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18 July 2010
Stock and Market Views
16 July 2010
Morning views
Insurance Big Daddy turns seller in index stocks THE Big Daddy of insurance has been a seller in the index stocks in the past one week, keeping up to its reputation of being a seller in a rising market and a buyer in a falling market. Brokers said they have received selling orders from the Big Daddy in large numbers of late, mainly in oil & gas, banks and auto shares. In the past week or so, the institution has been a seller in SBI. But the buzz is, it has been a buyer in select mid-cap bank stocks. FIs make a beeline for LIC Housing, stock up 7% SHARES of LIC Housing Finance rose 7% to a 52-week high of Rs 1,073.40 supported by heavy volumes in a subdued trading session on Thursday. According to dealers, domestic mutual funds and select FIIs were heavy buyers after the company posted better-than-expected quarterly numbers. They said fund managers have been buying housing finance companies of late, mostly for trading gains. Some analysts are cautious about the outlook of housing finance companies, as firming interest rates are expected to raise their borrowing costs, thereby affecting margins. Oil cos tank as govt fails to free up diesel prices SHARES of state-owned oil marketers HPCL and BPCL crashed 6% on Thursday after the government said it will not deregulate diesel prices. The sudden about-turn in fuel policy has caught most Dalal Street stalwarts on the wrong foot. All these players had bought huge chunks of these stocks over the past couple of weeks, convinced that the sector was due for re-rating. The top guns who are long on HPCL, BPCL and IOC include the Rar(e)ing Bull, Old Fox, the high-profile second-in-command at a listed broking firm and a suave broker who shares his surname with the Old Fox. The problem now is that most of the top names are bullish on these stocks. So if they turn bearish, who are they going to sell their holdings to? Godrej Properties bucks downtrend in realty stocks AT A time when most property stocks are being cold-shouldered by fund managers as well as market operators, Godrej Properties hit a record high of Rs 691.40 on Thursday. Dealers tracking the counter say there is good interest in the stock, but at the same time, they point out that low liquidity is having a multiplier effect on the share price. A suave BSE broker, who shares his surname with the Old Fox, is said to be one of the big buyers of the stock. (Contributed by Harish Rao & Santosh Nair) |
Piramal Healthcare
Maruti Suzuki
Voltamp Transformers, HDFC, Infotech Enterprises, Bajaj Auto
TCS - Strong Results
Colgate - Rich Valuations
Axis Bank
Daily Market Outlook - July 16 2010
Market View - July 16 2010
Src: ET, Smartinvestor, DP blog and etc
15 July 2010
Is it Possible????Dow Headed to 5000 -Charles Nenner Says
Get Out While You Can! Dow Headed to 5000, Charles Nenner Says
Posted Jul 15, 2010 07:30am EDT by Peter Gorenstein in InvestingQ1 Results: | http://economictimes.indiatimes.com/News/News-By-Company/Earnings/earnings/75410.cms |
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
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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
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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 | |||||||||||||||||||||||||||||||
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Photogallery
ECSTASY
The Spanish team pose for photographers with the World Cup trophy. (AP Photo)