Market Outlook for 2nd July 2009

Intraday Calls 02nd Jul 2009
+ve sector,scripts: HIKAL,Kirdyes,NIIT and Indiainfo
BUY SBI-1779 for a target 1805-1833+ stop loss 1770
BUY PNB-683 for a target 712-720+ stop loss 675

Breakout Calls
BUY GSPL-51 for a target 59+ stop loss 48
BUY GSPL-51 for a target 59+ stop loss 48

Expected Breakout Calls
BUY Siemens-487 above 495 for a target 522+ stop loss 490
BUY WIRPO-379 above 383 for a target 400+ stop loss 378

Positional Calls
BUY TATAMotors-299 for a target 307-327+ stop loss 285

 

NIFTY FUT
RES
4362
4376
4409
4425
4472
SUPP
4328
4324
4275
4229
4213
4166
Buy LANCO INFRA &HIKALLTD

 

Strong & Weak  futures  
This is list of 10 strong futures:

Edu Comp, Tulip, Patel Eng, Colpal, GT Off Shore, Axis Bank, Union Bank, Indus Ind Bank, Tech M & LIC Housing Finance.

And this is list of 10  Weak futures:

Ranbaxy, BRFL, Sterlin Bio, CESC, Nation Aluminium, India Cement, Tata Motors, Sun Pharma, Bharat Forge & Orchid Chem.  
 Nifty is in Down Trend.

 

NIFTY FUTURES (F & O):  
Above 4360-4362 zone, rally may continue up to 4376 level and thereafter expect a jump up to
4407-4409 zone by non-stop.

Support at 4324 & 4328 levels. Below these levels, expect profit booking up to 4275-4277 zone and thereafter slide may continue up to 4229-4231 zone by non-stop.

Buy if touches 4213-4215 zone. Stop Loss at 4166-4168 zone.

On Positive Side, cross above 4423-4425 zone can take it up to 4470-4472 zone. If crosses and sustains this zone then uptrend may continue.
 
Short-Term Investors:  
Bullish Trend. 3 closes above 4270 level, it can zoom up to 4830 level by non-stop.
Already SL triggered.
 
BSE SENSEX:  
Higher opening expected. Uptrend should continue. 
Short-Term Investors:
 
Short-Term trend is Bearish and target at around 12478 level on down side.
Maintain a Stop Loss at 14931 level for your short positions too.

Already SL triggered.
 

 
POSITIONAL

Buy HIKAL LTD (NSE Cash)   
Uptrend should continue.

Mild sell-off up to 246 level can be used to buy. If uptrend continues, then it may continue up to 261 level for time being. 

If crosses & sustains at above 270 level then

uptrend may continue.

Keep a Stop Loss at 237 level for your long positions too.
 
Buy LANCO INFRATECH (NSE Cash) 
Uptrend should continue.

Mild sell-off up to 355 level can be used to buy. If uptrend continues, then it may continue up to 376 level for time being. 

If crosses & sustains at above 386 level then

uptrend may continue.

Keep a Stop Loss at 344 level for your long positions too.
 
Global Cues & Rupee  
The Dow Jones Industrial Average closed at 8,504.06. Up by 57.06 points.
The Broader S&P 500 closed at 923.33. Up by 4.01 points.

The Nasdaq Composite Index closed at 1,845.72. Up by 10.68 points.

The partially convertible rupee ended at 47.88/90 per dollar on yesterday, stronger than the previous close of 47.90/91. 

 

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	01-Jul-2009	1439.39	1253.81	+185.58

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	01-Jul-2009	899.91	976.29	-76.38

 

DELIVERY  
Suzlon: Remains a Sell 
Prices for wind turbines have fallen 18 percent globally since the renewable energy industry slumped with the recession. The prices were affected by diminishing demand for the giant machines, a decline in the cost of raw materials such as steel and because components have been more accessible since late 2008. Renewable energy provides a small fraction of electricity used today but the wind and solar sectors are among the fastest growing in the United States.

In 2008, the U.S. became the world's leading provider of wind power. Like most industries around the world, the recession has hurt wind turbine manufacturers and wind farm developers. Companies have shelved development plans and laid off workers. New Energy Finance says prices fell 18 percent on contracts signed worldwide in late 2008 and 2009 for turbine deliveries in the first half of 2010. The findings were based on interviews with 12 companies worldwide that bought wind turbines representing nearly 3 gigawatts of wind-generated electricity. The contracts occurred in 22 markets and covered 11 manufacturers.

Worldwide, this industry has hit a situation where there's been a slowdown in demand and that is definitely resulting in prices coming down. Concerns like Suzlon have been tightlipped about their prospects going into 2010, with virtually no growth expected and an expected run-down of order book as projects get executed. The $ 2 bn debt that Suzlon carries and a roughly $ 125 mn loss in FY09 have been other causes of concern on a sector which is perceived by many to be built simply upon the fear that Earth will run out of fossil fuel and hence unabashed tax concessions from Governments to push for renewable energy sources.

Unreliable power availability and non peak load provision means that Governments may be squandering limited resources in recessionary times on a sector that is simply unviable to be sustained into the 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.)

--
Arvind Parekh
+ 91 98432 32381