TRADING CALLS For 28/7/2009
Buy Tatapower-1241 for 1280-1320-1340 with sl 1219
Buy DivisLab-1164 for 1190-1213 with sl 1155
Buy Bomdyeing-335 for 350-363 with sl 323
Buy Indiabulls-201 for 210-214 with sl 198
Buy Neyveli-136 for 144-149 with sl 133
Buy Tatapower-1241 for 1280-1320-1340 with sl 1219
Buy DivisLab-1164 for 1190-1213 with sl 1155
Buy Bomdyeing-335 for 350-363 with sl 323
Buy Indiabulls-201 for 210-214 with sl 198
Buy Neyveli-136 for 144-149 with sl 133
NIFTY FUTURE LEVELS
RESISTANCE
4599
4633
4654
4664
4686
SUPPORT
4567
4557
4545
4524
4513
4492
BUY HIND UNILEVER,TATA POWER
Strong & Weak futures
This is list of 10 strong futures:
This is list of 10 strong futures:
DLF, Bharat Forg, Tata Motors, Jindal Steel, Maruti, Purva, HCL Tech, LILT, Jindal Steel & GSPL.
And this is list of 10 Weak futures:
IOC, Chambal Fert, RPL, Nagar Fert, Essar Oil, LIC, India Cemt, Reliance, Bank of India & ZEEL.
Nifty is in Up Trend.
Nifty is in Up Trend.
NIFTY FUTURES (F & O):
Above 4599 level, rally may continue up to 4631-4633 zone and thereafter expect a jump up to 4652-4654 zone by non-stop.
Above 4599 level, rally may continue up to 4631-4633 zone and thereafter expect a jump up to 4652-4654 zone by non-stop.
Support at 4557 & 4567 levels. Below these levels, expect profit booking up to 4545-4547 zone and thereafter slide may continue up to 4524-4526 zone by non-stop.
Below 4513-4515 zone, expect panic up to 4492-4494 zone by non-stop.
On Positive Side, cross above 4662-4664 zone can take it up to 4684-4686 zone. Supply expected at around this zone and have caution.
Short-Term Investors:
Bullish Trend. 3 closes above 3906 level, it can zoom up to 4600 level by non-stop.
3 closes above 4600 level, it can zoom up to 4947 level by non-stop.
BSE SENSEX:
Short-Term Investors:
Higher opening expected. Profit Booking should start.
POSTIONAL BUY:
Buy HIND UNILEVER (NSE Cash)
Uptrend to continue.
Buy HIND UNILEVER (NSE Cash)
Uptrend to continue.
Mild sell-off up to 297 level can be used to buy. If uptrend continues, then it may continue up to 310 level for time being.
If crosses & sustains at above 319 level then uptrend may continue.
Keep a Stop Loss at 287 level for your long positions too.
Buy TATA POWER COMP (NSE Cash)
Uptrend to continue.
Mild sell-off up to 1229 level can be used to buy. If uptrend continues, then it may continue up to 1280 level for time being.
If crosses & sustains at above 1319 level then uptrend may continue.
Keep a Stop Loss at 1190 level for your long positions too.
FII DATA
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 27-Jul-2009 | 2946.97 | 2507.43 | +439.54 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 27-Jul-2009 | 1381.31 | 1660.28 | -278.97 |
SPOT LEVELS TODAY
 | 4572.30 | ( 0.08 %) | 3.75 |  |
| 1 | 2 | 3 | ||
| Resistance | 4603.20 | 4634.10 | 4671.45 | |
| Support | 4534.95 | 4497.60 | 4466.70 | |
 | 15375.04 | ( -0.03 %) | -3.92 |  | |
| 1 | 2 | 3 | |||
| Resistance | 15482.60 | 15590.16 | 15717.23 | ||
| Support | 15247.97 | 15120.90 | 15013.34 | ||
Global Cues & Rupee
Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.
Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.
3 closes above 15379 level, it can zoom up to 16459 level by non-stop.
Interesting findings on web:
US stocks again rallied late to close in the blue, though gains were lower than seen on some days over the past two weeks.
Interesting findings on web:
US stocks again rallied late to close in the blue, though gains were lower than seen on some days over the past two weeks.
Investors are still building on a stock market rally even when the news isn't all great.
Investors aren't dumping stocks, even in the face of downbeat news.
Banks got a boost from a jump in new-home sales.
The U.S. Commerce Department reported on Monday that new home sales in June surged 11 percent, the largest increase in more than eight years, adding to evidence the housing slump is stabilizing.
In economic news, the Commerce Department said new home sales rose 11 percent in June to 384,000, beating analysts' estimates. The median price of $206,200 was down 12 percent from a year earlier and off nearly 6 percent from May. Last week, stocks got a lift from a better-than-expected rise in sales of existing homes.
Bank stocks, which have lagged in recent weeks, were among the day's top gainers after a report showed new-home sales rose 11 percent to an annual rate of 384,000 in June. Economists had expected a pace of 360,000.
Several regional banks, among the worst hit by credit losses tied to a weak housing sector, posted large gains off the stronger housing data.
Regions Financial Corp jumped 8.4 percent to $4 and Zions Bancorporation soared 11.4 percent to $12.48, while the S&P financial sector rose 1.2 percent.
Stocks had struggled for much of the day as investors worried about a a record $200 billion in Treasury auctions this week and lowered outlooks from Honeywell and Aetna cast a shadow over the market.
This comes after a strong run for stocks that brought the Dow its best two-week performance since 2000.
Adding a layer of anxiety to the market is a record $200 billion of government debt hitting the market this week.
It kicked off with $6 billion of 20-year TIPS, or inflation-protected securities, which had a high yield of 2.387 percent. The bid-to-cover ratio was 2.27, the highest in history.
The Treasury also auctioned $32 billion of three-month bills and $31 billion of six-month bills to decent demand as part of its routine weekly auction.
The concern is that traders are seeing signs of economic recovery, yet the government is still hauling out record debt offerings, said Jim Paulsen, chief investment strategist at Wells Capital Management.
"They're worried that, if the economy starts to pick up and the government still has to come in with such offerings, will the credit markets start to tighten up?" Paulsen observed. "What happens if the economy starts to recover? It's one thing to raise this type of money in a recession — another thing if it's growing," he explained.
Plus, they're worried that the impact of all this debt could cause China and other big buyers to start dumping U.S. bonds, he said.
Bank of America was the biggest gainer on the Dow, up 4.6 percent. Regions Financial shot up 8.9 percent and Zions Bancorp jumped 13 percent.
Of course, homebuilders also got a boost, with Beazer, Hovnanian and Pulte Homes among the biggest gainers.
America's largest wireless carrier Verizon Communications saw second-quarter profit fall 7% due to rising costs but the results were in line with expectations.
The group said it earned $3.16bn in the three months ended June 30, which is down from the $3.40bn seen in the same period last year. Excluding special items, it earned 63 cents per share, matching the average analyst expectation.
Diversified manufacturer Honeywell International saw earnings fall by 38% and warned that full-year profit will be at the lower end of its forecasted range. Full-year profits are expected to come to about $2.85 a share compared with previous forecasts of $2.85 to $3.20.
The stock was lower for much of the day, but recovered by the closing bell, ending up 0.7 percent.
Dow component Verizon beat earnings expectations by a penny and announced plans to cut 8,000 jobs but revenue failed to keep pace with cost cuts and its shares declined. Its shares fell 1.6 percent.
Corning also topped earnings forecasts, citing strong demand for glass for flat-screen TVs, and said it expected that demand to continue for the rest of the year.
Boeing shares dropped 0.3 percent after Barclays cut its rating on the aerospace giant to "equal weight" from "overweight,"
AIG shares rose 4.3 percent after the company renamed its AIU property-casualty business under the name Chartis to distance the unit from the problems of its parent company.
Swedish telecom Ericsson agreed to buy Nortel's wireless unit for $1.13 billion.
Varian soared 29 percent after Agilent Technologies agreed to buy the scientific-instrument maker for $1.5 billion, or $52 a share in cash. Agilent shares rose 1.8 percent.
Mylan tumbled 13 percent following a report that suggested workers at the generic drug maker's primary manufacturing plant overrode quality controls intended to ensure the safety of the drugs.
Shares of Amgen fell 0.3 percent ahead of its earnings. After the bell, the biotech giant beat expectations, helped by an arthritis drug and a tax benefit, and raised its full-year outlook. Its shares rose after-hours.
In other company news, Aetna saw its profits slumped due to higher medical expenses. Aetna shares skidded 2.7 percent.
RadioShack Corp.'s second-quarter profit rose 18% as earnings topped expectations. Revenue disappointed. Its shares fell 6.6 percent.
So far this earnings season, companies beating expectations have outnumbered the misses by a ratio of 5 to 1, the highest since 2004, according to analysts at Birinyi Associates.
The CBOE Volatility index, widely considered the best gauge of fear in the market, is now below 25 after soaring to near 80 in the fall. Goldman Sachs derivatives strategists said they expect volatility to continue to decline as much of earnings season is now behind us.
Newspaper shares rallied on the back of much better than expected figures from FT owner Pearson.
Dow Jones I.A - Risers
Bank Of America Corp. (BAC) $13.10 +4.72%
Alcoa Inc. (AA) $11.29 +2.45%
General Electric Co. (GE) $12.32 +2.41%
Caterpillar Inc. (CAT) $42.88 +2.10%
Du Pont E I De Nemours and Co. (DD) $30.36 +1.07%
Dow Jones I.A - Fallers
American Express Inc. (AXP) $28.40 -3.76%
Verizon Communications Inc. (VZ) $30.87 -1.99%
Microsoft Corp. (MSFT) $23.14 -1.32%
Boeing Co. (BA) $41.87 -1.18%
Merck & Co. Inc. (MRK) $30.67 -1.04%
Currencies:
The U.S. currency touched a seven-week low versus the euro as on the new home sales report. The yen fell against most of its major counterparts as analysts raised their profit estimates for U.S. companies for the first time in two years, encouraging Japanese investors to seek higher yields overseas.
The dollar was mixed against other major currencies, while gold prices rose.
Crude oil rose 33 cents to settle at $68.38 a barrel on the New York Mercantile Exchange.
Gasoline futures rose a 10th straight day, the longest rally in the history of the contract, on refinery shutdowns and the weaker dollar, which increases the investment appeal of commodities.
What to expect in coming days:
TUESDAY: Case-Shiller home-price index; consumer confidence; Earnings from US Steel, Viacom, Dreamworks and STMicro.
About 30 percent of the S&P 500 will report this week. The highlight will likely be the oil companies.
Chevron and ExxonMobil report this week, as do ConocoPhillips and Royal Dutch Shell.
Asia:
Tokyo stocks were down slightly Tuesday morning as investors took a breather after the key Nikkei index's nine-session rally,
while optimism about a global upturn remains sound after a jump in U.S. new home sales for June added to signs of an abating recession.
Most Japanese stocks retreated, breaking the Nikkei 225 Stock Average's longest winning streak in two decades, on concern nine days of gains had swollen valuations too much relative to earnings prospects.
MSCI's Asia Pacific index of stocks is poised for its 11th- straight advance, the longest winning streak since January 2004 and boosting demand for higher-yielding assets in resumed carry trades.
In carry trades, investors borrow at a low rate in one country and invest in another nation with higher returns.
Chinese shares in Shanghai declined Tuesday after rising in the previous four sessions, while Hong Kong stocks lost ground after rising in the last three sessions as investors locked in profits. The Shanghai Composite was down 0.6% at 3,414.79 in early action. Hong Kong's benchmark Hang Seng Index fell 0.6% to 20,134.85, while the closely watched Hang Seng China Enterprises Index, also known as the H-share index, gave up 0.5% to 12,123.39. Shares of Sichuan Expressway Co. /quotes/comstock/22h!e:107 (HK:107 3.52, -0.08, -2.22%) , which more than tripled on its Monday debut in Shanghai, dropped by the 10% limit Tuesday. The toll road operator's Hong Kong-listed shares lost 1.9%
HSI 20190.59 -61.03 -0.3% . (08.31 AM IST).
Hong Kong
Property loans last month surged to a 14-year high, raising fears that a speculative market bubble is in the making.
A 37-year-old Filipino maid has become the second fatality in Hong Kong due to the H1N1 infuenza virus, but the first without an underlying medical conditions.
Macau casino owner David Chow has missed a deadline to pay US$200 million to buy out a group of shareholders, including Merrill Lynch, and hedge funds OchZiff and TPG-Axon, in his company, which owns Fisherman's Wharf in Macau, according to sources.
The grey market price of BBMG (2009.HK) shares, for which the public portion of the initial public offering has been 773 times subscribed, is expected to be 30 percent above the issue price at HK$8.29 each, according to market sources. A company executive said they might consider listing A-shares in China.
Property agent Midland Realty maintained its forecast of a 20 percent rise in Hong Kong residential prices in 2009 after a 17.6 percent surge in the first half. It expects volume to be maintained at about 10,000 transactions per month on average in the second half year.
UBS expects Hong Kong property prices to have a 32 percent upside by the end of next year in anticipation that the low interest rate environment will continue.
Time Warner has repurchased Google's 5 percent stake in the struggling Internet company AOL for 283 million U.S. dollars it was reported Monday. Time Warner is said to have paid a price close to what Google estimated its stake as being earlier this year. However, AOL is only worth a fraction of the 20 billion dollars implied when Google paid 1 billion dollars for the stake in 2005.
Existing home transactions at Shanghai's two leading real estate brokerages declined by double digits this month as a result of soaring prices and a further cutback in supply.
Shanghai Centaline Property Consultants Ltd, the biggest property chain in the city, saw transaction volume fall about 20 percent by last Thursday while a similar picture was also seen at Century 21 Real Estate, the second-largest agency, where deals dropped 15 to 20 percent this month compared with June.
"Existing home prices continued to rise in July by between 5 and 8 percent in different locations and many have already exceeded the record level set in 2007 when the market was overheated," said Lv Shanglun, deputy general manager of Shanghai Centaline.
"To make it worse, the monthly supply of used apartments has fallen between 10 and 20 percent on average since April."
In certain areas the drop in transactions was even larger. Centaline research found that existing home deals in Xintiandi in Luwan District and Lujiazui in Pudong New Area fell by a bigger margin of about 40 percent so far this month.
"The local banking regulator's announcement that the 40 percent down payment should be strictly adhered for second homes has affected investor sentiment," said Wang Yihong, an area director at Centaline.
Investors now account for 40 percent of home buyers in some high-end residences in Lujiazui and Xintiandi, the company said.
The Shanghai Bureau of the China Banking Regulatory Commission reiterated recently local banks must strictly comply with the 40 percent condition on second homes, which was announced in 2007 in a bid to curb real estate speculation.
"Home prices increased so rapidly over recent months and many buyers were forced to give up their home purchase plans," said Huang Hetao, a researcher at Century 21.
INVESTMENT VIEW
Electrosteel Castings-Update
In a recent inter-action with analysts, Electrosteel Castings clarified and specifically focused upon a few points. Electrosteel is a leading manufacturer of Ductile Iron pipes and additionally offers turnkey solutions in water transport and sewage management.
Electrosteel Castings-Update
In a recent inter-action with analysts, Electrosteel Castings clarified and specifically focused upon a few points. Electrosteel is a leading manufacturer of Ductile Iron pipes and additionally offers turnkey solutions in water transport and sewage management.
The demand for ductile pipes comes from Government/Government sponsored projects for transportation of potable water and for cast iron pipes -from irrigation/sewage disposal projects.
Demand for ductile pipes is very fast as there is a renewed focus from the GOI/State Governments and quasi-public bodies to provide potable drinking water not only in India but also across Asia and other developing countries.
The Budget allocations for the JNURM, Accelerated Water Supply program and Pradhan Mantri Gramodaya Yojana-Rural Drinking water supplies, has been raised by atleast 30 per cent in FY2010. This will ensure growing demand for the corporate even in a mostly drought scenario that Summer 2009 is turning out to be.
Electrosteel is fully integrated both backward and forward, with a pig iron plant, sinter plant, captive power and dedicated iron ore, thermal and metalurgical coal mines. The latter, which are already operational can be used to supply the mini blast furnaces of Electrosteel for another 2 years, till it's 2.2 mn tpa integrated steel plant comes up on stream in Jharkhand.
The Q1 numbers were excellent, with Electrosteel reporting an EPS of Rs 1.90 for the quarter. In a very conservative accounting policy, forex losses provided in earlier years have not been reversed in Q1, as many entities like Ranbaxy have done. These will remain as losses till the contracts expiry in the books of Electrosteel.
The stock is cum-dividend Rs 1.25 per share till August 7, 2009. On a projected EPS of Rs 7 for FY10, and a peak mutliple of 9.. Electrosteel could quote up to Rs 63 by December 2009 which along with the dividend will imply a sizeable return of 65 per cent over the next 5 months.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
--
Arvind Parekh
+ 91 98432 32381
