NIFTY FUTURES LEVELS
+ve Sector,Script : Fertlizers Pirhealth,Aptech
Buy BHEL-2346 for a target 2365-2380 stop loss 2330
Buy APIL-542 for a target 559 stop loss 538
Buy Prajind-99 for a target 105 stop loss 96
Buy Nucleus-97 for a target 105 stop loss 94
Buy RIL-2017 above 2030 for a target 2080 stop loss 2010
Buy Mahlife-328 for a target 460 stop loss 310
Buy ZEEL-200 for a target 227 stop loss 193
Buy Optocir-185 for a target 230 stop loss 177
Buy DCW-16 for a target 19 stop loss 15.10
This is list of 10 strong futures:
Nifty is in Up Trend.
Rally may continue up to 4740-4742 zone for time being.
Support at 4691 & 4704 levels. Below these levels, expect profit booking up to 4645-4647 zone and thereafter slide may continue up to 4601-4603 zone by non-stop.
Buy if touches 4556-4558 zone. Stop Loss at 4512-4514 zone.
Short-Term Investors:
Bullish Trend. 3 closes above 4473 level, it can zoom up to 4988 level by non-stop.
BSE SENSEX:
Higher opening expected. Uptrend should continue.
Short-Term Investors:
Short-Term trend is Bullish and target at around 16861 level on upper side.
Maintain a Stop Loss at 15065 level for your long positions too.
POSTIONAL BUY:
Buy MAHINDRA LIFESPACE DEVELOPERS (NSE Cash)
Uptrend to continue.
If crosses & sustains at above 374 level then uptrend may continue.
Buy HCL INFOSYSTEMS (NSE Cash)
Mild sell-off up to 121 level can be used to buy. If uptrend continues, then it may continue up to 125 level for time being.
If crosses & sustains at above 128 level then uptrend may continue.
The Dow Jones Industrial Average closed at 9,286.56. Up by 114.95 points.
The Broader S&P 500 closed at 1,002.63. Up by 15.15 points.
The Nasdaq Composite Index closed at 2,008.61. Up by 30.11 points.
The partially convertible rupee INR=IN ended at 47.635/645 per dollar on yesterday, stronger than Friday's close of 47.93/95.
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 03-Aug-2009 | 1748.87 | 1401.86 | 347.01 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 03-Aug-2009 | 884.72 | 823.71 | 61.01 |
On Monday, at least, the market continued on its merry way higher. The Dow Jones Industrial Average (DJI) rose 114 points, or 1.2%, to finish at 9,286, its highest close since Oct. 4. The S&P 500 index (SPX) rose 15 points, or 1.5%, to 1,002, also its highest close since Nov. 4. The Nasdaq Composite (RIXF) rose 30 points, or 1.5%, to 2,008, its highest close since Oct. 1.
In the past, stocks sometimes have paused in their gains when indexes approached big, round numbers such as 1000, 2000 or 9000. Investors have seized on the events as a chance to sell some stocks, take some profits and re-evaluate. This time, the indexes powered through those levels without hesitation, a sign of how robust the rally has been.
The market received a boost from upbeat global reports that fueled hopes for the economy. Investors also cheered early July vehicle sales figures from auto makers, with hopes raised by the government's Cash for Clunkers program. Shares of Ford Motor Co. (F) rose 7% after it announced its first sales increase in almost two years.
In July, Ford shares rallied 32%. Toyota (TM) gained more than 11%, Honda ( HMC) rose 17%, Nissan (NSANY) gained 20%, Daimler AG (DAI) was up 28%.
Stocks jumped more than a percent to kick the week off as positive data on manufacturing and the auto industry boosted optimism about the economy's direction. The S&P 500 closed above 1,000 for the first time since November and is now up almost 48% from its low point during the financial crisis in March.
Stocks powered their way to two new milestones Monday amid a growing belief that the recession is over and better days lie ahead.
Eleven days after the Dow Jones Industrial Average surpassed 9000, Standard & Poor's 500-stock index broke through 1000, and the Nasdaq Composite Index passed 2000. All three major U.S. indexes now stand at their highest levels since autumn, as do the benchmark indexes of Britain, Germany and France, which also posted sharp gains Monday.
The good news Monday included better-than-expected surveys of manufacturing activity in the U.S., Britain and China, stronger-than-expected U.S. construction data, Ford Motor's first monthly U.S. sales increase in nearly two years and encouraging profit reports from British banks HSBC Holdings and Barclays.
Investors also welcomed a comment from former Federal Reserve Chairman Alan Greenspan on a Sunday television news show that he is "pretty sure we've already seen the bottom" of the recession.
The Institute for Supply Management showed the sector shrank at a slower pace in July. The ISM index came in at 48.9, up from 44.8 in June, beating expectations. New orders and production both hit their highest readings since 2007 but jobs and inventories fell again. The numbers left no doubt about the impact of the recession: manufacturing fell at an annual rate of 13% for the first half of 2009.
Market sentiment was also underpinned by reassuring bank results from Europe.
Shares of natural resource companies gained.
Higher auto sales at Ford ( F - news - people ) also encouraged investors. The car maker reported an increase of 2.3% in July sales, compared with last year. Analysts had expected a decline. General Motors ( GMGMQ.PK - news - people ) and Chrysler both saw sales fall substantially, although the government's "Cash For Clunkers" program has been wildly successful. Ford shares gained 4.1% in regular trading.
Ford's Sales Rise as GM, Toyota Pare Declines on Clunkers Cash
Ford Motor Co.'s July U.S. sales rose 2.3 percent while General Motors Co. and Toyota Motor Corp. pared declines as the government's so-called cash-for-clunkers incentive stoked the strongest demand for new autos this year.
In finance, Bank of America ( BAC - news - people ) agreed to settle SEC charges that the bank lied to investors about bonuses paid by investment bank Merrill Lynch, which BofA bought at the start of the year. As part of the settlement the bank will pay $33 million, not much of a burden considering its equity was last valued at $255 billion. Shares gained 3.6%.
The strongest sectors were those tied to economic-recovery hopes, with manufacturing stocks up 3.5%, financials up 2.7%, and energy stocks up 2.3%.
Aluminum-maker Alcoa jumped 6% amid optimism about economic prospects.
Among the Monday gainers in the S&P 500's financial sector were regional banks KeyCorp, which climbed 13.5%, and Zions Bancorp, which rose 4.5%. Life insurers also bolstered the sector, as Principal Financial Group jumped 6.9% and Lincoln National rose 5.5%.
One of the things that helped the stock bounce back was news that Bank of America has hired Sallie Krawcheck, the formerCFO of Citigroup, to lead its global wealth and investment-management unit, as a prelude to finding a successor to CEO Ken Lewis.
And Goldman Sachs shares rose 0.5 percent despite a report that showed the investment bank's reputation has been damaged, among both the general public and financially sophisticated Americans.
American depositary shares of UBS gained 4.9 percent amid the likelihood that the Swiss bank won't pay a fine to settle its dispute with the US government over Americans suspected of trying to evade taxes by using Swiss accounts.
CIT Group [CIT 1.03 0.16 (+18.39%) ] jumped 18 percent following news that the lender has raised the offering price of on its debt repurchase, offering to pay $875 in cash for every $1,000 in senior notes due Aug. 17, from $825. The company also said it has already received enough offers to meet the minimum requirements of the program.
AIG shares [AIG 13.60 0.46 (+3.5%) ] rose 3.5 percent following news that the insurer has chosen former MetLife CEO Robert Benmosche as its chief executive.
Apple [AAPL 166.44 3.05 (+1.87%) ] and Google [GOOG 451.73 8.68 (+1.96%) ] were in the spotlight this morning after Google CEO Eric Schmidt resigned from Apple's board.
Dow component 3M [MMM 72.14 1.62 (+2.3%)] gained 2.3 percent after Goldman Sachs upgraded the stock to "buy" from "neutral."
And IBM [IBM 119.92 1.99 (+1.69%)] rose 1.7 percent after Bernstein raised its price target on the stock.
In the energy sector, Massey Energy, Peabody Energy, Denbury Resources and Nabors Industries all rose at least 6% as crude oil futures popped above $72 a barrel to their highest level since June 30.
Berkshire Reaches $100,000 a Share, Hitting Eight-Month High
Warren Buffett's Berkshire Hathaway Inc. reached $100,000 a share for the first time since January as its derivative bets and holdings in firms including Goldman Sachs Group Inc. and Wells Fargo & Co. gained in value.
Bank of America Shuffles Managers, Settles SEC's Merrill Claims
Bank of America Corp., taking steps to prepare for Kenneth Lewis's succession as chief executive officer, shuffled senior management and settled U.S. claims it misled investors while buying Merrill Lynch & Co.
Barclays Capital to Hire as Many as 1,000 Workers, Diamond Says
Barclays Plc, the U.K.'s second-biggest lender, plans to hire as many as 1,000 people, including investment bankers at its Barclays Capital unit, by the end of the year to compete in mergers advice and share sales.
The biggest winner today among major stock groups in the S&P 500: basic materials, which includes commodity producers.
The average materials stock shot up 3.5% as prices of copper, nickel, oil and other commodities surged. U.S. Steel jumped $3.28, or 8.2%, to $43.03; Du Pont gained 97 cents, or 3.1%, to $31.90.
"We think we have seen the worst of the financial crisis and the recession," said Richard Sichel, who helps oversee $1.3 billion as chief investment officer of Philadelphia Trust Co.
Mr. Sichel said some kind of disappointing news will no doubt arrive in the coming weeks. Given their big advance in such a short period, he said, stocks are overdue for a pullback, but he added that he thinks the market then will resume its rise.
Although diehard skeptics continued to warn the economy still isn't out of the woods and stocks could suffer more than the bulls believe, a growing number of investors have been so impressed by the economic and corporate news that they have set aside their doubts.
While many in the market say U.S. stocks are due for a breather after scoring their best July in 12 years, the market can at least count on favorable odds for another month of gains in August.
The market, as measured by the broad S&P 500 index, has advanced in August 60% of the time in the 81 years since 1927, for an average gain of 4%, according to Standard & Poors. And since 1999, August has brought gains seven times out of 10.
One caveat for market analysts, however, is that the market has continued its powerful rally through the summer so far.
"The stock market appears slightly overbought having moved a little too far, too fast over the last month," said Fred Dickson, chief market strategist at Davidson Companies.
In July, the Dow rallied 8.6% to mark its best monthly gain since Oct. 2002 and its best July since 1989. The S&P 500 rose 7.4% for the month, its best July since 1997, and the Nasdaq gained 7.8%.
And since hitting lows in March, the S&P 500 has rallied a whopping 50%.
These figures, and especially the sharp gains seen in July, have a number of market strategists say stocks are overdue for a breather this month.
"Suffice it to say that stocks are overdue for a rest, although the 'overbought' condition can remain for quite some time before the markets finally take a breather," said Paul Nolte, director of investments at Hinsdale Associates, in a note.
For Marc Pado, market strategist at Cantor Fitzgerald, "the market may start to struggle by late August."
August in perspective
Since World War II, August months have tended to bring gains but not by as much as in other months of the year, according to RDM Financial. Since 1945, August has returned 0.4%, placing it 10th among the 12 months of the year.
"However, when the economy is rebounding, then the market has tended to put in a much stronger performance [in August]," said Michael Sheldon, market strategist at RDM.
Many market observers believe that back in March, the market has hit its lows of the bear market that followed the financial crisis. And on the 14 occasions that have followed bear-market bottoms since 1932, the S&P 500 has risen 10 out of 14 times in August for an average gain of 1.2%.
"Past performance is never 100% guarantee of returns in the future," Sheldon said. "But the outlook for August continues to be more positive than some would think," he said.
Oil, Dollar & Commodities:
Crude oil gained over 3% Monday to top $71 a barrel as commodities traders took heart at the improving manufacturing and auto sales data.
A weak U.S. dollar also helped oil to hit its highest level since mid-June. The greenback is now at its lowest point this year.
In hopes of recovering lost ground, some investors have jumped into commodities as well as stocks. Copper for August delivery surged 4.4% Monday in New York, now up more than 118% from its December low. Crude-oil futures rose 3% to $71.58, up 13% in three trading days and 60% for 2009.
Dollar's Pain Is Stock's Gain
Meanwhile, the dollar index continued to slump, also to levels not seen since last fall. It was trading at 77.59, its lowest level since Sept. 29. As the dollar fell, commodities were fired up with big gains in natural gas, copper, corn and soybeans. Oil was also higher, rising 3 percent to $71.58 per gallon.
When it came to stocks, the commodities-driven materials shares Monday were the best performers, up 3.5 percent, while financials were 2.7 percent higher.
The gains in commodities since early July have been stunning. Copper rose 28 percent since July 8; gasoline gained 26 percent; oil is up 19 percent; natural gas jumped 19 percent, and platinum increased 13 percent.
Stock markets around the world have rallied right along. India is at a 14-month high; China, Mexico and Korea are at 12-month highs, and Brazil, Hong Kong and Singapore are at 11-month highs.
What to expect:
Tuesday's data includes personal income and spending at 8:30 a.m. and pending home sales for June at 10 a.m. Earnings reports are expected from Toyota, UBS, Archer Daniels Midland, CVS Caremark, D.R. Horton, Duke Energy, Rowan, Cognizant, and PPL. After the bell, Kraft Foods, Whole Foods and Electronic Arts report.
Caterpillar management conducts a second day of its annual meeting with analysts and investors, via web cast. Ford unveils a new version of its once best-selling Taurus.
In Washington, the Senate Banking Committee holds a hearing on banking supervision at 9:30 a.m. Witnesses include FDIC chair Sheila Bair and Fed Gov. Daniel Troll.
TUESDAY: Personal income/spending; pending-home sales; Earnings from Kraft.
WEDNESDAY: Weekly mortgage applications; Challenger, ADP reports on jobs; ISM services index; factory orders; weekly oil inventories; Earnings from P&G, Cisco, News Corp. and Prudential.
THURSDAY: Chain-store sales; weekly jobless claims; Earnings from Sirius XM, Unilever.
FRIDAY: July jobs report; consumer credit; Earnings from Liberty Media.
Asia:
Asian bourses rose in morning trade Tuesday after Japan's Panasonic Corp narrowed its first-half loss forecast, positive US manufacturing reports and higher commodity prices.
The US manufacturing sector continued to shrink in July but at a slower pace than in June.
The Institute for Supply Management said its index of national factory activity rose to 48.9 in July from 44.8 in June, beating economists' expectations. A reading below 50 indicates contraction.
HwangDBS Vickers Research said in a report that trading sentiment across Asia might be lifted today by the overnight performance on Wall Street.
The US key equity indices rose between 1.3% and 1.5% at the closing bell buoyed by mainly commodity and financial stocks, and improved sentiment that the recession could be over.
Meanwhile, HwangDBS noted that local investors' interest might be on plantation stocks as crude palm oil's 3-month futures increased 4.8% to RM2,295 per tonne.
"Our FBM KLCI is likely to climb further before meeting its resistance level of 1,190 as investors take cue from the foreign boys," it said.
The FBM KLCI was up 9.69 points to 1,181 at mid morning trade while Singapore's Straits Times Index rose 0.46% to 2,693.91.
Tokyo's Nikkei 225 rose 1.10% to 10,466.78 while Seoul's Kospi Index was up 1.02% and Hong Kong's Hang Seng Index added 1.52% to 21,123.29.
At Bursa Malaysia, 306 counters were up, 42 were down while 84 were traded unchanged. There were 151.8 million shares done at a total value of RM143.1 million.
Top gainers Pacific Mas added 21 sen to RM3.69, Dutch Lady rose 20 sen to RM11.50, BAT was up 16 sen to RM47.46 and MISC increased 10 sen to RM8.90.
Among the heavyweights, Maybank was up 5 sen to RM6.73. BCHB added 4 sen to RM10.70 and Tenaga rose 2 sen to RM8.15.
KLK added 14 sen to RM12.66, Sime rose 10 sen to RM8.33, Ramunia was 1 sen higher at 61.5 sen and AirAsia slipped 6 sen to RM1.48.
Nymex crude oil in electronic trade was down 16 cents to US$71.42 per barrel.
Spot gold rose 36 cents to US$957.10 per ounce.
The ringgit was quoted at 3.4892 to the US dollar.
Tokyo stocks treaded water at high levels Tuesday morning, with the Nikkei Stock average maintaining gains of 100-plus points.
The benchmark Nikkei .N225 gained 1.1 percent or 110.14 points to 10,462.61, after briefly rising as far as 10,479.19, its highest level since Oct. 6.
The broader Topix added 1 percent to 967.07.
Shares in Sumitomo Realty & Development Co. (8830) rose for the fourth straight trading day Tuesday morning, briefly climbing 76 yen to a year-to-date high of 2,055 yen.
NTT Corp. (9432) shares bounced back Tuesday morning, opening bid-only before climbing 3.7% to 3,940 yen.
HSI 20928.9 +121.64 +0.58% (08.33 AM IST).
Hong Kong shares extended gains Tuesday, as HSBC Holdings stock soared more than 7% a day after the banking giant reported better-than-expected first-half results. The Hang Seng Index rose 1.6% to 21,148.35, as index heavyweight HSBC /quotes/comstock/22h!e:5 (HK:5 82.90, +5.20, +6.69%) /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 55.05, +0.55, +1.01%) soared 7.6%. Shares of Hang Seng Bank Ltd. /quotes/comstock/22h!e:11 (HK:11 121.50, -3.20, -2.56%)/quotes/comstock/11i!hsngy (HSNG.Y 16.30, -0.05, -0.31%) , however, slipped 0.2% after its half-yearly results fell short of expectations. The Hang Seng China Enterprises Index advanced 0.8% to 12,472.45.
Chinese stocks opened higher on Tuesday morning, tracking gains from the previous closing.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, opened at 3,477.11 points, up 0.42% or 14.52 points from the previous closing.
The Shenzhen Component Index on the smaller Shenzhen Stock Exchange opened 0.49% or 67.92 points higher at 13,924.92 points.
Iron Ore Poised to Drop as China Imports Slow, Swaps Indicate.
INVESTMENT VIEW
Unitech: A Growing Uneasy Feeling
The management somehow never provides a schedule of annual execution only what has commenced. A year later it could be sitting on 7 mn sq feet of unsold inventory, 17 mn or 30 mn sq feet, but this is the call the investor has to take. Inspite of 2 QIPs at Rs 38 and Rs 80, the corporate may sink again next year.
Real estate company Unitech Ltd has posted nearly 63 per cent fall in its consolidated net profit for the first quarter ended June 2009, at Rs 158 crore. The slowdown in demand for real estate coupled with the shift in focus towards low and middle-income housing led to the drop in profits on a year-on-year basis.
The total income during the quarter stood at Rs 548.22 crore, 48 per cent lower than the year-ago period.
"During the quarter, the company continued with its strategy of focusing on affordable housing. The company till date has launched approximately 17 million sq. ft, mostly in this segment, and it has sold nearly seven million sq. ft. in different cities. Unitech is well on its course to achieve the targeted launch of 30 million sq. ft of projects during the current financial year," said Mr Sanjay Chandra, Managing Director, Unitech Ltd.
During the quarter, the company had outlined plans to launch projects with units starting at Rs 10 lakh under the brand UniHomes. The company had reserves and surplus of Rs 6,409 crore as of June 2009. Total loan outstanding was Rs 8,262 crore, at the end of the quarter, and less than Rs 7,000 crore by July end. It had Rs 625 crore in cash and bank balance as of June 30. At the end of the quarter, 37.05 per cent promoter holding was pledged.
Unitech had recently raised $900 million through two QIPs.
(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
