Market Outlook for 8th Oct 2009

INTRADAY calls for 8th Oct 2009

BUY LITL-491 for 508-519+ with sl 485

BUY IBR-279 for 286-293+ with sl 272

BUY BGREnergy-473 for 488-504+ with sl 468

BUY Uniphos-175 for 188+ with sl 171

 

Positional

BUY Cipla-281 for 300+ with sl 275

BUY Welguj-268 for 300+ with sl 260

BUY YesBank-208 for 225+ with sl 200

 

NIFTY FUTURE LEVELS
'SUPPORT
4952
4909
4866
RESISTANCE
4986
5003
5049
5092
5135
5179
Buy UNIMERS;BHANSALI ENGG 

 

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

IOB, Lupin, Pirmal Health, DCHL, Orchid Chem, Canara bank, Sesa Goa, Aurobindo Pharma, Jindal Saw & Yes Bank.

And this is list of 10 Weak futures:

Idea, Bharti Airtel, Rcom, TV-18, MTNL, Suzlon, Grasim, Finance Tech, Unitech & Tulip.
Nifty is in Up trend
 

NIFTY FUTURES (F & O): 
 Selling may continue up to 4952-4954 zone for time being.

Hurdles at 4986 & 5003 levels. Above these levels, expect short covering up to 5047-5049 zone and thereafter expect a jump up to 5090-5092 zone by non-stop.

Cross above 5133-5135 zone, can take it up to 5177-5179 zone by non-stop. Supply expected at around this zone and have caution.

On Negative Side, rebound expected at around 4909-4911 zone. Stop Loss at 4866-4868 zone.
 
Short-Term Investors:  
Bullish Trend. 3 closes above 4790.00 level, it can zoom up to 5155.00 level by non-stop. 

BSE SENSEX:  
Lower opening expected. Recovery should happen. 
Short-Term Investors:
 
Short-Term trend is Bullish and target at around 17671.82 level on upper side.
Maintain a Stop Loss at 16613.22 level for your long positions too.
 
POSITIONAL BUY:
Buy UNIMERS (BSE Cash) 
Bulls may hold on gains today.

1 Week: Bullish, as per current indications.

1 Month: Bullish, as per current indications.

3 Months: Surprisingly going up, opposite to bearishness.

1 Year: Bullish, as per current indications.
 
Buy BHANSALI ENGG (BSE Cash) 
Surprisingly gone up, and bulls may lose control today.

1 Week: Surprisingly going up, opposite to bearishness.

1 Month: Surprisingly going up, opposite to bearishness.

3 Months: Bullish, as per current indications.

1 Year: Bullish, as per current indications.

 

Global Cues & Rupee  
The Dow Jones Industrial Average closed at 9,725.58. Down by 5.67 points.
The Broader S&P 500 closed at 1,057.58. Up by 2.86 points.

The Nasdaq Composite Index closed at 2,110.33. Up by 6.76 points.

The partially convertible rupee INR=IN closed at 46.66/67 per dollar on yesterday, above its previous close of 46.89/90.

 

Interesting findings on web:
Investors braced for the start of earnings season by pulling out of AT&T, Verizon and other telecommunications companies, but buying banks such as Bank of America in a light-volume session Wednesday.

Stocks seesawed Wednesday, with blue chips weaker and techs a bit higher as a two-day advance petered out amid a mixed dollar, lower oil prices and some jitters at the start of the quarterly financial reporting period.

The Dow Jones industrial average fell 5.67, or 0.1 percent, to 9,725.58.

The Standard & Poor's 500 index rose 2.86, or 0.3 percent, to 1,057.58.

The Nasdaq composite index rose 6.76, or 0.3 percent, to 2,110.33.

RUSSELL602.080.10+0.02%

TRAN3783.864.22+0.11%

UTIL373.79-1.00-0.27%

S&P 100489.81.57+0.32%

S&P 400687.270.29+0.04%

NYSE6912.6512.97+0.19%

NAS 1001710.455.20+0.3%

For the week:

The Dow is up 237.91, or 2.5 percent.

The S&P is up 32.37, or 3.2 percent.

The Nasdaq is up 62.22, or 3.0 percent.

For the year:

The Dow is up 949.19, or 10.8 percent.

The S&P is up 154.33, or 17.1 percent.

The Nasdaq is up 533.30, or 33.8 percent.

"A lot of people are looking for every reason to not believe this rally," said Frank Ingarra Jr., co-portfolio manager of Hennessy Funds. "And while I think it's for real, there is real risk in the short term as this earnings season will have a big impact on what we do this winter."

"Investors are holding tight here," said Eric Ross, director of research at Canaccord Adams. "There are people on both sides of the fence. A lot of people think this market is going to keep running and running and then others that are very nervous."

Many investors are waiting to see how the earnings turn out before they either pile back into stocks in a big way or back out more aggressively. Currently, analysts expect third-quarter profits to have fallen around 24% versus a year ago, with the heaviest percentage losses expected in the materials, energy and industrials' sectors.

Investors are cautious both about earnings and because of the fast pace of the run since the March lows, said Harry Clark, founder and CEO at Clark Capital Management Group.

"I think people are looking at the weakness in the jobs market and the run-up stocks have already seen, and they're a bit nervous," Clark said.

However, he said that the last few days have indicated that any small selloff will be greeted with renewed buying interest. Also, as the end of the year draws nearer, hedge funds and portfolio managers will have to turn more cash into investments. That could give the market a year-end boost.

Investors are aware that October has historically been a tough month, Clark said, citing the 1929 and 1997 crashes and major selloffs in the late '70s. But it can also be a positive month, particularly when it follows a strong September, like it did this year.

Besides, 2009 has been a year that has consistently defied historical trends.

Since bottoming at a 12-year low on March 9, the S&P 500 has gained 56%, and the Dow has gained 49% as of Tuesday's close. After hitting a six-year low, the Nasdaq has gained nearly 68%.

Fred Dickson at DA Davidson & Co said the market has shown resilience in the face of any selling pressure.

"The stock market rally over the last couple of days once again leads us to conclude that institutional investors with lots of cash are continuing to scramble to put money to work in the stock market on small dips," he said.

"The stock market also appeared to be helped by global traders moving money into stocks as a hedge against continuing dollar weakness."

Investors should purchase stocks during declines in the market and "stay bullish" because the rebound in the S&P 500 is "quite moderate" compared with past recoveries from bear markets, wrote a team of Bank of America Corp. (NYSE: BAC) analysts led by chief U.S. equity strategist David Bianco. Over the last seven months, the S&P 500 has recouped about 43 percent of its tumble from a record in October 2007, compared with an average recovery of 65 percent by this point, the analysts wrote.

"This rally hardly seems overdone to us," the analysts wrote. A decline of 5 percent to 10 percent in the S&P 500 "would not be surprising, but we would view such a pullback as a buying opportunity," they wrote.

Techs started to push higher after an analyst upgrade on Cisco. Banks also gained after a couple of upgrades on the sector recently as analysts say stocks valuations are too low for earnings potential.

Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500), 3M (MMM, Fortune 500) and Travelers Companies (TRV, Fortune 500) were among the biggest decliners on the blue-chip average. They were also among the biggest gainers in the early-week rally.

But a late-session rally in a variety of financial stocks gave the market a boost.

Among the leading financials, Bank of America climbed 35 cents, or 2.1%, to 17.35, and Fifth Third gained 28 cents, or 2.8%, to 10.15.

Commodities companies were also strong again, aided by more gains for metals prices and continued weakness for the dollar. Mining giant Freeport-McMoRan was particularly strong, up 3.17, or 4.6%, to 72.78.

Oil and gas giant ConocoPhillips rose 1.29, or 2.7%, to 49.70, after saying it would trim $10 billion in assets over the next two years, cut expenditures and raise dividends in a bid to shore up its finances and restore confidence among investors.

Telecom giants AT&T and Verizon Communications paced the index lower as the Federal Communications Commission chairman said he intends to proceed with Internet openness rules for cellular carriers. AT&T closed down 56 cents, or 2.1%, to 26.18, while Verizon fell 31 cents, or 1%, to 29.38.

In other trading, shares of Verisk Analytics Inc. shot up 23.7 percent in their market debut, rising $5.22 to $27.22. The insurance data specialist raised $1.9 billion in one of the year's largest initial public offerings.

DuPont [DD  31.76    -0.13  (-0.41%)   ] slipped 0.3 percent after the chemicals maker said it doesn't expect earnings to match 2008 levels until 2012.

Financials gained 1.2 percent after Wells Fargo raised its rating on Bank of America [BAC  17.35    0.35  (+2.06%)   ] to "outperform," the latest in the string of upgrades on the sector.

Bank of America was the second-biggest percentage gainer on the Dow, up 2.1 percent, followed by JPMorgan [JPM  45.71    0.80  (+1.78%)   ], up 1.8 percent.

Citigroup [C  4.64    -0.03  (-0.64%)   ] shed 0.6 percent. The bank is said to be exploring a possible sale of its Phibro commodities unit — that's the one with the star trader due a $100 million pay package.

Cisco [CSCO  23.61    0.26  (+1.11%)   ] gained 1.1 percent after a William Blair analyst upgraded his rating on the stock to "outperform" from "market perform." The analyst said Cisco is winning new deals and generally benefiting from the recovery amid pent-up demand.

Microsoft [MSFT  25.09    -0.02  (-0.08%)   ] finished flat after CEO Steve Ballmer said he doesn't expect the launch of Windows 7 to boost PC sales.

Amazon [AMZN  93.97    3.06  (+3.37%)   ] was the top percentage gainer on the Nasdaq, up 3.4 percent, after the online marketplace lowered the price of its Kindle e-reader, while expanding its marketing overseas.

Google [AMZN  93.97    3.06  (+3.37%)   ] jumped 3.8 percent after the search engine said the worst of the advertising slump was over.

Rumor has it that News Corp. [NWS  13.68    0.09  (+0.66%)   ] chief Rupert Murdoch is in Asia right now, scouting out potential partners for his own e-reader. Shares of News Corp. rose 0.7 percent.

Anheuser-Busch InBev [BUD  46.65    -0.01  (-0.02%)   ] announced that it's selling its theme-parks division, which include SeaWorld and Busch Gardens, to private-equity firm Blackstone Group for at least $2.3 billion.

Avis Budget Group [CAR  12.50    -0.78  (-5.87%)   ] dropped 5.9 percent after the car-rental company warned that a transaction against it could impact earnings. Avis on Tuesday offered $250 million in notes along with a warrant transaction.

And Burger King [BKC  17.47    0.09  (+0.52%)   ] rose 1.2 percent after the fast-food chain announced an extensive revamp of its 12,000 worldwide locations.

Coca-Cola Co. (NYSE: KO) gained 0.9 percent to $54.81. The largest soft-drink maker was raised to "buy" at Deutsche Bank, which cited a "better currency and commodity outlook, stable volumes and improved domestic bottler relations."

Video game publisher Electronic Arts was another NASDAQ stock flying high after it said it sales of FIFA 2010 hit a record 1.7m copies in the first week of release in Europe.

Housebuilders such as Pulte, KB Homes and D R Horton were hit by speculation from Deutsche Bank that US lawmakers may not extend a tax credit to first-time house buyers when the tax break expires in November.

S&P 500 - Risers

Wyndham Worldwide (WYN) $17.47 +7.44%

Freeport Mcmoran B (FCX) $73.00 +4.87%

Estee Lauder Cos Inc. (EL) $38.56 +4.44%

Halliburton Co (HAL) $28.05 +4.43%

Micron Technology (MU) $8.22 +4.18%

Google Inc. (GOOG) $517.60 +3.78%

S&P 500 - Fallers

Pulte Homes Inc. (PHM) $10.06 -3.82%

AT&T Inc. (T) $26.18 -3.57%

Lennar Corp. Class A (LEN) $13.21 -3.44%

Cephalon Inc. (CEPH) $54.50 -2.83%

Interpublic Group (IPG) $6.91 -2.83%

Lockheed Martin Corp. (LMT) $74.03 -2.82%

Dow Jones I.A - Risers

Alcoa Inc. (AA) $14.20 +2.23%

Bank Of America Corp. (BAC) $17.35 +2.06%

JP Morgan Chase & Co. (JPM) $45.70 +1.76%

American Express Inc. (AXP) $33.99 +1.40%

International Business Machines Corp. (IBM) $122.70 +1.11%

Cisco Systems Inc. (CSCO) $23.58 +0.99%

Dow Jones I.A - Fallers

AT&T Inc. (T) $26.18 -3.57%

Verizon Communications Inc. (VZ) $29.38 -2.62%

Travelers Company Inc. (TRV) $48.93 -1.21%

3M Co. (MMM) $73.12 -1.10%

Merck & Co. Inc. (MRK) $32.19 -0.98%

Hewlett-Packard Co. (HPQ) $46.56 -0.96%

Earnings season unofficially kicked off after the bell today, with the first Dow component, Alcoa [AA  14.20    0.31  (+2.23%)   ], reporting after the bell.

Analysts say companies are going to have to bring it this quarter: They're looking for revenue growth, not just an improved bottom line due to cost-cutting measures. Plus, they'll also be looking at companies' outlooks for signs of the recovery.

And that's exactly what Alcoa delivered: The aluminum giant beat on both earnings and revenue.

Alcoa was the biggest gainer on the Dow, up 2.2 percent, during regular trading, and

After the bell, the stock jumped more than 5 percent.

Still, the overall season is expected to be bumpy: The current expectations are for a 25-percent drop in the blended earnings of S&P 500 companies.

Aluminum maker Alcoa Inc. was the first of the 30 companies that make up the Dow Jones industrial average to report results after the end of trading. The company's revenue and earnings topped expectations.

Alcoa's report is typically seen as the symbolic start of the reporting period, as it is usually the first Dow component to report.

Alcoa, the largest U.S. aluminum producer, reported an unexpected third-quarter profit as it benefited from rising metal prices and cost reduction by slashing jobs and raw-material costs.

    The company achieved a profit of 4 cents a share, exceeding analysts' average estimate for a 9-cent loss. Net income fell to 77 million U.S. dollars, or 8 cents a share, from 268 million dollars, or 33 cents, a year earlier. Revenue tumbled 34 percent to 4.62 billion dollars from the same period a year earlier, but was up 9 percent from the second quarter of 2009.

    Alcoa is the first among 30 Dow component companies to report the third quarter results and its rosy results were a relief after three straight quarterly losses, as investors desired to look for more evidence of economic recovery.

While it was a positive omen, investors are likely going to remain on edge until the end of the month, when a majority of the earnings have been released.

"In the vaccuum of earnings news, Alcoa's results are good, particularly because they beat on revenue," said Donald Selkin, chief market strategist at National Securities.

"But Alcoa will only have a nominal effect on the market Thursday," he said, noting that it is the least-influential component on the price-weighted Dow. "Next week brings the heavyweights."

Intel (INTC, Fortune 500), Google (GOOG, Fortune 500), Goldman Sachs (GS, Fortune 500) and a number of other financials are on the docket for next week.

Financials are expected to post the best results of any sector, due to easy comparisons against an abysmal third quarter of 2008. The sector is expected to see earnings growth of 59%.

The broad S&P 500 is expeced to see a drop in profits for the ninth quarter in a row, the worst since Thomson began tracking results a decade ago.

Early on Wednesday, Family Dollar Stores Inc. (NYSE: FDO: 28.2, -0.28) reported that fourth-quarter earnings were $60 million, or 43 cents a share, compared to $53 million, or 38 cents a share, in the year-ago period. Revenue rose to $1.81 billion from $1.77 billion a year ago. For fiscal 2010, the company expects net sales will increase 5% to 7% and same-store sales to grow 3% to 5%. Shares fell 27 cents or 0.95% to $28.21.

Among the earnings reports trickling in Wednesday, Costco Wholesale Corp. said profits fell 6 percent, partly due to a stronger dollar and increased employee benefit costs, but results still beat analysts' expectations. Shares rose $1.07 to $59.

Monsanto Co., the world's biggest seed maker, said its loss widened to $233 million as revenue fell. Adjusted earnings narrowly beat estimates. Shares fell $1.03 to $74.33.

JPMorgan Chase & Co call options look attractive ahead of its Oct. 14 quarterly earnings. "We expect the stock to go higher," wrote Goldman Sachs derivative strategists in a note. Goldman rated the stock conviction buy, with 20 percent upside to their 12-month, $54 price target.

The strategists estimate JPMorgan options are pricing in a 5 percent up or down swing on earnings, in line with the historical average earnings move for the stock. With term structure downward sloping and JPMorgan reporting just before October expiration, Goldman said it prefers buying November options. With the stock currently trading at $44.91, they recommend buying November $46 calls for $2.20.

Call buyers risk losing the full premium paid.

It was light on the economic news today but a couple of quick points: Mortgage applications rose to their highest level since mid-May as interest rates continued to drop.

And consumer borrowing fell for a seventh straight month as more Americans opted to pay off debt and banks cut credit-card limits.

VIX24.68-1.02-3.97%.

Oil,Gold & Currencies:

U.S. light crude oil for November delivery fell $1.31 to settle at $69.57 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $4.70 to settle at $1,044.40 an ounce after ending the previous session at a record $1,039.70. The previous record close of $1,020.20 was set two weeks ago.

The dollar gained versus the euro and fell against the yen, reversing its recent slide against a basket of currencies.

Oct. 8 (Bloomberg) -- The dollar fell toward a two-week low against the euro as signs the global economy is recovering spurred demand for higher-yielding assets.

The U.S. currency dropped against 15 of its 16 major counterparts as Asian stocks gained before reports that economists say will show German industrial output rose for a second month and Japan's machine orders advanced in August. The Australian dollar jumped to a 14-month high after employment unexpectedly increased in September.

"People believe that the worst is over, which makes sense," said Phil Burke, chief dealer for foreign-exchange spot trading at JPMorgan Securities in Sydney. "Overall, the dollar is still in a mid-term downtrend."

The dollar fell to $1.4748 per euro at 10:50 a.m. in Tokyo from $1.4691 in New York yesterday. It touched $1.4762 on Oct. 6, the lowest since Sept. 24. The euro was at 130.38 yen from 130.18 yen. The yen was at 88.41 per dollar from 88.61. Yesterday it rose to as high as 88.01, the strongest level in more than eight months.

The MSCI Asia Pacific Index of regional shares rose 1.3 percent, and Japan's Nikkei 225 Stock Average added 0.5 percent. The Standard & Poor's 500 Index increased 0.3 percent in New York yesterday, while gold climbed to a record for the second straight day.

The dollar declined as economists in a Bloomberg News survey forecast German industrial output expanded 1.8 percent in August following a 0.9 percent drop in July. The Economy Ministry in Berlin is set to report the data today.

A separate survey forecast Japan's factory output gained 2.1 percent in August following a 9.3 percent drop in July. The data is due tomorrow in Tokyo.

'Rebounding'

"The global economy is rebounding," said Adam Carr, a senior economist at ICAP Australia Ltd. in Sydney. "That's what the equity market is telling us and commodity markets are telling us. On that basis, I'm bullish on the euro."

The European Central Bank will hold its main refinancing rate at a record low of 1 percent, and the Bank of England will keep its main rate at an all-time low of 0.5 percent, according to Bloomberg surveys. Both central banks meet today.

The Federal Reserve will start raising its benchmark rate in the third quarter of 2010, according to analysts' forecasts compiled by Bloomberg.

Australia's dollar rose as much as 1.2 percent to 90.18 U.S. cents, the highest level since August 2008, from 89.12 cents yesterday in New York.

The number of people employed rose 40,600 last month from August, the statistics bureau said in Sydney today. The median estimate of 20 economists surveyed by Bloomberg was for a decline of 10,000. The jobless rate fell to 5.7 percent from 5.8 percent.

'Uncomfortable' Level

New Zealand's dollar climbed to 73.95 U.S. cents from 73.64 yesterday. Earlier it touched 74.21 cents, the strongest since July 2008. New Zealand Finance Minister Bill English said he's "uncomfortable" with the level of its currency.

"Generally when we've had a recession, a low dollar has helped us kick-start out of that recession," English said in an interview in London late yesterday. "That's clearly not going to be the case this time."

New Zealand is being "bundled" with Australia by investors when its economy has not performed as well, exacerbating the currency's strength, he said.

Bonds:

Treasury prices rallied, lowering the yield on the 10-year note to 3.19% from 3.25% late Tuesday. Treasury prices and yields move in opposite directions. 

What to expect:

THURSDAY: Chain-store sales; foreclosure report; BOE, ECB rate decisions; weekly jobless claims; wholesale trade; Fed's Hoenig speaks; Earnings from Pepsi, Marriott, Chevron (interim)

FRIDAY: Market peak 2-year anniversary (Dow at 14,164.53); international trade

Australia September Jobs Surge, Unemployment Dips

Australian employment surged past all expectations in September and the jobless rate dropped in what might be a turning point months earlier than anyone thought, adding to the case for more rises in interest rates this year.

US Justice Department Opens IBM Antitrust Probe

The U.S. Justice Department has opened an investigation into allegations that International Business Machines [IBM  122.78    1.43  (+1.18%)   ] abused its dominance of the mainframe business to squeeze rivals, said Computer and Communications Industry Association chairman Ed Black on Wednesday.

Alcoa's Profit a Positive Start For 'Show Me' Earnings Season

Third-quarter earnings got off to a positive start Wednesday with Alcoa's surprising profit, but investors will be watching corporate results closely in the coming weeks to see if they justify a continued rally in stock prices.

Fresh Quakes Renew Tsunami Fears for Pacific

Pacific nations braced for a fresh tsunami on Thursday after two huge subsea quakes struck the region, sending islanders fleeing for higher ground, only a week after a series of deadly tsunamis devastated the Samoa islands.

Celebrity photographer Irving Penn dies

Irving Penn, whose photographs revealed a taste for stark simplicity whether he was shooting celebrity portraits, fashion, still life or remote places of the world, died Wednesday at his Manhattan home. He was 92.

Baucus Health-Care Bill Would Cost $829 Billion

Health care legislation drafted by a key Senate committee would expand coverage to 94 percent of all eligible Americans at a 10-year cost of $829 billion, congressional budget experts said Wednesday, a preliminary estimate likely to power the measure past a major hurdle within days. 

Obama, Lawmakers, Weigh New Steps to Spur Economy

U.S. President Barack Obama met on Wednesday with the two top Democrats in Congress to discuss ways to spur the economy and reverse a climb in the U.S. unemployment rate, which is now at a 26-year-high.

Asia:

Asian stocks advanced for a third day, driving the MSCI Asia Pacific Index to a two-week high, after Australian employers unexpectedly added workers last month and Alcoa Inc. reported earnings that beat analyst estimates.

National Australia Bank Ltd. climbed 4.1 percent after the statistics bureau said the country's jobless rate fell. Alumina Ltd., Alcoa's partner in the world's biggest producer of the material used to make aluminum, climbed 5.2 percent in Sydney. Mitsui O.S.K. Lines Ltd. and Nippon Yusen K.K., Japan's two largest shipping lines, climbed more than 6 percent after being upgraded at Bank of America-Merrill Lynch.

The MSCI Asia Pacific Index climbed 1.2 percent to 118.53 as of 11:31 a.m. in Tokyo, set to close at the highest level since Sept. 23. The gauge has climbed 68 percent from a five- year low on March 9 as better-than-estimated economic and earnings reports boosted speculation the global economy is recovering from the worst slowdown since World War II.

"Valuations are no longer particularly cheap in Asia, but they don't appear to be overly excessive either," said Robert Horrocks, who helps manage $9.9 billion including Asian equities at Matthews International Capital Management LLC. "Markets now are going to be driven by the ability of companies to sustain a reasonable level of growth over the long term."

Australia's S&P/ASX 200 Index climbed 1.4 percent, the biggest advance in the region, as the statistics bureau said in Sydney today that the number of people employed rose 40,600 from August. The median estimate of economists surveyed by Bloomberg was for a decline of 10,000.

Alcoa Profit

Japan's Nikkei 225 Stock Average added 0.5 percent, while Hong Kong's Hang Seng Index gained 0.4 percent. All key indexes in the region advanced except in the Philippines. China's markets resume trading tomorrow after an eight-day holiday.

Futures on the U.S. Standard & Poor's 500 Index climbed 0.9 percent. The gauge added 0.3 percent yesterday as Alcoa, the largest U.S. aluminum producer, reported third-quarter profit, while analysts had estimated a loss. The company was the first in the Dow Jones Industrial Average to release results.

"The chances are high that other U.S. companies will follow Alcoa in reporting better-than-expected results and have positive impacts on markets here," said Kenichi Hirano, general manager at Tokyo-based Tachibana Securities Co.

National Australia, the country's third-largest bank by value, climbed 4.1 percent to A$31.24. Commonwealth Bank of Australia, the nation's largest, gained 2.9 percent to A$52.80. Fairfax Media Ltd., Australia's second-largest newspaper owner, rose 4.4 percent to A$1.65 on optimism an economic revival will help boost advertising revenue.

Risk of Contraction

Two days ago, Australia became the first country in the so- called Group of 20 nations to boost borrowing costs since the start of the credit crisis. The "risk of serious economic contraction" has passed, Glenn Stevens, governor of the Reserve Bank of Australia, said the same day.

Alumina jumped 5.2 percent to A$1.94. Alcoa's third-quarter profit excluding certain items of 4 cents a share exceeded the average analyst estimate for a 9-cent loss as metal prices climbed and the company cut costs.

In Tokyo, Mitsui O.S.K. surged 6.6 percent to 569 yen, Nippon Yusen gained 8.2 percent to 371 yen and Kawasaki Kisen Kaisha Ltd. advanced 9.1 percent to 371 yen.

BOA-Merrill lifted its ratings on all three shipping lines to "neutral" from "underperform." The Baltic Dry Index, a measure of rates for shipping commodities, also rose 4.3 percent yesterday in London, the most in almost three months. 

Nikkei 225 9,849.41     +49.81 ( +0.51%). (08.47 AM IST)

Japan's Nikkei average rose 0.5 percent on Thursday as exporters such as Tokyo Electron (8035.T: Quote, Profile, Research) gained on short-covering, while Nikon Corp (7731.T: Quote, Profile, Research) jumped after a brokerage upgrade.

Shipping firms extended gains after the Baltic Exchange's main sea freight index .BADI rose to a seven-week high on Wednesday with expectations of fresh Chinese demand driving momentum.

After moving in and out of negative territory, the benchmark Nikkei .N225 ended the morning up 49.81 points at 9,849.41. It advanced 1.1 percent the previous day.

The broader Topix .TOPX gained 0.5 percent to 889.80.

HSI 21312.21 +70.62 +0.33% .(08.49 AM IST)

Hong Kong shares stretched their winning run to a fourth straight session Thursday after a mixed finish on Wall Street, with commodity producers and property developers in the lead. The Hang Seng Index rose 0.4% to 21,319.91, and the Hang Seng China Enterprises Index rose 0.4% to 12,365.02 in early trading. The performance of the three new stocks that listed Thursday was mixed after opening higher. Shares of China Vanadium Titano-Magnetite Mining /quotes/comstock/22h!893 (HK:893 0.00, 0.00, 0.00%) opened at 3.57 Hong Kong dollars (46 U.S. cents) versus its initial public offering at 3.50 Hong Kong dollars, but later eased to 3.47 Hong Kong dollars. But Yingde Gases /quotes/comstock/22h!2168 (HK:2168 0.00, 0.00, 0.00%) rose to 7.36 Hong Kong dollars from its IPO at 7 Hong Kong dollars, while Ausnutria Dairy /quotes/comstock/22h!1717 (HK:1717 0.00, 0.00, 0.00%) climbed to 4.34 Hong Kong dollars from its IPO at 4 Hong Kong dollars. 

SHANGHAI STOCK EXCHANGE:

•The SSE will close from October 1 (Thursday) to October 8, 2009 (Thursday) and open for trading on October 9, 2009 (Friday).   

 

Hang Seng Index opens 176 points higher on Thu 

ZTE says no interest in buying Nortel assets 

Morgan Stanley retains "neutral" rating for China High Speed 

Tsinghua Holdings to issue RMB 1 bln in short-term bills 

PCCW Chairman Li raises his stake again 

Beijing Capital Land's contracted sales hit RMB 1.4 bln in Sep 

COFCO Property to raise up to RMB 3.54 bln 

Yum Brands profit in China up 32% in Q3 

Pudong Dev't Bank raises RMB 15 bln through private placement 

Taiwan's exports hit US$19.07 bln in September 

Guangzhou R&F Property to issue RMB 5.5 bln in bonds in Oct 

NWS Holdings net profits down 34% in FY 2009 

Primus Financial Holdings wins bid for AIG's Taiwan business 

China bolsters global luxury car market in Sep 

China Minsheng Bank to seek controlling stake in UCBH

GlaxoSmithKline to set up child vaccine JV in China 

New World Department Store accelerates mainland expansion

U.S. oil giant ConocoPhillips selling assets to improve financial position  
 
INVESTMENT VIEW
C&C Constructions Limited

FY09 (Jun) EPS Rs 22; Revenues Rs 750 crore, PAT Rs 41 crore
 
 
As a footnote to the Consolidated Annual Results for the year ending June 2009, C&C Construction has disclosed that it has bagged the Rigid Pavement and Granular Layer Packages C1 and C2 for the prestigious Yamuna Expressway commencing milestone 0.500 to 110 kms; worth Rs 375 crore. 
The corporate which has dominated road construction in Bihar, Afghanistan and other parts of India now carries an order book in excess of Rs 3000 crore.

(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.)
 

 

SPOT LEVELS TODAY

	4985.75	( -0.83 %)	-41.65
		1	2	3
Resistance		5050.85	5115.95	5154.90
Support		4946.80	4907.85	4842.75

FUN

	16806.66		( -0.90 %)	-151.88
			1	2	3
Resistance			17030.12	17253.59	17386.61
Support			16673.63	16540.61	16317.14

FUNDS 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-Oct-2009	4007.09	3372.55	634.54

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	07-Oct-2009	1668.72	1367.12	301.6

 

 

 

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Arvind Parekh

+ 91 98432 32381