Market Outlook for 24th July 2009

 

INTRADAY TRADING CALLS TODAY

Buy ABAN-966 for a target 1000-1013 stop loss 950

Buy M&M-802 for a target 1817-832 stop loss 797

Buy Rolta-139 for a target 147 stop loss 136

Positional

Buy HUL-276 for a target 300 stop loss 270

NIFTY FUTURE LEVELS

RESISTANCE

4557

4593

4628

SUPPORT

4525

4514

4478

4443

4340

4305

Buy ZENSAR TECHNOLOG;GLENMARK PHARM

 

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

DCHL, Aurobindo Pharma, Sesa Goa, Maruti, Jindal Steel, Punj Llyod, GSPL, HCL Tech, DLF & Lupin.

And this is list of 10 Weak futures:

Pantaloon, Chambal Fert, PTC, Prchid Chem, IOC, Sterlin Bio, Nagar Fert , K S Oil & LIC.
 Nifty is in Up Trend.

POSITIONAL BUY:
Buy ZENSAR TECHNOLOG (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 145 level can be used to buy. If uptrend continues, then it may continue up to 156 level for time being. 

If crosses & sustains at above 162 level then uptrend may continue.

Keep a Stop Loss at 140 level for your long positions too.
 
Buy GLENMARK PHARM (NSE Cash) 

Uptrend to continue.

Mild sell-off up to 265 level can be used to buy. If uptrend continues, then it may continue up to 276 level for time being. 

If crosses & sustains at above 286 level then uptrend may continue.

Keep a Stop Loss at 256 level for your long positions too.
 

NIFTY FUTURES (F & O):  
Rally may continue up to 4557 level for time being.

Support at 4514 & 4525 levels. Below these levels, expect profit booking up to 4478-4480 zone and thereafter slide may continue up to 4443-4445 zone by non-stop.

Break below 4340-4342 zone, can create panic up to 4305-4307 zone by non-stop.
On Positive Side, cross above 4591-4593 zone can take it up to 4626-4628 zone. Supply expected at around this zone and have caution.
 
Short-Term Investors:  
Bullish Trend. 3 closes above 3906 level, it can zoom up to 4600 level by non-stop. 

BSE SENSEX: 
 Higher opening expected. Uptrend should continue. 

Short-Term Investors:  
Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.

3 closes above 15379 level, it can zoom up to 16459 level by non-stop.
 
Global Cues & Rupee  
The Dow Jones Industrial Average closed at 9,069.29. Up by 188.03 points.
The Broader S&P 500 closed at 976.29. Up by 22.22 points.

The Nasdaq Composite Index closed at 1,973.60. Up by 47.22 points.

The partially convertible rupee closed at Rs48.455/48.465 per dollar on yesterday, above its previous close of Rs48.52/53.

 

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	23-Jul-2009	5116.02	4604.08	+511.94

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	23-Jul-2009	1408.89	1443.05	-34.16

 SPOT LEVELS TODAY

	4523.75	( 2.84 %)	124.85
		1	2	3
Resistance		4568.78	4613.82	4695.23
Support		4442.33	4360.92	4315.88

	15231.04		( 2.61 %)	387.92
			1	2	3
Resistance			15331.34	15431.63	15598.43
Support			15064.25	14897.45	14797.16

 Interesting findings on web:
Wall Street surged 2 percent on Thursday, pushing the Dow to an eight-month closing high, after improving U.S. home sales and strong corporate results spurred optimism that economic recovery is under way.

US Small-Caps Close At Highest Point Since Nov. 4.

Pushing through its prior 2009 closing high of 9034.69 from Jan. 2, and now at its highest close since Nov. 5.

The Nasdaq registered its 12th straight day of gains, its longest winning streak since 1992.

The Dow Jones industrial average .DJI jumped 188.03 points, or 2.12 percent, to end at 9,069.29 -- its highest close since November 2008.

It was the Dow's first close above 9,000 since January 2009.

For the year, the Nasdaq is up 25 percent, while the blue-chip Dow average is up 3.34 percent and the S&P 500 is up 8.09 percent.

3M, AT&T post banner profits; Dow tops 9,000.

Existing home sales up in June for third month in a row.

Sales of preowned homes were 3.6% higher in June at 4.9 million annualized units, up from 4.7 million units in May. The figures indicated a quicker pace than analysts expected and represent the third consecutive monthly gain. However, home prices dropped 15.4% in the month to just under $182,000.

Similarly, the job market remains in terrible shape, but the pace of layoffs appears to be abating. The Labor Department said Thursday that 6.2 million Americans were receiving unemployment insurance benefits, continuing a decline in that measure of joblessness. Some 554,000 people filed new claims for jobless benefits, high by any conventional standard but remaining below 600,000 for the third straight week and down substantially from the 674,000 such filings in the last week of March.

The continued weakness in the labor market is among the greatest continuing threats to the economy, analysts said, an argument that Federal Reserve Chairman Ben S. Bernanke made in congressional testimony this week. Even as companies begin cranking up production to replace depleted inventories, Americans who are out of work -- or fear they may become so -- could be disinclined to spend money.

Microsoft, Amazon.com post disappointing results late.

U.S. stocks surged on Thursday, driving the Dow industrials above the key 9,000 mark for the first time since January, as strong corporate profits and rebounding home sales spurred optimism about the economy.

Microsoft Corp (MSFT.O: Quote, Profile, Research), Amazon.com Inc (AMZN.O: Quote, Profile, Research) and American Express (AXP.N: Quote, Profile, Research) posted disappointing quarterly results after the bell, sending their stocks lower.

Their reports provided a sharp contrast to robust results that diversified manufacturer 3M & Co (MMM.N: Quote, Profile, Research) and telecommunications company AT&T Inc (T.N: Quote, Profile, Research) reported before the bell, giving the broader market a strong start on the day.

After the bell, shares of Microsoft, a tech bellwether and a Dow component, fell about 8 percent to $23.60 from its Nasdaq close at $25.56. During the regular session, Microsoft's stock climbed 3.1 percent ahead of the results.

Shares of Web retailer Amazon.com lost 7.7 percent to $86.60 in extended-hours trading, down from their Nasdaq close at $93.87. During regular trading, Amazon's shares rose 5.7 percent before the earnings were released.

The quarterly revenues of both Microsoft and Amazon.com missed forecasts.

The market extended opening gains after data showed U.S. existing home sales rose in June -- the first time since 2004 that this measure has risen three months in a row. The Dow Jones U.S. home construction index .DJUSHB jumped 4.9 percent.

American Express, a credit card company and a Dow component, posted a lower quarterly profit, hurt by weakness in card member spending, record credit losses, restructuring charges and repayment of government funds.

After the bell, American Express shares slid nearly 5 percent to $28.07 from a New York Stock Exchange close at $29.45. In regular trading, the stock was up 2.4 percent.

During the regular session, 3M's stock rose 7.4 percent to $69.43 and contributed the most to the Dow's gain after the diversified manufacturer's profit handily beat analysts' expectations, and the company lifted its revenue outlook for 2009.

Blue-chip AT&T's stock gained 2.6 percent to $25.48 after it reported a smaller-than-expected drop in quarterly profit as strong sales of Apple Inc's (AAPL.O: Quote, Profile, Research) iPhone helped increase wireless subscriber growth.

Among the Nasdaq's major advancers was eBay Inc (EBAY.O: Quote, Profile, Research), whose second-quarter results beat Wall Street's expectations.

The online marketplace's stock shot up 10.6 percent to $21.52.

Net income fell 29% in the second quarter, as its core online-auction business continued to show weakness, but the company's overall report showed trends that business may be starting to turn, while it issued an outlook that topped analysts' views.

Intuitive Surgical (Nasdaq) jumped 45.58, or 27%, to 215.37. Second-quarter net income grew 22% on strong sales of its surgical robots, defying economic headwinds hitting spending at hospitals that buy the systems. Covering of large short positions assisted the gain.

Only three of the Dow's 30 components ended lower, including McDonald's Corp (MCD.N: Quote, Profile, Research). The hamburger chain's stock fell 4.6 percent to $56.09 after it posted lower-than-expected June same-store sales and its quarterly profit matched Wall Street's forecasts.

Elsewhere, shares of Moody's Corp (MCO.N: Quote, Profile, Research) fell 3.8 percent to $25.52 following news that Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research) reduced its stake in the credit ratings provider.

The Ford Motor Company posted a 2.3 billion dollar profit in the second quarter and says it expects to break even in 2011. The automaker is doing better than rivals General Motors and Chrysler mainly due to its debt restructuring.

Traders scooped up cyclicals and economically sensitive stocks Thursday on the heels of more better-than-expected earnings reports and positive economic data, leading to a surge for small-caps.

While the gain in small-caps was largely broad-based, sectors such as materials, industrials and energy companies paced the day's move. Sentiment was boosted by some earnings, as well as better-than-expected existing-home sales data and in-line unemployment numbers.

Some skeptical observers said the rise might be a result of corporate managers effectively playing down expectations, and that surprises have been driven by cuts in labor costs, or the benefits of fallen commodities prices, rather than reliable sales growth and margin expansion.

Companies that a few months ago were too fearful even to project their future earnings are now seeing glimmers of hope in the year ahead. The rate of home sales has risen for three straight months. And the number of people drawing unemployment insurance benefits has fallen back to April levels, having receded for the third straight week.

All those recent signals sent the stock market surging Thursday as investors sensed that the recession could be in its waning days.

Many suspect that even if no recovery is imminent, the steep economic decline has either already ended or will soon.

Futures have fallen, signalling the market will retreat after reaching an eight-month high.

S&P 500 futures expiring in September declined 0.4% to 965.10 after Microsoft, American Express and Amazon.com all posted disappointing quarterly results after the market close. Dow futures dropped 31 points, or 0.3%, to 8960.

Oil prices soar to three-week high on Wall Street's rise.

Dollar, euro gain vs yen as US data spurs recovery hopes.

Copper, widely viewed as a harbinger of economic activity because of its industrial use, reversed losses to hit a nine-month high.

Oil fell from a three-week high as a late slew of disappointing results blunted a strong on the share markets and demand fell.

US fuel use averaged 18.6 million barrels a day the past four weeks, 4.8% less than the same period a year earlier.

Crude oil for September delivery dropped as much as 64USc, or 1%, to $US66.52 a barrel in New York. Futures are 4.3% higher this week.

Gold prices rose to the highest in five weeks as the dollar retreated, supporting demand for the precious metal as an alternative investment.

Silver also gained.

Gold has climbed 1.8% this week as the dollar dropped 0.7% against the euro. Earlier, the metal reached $US957.50 an ounce, the highest since June 12.

Gold futures for August delivery rose $US1.50, or 0.2%, to $US954.80 in New York.

Traders are predicting still more tougher times for the yen against the euro and other major counterparts as world share markets surge, encouraging investors to purchase higher-yielding assets.

The yen has traded at ¥134.36 per euro after a 0.8% decline in New York. The dollar was at $US1.4140 per euro after touching $1.4291, the weakest level since June 3. The yen fetched ¥94.97 versus the dollar after dropping 1.3%.

Canada's dollar rose to the highest level against its US counterpart since June 3 as a central bank report said the nation's recession is ending.

It rose as much as 1.4%, the most on an intraday basis since July 15, and touched $C1.0841 to the dollar.

How long can the rally last?

The Dow Jones industrials stormed past the 9,000 mark Thursday for the first time since January, as traders delighted in surprising corporate profits and a rise in housing sales. But are the markets getting ahead of themselves?

Many analysts say they're not -- at least by too much.

Since their lows on March 9, the Dow (INDU) has climbed 37% while the S&P 500 (SPX) has gained 43%. Strategists say losses may come in the next two months as stocks fall back to normal valuations. The average stock in the S&P 500 trades at 17 times earnings compared to 13.5 just three months ago.

"The Dow has come very far and very fast," says Hugh Johnson, chief investment officer of Johnson Illington Advisors, who oversees more than $1.5 billion in assets. "On a short-term basis it is somewhat overvalued."

Johnson says the Dow could decline 5% to 10% before year's end to fall in line with historical valuations and market history. Even so, he predicts the U.S. is in the fourth month of a cyclical bull market. According to Johnson's analysis, cyclical bull markets since 1890 have had an average duration of 38 months and sent their stock up by 130%.

"If you look at the history of the bull market -- both in duration and magnitude -- this one is the early stages," he says. "This one has longer and further to go."

Others market watchers agree. Deutsche Bank chief U.S. equities strategist Binky Chadha says gains in the Dow and S&P 500 are sustainable with the rise in the greater economy.

"There's no doubt that the earnings we've seen for far have come in better than expected," says Chadha, who notes that 75% of the S&P 500 companies already reporting earnings have beaten analysts' expectations. That's notably higher than the historical average over the last 10 years of 62%.

Chadha notes that stocks are trading above historical levels on a price-to-earnings basis. The S&P 500 index has traded at 17 times earnings for the past four quarters, compared with the historical average of 15. Yet he believes the economy will continue to improve gradually, noting that 8 of the 11 economic indicators in a Deutsche Bank index have been positive since July 10. "I think that there's upside on the equity markets on a whole," Chadha says.

And J.P. Morgan Funds chief market strategist David Kelly expects the Dow to stay above 9,000 as the economy shows increasingly signs of recovery.

"I think the most likely scenario is the market has a very good second half of the year and it builds in these gains," says Kelly. "There's nothing dramatic going on in the economy, but the economy is doing what it's supposed to do."

"There's a gathering body of evidence that the economy is on the road to recovery," he says. "It could be a long bull market if the economy can get to positive economic growth and stay there for a few years."

Asia:

Japan's Nikkei stock average rose 1.5 percent on Friday, on track for its eighth straight day of gains, after upbeat corporate earnings fuelled hopes for a U.S. economic recovery and chip equipment stocks climbed on strong order data.

The Nikkei is on track for its eighth straight trading day of gains, a winning streak unseen since November 2005.

Hong Kong stocks rose on Friday morning, with the benchmark Hang Seng Index opening 246 points higher at 20,064.

The Hang Seng China Enterprise Index, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, opened 145 points higher at 11,969.

SOHO China Ltd<0410> rose 2.92% and opened at HK$4.94. Sun Hung Kai Properties<0016> increased 0.99% from the previous closing to HK$112.2.

Hong Kong shares climbed Friday, sending the benchmark Hang Seng Index briefly above the psychologically-important 20,000-point level for the first time since September

2008. The advance came on the back of strong overnight gains on Wall Street and a higher opening in Shanghai. The Hang Seng Index rose as high as 20,063.93 at the opening,

before coming off the highs to trade up 0.9% at 19,997.26 in early action. The Hang Seng China Enterprises Index was up 1.1% at 11,957.08. Chinese banks led the advance,

with shares of Bank of China Ltd. /quotes/comstock/22h!e:3988 (HK:3988 3.84, +0.06, +1.58%) up 1.9%, China Construction Bank Corp. /quotes/comstock/22h!e:939

(HK:939 6.09, 0.00, 0.00%) 0.8% higher, and Industrial & Commercial Bank of China Ltd. /quotes/comstock/22h!e:1398 (HK:1398 5.35, +0.03, +0.56%) up 1.3%.

The registered unemployment rate in China's urban areas was 4.3 percent in the first half this year, Yin Chengji, spokesman of the Ministry of Human Resources and Social Security announced Friday.

The figure was up from 4.2 percent at the end of 2008.

A total of 5.69 million urbanites had found new jobs during the first six months this year, Yin said.

Chinese shares opened slightly higher on Friday.

The benchmark Shanghai Composite Index rose slightly by 0.46 percent to open at 3,343.76.

The Shenzhen Component Index rose 0.60 percent to 13,602.24 at the opening.

China's daily power generation in the second 10-day period rose 8.5 percent year on year, an big increase over the first ten days of the month, according to the latest figures from the power dispatch center of State Grid Corporation of China on Thursday.

The growth rate was three percent from a year ago in the first 10 days of July.

Wang Wei, analyst at the Guotai Junan Securities, attribute the big growth mainly to high temperature in the southern region and areas along the Yangtze River.

Yunnan Copper Co. Ltd., China's third largest copper producer, will privately place 300 million new shares to raise about 6 billion yuan (857.1 million U.S. dollars), reported Friday's China Daily. 
 
INVESTMENT VIEW

PONNI SUGARS-BUY   
Ponni Sugars (Erode) Ltd is an offspring of Ponni Sugars and Chemicals Ltd (PSCL) under a Demerger Scheme sanctioned by the Hon'ble High Court of Madras on 10th September 2001. In terms of the Scheme, the company took over the business of Erode Undertaking with concurrent transfer of major part of stakeholders' interest in PSCL to the company.

The Erode sugar mill was set up with 1250 TCD capacity in 1984 in a record time of 12 months. It achieved full capacity crushing during the very first year of its commercial operation that enabled declaration of a maiden dividend of 10% in that very first year, a record in the annals of sugar industry. It was a trendsetter in mobilising surplus cane during its infancy stage from neighbouring sugar mills and extending crushing season to well above industry average. Its capacity was expanded to 2500 TCD in 1994.

Outlook for 2009-10

Remunerative prices of competing crops and constricted availability of farm labour have obviously taken the sheen off the sugarcane crop.

The Company plans to import raw sugar in tune with the dynamics of market to supplement its in-house sugar production. In all, the company remains optimistic for a repeat of robust performance during 2009-10 as well.

Positive Points for this stock for Up moving:

1)    Book Value at Rs 59/- ; EPS 15/- for 2008-09;  PE 4

2)    Fourth quarter Annulised EPS was 35/- PE just 1.5

3)    In Sugar Industry Stocks Average PE was 10 But this stock trading with PE 4 and 1.5; If you take minimum 10 PE it will go 150/-.

4)    25% Dividend Paying Company

5)    Equity very small and 8 Crores Promoters Holding 45%.

6)    For this year 2009-10 Expected Net Profit 25 Cr EPS 31/- PE 2. 
 
(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

Market Outlook 23rd July 2009

 

Intraday Calls 23rd Jul 2009

Buy Maruthi-1214 for a target 1255-70 stop loss 1200

Buy Voltas-135 for a target 143-149 stop loss 132

Buy BATA-166 for a target 175 stop loss 163

Positional Calls

Buy GujSidcem-20 for a target 23-26 stop loss 19

Buy Parsvanth-100 for a target 125 stop loss 95

 

 

Stocks with +ve Bias:  Aurobindo Pharma (sl 575), sterlite (sl 586), Sail (sl 159) Unitech & Moser Baer  (SL 78)

Stocks for Investment: IDBI, Balrampur chini , Bajaj Holdings, Emco

 

NIFTY FUTURES LEVELS

SUPPORT

4398

4378

4330

4308

4240

RESISTANCE

4414

4443

4513

4581

4604

4672

Buy BIRLA,ING VYSYA BANK  

 

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

DCHL, Sesa Goa, Punj Lloyd, Yes Bank, GSPL, Wipro, Aurobindo Pharma, Jindal Steel, HCL Tech & MPHASIS.

And this is list of 10 Weak futures:

Pantaloon, Chambal Fert, Suzlon, PYC, Orchid Chem, GTL Infra, R Com, FSL & Praj Industries.
 Nifty is in Up Trend.

 

NIFTY FUTURES (F & O): 
 Below 4398-4400 zone, selling may continue up to 4378 level and thereafter slide may continue up to 4330-4332 zone by non-stop.

Hurdles at 4415 & 4443 levels. Above these levels, expect short covering up to 4511-4513 zone and thereafter expect a jump up to 4579-4581 zone by non-stop.

Sell if touches 4602-4604 zone. Stop Loss at 4670-4672 zone.

On Negative Side, break below 4308-4310 zone can take it up to 4240-4242 zone. If breaks and sustains this zone then downtrend may continue.
 
Short-Term Investors:
Bullish Trend. 3 closes above 3906 level, it can zoom up to 4600 level by non-stop. 

BSE SENSEX:  
Lower opening expected. Recovery should start. 

Short-Term Investors:
Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.
 

POSITIONAL BUY:
Buy BIRLA CORP (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 266 level can be used to buy. If uptrend continues, then it may continue up to 279 level for time being. 

If crosses & sustains at above 287 level then uptrend may continue.

Keep a Stop Loss at 258 level for your long positions too.
 
Buy ING VYSYA BANK (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 200 level can be used to buy. If uptrend continues, then it may continue up to 208 level for time being. 

If crosses & sustains at above 216 level then uptrend may continue.

Keep a Stop Loss at 192 level for your long positions too.
 

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	22-Jul-2009	2811.89	2745.05	+66.84

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	22-Jul-2009	1314.55	1539.13	-224.58

Global Cues & Rupee
The Dow Jones Industrial Average closed at 8,881.26. Down by 34.68 points.
The Broader S&P 500 closed at 954.07. Down by 0.51 points.

The Nasdaq Composite Index closed at 1,926.38. Up by 10.18 points.

The partially convertible rupee closed at 48.52/53 per dollar on yesterday, weaker than Tuesday's close of 48.42/43.
 
 Interesting findings on web:
The Dow Jones industrial average declined, halting a seven-day winning streak.

The S&P 500 briefly hit a 2009 intraday high of 959.83. But both the S&P and the Dow industrials were reined by disappointing results from banks, including Wells Fargo & Co <WFC.N, down 3.6 percent at $24.45.

According to Standard & Poor's, two thirds of the S&P 500 companies that already reported earnings have beaten expectations. Stocks have gained roughly 8% in the last seven trading days, even after the rally paused Wednesday.

Strong profits from NVR Inc (NVR.N) sparked a run-up in home builders' stocks. The Dow Jones U.S. home construction index .DJUSHB shot up 5.2 percent. NVR's stock jumped 5.4 percent to $584.17.

Starbucks surged $2.70, or 18.4 percent, to $17.39 after the coffee chain shut stores, laid off workers and cut other costs to produce fiscal third-quarter results that topped expectations.

Bank of New York Mellon (BK.N) slid 6.2 percent to $27.32 after the world's largest trust bank posted a 43 percent drop in second-quarter profit.

Allegheny Technologies lost 6.29, or 18%, to 28.50, the S&P 500's largest percentage decliner. The metals processor swung to a second-quarter loss on much lower-than-expected revenue and said it will just break even in the current quarter, not post a profit of 24 cents a share as analysts were expecting.

Genzyme lost 4.70, or 8.4%, to 51.21 on the Nasdaq. The biotech concern's second-quarter profit more than doubled on 5% revenue growth, but an anticipated revision to its 2009 earnings came in below already lowered Wall Street estimates.

Aircraft maker Boeing ( BA - news - people ) saw profit rise 17% last quarter, besting Wall Street's estimates.

Beset by production delays on its new 787 Dreamliner, the Chicago firm said it will revise its full-year forecast and update its plans for the 787. Sales increased a bit to $17.2 billion in the second quarter, aided by its work for the military. Shares lost $1.03, or 2.4%, to $41.99.

In pharmaceuticals, Eli Lilly & Co. ( LLY - news - people ) and Pfizer ( PFE - news - people ) beat analyst guesses for quarterly profits and both firms upped their forecasts for the full year. Eli Lilly said earnings increased 21% from a year ago, but its shares fell 1.9%, while Pfizer was up 1.1% despite a 19% decline in earnings from 2008.

Giant bank Wells Fargo ( WFC - news - people ) reported that quarterly profit increased by 47% as its purchase of Wachovia boosts business in the Eastern U.S., but investors soured on the firm's rising number of bad loans. Wells Fargo shares dropped 90 cents, or 3.6%, to $24.45.

Morgan Stanley ( MS - news - people ) lost $1.2 billion in the quarter, more red ink than investors expected, even as the firm repaid its government TARP loans. Analysts expect a rocky finish to 2009, but predict the firm will return to profitability in 2010. Shares of Morgan Stanley gained 2 cents, or 0.1%, to $27.58.

Also on the climb is Linear Technology. The California-based chip maker beat market expectations with its fiscal fourth quarter earnings per share of 25 cents.

Fellow computer chip maker Advanced Micro Devices (AMD) continues to struggle in its fight against industry giant Intel,however. AMD posted its third consecutive quarter of declining sales and also disappointed the market with a larger than expected second quarter loss.

Drug maker Pfizer was wanted after announcing a slide in profits that was not as severe as analysts had been expecting.

Housebuilders KB Home and DR Horton got a lift from the Federal Housing Finance Agency which said house prices rose 0.9% in May from April's levels, although the figure was still down 5.6% from a year earlier.

The Nasdaq rose on Wednesday for the 11th straight day. As Apple and Yahoo helped the Nasdaq Composite Index.

Their advance helped extend the Nasdaq's winning streak -- now the longest such stretch since September 1996.

Apple (Nasdaq) rose $5.23, or 3.5%, to $156.74, its highest close since last September. After robust sales of laptops and iPhones pushed its profit and revenue above what analysts had expected.

Wireless chip and technology supplier Qualcomm Inc (QCOM.O) on Wednesday issued a revenue target for the current quarter that was below Wall Street expectations.

Qualcomm also said it expects South Korean regulators to hit it with a "substantial" fine due to charges of anti-competitive business practices there.

Qualcomm's shares fell to $46.10 in after-hours trading from $48.45 at the close on Nasdaq.

Trading was slow before Thursday's reports on weekly initial jobless claims and existing home sales. 

Wall Street's biggest banks are setting aside billions of dollars more to pay their executives and other employees just months after these firms were rescued with a taxpayer bailout, renewing questions about compensation practices in the aftermath of the financial crisis.

But Wall Street is on track to pay its employees as much as, or even more than, in the pre-crisis days. So far this year, the top six U.S. banks have set aside $74 billion to pay their employees, up from $60 billion in the corresponding period last year.

MORGAN Stanley reported a worse-than-expected second quarter loss yesterday on the back of charges linked to its government bailout and tightening credit spreads.

The Wall Street bank slumped to a loss of $1.26bn (£770m), or $1.10 a share, during the three months to the end of June, as it incurred an $850m charge on the $10bn it took from the US government's Troubled Asset Relief Programme (Tarp).

Without one-off charges, the bank's loss was $159m.

A $734m decline in the value of its real estate investments also dented Morgan Stanley's bottom line.

Revenues fell from $6.1bn in the second quarter of 2008 to $5.4bn as the bank was hit by a $2.3bn reduction in revenues due to the negative impact of debt-related credit spreads.

Integration costs relating to Smith Barney, the brokerage joint venture the bank bought into with Citigroup, totalled $245m.

Chief executive John Mack said he was unhappy with the performance in fixed income, an area in which rivals Goldman Sachs and JPMorgan Chase have booked huge profits.

"We are not satisfied with our performance in... key areas of fixed income trading and in asset management, and we are taking steps to deliver better results in those businesses," he said in a statement.

But he said the bank would have made a profit if not for the one-off repayment of Tarp and the cost of tightening spreads on its own debt.

And Mack said that a $6.9bn stock sale during the quarter would help drive the bank to a healthy tier one capital ratio at year end of 15.8 per cent.

Despite the losses, the bank put aside $3.9bn to pay staff, up from $3.1bn during the same period last year.

Federal Reserve Chairman Ben Bernanke reiterated in testimony to the Senate Banking Committee on Wednesday that the U.S. economic outlook is improving, but that supportive policies would be necessary for a while to prevent rising joblessness from sapping the recovery.

Federal Reserve Chairman Ben Bernanke wrapped up his semiannual two-day testimony to Congress on the nation's monetary policy with an appearance before the Senate Banking Committee Wednesday. Bernanke said unemployment was the most pressing issue threatening the U.S. economy, and he assured lawmakers that the central bank could handle multiple new roles as a regulator.

Meantime, Federal Reserve Chairman Ben Bernanke was back on Capitol Hill on Wednesday. Bernanke told the Senate Banking Committee that the central bank must remain independent.

He said that any audits could alarm financial markets and push borrowing costs higher.

Economy: One day after telling a House panel that the economy was starting to stabilize but that housing and labor markets remain strained, Bernanke mostly repeated his testimony before the Senate Banking Committee on Wednesday.

Bonds: Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.55% from 3.49% Tuesday. Treasury prices and yields move in opposite directions.

The dollar was mixed, while gold prices rose.

Light, sweet crude fell 21 cents to settle at $65.40 a barrel on the New York Mercantile Exchange.

US President Barack Obama on Wednesday said the US financial system has stabilized, but warned Wall Street not to return to the risky practices that brought it to the brink of collapse last year.

"One of the success stories of the past six months is that we really have seen a stabilization of the financial system," Obama said at a White House press conference. "People are no longer talking about the financial system falling off a cliff."

But with many US banks reporting surprising quarterly profits last week, Obama said he was concerned the Wall Street "culture" that provoked the global financial crisis was still in place.

"It's a good thing if (banks) are profitable again," Obama said. "But what we haven't seen I think is the kind of change in behaviour and practices that ensure that we don't find ourselves in the same fix again."

Obama did not give specifics about what practices banks were now repeating. But he touted his proposed overhaul of the financial regulatory system as the only means to keep US banks from continuing the mistakes of the past.

US banks have been blamed for taking careless risks in the housing market over the past decade. Many offered loans to homeowners that could not afford them, while not maintaining enough reserves to guard against a housing market crash that began in 2006.

There has also been public outrage over millions of dollars in bonuses paid to executives at banks that were forced to turn to a government bail-out in October to survive the financial crisis. Many banks have now paid those loans back.

Obama said he hoped to give shareholders a greater say in the salaries and bonuses of executives. He also suggested he could back a plan to charge banks a fee for making riskier loans - a means of protecting taxpayers from footing the bill.

"If we don't pass financial regulatory reform, banks are going to go back to the same things that they were doing before," Obama said.

The Treasury Department earlier Wednesday sent the bulk of its proposal for regulatory reform to Congress.

The administration wants to create a "council" of regulators to monitor risks to the entire financial system.

Obama also hopes to get new powers to step into major banks before they collapse and give the US central bank more authority to keep tabs on the country's largest financial institutions. 

U.S. President Barack Obama on Wednesday appealed for national support to his healthcare reform that has been hit by strong opposition from Congress, industries and the public.

"Even as we rescue this economy from a full-blown crisis, we must rebuild it stronger than before," said the president at a national TV press conference. "And health insurance reform is central to that effort."

Noting that the healthcare reform "fits into our broader economic strategy," Obama warned that if the United States cannot control costs on healthcare, it will not be able to control its deficit.

"If we do not reform health care, your premiums and out-of-pocket costs will continue to skyrocket. If we do not act, 14,000 Americans will continue to lose their health insurance every single day."

In recent weeks, Obama has stepped up his efforts to push forward his healthcare reform at Congress, healthcare industries and communities despite concerns on tax raise and other backfire effects that the reform might cause.

According to Obama's plan, the reform is aimed at curbing rapidly rising costs and expanding health insurance coverage to the 46 million uninsured Americans.

Obama admitted at the press conference that he realized "all the charges and criticisms being thrown around in Washington," and many Americans' doubts on their benefit from the reform.

Besides the 47 million Americans who have no health insurance, the reform is also "about every American who has ever feared that they may lose their coverage if they become too sick, or lose their job, or change their job."

"It's about every small business that has been forced to lay off employees or cut back on their coverage because it became too expensive," he said. "And it's about the fact that the biggest driving force behind our federal deficit is the skyrocketing cost of Medicare and Medicaid."

The healthcare reform has become a hard sale at Congress recently as many Republicans and even some conservative Democratic lawmakers were hesitating to lend their support to the bill.

However, Obama emphasized some agreements he has reached with Congress, including the agreement that the reform will provide Americans with more security and more stability, prevent insurance companies from dropping their coverage if they get too sick, and limit the amount insurance companies can force them to pay for their medical costs.

He also warned of the possibility of the reform becoming "the game of politics," citing some Republican strategists' remarks to "go for the kill" of the bill.

Obama has set a timetable for Congress to vote on the healthcare reform bill before its August recess. However, the bill, which has been approved by two key panels in the House, has not yet been set for vote by the whole floor.

The United States is the only major industrialized nation without a comprehensive national health care plan. Most Americans rely on private health insurance partly funded by their employers, but they lose the insurance should they become unemployed.

Official statistics showed that U.S. healthcare now consumes 2.2 trillion US dollars a year, nearly 7,471 dollars per person, which equals 16 percent of GDP with a projected rise to 25 percent by 2025. 

President Barack Obama on Wednesday reiterated that the U.S. troops will completely withdraw from Iraq by the end of 2011 as scheduled, and that the United States supports Iraq's political reconciliation process.

Asia:

The 225-issue Nikkei Stock Average gained 12.81 points, or 0.13 percent, from Wednesday to 9,735.97. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 0.88 point, or 0.10 percent, to 907.46.

Gainers were led by rubber products, nonferrous metals, and glass and ceramics issues. Major decliners included mining, insurance and real estate issues.

Amid a lack of strong trading cues, stocks started on a weak note with some investors taking profits from the Nikkei's 7.4 percent rise on a six-day winning streak through Wednesday. The weak dollar, staying below Japanese exporters' average assumed rate of around 95 yen, also weighed on the market, brokers said.

Meanwhile, the downside found support as "hopes for an economic recovery remains strong" and some investors bought on the anticipation of a further rise in the near term, said Fumiyuki Nakanishi, chief equity strategist at SMBC Friend Securities Co.

"The market is likely to be stuck around (the Nikkei's) 9,700 for the rest of the day, hemmed in a narrow range of about 50 points,"Nakanishi said.

Many market players stayed on the sidelines as they await a slew of key Japanese second-quarter corporate earnings results, starting with telecommunications operator KDDI Corp. later Thursday, for a clearer outlook on economic prospects, the brokers said.

Hong Kong shares opened higher Thursday, with resource shares helping lead the advance. In early trading, the benchmark Hang Seng Index was up 1.28%, while the Hang Seng China Enterprises Index was up 1.51%. China Petroleum & Chemical Corp., better known as Sinopec /quotes/comstock/22h!e:386 (HK:386 6.86, +0.23, +3.47%) rose 4.8% after Nomura said the Chinese energy major's first-half net profit could rise more than three-fold, according to a research note cited by Dow Jones Newswires. Cnooc Ltd. /quotes/comstock/22h!e:883 (HK:883 10.22, +0.14, +1.39%) rose 1.4%, while PetroChina Co. /quotes/comstock/22h!e:857 (HK:857 8.94, +0.14, +1.59%) was up 1.4%. Jiangxi Copper /quotes/comstock/22h!e:358 (HK:358 15.56, +0.70, +4.71%) also got a 2.6% boost.

INVESTMENT VIEW

Abbott Labs: If Only It Drew More On The Parent's Pipeline

BSE 500488; CMP Rs 489.45  
Abbott Labs Indian operations can hardly be faulted. Each and every product launched by Novartis under the new product patent regime has been challenged by local drug-mixers read generic copiers. With it's drug eluting stents and the multi-billion rheumatoid arthritis drug Humira, Abbott could well be a Rs 750 stock..The sufferers are of course, the domestic investors and the domestic sick, which are denied treatment due to cagey laws.
 

Abbott Laboratories management has suggested that by 2012 sales of Humira will reach $9 billion, up from half that in 2008. Analysts at Credit Suisse describe themselves as "skeptical."

 

Credit Suisse is worried that increasing competition, particularly newly released Simponi, will slow Humira's growth. "While the company may be able to obtain their $9-$10 billion sales expectation for 2012, this will only be possible if the company executes flawlessly," reads a July 10 report.

 

Humira represents a huge portion of Abbot's revenue growth potential. Credit Suisse says Humira will account for 20% of growth over the next five years at a minimum and could add up to as much as 67% of growth unless Abbott comes up with a new blockbuster. Further, warns Credit Suisse, Abott's other big drugs like Vicodin PR and its cholesterol suite aren't growing quickly enough to cover any Humira slowdown.

(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

Market Outlook 22nd July 2009

NIFTY FUTURES LEVELS

RESISTANCE

4501

4529

4555

4564

4590

SUPPORT

4470

4463

4444

4417

4391

Buy MPHASIS,UNION BANK

 

NIFTY FUTURES (F & O):  
Above 4501 level, expect short covering up to 4527-4529 zone and thereafter expect a jump up to 4553-4555 zone by non-stop.

Support at 4470-4472 zone. Below this zone, selling may continue up to 4463 level and thereafter slide may continue up to 4444-4446 zone by non-stop.

Below 4417-4419 zone, expect panic up to 4391-4393 zone by non-stop.

On Positive Side, cross above 4562-4564 zone can take it up to 4588-4590 zone. Supply expected at around this zone and have caution.
 
Short-Term Investors: 
 Bullish Trend. 3 closes above 3906 level, it can zoom up to 4600 level by non-stop. 

BSE SENSEX:  
Higher opening expected. Recovery should start. 
Short-Term Investors:
 
Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.
  
POSITIONAL BUY:
Buy MPHASIS (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 420 level can be used to buy. If uptrend continues, then it may continue up to 430 level for time being. 

If crosses & sustains at above 438 level then uptrend may continue.

Keep a Stop Loss at 412 level for your long positions too.
 
Buy UNION BANK (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 254 level can be used to buy. If uptrend continues, then it may continue up to 260 level for time being. 

If crosses & sustains at above 265 level then uptrend may continue.

Keep a Stop Loss at 248 level for your long positions too.
 

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

HCL Tech, sesa Goa, Wipro, DCHl, Grasim, Tech Mahindra, Maruti, Punj Lloys, Voltas & MPHASIS. .

And this is list of 10 Weak futures:

Suzlon, Orchid Chem, pantaloon, Moser Bear, Bargarjuna Fert, Sintex, Chambal Fert, RCom, GTL Infra, Sterlin Bio.
 Nifty is in Up Trend.

 

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	21-Jul-2009	2392.5	2643.36	-250.86

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	21-Jul-2009	1216.88	1224.32	-7.44

 

SPOT LEVELS TODAY

	4469.10	( -0.74 %)	-33.15
		1	2	3
Resistance		4516.53	4563.97	4603.93
Support		4429.13	4389.17	4341.73

	15062.49		( -0.85 %)	-128.52
			1	2	3
Resistance			15212.51	15362.52	15490.84
Support			14934.18	14805.86	14655.85

Global Cues & Rupee  
The Dow Jones Industrial Average closed at 8,915.94. Up by 67.79 points.
The Broader S&P 500 closed at 954.58. Up by 3.45 points.

The Nasdaq Composite Index closed at 1,916.20. Up by 6.91 points.

The partially convertible rupee ended at 48.42/43 per dollar on yesterday, weaker than 48.21/22 at close on Monday.
 
 Interesting findings on web:
Dow Logs 7th Straight Gain.

It was the Nasdaq's 10th straight gain — its longest streak in 12 years.

The Dow Jones Industrial Index rallied to close in positive territory as a solid profit from Caterpillar eclipsed unease about the company's outlook for the current quarter, while both the Nasdaq and the S&P 500 clung to tiny gains.

In early trading, investors were encouraged by another round of strong profit reports from major bellwethers that included drug maker Merck & Co, but that optimism was met with a dose of reality when heavy equipment maker Caterpillar said it expected a "challenging" third quarter.

Shares in Caterpillar closed up 7.72 per cent at $39.48 gave the biggest boost to the Dow, but were off the day's high following cautious comments.

U.S. stocks rose, extending the Dow Jones Industrial Average's longest rally in two years as Federal Reserve Chairman Ben S. Bernanke said there are signs the economy is stabilizing. Treasuries climbed the most in two weeks and the dollar gained.

Cautious comments on the economic outlook by Ben Bernanke, Federal Reserve Chairman, also weighed on stocks. The Fed Chairman, delivering his twice-yearly testimony to the US Congress, said that American unemployment was set to remain high into the year after next. This could sap fragile consumer confidence and undermine what was likely in any case to be a fragile and anaemic recovery, he warned.

Bernanke found himself defending the Fed's ability to act as the broad overseer of financial regulation, in the first stop of his semiannual two-day tour of Congress. The central bank chief also argued that an exit strategy is in place for the Fed to dial back the various facilities it created, when the crisis was at its deepest, to pump liquidity into the U.S. financial system and has sustained in an effort to restart economic growth.

Even while describing exit strategies, Bernanke noted that the Fed expects to keep its benchmark federal funds rate at its historically low levels of 0.25% or lower for an extended period of time. Traders in the fixed-income market were scooping up longer-dated Treasury bonds during Bernanke's question-and-answer session with lawmakers, sending the yield on the 10-year note down to 3.49%, from 3.61% Monday.

Results from DuPont, the chemical maker and Merck & Co, the drug company, came in ahead of Wall Street forecasts.

Coca-Cola Co (KO) fell $0.68. The company in with second quarter results, $0.92 in earnings, down from $1.10 last year. The company also had a shortfall in revenues and it sees third quarter income dropping 12 to 14 percent from last year.

Another Dow stock, United Technologies (UTX) off $1. Second quarter earnings fell to $1.05 from $1.32 last year, but that was a penny better than expected, but revenues were down 17 percent.

Merck (MRK) still another Dow stock, off $1 -- up $1.71. Second quarter earnings, $0.83, down from $0.86 last year, but that was $0.06 better than the Street was expecting and the company's upbeat about its upcoming merger with Schering-Plough.

And then Dupont Co (DD) a penny loss. The company had second quarter earnings excluding items of $0.61. That was $0.08 above the Street estimate.

Monsanto (MON) had a good day, up $3.52. The company received U.S. and Canadian approval for its Smartstax corn seed technology and that could put it on the market by as early as next year.

Freeport-McMoran Copper & Gold (FCX) up $1.17. Second quarter earnings fell to $1.38 from $2.25 and that was due largely to lower copper prices in the period, but the Wall Street estimate wasn't $1.38. It was for only $0.72, hence the stock higher.

China today launched an unprecedented plan to offer hefty subsidies to independent solar power projects and that had the whole sector strong. LDT, LDK Solar Co (LDK) I should say, Suntech Power (STP), Trina Solar ltd (TSL) and Yingli Green Energy (YGE) all doing well, better than $1 gains.

Apple (AAPL) topped the active list and actually closed down $1.40, but after those spectacular third quarter earnings, the stock went to $158 a share in after hours.

Cisco Systems (CSCO) $0.44 gain.

Microsoft (MSFT) $0.30 rise there.

Google (GOOG) fell $2.27.

Intel (INTC) showed no change on the day.

Human Genome (HGSI) up another $1.33 after jumping over $9 or 270 percent yesterday on news the company's lupus treatment is effective. Today UBS financial issued a "buy" and the Bernstein research has a $17 a share target.

Finally, Yahoo! ( YHOO - news - people ) posted a second-quarter profit of 10 cents a share. This marks the first quarterly earnings increase since the beginning of 2008. Tougher cost controls imposed by its recently hired chief executive Carol Bartz seemed to help offset further erosion in its advertisingsale.

Banks stumbled after Regions Financial Corp., Comerica Inc. and Zions Bancorp posted second-quarter losses that stirred worries about rising loan defaults, a persistent concern for banks as unemployment approaches 10 percent.

Technology shares could drive trading on Wednesday. Chipmaker Advanced Micro Devices Inc. slid in after-hours trading after posting a wider-than-expected loss after the bell.

Jack Ablin, chief investment officer at Harris bank in Chicago, said: "This is the most solid evidence that we have seen that conditions are improving."

After the close, the focus turned to the technology sector, with traders awaiting earnings from Yahoo! ( YHOO - news - people ) and Apple ( AAPL - news - people ). Shares of Yahoo! lost 1.5% during the day; Apple trimmed its decline in the final hour to finish unchanged.

While earnings have faltered at other electronics companies, unexpectedly strong sales of Macintosh computers and a surge in iPhone purchases pushed Apple's profit up 15 percent in the third quarter, the company said Tuesday.

"We're making our most innovative products ever and our customers are responding," Steven P. Jobs, the chief executive, said in a statement.

Apple recorded its best nonholiday quarter ever when other electronics makers were hurting because of a downturn in consumer spending. According to various estimates, PC shipments for the industry fell 3 to 5 percent over the last three months. But Apple said it sold 2.6 million Macs in the quarter, up about 18 percent from the 2.2 million it sold in the previous quarter, which ended March 28.

Apple said Mac sales were helped in June by updates to its line of MacBook Pro laptops, which got new features like longer battery life and a price reduction of $300, or 25 percent, from the previously least expensive Pro model. Timothy D. Cook, Apple's chief operating officer, said the company saw an "acceleration of sales" after the introduction, which he said had led to some inventory shortages.

About half of Mac buyers in Apple's own retail stores had never owned a Mac before, said Mr. Cook.

Shaw Wu, an analyst at Kaufman Brothers, said that Macintosh computers were "resonating with increasing number of customers, as it is arguably the best platform for what people do today, which includes Web surfing and creating and managing content."

Apple also benefited from the June introduction of a new smartphone, the iPhone 3GS. Apple sold 5.2 million phones in the quarter, up from 3.79 million in the April quarter. The 3GS includes new features like the ability to record video, send picture messages and dial with voice commands. Apple previously said it sold more than one million 3GS handsets in the first three days of the product's availability.

Apple also lowered the price of the old iPhone 3G to $99 in an effort to increase its market share in the expanding market for smartphones, although the company would not say how well it was selling.

The company's overall gross profit margin grew to 36.3 percent, from 34.8 percent in the year-ago quarter.

In the only dark spot for the company, sales of the iPod dropped to 10.2 million, from 11 million a year ago, a decline of 7 percent. Analysts said the slump reflected a saturation of the market for MP3 music players as well as the migration of people to phones that play music.

Mr. Cook noted that the company had predicted and planned for the decline, and that sales of the iPod Touch — which looks similar to the iPhone and can also access applications from the company's online iTunes store — had jumped 130 percent over the last year.

Mr. Cook took the opportunity of a conference call with media and Wall Street analysts to again criticize the low-cost, pared-down computers known as netbooks, which had provided one of the few bright spots in the computer industry. He said that many netbook buyers became disappointed and that the devices were "very slow, they have software technology that is old, they don't have a robust computing experience, they lack horsepower, they have small displays and cramped keyboards."

Though analysts wonder whether Apple could introduce its own low-cost computer — or at least some kind of economical tablet reading device — Mr. Cook said Apple would only deliver a product "that is very innovative and that is something we are very proud of."

Apple reported that its net income grew to $1.23 billion, or $1.35 a share, up from $1.07 billion, or $1.19 a share, in the quarter a year ago.

Revenue rose to $8.34 billion, from $7.46 billion last year. That exceeded even some of the optimistic expectations of analysts, who projected Apple to announce revenue of $8.16 billion and a profit of $1.16 a share, according to a survey conducted by Thomson Reuters.

Apple shares were up almost $7 in after-hours trading, after closing at $151.51 in the regular session Tuesday. Wall Street is impressed with Apple's growing traction with affluent urban and suburban consumers unaffected by the recession. Analysts are also increasingly confident in how the company will fare without Mr. Jobs, who had a liver transplant in the spring but has recently returned to work.

Mr. Jobs was not present on the earnings call with analysts, as some had hoped.

The last six months "have been a resounding endorsement" of Apple's management team, led by Mr. Cook, said Gene Munster, an analyst with Piper Jaffray.

"This basically shows that in six months of running the company, Tim Cook has basically pulled it off in a terrible economy."

Apple's chief operating officer Tim Cook stood by his previous assertion that Apple's not in the market to make a netbook when pressed repeatedly by analysts during Tuesday's conference call to discuss Apple's third-quarter results. At the same time, he noted that Apple's recent laptop price cuts have helped move inventory.

With everyone from HP to Asus manufacturing mini-notebook computers--known as netbooks--many industry pundits and analysts expect that it's only a matter of time before Apple competes in this segment of the market. Cook doesn't see it happening any time soon, however--a statement he's made before during past quarterly analyst calls.

"Our goal is not to build the most computers, it's to build the best," Cook told an analyst with RBC Capital--a pithy comment he's used before when asked about Apple selling netbooks or low-priced computers. "At this point, we don't see the way to build a great product for this $399, $499, this kind of price point unit."

Pressed by a Morgan Stanley analyst for more details on a possible Apple netbook or iPhone-based tablet computer, Cook said, "I never want to discount anything in the future, and never want to specifically discuss new products."

But Cook said that customers who buy such hardware are often disappointed with their purchases, and that Apple is focused on products with the best value.

"We're only going to play in things where we can deliver things that are very innovative that we're proud of," said Cook.

And Cook and Apple have reason to be happy with the company's laptop business. Apple sold 1.75 million notebooks during the quarter, up 13 percent from the 1.553 million it sold last year during the same quarter. The strong laptop sales were boosted in part by an overhaul of the company's laptop lineup at WWDC in June that included price drops.

Cook conceded that the average selling price (ASP) of Macs did fall somewhat in the quarter, but added that, "now you can buy a MacBook Pro for $800 less than last year," and that customers are happy with that strategy and pricing.

Overall, consumer sales were strong, and Cook said that compared to projections from market research firms, Apple was "7 to 9 points ahead of the market," and thrilled with those numbers.

Internet search engine Yahoo has seen revenues in the quarter to 30 June fall 13%, citing the challenging economic environment.

Revenues for the three-month period dropped to $1.57bn (£953m) from $1.79bn in the same period a year earlier.

Meanwhile profit for the quarter edged up to $141m from $131.

Yahoo shares fell 4% in after-hours trade after saying income this quarter would range between $55m to $65m, from $76m in the second quarter.

Ross Sandler, an analyst with RBC Markets said: "Everybody expected conservative guidance. It's more conservative than even most people had expected. There aren't great estimates out there."

Yahoo chief executive Carol Bartz said "We established a clear, simple vision to be the centre of people's lives online, and we're backing that vision with important initiatives to create 'wow' experiences for our users".

Yahoo earned $141.4m, or 10 cents per share, in the quarter ending in June, up $131.2m, or 9 cents per share, in the same period in 2008.

The results come as the firm unveils its redesigned front page, to make it easier to users to access content.

The move is aimed at boosting its position as the main portal to the web. Deal?

Laxmi Poruri, an analyst with Primary Global Research, was more upbeat: "The revenue was a little bit under what people wanted but earnings per share was better than expected."

"This is definitely a sign that they're trying to be more efficient. What's really holding (the stock) up is an imminent deal that people are expecting with Microsoft."

Last year a tie-up between the firms collapsed after Microsoft's $47.5bn takeover bid for Yahoo collapsed.

And Yahoo's attempt to form an alliance with Google came to nothing following regulatory examination.

But in recent days, there has been renewed speculation that a deal between Microsoft and Yahoo is imminent.

Investor Carl Icahn, who holds around 5% of Yahoo, recently voiced his backing for such a deal.

What to expect today?

WEDNESDAY: Weekly mortgage applications; weekly crude inventories; Earnings from Boeing, Glaxo, Morgan Stanley, Pepsi, Pfizer, Wells Fargo, Bank of NY Mellon; Delta; KeyCorp; SunTrust, US Bancorp, Qualcomm, eBay and Sandisk.

Asia:

Tokyo stocks edged up Wednesday but gains were limited as investors remained cautious ahead of a series of corporate earnings reports and an August general election. The benchmark Nikkei 225 Stock Average rose 15.67 points, or 0.16 per cent, in morning trading to 9,667.69 after the index surged more than 2 per cent the previous day.

Japanese property developer shares slumped amid concern the economy won't stage a quick recovery, offsetting gains by makers of semiconductor materials after Shin-Etsu Chemical Co. said it is seeking to boost prices.

Tokyo Tatemono Co. lost 2.8 percent after the property developer's president told the Nikkei on July 20 he doesn't expect a sharp economic rebound in Japan.

Hong Kong stocks rose on Wednesday morning, with the benchmark Hang Seng Index opening 59 points higher at 19,560.

The Hang Seng China Enterprise Index, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, opened 92 points higher at 11,684.

China Life Insurance<601628><2628><LFC> rose 1.05% from the previous closing to HK$33.75. Ping An Insurance<601318><2318> climbed 0.53% and opened at HK$66.5.

On currency markets at 9 am (0000 GMT), the dollar traded at 93.50-55 yen, down from Tuesday's 5 pm quote of 94.07-10 yen.

The euro was quoted at 1.4197-4202 dollars, down from late Tuesday's quote of 1.4212-15 dollars, and at 132.80-85 yen, down from 133.72-76 yen.

Ford Motor Co. /quotes/comstock/13*!f/quotes/nls/f (F 6.18, -0.02, -0.32%) chalked up a 14% on-year rise in vehicle sales in China from the same period last year, according to the state-run China Daily. Total sales for the six months were 197,212 units, the report said. Changan Ford Mazda -- a tie-up with Chongqing Changan Auto Co. and Mazda Motor Corp. /quotes/comstock/!7261 (JP:7261 240.00, +8.00, +3.45%) /quotes/comstock/11i!mzdaf (MZDAF 2.15, -0.25, -10.42%) sold 140,386 cars in the first six months, up 20% from a year earlier, it said.

September Nymex crude oil futures were down 71 cents at $64.90 per barrel on Globex, after a surprise gain in U.S. crude inventories in API data late Tuesday.

Spot gold was at $946.95 per troy ounce, down $2.05 from the New York close.

China State Construction Engineering Corp plans to raise as much as 50.2 billion yuan ($7.35 billion) in the world's biggest initial public offering since March 2008.

China's largest housing contractor will sell as many as 12 billion shares at 3.96 yuan to 4.18 yuan each, according to a filing to the Shanghai Stock Exchange. The sale of a 40-percent stake values China Construction at as much as 125.5 billion yuan.

China Construction's IPO is almost 28 times larger than the second-biggest sale on the Chinese mainland this year, testing a rally that's pushed the benchmark Shanghai Composite 80 percent higher since Dec 31. The company, led by Chairman Sun Wenjie, plans to use proceeds to expand in residential construction, as a surge in bank lending drives a pickup in the housing market.

"The market won't have any problem holding up the China Construction sale," Yu Yang, a strategist at Guotai Junan Securities Co, said before the filing. "There's so much money around after the relatively loose monetary policy."

The IPO values China Construction at as much as 51.3 times 2008 profit, the company said.

China Construction's profit fell 44 percent in 2008 to 4.92 billion yuan because of the slowing property market, rising raw material prices and higher tax payments. The company and its advisors are predicting a recovery this year, as the government's 4-trillion yuan stimulus package begins to revive the world's third-largest economy.

For China's securities regulator, which began approving IPOs last month after halting sales in September last year following a stock market rout, China Construction will provide a test of investors' ability to digest new equity.

China Construction's offering is the biggest in China since PetroChina Co raised 66.8 billion yuan in October 2007. Worldwide, it is the largest IPO since Visa Inc collected more than $19 billion in March last year.

On concern that new share sales will draw liquidity away from existing equities and this year's rally has outpaced prospects for earnings growth, China stocks fell the most in more than five weeks.

The Shanghai Composite Index yesterday lost 53.71, or 1.6 percent, to 3213.21 points.

The company owns about 34.3 million sq m of land reserves and plans to use them to expand in real estate development, according to its prospectus. China Construction plans to use as much as 8 billion yuan of the IPO proceeds for 24 commercial housing projects requiring a total investment of 15.8 billion yuan.

China's investors opened the most accounts to trade stocks in 18 months, lured by the world's second-best performing benchmark index and a rebound in the nation's economic growth.

Investors opened 484,799 new stock accounts last week, the most since the five days ended Jan. 25, 2008, data from the nation's clearing house showed today.

"The prospect of making quick bucks in the stock market is luring retail investors," Liu Xiangning, a Shenzhen-based strategist at United Securities Co., said by telephone.

The Shanghai Composite Index has rallied 78 percent this year as banks tripled new loans to 7.37 trillion yuan ($1.1 trillion) in the first half from a year earlier and the government implemented a stimulus package. Gross domestic product grew 7.9 percent in the second quarter, the statistics bureau said July 16, as the nation became the first of the major economies to rebound from the global recession.

China will sustain growth because it can cut interest rates or trim income taxes to spur consumer spending, Invesco Asia Ltd. fund manager Samantha Ho said in an interview yesterday in New York. Ho manages $3 billion in Chinese equities. 
 
INVESTMENT VIEW
Electrosteel Casting-BUY  
Private miners like Electrosteel Castings which have opened iron ore, thermal and metallurgical grade coal mines in Orissa and Jharkhand will be key beneficiaries of lowered raw material costs. The Q1 results show an extra-ordinary performance.   

Thermal Coal-Structurally Improving  

Imports by the Indian State Electricity Board continue to increase as local coal production cannot keep pace with demand. The first of the ultra mega power plant projects using imported coal is ahead of construction schedule. Plant capacity will be 4GW due on-stream in 2012-13, requiring 11-12Mtpy of Indonesian coal. 

 Demand. The markets for high moisture low calorific value coal are mainly in India and China. If import demand in these regions does not expand as expected, Indonesian coal will struggle to find growth markets elsewhere. 

 Investment Flows Are Back 
Investors in commodity markets are back with a bang. Actually, investments proved extremely robust through the downturn and are now increasing once more.   

A number of characteristics of commodity markets have attracted renewed investor interest: 

A switch to hard assets. Commodities are defensive in an environment of systemic risk in finance markets. 

 

The reflation trade. Although deflation remains the central concern of markets, there is an increasing view that inflation may be the inevitable consequence of the massive fiscal stimulus measure, and that the inflation threat may not be that far into the future.   

One line of statistical support is the explosive growth in money supply, often a lead indicator of inflation.   

A weakening USD. Investment in bullion increased strongly in recent months despite relative USD strength. The main consideration here has been risk of competitive exchange rate devaluation and a broad based loss of confidence in all paper based currencies rather than USD strength per see.   

Now however it would appear that more traditional drivers are asserting themselves, and increased investment into a wider range of commodities is being attracted by a weakening USD. There is a strong trend relation between base metal prices and the USD, although it occasionally breaks down in the short term.   

Trough cycle prices. In early 2009 prices for most commodities declined to our trough cycle targets, implying that fundamental price support from costs and margins would prevent further sustained downward pressure on prices. 

This at a time when there was persisting downside risk in other asset classes. 

Improving global economic and demand outlook. The second derivative of global growth is improving signaling improving prospects for positive demand growth.   

Evidence   
Investment flows into commodity index products have turned strongly positive. This largely reflects investments by long only funds.

(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

Market Outlook for 21st July 2009

Intraday Calls 21st Jul 2009
Buy Cairn-246 @ 240 for a target 246-252 stop loss 235
Buy ACC-844 @ 835 for a target 856 stop loss 827
Buy KotakBank-673 for a target 690 stop loss 667 

 

NIFTY FUTURES LEVELS

RESISTANCE

4528

4572

4614

SUPPORT

4500

4480

4436

4394

4325

4283

Buy ALLAHABAD BANK,HCL TECHNOLOGIES

 

Stocks that are in news today:
From Agencies: Indiabulls Financial Services sells shares worth $200 million to institutions at Rs 171/share
Ranbaxy gets okay to make, market Ran-Amlodipine in Canada
US SEC seeks India's permission to probe Satyam: PTI
Spinnaker Cap looking to sell 25% stake in Sanghi Industries – Mint

 

NIFTY FUTURES (F & O):  
Rally may continue up to 4528 level for time being.

Support at 4480 & 4500 levels. Below these levels, expect profit booking up to 4436-4438 zone and thereafter slide may continue up to 4394-4396 zone by non-stop.

Buy if touches 4325-4327 zone. Stop Loss at 4283-4285 zone.

On Positive Side, cross above 4570-4572 zone can take it up to 4612-4614 zone. If crosses and sustains this zone then uptrend may continue.
 
Short-Term Investors:  
Bullish Trend. 3 closes above 3906 level, it can zoom up to 4600 level by non-stop. 

BSE SENSEX:  
Higher opening expected. Uptrend should continue. 

Short-Term Investors: 
 Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.
 

POSITIONAL  BUY:
Buy ALLAHABAD BANK (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 82 level can be used to buy. If uptrend continues, then it may continue up to 88 level for time being. 

If crosses & sustains at above 93 level then

uptrend may continue.

Keep a Stop Loss at 77 level for your long positions too.
 
Buy HCL TECHNOLOGIES (NSE Cash) 

Uptrend to continue.

Mild sell-off up to 228 level can be used to buy. If uptrend continues, then it may continue up to 245 level for time being. 

If crosses & sustains at above 256 level then

uptrend may continue.

Keep a Stop Loss at 217 level for your long positions too.
  

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

Sesa Goa,HCL Tech,DCHL,Polaris, Wipro,TechM,Indusind Bank,Grasim,Yes Bank and Hero Honda.

And this is list of 10 Weak futures:

Orchid Chem,Nagarjuna Fert, Sintex Indus, Bajaj Hind, Suzlon, KSOILS, Pantaloon, GTL INFRA, Chambal Fert and Moser Baer
 Nifty is in Up Trend.

 

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	20-Jul-2009	2498.66	1935.46	+563.2

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	20-Jul-2009	1473.82	1321.97	+151.85

 

SPOT LEVELS TODAY

	4502.25	( 2.91 %)	127.30
		1	2	3
Resistance		4549.07	4595.88	4681.47
Support		4416.67	4331.08	4284.27

	15191.01		( 3.03 %)	446.09
			1	2	3
Resistance			15315.52	15440.04	15670.71
Support			14960.33	14729.66	14605.14

Global Cues & Rupee  
The Dow Jones Industrial Average closed at 8,848.15. Up by 104.21 points.
The Broader S&P 500 closed at 951.13. Up by 10.75 points.

The Nasdaq Composite Index closed at 1,909.29. Up by 22.68 points.

The partially convertible rupee closed at 48.21/22 per dollar on yesterday, stronger than Friday's close of 48.73/74.
 
 Interesting findings on web:
Stocks jumped again Monday, giving the Dow Jones industrials their sixth straight advance, as investors gotmore robust earnings news from big companies and data that suggests the economy is closer to a recovery.

A 100-point gain pushed the Dow back into the black for the year, while the Standard & Poor's 500 climbed to its highest finish since November.

Wall Street's best-known index ended at its highest level since Jan. 6. The last time the Dow was this high stocks were just about to endure a steep drop that left the blue chips at a 12-year low on March 9.

The Dow is up 35 percent from its March low but still down 37.5 percent from its record of 14,164.53 in October 2007.

The S&P 500 index rose 10.75, or 1.1 percent, to 951.13, its best finish since Nov. 5. November's lows last year came after months of brutal selling as the financial crisis intensified in the fall with the collapse of Lehman Brothers.

Investors had hoped the November lows would be the bottom of the market's retreat but stocks slid further by March.

The Nasdaq composite index rose 22.68, or 1.2 percent, to 1,909.29, its ninth straight advance. The index is at its highest mark since Oct. 3, during the most furious selling of the credit crisis.

With the bulk of earnings reports still to come, the market has yet to hear from some key industries including retailing. If those results are disappointing, it could force investors to rethink their most recent rally. Several factors are still hanging over the market including record-high unemployment and a damaged housing market.

Goldman Sachs said that it believed that the S&P 500 would enjoy its best second-half rally since 1982, and boosted its forecast for the index, predicting a 15 per cent jump from its closing level 919.32 on June 30, to 1,060 on December 31.

Shares in Johnson Controls , the car-parts maker that has had to restructure following the bankruptcies of major carmakers, jumped after the company announced its first quarterly profit since last autumn. Cost cuts helped the company make up for disappointing demand and its shares climbed 7.25 per cent to $23.08.

Alcoa , the aluminium maker, which is particularly sensitive to growth, rose 3.72 per cent to $10.60, while Halliburton , the oilfield services company edged 4.44 per cent higher to $22.33 after it announced revenue and profits ahead of estimates.

In the financial sector M&T Bank rose 4.9 per cent to $57.11 after the company's earnings beat expectations and Rene Jones, the chief financial officer said credit costs remained in line with the bank's expectations and "continue to remain favourable" compared with the industry. But other banks fared less well - Citigroup and Bank of America both lost a chunk of last week's impressive gains as investors digested mixed analysts reports following their earnings last week, which beat estimates only after large one-off gains.

Citigroup gave up 7.62 per cent to $2.79 and Bank of America fell 5.04 per cent to $12.24.

Shares in Human Genome Sciences soared 276 per cent to $12.51 after it said that a trial showed that its experimental drug to cure lupus helped half the patients tested. This would be the first new treatment in decades for the disease, for which there is no cure.

Bank of America ( BAC - news - people ) lost 5% after an analyst at Fox-Pitt Kelton lowered his rating on the firm and cut his profit estimates. Citigroup ( C - news - people ) shares lost 8% in regular trading after announcing plans to issue $2.5 billion worth of 30-year bonds.

Bank of America-Merrill Lynch upped Caterpillar Inc (CAT.N) to "buy," saying the second quarter could mark a bottom for the construction sector.

Credit Suisse upgraded Cisco Systems (CSCO.O) to "outperform," writing that field checks indicated improving business trends throughout the quarter.

Morgan Stanley lifted Walt Disney Co (DIS.N) to "overweight" from "equal-weight" as part of a larger call on the media sector, which the firm upgraded to "attractive."

Also in company news, Human Genome Sciences Inc (HGSI.O) soared 221.7 percent to $10.68 after its experimental lupus drug was successful in a late-stage clinical trial.

Halliburton (HAL.N), Johnson Controls (JCI.N), Eaton (ETN.N) and Hasbro (HAS.N) were among the companies that advanced on quarterly results that impressed investors.

CIT in private deal to avoid bankruptcy -source.

Caterpillar, Cisco and Disney all upgraded by analysts.

Nasdaq touches intraday high for 2009.

Companies scheduled to report quarterly results after the close include Texas Instruments Inc (TXN.N), Legg Mason Inc (LM.N) and Zions Bancorp.

Despite warning of significant risk of a "double-dip" recession, Goldman Sachs raised its year-end target for the S&P 500 to 1,060 from 940 -- a boost of 12 percent from current levels.

On Monday, an index gauging the U.S. economy's prospects increased for a third straight month in June, suggesting the recession was drawing to a close, the Conference Board said.

The index of leading economic indicators gained 0.7 percent in June, exceeding economists' forecasts, and following May's revised increase of 1.3 percent.

CIT Group soared 79 percent. The lender said after the close of trading it reached a funding agreement with bondholders.

CIT Group, which provides financing to nearly 1 million small businesses, agreed to a $3 billion loan for 2.5 years from a group of its bondholders as it seeks to restructure its debt and avoid bankruptcy.

CIT, founded in 1908, is a lender to around 1 million mostly small and midsize businesses ranging from restaurants and private schools to clothing makers. It also leases railcars, aircraft and equipment, and it has a large business providing, cash to manufacturers and collecting on their invoices.

For years, CIT funded its activities largely by selling bonds - only to find itself in trouble when credit markets frozeup a year or so ago.

CIT Group Inc secured a $3 billion loan facility from its bondholders on Monday and said it plans a comprehensive restructuring of its liabilities, but gave few details.

With the emergency loan, the 101-year-old lender to small and mid-sized businesses warded off a threat of imminent bankruptcy, but many experts questioned its ability to survive in the current form.

An even busier week of earnings reports will further shape investors' view of the economy. Reports are due Tuesday from industrial equipment maker Caterpillar Inc. and drug maker Merck & Co.

Oil prices rose 42 cents to settle at $63.98 a barrel. Gold rose, while the dollar was mixed.

Bond prices rose, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.60 percent from 3.66 percent late Friday.

Federal Reserve Chairman Ben S. Bernanke may outline his strategy tomorrow for exiting history's biggest monetary expansion in testimony to Congress.

Treasuries rose, pushing yields down from the highest levels in almost four weeks, amid speculation Bernanke may ease inflation concerns. The dollar dropped to a six-week low against the euro.

Ten-year note yields fell the most in six days before the central bank chairman's semiannual economic report to lawmakers at 10 a.m. tomorrow in Washington.

"The focus of Treasuries is on Bernanke's testimony," said Kevin Giddis, head of fixed-income sales, trading and research at the brokerage Morgan Keegan Inc. in Memphis, Tennessee. "We are caught in a summertime range trade. The general feeling is that he will say things are getting better, but make no mention of when the economy will do a full turn."

Crude oil rose for a fourth day. The commodity advanced after a measure of economic indicators signaled that the worst of the recession is over. The Conference Board's gauge of the outlook for the next three to six months increased 0.7 percent, more than forecast, and climbed three straight months for the first time since 2004.

Gold climbed to a five-week high as a weaker dollar and higher oil prices boosted the metal's appeal as an alternative investment and a hedge against inflation.

Gold futures for August delivery gained $11.30, or 1.2 percent, to $948.80 an ounce on the New York Mercantile Exchange's Comex division.Earlier, the price reached $955.40, the highest for a most-active contract since June 12.

"Gold is moving up today due to the lower U.S. dollar," said Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis.

President Barack Obama said on Monday that Wall Street banks had failed to show remorse for the "wild risks" that triggered a financial meltdown and helped to push the United States into recession.

Asia:

Japanese stocks advanced after Goldman Sachs Group Inc. lifted its estimate for the Standard & Poor's 500 Index on improving earnings and as raw materials prices rose.

Nikkei buoyed by U.S. stock gains, economic optimism

Deal to rescue CIT group relieves financial system worry.

Eyes on Japan election, but stock impact limited for now.

Resistance strong near 25-day moving average around 9,600.

Japanese cabinet members signed off on Prime Minister Taro Aso's plan to dissolve parliament's lower house on Tuesday for an election expected on Aug. 30.

Market analysts said investors were watching political developments, but that they were unlikely to be a strong trading factor for the day, although a slight jump could come after parliament is actually dissolved.

"Now we will have 40 days of a political vacuum, and overseas investors may not like this very much. They tend to be scared off by political instability," said Noritsugu Hirakawa, a strategist at Okasan Securities.

All members of the Bank of Japan's policy board agreed last month that economic conditions in Japan had stopped worsening, with the policy makers beginning to discuss the end of special liquidity measures, according to minutes of the board's June 15-16 meeting, released Tuesday.

Among the companies whose shares are expected to see active trade in Tuesday's session are Apple Inc., Coca-Cola Co., Starbucks Corp. and Yahoo Inc.

Hang Seng Index declines 0.6% to 19,381.01

The number of unemployed in Hong Kong has hit a near four-year high with worse expected as graduating students start to seek work. The unemployment rate climbed to 5.4 per cent between April and June, up from 5.3 per cent in the first quarter and the highest level since November 2005, the Census and Statistics Department said.

About 203,000 people were out of work in the second quarter while the number of those employed fell by 8,700 to 3.51 million, the department said.

"Given the current economic situation and the entry of fresh graduates and school leavers into the labour market in the coming months, the unemployment rate is expected to face upward pressure in the near term," Labour and Welfare Secretary Matthew Cheung Kin-chung said.

New home prices in 36 medium- and large-sized Chinese cities rose 6.3 percent in June from a year earlier as bank lending tripled in the first half.

The average price of new homes rose to 6,554 yuan (US$959) per square meter, the National Development and Reform Commission said on its Web site Monday.

New home prices in June rose 1.1 percent from May, China's top economic planning agency said.

The increase in new bank loans to 7.37 trillion yuan in the first half helped spur demand for property and boosted prices, said Bohai Securities Co.

analyst Zhou Hu. Housing prices in 70 major Chinese cities rose in June for the first time in seven months, the government said July 10.

"China's property market is recovering and prices should continue to rise in the third quarter," said Zhou, who recommends buying shares of China Vanke Co. and Poly Real Estate Group Co., the country's biggest developers by market value.

Nationwide property sales in June rose 32 percent by floor space and 53 percent by value from a year earlier, the National Bureau of Statistics said July 10. Investments in property development in the first half increased 9.9 percent, the agency said.

Vanke, China's biggest developer by market value, said July 4 that its first-half property sales rose 28 percent from a year earlier to 30.8 billion yuan. Poly Real Estate said its first- half sales rose 168 percent to 21.1 billion yuan.

The China Banking Regulatory Commission Sunday ordered lenders to raise reserves against non-performing loans. The regulator's Shanghai branch also told the city's lenders to obey mortgage rules that require down payments of no less than 40 percent of the price.
 

INVESTMENT VIEW
Sujana Towers Ltd

Sujana Towers Ltd has informed BSE that as per the authorization given by the Board of Directors of the Company at their meeting held on April 29, 2009, the Management Committee of the Board of Directors of the Company at their meeting held on July 07, 2009 have transacted the following business:

1. Approved the resolution to issue further equity shares and convertible warrants of the Company to promoters and others aggregating to Rs 44.00 Crores (including premium and after conversion of warrants) by way of Preferential Allotment.

2. Approved the resolution to take decision for passing the special resolution by the members of the Company by postal ballot for raising of equity share capital by way of issuing further equity shares/warrants of the Company to the promoters and others under preferential allotment.

(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