Heard on the Street

Heard on the Street

Blame it on BoR merger, ICICI Bank sheds 3% Shares of ICICI Bank shed 3% to Rs 842.20 on Monday, leading the decline in banking stocks. According to dealers, a foreign institutional investor, which bought a sizeable chunk in the bank in the past month or so, was a seller on the stock. ICICI Bank has been in news recently after its decision to merge Bank of Rajasthan with itself, a move that was not appreciated by many in the market. Investors fear the move could hurt the bank’s asset quality. PSU insurer buys Essar Oil on price deregulation hopes A large PSU insurance major is believed to have been mopping up shares of Mumbai-based Essar Oil in the past few sessions. Brokers said that the insurance firm was a big buyer in the stock on Monday, though the stock closed 1% lower at Rs 127. According to dealers, market participants were anticipating some positive development on deregulation of fuel price. This could have helped the company in getting some relief in expanding their fuel retailing. The company has recently announced its plans to raise up to $300 million by issue of FCCBs in one or more tranches, on preferential offer basis to promoter company, Essar Energy Holdings to part finance its scaling up of Jamnagar refinery capacity by 25% to 3,75,000 barrels and increasing its complexity. Fairfield gains 14% on delisting hopes Shares of Fairfield Atlas rose 13.9% to Rs 55 on Monday on speculation the recent government rules on minimum public shareholding requirement would prompt the company to consider delisting. Promoters hold 83.91% in the company. Reliance Capital Trustee is one of the key FIs in the company with a 8.46% stake. The buzz is that Fairfield’s promoters are not in favour of diluting their stake in the company for meeting the new rules, while Reliance Capital is unwilling to sell its stake in an open offer, if any. Grapevine has it that Reliance Capital is not ready to tender shares around this level, as its average purchase price of this stock has been ‘much higher’. In 2007, TH Licensing Inc, the company’s promoters, had made an open offer to buy all of public shareholding at Rs 81 per share, but was not successful as Reliance Capital did not participate in the open offer. Contributed by Harish Rao, Apurv Gupta & Nishanth Vasudevan

If market goes below 4950, its a confirmed downtrend: Deepak Mohoni

Mid-term picks of the day

Top 5 picks | Mid-term picks

Sensex takes a knock on global hangover

Wall Street tumbles, S&P's lowest close in 7 months

New 'public float' norms spark MNC delisting fear

BGR Energy Systems

Mphasis

KPIT Cummins

Cox and Kings

GSPL

Rajesh Exports

Tulip Telecom

TV18 Ltd

Onmobile Global

BHEL

Stocks with Public Holding less than 25%

Oil and Gas Sector

Dishman Pharma

Tech view: Global cues hold more weight

TRADING DESK

Next few sessions could be choppy


Src: ET and DP blog and Smartinvestor.in

Euro crisis may dampen market sentiment

Euro crisis may dampen market sentiment

MUMBAI: Shares could weaken on Monday and then trade in a range of around 200 points on the Nifty for the rest of the week, say brokers. The latest bad news from Europe, this time from Hungary, jolted world markets on Friday. US shares tumbled after the unemployment number for May was higher than market estimates. These developments will affect the sentiment for Indian shares, which have had a good run over the past few sessions. Just when it seemed that the sovereign debt crisis in Greece was under control, the new government in Hungary said that its public finances were in a bad shape than estimated and that the country had only a slim chance of avoiding a debt crisis. “Sentiment rather than fundamentals will drive share prices in the short term,” said Apurva Shah, vice-president & head-research, institutional equity, Prabhudas Lilladhar. “India is much better placed than most other economies, but its shares can not be immune to the turmoil in world markets,” he added. Brokers expect foreign funds to persist with their selling-spree should the situation in Europe worsen. In May alone, foreign funds net-sold around Rs 9,700 crore. Technical analysts expect the Nifty to face resistance in the 5150-5175 band, but don’t see the index falling below 4,800 in the near term. The meteorological department’s (Met) prediction of a normal monsoon and expectations of healthy corporate earnings for the current quarter will cushion the fall, market participants said. Benchmark indices will take cues from the Index of Industrial Production (IIP) due this week. Also Read → FIIs shift from equities to debt, buy bonds worth Rs 2,450 cr → IPO-bound companies may take private-equity deals detour → Sebi goes slow on licence to funds from Mauritius → NSE set to launch futures contract in S&P 500 “We will see double-digit growth in manufacturing and the overall industrial growth is expected to be good, because of favourable base effect,” says Sujan Hajra, chief economist, Anand Rathi Financial Services. Investors expect shares of fast-moving consumer goods (FMCG) and pharmaceutical companies to be in demand, as these stocks are relatively steady in a volatile market.

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Top 5 picks | Mid-term picks

New public holding norms to hit pricing of large issues

Analysts' Picks: United Phosphorous, Sun TV, M&M, Punj Llyod

Reliance Communications board clears 26% stake sale

Q4 net profit of 2,700 cos up 94%

Q4 results review: Check out how sectors will perform

Is another financial crisis on the anvil?

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SAIL

Compact Disc

Patel Engineering

Weekly Newsletter - June 6 2010

Weekly Newsletter - June 6 2010

Punj LLoyd

Praj Industries

India Strategy - June 6 2010

ONGC

BGR Energy Systems: Buy

TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,030.8)
Reliance Industries was at the centre of action last week as it collapsed to a low of Rs 840 on Tuesday making traders' heart skip a beat. Since the freak trade was remedied instantaneously, it will not have any bearing on the graph or ...

TECHNICAL ANALYSIS: Sizzling Stocks: Reliance Media World (Rs 61.7)
Investors tuned in to Reliance Media World as the buzz that the company was forming a joint venture with US based CBS Corp to launch television channels circulated in the market. The stock gained over 25 per cent from the previous week's ...

TECHNICAL ANALYSIS: Stock Strategy: Consider shorting ICICI Bank
ICICI Bank (849.5): This stock has been in a downtrend with occasional pull back since the peak recorded in April. The outlook appears negative for this future as long as it trades below Rs 907. It has immediate support at Rs 826. A ...




Src: Economictimes. DP blog and etc

Morning Calls

Nifty may get strong support at 4800 level

Once again consensus has failed in the market. The 4200 and 4300 put build-up, especially after a buy figure of FIIs in the index options segment, has raised many eyebrows. Shorting was certainly not advisable around 4800, as it was a strong support, but we didn’t recommend buying either. There was a strong wave of negative sentiments in the market, as even from a bounceback to 5100 during end-May didn’t result in a significant fall in implied volatility. Then, we had another 200-point fall and now back to 5100. But this time, IVs have fallen to 23.95%. These changes will certainly divide the participants on where the market is heading. We still belong to the sell on the rise camp. In this bounceback, too, we are not seeing any meaningful formation of long positions or a significant cash-based buying by FIIs. There is still a lot of room in the form of open interest, at least in index futures to form fresh shorts by participants and still it won’t be in the oversold zone. We have seen a lot of selling calls of strike 5100 and 5200, which have not seen any significant unwinding in them. This zone is a strong resistance. So, we won’t suggest any buying in the index now. Though not in the beginning of this series, but now, 4800 is emerging as strong support. As of now, it seems that the market may get stuck into the range of 4800-5200 and we are heading towards a higher side of the range. For next few days, we expect the market to consolidate and in this phase of consolidation, mid-caps and small-caps may outperform major indices. Siddarth Bhamre, Head-Equity Derivatives, Angel Broking

Heard on the Street

Some foreign institutions, in the past few sessions, have been buyers in telecom shares, which have been among the best performers in the week so far. The market buzz is that a US fund, which has stakes in United Spirits and Cox & Kings, bought sizeable chunks of Idea Cellular recently. Idea shares closed at Rs 55.85, up 4.5% on Thursday. Some foreign investors, including the fund managed by a star fund manager of yesteryear — before he was tripped up in a regulatory probe — are speculated to have bought shares of Bharti Airtel recently. On Thursday, the stock rose 1.2% to Rs 273.50. Brokers said many investors are of the view that telecom stocks are unlikely to fall below their lows touched recently. With the buzz of a stake sale in Reliance Communications growing louder, investors are betting that telecom shares will command better valuations hereon. Pvt insurers lap up ONGC ahead of EGoM meet Priavte insurance companies are believed to have mopped up shares of Oil and Natural Gas Corp (ONGC) on Thursday. The stock rose 2.4% to Rs 1,210.75 on Thursday. The buying has come ahead of the meeting of the Empowered Group of Ministers (EGoM) on June 7, when oil price deregulation could be discussed. The market is betting that the government could decide on deregulating oil prices, if not fully. ONGC is believed to have met investors and trade on Thursday, a day after the bulk deal of 39.2 lakh shares. The stock closed at Rs 560.10, down 0.8%, with less than 50,000 shares being traded on both exchanges combined. On Wednesday, GPC Mauritius II LLC, a subsidiary of Greater Pacific Capital Partners, had sold its 4.8% stake in the company to a clutch of institutional buyers. Only GMO Emerging Market Fund’s name (the fund bought 7.8 lakh Torrent shares) showed up in the disclosure on the BSE website. Dealers tracking the stock say the Icy Icy Mutual Fund, Kala Patthar Mutual Fund and the South-based Satyam Shivam ... were the other prominent buyers of the stock. However, since these fund houses bought shares across various schemes, their names did not show up on the buyer’s list. Contributed by Nishanth Vasudevan & Santosh Nair

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Mid-term picks | Top 5 picks of the day

HUL plans buyback for boosting stock price

Tech view: Make or break day for markets

TRADING

EMCO

Kalpataru Power

IDFC

Kernex Microsystems

Reliance Industries, ONGC

Ashiana Housing

IVRCL Infrastructure

Tantia Constructions

GSPL Limted

Sterlite Industries

Hotel Leela

Src: ET, DP blog and etc

Derivative Calls

We Wish to Start a New Initiative DERIVATIVE CALLs for Investors and Traders.. But this is purely sourced from Outside Websites, Medias, and Other Brokerages... All of you Know DERIVATIVE is High RISK also a High REWARD one.. Loss Will be More if Not keeping Strict SL.

So Kindly DO all the calls Given in DERIVATIVE Segment with STRICT STOP LOSS.

Becos HIGH RISK and HIGH REWARD..

Take these calls with Own Financial Risk/Proper Guidance.



Derivative Call:

Buy FINANTECH FUT(1354):
Tgt 1460-1612 SL 1285(Lot 150)

Buy BGR FUT(656):
Tgt 680-720 SL 635 (Lot 400)

Risk:Rs 8k-10k/Lot.



Do these Calls with Proper Guide..

Nifty Support at 4900; Below that 4800-4700 Possible

Nifty trade may remain range-bound

The Nifty June series’ open interest is about 2.83 crore shares, slightly greater than the open interest of the May series on the first Tuesday level of 2.78 crore shares.

Overall rollover data indicate the relatively poor level of participation from market participants. However, global cues will continue to influence domestic indices.

A move below the lower support of 4900 may see the index decline to 4700 levels. The Nifty basis remained in the discount and finally closed at a discount of 30 points. However, 15 points from it can be attributed to declared dividends which go ex-dividend in June. Put-call ratio of open interest increased and closing at 1.36 levels, indicating put writing in OTM strikes. Options’ open interest saw an addition of positions in OTM strikes.

The option concentration shifted to the 5100-strike call option with an open interest of above 58 lakh shares followed by 4800-strike put option with above 58 lakh shares in open interest. Above option concentration indicates toward the range of 4800-5100 in the near term.

The implied volatility (IV) of call options increased and closed higher at 26.50% on Tuesday, while the average IV of put options ended at 28.65% indicating some buying interest in ATM put options.

The Nifty is expected to remain in the range of 4800-5100 and only a breach below this range will drag the index to lower support of 4700. Sectorally realty and metals stocks observed short positions, while banking and sugar has seen long unwinding and Fertiliser stocks has seen long addition.

By Nitin Murarka, Head, Derivative Strategy, SMC Global.


Top 5 picks of the day | Mid term picks

Trading Calls

Post non-compete clause, RIL to invest in power sector

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Heard on the street

TRIL rises as Siemens seen keen on stake buy Market talk that power major Siemens India is likely to pick up a stake in Transformers & Rectifiers (India) (TRIL) has seen the company’s share price move from Rs 405 on May 27 to its current level of Rs 416 on Tuesday. The buzz on Dalal Street is that law firm Amarchand Mangaldas is doing the due diligence for the company. When contacted, TRIL’s CMD Jitendra U Mamtora denied any such move and termed it as market speculation. An email sent to Siemens India elicited the response that the company does not comment on market speculation. Analysts maintain that TRIL, which recently expanded capacity by three times, is expected to register good growth for FY10-11. The company has a decent order book and the company’s growth will be driven by large-scale demand for power and distribution transformers in India actuated by the huge power generation capacity addition plans. Tech Mahindra gets support from a local MF Institutional buying interest was seen in select IT firms in a falling market on Monday. The buzz is that a domestic mutual fund owned by a large business conglomerate in the financial services sector was a buyer in Tech Mahindra. On the BSE, the stock closed at Rs 637.65, up marginally by 0.20% supported by above average volumes, but has lost more than 15% in the past one month. Analysts maintain that sustained volume traction from non-British telecom clients would generate higher revenues and margin improvement, coupled with positive news flow on client retention, new deal wins and favourable settlement with Upaid, provide comfort on the future business prospects. The stock is also trading at attractive valuations compared to peers and has a “buy” from most broking firms. Ratnesh Kumar may join StanC as equities head There is more churn taking place in the local broking industry. Ratnesh Kumar, CEO of institutional equity at Anand Rathi, is said to be moving out of the firm. He is tipped to join Standard Chartered as the head of equities. The buzz is that a few senior colleagues of Ratnesh Kumar at Anand Rathi Securities may also follow him. Ratnesh Kumar was roped in by Anand Rathi in 2008 to build the institutional equity business. ******************************************** Mcleod Russel Cairn India Indraprastha Gas Mercator Lines Bajaj Electricals Gujarat NRE Coke, Suzlon Energy, JP Associates BGR Energy Systems Jyoti Structures Gayatri Projects Tulip Telecom PVR Cinemas United Phosphorus Src: Economictimes and DP blog and etc.

Nifty breaches 4975; oil & gas, metals fall

Nifty breaches 4975; oil & gas, metals fall

MUMBAI: Indices slipped to day’s lows mirroring sell-off in European markets. Commodities and interest rate sensitive were the worst hit while pharma stocks showed some strength.

At 2:15 pm, National Stock Exchange’s Nifty was at 4972.65, down 113.65 points or 2.23 per cent. The broader index hit a low of 4972.30 in trade so far.

Bombay Stock Exchange’s Sensex was at 16607.70, down 336.93 points or 1.99 per cent. The index touched a low of 16318.39 and high of 16942.82.

BSE Midcap Index was down 1.44 per cent and BSE Smallcap Index moved 0.64 per cent lower.

Amongst the sectoral indices, BSE Metal Index fell 3.18 per cent, BSE Oil&gas Index declined 2.47 per cent and BSE Bankex slipped 2.39 per cent. BSE Healthcare Index was up 0.07 per cent.

Jaiprakash Associates (-5.30%), Unitech (-4.55%), Hindalco Industries (-4.53%), Sterlite Industries (-4.39%) and Reliance Industries (-3.26%) were the top Index losers.

Maruti Suzuki (2.03%), Sun Pharma (1.79%), Cipla (1.66%), Power Grid (0.68%) and ACC (0.18%) were the only gainers.

Market breadth was negative on the NSE with 1939 declines against 1125 advances.

European markets were under pressure following economic recovery concerns and sharp fall in shares of British Petroleum. FTSE 100 was down 2.09 per cent, CAC 40 fell 2.44 per cent and DAX moved 1.95 per cent lower.




RIL falls 20% in freak trade on BSE


MUMBAI: Shares of Reliance Industries witnessed a sharp fall of around 20 per cent on the Bombay Stock Exchange in a freak trade.

According to the BSE website, the stock fell to intra-day low of Rs 840.55, down Rs 204.50 or 19.56 per cent before recovering most of the losses.

At 1:10 pm, the stock was at Rs 1014.60, down Rs 30.41 or 2.91 per cent. It touched a high of Rs 1049.70 in today’s trade. Around 7.58 lakh shares were traded in the counte

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Sensex ends 372 pts lower on global cues; metal dips 4%

Know a Web Or Blog

Know a Web/Blog Related to Indian Stock Market


http://www.investmentguruindia.com/StockMarket.aspx





Know a Web Related to Stock Market



http://www.buzzingstocks.com/in/index.pl

India's Q4 GDP grows at 8.6% y-o-y

India's Q4 GDP grows at 8.6% y-o-y


NEW DELHI: India's economy grew at its fastest pace in six months in the quarter through March 2010, fuelled mainly by government and consumer spending, which is expected to allow policymakers to focus on anchoring inflation that is hovering near 10 percent. ( Watch )

The 8.6 percent expansion in the fourth quarter of the fiscal year 2009/10 was broadly in line with a median forecast of 8.7 percent in a Reuters poll and lifted the annual average growth rate for the full fiscal year to a slightly better-than-expected 7.4 percent.

India's economy had grown 6.7 percent in 2008/09, and the Jan-March 2009/10 growth rate matches the revised data for the second quarter of 2009/10. The data is unlikely to evoke any immediate and aggressive policy response from the central bank, as concerns on Europe's debt crisis are expected to keep its policy on hold for now.

"It would be important to note that this release is a backward looking number and our sense is that policy makers would remain considerate of the external developments and any associated downside risk to overall growth," said Anubhuti Sahay, an economist with Standard Chartered Bank in Mumbai. Indian stocks and the rupee strengthened immediately after the data, while the benchmark bond yield rose 2 basis points from before the release.

The expansion in the March quarter was driven by government spending, manufacturing and services. Revival of growth in farm output after a contraction in the quarter ago underscored the broad-based recovery in Asia's third-largest economy.

More @ India's Q4 GDP grows at 8.6% y-o-y



Manufacturing lifts FY10 GDP growth to 7.4%

Jan-March GDP grows 8.6%, in FY10 it rises 7.4%




Src: ET and Moneycontrol, Smartinvestor.in

Investors Guide - ET

Analysts' Pick: Yes Bank, ITC, Tata Power, Container Corp of India, MphasiS

Switch to cos with smaller FII exposure

Mid-term picks | Top 5 picks | Cos with low FII Holding

Wkly Tech Analysis: Pullback likely to persist

Intermediate market uptrend under way
31 May 2010, 0440 hrs IST, Deepak Mohoni

The stock market rallied quite strongly in the second half of last week, helping the Sensex finish 2.54% or 417.45 points higher, and the Nifty 2.75% up.

Corporate Round Up: Madras Cements, Deepak Fertilisers & Petrochem Corp, NHPC, Apollo Tyres
31 May 2010, 0440 hrs IST

Madras Cements’ performance in the March 2010 quarter was adversely affected by a nearly 22.1% y-o-y fall in its realisations on a per tonne basis to Rs 2,778 in its key cement division.

We will double the number of stores to 60 in next 5 yrs: Shrikhande, CEO, Shoppers Stop
31 May 2010, 0440 hrs IST, Supriya Verma Mishra

Currently, we have 30 stores and we are planning to open at least 18 more stores in the next 24-30 months. In the next five years, we will double the number of stores to around 60. We’ll also expand our presence to 25 cities from the current 13.

Pharma cos shows the improving trend in their growth
31 May 2010, 0440 hrs IST, Kiran Kabtta Somvanshi

Good sales in the domestic market and a recovery in the US market, the largest pharma market, have been the major contributor of the companies’ performance.

Fixed income instruments that guarentee capital and returns
31 May 2010, 0440 hrs IST

With the equity markets going through troubled times, traditional fixed income instruments again catch investor’s fancy as they guarantee both the capital and returns.

Investors should go for large-cap equity schemes
31 May 2010, 0439 hrs IST, BAKUL CHUGAN TONGIA

Though launched in ’95, Birla Sun Life Advantage has been overtaken by its new siblings. Investors looking for outstanding returns can look for other large-cap equity schemes.

Investors should increase weight of small banks' stocks
31 May 2010, 0439 hrs IST, Karan Sehgal

While some of the large banks are grappling with spike in bad assets, their smaller regional peers boast of high asset quality.

Bull's Eye: Yes Bank, ITC, Tata Power, Container Corp of India, MphasiS
31 May 2010, 0439 hrs IST

JP Morgan initiates coverage of ITC with an `Overweight’ rating and a target price of Rs 307.

Deccan Chronicle Holdings' paying record makes it an attractive buy
31 May 2010, 0438 hrs IST, Rajesh Naidu

What is attractive for investors is media stocks didn’t move much even though their financial outlook looks robust.

Src: Economictimes