Stock and Market Views

TECHNICAL ANALYSIS: Index Outlook: End of correction?
The keystone of technical analysis is the belief that news flow is only incidental and stock price movements are governed by the twin forces of demand and supply. This fact was borne out yet again by the movement in equity markets this ...

STOCKS: Hindustan Unilever: Buy
The Hindustan Unilever (HUL) stock has been the sole exception to the re-rating enjoyed by consumer companies over the ...

STOCKS: Sun Pharmaceuticals: Buy
Better-than-expected financial performance, promising outlook for its domestic and international formulations business and the possibility of resumption in manufacturing at Caraco's site by the end of this year make Sun Pharmaceuticals ...

STOCKS: SAIL: Hold
Investors can consider holding on to steel major SAIL, whose massive size in terms of production capacity, raw materials and cash, coupled with low levels of debt and a robust domestic market for its products, makes for a compelling case to ...

STOCKS: NIIT: Buy
Investors with a two-year horizon can consider taking exposure to the stock of NIIT, a training solutions provider for individuals and corporates, given the broad-based recovery in all its key segments ...


TECHNICAL ANALYSIS: Consider bear-put strategy on Nifty
The Nifty rollover figures this time around have been on the lower side, lower than even its previous three-month and six-month averages. The looming uncertainty in global financial markets and the short squeeze witnessed in the last two days ...

TECHNICAL ANALYSIS: Go short in RNRL
RNRL (Rs 52): The stock has been in a downtrend for the last nine months, though it witnessed a pull back rally in the last ten days. As long as it stays below Rs 76, the outlook remains negative. The stock now finds crucial support at Rs ...

TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,033.8)
It was an extremely volatile period for Reliance Industries in May as the stock spiked to Rs 1,093.6 and then crashed towards our lower medium-term target of Rs 966. The short-term trend in the stock is down since the May 13 peak of Rs 1,093. ...

TECHNICAL ANALYSIS: Sizzling Stocks: Sesa Goa (Rs 373.8)
Sesa Goa turned red hot on Friday as market participants decided that the recent sell-off was excessive and Chinese demand was unlikely to wane anytime soon. The stock spiked to the high of Rs 375 on Friday to record gain of over 20 per cent ...

TECHNICAL ANALYSIS: Query Corner: Godrej Ind in medium-term downtrend
I have purchased the shares of Everest Kanto Cylinder at Rs 140 and Subex at Rs 73. What is the outlook for the above shares? J. Sadeesh kumar, R. Sandhya Lakshmi, S. ...




Heard on the Street: Local mutual fund takes fancy to Crompton

Eurozone woes to haunt markets: Analysts

Review: HTC EVO 4G mobiles

Bajaj Auto, Tata Motors top two bets for next 12 months: Shankar Sharma

Avoid buying RCom, RIL stocks: Shankar Sharma

Essar to buy Avaya's AGC Networks for Rs 206 cr

M&M net up 36% at Rs 570 cr

Strategies: Expert tips on stocks, sectors buzzing this wk

Hindalco Industries

Glenmark Pharma

GMDC

Apollo Tyres

GSFC

Weekly Watch - May 29 2010

Grasim, Everonn Systems, NTPC

Fortis Healthcare Limited

Src: Economictimes, DP blog , Businessline and etc

Heard on the street: Edelweiss keen on banking foray

Heard on the street: Edelweiss keen on banking foray

A private MF bets strong on Indiabulls Real Estate

Shares of Indiabulls Real Estate seem to have caught the attention of a leading private mutual fund. Going by market grapevine, the mutual fund known for its aggressive bets has been buying in the stock at different levels over the past few weeks, even as FIIs or foreign institutional investors have been exiting the stock. On the BSE, the stock rose by 3.8% on Wednesday to end at Rs 151.65, but has been an underperformer for the past few months having lost more than 10% in the past one month. As the realty sector has been one of the most pummelled sectors in recent times, analysts believe that these stocks could see a good bounce from current levels in days to come. Also, the fundamentals of the company seem attractive, as the company reported decent fourth quarter numbers.

Edelweiss keen on banking foray, awaits RBI norms

Mumbai-based financial services firm Edelweiss is eyeing a banking foray, according to investment bankers. It will be joining the growing list of corporates, including Anil Ambani-promoted Reliance group, Aditya Birla group, Shriram Capital and Religare, which have already made known their intentions to seek a banking licence. Most of the players are waiting for the Reserve Bank of India (RBI) to come out with a fresh set of guidelines that would allow new private players in the banking sector after which they are expected to approach RBI for a banking licence.

Overseas acquisition buzz lifts Aqua Logistics

Mumbai-based logistics and supply chain company Aqua Logistics has been witnessing a sustained accumulation by funds and HNIs. It has gained over 30% in the past one month on the back of acquisition talks. According to market grapevine, the company is looking to acquire a company in Thailand in liquid gas and in Indonesia for coal chartering. The acquisitions are expected to allow Aqua to increase its geographical presence and compete with multinationals. The stock closed at Rs 451, up over 2% from the previous close. The company came out with an IPO early this year for purchasing specialised equipment, expansion of offices and funding-proposed acquisition, among others. It has recently announced acquisition of three companies in Hong Kong through its wholly-owned subsidiary Aqua Logistics HK. As an external service provider, Aqua services include multimodal transportation, contract logistics, warehousing and project logistics. When contacted, MS Sayad, VC, Aqua Logistics said that the talks are at a preliminary stage and nothing has been finalised yet.

Contributed by Harish Rao & Reena Zachariah


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Markets may see flat-to-negative opening

Deccan Chronicle

Jyothy Labs

DB Corp

SBI, Dena Bank, Man Industries, Kotak Mahindra Bank

Hindustan Unilever Limited

Tata Power Limited

Edelweiss Capital

Kaveri Seeds

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Tata Steel posts a hefty Rs 2,009-cr loss in FY10 /

Tata Steel posts loss in FY10, better than forecast

Mahindra to acquire 55.2% stake in Reva


BHEL Q4 net jumps 42% to Rs 1,910 cr

Stock Analysis: Opto circuits

Result analysis: BHEL

Zensar Tech zooms 8% on bonus issue





Src: All Leading Business Websites.

Sensex falls below 16,000 to 3-month low

Sensex falls below 16,000 to 3-month low

MUMBAI: India's main stock index Sensex fell below 16,000 points for the first time in more than three months on rising foreign fund outflow as Europe's debt woes hit risk appetite.

At 2:41 p.m., the 30-share BSE index was down 2.9 percent at 15,994.12 points, with all of its components falling.

At 2:38 pm, National Stock Exchange's Nifty was at 4797.05, down 146.90 points or 2.97 per cent. The index touched a low of 4795.15 and high of 4946.60 in trade so far.

It had last been below 16,000 on Feb. 11. The 50-share NSE index was down 3 percent at 4,796.50.

BSE Midcap Index was down 2.96 per cent and BSE Smallcap Index moved 3.12 per cent lower.

Amongst the sectoral indices, BSE Metal Index fell 4.84 per cent, BSE Capital Goods Index declined 2.98 per cent and BSE Auto Index fell 2.95 per cent.

Reliance Communications (-6.32%), SAIL (-6.22%), Hindalco (-6.15%), Ambuja Cements (-5.49%) and IDFC (-5.22%) were amongst the top Nifty losers.

Sun Pharma (2.09%) was the only gainer.

Market breadth was negative on the NSE with 2430 losers against 508 gainers.

European markets continued to witness pain over debt-crisis issue plaguing Europe. DAX fell 2.45 per cent, CAC 40 was down 2.88 per cent and FTSE 100 declined 2.27 per cent.

Sensex, Nifty break key levels; all sectors butchered

World stocks sink on renewed Europe fears

Rupee at 8-month low; shares, euro losses hurt

Check out how new issues are faring in the market

Src: ET and Moneycontrol.com

Back to the Bearish Ways

The markets are likely to open with a downward bias on continued international weakness. The US markets tumbled Monday with the Dow giving up all but 5 points of gains registered Friday during a fury of short covering on the options expiry.

After trading in a narrow range for much of the day, the Dow Jones Industrial Average tumbled 127 points, the S&P 500 lost 14 points to 1074 and the NASDAQ shed 15 points at 2214.

The late swoon indicated those investors’ fears about Europe's credit crisis and tighter rules on Wall Street are still running strong. Financials led the decline on a day when the street refused to take cognizance of the 7.6% rise in existing home sales.

The euro was under pressure during the session as the market weighed news that the Bank of Spain bailed out a regional savings bank. The 1.1% rise in Dollar Index, however, did not prevent the Crude and Gold futures to move higher 17 cents and $ 17.90 higher respectively.

The bullish fervour seen in the morning trades in our markets could not hold for the day as bears came back in the afternoon to snatch the initiative away from the nascent bulls. The Nifty managed to cling on to just 13 points of gains, from the 98 points seen at one point.

Barring Reliance Infra, which saw some additional position build up, the rest of the clan saw positions being pruned as investors took advantage of the god sent rally to prune positions.

Our stated view was also the same.

Expect the Nifty to take support around the 4850 level. If the 4832 level breaks, it will not augur well and we could see a cascade of selling by risk managers in that eventuality.

Autos, banks, metals, realty still look weak. As the settlement draws near, the options are becoming cheap and times match the stop loss of a trader. Switching to options during the last two days of the settlement is protective and also gives you more bangs for the buck. Ask your RM to understand how you can hedge your portfolio or use options to trade.

Technical Picks – Stocks

Recommended Action for Alstom Projects is Buy and for Pantaloon Retail Futures is Short on rises

Weekly Market, Sectoral and Stock Perspective – Technicals

Markets resumed their intermediate downtrend as they slided lower this week.


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Infosys Technologies Annual Report 2009-2010

Reliance Industries

India Telecom

Karur Vysya Bank

GVK Power and Infrastructure

Bharat Forge

Divi's Labs

StanChart sets IDR price band at Rs 100-115 each

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Ambani Bros: From Recrimination To Reconciliation

Market cheers 'harmony' among Ambani brothers

Ambani peace a positive for groups, shareholders: Analysts

Sensex may scale 18K-mount by year-end: Citigroup

PM sees 5-6% inflation by Dec, 8.5% growth this fiscal

Illiquid stocks spring back to life




Src: Economictimes.indiatimes, HDFCSEc, DP blog and etc

Sensex tanks by over 400 points

Sensex tanks by over 400 points


UMBAI: Benchmarks were under intense selling pressure on Wednesday breached 200 Daily Moving Average as sentiments in global markets turned bearish after Germany banned short-selling in some government bonds and stocks.

At 2:28 pm, Bombay Stock Exchange’s Sensex was at 16454.75, down 421.01 points or 2.49 per cent. The index hit intraday low of 16414.65 and high of 16802.39.

National Stock Exchange’s Nifty was at 4940.60, down 125.60 points or 2.48 per cent. The index touched intraday low of 4919.45 and high of 5065.10.

The index has breached its 200 DMA of 4988. This is the second time in the week that the index has tested its crucial support levels. According to analysts, the concern will begin if the index closes below 200 DMA for at least two consecutive sessions which may trigger more short positions.

BSE Midcap Index was down 2.07 per cent and BSE Smallcap Index slipped 1.97 per cent lower.

All the sectoral indices were in the red. BSE Metal Index fell 3.70 per cent, BSE Realty Index tumbled 3.69 per cent and BSE Bankex slipped 3.52 per cent.

Sterlite Industries (-6.76%), Tata Motors (-5.80%), ICICI Bank (-5.62%), Jaiprakash Associates (-5.29%) and M&M (-5.28%) were amongst the major Sensex losers.

Hero Honda (0.86%), was the lone index gainer.

Market breadth was negative on the BSE with 1110 losers against 189 gainers.

Meanwhile, the European shares were in deep red by losses in the financials. FTSE 100 was down 2.62 per cent, CAC 40 fell 3.01 per cent and DAX fell 2.81 per cent.


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Bluechips below 200DMA: To buy or not to buy

MUMBAI: Stocks have been under pressure for some time now due to fundamental reasons pertaining to their respective sectors as well as due to economic uncertainties in the global markets. On Monday, traders heaved a sigh of relief as the Nifty bounced back after briefly slipping below its 200-Daily Moving Average of 4980. Index heavyweights like Reliance Industries and ONGC, which pulled the Nifty down, too have slipped below their 200-DMA. The 200-DMA is a historical tool and indices or prices don’t breach this level on the downside very often. If the price stays above 200-DMA, it’s a bullish sign, whereas a move below it signals a bearish sentiment. “Given global concerns, most of the stocks have underperformed for good reason and should be left out. Weakness in index heavyweight Reliance Industries appears as a precursor to some correction in coming days. If the market stays below 5000 levels then we might see 4600 on the Nifty,” said Sandeep J Shah, CEO, Sampriti Capital. List of the biggies that are significantly below their 200 DMA Sr. no Stock CMP (Rs) 200 DMA(Rs) - % 1 Reliance Communications 145 203.04 28.6 2 DLF 289.3 362.22 20.1 3 Suzlon Energy 63.95 81.11 21.2 4 Bharti Airtel 267.95 334.07 19.8 5 Jaiprakash Associates 127.7 149.18 14.4 6 Maruti 1242.45 1447.4 14.2 7 Unitech 76.25 85.79 11.1 8 Sterlite Industries 688.25 784.89 12.3 9 ONGC 1051.35 1136.69 7.51 10 Reliance Industries 1020.6 1043.49 2.19 11 NTPC 205.15 210.7 2.63 Note: Closing figures as on 19-05-2010 The stocks may have fallen temporarily and look bearish on the charts. However, they can be picked up at current levels for the long-term period of over a year. “Investors can enter these stocks at current levels for a holding period of minimum one year. Investors can put 25% of the funds at these levels and wait to accumulate at lower levels,” said Ajay Parmar, head of research at Emkay Global Financial Services.

More @ Bluechips below 200DMA: To buy or not to buy

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Other stories

Greece bailout will not impact euro: Mark Mobius, Franklin Templeton


Rupee hits 12-week low on shares, euro slump

Blood on D-Street, Nifty ends below 200 DMA

Src: Economictimes.indiatimes, Moneycontrol.com

Wall St slips on European debt worries; Dow down 225 pts

n the US markets it was the worst percentage slide since February & has put the S&P 500 at a one month low and just above its 50-day moving average.

Volatility spiked to more than a two-month high as a result. The CBOE volatility index spiked more than 20% to about 24.

Stocks were under pressure for the entire session on worries that the European debt crisis will spread. The market was buzzing with a fresh round of speculation that Spain might be next to need a bailout.

Also Read See how Asian markets are doing RSS feed for news Click here

At closing bell, the Dow shed 225.06, or 2%, to close at 10,926.77. The S&P 500 fell 2.4%, while the Nasdaq lost 3 percent.

Investors shrugged off a pair of encouraging US economic reports. Pending-home sales rose 5.3% in March, slightly better than expected, while factory orders jumped 1.3% in March, significantly better than the 0.1-percent drop expected.

European stocks erased their 2010 gain on concerns that Greece's debt crisis will spread through the region. The sovereign debt concerns led that caused Greece's Athex Composite to fall 6.7%, Spain's ibex to drop 5.4%. Portugal's general index gave up 3.8%.

The dollar hit a one-year high against the euro as investors worried that Greece may not pull off its austerity measures and that debt problems could spread to other countries.

Strength in the dollar and a sour tone in the stock market led to an over 2% drop in the CRB commodity index, its worst loss in three months.

Oil was one of the weakest commodities as it recorded its largest single-session loss in nearly three months. June contracts cracked 4% to USD 82.74 per barrel.

Gold was also lower after it gave up an early gain. The yellow metal slipped over a percent. The base metal slump continues with copper down to 7000 dollar per tonne levels.

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Top 5 picks | Mid-term picks

• Shree Renuka allots shares to farmers
• Titan: Stock seen too pricey for now
• Orient Paper: Realty pick-up helps
• Balrampur Chini: Volumes in better shape

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Daily News Roundup - May 5 2010

Worldly worries

Ambuja Cements

BGR Energy Systems

HDFC

Cadila Healthcare

Reliance Capital

Madhucon Projects

Infosys Technologies

Phoenix Mills

Cairn India

GVK Power and Infrastructure

Indiabulls RealEstate

Maharashtra Seamless

JSW Steel

Src: ET and DP blog and Moneycontrol.com

China may 'crash' in 9-12 months: Marc Faber

China may 'crash' in 9-12 months: Marc Faber


SINGAPORE: Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy”, Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen”, he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.

“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong on Monday.

“The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”

Also Read

→ Bubble forming in the property maket of China: Mark Matthews

→ Risk of asset bubbles in emerging mkts: IMF chief

→ China sounds alert over new asset bubbles in world economy

An index tracking Chinese stocks traded in Hong Kong dropped 1.8% on Monday, the most in two weeks, after the central bank raised reserve requirements for the third time this year.

The Shanghai Composite has slumped 12% this year, Asia’s worst performer, as policy makers seek to rein in a lending boom that’s spurred record gains in property prices. China’s markets are shut for a holiday on Monday.

Copper touched a seven-week low and BHP Billiton, the world’s biggest mining company, fell the most since February on concern spending in the world’s third-largest economy will slow and after Australia boosted taxes on commodities producers. Rio Tinto, the third-largest, slid as much as 6 %.

Chanos, Rogoff

Faber joins hedge fund manager Jim Chanos and Harvard University’s Kenneth Rogoff in warning of a crash in China. China is “on a treadmill to hell” because it’s hooked on property development for driving growth, Chanos said in an interview last month.

As much as 60% of the country’s gross domestic product relies on construction, he said. Rogoff said in February a debt-fuelled bubble in China may trigger a regional recession within a decade.


More @ http://economictimes.indiatimes.com/markets/global-markets/China-may-crash-in-next-9-12-months-Marc-Faber/articleshow/5887630.cms





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Top 5 stock picks | Mid-term picks | Gainers, losers & recos | Q4 Earnings




Heard on the Street: Tata Motors skids as US hedge offloads shares

Domestic fund goes ga-ga over Graphite India

An aggressive fund manager of a large domestic fund house is going bananas over Graphite India, a manufacturer of graphite electrodes.

According to the grapevine, this fund manager has bought a sizeable chunk of the stock recently, as he is betting on better prospects for the industry. On Monday, the stock, which has risen 16% in a month, closed at Rs 102, down almost 1% from the previous close.

According to analysts, growth of graphite electrodes, a key input in steel production through the electric arc furnace (EAF) route, will increase rapidly compared to EAF steel production in the next couple of years as steel manufacturers are stocking up graphite electrode inventory.

Further, the company is also expected to reap strong labour cost advantages as compared to its peers in the developed markets.

Tata Motors skids as US hedge offloads shares

Shares of Tata Motors snapped a three-day winning rally on Monday, ending at Rs 855.55, down almost 2%. According to the grapevine, a US-based hedge fund, whose Asia operations are run by a maverick fund manager, has offloaded a portion of their holding it had accumulated recently.

Brokers said the fund booked profits partly after the stock rose 6% last week compared to Sensex’s drop of 0.5%. The stock’s trating, which was a sell at most brokerages till recently, has been upgraded to a buy due to improvement in operations of Jaguar and Land Rover, which has been the cause of concern for most investors.

(Contributed by Apurv Gupta)

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Daily News Roundup - May 4 2010

Mumbai derailed, markets back on track

Biocon

Vijaya Bank

Subros

Indian Bank

Ashok Leyland Ltd

Src: Economictimes, DP blog and etc

Dalal St's intermediate uptrend may be over

Dalal St's intermediate uptrend may be over

he market fell during each of the four sessions last week, at the end of which the Sensex finished 1.91% or 341.96 points lower, and the Nifty ended 1.85% down. The CNX Midcap Index lost 1.12%.

Infosys was the biggest winner among index stocks with a 4.0% gain. The other index stocks to go up included TCS, Tata Steel, Hindustan Unilever and Sun Pharmaceutical with gains between 2.8% and 1.7%. HDFC was the biggest loser among index stocks with a 5.9% loss. The other index stocks to go down included ICICI Bank, Reliance Communications and Sterlite Industries with losses falling between 5.8% and 5.4%.

Ruchi Soya Industries was the biggest winner among the more heavily traded non-index stocks with a 13.6% gain. The other non-index stocks to go up included Indiabulls Financial, Valecha Engineering, Balrampur Chini, Unitech, Jet Airways, JSW Steel and Zee Entertainment with gains between 10.4% and 3.8%.

Amrutanjan Health Care was the biggest loser among the more heavily traded non-index stocks with a 27.8% loss. The other non-index stocks to go down included Intrasoft Technologies, Syncom Healthcare, United Spirits, Essar Oil, Punj Lloyd, Kotak Mahindra Bank and IDFC with losses falling between 11.9% and 7.2%.

INTERMEDIATE TREND:

The market’s intermediate trend appears to have turned down with the Sensex breaching its intermediate downtrend trigger level of 17,650, the Nifty going below 5,275, and the CNX Midcap falling below its equivalent of 7,875. These levels are the lows of the previous minor decline, rounded down to the nearest 25.

More @ Dalal St's intermediate uptrend may be over



Q4 Earnings | Mid term picks | Top 5 picks of the day

Economic growth can get back to that good old days
19 Apr 2010, 0742 hrs IST, Pallavi Mulay

A rapid expansion in capital goods production indicates a very resilient investment demand going ahead and if the trend sustains for a few more months, the economic growth can easily touch the 9% mark.

Derivatives trading comes in the Open
19 Apr 2010, 0734 hrs IST

It is a hard fact that credit-default swaps, or CDSs, were a major contributor to this financial crisis.

Reverse mortgage: Cash in your home
19 Apr 2010, 0727 hrs IST, Supriya Verma Mishra

Reverse mortgage is a benefit that the title holder of a house property can avail of to finance his retirement. ET takes a closer look.

Mangalam Cement a good bet for mid-term
19 Apr 2010, 0709 hrs IST, Amriteshwar Mathur

Mangalam Cement seems to be a good bet for mid-term considering its strong presence in north India where demand is high.

IPO watch: Talwalkars’ issue fairly priced
19 Apr 2010, 0704 hrs IST, Kiran Kabtta Somvanshi

Though Talwalkars’ issue appears to be fairly priced, there is likely to be limited upside for investors as the next few years’ growth is already factored into its offer price.

Godrej Consumer Products remains an attractive buy
19 Apr 2010, 0658 hrs IST, Kiran Kabtta Somvanshi

Despite the rally,the stock of the growth-oriented Godrej Consumer Products remains an attractive buy for investors with a long-term horizon.

Investors can accumulate Zee News stock
19 Apr 2010, 0652 hrs IST, Rajesh Naidu

With the addition of regional entertainment channels, Zee News will emerge as a one-stop shop for advertisers looking for a national audience across all categories. Investors can accumulate the stock.

Bulls Eye: M&M, GVK Power, Elder Pharma, JSW Steel
19 Apr 2010, 0647 hrs IST

Analysts recommendations: M&M, GVK Power, Elder Pharma, JSW Steel.

Credit Suisse puts 'underperform' on JSW Steel
19 Apr 2010, 0639 hrs IST

Credit Suisse maintains `Underperform’ rating on JSW Steel, however , it increases the target price to Rs 700.

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Daily News Roundup - Apr 19 2010

One link at a time

Big drop for precious metals

Src: ET and DP blog and etc

Morning calls

Heard on Street: Insurance cos lap up NMDC


Insurance companies lap up NMDC stock

Shares of NMDC, a state-owned iron ore producer, have rebounded from recent lows. There is talk that insurance companies, both private and public sector, have lapped up the stock in recent sessions amid speculation that the company could move to quarterly pricing in line with the recently-introduced global practice. Grapevine has it that an insurance major has bought the stock, when it fell to around Rs 283 last week. On Tuesday, the stock rose 1.6% to Rs 303.20.

Bears seen sniffing around SBI counter

With the market on an uptrend, bears are looking for some stocks they can safely short sell, without losing much sleep. After a quick reading, this group appears to have arrived at the consensus that State Bank of India best fits the bill. The recent RBI rule that banks should pay interest on savings deposits on a daily basis, is expected to pinch SBI the most, as the bank has the most number of savings accounts, so feel the bears. Grapevine is that the Old Fox, and the owner of the Big ‘Bang’ brokerage are said to be among those building short positions in the stock.

Religare’s banking unit on a poaching spree

The investment banking and institutional broking arm of Religare Enterprises continues to aggressively ramp up its senior level, even as rivals are amazed at the salaries being offered by the Delhi-head quartered financial services firm. The company, which has in the recent past poached key personnel from foreign brokerages to beef up its talent pool, is once again looking in that direction for its new strategist. The buzz on the Street is that the new hire is the second in command of the research team at a leading investment bank which claims to have trouble getting sleep.

Networth’s Satish Pasari moves to rival firm

Satish Pasari, who heads the institutional business at BSE-listed Networth Stock Broking, is said to have put in his papers, and will shortly be joining a rival firm. The low-profile Mr Pasari is said to have been instrumental in setting up the retail, wealth management and institutional businesses of the brokerage. When contacted, Mr Pasari declined to comment. Networth had recently hired around two dozen professionals in sales, dealing and research to spruce up its presence in the derivative and quant-trading segments.

(Contributed by Nishanth Vasudevan, Santosh Nair, Deeptha Rajkumar & Apurv Gupta)

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Top 5 picks | Mid-term picks


'I'll give India 2 more brands bigger than Ranbaxy'


Top 10 Equity Funds in 2009-10


Nifty to trade in 5200-5400 range

Godrej Consumers should make a new 52-week high: Devangvisaria.com

Mahindra & Mahindra, Escorts look very promising: Angel Broking

This year is going to be exceptional for TVS Motor: Angel Broking

Expect modest correction: CLSA

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New teen CEOs | Gen Y CEOs | World's top 10 billionaires

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Bull's Eye: Stocks to buy today

Everyday, on this special segment, Bull's Eye, CNBC-TV18 brings you trading/investing calls from investment analysts. Today, we bring you calls
from:

Mitesh Thacker, Technical Analyst, miteshthacker.com.
Investment Advisor, SP Tulsian.

Mitesh Thacker, Technical Analyst, miteshthacker.com.

Buy Bombay Dyeing with a target of Rs 630

Buy MTNL with a target of Rs 83
Buy IFGL Refractories with a target of Rs 67
Buy Rel Comm with a target of Rs 186

Investment Advisor, SP Tulsian.

Buy Lloyd Electric with target of Rs 80
Buy ITD Cementation with target of Rs 255
Buy KNR Constructions with target of Rs 182
Buy Essar Shipping with target of Rs 100

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Daily News Roundup - Apr 7 2010

Not in the best of health!

Aditya Birla Chemicals

Src: ET and DP blog etc

Resistance at 5330

Resistance at 5,330

The market pushed to a new high and then eased back to the previous week’s levels. The Nifty closed at 5,290.5 points for a nominal gain of 0.2 per cent while the Sensex was up 0.3 per cent at 17,644 points. The Defty rose 1.1 per cent as the rupee continued to strengthen.

Breadth was neutral and volumes remained on the low side. Smaller stocks outperformed the pivotals. The Junior was up 1.3 per cent while the Midcaps rose 0.7 per cent and the BSE 500 was up 0.7 per cent as well.

FIIs continued to be strong net buyers while domestic institutions remained net sellers in small quantities.

Outlook: The market established a new 52-week high but momentum and background signals were quite weak. There is strong resistance at 5,330 levels with strong support between 5,200 and 5,250. Most likely the market will remain confined to range-trading between 5,200 and 5,350. If volumes remain low, a downside breakout is more likely. A close below 5,200 could push the market down till 5,100.

Rationale: An uptrend that is not backed by volumes or by significant breadth is unlikely to be sustainable. Momentum indicators aren’t strong either. The intermediate trend has been up for nine weeks now and it could be due for a reversal. The major market trend is confirmed as bullish due to the new high, but that doesn’t preclude a reversal in intermediate or short-term trends.

Counter-view: It is a major bull-market. DII selling allied to trader selling has been a dampening factor despite strong FII buying. There could be more domestic money flowing into stocks with the new fiscal commencing. The usual tax-related liquidity crunch may be easing. Intermediate trends can last up till 12-14 weeks if they are aligned with the major market trend, as in this case. The short-term trend isn’t clearly negative. One chart reading would suggest an upside till 5,450 is possible. At the risk of tedious repetition, the issue is volumes. A volume expansion is required to force the market up.

Bulls & Bears: The bulls cycled through various sectors, buying, booking profits and moving on. At various times, financials, energy, real estate, metals, cement, engineering and construction and auto stocks saw support. All the above sectors also saw selling. If this choppy pattern continues, we will see tightly ranged trading with very stock-specific movements.

IT was the one sector that took a hammering through the week and it was by far the worst performer. The CNXIT lost 2.7 per cent with all the majors hit. This is a bad signal since Infosys and TCS will soon be coming through with 2009-10 and March quarter results and 2010-11 advisories. However, there was short-covering ahead of the long weekend. The picture with respect to banks is mixed. Private sector majors like ICICI and HDFC underperformed the PSUs and pulled the BankNifty back.

MICRO TECHNICALS

ABAN OFFSHORE
Current Price: Rs 1,199 Target Price: Rs 1,300

The stock has hit reasonable support and is now picking up volumes as well as seeing a price rise. It has the potential for a pullback till around the Rs 1,300 level. Keep a stop at Rs 1,165 and go long. Increase the position beyond Rs 1,220.

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BHARTI AIRTEL
Current Price: Rs 302 Target Price: Rs 290

The stock has seen heavy selling in the past two sessions. It has a little support at current levels but if it closes below Rs 300, it will probably drop to at least Rs 290 and maybe, lower, till around Rs 280. Keep a stop at Rs 307 and go short. Increase the position below Rs 299. Book 75 per cent profit at Rs 290 and reset the stop to Rs 293.

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RELIANCE INDUSTRIES
Current Price: Rs 1,092 Target Price: Rs 1,070

The stock is hitting resistance at around the Rs 1,100 mark. It is likely to slide till support at around Rs 1,070 and there is a good chance if it closes below Rs 1,070 that it will fall till around Rs 1,020. Keep a stop at Rs 1,105 and go short. Book 50 per cent profit at Rs 1,070 and reset the stop loss to Rs 1,080.

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TCS
Current Price: Rs 807.80 Target Price: Rs 755

The stock has broken several supports amidst heavy selling. It is likely to slide till around the Rs 755-760 mark. Keep a stop at Rs 815 and go short. Increase the short position below Rs 795. Start booking profits below Rs 765. Be prepared for extra volatility.

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TATA MOTORS
Current Price: Rs 777.65 Target Price: Rs 815

The stock has bounced from around Rs 715 and is likely to test resistance in the Rs 815-820 zone again. Keep a stop at Rs 765 and go long. Be prepared for a little extra volatility. Clear the position above the Rs 810 mark.

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Top 5 picks I Mid term picks



Bull's Eye: Cairn, Bhushan Steel, Infosys, DB Corp



Small-cap stocks offer best bet for investors


Stocks to open strong; Nifty resistance seen at 5330-5395

Bull's Eye: Cairn, Bhushan Steel, Infosys Technologies, DB Corp
5 Apr 2010, 0716 hrs IST

Here are the analysts' picks: Cairn, Bhushan Steel, Infosys Technologies, DB Corp.

US: Lehman-style accounting tricks under lens
5 Apr 2010, 0642 hrs IST

The good news this week from the Securities and Exchange Commission is that it’s on the hunt for companies that have used Lehman-style accounting tricks to make themselves look less leveraged than they really are.

High portfolio risk a concern for JM Basic
5 Apr 2010, 0639 hrs IST, Bakul Chugan Tongia

Notwithstanding JM Basic’s outstanding performance in the rallies, its high portfolio risk and inability to cushion fall in the downturn remain a concern.

Japan's $15 trillion not enough
5 Apr 2010, 0634 hrs IST

Every few years, investors get all enthusiastic about Japan. This time the recovery is for real, they argue. This time real change is afoot. This time buy yen-denominated assets and don’t look back, they conclude.

Cost of LIC's Jeevan Surabhi high
5 Apr 2010, 0630 hrs IST, Bakul Chugan Tongia

Though LIC’s Jeevan Surabhi offers a plenty of features,a closer study of the plan reveals that the cost of investing in it is rather high.

Some sectors to look for in the current fiscal
5 Apr 2010, 0629 hrs IST

As the markets touched two-year high and more and more stocks near their higher valuations, it would be difficult to take a smart investment decision.

Nifty's confidence likely to get tested near 5400
5 Apr 2010, 0623 hrs IST, Devangi Joshi

As the Dow Jones Industrial Average is aiming to conquer 11000; a one and a half year high; the Nifty's confidence is likely to get tested near 5400.

Idea Cellular to benefit from expansion in long term
5 Apr 2010, 0616 hrs IST, Ranjit Shinde

While Idea Cellular’s stock may suffer in the short run due to low tariffs and competition, the company is poised to benefit from its recent expansion in the long term.

Slow uptrend persists in markets: Deepak Mohoni
5 Apr 2010, 0616 hrs IST, Deepak Mohoni

All the indices are in an intermediate uptrend which is now nearly eight weeks old.

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'Coking coal prices to remain firm' 05-APR-10 Gujarat NRE Coke, which is the leading player in the Indian met coke industry, has been the key beneficiary of growing demand from the domestic steel industry.

Drilling profits 05-APR-10 Cairn India’s stock has delivered smart returns to investors in the last six months vis-a-vis the BSE Sensex.

Demystifying Elliott Waves 05-APR-10 Elliott waves can be recreated using the geometrical Time Triads.

Resistance at 5,330 05-APR-10 The market pushed to a new high and then eased back to the previous week’s levels.

Downside risk exceeds upsides 05-APR-10 Yet another low volatility, low-volume week passed.

Analysts' corner 05-APR-10 Driven by the 2.3 MTPA greenfield capacity expansion involving captive metallics and HR coils and the expected 10-12 per cent growth in the auto and consumer durables sectors, expect Bhushan Steel’s EBITDA/tonne to increase significantly to $320 in 2011-12 from $210 now.

Markets at a glance 05-APR-10 Key benchmark indices closed higher in a truncated week on account of Good Friday.

Smart Portfolios continues out-performance 05-APR-10 We are currently mid-way through the season 2 of Smart Portfolios .

The healthcare opportunity 05-APR-10 The US healthcare reform bill with its focus on cutting costs is likely to be beneficial for generic and CRAMS players.

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Monthly Report - March 2010

Job report to dictate momentum at Wall Street

Network 18

Daily News Roundup - Apr 5 2010

Positive momentum may prevail

Cairn India to drill 14 wells in 3 blocks by Sept-end

Maruti Suzuki sells a million units in FY10

Mahindra Satyam

Bharti Airtel Ltd

Shoppers' Stop

Proctor and Gamble

Fortis Healthcare

Adani Enterprises

Crompton Greaves

Src: ET and DP blog and Business-Standard