel, JSW Steel and Welspun Gujarat in the portfolio for long-term gains as they have excellent fundamentals, says Rajesh Tambe, market expert, on Zee Business.

Buy Balrampur Chini with target of Rs 135-140, says Ashwani Gujral, technical analyst, on CNBC TV18. It has good support at Rs 90, he adds. The stock is currently trading at Rs 100, down 0.60% on the BSE.

Nifty has strong support at 4100 and resistance at 4500, says Krishna Kumar Karva of Emkay Shares and Securities, on CNBC TV18. Nifty needs to consolidate further, he feels. Global correction is also putting pressure on our markets, he adds. Investors are being cautious ahead of the budget and taking some profits off the table, he says.

Hold Axis Bank with targets of Rs 750, 770 and then 805, says Vasudeo Kamlakant, technical analyst, on NDTV Profit. Keep stop loss of Rs 685, he adds. The stock is currently trading at Rs 740, up 2.7% on the BSE.

Hold Balrampur Chini with medium-term target of Rs 150, says PK Agarwal of Purpleline Investment on Zee Business. Keep stop loss of Rs 80, he adds. The stock is currently trading at Rs 102.70, up 2.1% on the BSE.

Buy PNB at Rs 550-575 with short-term target of 15%, says Raj Kishore Bang of Sixth Sense on CNBC Awaaz. Long-term investors can keep stop loss of Rs 500 with target of 35%, he adds. The stock is currently trading at Rs 636.25, up 3.6% on the BSE.

Buy Bajaj Hindustan at Rs 195-200 with target of Rs 235-240, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 207.20, up 2.4% on the BSE.

The momentum has been weakened by the huge sell-off yesterday and we expect more volatility, says Shashank Khade of Kotak Securities on CNBC TV18. The bias may have turned on the negative side and we would look for more signs of weakness in the coming days, he adds.

Hold Apollo Tyres with targets of Rs 36, 42 and then 52, says Vasudeo Kamlakant, technical analyst, on NDTV Profit. Keep stop loss of Rs 28, he adds. The stock is currently trading at Rs 31.50, down 0.8% on the BSE.

Book profits in Gujarat NRE Coke, says Ganesh Shaanbag of SMS Financials on CNBC Awaaz. The run-up for this stock is now over, he adds. The stock is currently trading at Rs 46.15, down 1.7% on the BSE.

Hold IDFC with medium-to-long term target of Rs 190-200, says PK Agarwal of Purpleline Investment on Zee Business. Fundamentally, it is a sound stock, he adds. The stock is currently trading at Rs 134.50, down 0.7% on the BSE.

Buy Balrampur Chini on dips with target of Rs 120-130, says Rahul Mohinder, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 102, up 1.4% on the BSE.

Buy Hotel Leela when it comes to Rs 23-24, says Ambareesh Baliga of Karvy Stock Broking on CNBC Awaaz. Hold for long term because it has good potential, he adds. The stock is currently trading at Rs 31, down 6.3% on the BSE.

Hold Satyam with target of Rs 150 in 12-18 months, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 77.25, down 0.2% on the BSE.

Hold MindTree with target of Rs 510-520, says Rahul Mohinder, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 434.60, up 5.8% on the BSE.

Hold Tata Tea with target of Rs 950, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 745, down 0.2% on the BSE.

Hold Unitech with stop loss of Rs 78, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 90, he adds. The stock is currently trading at Rs 82, down 2.3% on the BSE.

Buy Satyam on dips at Rs 60-70 with target of Rs 90-100, says Deven Choksey of KR Choksey on CNBC Awaaz. The stock is currently trading at Rs 77, down 0.5% on the BSE.

Hold Essar Oil with stop loss of Rs 145, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 195, he adds. The stock is currently trading at Rs 158.35, down 0.7% on the BSE.

Buy Spicejet with intra-day target of Rs 24, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 19.50, he adds. The stock is currently trading at Rs 20.90, up 4.8% on the BSE.

Buy 20% of SBI shares at current levels and the rest when it is at Rs 1710, says Rahul Mohinder, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1688, up 1.5% on the BSE.

Sell Essar Oil with targets of Rs 155, 152 and then 149, says Rajat Bose, technical analyst, on CNBC TV18. Keep stop loss above Rs 167, he adds. The stock is currently trading at Rs 156.50, down 1.8% on the BSE.

Hold Wipro which still has 7-8% upside left in it, says Rahul Mohinder, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 381.50, up 0.8% on the BSE.

Buy Zandu Pharma with intra-day target of Rs 7600, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 7200, he adds. The stock is currently trading at Rs 7423, up 3.4% on the BSE.

Buy Omaxe with intra-day target of Rs 108, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 101, he adds. The stock is currently trading at Rs 105.50, up 4% on the BSE. » Send to friends

Sell Idea Cellular at Rs 80.85 with target of Rs 77, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 82, she adds. The stock is at Rs 80.60, down 6.8% on the BSE.

Sell Aditya Birla Nuvo at Rs 896 with target of Rs 860, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 910, she adds. The stock is at Rs 898.75, down 5.3% on the BSE.

Closing Bell 17th June 2009

Closing Bell 17th June 2009

Panic set into the markets today as profit booking during the last hour of trade led the indices to fall deep into the red. The BSE-Sensex ended lower by around 430 points (2.9%), while the NSE-Nifty closed around 160 points (3.6%) down. Stocks from the mid-cap and small-cap spaces ended the day weak as well, recording losses of 4.5% and 4.3% respectively. Selling activity was witnessed in stocks across the board today. Realty, metals and oil and gas stocks were severely hit.

Other Asian markets ended the day in a sea of red as well. The European indices are currently trading weak. Rupee was trading at 47.99 against the US dollar at the time of writing.

Commodity stocks were amongst the biggest losers today, with the BSE-Metal Index and BSE-Oil and Gas Index ending lower by 6.1% and 4.4% respectively. In fact, commodity stocks across the world witnessed, or are witnessing, a negative trend given the fears that commodity prices have entered a bubble phase following China massive purchases, not for satisfying the current demand but for stock piling. Indirectly, this would suggest that once the country stops this buying binge, it would be difficult for commodities (like oil and metals) to sustain the recent advance. It may be noted that crude oil prices have already doubled in price since mid-February.

A leading business daily has reported that telecom major, Reliance Communications (RCom) is in talks with French telecom infrastructure provider Alcatel-Lucent to sign a deal worth US$ 500 m (approx Rs 25 bn). This contract would include operations and maintenance of RCom’s GSM and optical fibre cable services. The deal, which is expected to be one of the largest outsourcing deals in the Indian telecom space, will be finalised in a few weeks. The contract is expected to be executed independently by Alcatel-Lucent or by the joint venture between Alcatel-Lucent and RCom, which was formed last year. This is a positive development for the company as it will allow it to enhance its network quality and reduce operational expenditure. It may be noted that RCom will be the latest addition to such kind of out sourcing model in the Indian telecom space. Other players such as Bharti Airtel, Idea Cellular and Vodafone have signed similar contracts with various companies.

Engineering stocks ended the day on a weak note led by Bharat Electronics and Punj Lloyd. As per a leading business daily, the management of Suzlon Energy expects to end the current fiscal with a flat performance. It has attributed the same to the global meltdown. The company expects the growth to be affected as global economic slowdown has either impacted or deferred its clients’ plans. Further, the company also expects to be impacted by the fall in prices of non-renewal energy sources. The company’s current order book stands at around 1,900 MW. In addition to all this, Suzlon has been facing troubles internally on account of its huge debt to equity ratio, which is over one time. However, the company has been evaluating various options to reduce the same.

The Indian markets slipped further into the red during the previous two hours of trade on account of persistent selling witnessed across the index heavyweights. Stocks from the telecom, steel and energy sectors are leading the pack of losers, while select stocks from the power, auto and software sectors are trading firm. The overall decline to advance ratio is poised at 1.6 to 1 on the BSE.

The BSE Sensex and NSE Nifty are trading lower, down by 250 points and 120 points respectively. The BSE Midcap and the BSE Smallcap indices are also trading lower, down by 2.1% each. The rupee is trading at 47.92 to the dollar.

FMCG stocks are trading mixed. While HUL and Dabur are trading lower, Britannia Industries is trading higher. As per a leading business daily, Britannia plans to revive its marketing strategy by introducing lower priced variants of its popular biscuit brands in order to stimulate sales. It plans to sell Good Day, Bourbon and Treat brands in Rs 5 packs. The company plans to make these brands available at tea kiosks in urban, semi urban and rural areas so as to attract more customers. It may be noted that the new pricing strategy is likely to contribute large volumes particularly from rural areas as such small packs are affordable and likely to instigate high impulsive buying in customers. Britannia is a leader in the biscuits segment commanding around 39% market share in India. This is positive development for the company as it will help it grow its revenues and increase its market share.

Power stocks are trading mixed. While Tata Power and Reliance Infra are trading higher, Power Grid and NTPC are trading lower. As per a leading business daily, Power Grid is planning to enter the US markets and bid for transmission projects in the country. The company is in advanced talks with a US firm to jointly bid for transmission projects there. However, the management did not disclose the name of the US entity. It is also believed that the company is considering a partnership with Kalpataru Power Transmission for the same. It may be noted that Power Grid transmits around 45% to 50% of electricity in India. The company is targeting revenues of around Rs 80 bn in FY10, while it expects bottomline to be over Rs 18 bn during the same period. It plans to spend around Rs 550 bn during the 11th five plan period and around 75% of funding for the same has been already tied up by the company.

Although volatile, the Indian markets gained ground during the previous two hours of trade as buying activity intensified across stocks. Currently, stocks from the realty, banking and power sectors are leading the pack of gainers, while select metal and software stocks are trading weak. The overall advance to decline ratio is poised at 1.4 to 1 on the BSE.

The BSE Sensex is trading lower by around 40 points, while the NSE Nifty is trading flat currently. However, the BSE Midcap and the BSE Smallcap indices are trading higher by 0.7% each. The rupee is trading at 47.85 to the dollar.

As per a leading business daily, IDBI Bank has approached the government for infusion of capital to the tune of Rs 80 bn. For this, the bank plans to allot preferential shares to the government. The bank is also planning to raise debt of around Rs 50 bn for strengthening its capital adequacy. Further, the bank plans to come out with a follow on public offer to fund its growth plan. The bank expects its advances to grow by 20% to 25% per annum. As of March 2009, its capital adequacy ratio (CAR) was lower at 11.9%. Therefore, given its lower capitalization, the bank is in immense need improve its CAR, which is lower than minimum requirement of 12% and also for financing its growth plan. It may be noted that recently the bank had filed an application for 300 branch licenses with the central bank. The stock of IDBI Bank, along with SBI, is trading weak, while PNB is trading firm on the bourses.

Auto stocks are trading mixed. While Ashok Leyland is trading firm, M&M and Tata Motors are in the red. As per a leading business daily, M&M expects to beat Chinese manufacturers in the US market as it plans to sell the diesel version of a small two and four door pickup truck in that market. It may be noted that the company plans to launch the vehicle in the US at a time when the country's auto industry is already under severe pressure. But, the fact is that there is no real competition in the country for the compact truck in the diesel segment. Further, with M&M's competitive price tag for the vehicle and lower price of diesel, the company may find some takers in the US. Moreover, the company expects volumes to gain ground as it establishes its brand in the country.

The Indian markets have opened today's session on a volatile note as cautious sentiments are being seen among the investors. While power and telecom stocks are leading the pack of gainers, software, auto and engineering stocks are among the losers. The overall advance to decline ratio stood at 1.9 to 1 on the NSE. As regards global markets, the US markets ended in the red for a second consecutive day of the week on account of persistent worries on recession. The European markets ended mixed, while the Asian indices are currently trading in the red.

The BSE Sensex is trading lower by around 90 points. The NSE Nifty is down 30 points. Both the BSE Midcap and BSE Smallcap indices are trading marginally up. The rupee is trading at 47.84 to the dollar.

As per a leading business daily, FMCG companies, on account of slowdown witnessed in modern retail sales, are upping the ante on kirana stores. Modern trade at just 3-5% of the total national FMCG sales had grown aggressively at over 35-40% contributing to over 15-25% of sales for most consumer goods companies last year. However, sales have been almost flat since January this year, mainly due to closure of several retail outlets and halt on fresh expansions. Hence, these companies are now focusing on the traditional trade channels. HUL and Godrej Consumer Products (GCPL) have raised trade margins on some brands to traditional retailers recently. HUL offered an 8% incremental trade margin to retailers on Lux and 4% additional margin on Breeze while GCPL hiked margins by 4% on dyes. The move is also beneficial as the companies have increased their focus on the rural areas . The traditional channels are more widespread in these regions, thereby aiding FMCG sales. FMCG stocks are trading firm currently.

Auto major, Tata Motors is planning to launch a 'crossover' sports utility vehicle (SUV) platform. Currently undergoing testing at the Tata Motors European Technical Centre, the company's research and development (R&D) outfit in UK, and at the Engineering Research Centre (ERC) at Pune, the product is likely to be launched sometime in 2010. The vehicle could be based on the crossover Tata Xover that was unveiled at the 75th Geneva Auto Show in 2005. Currently, Tata Motors has the Sumo and the Safari in the UV-SUV segment. As per SIAM, overall UV-SUV sales have been going down for sometime now with sales declining by around 29% YoY in May 2009. The launch could be Tata Motors' biggest bet to arrest the falling sales in the utility vehicle space. While the company's net passenger car sales in May 2009 declined by 11 % YoY, its UV-SUV sales dropped by 49% YoY. Auto stocks are trading mixed on the bourses.

Market Voices 17th June 2009

Market Voices 17th June 2009

A massive across-the-board sell-off pushed the market to a dismal close today.

The Sensex ended 435 points or 2.91% down at 14,522.84. The Nifty closed with a loss of 161.65 points or 3.58% at 4356.15.

Weakness in Asian and European markets amid concerns over global economy prompted investors to head for the exit gate today.

Realty, metal, PSU, oil and capital goods stocks had a free fall in afternoon trade. Power, auto, bank, FMCG, pharma and telecom stocks too caved in meekly. Midcap and smallcap stocks were battered.

Tata Steel, Tata Motors, JP Associates, RComm, DLF, ONGC and Hindalco lost 5% - 7.5%. RIL, NTPC, Wipro, Ranbaxy, L&T, Grasim, ACC and BHEL lost 3% - 5%. SBI, TCS and ITC also declined sharply.
The market breadth was very weak.

Asian markets mostly ended in the red today, though a few off them closed well off their intra-day lows. European markets are all down in the red with sharp losses. With global economy likely to take a longer time to recover, investors across the globe appear to have switched to a highly cautious mode this week.

It now appears that the Indian market will find it extremely tough to extend its winning streak to a fifteenth straight week.

Syndicate Bank has informed BSE that the Bank has on June 15, 2009 raised Tier II Capital to the extent of Rs 200 crore through issue of Unsecured Non-Convertible Sub-ordinated Debt. The issue opened and closed on June 15, 2009. The bond was priced at 8.49%p.a. payable annually.

The market has come a long way from the dismal levels it had touched in early March this year.

Hopes of an economic revival and expectations from the new UPA government contributed to the market's telling rebound. However, amid fresh concerns over the pace of recovery, global markets have been finding it increasing tough to sustain momentum. So, notwithstanding some sharp rallies here and there, it is still a wait and watch game on most of bourses across the globe.

Kingfisher Airlines (Rs 56) can rise to Rs 70 over a medium term. One holding the stock can stay invested and look at buying more at dips. Long term investors can have a stop loss in place near Rs 35.

Cairn India (Rs 235) looks set for a decent upmove. The stock can be held for long term with a stop loss near Rs 180. Over a near to medium term, the stock can rise to Rs 265.

Investors looking at medium term can go in for Allahabad Bank, Syndicate Bank, UCO Bank and Indian Bank. A modest exposure can be had at current levels. One can increase stake at dips.

Bharti Airtel (Rs 820) can be retained for long term. Though the stock is likely to see some weak spells, it is expected to move past its 52-week high of Rs 990 sooner than later. Fresh buying can be considered at Rs 770 - 780 levels.

RNRL (Rs 102) remains a bit volatile today. The stock which rebounded after a weak start, has come off its high now due to profit taking at higher levels. One holding the stock with a long term view can stay invested in it and buy more at sharp falls.

Marico (Rs 71) can give modest returns over a short term. The stock can be picked up at current levels or slightly lower. Long term investors can have a stop loss at Rs 55 -58.

Dabur India (Rs 116) can be picked up for long term. One can go in for some modest quantity now and add more at declines. The stock is likely to find some resistance around Rs 120 - 125 but a strong breakout there can result in a surge to Rs 140 or even higher. For now, a stop loss can be placed near Rs 100.

Reliance Communications (Rs 333) can be bought for intra-day if the stock rises to Rs 335 and trades firm for a while. The stock has support at Rs 325 and one can place a stop loss there.

Omaxe Ltd has informed that its wholly owned subsidiary Omaxe Infrastructure & Construction Pvt Ltd, has bagged construction contracts worth Rs 128.34 crore from U P Projects Corporation Ltd (a UP Government Undertaking). Omaxe has gained 4.3% to Rs 109.50 today. On BSE, around 1.75 lakh shares have changed hands so far at the Omaxe counter today.

IRB Infrastructure Developers Ltd has emerged as the Lowest Bidder for a project from the National Highways Authority of India. The company had submitted its Bid with the National Highways Authority of India for Design, Engineering, Finance, Construction, Operation and Maintenance of Four Lanning of NH 4A from Goa / Karnataka Border Km 84.00 to Panaji - Goa Km 153.070 with total length of 65.07 Km in the State of Goa under NHDP Phase III on BOT basis.

The Project is on Grant basis with concession period of 30 years and estimated cost of the Project is Rs 800 Crores. The Company has sought a grant of Rs 186.30 Crore for the Project from NHAI.

Intra-day traders, who went long in Reliance Infra around Rs 1285 - 1290, can book some profits here. The stock is currently traded at Rs 1315, up 3.7% over its previous closing price.
Those who can afford to hold the stock for short to medium term, can do so with a proper stop loss in place.

Reliance Infrastructure (Rs 1289) can move up sharply today if it makes a decisive breakout at Rs 1296. The stock is likely to find good support at Rs 1273. A breach there can result in a fall to Rs 1258 or even lower.

Reliance Industries (up 1% at Rs 2163) has moved up on reports that the government may intervene in the legal gas distribution dispute with RNRL. The company is also expected to move the Apex court, challenging the verdict of the Bombay High Court in the said issue. One holding the index heavyweight can stay invested and pick up small quantities at sharp falls.

Power Grid Corporation (Rs 125) has moved up on strong results. Investors holding the stock can stay invested and look at buying more of it at declines. Even over a short run, the stock can give a modest return of 10 - 15%.

Market Outlook

The market is likely to open on a weak note this morning. Amid high volatility, some blue chips could surge higher and the indices too see some bright spells but the undertone is likely to remain extremely cautious today.

Sector Watch

Buying is expected to be stock specific today. Still, FMCG, pharma and consumer durables sectors could outperform the market. IT stocks are likely to remain sluggish. Bank stocks may see strong buying at lower levels.

Scrip Watch

Power Grid Corporation has posted a profit after tax of Rs 16906.10 million for the year ended March 31, 2009 as compared to Rs 14484.70 million for the year ended March 31, 2008. Total income of the company increased from Rs 50815.30 million for the year ended March 31, 2008 to Rs 70285.40 million for the year ended March 31, 2009.

Tata Motors is reportedly planning to use its Nano platform to build electric and hybrid cars and to produce more high-end models. The company is likely to target exports of its Nano model to developing countries like Brazil, China, Indonesia and Russia where the growth rate is over 10%.

Unitech is likely to see action following the company obtaining shareholders' nod to raise additional long-term funds through further issuance of securities.

Jindal Steel and Power will see action. The stock enters the Nifty fold today, replacing Reliance Petroleum following its merger with Reliance Industries.

Macro and Market Factors

The market shrugged off weak global cues and rallied higher yesterday but with U.S. markets closing weak on renewed concerns about the economy and Asian markets following suit and posting sharp losses, the mood is likely to turn highly cautious today.

FIIs and domestic mutual funds sold heavily on Monday and this is likely to hurt sentiment to an extent. Expectations from the budget and on the reforms front may result in some buying at lower levels.

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Brokerage Recommendations 17th June 2009

Sell Shipping Corporation with target of Rs 115, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 136, he adds. The stock is at Rs 124.60, down 4.7% on the BSE.

Buy Sesa Goa at Rs 180 with target of Rs 220, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 160, he adds. The stock is at Rs 187.55, down 6.6% on the BSE

Buy Gruh Finance at Rs 180 with target of Rs 230, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 166, he adds. The stock is at Rs 185.25, up 6.5% on the BSE.

Sell Wipro with target of Rs 360, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 405, he adds. The stock is at Rs 378, down 4.8% on the BSE.

Hold Jaiprakash Associates with short-term target of Rs 245-250, says Rahul Mohinder, technical analyst, on CNBC TV18. Keep stop loss of Rs 200, he adds. The stock is currently trading at Rs 205, down 6.3% on the BSE.

Buy Rolta with target of Rs 165, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 125, he adds. The stock is currently trading at Rs 132, down 7.8% on the BSE. » S

Hold IRB Infra with stop loss of Rs 127, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. It has resistance at Rs 151-161, he adds. The stock is currently trading at Rs 136, down 0.04% on the BSE.

Buy Corporation Bank with target of Rs 345, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Keep stop loss of Rs 300, he adds. The stock is currently trading at Rs 317, up 0.2% on the BSE.

Buy Jyothi Laboratories on dips with target of Rs 150 in 12 months, says Ashish Kukreja, market expert, on CNBC Awaaz. The stock is currently trading at Rs 109.25, down 6.5% on the BSE. » Send to friends

Buy Dish TV with targets of Rs 51 and then 60, says Rahul Mohinder, technical analyst, on CNBC TV18. Keep stop loss of Rs 39, he adds. The stock is currently trading at Rs 39.40, down 3.8% on the BSE.

Buy Satyam at Rs 83, says MB Singh, technical analyst, on Zee Business. Keep short-term target of Rs 115 and medium-term target of Rs 140, he adds. The stock is currently trading at Rs 80.20, down 0.4% on the BSE.

Buy Balrampur Chini with targets of Rs 116 and then 122, says Husseini Wadharia of Techno Shares on CNBC Awaaz. Keep stop loss of Rs 100, he adds. The stock is currently trading at Rs 103, down 1.4% on the BSE.

Buy Voltamp Transformers with target of Rs 900 in 12 months, says Kamlesh Kotak, market expert, on CNBC TV18. The stock is currently trading at Rs 768, down 2% on the BSE.

Buy Voltas at Rs 123 with stop loss of Rs 118, says Simi Bhaumik, technical analyst, on Zee Business. Keep short-term target of Rs 131 and medium-term target of Rs 144, she adds. The stock is currently trading at Rs 125, down 1.5% on the BSE.

Buy YES Bank with targets of Rs 152 and then 161, says Husseini Wadharia of Techno Shares on CNBC Awaaz. Keep stop loss of Rs 129, he adds. The stock is currently trading at Rs 133.50, down 1.8% on the BSE.

Hold Cairn India with target of Rs 320, says MB Singh, technical analyst, on Zee Business. Keep stop loss below Rs 200, he adds. The stock is currently trading at Rs 234.30, down 2.8% on the BSE.

Buy SBI at Rs 1700 with stop loss of Rs 1670, says Simi Bhaumik, technical analyst, on Zee Business. Keep short-term target of Rs 1765 and medium-term target of Rs 1820, she adds. The stock is currently trading at Rs 1678.05, down 2.1% on the BSE.

Buy Jet Airways at Rs 230 with target of Rs 360, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 265, up 1.1% on the BSE.

Buy GMR Infra on dips and hold for long term, says Ashish Kapur of Invest Shoppe on NDTV Profit. Fundamentally, it is a strong stock, he adds. The stock is currently trading at Rs 149.50, down 1.3% on the BSE.

Buy Allahabad Bank at Rs 70 with target of Rs 102, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 79.65, down 1.7% on the BSE.

Hold Ispat Industries with stop loss below Rs 20, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 30 crossing which it can go high, she adds. The stock is currently trading at Rs 25 on the BSE.

Hold NTPC with target of Rs 280, says Kiran Jadhav, technical analyst, on NDTV Profit. Keep stop loss of Rs 208, he adds. The stock is currently trading at Rs 223.25, down 0.5% on the BSE.

Buy Unitech at Rs 91-93 with stop loss of Rs 84, says MB Singh, technical analyst, on Zee Business. Keep short-term stop loss of Rs 108 and medium-term target of Rs 130, he adds. The stock is currently trading at Rs 90.15, up 1.4% on the BSE.

Hold Power Grid which has resistance at Rs 124, says Salil Sharma, technical analyst, on CNBC Awaaz. New investors should buy only if it crosses Rs 125, he adds. The stock is currently trading at Rs 124.25, up 1.4% on the BSE.

Hold Satyam which will cross Rs 100 in 3-6 months, says Sheshadri Bhartan, market expert, on CNBC Awaaz. The stock is currently trading at Rs 82.65, up 2.6% on the BSE.

Invest in tea and sugar stocks, says Mehraboon Irani of Centrum Broking on CNBC Awaaz. These are safe stocks and will give good returns, he adds.

Book profits in IVRCL Infra and buy again on declines, says Ashish Maheshwari of Global Capital Market on CNBC Awaaz. The stock is currently trading at Rs 334.95, up 3.1% on the BSE.

Hold Everest Kanto with stop loss of Rs 199, says Pradeep Surekha, technical analyst, on Zee Business. If Nifty sustains above 4400 level then this stock will give good returns, he adds. The stock is currently trading at Rs 206.50, down 1.5% on the BSE.

Buy Great Offshore at Rs 390-410 with target of Rs 550, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 345, he adds. The stock is currently trading at Rs 399.65, up 1.% on the BSE.

Buy Hindustan Unilever with target of Rs 283 in swing trade, says Anu Jain, technical analyst, on CNBC TV18. Keep stop loss of Rs 259, she adds. The stock is currently trading at Rs 260.10, down 1.1% on the BSE.

Hold IFCI with targets of Rs 66 and then 85, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 44, he adds. The stock is currently trading at Rs 54.75, down 1.1% on the BSE.

Buy Tech Mahindra which is in a good uptrend now, says Rajat Bose, technical analyst, on CNBC Awaaz. Keep short-term target of Rs 860-880 and long-term target of Rs 1000, he adds. The stock is currently trading at Rs 783.10, down 1% on the BSE.

The market is driven purely by liquidity and the bias remains positive, says Devesh Kumar of Centrum Broking on CNBC TV18. He believes that the Sensex can go up to 16000 ahead of the budget.

Hold Reliance Infrastructure which has resistance at Rs 1290 crossing which it can go to Rs 1360, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1308, up 3.1% on the BSE.

Hold Satyam which has resistance at Rs 82 crossing which it can go to Rs 110, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 82.70, up 2.7% on the BSE.

Buy Balrampur Chini with intra-day target of Rs 115, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 103, he adds. The stock is currently trading at Rs 105.50, up 1% on the BSE.

Buy Andhra Petrochemicals at Rs 11-12, says Pradeep Surekha, technical analyst, on Zee Business. It can give 50% returns in one year, he adds. The stock is currently trading at Rs 15.45, up 4.8% on the BSE.

Buy Essar Oil with intra-day target of Rs 180, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 165, he adds. The stock is currently trading at Rs 166.50, up 5.2% on the BSE.

Buy Satyam at current levels, says Rajat Bose, technical analyst, on CNBC Awaaz. If it crosses Rs 90 then it will show good upmove, he adds. The stock is currently trading at Rs 80.55, up 5% on the BSE.

Buy Hindalco with target of Rs 120, says Anu Jain, technical analyst, on CNBC TV18. Keep stop loss of Rs 96.50, she adds. The stock is currently trading at Rs 99, up 3.3% on the BSE.

Sell BPCL with intra-day target of Rs 435, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 452, he adds. The stock is currently trading at Rs 447.20, up 3.9% on the BSE.

Sell DLF if it breaks Rs 345, says Rahul Mohinder, technical analyst, on CNBC TV18. Keep target of Rs 310-315, he adds. The stock is currently trading at Rs 353.30, up 0.3% on the BSE.

Buy Henkel India with intra-day target of Rs 25, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 20.50, he adds. The stock is currently trading at Rs 20.90, up 6.6% on the BSE.


Buy Satyam at Rs 80.55 with target of Rs 85, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 77, she adds. The stock is at Rs 80.55, up 5% on the BSE.

Buy IFCI at Rs 55.35 with target of Rs 59, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 53.70, she adds. The stock is at Rs 55.35, up 7.3% on the BSE.

Closing Bell 11th June 2009

Closing Bell 11th June 2009


After witnessing a volatile trading session today, the Indian markets ended the day on a weak note as selling activity increased during the final minutes. The BSE-Sensex ended lower by around 60 points, while the NSE-Nifty, closed lower by about 15 points. Stocks from the mid-cap and small-cap spaces ended the day on a negative note as well, recording losses of around 0.2% and 0.9% respectively. Stocks from the metal, auto and FMCG spaces managed to garner the investors’ interest today, while stocks from the IT and energy sectors led the pack of losers.

Other Asian markets ended the day on a mixed note today. The European indices are currently trading in the green. Rupee was trading at 47.5 against the US dollar at the time of writing.

Telecom stocks ended the day on a firm note led by Spice Communication, Idea Cellular and MTNL. Telecom major, Bharti Airtel recently signed a three-year managed services contract for its value added services (VAS) with its group company Comviva Technologies. As part of the contract Comviva will manage the company’s VAS nodes from various partners. However, financials of the deal have not yet been disclosed. This is a positive development for Bharti as this would primarily allow the company to focus on its key strengths of marketing and branding. In addition to this, the company will be in a position to save costs and also roll out better and larger number of value added services. It may be noted that the company has signed deals of similar nature with Ericsson and Nokia to manage its network and IBM for IT management.

Energy stocks ended the day on a weak note led by HPCL, BPCL and ONGC. As per a leading business daily, state run oil marketing companies (OMCs) plan to approach the government for revision of retail fuel prices on account of the rise in global crude oil prices. It is believed that the OMCs are currently recording losses of around Rs 3 per litre on petrol sales and Re 1 per litre on diesel sales. On an average, OMCs are making daily losses of around Rs 1.2 bn on sale of fuel. According to one of the state run oil marketers, OMCs start making losses on fuel sales once the price of crude oil crosses US$ 65 a barrel. Currently, oil prices have been flirting with the US$ 70 per barrel mark. It may be noted that the OMCs last revised retail fuel prices in January this year when the price of crude oil was around US$ 42 per barrel.

Inflation (as measured by WPI) for the week ending May 30 stood at 0.13%. This is the lowest figure recorded in around three decades. Last week, the figure stood at 0.48%. The main reason behind this fall was the decrease in prices of manufactured products. However, prices of food items increased on a week on week basis. It may be noted that inflation during the same week last year stood at 9.32%.

Though the markets continued to trade in the negative territory during the previous two hours of trade, they have shed some of their earlier losses on account of buying activity witnessed at lower levels. Stocks from the energy and cement sectors are leading the pack of losers, while select stocks from the telecom, aluminium and auto sectors are trading firm. The overall decline to advance ratio is poised at 1.5 to 1 on the BSE.

The BSE-Sensex is trading weak, down by around 20 points, while the NSE-Nifty is trading firm, up by around 10 points. The BSE-Midcap and BSE-Smallcap indices are trading higher by around 0.3% and 0.6% respectively. The rupee is trading at 47.48 to the dollar.

Software stocks are trading mixed. While Infosys and Wipro are trading lower, Tech Mahindra is trading higher. As per a leading business daily, Indian software majors like Wipro and Infosys are set to enter the booming domestic rural outsourcing market. Wipro BPO, a US$ 395 m back office service arm of Wipro is exploring service delivery tie ups with several rural service providers to whom it already provides technology and other supports. Infosys BPO on the other hand, plans to tie up with service providers with shops in rural areas and small towns for its domestic operations. It may be noted that as per Nasscom, the Indian IT majors used to primarily cater to the global clients. However, with the fall in global demand and more focus on the domestic markets, the sector has gained some of the lost momentum. The cost of operations in rural markets are estimated to be around 60% less as compared to Tier I or II cities.

Power stocks are trading mixed. While Tata Power is trading lower, NTPC is trading higher. As per a leading business daily, Tata Power is set to enter the retail distribution business of power in Mumbai. The company already has a distribution license for Mumbai and is awaiting Maharashtra Electricity Regulatory Commission's (MERC) approval for the same. The company is planning to target new customers in all three segments viz commercial, industrial and residential spaces and will also continue with its bulk electricity supply business, which remains a major growth driver. It may be noted that Tata Power's main business has been electricity generation and bulk supply to Mumbai metropolitan area regulated by MERC. It also supplies power to distributors like Reliance Energy, Brihanmumbai Electric Supply and Transport in Mumbai and North Delhi Power in Delhi. This is a positive development for the company as the return on equity in power distribution is on the higher side as compared to the generation business.

The Indian markets continued to trade in the red as weak sentiment prevailed during the previous two hours of trade. Currently, stocks from the energy, banking and software sectors are leading the pack of losers, while select telecom and auto stocks are trading firm. The overall decline to advance ratio is poised at 1.8 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading weak, down by around 50 points and 25 points respectively. The BSE-Midcap and BSE-Smallcap are also trading lower, down by around 0.1% and 0.6% respectively. The rupee is trading at 47.46 to the dollar.

As per a leading business daily, the country's largest lender, SBI plans to grow through acquisitions and will consolidate its associate banks. Besides, the bank is also planning to look for acquisition of domestic banks. SBI will decide on consolidation of its associates next month and believes that it will not take more than 3 to 6 months after the process begins. It may be noted that the bank had merged State Bank of Saurashtra in August 2008 and now it has six associate banks. The bank also has a positive view regarding the government's support for the consolidation process. Regarding lending rates, the bank expects interest rates to remain soft going forward and plans to review the rates by the end of the current month. Banking stocks are trading weak led by SBI, Corporation Bank and PNB.

Software stocks are trading mixed. While Tech Mahindra is trading firm, Infosys and Wipro are in the red. As per a leading business daily, Infosys expects its Latin American business to grow the fastest going forward. Although the segment's contribution is miniscule to its total revenues, it expects higher growth as IT operations have not expanded at a strong pace in the region. In a move to diversify its operations which are concentrated on the North American region (around 63% of the company's total revenues during FY09), Infosys has been looking to expand its operations in regions like Latin America, Brazil, Europe, Asia and the Middle East, that present immense scope going forward. In fact, the company is soon to start operating its second centre in the Latin American regions of Monterrey and Mexico.

The Indian markets have opened the day's proceedings on a cautious note. Power, telecom and metals stocks are trading firm, while software, auto and banking stocks are among the losers. The overall advance to decline ratio is skewed towards the latter in the ratio of 1.74 to 1 on the NSE. As regards global markets, the US markets ended marginally in the red as rising commodity prices raised fears of inflation which would affect the recovery effort. The European markets closed higher yesterday. The Asian indices are currently trading mixed.

The BSE Sensex is trading lower by around 10 points. The NSE Nifty is down 10 points. The BSE Midcap and BSE Smallcap index are both trading flat. The rupee is trading at 47.44 to the dollar.

Larsen & Toubro (L&T) is planning to sell its entire 11.5% stake in UltraTech Cement. The company sold 8.3% stake through a series of off-market deals yesterday for around Rs 7.6 bn. UltraTech is a group company of the Birlas. As per the agreement made between the companies in 2003, the Birla group enjoyed the right of first refusal on L&T's holding. The same agreement also made it clear that in case the Birlas do not exercise their rights, L&T had the liberty to sell its shares to financial investors through open market operations. L&T was, however, not allowed to sell the shares to strategic investors. The Aditya Birla Group waived its first right of refusal mainly because it already had a comfortable 55% stake. As per the pact, L&T had to sell its stake by the end of 2009. The move is in line with L&T's objective to pull out of cement which is not part of its core operations. Engineering stocks are trading mixed.

Mahindra & Mahindra (M&M) is planning to buy out its local partner in Mahindra South Africa (Mahindra SA). M&M holds 92% in Mahindra SA, while the remaining 8% stake is held by African Automotive Investments Corporation, a subsidiary of African Resources and Logistics Corporation. Mahindra SA sells the Bolero, Scorpio and Xylo ranges in South Africa. It had sold over 1,500 vehicles in the local market last year. M&M is also evaluating the possibility of starting a local completely knocked down (CKD) assembly unit there. The company already has an assembly plant in Egypt. Logistics costs and potential import duty benefits are the key drivers behind the decision to have a local assembly unit. The move to buy the stake is a part of its plan to build the brand and take independent decisions. The company is looking at serving the adjoining markets like Zambia, Angola, Zimbabwe and Botswana, among others. It will also give an advantage in serving the US markets through its local assembly in South Africa. The African Growth and Opportunity Act provided duty-free access to the US for a large number of products from over 35 African economies. Infact, M&M has plans to enter the US market with its Scorpio later this year. Auto stocks are also witnessing mixed sentiments.

Market Voices 11th June 2009

Metal stocks ended sharply higher thanks to a firm trend in global metal prices. Select auto and FMCG stocks closed higher. A few stocks from banking and pharma sectors too ended on a firm note.
Information technology, PSU, oil, power and capital goods stocks ended sharply lower. Realty stocks remained quite listless today.

It was a lackluster session for midcap and smallcap stocks as well. The market breadth was weak almost right through the day. Hindalco, Sterlite, Tata Steel, M&M, HDFC Bank, NTPC, Bharti Airtel, Tata Motors and ITC closed with sharp gains. JP Associates, ONGC, ACC, BHEL, SBI, Infosys, Reliance Infra, DLF, Wipro, Grasim, Tata Power and RIL ended on a weak note.

Tata Comm, Idea Cellular, RPower, Reliance Capital and SAIL ended sharply higher. Ambuja Cements, BPCL, Axis Bank, HCL Tech,Unitech, PNB, RPL, Cairn India, GAIL, Siemens and Suzlon finished with sharp losses.

RNRL (Rs 91) is likely to face some stiff resistance at Rs 105 levels. Short term traders can have a stop loss in place near Rs 80. A fall to that level and a strong breach there can result in a slide to Rs 60 and then, further down. A strong breakout at Rs 105 - 110 can lift the stock to Rs 128 - 130.

HDFC Bank (Rs 1553) hit a new 52-week high at Rs 1563 this afternoon. The stock looks set for a further upmove. Investors looking at short term can try this stock even at current levels.
However, considering global uncertainty, one would do well to restrict exposure to modest levels. More quantities can be added at sharp declines.

Investors looking at long term can try BHEL, Siemens, Punj Lloyd and L&T at dips. All these stocks are likely to face some pressure and drift lower in the near run. But their long term prospects continue to remain quite bright.

Oil stocks have taken a beating again due to rising crude oil prices. It was expected that the government would decontrol fuel prices but that has not happened as yet. BPCL,HPCL and IOC have been drifting lower over the past few sessions and a further downside looks very likely if crude prices continue to surge higher.

Cements stocks have drifted lower today. Still, most of the stocks in this space are likley to have some bright spells in the near to medium term. While traders with a good appetite for risk can try quality cement stocks even at current levels, one with little or no appetite for risk can wait for the market to cool down a bit.

Compact Disc India Ltd has signed an MoU with BBC Films to co-produce film, "Blame it On The Bhangra". This British film will be distributed by Lionsgate for UK territory. Compact Disc had informed last week that Seengal Capital Advisors Pvt. Ltd an investment arm of the promoters of CDI and iMedia Ventures Ltd. content developer to world's houses and a pioneer in Digital Entertainment have offered to buy upto 40% equity of Compact Disc India Ltd by open offer.
The price band, number of shares, merchant banker and other information are yet to be announced.

IT stocks, which had a good session yesterday, are seen struggling today on fresh concerns over the state of the U.S. economy. One holding IT majors Infosys, TCS and Wipro with a long term plan can continue to stay invested. Sharp fall in prices can be treated as opportunities to increase exposure.

ONGC (Rs 1135) can rise to Rs 1250 - 1275 is it manages to breach a resistance near Rs 1185.
Long term investors can stay invested in the counter. Those looking at the stock with a short term plan, can sell it at rallies and re-enter later at declines.

MRPL (Rs 94) is likely to see further upside in the near to medium term. One holding the stock can stay invested and look at increasing exposure at sharp falls.

One can stay invested in IVRCL Infrastructure with a stop loss near Rs 260 for now. The stock, currently traded at Rs 356, can move on to Rs 410 - 415 or even higher if the current rally in the infrastructure space sustains for a few more sessions.

Satyam Computer Services has hit the upper circuit for the third straight session. Satyam reported a net profit of Rs 160.50 crore for the October-December 2008, a period that saw the beginning of Satyam's fall from grace, and a total income of Rs 2,327.21 crore. The company was in dire straits in January with a measly profit of Rs 4 crore before showing signs of revival by recording a Rs 52 crore profit in February. This was despite losing about two dozen clients.

UCO Bank (cmp Rs 42.80) can be picked up in a staggered manner for long term. The stock is likel to face some resistance near Rs 45, its 52-week high, but a strong breakout there can result in a rise of another Rs 10 - 12. Long term investors can hold the stock with a stop loss near Rs 32.

Gitanjali Gems Ltd has informed that Gitanjali Lifestyle Ltd, the 100% wholly owned subsidiary of the Company has decided to set up a joint venture Company in India in association with Damas LLC, Dubai for retail trading of all kinds of jewelleries and related accessories. Further the Company has informed that, Damas LLC, Dubai has received necessary approval from Foreign Investment Promotion Board on June 04, 2009 for setting up the said joint venture in India.

Market Outlook

After two days of strong gains, some consolidation looks likely on the Indian bourses today. Buying is likely to remain stock specific. Though market is likely to remain rangebound, some volatility is not ruled out.

Sector Watch

Realty stocks may struggle once again though buying at lower levels is not ruled out. Metals are expected to do well. Information technology and capital goods sectors will see stock specific action.

Scrip Watch

Buoyed by strong results posted by the company, the Tata Tea stock is likely to see some strong buying today.

Shares of Larsen & Toubro and Ultratech Cement will see action today. L&T is reportedly planning to sell through block deals, 10.3 million shares of Ultratech Cement for up to $160 million.

UCO Bank will be in focus after the bank said that it sees a scope to cut interest rates by 100 basis points. While stating that A Follow-on public offer of its shares may not happen this fiscal, the bank has said that it expects a credit growth of 25% in fiscal 2009-10.

Macro and Market Factors

Stocks ended lower on Wall Street yesterday amid concerns over inflation and the slow pace of economic recovery. Asian markets are exhibiting a mixed trend. Higher crude oil prices buoyed up resource-related stocks but the broad markets are looking none too positive.

With no prominent triggers from the home front, the market will be tracking global cues for a major part of the session today.