Market Outlook 8.6.09 &Why it makes sense to Buy L&T, IVRCL and HCC.

Strong & Weak  futures 
 This is list of 10 strong futures: Bhushan Steel,Havells,Bajaj Hind, JSW Steel,Penin Land, Tulip, Kesoram, Suzlon,HDIL & Stelite Inds.

And this is list of 10  Weak

Steling Bio,Bpcl,Hind Petro,Hind Uni Lvr,Bata, BOI,Educomp,UBI,IOC & TTML
 Nifty is in Up Trend.

 

Trading Calls 8th May 2009

Intraday Calls

BUY DivisLab-953 @ 945 for a target 965-990 stop loss 940

 

BUY Maruthi-839 @ 830 for a target 852 stop loss 824

BUY TechMaha-344 for a target 360 stop loss 337

SHORT HDFC-1817 @ 1835 for a target 1780 stop loss 1850

SHORT ACC-624 @ 630 for a target 610 stop loss 636

Breakout Calls

BUY ZEEL-129 for a target 158 stop loss 122

 

NIFTY FUTURES (F & O) 
Below 3668 level, expect profit booking up to 3645-3647 zone and thereafter it can slide up to 3623-3625 zone by non-stop.

Hurdle at 3688-3690 zone. Above this zone, buying may continue up to 3693 & 3703 levels by non-stop.

Cross above 3725-3727 zone, can take up to 3746-3748 zone. Supply expected at around this zone and have caution.

On Negative Side, rebound expected at around 3587-3589 zone. Stop Loss at 3565-3567 zone.
  
Short-Term Investors:  
 Bullish Trend. 3 closes above 3342 level, it can zoom up to 3997 level by non-stop.
  
BSE SENSEX   
 Lower opening expected. Get prepared for false signal & Technically recovery should continue.
  
Short-Term Investors:  
 Short-Term trend is Bullish and target at around 13662 level on upper side.

Maintain a Stop Loss at 10962 level for your long positions too.

 

 NIFTY SPOT LEVEL

	3683.90	( 1.62 %)	58.85
		1	2	3
Resistance		3711.58	3739.27	3786.48
Support		3636.68	3589.47	3561.78

 

GLOBAL CUES & RUPEE

The Dow Jones Industrial Average closed at 8,409.85. Down by 102.43 points.

The Broader S&P 500 closed at 907.39. Down by 12.14 points.

The Nasdaq Composite Index closed at 1,716.24. Down by 42.86 points.

The partially convertible rupee <INR=IN> ended at 49.28/29 per dollar on yesterday, above Wednesday's close of 49.58/60.

 

	12116.94		( 1.37 %)	164.19
			1	2	3
Resistance			12180.22	12243.49	12343.04
Support			12017.40	11917.85	11854.58

 

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	07-May-2009	1874.19	1485.86	+388.33

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	07-May-2009	832.55	790.15	+42.4

 

Water: Very Liquid Assets
 
Water crises are both a dark threat to the world and an increasingly bright investment opportunity......& why it makes sense to Buy L&T, IVRCL and HCC.
 
THE NEW OIL MAY BE WATER

According to Global Water Intelligence, a U.K. consultancy, by December total assets under management in water funds could hit a record $20 billion this year, a 53 percent increase from 12 months earlier.  

No wonder: since 2001, shares in global water companies have gone up 150 percent, according to Thomson Financial. That compares with a 50 percent rise in international blue chips.  

The reason is simple: there is profit in scarcity. Buffeted by constant news of dying rivers, droughts and water shortages from China to Mexico, investors are increasingly aware that water is a threatened resource. With more and more governments handing public water systems over to the big multinationals like the U.K.'s Veolia Environment and Thames Water, profits are rising.  

One of the top companies, France's Suez, saw global sales from its water unit increase 11.7 per-cent, helped by a 20.3 percent rise in revenue from China.  

These days, savvy asset-management companies have turned water shortage anxieties into a burgeoning investment-fund business. Like the rest of the market, water stocks have fallen recently, but a lot less than, say, U.S. equities.  

While the Standard & Poor's index plunged by a tenth in the last few weeks, shares in global water companies are down only about 3 percent, helped by international business exposure and the view that cash-generating utilities businesses are a good defense in a downturn.  

This year, much of the new money pouring into water funds is coming from Asia, where ethical investing is very new. It may also simply be that Asia is the only developing region that has a combination of remarkably acute water crises and particularly rapid growth, creating a new crop of investors who are intimately familiar with the water threat.
 
Only seven months into 2007, there are now 27 inter national water funds, more than double the number compared with 2006. Of the 15 new products, nine target Asian investors in Hong Kong, Seoul, Tokyo and Sydney.  

Since April, when Societe Generale's Lyxor Asset Management unit began inundating Hong Kong with ads touting its new water fund, it has raised $320 million from mom-and-pop investors alone, well beyond its expectations.  

The price of any company's stock reflects its estimated future earnings, and the potential to make money fixing water problems is huge. In developing markets where affluence is growing and hundreds of millions of people are set to move from rural to urban areas, water resources are under assault.  

The Chinese government estimates that demand will increase by 120 percent in the next 25 years, while in India, urban water needs will rise 100 percent in the coming two decades.  
For major water-treatment specialists, the biggest new projects are in China. Some 1,000 wastewater plants are to be built over the next five years, as the government has pledged more than $125 billion to address the natural-resource shortage.  

Hundreds of billions more are expected to come from the private sector. A recent report from Macquarie, the investment bank, pegged earnings growth for Singapore-listed water-treatment companies like Epure and Hyflux, which target the China market, at between 37 and 40 percent over the next three years.  

The hottest investment bets include companies engaged in desalination, recycling or infrastructure, which have the highest margins and potential profit growth. Utilities are less attractive, because water prices anywhere are usually regulated by the government and not subject to market conditions. 

Dieter Kuffer, a senior portfolio manager with Sustainable Asset Management in Zurich—which has the second biggest water fund in the world, worth $1.6 billion says, "We think earnings growth in water stocks overall will be 14 percent over the next five years, and Asian water-stock growth will be 50 to 100 percent." 
 
Investors pouring money into water funds may find, as they say in China, double happiness. The stocks themselves have had a good run. But investing in sustainability may have a larger payoff.  

Many economists now see environmental issues as the biggest stumbling block to continued fast growth in Asia. Already, Beijing estimates economic losses due to water shortages at $25 billion a year. Investors buying into liquid assets could help secure Asia's larger economic future.

(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.)
 
 
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Arvind Parekh
+ 91 98432 32381