Shares of Tata Communications rose 2.8% to Rs 289.20 on Wednesday in a weak market on speculation the company is close to announcing a joint venture deal with a global telecom player. The market buzz is that the deal is likely to be announced by this weekend. The stock’s rally also fanned a rumour that the path has been paved for Tata Communications to sell its surplus 770- acre land. The “value-unlocking” story of the company’s land has been attributed for any rise in the stock in the past. Brokers said the move can help the company retire debt and also benefit minority shareholders. The stock, which has risen around 5% in the past two days, has largely underperformed the market this year.
This blog is for providing daily news of Corporate Indian Stories, Corporate Results, Equities, MFs, Banking,Insurance, Brokerages Informations, World Business, Venture Capital, Angel Investors, BSchools, MBAs,Jobs, Politics & something Interesting.Our team will be grateful to the owners of various Indian/world/govt sites to refer their sites to get INFORMATION without objection.Request viewers to make verification about the information. Blog is not responsible for any faulty information.
15 July 2010
Morning calls
Shares of Tata Communications rose 2.8% to Rs 289.20 on Wednesday in a weak market on speculation the company is close to announcing a joint venture deal with a global telecom player. The market buzz is that the deal is likely to be announced by this weekend. The stock’s rally also fanned a rumour that the path has been paved for Tata Communications to sell its surplus 770- acre land. The “value-unlocking” story of the company’s land has been attributed for any rise in the stock in the past. Brokers said the move can help the company retire debt and also benefit minority shareholders. The stock, which has risen around 5% in the past two days, has largely underperformed the market this year.
14 July 2010
Stock and Market views
Current Price: Rs 189.5
Target Price: Rs 195
Current Price: Rs 775
Target Price: Rs 760
13 July 2010
Infosys Q1 net falls 2.6 per cent at Rs 1490 crore, raises annual outlook
BANGALORE: Infosys Technologies edged up its forecast on a revival in outsourcing demand from its mainstay financial clients, but its shares fell as markets worried a weak European economy could curb orders. India's No. 2 outsourcer reported a surprise 2.6 percent drop in April-June profit and its sales contribution from Europe fell to about 20 percent from nearly 25 percent a year ago and 23 percent in January-March. ( Watch )
The company, a trendsetter in the country's showpiece IT services sector, added 1,026 staff in April-June, with a total of 115,000 employees in June its slowest pace of addition in four quarters. The lower-than-expected profit and hiring triggered concerns of a slowdown in growth, sending its shares 2.8 percent lower in a flat market. The stock hit a record high on Monday.
The Bangalore-based software giant gained 38 extra clients for the quarter.
Infosys, known for its conservative outlook, has raised its full-year revenue growth forecast in dollar terms in the last three consecutive quarters. The company expects earnings per American depositary share to rise 5.2 percent to 9.6 percent for the year, up from its previous forecast of 4.3 percent to 8.6 percent. The guidance has been revised from Rs 25,017 crore or 10 percent YoY projected at the beginning of this fiscal in April.
"There are still concerns lingering over Europe's debts and if the economy there is weak, consumption should be weak too," said Huey Yang, a fund manager with HSBC in Taipei. Infosys and local rivals Tata Consultancy Services and Wipro have raised salaries by 10 to 20 percent on average to keep staff from being poached by global rivals in a strong market. India's export-driven software services firms, however, face uncertainty on orders from Europe, the second-biggest market for the industry after the United States. Infosys, which counts Goldman Sachs, BT Group and BP among its more than 550 customers, forecast its 2010/11 dollar revenue to rise 19 percent to 21 percent, higher than 16-18 percent projected in April. |
Stock and Market views
Titan Industries: Regaining the lustre
****************************************
Trading desk
Idea
Current price: Rs 69.5
Target price: Rs 63
The scrip has started losing momentum after a steep climb from 53 to the current levels. If it does react from current levels, the downside target could be about 63. However, it's possible that it could run up for another session or two and it's tough to set an upside target. Keep a tight stop loss at 71.5 and go short. Start booking profits below 65. If the stop is broken, go long with a stop at 71 and an initial target of 74.
Infosys
Current price: Rs 2,890
Target price: Rs 2,825-2,925 (Range trade)
Infy made an upside breakout when it closed above 2,825 last Friday. It hit a 52-week high at 2,910 just ahead of Q1 results. Today should see a lot of volatility. Infy has the potential to jump to 2,950, but it could also slide till 2,825. So, the trader should be prepared for swings between 2,825 and 2,950. Use 2,870 as a pivot. If the stock opens above 2,870, go long with a target of 2,925 and a stop loss at 2,860. If it opens below 2,870, set a stop loss at 2,880 and go short with a target of 2,835.
Tata Motors
Current price: Rs 790
Target price: Rs 810
The stock seems to have recovered from an intermediate downtrend but it is hitting resistance at 790-795. If it clears 795, an upside till 810 is possible. Keep a stop at 782 and go long. Increase the position between 795 and 798. Start booking profits above 808 because there will be a lot of selling pressure above 808-810. On the downside, there's a lot of support between 770 and 780.
The target price and projected movements given above are in terms of the next one trading session unless otherwise stated
Analysts' corner
IDBI Bank
Reco price: Rs 120
Target price: Rs 140
The government has agreed to infusion Rs 3,110 crore to aid the bank improve capital adequacy and expansion plans in future. It has also applied for increase in authorised capital, which would further give head room for raising capital for the bank and may come out with FPO in future for any capital requirement. The bank plans to continue its focus on infrastructure development which is traditionally its forte. It also plans for branch expansion of 300 branches to its existing network of 720 branches which will improve its franchise liability. The bank has sound asset quality with provision coverage of 75 per cent, well above RBI limit of 70 per cent. Maintain buy.
— Anand Rathi ResearchTitan Industries
Reco price: Rs 2,501
Target price: Rs 3,000
Volume growth in Gold recovered since H1FY10 and registered nearly 45 per cent volume growth in the fourth quarter of FY10. Expect a healthy 14 per cent volume CAGR driven by stable gold prices and pick-up in consumer discretionary demand. Consequentially, expect sales and earnings CAGR of 20 per cent and 25 per cent, respectively for FY10-12E. Improving realisations, product mix, operating leverage along with improved profitability of other businesses, will lead to 80bps margin expansion in the next two years. Expect Titan to sustain the return on equity at around 40 per cent and witness a 3x increase in free cash flows in FY10-12E. The urban discretionary demand could continue to remain healthy; Titan will be the significant beneficiary of the demand momentum. The stock is trading at 33x FY12E EPS. Maintain buy.
— Prabhudas Lilladher
Pratibha Industries
Reco price: Rs 410
Target price: Rs 508
Pratibha Industries secured a built-operate-transfer (BOT) project on annuity basis from National Highway Authority of India (NHAI). The project involves two laning with paved shoulders of Bhopal-Sanchi section of national highway (NH)-86 for 53.7 km under National Highway Development Programme Phase-III. The company has also bagged three projects worth Rs 210 crore for the construction of residential and commercial complexes. In the first quarter of FY11, the company witnessed a strong order intake, bagging two engineering, production and construction (EPC) orders and two BOT projects, totaling to Rs 477 crore. The order inflow for FY10 stood at Rs 2,685 crore. The stock is trading at 8.7x and 6.5x its FY11E and FY12E earnings, respectively. Maintain buy.
— Sharekhan
*******************************************
Titan Industries - glitter !
Sintex Industries
Aurobindo Pharma, ENIL
Daily Market Outlook - July 13 2010
Check out analysts' take on markets trend in the near future
Piramal Healthcare, Glenmark Pharma
India IIP Numbers
Sterlite Industries, Hindustan Zinc, IDFC, Industrials
Src: ET and DP blog and Smartinvestor.in
12 July 2010
Know a Web/blog
http://www.niftychartsandpatterns.blogspot.com/
http://www.twitcalls.in/
http://www.tradingontechnicals.blogspot.com/
Spain Crowns the FIFA World Cup Title
Champions of Europe and now champions of the world, Spain captured football's Holy Grail for the first time with a 1-0 victory over the Netherlands thanks to Andres Iniesta's 116th-minute strike at Soccer City.
The solitary goal came with penalties looming as substitute Cesc Fabregas played in Iniesta and the little midfielder drove emphatically across Maarten Stekelenburg and into the far corner. With this victory – their fourth successive single-goal win in South Africa – Spain became the eighth name on the FIFA World Cup™ Trophy and also the first European team to have triumphed on a different continent. For the Netherlands, who lost defender John Heitinga to a red card in extra time, there is only the heartache of another tale of what might have been after they completed a hat-trick of Final losses.
This was a match preceded by much talk of two like-minded footballing cultures, of the influence of Dutchmen like Johan Cruyff and Rinus Michels, of 'tiki taka' and Total Football. In many ways, as the first 116 minutes showed, it was also a case of the irresistible force versus the immovable object. The Dutch had won 14 straight games to get to the Final, in qualifying and the tournament proper, and Spain 15 out of 16, their only slip the defeat by Switzerland in their first game here in South Africa.
It was the Spanish found their stride first, living up to their pre-game billing as favourites. Vicente del Bosque's side dominated possession and created the early chances. With the Dutch penned inside their half, goalkeeper Stekelenburg had to make a save after five minutes, diving low to stop a Sergio Ramos header from Xavi's free-kick from the right. Gerard Pique looked poised to follow up only to be denied by a combination of Joris Mathijsen and Dirk Kuyt.
Ramos came again in the tenth minute, beating Kuyt on the right and driving in a low centre that Heitinga deflected behind. From the corner came another scare for the Netherlands. Xavi played the ball back to Xabi Alonso whose cross went beyond the far post to David Villa but the in-form No7 sliced his volley into the side-netting. After those near things, however, both defences got on top with none of the flair players on either side able to take a grip on proceedings. Instead the yellow-card count began to rise with Nigel de Jong becoming the fifth player in Howard Webb's notebook by the time the half-hour mark arrived.
With the orange sections of the 84,490 Soccer City crowd finding their voice, Bert van Marwijk's men almost gave them something to sing about from a corner in the 37th minute. Robben rolled the ball to Mark van Bommel on the edge of the box and although he failed to make a clean connection he unwittingly diverted the ball on to the unmarked Mathijsen but the defender missed his kick. As half-time approached, Iker Casillas had barely had a save to make but entering stoppage time, he had to be alert to deny Robben at his near post as a spell of Dutch pressure ended with the winger spearing in a low shot from the corner of the box.
Puyol, Spain's semi-final matchwinner, showed his aerial threat once more minutes after the restart when he rose above Heitinga and headed to the far post but Joan Capdevila failed to make contact. The game was gradually opening up and the Dutch spurned a golden opportunity in the 62nd minute when Wesley Sneijder sent Robben running clear. Casillas came to Spain's rescue, deflecting the shot behind with his right foot when falling the wrong way.
Spain coach Del Bosque had already sent on Jesus Navas for Pedro on the hour and the winger helped pick a hole in the Dutch defence in the 70th minute. Xavi sent him flying down the right into the box and when Heitinga failed to deal with Navas's low cross, the ball fell to Villa who looked odds-on to score only to see his effort deflected behind. Ramos was equally profligate after 78 minutes when he headed over a Xavi centre when unmarked, after Villa had forced another corner.
Spain were looking the more likely winners and it took Sneijder of all people to foil Iniesta with a smart tackle after his jinking run into the box. Yet Robben's pace was a persistent threat and the Oranje No11 almost embarrassed Puyol in the 82nd minute, speeding clear of the Spain defender when second-favourite to reach a through-ball. Resisting Pique's attempt to tackle too, he was foiled only by Casillas, the captain saving at Robben's feet as the Dutchman tried to round him.
Extra time began with opportunities for Spain. Xavi failed to connect when well positioned and when the ball ran to Villa, his shot went wide off an orange shirt. Substitute Fabregas then broke clear on to Iniesta's through-ball but was foiled by Stekelenburg. Mathijsen headed wide from a corner but like waves, Spanish attacks kept rolling on to the Netherlands back line and Navas was close with a shot deflected into the side-netting.
Fernando Torres replaced Villa midway through the extra period and Spain gained a man advantage four minutes later with Heitinga's dismissal for pulling back Iniesta on the edge of the box, the offence earning him a second yellow. Iniesta would not be denied, however, and his fine late strike put Spain into the history books and left a Dutch dream shattered.
2010 FIFA World Cup™: Final- Add to iGoogle | |||||||||||||||||||||||||||||||
|
Photogallery
ECSTASY
The Spanish team pose for photographers with the World Cup trophy. (AP Photo)
11 July 2010
IOC, RIL among 8 Indian cos in Fortune 500 global list
EW YORK: Eight Indian companies, including oil major Indian Oil Corporation and Mukesh Ambani-led Reliance Industries, have made the cut in the list of the world's 500 largest companies compiled by Fortune.
The league of 500 elite companies for 2010 is topped by US retailer Wal-Mart Stores, followed by oil giant Royal Dutch Shell and another oil major, Exxon Mobil, in that order.
Besides IOC and RIL, the other Indian companies in the list are steel-maker Tata Steel, auto company Tata Motors, oil entities Bharat Petroleum, Hindustan Petroleum and Oil & Natural Gas and public sector bank SBI.
Tata Motors has made an entry into the list for the first time this year, while seven other Indian entities, which were part of the list in the previous year as well, are also featured in this list.
The list also features Citigroup, ArcelorMittal, Pepsico and Motorola, four companies led by people with Indian roots.
IOC has the highest rank of 125 among the featured Indian companies, followed by RIL at the 175th spot, SBI (282), BPCL (307), HPCL (354), Tata Steel (410), ONGC (413) and Tata Motors (442).
According to the magazine, IOC had revenues to the tune of USD 54.28 billion, RIL USD 41.08 billion, SBI USD 28.21 billion, BPCL USD 26.59 billion, HPCL USD 23.88 billion, Tata Steel USD 21.58 billion, ONGC USD 21.44 billion and Tata Motors USD 19.5 billion.
Vikram Pandit-led Citigroup is at 33rd place, with revenues of USD 108.78 billion, while NRI billionaire L N Mittal's ArcelorMittal bagged the 99th position with revenues worth USD 65.11 billion.
Pepsico, run by Indira Nooyi, was ranked at 171st place with revenues of USD 43.23 billion and Sanjay Jha's Motorola is at the 391st place, with USD 22.06 billion in revenues.
Interestingly, American companies have cornered 139 seats in the list, followed by Japan with 71, and then China, with 46 seats. This year, there are 12 Fortune Global 500 companies run by women, compared to 13 last year.
The magazine said that Wal-Mart Stores had revenues to the tune of USD 408. 21 billion, while Royal Dutch Shell and ExxonMobil raked in revenues worth USD 285.12 billion and USD 284.65 billion, respectively.
Others on the list include BP at fourth place, followed by Toyota Motor (5th), Japan Post Holdings (6th), Sinopec (7th), State Grid (8th), AXA (9th) and China National Petroleum (10th.)
**********************************
Market and Stock Views
Infosys numbers to set market pace this week
Costly but good stocks for investors
F&O Outlook: Indices may hit new 52-week high
Even Paul, the clairvoyant octopus could not have had a hundred per cent hit-rate had he been asked to predict stock market movement. Who could have expected global markets to shake off the despondent mood, in which they were wallowing ...
STOCKS: Zee Entertainment: Buy
Investors with a two-year horizon can buy the shares of broadcast player Zee Entertainment (Zee), given its strong presence in the regional and national (Hindi) general entertainment space. The company is well positioned to drive its ...
STOCKS: Mahindra and Mahindra: Buy
Investors with a long-term perspective can consider an exposure in Mahindra and Mahindra (M&M). The company ended FY-10 on a strong note, posting a growth of 40 per cent in revenues and a whopping 120 per cent in profits over the ...
STOCKS: Lupin: Hold
Shareholders can remain invested in the stock of Lupin. Though the stock price has more than doubled since the last ‘buy' recommendation in August 2009, the sustained traction in its formulations exports and an attractive pipeline ...
STOCKS: Bank of Baroda: Buy
Investors with a two-year investment horizon can consider fresh exposure to the stock of Bank of Baroda. The bank may continue to grow at higher-than-industry average rate (on the loan book front) and post strong profit growth in relation to ...
Not content with merely catching up, some mid-cap FMCG stocks have actually moved into a premium over their larger rivals in recent months. At current market prices of Rs 131, Marico Industries now trades at a PE multiple of 33 times its ...
TECHNICAL ANALYSIS: Query corner: NTPC in a long-term uptrend
Please provide the short- and medium-term prospects for Mahindra & Mahindra. ...
TECHNICAL ANALYSIS: Sizzling Stocks: Idea Cellular (Rs 66.8)
Idea Cellular turned red hot on Friday following the earnings upgrade by investment bank Credit Suisse. The bank upgraded the stock's rating to outperform from underperform and raised its target price. The stock advanced 13.3 per cent on ...
TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,055.8)
Since June 14, RIL has been trading sideways in a narrow band between Rs 1,050 and Rs 1,100. Last week's movement was with in this range and the stock witnessed trivial loss of Rs 12 for the week. The volume traded was below average. ...
Hindalco (Rs 149): The stock has been on a recovery mode since mid-June and has bounced back from a key support level of ...
EVENTS: Heard in the studio
Gloria: The usual confused hither-thither movements of the market through the week. Net-net, it ended reasonably well though, with the Sensex up more than 370 points from the week before. At 17,833, 18k seems quite within ...
STOCK MARKETS: Trading terms
Exponential Moving Average: An exponential (or exponentially weighted) moving average is calculated by applying a percentage of today's closing price to yesterday's moving average value. These place more weight on ...
3 weekly technical picks from Mansukh
Jindal Saw: Buy & average on dips HDFC Sec
Thermax, Reliance Power, State Bank of India, Media Sector
Petronet LNG LTd
Weekly Wrap - July 10 2010
BPCL Ltd
Weekly Technical Report - July 10 2010
Weekly Report - July 10 2010
Weekly Calls - July 10 2010
Monnet Ispat
Src: ET and DP blog and Smartinvestor , Businessline and etc
09 July 2010
A litmus test for the markets
A late surge in US stocks, allowed the Dow to post a back-to-back triple digit rally.
The Dow Jones Industrial Average added 121 points at 10,139. The S&P 500 gained 10 points at 1070, while the NASDAQ finished up by 16 points at 2175.
That sets the tone for our markets to open higher in the morning but it is going to be a litmus test for the markets. 5350-70 regions will be full of booby traps.
US markets were bolstered by a larger-than-expected drop in initial weekly jobless claims and a buoyant June retail sales data (Same–store sales). Obviously the sales look better because two holidays, the Memorial Day holiday and The Independence Day holiday sales have been added in June, which were not a part of the June sales last year. This apart, the Same-store sales numbers have to be taken with a pinch of salt. In one of the weekend articles, we will explain why.
The Bank of England kept its base interest rate at a record low of 0.5% for the 17th consecutive month and continued to leave its asset-purchasing program on hold. The European Central Bank also held rates steady.
Earlier in the day, International Monetary Fund raised its 2010 global growth forecast to 4.6% from 4.1%. The IMF said that while economic recovery will likely be faster than expected, Europe's debt crisis could stall the rebound.
The IMF also raised India’s economic growth forecast for 2010 to 9.4%. IMF’s forecast has been received well because GDP growth during the March quarter was only 8.6%. It implies that growth in the rest of the quarters will be much higher.
Today being a Friday, the bulls will like the week to close on a strong note. But a crossing of the important levels like 5366 looks rather premature. The markets will like to read the hand out by Infosys first, before it makes up its mind. For that we will have to wait till next week.
The bottom line is, unless the Nifty crosses the 5400 humps, don’t be in any hurry.
Godrej Industries and Gail look better placed for the day.
Disclosure : No holdings or trading positions in stocks mentioned or recommended to clients
Src: HDFCSEC
************************************
Heard on the Street: Top insurer sells shares in D-Street favourite SBI
State Bank of India (SBI) remained a favourite among investors on Thursday, despite concerns over hardening interest rates.
According to the market buzz, there was some churn in the stock among foreign institutional investors, driving up the stock by 2.3% to Rs 2,356.75 on higher-than-average volumes in a firm market on Thursday.
But domestic institutions took a contrarian view on the stock, as it is felt that upsides are likely to be limited from these levels. Brokers said an insurance major was a seller in the stock on Thursday.
It is also speculated that the stock has been accumulated by a group of operators as a trading bet in the near-term. The stock is expected to outperform other bank stocks, brokers said.
Vadilal Inds gains 13% as takeover talk triggers rally
Shares of Vadilal Industries, a dairy product and food-processing company, have risen over 40% in less than two weeks, on market talk that the company could be a possible acquisition target for any large FMCG player looking to consolidate its position in the sector.
On Thursday, the stock rose 13% to close at Rs 144.95, after hitting a 52-week high of Rs 149 intra-day. Vadilal Industries’ revenues have improved steadily over the past few years, helping it gain a decent market share in milk and dairy products segments.
Dealers tracking the counter rule out the possibility of a hostile takeover, since the promoters own 61% in the company.
The company reported an earnings per share of Rs 8 for FY10. While the share price has more than trebled over the past one year, institutional investors have not shown any interest so far.
(Contributed by Nishanth Vasudevan & Vijay Gurav)
**************************************
May go to 4200 if Nifty breaks 4900: Daryl Guppy
Commercial Vehicles
Reliance Industries, Asian Paints, Tata Chemicals
Daily Market Outlook - July 9 2010
Daily Technical Report - July 9 2010
Src: HDFCSEC< ET and DP BLOG and etc
08 July 2010
Morning calls
SHANGHAI: Investors should sell bonds and buy commodities like silver and rice as a “refuge” as the world economy may continue having problems, Jim Rogers, chairman of Rogers Holdings said.
“Bonds are not a good place to invest in. You should own commodities because that’s your only refuge,” said Mr Rogers, who predicted the start of the global commodities rally in 1999. Gold has gained 8.3% this year, leading advances in precious metals, as investors seek haven assets to protect their wealth amid concerns that global economic recovery will falter. Still, commodities overall capped their worst quarter in more than a year on investors’ concern that slower growth from China to the US will sap demand. The best place to be is in commodities and other natural resources, including precious metals like silver, platinum and palladium as supply shortages are already developing, said Mr Rogers, who co-founded the Quantum Hedge Fund in 1970. Gold prices will rise to more than $2,000 per ounce, said Mr Rogers, without giving a time-frame. Bullion for immediate delivery declined 0.4% at $1,187.85 an ounce. It reached a record $1,265.30 on June 21. While gold has been trading at an all-time high, silver remains 60 to 70% below its peak and is a better investment, he said. Silver reached an all-time high of $50.35 in New York in 1980. Silver for immediate delivery fell 1% to $17.6413 an ounce. Platinum dropped 0.6% to $1,507.68 and palladium declined 1.2% to $433.35. Still, agricultural commodities are better than metals as prices are “very depressed,” he said, pointing to sugar which is 75% below its all-time high in 1974. Raw sugar for October delivery slid 1.2% to 16.49 cents a pound on ICE Futures US in New York. It reached a record of 66 cents in November 1974. “Not many things are 75% cheaper that 36 years ago, but that’s true of sugar,” Mr Rogers said. “Agriculture commodities are desperately cheap compared to 20, 30, 40 years ago.” Rice futures on June 30 touched $9.55, the lowest price since October, 2006, on rising production and declining demand. The contract for September delivery gained 0.7% to $9.935 per 100 pounds on the Chicago board of trade in Shanghai. |
|
Derivatives trade to get cheaper as Sebi halves exposure margins
MUMBAI: Trading in stock futures and options (F&O) contracts is set to get cheaper from July 15. The Securities and Exchange Board of India (Sebi) on Friday announced a cut in exposure margins in stock derivatives to 5% from 10% in a move to lift the sagging fortunes of these contracts.
“The step is aimed at bringing back retail traders, who are more impacted by higher costs of contracts. With the market trading range-bound in the past several weeks, the current exposure margins made it difficult to make money,” said Amit Gupta, derivatives strategist at retail broking firm ICICIdirect.
F&O margins comprise initial or SPAN and exposure margins. Initial margins are calculated by a software called SPAN, which is revised 6 times a day.
“As there is nothing that can be done to SPAN margins, the best way to encourage retail participation is by reducing exposure margins. With smaller lot sizes and more mid-cap stocks in the F&O list, there is a possibility that retail traders may come back to stock futures and options,” Mr Gupta said.
Sebi last revised exposure margins in October 2008 during the financial market crisis, following the Lehman Brothers collapse. Then, the market regulator increased exposure margins for stock derivatives to 10% from 5% to discourage retail traders from betting on stocks in volatile markets. Since then, retail traders mostly used the less-riskier index options to bet on the market.
“The step will boost intra-day volumes in stock derivatives. Traders have been loaded with costs such as SPAN margins and even mark-to-market margins in case of losses. So, a cut in exposure margins would be of great relief to them,” said Alex Mathews, head-research, Geojit BNP Paribas Financial Services.
Total number of contracts traded in stock futures and options in 2009-10 (April 2009-March 2010) were about 16 crore compared with 23.5 crore in 2008-09. In the current financial year starting April 1, 2010 to date, total number of contracts in stock futures and options was over 4.5 crore.
F&O traders say alternating bouts of volatility and range-bound movement in share prices for the past many months has led to most retail investors cutting down exposure to stock and index futures. This has set off a vicious cycle, where low liquidity further discouraged traders from betting on futures. When liquidity is low and prices move in a narrow range, traders are unable to exit their positions quickly enough and often end up suffering a loss.
India Banks
BGR Energy Systems
Daily Market Outlook - July 8 2010
TIL
Daily Technicals - July 8 2010
SGX Nifty jumps very high
Voltas
Heritage Foods
DB Corp
Essar Oil, Greaves Cotton, Jubilant Organosys, Persistent Systems, Dewan Housing, Uflex
Bharat Forge: Set to gain from revival
Analysts' corner
***********************************
Trading desk
Reliance Capital
Current Price: Rs 760
Target Price: Rs 785
The stock appears to have bottomed out at least temporarily and should see an uptrend over the next two or three sessions. The initial targets would be in the range of 785-790, though the closing price today may not be able to sustain above 785. Keep a stop at 752 and go long. Increase the position between 765 and 768. Start booking profits above the 785-mark.
Sesa Goa
Current Price: Rs 347
Target Price: Rs 330
The stock had an aborted uptrend on Tuesday, hitting resistance at 355. It has a downside support till around the 340-mark. If 340 is broken, the stock could fall till 330 — but this will probably take more than one session. Keep a stop at 350 and go short with an initial target of 340. If you can hold overnight, book partial profits at 340 and hold the residual position with a new target of 330 and a reset stop loss of 345.
DLF
Current Price: Rs 279
Target Price: Rs 265
The stock has broken a key resistance at the 280-281 mark. It has a potential target in the 260 zone, but has supports at 265 and at 272. It is likely to break the first support at 272 and test the 265 support. Keep a stop at 285 and go short. Increase the position between 270 and 272 and reset the stop loss to 275. Start booking profits between 265 and 267.
The target price and projected movements given above are in terms of the next one trading session unless otherwise stated
Src: HDFCSEC, ET and DP blog and Smartinvestor