Investor's Guide from ET
Economic slowdown is no longer academic prophecy
Time for the Tsunami / Currency futures: Best of both worlds
Mkt in an intermediate uptrend I 20 Microns: Mining for more
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Market in an intermediate uptrend8 Sep, 2008, 0412 hrs IST, Deepak Mohoni
The main indices crossed their intermediate uptrend trigger levels last Monday. The CNX Midcap index was already in an uptrend.
Time for the Tsunami 8 Sep, 2008, 0404 hrs IST, Shakti Shankar Patra
For the theory that this article has been propounding for the past few weeks - the Nifty not budging anywhere until the Dow Jones Industrial Average breaks out above 11,750 or below 11,000.
Cement sector feels the pinch of slowdown 8 Sep, 2008, 0359 hrs IST, Shikha Sharma
The cement sector is feeling the pinch of a slowdown in sales growth as well as shrinking profits.While small and medium companies have reported higher topline growth than large firms, they have fared poorly in terms of net profit
Austral Coke for long-term investors 8 Sep, 2008, 0355 hrs IST, Santanu Mishra
Austral Coke’s expansion plans look ambitious, but they come with their own execution risks. Only long-term investors should buy this scrip.
Increasing consumption of high-grade stainless steel 8 Sep, 2008, 0350 hrs IST, Santanu Mishra
A prosperous middle class and rising industry growth will ensure an increase in the consumption of high-grade stainless steel in the country.
Best of both worlds 8 Sep, 2008, 0350 hrs IST, Devangi Joshi
With a modest margin requirement, investors can easily use currency futures to hedge their positions in the commodity market and vice versa.
High & dry 8 Sep, 2008, 0348 hrs IST, Ramkrishna Kashelkar
A long-lead project, risky nature of business and steep pricing make Chemcel Biotech’s IPO unattractive.
Mining for more 8 Sep, 2008, 0346 hrs IST, Ramkrishna Kashelkar
Given 20 Microns’ expansion plans and likely boost in profitability, investors can subscribe to the IPO with a long-term outlook.
Strained economy appears to be sapping capital goods industry 8 Sep, 2008, 0343 hrs IST, Ashish Agrawal
But with no let-up in the sector’s order bookings & backlog and core operations strongly contributing to profits, things can look up for the sector in future.
Bull's eye 8 Sep, 2008, 0342 hrs IST
Merrill Lynch has maintained its ‘underperform’ rating on Raymond as the near-term earnings will remain subdued with denim continuing to be a huge drag on overall performance.
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Week Ahead: Large gains seem unlikely - BS
The market swung sharply up in one session and plunged through the rest of the week. The Nifty closed at 4,352.3 points for a nominal week-on-week loss of 0.2 per cent. The Sensex lost 0.5 per cent to close at 14,564 points. The rupee lost ground steadily and the Defty lost over 2 per cent as a result. The FIIs were heavy net sellers and the local institutions were net buyers.
Breadth signals turned sharply negative on Friday. Volumes improved slightly from the past week. The Bank Nifty and the CNXIT both registered gains but almost every other sector lost a little ground. The Junior was down 0.5 per cent while the BSE 500 was down 0.3 per cent.
Outlook: The short-term trend is clearly negative. The intermediate trend may be changing for the worse. Next week could see either range-trading (with small gains) or it could see significant losses. Big gains seem unlikely. Most likely the market will stay inside 4,200-4,500.
Rationale: The intermediate uptrend is 8 weeks old - enough time to reverse though it could run up for another month. It has seen lower tops last week of 4,522 (September 2) versus 4,649 (August 12). But there is excellent support below current levels, at 4,300 and a secondary support between 4,150-4,200. On the upside, there's resistance building above 4,500 and probably at 4,450 as well.
The last three weeks have been characterised by very low volumes. Any improvement in volumes could result in a breakout in either direction. A close below 4,150 would confirm an intermediate trend reversal. A close above 4,650 would set up a target of 4,750-4,800.
Bulls & bears: There were astonishing volumes generated by two new listings, Resurgere and Austral. Apart from that, banking saw a sell off on Friday after a strong week. The CNXIT held its ground though individual counters like Wipro and Educomp were weak.
A drop in global crude prices translated into buying sentiment for BPCL, HPCL and IOC while a cut in Indian ATF prices meant a boost for Jet Airways and Deccan. Apart from these, there were isolated winners such as Aban, Biocon, and Ranbaxy saw price collapse after the open offer closed.
MICRO TECHNICALS
Aban Current price : Rs 2,294.7Target price: Rs 2,500
The stock is coming off a low at Rs 2,000 with very strong volumes. A V-shaped recovery till the Rs 2,500 level could occur. Keep a stop at Rs 2,200 and go long. Be prepared for daily moves of up to 10 per cent. If the stock closes above Rs 2,500, it could run till Rs 2,650.
Cipla
Current price: Rs 233.45 Target price: Rs 220
The stock has been sold down quite heavily from the Rs 240-plus level. It has a potential support at Rs 225 and this is the minimum downside target. It is more likely to fall till the Rs 220 level however, where a secondary support will hold
Jet Airways Current price: Rs 540.90Target price: Rs 570
The stock has jumped from 450 in just five sessions on decent volumes. At Rs 520, it completed a bullish breakout with a potential target of Rs 570. However there is powerful resistance between the current price and Rs 575. This could mean big intra-day moves and not much in the way of net gains. Keep a stop at Rs 530 and go long. Book profits over Rs 565.
RCom Current price: Rs 394.5 Target price: Rs 420
The stock appears to have found reliable support between Rs 380-400 and this looks like a stable bottom formation. It has the potential to jump to Rs 420 on the slightest volume expansion. The signal would be a close above Rs 400. Keep a stop at Rs 385 and go long with a 10-session perspective.
Source:ET, BS.
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