Market Outlook for 9th Oct 2009

INTRADAY calls for 9th Oct 2009
+ve Script,Sector : FMCG GodrejCP, Thermax, FIEMind,
SyndiBank,Divislab, UBHolding
BUY Punjlloyd-277 for 286+ with sl 274
BUY Voltas-156 for 166+ with sl 152.50
BUY RELInfr-1331 for 1366-1379+ with sl 1317
BUY STER-820 for 839-849+ with sl 813

Breakout
BUY MLL-64 for 79+ with sl 61
BUY Indusind-117 for 123+ with sl 114

Positional
BUY RELInfr-1331 for 1366-1379+ with sl 1317
BUY Pratiba-221 for 249-265+ with sl 215
BUY RECltd-209 for 247+ with sl 200

Expected Breakout
BUY BGREnergy-483 above 495 for 609+ with sl 480
BUY Balramchin-131 above 133 for 141+ with sl 127

 

NIFTY FUTURE LEVELS
RESISTANCE
5022
5034
5054
5064
5084
SUPPORT
4992
4982
4950
4930
4920
4900
Buy VISHNU CHEMICALS;PASSARI CELLULOS

stocks that are in news today:
-Pipavav Shipyard to list today, issue price Rs 58/share
-ICICI Bank reduces auto loan rates by 50 bps to 10.75-11%
-MTNL eyes Zamtel, owned by Zambia government which has put 75% in the block, deal valued at $200 million
-Reliance Capital plans investment banking foray by March – Agencies
-Siemens bags order worth Rs 403 crore from Qatar
-TV18 rights issue closing date extended to October 14 from October 13 ((due to Maharashtra elections))
-39.76 lakh Axis Bank shares to hit market ((preferential issue))
-Ispat still in NSE F&O curb, Kingfisher comes out
-Board meets: Veer Energy on fund raising
-Ex-bonus: Sundaram Clayton @ 1:1
-Ex-split: Sunteck Realty from Rs 10 to Rs 2

 

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

DCHL, IOB, Aurobindo Pharma, Lupin, Jindal Saw, Orchid Chem, KFA, Canara bank, HDIL & Nagarjuna Const.

And this is list of 10 Weak futures:

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

 

NIFTY FUTURES (F & O):  
Above 5022 level, rally may continue up to 5032-5034 zone and thereafter expect a jump up to 5052-5054 zone by non-stop.

Support at 4982 & 4992 levels. Below these levels, expect profit booking up to 4950-4952 zone and thereafter slide may continue up to 4930-4932 zone by non-stop.

Buy if touches 4920-4922 zone. Stop Loss at 4900-4902 zone.

On Positive Side, cross above 5062-5064 zone can take it up to 5082-5084 zone by non-stop. If crosses and sustains this zone then uptrend may continue.
 
Short-Term Investors:  
Bullish Trend. 3 closes above 4790.00 level, it can zoom up to 5155.00 level by non-stop. 

BSE SENSEX:  
Higher opening expected. Uptrend should continue. 

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 VISHNU CHEMICALS (BSE Cash) 
Surprisingly gone up, and bulls may lose control today.

1 Week: Bullish, as per current indications.

1 Month: Surprisingly going up, opposite to bearishness.

3 Months: Surprisingly going up, opposite to bearishness.

1 Year: Bullish, as per current indications.
 
Buy PASSARI CELLULOS (BSE Cash) 
Surprisingly gone up, and bulls may hold on gains today.

1 Week: Bearish, as per current indications.

1 Month: Bearish, as per current indications.

3 Months: Bearish, as per current indications.

1 Year: Bullish, as per current indications
 
 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	08-Oct-2009	4090.81	4466.81	-376

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	08-Oct-2009	1810.13	1830.96	-20.83

Global Cues & Rupee 

The Dow Jones Industrial Average closed at 9,786.87. Up by 61.29 points.
The Broader S&P 500 closed at 1,065.48. Up by 7.90 points.

The Nasdaq Composite Index closed at 2,123.93. Up by 13.60 points.

The partially convertible rupee INR=IN ending at 46.34/35, above Wednesday's close of 46.66/67.
 
Interesting findings on web:
U.S. stocks rose on Thursday as a surprising quarterly profit from Alcoa Inc (AA.N) got third-quarter earnings off to a strong start.

Stocks rallied Thursday, with the major indexes flirting with 2009 highs, after Dow component Alcoa posted better-than-expected earnings and a report showed an unexpected drop in jobless claims.

The stock market resumed its rally after getting encouraging readings on two of the best gauges of the economy's health: consumer spending and corporate profits. Traders pounced on news that retailers last month had their first sales gains in more than a year. That followed late Wednesday's good news from Alcoa Inc. The company surprised investors with its first profit in nine months.

Alcoa gained 1.1 percent to $14.35 and rose as high as $15.10, a day after the Dow component posted its first profit after three consecutive quarterly losses, on cost savings and higher aluminum prices.

Despite the upbeat results from Alcoa and its strong move at the start of trading, the aluminum producer didn't end the day as a superstar, turning in a lacklustre 1.1 per cent gain. (Premarket activity had the stock pegged at a 7 per cent rise.)

The S&P materials index .GSPM gained 2 percent.

The Dow Jones industrial average rose 61.29, or 0.6 percent, to 9,786.87.

The Standard & Poor's 500 index rose 7.90, or 0.8 percent, to 1,065.48.

The Nasdaq composite index rose 13.60, or 0.6 percent, to 2,123.93.

RUSSELL607.755.67+0.94%

TRAN3868.3584.49+2.23%

UTIL374.961.17+0.31%

S&P 100492.632.83+0.58%

S&P 400697.129.85+1.43%

NYSE6990.6778.02+1.13%

NAS 1001717.797.34+0.43%

For the week:

The Dow is up 299.20, or 3.2 percent.

The S&P is up 40.27, or 3.9 percent.

The Nasdaq is up 75.82, or 3.7 percent.

For the year:

The Dow is up 1,010.48, or 11.5 percent.

The S&P is up 162.23, or 18.0 percent.

The Nasdaq is up 546.90, or 34.7 percent.

Stocks steadily moved higher as the session wore on, with the Dow briefly posting triple-digit gains, as 21 of 30 components rose.

The rally lost some of its steam in the afternoon as the latest U.S. bond auction was poorly received after two previous successful debt sales, prompting some investors to trim holdings in U.S. assets.

Adding to positive sentiment, U.S. retailers posted generally strong same-store sales figures, while the Labor Department said the number of U.S. workers filing new jobless claims slid to a nine-month low last week.

"You had more positive economic news, and Alcoa numbers were better than expected on both revenue and net income. So that lends credibility to the bulls' thesis that the economy is gaining momentum," said Jim Awad, managing director at Zephyr Management in New York.

U.S. retailers posted their first monthly sales increase in more than a year, suggesting that recession-battered consumers might be regaining their ability, and desire, to spend again.

"I think the market is clearly moving on expectations of better-than-expected earnings," said Tom Hepner, financial adviser at Ruggie Wealth Management. "But I'm just not sure we're going to see that. There are still plenty of reasons to think that the market has gotten ahead of the recovery."

Third-quarter S&P 500 earnings as a whole are expected to decline more than 20% from a year ago, with materials, energy and industrials leading the decline. That means S&P 500 earnings will have slumped for nine straight quarters, the longest streak since earnings tracker Thomson began calculating the numbers.

But separate from the big picture, Wall Streeters are looking to see if individual companies are starting to see any earnings growth, beyond the impact of cost-cutting. In the second quarter, more than 70% of companies reported results that topped estimates, due to reducing costs. But few market-moving companies reported sales growth or revenue that topped estimates.

Cost-cutting is expected to continue to drive results this quarter, but topline growth could be improving at least in some sectors, if Alcoa is an indication.

The aluminum maker reported quarterly earnings and revenue that dropped from a year ago, but handily beat estimates. Shares rallied in extended-hours trading and also gained 2% Thursday.

"Alcoa set the tone and backed it up," said Michael Feser, president of Zecco Trading.

Around 521,000 Americans filed new claims for unemployment last week versus forecasts for 540,000, the Labor Department reported. The number was the lowest in more than 9 months. Around 554,000 Americans filed unemployment claims in the previous week.

Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 6.040 million from 6.112 million the previous week.

The Commerce Department said wholesale inventories fell 1.3% in August versus forecasts for a drop of 1%. Inventories fell 1.6% in the previous month.

Investors were encouraged that consumer spending could finally be starting to recover. Retailers last month saw their first sales gains in more than a year. A closely watched gauge of sales at major retailers showed an increase of 0.1% for September, compared with a 1.0% drop a year ago.

While still tepid, it was the first monthly gain in the International Council of Shopping Centres-Goldman Sachs tally since July 2008.

"People are dialing up their equity exposure a bit, particularly with the Alcoa earnings," said Kevin Kruszenski, head of listed trading at KeyBanc Capital Markets in Cleveland.

Bank of America-Merrill Lynch put out a note today with six reasons why investors should stay bullish on stocks, including the fact that earnings are on track for sustainable year-over-year growth starting in the fourth quarter, and that valuations remain attractive.

The Federal Reserve said commercial paper jumped by $US67.6 billion this week, a substantial increase.

A weak dollar, along with rising oil and gold prices, gave a lift to dollar-sensitive multi-nationals such as Dow components 3M (MMM, Fortune 500), GE (GE, Fortune 500) and Johnson & Johnson (JNJ, Fortune 500). The oil rise lifted Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500) and other commodity names.

Store chains such as Macy's Inc (M.N) rose 5.1 percent to $19.53 and Abercrombie & Fitch Co (ANF.N) gained 5.5 percent to $34.46. Kohl's Corp (KSS.N) rose 2.4 percent to $59.97. The Standard & Poor's Retail Index .RLX added 1.8 percent.

Target [TGT  49.35    0.84  (+1.73%)   ] among the early winners, posting smaller declines than expected. Target also went so far as to say third-quarter earnings would beat expectations. Target advanced 1.7 percent.

Home builders' shares rallied as members of Congress discussed a possible extension of an $8,000 federal tax credit that covers first-time home buyers. The tax credit is set to expire on November 30. A Dow Jones index of home builders' stocks .DJUSHB rose 6.2 percent, its best day since mid-May.

U.S. crude oil futures prices gained $2.12, or 3 percent, to settle at $71.69 a barrel, pushing shares of Chevron (CVX.N) up 1.3 percent at $71.45.

On the Nasdaq, shares of Adobe Systems (ADBE.O) rose 3.2 percent to $34.33 after Deutsche Bank raised its price target on the company.

On the downside was PepsiCo (PEP.N), whose shares slipped 1.3 percent to $60.39 after the world's second-largest soft drink maker reported weaker-than-expected quarterly revenue on Thursday. Its profit, however, topped expectations.

Bill Stone, chief investment strategist at PNC Wealth Management, expects bearish traders will find fault with revenue figures that remain depressed from year-ago levels, as they did at PepsiCo ( PEP - news - people ) Thursday. The beverage maker lost 1.3% after its $11.1 billion quarterly sales was shy of estimates.

In other moves, American Express Co. rose 2.9 per cent, and Microsoft Corp. rose 2.3 per cent.

Rounding out the Dow's top three were Home Depot [HD  26.90    0.76  (+2.91%)   ] and DuPont [DD  32.59    0.81  (+2.55%)   ] — both stocks gained more than 2.5 percent.

Smallcap Century Aluminum (CENX.O), the only aluminum stock in the S&P 1500 other than Alcoa, jumped 11.7 percent to $10.78. Activity was heavy in the options market, where 12 call options (an option to purchase a stock by a given date and certain price) traded for every put option (an option to sell by a certain date and price).

The S&P MidCap Materials index .4GSPI gained 2 percent while the S&P SmallCap Materials index .6GSPI rose 1.8 percent.

Retailer American Eagle Outfitters Inc (AEO.N) rose 8.5 percent to $18.08. The company was one of several retailers to report better-than-expected monthly sales results and boost profit forecasts.

The teen apparel retailer was subsequently upgraded by Needham to "buy" from "hold."

The S&P MidCap 400 index .MID rose 1.2 percent while the S&P SmallCap 600 index .SML climbed 1.3 percent, outdistancing the 0.6 percent gain on the large cap S&P 500 .SPX.

Liz Claiborne (LIZ.N) surged 26.5 percent to $6.58 as the top-performing smallcap after agreeing to a deal with JC Penney Co (JCP.N) that will move its namesake brand into department stores.

Among the sector's biggest winners, Lennar [LEN  14.39    1.21  (+9.18%)   ] jumped 9.2 percent, while Hovnanian [HOV  4.30    0.33  (+8.31%)   ] gained 8.3 percent.

Techs were right back up there today, as investors are growing more optimistic about the recovery — and tech spending. Dell [DELL  15.82    0.46  (+2.99%)   ] rose 3 percent and Palm [PALM  17.01    0.57  (+3.47%)   ] gained 3.5 percent.

Barnes & Noble shares [BKS  21.00    -2.89  (-12.1%)   ] tumbled 12 percent after the bookseller predicted lackluster same-store sales for fiscal 2010. That came as a disappointment as the company's recent purchase of College Booksellers was expected to juice sales.

"Despite what mathematically looks like an accretive acquisition, our concern is that Barnes & Noble has doubled its exposure to technology change by acquiring another retailer that may be even more vulnerable to digitization than its core," Credit Suisse analyst Gary Balter wrote in a research note.

Outside of the rapidly digitizing book sector, retailers rallied as many beat September sales expectations, helped by a late Labor Day and delayed back-to-school shopping. Plus, a cool September helped several retailers that are more impacted by weather.

IBM [IBM  122.29    -0.49  (-0.4%)   ], however, faltered. The company is the subject of a Justice Department antitrust probe regarding its behavior in the mainframe computer market. IBM says there is no basis for any such claims.

It's been an active season as well for mergers and acquisitions, but one deal faces troubles: In a provisional ruling, Britain's competition regulator said a deal between Ticketmaster Entertainment [TKTM  11.90    -0.56  (-4.49%)   ] and Live Nation [LYV  8.14    -0.48  (-5.57%)   ] could lead to higher prices and less competition. The US Justice Department also is examining the deal, which was announced earlier this year.

Hotel operator Marriott International's shares slipped 0.8% after it posted a loss that was smaller than Wall Street forecasts.

Top Percentage Gainers S&P

LENLennar Corp9.2%DHID.R. Horton Inc8.0%NYTNew York Times Co7.0%ODPOffice Depot Inc6.7%IPInternational Paper Co6.5%BDKBlack & Decker Corp6.3%DNRDenbury Resources Inc6.3%EOGEOG Resources Inc5.9%MCOMoody's Corp5.7%MWWMonster Worldwide Inc

Top Percentage Losers S&P

WLPWellPoint Inc6.2%HUMHumana Inc5.3%CIENCiena Corp5.0%AIGAmerican International Group Inc4.7%BRCMBroadcom Corp4.7%AETAetna Inc4.4%CICigna Corp4.2%CVHCoventry Health Care Inc3.8%UNHUnitedHealth Group Inc3.6%MIMarshall & Ilsley Corp3.2%

Top Percentage Gainers NASDAQ

IPIIImperial Industries Inc34.2%CLWTEuro Tech Holdings Ltd30.7%TXICUTongxin International Ltd27.8%ASTCAstrotech Corp27.5%CARTCarolina Trust Bank23.0%PLUGPlug Power Inc21.8%CAMPCalAmp Corp20.9%SMCGUMillennium India Acquisition Co Inc19.4%BCARBank of the Carolinas Corp18.4%WSBWSB Holdings Inc

Top Percentage Losers NASDAQ

RPRXRepros Therapeutics Inc27.4%ELGXEndologix Inc19.7%IFSBIndependence Federal Savings Bank18.8%HWFGHarrington West Financial Group Inc15.2%JAXBJacksonville Bancorp Inc (FL)14.7%ROIARadio One Inc13.8%QGLYQuigley Corp13.4%CAFICamco Financial Corp13.0%PBHCPathfinder Bancorp Inc12.9%SVNTSavient Pharmaceuticals Inc11.8%

Top Percentage Gainers Dow

AXPAmerican Express Co2.9%HDHome Depot Inc2.9%DDE I du Pont de Nemours and Co2.6%CATCaterpillar Inc2.3%MSFTMicrosoft Corp2.3%MMM3M Co1.9%DISWalt Disney Co1.8%CVXChevron Corp1.3%PGProcter & Gamble Co1.2%UTXUnited Technologies Corp

Top Percentage Losers Dow

TRVTravelers Companies Inc1.2%TAT&T Inc0.9%JPMJPMorgan Chase & Co0.9%VZVerizon Communications Inc0.7%MCDMcDonald's Corp0.5%KOCoca-Cola Co0.4%IBMInternational Business Machines Corp0.4%HPQHewlett-Packard Co0.2%BACBank of America Corp0.1%

VIX24.18-0.50-2.03%.

Oil,Gold & Currencies:

U.S. light crude oil for November delivery rose $2.12 to settle at $71.69 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $11.90 to settle at a record $1,056.30 an ounce, the third straight record high for the precious metal.

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

The dollar rose against the yen for the first time in five days after Federal Reserve Chairman Ben S. Bernanke said the bank is ready to tighten monetary policy once the economy improves, increasing the appeal of U.S. assets.

The euro advanced against the yen after European Central Bank President Jean-Claude Trichet said yesterday the region's economy is emerging from a period of "free fall," damping demand for Japan's currency as a refuge. The Australian dollar headed for its biggest weekly gain since May amid wagers the central bank will raise interest rates twice more this year after a surprise increase on Oct. 6.

"Bernanke is shifting to a hawkish tone in terms of the timing of exit strategy following moves by other central banks, especially the Reserve Bank of Australia," said Takeshi Tokita, vice president of foreign exchange sales at Mizuho Corporate Bank Ltd. in Tokyo. "That's benefiting the dollar."

The U.S. currency strengthened to 89.06 yen as of 10:41 a.m. in Tokyo from 88.39 yen in New York yesterday. The dollar climbed to $1.4752 per euro from $1.4794. Europe's single currency rose to 131.32 yen from 130.76 yen.

Australia's dollar traded at 90.33 U.S. cents from 90.62 cents in New York yesterday when it touched 90.90 cents, the strongest level since Aug. 7, 2008.

The dollar gained against 15 of its 16 most-traded counterparts after Bernanke said in prepared remarks at a conference in Washington "when the economic outlook has improved sufficiently, we will be prepared to tighten."

Bernanke's comments echoed those by Kansas City Fed President Thomas Hoenig, who on Oct. 6 said raising interest rates wouldn't derail the U.S. economic recovery.

'Incremental Increases'

"Even if we were to start immediately, much time would pass before incremental increases could be considered tight or even neutral policy," Hoenig said in Denver. "I would not support a tight monetary policy in the current environment, but my experience tells me that we will need to remove our very accommodative policy sooner rather than later."

White House economic adviser Lawrence Summers repeated the administration's commitment to a strong dollar, citing recent comments by U.S. Treasury Secretary Timothy Geithner.

"He made it very clear that our commitment is to a strong dollar based on strong fundamentals," Summers said today at a forum in New York organized by Bloomberg LP, the parent of Bloomberg News.

Trichet signaled the ECB will keep interest rates at a record low to spur growth.

"The current rates remain appropriate," Trichet said at a press conference in Venice after policy makers left the main refinancing rate at 1 percent. "Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability," he said, reiterating the Group of Seven's statement on currencies.

Australia Rates

The yen dropped against all 16 of its major counterparts as a report showed Japan's machinery orders gained less than forecast as depressed demand forces companies to cut costs.

"The data adds to speculation Japan will be the last to recover," said Toshiya Yamauchi, a Tokyo-based manager of the foreign-exchange margin trading department at Ueda Harlow Ltd. "As other nations lead the global economic recovery, the yen will likely be sold as a funding currency."

Orders, an indicator of business spending in three to six months, advanced 0.5 percent in August after falling 9.3 percent in July, the Cabinet Office reported today in Tokyo. The median estimate of 27 economists in a Bloomberg News survey called for a 2.1 percent gain.

The yen is likely to weaken over the next 12 months as "momentum" fades from a tax break on overseas earnings, according to Brown Brothers Harriman & Co. Since April 1, Japanese exporters have been able to bring back income earned outside the country without paying the combined 40 percent tax.

'Momentum Trading'

"It's largely momentum trading right now and we're pushing it because we haven't reached a pain threshold of anything to stop us," said Marc Chandler, global head of currency strategy at Brown Brothers in New York. "The reason the Japanese stock market underperforms despite having a strong yen is precisely because they have a strong yen. It's eroding corporate profits."

Japan's currency will probably fall to between 105 and 110 versus the dollar in the next 12 months, Chandler predicted.

Australia's currency has gained 4.4 percent this week versus its U.S. counterpart, the most since the five days ended May 8. Investors are certain the Reserve Bank of Australia will raise the overnight cash rate target on Nov. 3 by a quarter percentage point, according to Bloomberg calculations based on interbank futures on the Sydney Futures Exchange.

They're wagering on a 96 percent chance he follows with another increase in December to end the year with a cash rate at 3.75 percent.

Bonds:

Treasury prices tumbled, raising the yield on the 10-year note to 3.24% from 3.18% late Wednesday. Treasury prices and yields move in opposite directions. 

What to expect:

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

Bernanke Sees Tighter Policies as Economy Heals

Federal Reserve Chairman Ben Bernanke said on Thursday that while the U.S. central bank's vast support for the economy will likely be needed for a while, the Fed will have to remove those measures as the economy heals to ward off inflation.

The Fed has cut interest rates to near zero percent and pumped hundreds of billions into the financial system to counter the worst financial crisis since the Great Depression.

"Accommodative policies will likely be warranted for an extended period," he said in remarks prepared for delivery at a monetary policy conference at the Fed.

"At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road."

Bernanke, in a detailed description of the bank's balance sheet -- which has ballooned from around $900 billion to near $2.1 trillion -- said the Fed has the tools and the ability to pull back its flood of cash and loans to the economy and to raise interest rates when the time is right.

"When the economic outlook has improved sufficiently, we will be prepared to tighten the stance of monetary policy and eventually return our balance sheet to a more normal configuration," Bernanke said.

As the economy appears to be pulling out of a painful and lengthy recession, observers are watching closely for signs of when and how quickly the Fed intends to pull back its help.

Bernanke said the Fed could remove its easy money policies even while its balance sheet remains bloated.    

To do so, it would raise interest rates on reserve balances that banks keep at the Fed and by other actions -- specifically reverse repurchase agreements, term deposits to banks, and sales of holdings of longer-term assets. Those steps would drain cash from the system and help raise short-term interest rates, he said.

Asian Central Banks Intervene as US Dollar Sags

Asian central banks bought U.S. dollars early in the global session on Thursday to weaken their own currencies, traders said, as the slumping greenback threatens smaller export-driven economies.

US Lawmakers Seek FCC Probe into Google Voice

U.S. lawmakers urged regulators to investigate Google's [GOOG  514.18    -3.36  (-0.65%)   ] ability to block expensive calls to rural areas to slash expenses, marking the latest spat between the Internet giant and AT&T [T  25.94    -0.24  (-0.92%)   ].

New email shows fund "blow-up risk" fear at Bear

One of two former Bear Stearns managers indicted for fraud over the collapse of hedge funds in 2007 feared a "blow up risk" to investors as early as November 2006, according to an email released on Thursday.

Liz Claiborne in J.C. Penney deal, shares jump

Liz Claiborne Inc <LIZ.N> will move its namesake brand to JC Penney Co Inc Department Stores and take a line by celebrity designer Isaac Mizrahi off department store shelves in a strategy shift that pushed shares up nearly 33 percent to their highest level in 11 months.

Asia:

Most Asian stocks rose, with the MSCI Asia Pacific Index set for its biggest weekly gain in a month, as investors favored companies linked to the global economic recovery over haven assets including utilities shares.

Samsung Electronics Co., the world's No. 1 memory-chip maker, climbed 4 percent after chip prices rose to a 16-month high. Record gold prices drove Zijin Mining Gold Co. up by 10 percent in Shanghai, where markets traded after an eight-day holiday. Electric Power Development Co. sank 2.2 percent in Tokyo, leading declines by utilities. Treasuries fell after Federal Reserve Chairman Ben S. Bernanke said the bank is ready to tighten monetary policy once the economy improves.

The MSCI Asia Pacific Index was little changed at 118.47 at 11:48 a.m. in Tokyo, having swung between gains and losses at least 11 times. Nine stocks advanced for every seven that declined. The index climbed 3.5 percent this week as a report showed U.S. service industries expanded and signs of growth prompted Australia to raise interest rates.

"We're all hoping the global recession is winding to a close," said Rob Patterson, who helps manage $3.4 billion at Argo Investments Ltd. in Adelaide. "Certainly, the economic indicators are getting less worse. But I don't imagine the U.S. will be raising rates any time soon."

China's Shanghai Composite Index climbed 3.6 percent, leading gains in the region, while Hong Kong's Hang Seng Index added 0.1 percent. South Korea's Kospi Index rose 1.7 percent.

Nikkei 225 9,891.66     +59.19 ( +0.60%). (08.19 AM IST).

Japan's Nikkei average rose 0.6 percent on Friday, with resource-related stocks climbing after gold hit a fresh all-time high, while Fast Retailing (9983.T) jumped after forecasting a record profit for this business year.

The benchmark Nikkei .N225 added 59.19 points to 9,891.66, pulling further away from an 11-week intraday low of 9,628.67 hit on Tuesday.

The broader Topix inched up 0.3 percent to 890.39.

HSI 21494.63 +1.73 +0.01%. (08.20 AM IST)

Hong Kong shares slipped in early trading Friday in spite of overnight gains on Wall Street and a post-holiday bounce in Shanghai, as investors looked to lock in profits after the market advanced in the previous four sessions. The Hang Seng Index fell 0.2% to 21,459.92 after opening higher, while the Hang Seng China Enterprises Index was flat at 12,457.71. But shares of Wynn Macau /quotes/comstock/22h!1128 (HK:1128 0.00, 0.00, 0.00%) jumped on their debut, opening at 11 Hong Kong dollars ($1.41) compared with their initial public offering at 10.08 Hong Kong dollars. The stock saw heavy trading, with more than 170 million shares having changed hands in the first few minutes. Among other movers, Aluminum Corp. of China /quotes/comstock/22h!e:2600 (HK:2600 9.19, +0.05, +0.55%) lost 1%, while bourse operator Hong Kong Exchanges & Clearing /quotes/comstock/22h!e:388 (HK:388 140.90, -0.70, -0.49%) fell 1.1%.

SSE Composite  2875.80  + 3.47. (08.27 AM IST)

Chinese stocks open 2.18% higher after holiday

Chinese stocks opened higher on Friday morning, the first trading session after the eight-day National Day holiday.

The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, opened at 2,840.13 points, up 2.18% or 60.71 points from the previous closing.

The Shenzhen Component Index on the smaller Shenzhen Stock Exchange opened 2.61% or 292.85 points higher at 11,499.7 points.

COSCO Pacific sees growing mainland container throughput

BOE Technology to buy 50% equity interest in BMCC 

Xpress sells a 10.1% stake in Singapore's Novena

CNPC inks RMB 2.08-bln deal with UAE's NDC

JPMorgan Chase raises stake in China Shanshui Cement 

Chinese stocks open 2.18% higher after holiday 

Li Ka-shing raises stake in Hutchison Telecom to 67.01% 

Taifook Securities reaps HK$189 mln in 18 months 

Dalian Port seeks A share listing

GM to review business plan for next two years

California home prices expected to further increase

U.S. files WTO case against EU over poultry restrictions

Marriott reports third-quarter loss

Japanese Machinery Orders Rise 0.5% From Record Low

Google wins business customers in Japan: report

Singapore's OCBC said to be bidding for ING's Asian assets
 
MARKET BUZZ:
 
(May not be useful for day-traders.)

Gold: A New Bull Orbit
 
 
 
With Washington treating the dollar like confetti, many of the world's greatest investors are buying up gold at a feverish pitch.
 

For example...

Peter Monk, chairman of $31.56 billion Barrick Gold, reveals, "I have had more phone calls in the past six months, from people who have $120,000 inherited from grandmother, and from hedge fund managers with millions."

 

John Paulson, the investor who made billions by pegging the housing bust and credit

crisis, just shelled out $1.3 billion for an 11% piece of AngloGold... adding to his gold position (he also has a big stake in Kinross Gold).

 

Hedge fund manager David Einhorn, the man who predicted Lehman Bros' collapse, just bought gold for the first time. 

Citibank analysts John Hill and Graham Wark see gold at $1,000 an ounce by year's end, then, they say, gold looks to "double to triple in the long term." 

John - Sprott Asset Management's chief investment strategist - anticipates $1,500 gold before year-end - also anticipates the beginning of worldwide hyperinflation that may take many Americans by surprise. And while John is bearish on world economies for the next few years, within that same time he looks toward "numerous 5 and 10-baggers" among small-cap gold producers and junior explorers with solid projects. 

Adam Hamilton of Zeal Intelligence sees gold soaring to $5,000 an ounce and more in the next 5 to 7 years.

(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