Top Headlines Today
Mkt recover on FM comments, positive global cues
Jet, Kingfisher join forces to tide over slump
Nano may roll out on Ratan Tatabs 71st bbday
No risk for ICICI UK arm: Moody's, S&P
Axis Bank Q2 net goes up by 77 per cent
BSNL to roll out 3G services in NE states, Chennai by Jan
Figures too can lie: IIP under cloud, govt works on new index
ICICI Bank surges 19 pc after CEO's assurance
Kamath asserts ICICI Bank has no liquidity problem
Billionaire investor Soros backs US' rescue plan
Axis Bank net surges 77% to Rs 403cr
Moody's, S&P also give clean chit
US stocks: Futures jump on bank rescues; Morgan higher
Core Projects and Technologies massive Fall
BSE Bulk Deals to Watch - Oct 13 2008
NSE Bulk Deals to WAtch - Oct 13 2008
Capital Goods
Futures and Options - Oct 13 2008
India Pharma
Markets pull back
Post Session Commentary - Oct 13 2008
Market recovers on firm global stocks
Suzlon Energy
CRR Cut, Infosys Technologies, Results Preview
Chemcel Biotech ends at 68% discount over IPO pric...
Reliance Industries
Market may remain volatile
Bullion metals drop for second straight day
Market may recover in volatile trade
SOurce:Sify,ET,Deadpresident,BS etc
13 October 2008
Sensex (+781 pts) recover on FM comments, positive global cues
Mkt recover on FM comments, positive global cues
Bulls staged a strong comeback on Monday as sentiments turned positive on assuring comments from Finance Minister P Chidambaram and also as global markets opened higher after steps by European markets to curb on-going financial crisis.
After the worst fall last week, markets opened with a gap-up in line with other Asian markets on reports that European countries were collectively infusing funds to ease credit in banking system. In another development, UK government said it would inject $63 billion into three banks to keep liquidity crunch at bay.
Back home, Finance Minister Chidambaram’s statement that Indian economy was growing at a robust pace and assurances that the Reserve Bank of India will infuse more funds to fight credit squeeze boosted sentiments. Investors began taking long positions in frontline stocks which were battered heavily. Efforts by management of ICICI Bank to clear air on their financial positions helped as the scrip shot up recovering losses in previous sessions. “In early part of trade there was build-up of long positions and later as the market gained momentum, traders began to cover short positions, taking indices to higher levels,” said technical analyst, Birendra Kumar Singh of Religare Securities.
Bombay Stock Exchange’s Sensex closed at 11,309.09, up 7.42 per cent or 781.24 points. The index touched an intra-day high of 11,361.32 and low of 10,817.68. National Stock Exchange’s Nifty ended at 3490.70, up 210.75 points or 6.43 per cent. It touched a high of 3510.20 and low of 3272.90 during the day.
BSE Midcap Index was up 4.40 per cent and BSE Smallcap Index gained 3.85 per cent. “In this bear phase, Sensex has seen four pull-back rallies from its channel supports. Friday’s low of 10,239 was the fourth channel support. On earlier occassion, Sensex rallied some 3,000 points and now we may see 1,500-3,000 points rally. Targets for the Sensex will be 11,700, 12,000 and 12,500, provided it manages to close above 11,501. But if it falls below Friday’s low then we may see a continuation of negative trend and next target would be 9,898,” said Birendra Kumar. Reliance Communications (19.92%), Reliance Infrastructure (17.13%), ICICI Bank (16.71%), Sterlite Industries (15.99%) and HDFC Bank (12.58%) were the major Sensex gainers. Ranbaxy Laboratories (-5.88%) and ONGC (-1.02%) were the only losers. Market breadth remained extremely positive through the day. On BSE, there were 1687 advances against 926 declines.
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Sensex gains 809 pts on strong global cues
Equities pull-back to close higher
Sensex above 11,000, ICICI Bank up 20%
Jet, Kingfisher join forces to tide over slump
-----------------------------------------------
AXIS Bank Q2 net up at Rs 402.91 cr
Bankex surges 12.3%, Axis Bank zooms 20% on strong Q2
AXIS Bank Ltd has announced the following Unaudited results for the quarter ended September 30, 2008:
The Bank has posted a net profit of Rs 402.91 crore for the quarter ended September 30, 2008 as compared to Rs 227.82 crore for the quarter ended September 30, 2007. Total Income has increased from Rs 2059.37 crore for the quarter ended September 30, 2007 to Rs 3239.45 crore for the quarter ended September 30, 2008.
Source: SIfy,ET
Bulls staged a strong comeback on Monday as sentiments turned positive on assuring comments from Finance Minister P Chidambaram and also as global markets opened higher after steps by European markets to curb on-going financial crisis.
After the worst fall last week, markets opened with a gap-up in line with other Asian markets on reports that European countries were collectively infusing funds to ease credit in banking system. In another development, UK government said it would inject $63 billion into three banks to keep liquidity crunch at bay.
Back home, Finance Minister Chidambaram’s statement that Indian economy was growing at a robust pace and assurances that the Reserve Bank of India will infuse more funds to fight credit squeeze boosted sentiments. Investors began taking long positions in frontline stocks which were battered heavily. Efforts by management of ICICI Bank to clear air on their financial positions helped as the scrip shot up recovering losses in previous sessions. “In early part of trade there was build-up of long positions and later as the market gained momentum, traders began to cover short positions, taking indices to higher levels,” said technical analyst, Birendra Kumar Singh of Religare Securities.
Bombay Stock Exchange’s Sensex closed at 11,309.09, up 7.42 per cent or 781.24 points. The index touched an intra-day high of 11,361.32 and low of 10,817.68. National Stock Exchange’s Nifty ended at 3490.70, up 210.75 points or 6.43 per cent. It touched a high of 3510.20 and low of 3272.90 during the day.
BSE Midcap Index was up 4.40 per cent and BSE Smallcap Index gained 3.85 per cent. “In this bear phase, Sensex has seen four pull-back rallies from its channel supports. Friday’s low of 10,239 was the fourth channel support. On earlier occassion, Sensex rallied some 3,000 points and now we may see 1,500-3,000 points rally. Targets for the Sensex will be 11,700, 12,000 and 12,500, provided it manages to close above 11,501. But if it falls below Friday’s low then we may see a continuation of negative trend and next target would be 9,898,” said Birendra Kumar. Reliance Communications (19.92%), Reliance Infrastructure (17.13%), ICICI Bank (16.71%), Sterlite Industries (15.99%) and HDFC Bank (12.58%) were the major Sensex gainers. Ranbaxy Laboratories (-5.88%) and ONGC (-1.02%) were the only losers. Market breadth remained extremely positive through the day. On BSE, there were 1687 advances against 926 declines.
---------------------------------------
Sensex gains 809 pts on strong global cues
Equities pull-back to close higher
Sensex above 11,000, ICICI Bank up 20%
Jet, Kingfisher join forces to tide over slump
-----------------------------------------------
AXIS Bank Q2 net up at Rs 402.91 cr
Bankex surges 12.3%, Axis Bank zooms 20% on strong Q2
AXIS Bank Ltd has announced the following Unaudited results for the quarter ended September 30, 2008:
The Bank has posted a net profit of Rs 402.91 crore for the quarter ended September 30, 2008 as compared to Rs 227.82 crore for the quarter ended September 30, 2007. Total Income has increased from Rs 2059.37 crore for the quarter ended September 30, 2007 to Rs 3239.45 crore for the quarter ended September 30, 2008.
Source: SIfy,ET
Investors Guide from ET and Mkt Outlook
Investor's Guide
Is there any respite on the anvil?13 Oct, 2008, 0455 hrs IST
Technical analysis assumes that all news, including what lies ahead, has been factored in the price of an asset. ETIG presents a snapshot of what the charts of Nifty and everything that affects it tell us...
The bull is dead, long live the bull 13 Oct, 2008, 0446 hrs IST, Shakti Shankar Patra
The very existence of free market capitalism seems to be at stake. JUST STAY OUT.
Markets in a bottomless pit 13 Oct, 2008, 0442 hrs IST, Deepak Mohoni
The market’s longterm (major) trend clearly remains down. It will be best to take the level to be crossed for a major uptrend (i.e. bull market) as the last but one intermediate top of 15,580, made on August 12.
Credit crisis may spur oil mergers in Africa 13 Oct, 2008, 0440 hrs IST
The global credit crunch can usher in a new wave of mergers and acquisitions (M&As ) in the oil sector, especially in Africa where small firms will find it difficult to bankroll exploration.
Oil on slippery terrain 13 Oct, 2008, 0435 hrs IST, Ramkrishna Kashelkar
Recent fall in crude oil prices will ease pressure on the government’s treasury, but refining companies are likely to take a hit.
Health check: Cipla and Dr Reddy's Labs 13 Oct, 2008, 0427 hrs IST, Kiran Kabtta
While Cipla follows a low-risk strategy of branded generics and alliances to grow in overseas markets, DRL believes in taking big bets.
Edelweiss maintains 'buy' recommendation on Opto Circuits 13 Oct, 2008, 0422 hrs IST
Edelweiss cancelled the proposed $100-million acquisition of an European company as the demanded price was not justifiable from an economic value perspective.
BNP Paribas maintains 'buy' rating on Shiv-Vani Oil & Gas 13 Oct, 2008, 0421 hrs IST
BNP Paribas maintains ‘buy’ rating on Shiv-Vani Oil & Gas, while reducing the target price from Rs 800 to Rs 522 on higher borrowing costs and multiple contractions.
Indian debt market: It ain't so grim after all 13 Oct, 2008, 0418 hrs IST, Karan Sehgal
The yield curve in the Indian debt market doesn’t necessarily suggest that doomsday is upon us.
Jain Irrigation Systems is good long-term bet for investors 13 Oct, 2008, 0413 hrs IST, Shikha Sharma....Jain Irrigation Systems’ expansion plans, diversified business model and improving efficiencies make it a good long-term bet for investors.
---------------------------------------------------
Maximum downside of 3,050
Last week saw global carnage with all the major markets down by double-digits. The Nifty lost over 14 per cent at 3,279.95 points and it hit a low of 3,199 on Friday. The Sensex was off 15.95 per cent and the Defty down 16.65 per cent as the rupee tested support at Rs 49 before settling at Rs 48.72.
The FIIs have sold close to Rs 5,000 crore of equity in October and Indian institutions have sold about Rs 900 crore. Smaller stocks were harder hit with the Nifty Junior and the Midcaps 50 down 19.9 per cent and 21 per cent respectively. The BSE 500 was off 17.5 per cent. Volumes were moderate and calculation of advance-decline ratios was absurd, since there were almost no advances.
Outlook
Next week prices are likely to move between 3,050-3,450. By closing below 3,800, the market set a maximum downside target of 3,050-3,100, which could be fulfilled. Momentum indicators are oversold but prices could fall until short-covering is triggered close to settlement. But any bounce will be very sharp and a 200-250 point rise in a single-session is likely sometime next week. Either way, big intra-day swings are probable.
Rationale
There has seldom if ever, been a down move of comparable dimensions. Chart patterns of support/resistance are now based on mid-2006 trading patterns. Volumes have been low. There is no major short-term resistance between the Friday close of 3,279 and 3,450. A single session of buying could therefore drive prices up a lot.
Counter-view
Gut-feel says delivery-backed selling will continue, interspersed with occasional short-covering. But there is a chance the market could recover and consolidate with range-trading between 3,400-3,800. The intermediate downtrend started in mid-July and could mature over the next week or two.
Bulls & bears
Stay away from anything outside the highly liquid F&O population. Instead of seeking bullish stocks, which are not easy to locate, long traders could focus on over-sold counters. This is where bounces could generate 7-10 per cent in a single session. Power Grid and Ranbaxy are among the few stocks that actually seem bullish.
On the short side, most stocks that made downside breakouts have fulfilled initial target projections. But many stocks look as though weakness could intensify. These include GMR Infra, HCL Tech, HDFC, Hero Honda, RCom, Idea, Reliance Capital, Dabur, HUL, RPower and Suzlon.
In terms of critical sectors, metals may be bottoming out. While Tata Steel, Sesa Goa and Jindal Steel look to have further downsides, SAIL, Hindalco and Sterlite appear to have found support. In banking, PSUs such as Canara, Indian Overseas, Oriental and SBI look much stronger than ICICI, Kotak, Yes Bank, etc. The IT sector seems to have some downside as well – HCL Tech and Wipro look quite exposed along with second-rank stocks like Rolta and the entire ITES segment.
MICRO TECHNICALS
HCL TechCurrent Price: Rs 170.25Target Price: Rs 145
The stock made a downside breakout on high volumes. It has a target of Rs 145 and in fact, hit that level briefly on last Friday. Keep a stop at Rs 179 and go long. Wide stops are necessary because there could be a huge intra-day swing. Below Rs 150, start booking profits.
RILCurrent Price: Rs 1,527Target Price: Rs 1,630
The stock made another downside breakout when it closed below Rs 1,630. It appears to have good support at the current level and short-covering could pull the price back till Rs 1,630. Keep a stop at Rs 1,510 and go long. Book profits above Rs 1,615.
Reliance PowerCurrent Price: Rs 124.15Target Price: Rs 112
The stock has made a downside breakout to hit another historic low. It has a possible target of about Rs 110. Keep a stop at Rs 127 and go short. Start booking profits below Rs 114. If the stock does climb above the Rs 128 stop, it could move till Rs 136 on the bounce.
Yes BankCurrent Price: Rs 71.95Target Price: Rs 65
The stock has made a downside breakout on a big volume expansion. It has a likely target of Rs 65 although there could be some support at current levels. If it bounces within the next three sessions, the upside target will be about Rs 90. Take a stop at Rs 75 and go short. Cover at Rs 65. If the stop is triggered, go long with a target of Rs 90 and a stop at Rs 74.
Source: ET,BS
Is there any respite on the anvil?13 Oct, 2008, 0455 hrs IST
Technical analysis assumes that all news, including what lies ahead, has been factored in the price of an asset. ETIG presents a snapshot of what the charts of Nifty and everything that affects it tell us...
The bull is dead, long live the bull 13 Oct, 2008, 0446 hrs IST, Shakti Shankar Patra
The very existence of free market capitalism seems to be at stake. JUST STAY OUT.
Markets in a bottomless pit 13 Oct, 2008, 0442 hrs IST, Deepak Mohoni
The market’s longterm (major) trend clearly remains down. It will be best to take the level to be crossed for a major uptrend (i.e. bull market) as the last but one intermediate top of 15,580, made on August 12.
Credit crisis may spur oil mergers in Africa 13 Oct, 2008, 0440 hrs IST
The global credit crunch can usher in a new wave of mergers and acquisitions (M&As ) in the oil sector, especially in Africa where small firms will find it difficult to bankroll exploration.
Oil on slippery terrain 13 Oct, 2008, 0435 hrs IST, Ramkrishna Kashelkar
Recent fall in crude oil prices will ease pressure on the government’s treasury, but refining companies are likely to take a hit.
Health check: Cipla and Dr Reddy's Labs 13 Oct, 2008, 0427 hrs IST, Kiran Kabtta
While Cipla follows a low-risk strategy of branded generics and alliances to grow in overseas markets, DRL believes in taking big bets.
Edelweiss maintains 'buy' recommendation on Opto Circuits 13 Oct, 2008, 0422 hrs IST
Edelweiss cancelled the proposed $100-million acquisition of an European company as the demanded price was not justifiable from an economic value perspective.
BNP Paribas maintains 'buy' rating on Shiv-Vani Oil & Gas 13 Oct, 2008, 0421 hrs IST
BNP Paribas maintains ‘buy’ rating on Shiv-Vani Oil & Gas, while reducing the target price from Rs 800 to Rs 522 on higher borrowing costs and multiple contractions.
Indian debt market: It ain't so grim after all 13 Oct, 2008, 0418 hrs IST, Karan Sehgal
The yield curve in the Indian debt market doesn’t necessarily suggest that doomsday is upon us.
Jain Irrigation Systems is good long-term bet for investors 13 Oct, 2008, 0413 hrs IST, Shikha Sharma....Jain Irrigation Systems’ expansion plans, diversified business model and improving efficiencies make it a good long-term bet for investors.
---------------------------------------------------
Maximum downside of 3,050
Last week saw global carnage with all the major markets down by double-digits. The Nifty lost over 14 per cent at 3,279.95 points and it hit a low of 3,199 on Friday. The Sensex was off 15.95 per cent and the Defty down 16.65 per cent as the rupee tested support at Rs 49 before settling at Rs 48.72.
The FIIs have sold close to Rs 5,000 crore of equity in October and Indian institutions have sold about Rs 900 crore. Smaller stocks were harder hit with the Nifty Junior and the Midcaps 50 down 19.9 per cent and 21 per cent respectively. The BSE 500 was off 17.5 per cent. Volumes were moderate and calculation of advance-decline ratios was absurd, since there were almost no advances.
Outlook
Next week prices are likely to move between 3,050-3,450. By closing below 3,800, the market set a maximum downside target of 3,050-3,100, which could be fulfilled. Momentum indicators are oversold but prices could fall until short-covering is triggered close to settlement. But any bounce will be very sharp and a 200-250 point rise in a single-session is likely sometime next week. Either way, big intra-day swings are probable.
Rationale
There has seldom if ever, been a down move of comparable dimensions. Chart patterns of support/resistance are now based on mid-2006 trading patterns. Volumes have been low. There is no major short-term resistance between the Friday close of 3,279 and 3,450. A single session of buying could therefore drive prices up a lot.
Counter-view
Gut-feel says delivery-backed selling will continue, interspersed with occasional short-covering. But there is a chance the market could recover and consolidate with range-trading between 3,400-3,800. The intermediate downtrend started in mid-July and could mature over the next week or two.
Bulls & bears
Stay away from anything outside the highly liquid F&O population. Instead of seeking bullish stocks, which are not easy to locate, long traders could focus on over-sold counters. This is where bounces could generate 7-10 per cent in a single session. Power Grid and Ranbaxy are among the few stocks that actually seem bullish.
On the short side, most stocks that made downside breakouts have fulfilled initial target projections. But many stocks look as though weakness could intensify. These include GMR Infra, HCL Tech, HDFC, Hero Honda, RCom, Idea, Reliance Capital, Dabur, HUL, RPower and Suzlon.
In terms of critical sectors, metals may be bottoming out. While Tata Steel, Sesa Goa and Jindal Steel look to have further downsides, SAIL, Hindalco and Sterlite appear to have found support. In banking, PSUs such as Canara, Indian Overseas, Oriental and SBI look much stronger than ICICI, Kotak, Yes Bank, etc. The IT sector seems to have some downside as well – HCL Tech and Wipro look quite exposed along with second-rank stocks like Rolta and the entire ITES segment.
MICRO TECHNICALS
HCL TechCurrent Price: Rs 170.25Target Price: Rs 145
The stock made a downside breakout on high volumes. It has a target of Rs 145 and in fact, hit that level briefly on last Friday. Keep a stop at Rs 179 and go long. Wide stops are necessary because there could be a huge intra-day swing. Below Rs 150, start booking profits.
RILCurrent Price: Rs 1,527Target Price: Rs 1,630
The stock made another downside breakout when it closed below Rs 1,630. It appears to have good support at the current level and short-covering could pull the price back till Rs 1,630. Keep a stop at Rs 1,510 and go long. Book profits above Rs 1,615.
Reliance PowerCurrent Price: Rs 124.15Target Price: Rs 112
The stock has made a downside breakout to hit another historic low. It has a possible target of about Rs 110. Keep a stop at Rs 127 and go short. Start booking profits below Rs 114. If the stock does climb above the Rs 128 stop, it could move till Rs 136 on the bounce.
Yes BankCurrent Price: Rs 71.95Target Price: Rs 65
The stock has made a downside breakout on a big volume expansion. It has a likely target of Rs 65 although there could be some support at current levels. If it bounces within the next three sessions, the upside target will be about Rs 90. Take a stop at Rs 75 and go short. Cover at Rs 65. If the stop is triggered, go long with a target of Rs 90 and a stop at Rs 74.
Source: ET,BS
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