BUY Kalpataru Power at 177
Thursday, 19 June 2014
Wednesday, 18 June 2014
Friday, 4 April 2014
VIEWS FOR 04.04.2014
Book profits in PNB at 755
BUY SUNPHARMA AT 575.50 SL 57 TGT 585
BUY PNB AT 743 SL 739 TGT 755
BUY SUNPHARMA AT 575.50 SL 57 TGT 585
BUY PNB AT 743 SL 739 TGT 755
Thursday, 3 April 2014
VIEWS FOR 03.04.2014
BUY CAIRN INDIA AT 344 SL 333 TGT 366
BUY ABG SHIPYAR AT 261 sl 250 TGT 310
buy tatamotors in 413-407 range SL 405 TGT 425
buy sunpharma at 575 SL 571 TGT 585
buy idea at 143 SL 140 TGT 147
sell asian paints at 523 SL 527 TGT 515
BUY ABG SHIPYAR AT 261 sl 250 TGT 310
buy tatamotors in 413-407 range SL 405 TGT 425
buy sunpharma at 575 SL 571 TGT 585
buy idea at 143 SL 140 TGT 147
sell asian paints at 523 SL 527 TGT 515
EXPERT VIEWS FOR 03.04.2014
'BUY' or 'SELL' ideas from experts for Thursday, 03 April 2014
Indian markets are expected to trade in a range with a positive bias on Thursday tracking strong global cues.ET Now spoke to various experts and here's what they have to recommend for today's trade:
- Ashwani Gujral of ashwanigujral.com
Union Bank of India is a 'BUY' call with a target of Rs 154 and a stop loss of Rs 139
Thomas Cook Ltd is a 'BUY' call with a target of Rs 110 and a stop loss of Rs 92
Bank of India is a 'BUY' call with a target of Rs 246 and a stop loss of Rs 230
BGR Energy Ltd is a 'BUY' call with a target of Rs 147 and a stop loss of Rs 130
Oriental Bank of Commerce is a 'BUY' call with a target of Rs 248 and a stop loss of Rs 238
- Mitesh Thacker of miteshthacker.com
Andhra Bank is a 'BUY' call with a target of Rs 71 and a stop loss of Rs 63.75
GMR Infrastructure Ltd is a 'BUY' call with a target of Rs 24.75 and a stop loss of Rs 22.85
Godrej Industries Ltd is a 'BUY' call with a target of Rs 336 and a stop loss of Rs 318
MRF Ltd is a 'BUY' call with a target of Rs 23200 and a stop loss of Rs 21700
PTC India Ltd is a 'BUY' call with a target of Rs 72 and a stop loss of Rs 66.50
- Sandeep Wagle, Founder & CEO, Power My Wealth
Aurobindo Pharma Ltd is a 'BUY' call with a target of Rs 590 and a stop loss of Rs 543
Bombay Dyeing Ltd is a 'BUY' call with a target of Rs 68 and a stop loss of Rs 57
Usha Martin Ltd is a 'BUY' call with a target of Rs 43 and a stop loss of Rs 36.50
Chambal Fertilisers Ltd is a 'BUY' call with a target of Rs 47 and a stop loss of Rs 40.50
NIIT Ltd is a 'BUY' call with a target of Rs 36 and a stop loss of Rs 29.50
(Views and recommendations expressed in this section are the analysts' own and do not represent those of EconomicTimes.com.Please consult your financial advisor before taking any position in the stocks mentioned.)
MARKETS NEWS, VIEWS AND RECOMMENDATIONS FOR 03.04.2014
STOCKS IN NEWS
IDFC: The Reserve Bank of India said on Wednesday it had granted bank licenses to IDFC Ltd and Bandhan Financial Services that would be valid for 18 months and would be subject to the two financial firms fully complying with central bank regulations.
Bharti Airtel Ltd: The global telecommunications services provider with operations in 20 countries across Asia and Africa, and IBM announced that they have signed a new agreement to manage Airtel's infrastructure and application services in India over the next five years.
Ashok Leyland Ltd: Hinduja Group flagship company Ashok Leyland said it has bagged an order worth $ 50 million (nearly Rs 300 crore) from the Zimbabwe government for the supply of 670 vehicles.
Reliance Industries Ltd: Reliance Industries said it secured $ 500 million financing from export credit agency Export Development Canada (EDC).The transaction is among the largest financing packages the EDC has extended in Asia, the company said in a statement.
Wipro Ltd: Wipro has undertaken a major organizational revamp, reshuffling the portfolios of some of its senior leadership and creating new divisions. Pratik Kumar, executive VP-HR at Wipro, has transitioned out of the HR role. Saurabh Govil, senior VP-HR, will now lead the HR function and will report to company CEO T K Kurien.
IDBI: Public sector IDBI Bank has divested its entire 18.95 per cent stake in Stock Holding Corporation of India to IFCI Ltd. "Informed BSE that the bank has divested its entire equity holding of 39,90,000 shares (18.95 per cent) in Stock Holding Corporation of India Ltd to IFCI Ltd," IDBI Bank said in a regulatory filing to the exchange.
MTNL Ltd: State-owned Mahanagar Telephone Nigam Ltd has received a total tax refund of 146 crore for assessment years 2007-08 (111 crore) and 2009-10 (?34.94 crore), the company said in an exchange filing. Shares of MTNL gained 2.5 per cent at 16.15 on the NSE.
Ashok Leyland Ltd: Hinduja Group flagship company Ashok Leyland said it has bagged an order worth $ 50 million (nearly Rs 300 crore) from the Zimbabwe government for the supply of 670 vehicles.
Reliance Industries Ltd: Reliance Industries said it secured $ 500 million financing from export credit agency Export Development Canada (EDC).The transaction is among the largest financing packages the EDC has extended in Asia, the company said in a statement.
Wipro Ltd: Wipro has undertaken a major organizational revamp, reshuffling the portfolios of some of its senior leadership and creating new divisions. Pratik Kumar, executive VP-HR at Wipro, has transitioned out of the HR role. Saurabh Govil, senior VP-HR, will now lead the HR function and will report to company CEO T K Kurien.
IDBI: Public sector IDBI Bank has divested its entire 18.95 per cent stake in Stock Holding Corporation of India to IFCI Ltd. "Informed BSE that the bank has divested its entire equity holding of 39,90,000 shares (18.95 per cent) in Stock Holding Corporation of India Ltd to IFCI Ltd," IDBI Bank said in a regulatory filing to the exchange.
MTNL Ltd: State-owned Mahanagar Telephone Nigam Ltd has received a total tax refund of 146 crore for assessment years 2007-08 (111 crore) and 2009-10 (?34.94 crore), the company said in an exchange filing. Shares of MTNL gained 2.5 per cent at 16.15 on the NSE.
Axis Bank Ltd: Axis Bank raised debt security of $ 30.6 million in the international market under Medium Term Note (MTN) programme. The debt security has been raised through its Dubai International Centre branch.
Suzlon Energy Ltd: Suzlon Energy has taken over a wind farm in the US to recover $208 million it said was outstanding from client Edison Mission Energy, which had withheld the payment accusing the Indian wind-turbine maker of supplying defective equipment.
Suzlon Energy Ltd: Suzlon Energy has taken over a wind farm in the US to recover $208 million it said was outstanding from client Edison Mission Energy, which had withheld the payment accusing the Indian wind-turbine maker of supplying defective equipment.
SpiceJet Ltd: SpiceJet claims it recorded 220,000 bookings on Tuesday, as customers lapped up tickets with a base fare of Re 1. Typically, the airline sells 40,000 seats a day. On Tuesday, it had a fare of Re 1 for one or two seats a flight, less than two per cent of its daily inventory, said media reports.
NIFTY NEWS
Indian markets are expected to trade in a range on Thursday following positive trend seen in other Asian markets. The key support for the index is around 6,713 levels.
"The Nifty is expected to trend up till 6770 in the next couple of days. In this period the key support will be at 6713 and resistance will be at 6770," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market," he added.
Mehta is of the view that the short-term bias remains positive for a target of 6770 with reversal at 6560. The medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
"The Nifty is expected to trend up till 6770 in the next couple of days. In this period the key support will be at 6713 and resistance will be at 6770," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market," he added.
Mehta is of the view that the short-term bias remains positive for a target of 6770 with reversal at 6560. The medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
Pre-market: Nifty seen opening higher; NBFCs in focus
The 50-share Nifty index is expected to open higher on Thursday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to head higher but may face some resistance above 6750 levels.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 55 point higher at 6776.50, indicating a higher opening on the domestic market.
Shares in non-banking finance companies (NBFCs) which have applied for bank licenses will be in focus after the Reserve Bank of India (RBI) granted "in-principle" bank licences to Infrastructure Development Finance Co and microfinance lender Bandhan Financial Services Ltd.
The Nifty extended its winning streak for tenth straight session on Wednesday and closed at an all-time high on the back of strong inflows from foreign institutional investors.
The Indian equity market ended at another life-time high for the seventh consecutive day on Wednesday as the Indian currency further strengthened against the US Dollar. The rupee hit a high of Rs. 59.60 per dollar, its strongest since July 30, 2013.
On technical charts, the momentum indicators are extremely overbought and if the market faces any correction, it may last for atleast 2-3 per cent on the indices. However, the ideal strategy is to continue to remain bullish, and trail the stop losses at every high made by the index, say analysts.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 55 point higher at 6776.50, indicating a higher opening on the domestic market.
Shares in non-banking finance companies (NBFCs) which have applied for bank licenses will be in focus after the Reserve Bank of India (RBI) granted "in-principle" bank licences to Infrastructure Development Finance Co and microfinance lender Bandhan Financial Services Ltd.
The Nifty extended its winning streak for tenth straight session on Wednesday and closed at an all-time high on the back of strong inflows from foreign institutional investors.
On technical charts, the momentum indicators are extremely overbought and if the market faces any correction, it may last for atleast 2-3 per cent on the indices. However, the ideal strategy is to continue to remain bullish, and trail the stop losses at every high made by the index, say analysts.
"Technically, the short term trend has now seen 10 consecutive days of positive momentum, with almost 7 out of 10 days, the markets closing at near to the high points of the day," LKP said in a report.
Investors should use trailing stop loss in Nifty placed around 6600-6620 level, says LKP.
Overnight, US stocks closed at another record high on as signs of steady private-sector hiring showed that the economy is on the right track.
"Wednesday's data from payrolls processor ADP showed U.S. private-sector employers added 191,000 workers in March, slightly below the 195,000 forecast, while gains in the previous month were revised to 178,000 from a previously reported 139,000," Reuters reported.
The Dow Jones industrial average rose 40.39 points or 0.24 percent, to end at 16,573. The S&P 500 gained 5.38 points or 0.29 percent, to finish at 1,890.90, a record closing high. The S&P 500 also hit an intraday record high of 1,893.17.The Nasdaq Composite added 8.416 points or 0.20 percent, to close at 4,276.456.
Asian shares edged higher to four-month highs as upbeat U.S. data underpinned risk appetite, leaving the yen languishing at 10-week lows.
"The outlook for the Japanese currency remains weak. It is expected to lose ground as persistently low inflation and an economy hurt by a sales tax is likely to force the Bank of Japan to ramp up its own stimulus just as the Federal Reserve winds down its own," added a Reuters report.
Japan's Nikkei 225 index was trading 0.6 per cent higher at 15,037.50 and Hong Kong's Hang Seng index was trading 0.26 per cent higher at 22,581.12.
Investors should use trailing stop loss in Nifty placed around 6600-6620 level, says LKP.
Overnight, US stocks closed at another record high on as signs of steady private-sector hiring showed that the economy is on the right track.
"Wednesday's data from payrolls processor ADP showed U.S. private-sector employers added 191,000 workers in March, slightly below the 195,000 forecast, while gains in the previous month were revised to 178,000 from a previously reported 139,000," Reuters reported.
The Dow Jones industrial average rose 40.39 points or 0.24 percent, to end at 16,573. The S&P 500 gained 5.38 points or 0.29 percent, to finish at 1,890.90, a record closing high. The S&P 500 also hit an intraday record high of 1,893.17.The Nasdaq Composite added 8.416 points or 0.20 percent, to close at 4,276.456.
Asian shares edged higher to four-month highs as upbeat U.S. data underpinned risk appetite, leaving the yen languishing at 10-week lows.
"The outlook for the Japanese currency remains weak. It is expected to lose ground as persistently low inflation and an economy hurt by a sales tax is likely to force the Bank of Japan to ramp up its own stimulus just as the Federal Reserve winds down its own," added a Reuters report.
Japan's Nikkei 225 index was trading 0.6 per cent higher at 15,037.50 and Hong Kong's Hang Seng index was trading 0.26 per cent higher at 22,581.12.
South Korea's Kospi index was trading 0.3 per cent higher at 2,004. China's Shanghai index was trading flat at 2,058.
Profit-booking likely soon in overbought market, feel analysts
Brokerages are advising clients, primarily HNI investors, to exercise caution ahead of the elections. Even as the market touches a new high, there are fears that volatility could creep in. Some of the technical analysts think that Nifty's 6800 and 7000 levels are important psychological resistance levels with the market are currently at an overbought zone.
"The immediate resistance for Nifty is seen at 6779, after which 6800 is seen as major psychological resistance levels. We expect some profit booking to emerge going ahead as markets are currently at overbought zone. On the downside 6,660 is seen as important support level," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services. The broader index, NSE Nifty rallied 31 points or 0.47%, to end at 6,752 points on Wednesday, its highest closing ever.
The benchmark index BSE Sensex surged 105 points or 0.47%, to close at 22,551 points. Indian markets hit a new high on Wednesday, extending gains for 10 straight sessions, its longest winning streak in over six years, primarily on foreign fund buying.
"We would like to advise investors that one should exercise caution going ahead, because volatility is expected to increase which may lead to market resistance at higher levels. However, Nifty can touch 7,000 levels, if foreign fund flows continue to remain robust," said Deven Choksey, managing director at KR Choksey Securities.
Meanwhile, the foreign institutional investors ( FIIs) have pumped in a whopping $ 3.3 bliion, or Rs 20,000 crore, last month and riding the rally, they bought equities worth over Rs 594 crore on Wednesday. The rupee further gained against the US dollar. The local currency hit a high ofRs 59.60, its strongest level since July 30, 2013, which also boosted investors' sentiment .Among blue chip stocks, Reliance Industries and Larsen & Toubro hit 52-week highs.
RIL closed 1.68% higher at Rs 956 while L&T ended 1.85% up at Rs 1,299. Bank stocks continued to perform well despite the Reserve Bank of India's somewhat hawkish stance on interest rates. India's largest lender SBI surged 2.06% to end at Rs 1933 while HDFC rose 1.09% to close at Rs 897. "While the broader market has moved up a bit, we have seen pressure on sectors like IT and pharma because the rupee has appreciated and some of the cyclical sectors have done well.
The sectoral rotation will continue and it would keep the market upside in check for some time," said Mahesh Patil, Fund Manager, Birla Sun Life MF. Among frontline stocks Bharti Airtel was the biggest gainer in the Sensex, up 3.34% to end at Rs 326, after leading brokerage house CLSA said that the telecom services provider is best placed to ride the data boom in India.
Wednesday, 2 April 2014
VIEWS for 02.04.2014
BUY EID Parry at 147 SL 139 TGT 170
BUY ADANI ENT above 359 SL 357 TGT 364
Market resistance at 6750. Expect momentum above 6770
Sell Havells India at 918-920 TGT 900 SL 925
BUY ADANI ENT above 359 SL 357 TGT 364
Market resistance at 6750. Expect momentum above 6770
Sell Havells India at 918-920 TGT 900 SL 925
EXPERT VIEWS FOR 02.04.2014
'BUY' or 'SELL' ideas from experts for Wednesday, 02 April 2014
Indian markets are expected to trade in a range on Wednesday with a positive bias following strong global cues.
ET Now spoke to various experts and here's what they have to recommend for today's trade:
- Ashwani Gujral of ashwanigujral.com
Rajesh Exports Ltd is a 'BUY' call with a target of Rs 112 and a stop loss of Rs 95
J&K Bank Ltd is a 'BUY' call with a target of Rs 1670 and a stop loss of Rs 1600
Jai Corp Ltd is a 'BUY' call with a target of Rs 70 and a stop loss of Rs 58
Bombay Burmah Trading Ltd is a 'BUY' call with a target of Rs 118 and a stop loss of Rs 100
SKS Microfinance Ltd is a 'BUY' call with a target of Rs 232 and a stop loss of Rs 210
Arvind Ltd is a 'BUY' call with a target of Rs 190 and a stop loss of Rs 173
- Mitesh Thacker of miteshthacker.com
Dabur India Ltd is a 'BUY' call with a target of Rs 198 and a stop loss of Rs 182
Tata Chemicals Ltd is a 'BUY' call with a target of Rs 306 and a stop loss of Rs 286
Tata Global Beverages Ltd is a 'BUY' call with a target of Rs 162 and a stop loss of Rs 150
Tata MotorsBSE 1.17 % DVR is a 'BUY' call with a target of Rs 225 and a stop loss of Rs 205
Cairn India LtdBSE 3.68 % is a 'BUY' call with a target of Rs 370 and a stop loss of Rs 335
- Sandeep Wagle, Founder & CEO, Power My Wealth
Dabur India Ltd is a 'BUY' call with a target of Rs 203 and a stop loss of Rs 183
J&K Bank Ltd is a 'BUY' call with a target of Rs 1710 and a stop loss of Rs 1580
FDC LtdBSE 10.72 % is a 'BUY' call with a target of Rs 155 and a stop loss of Rs 134
GATI LtdBSE 12.35 % is a 'BUY' call with a target of Rs 106 and a stop loss of Rs 84
UPL Ltd is a 'BUY' call with a target of Rs 207 and a stop loss of Rs 187
(Views and recommendations expressed in this section are the analysts' own and do not represent those of EconomicTimes.com. Please consult your financial advisor before taking any position in the stocks mentioned.)
MARKET NEWS, VIEWS AND RECOMMENDATIONS 02.04.2014
STOCK IN NEWS:
BPCL, HPCL & IOC: The Oil Ministry has put on hold further diesel price increases, citing a reason that had not prevented it from hiking rates uninhibitedly about a year ago. The Cabinet had in January last year decided that diesel prices should be raised by 40-50 paise a litre every month until losses on the fuel are wiped out,
United Spirits Ltd: Leading bourse National Stock Exchange (NSE) has given its approval to Vijay Mallya-led United Spirits' proposal for transfer of a distillery in Tamil Nadu to Enrica Enterprises.
SpiceJet & Jet Airways Ltd: Jet fuel or ATF price was today cut by 4 per cent and rates of non-subsidised cooking gas (LPG) by Rs 100 per cylinder, reflecting global trends.
Coal India Ltd: State-owned Coal India(CIL) has tweaked the provision of calculating the compensation and incentive under fuel supply agreements models for the non-power consumers like cement, iron and steel.
Reliance Power Ltd: Reliance Power said its 600 MW coal-based power plant at Butibori in Maharashtra is fully operational.
Axis Bank Ltd: The Reserve Bank of India (RBI) said that foreign institutional investors will not be allowed to buy additional shares in Axis Bank Ltd as the total holding by the investors had breached the overall limit of 49 percent of the lender's paid-up capital.
South Indian Bank: The Reserve Bank restricted purchase of shares in South Indian Bank by foreign investors as the prescribed limit reached the trigger level.RBI said the foreign shareholding through Foreign Institutional Investors, NRIs, PIO, Foreign Direct Investment, Global Depository Receipts has reached the trigger limit.
United Spirits Ltd: Leading bourse National Stock Exchange (NSE) has given its approval to Vijay Mallya-led United Spirits' proposal for transfer of a distillery in Tamil Nadu to Enrica Enterprises.
SpiceJet & Jet Airways Ltd: Jet fuel or ATF price was today cut by 4 per cent and rates of non-subsidised cooking gas (LPG) by Rs 100 per cylinder, reflecting global trends.
Coal India Ltd: State-owned Coal India(CIL) has tweaked the provision of calculating the compensation and incentive under fuel supply agreements models for the non-power consumers like cement, iron and steel.
Axis Bank Ltd: The Reserve Bank of India (RBI) said that foreign institutional investors will not be allowed to buy additional shares in Axis Bank Ltd as the total holding by the investors had breached the overall limit of 49 percent of the lender's paid-up capital.
South Indian Bank: The Reserve Bank restricted purchase of shares in South Indian Bank by foreign investors as the prescribed limit reached the trigger level.RBI said the foreign shareholding through Foreign Institutional Investors, NRIs, PIO, Foreign Direct Investment, Global Depository Receipts has reached the trigger limit.
NIFTY NEWS:
Indian markets are expected to trade in a range on Wednesday following positive trend seen in other Asian markets. The key support for the index is around 6,689 levels.
"The Nifty is expected to trend up till 6770 in the next couple of days. In this period the key support will be at 6689 and resistance will be at 6730," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market. The short-term bias remains positive for a target of 6770 with reversal at 6470," he added.
Mehta is of the view that the medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
"The Nifty is expected to trend up till 6770 in the next couple of days. In this period the key support will be at 6689 and resistance will be at 6730," said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
"The Nifty has been forming higher tops and higher bottoms; it has also closed above the previous swing's high which is a positive sign for the market. The short-term bias remains positive for a target of 6770 with reversal at 6470," he added.
Mehta is of the view that the medium-term outlook remains positive as the index has started forming higher tops and higher bottoms on the weekly chart and the momentum indicator has given a positive cross-over.
Pre-market: Nifty seen opening higher; may hit 6750 levels
The 50-share Nifty index is expected to open higher on Wednesday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to hit its crucial level of 6750 in trade today.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 55 point higher at 6776.50, indicating a higher opening on the domestic market.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 55 point higher at 6776.50, indicating a higher opening on the domestic market.
Despite intraday volatility, benchmark indices managed to close at a record high on Tuesday supported by gains in technology, oil & gas and pharmaceuticals stocks.
However, rate sensitive stocks ended in the red even as the Reserve Bank of India (RBI) maintained status quo on interest rates. The RBI has left repo rate at 8 per cent, reverse repo rate at 7 per cent and CRR at 4 per cent.
However, rate sensitive stocks ended in the red even as the Reserve Bank of India (RBI) maintained status quo on interest rates. The RBI has left repo rate at 8 per cent, reverse repo rate at 7 per cent and CRR at 4 per cent.
Nifty remained highly range bound throughout the session and finally concluded the day with a gain of 16 points at 6721. In the coming few sessions as long as it trades above the level of 6640 there may be an attempt to scale higher till 6770 to 6775 range which is a very stiff resistance on a positional basis, say analysts.
"If over the next couple of sessions Nifty is not able to clear 6775 and breaches the level of 6640 then there is a likelihood of a pause to the current rally," GEPL Capital said in a report.
"Intraday support levels are placed at 6685 and below that at 6640 whereas intraday resistance level is placed at 6775 and beyond that at 6800," added the report.
Overnight, US stocks rose for a third straight session with the S&P 500 ending at a record close, after positive data on factory activity indicated economic growth was gaining traction following a harsh winter.
"The Institute for Supply Management (ISM) said its index of national factory activity rose to 53.7 in March, its second straight monthly acceleration. However, the report was below the median forecast of 54.0," Reuters reported.
The Dow Jones industrial average was up 74.95 points, or 0.46 percent, at 16,532.61. The Standard & Poor's 500 Index was up 13.18 points, or 0.70 percent, at 1,885.52. The Nasdaq Composite Index was up 69.05 points, or 1.64 percent, at 4,268.04.
The March F&O series ended on a positive note with Nifty futures gaining around 7% and with the strong base of open interest to start with the April series which was seen at 1.71 crore compared with previous month's 1.45 crore as rollovers. The rollover cost was also better at 0.62% compared with its three months average of 0.50%, suggesting long bets played for the April series. FIIs also had a healthy participation in the last series, as they infused around Rs 6,025 crore in index futures with consistent increase in the open interest and cash segment; they bought to the tune of Rs 20,000 crore odd. The start of the April series is also seen with a positive bias, where Nifty futures is trading sideways at its higher end, above the 6,700 psychological mark.
Over the last one month, Infosys fell to Rs 3,314 from Rs 3,820 and Tata Consultancy Services slipped to Rs 2,172 from Rs 2,272. The CNX IT index to down 8.9%, while technology funds category has fallen 9.2% during the same period.
However, experts say the fears are exaggerated and investors should use the correction to accumulate IT stocks with two to three-year time frame. " Nasscom, the industry body, has given higher growth guidance for 2014-15 at 13-15%. With the business environment showing improvement in the US and Europe, the main export markets, Indian IT companies should record higher volume growth," says Mrinal Singh, fund manager, ICICI Prudential Mutual Fund.
Valuations of IT companies have also turned attractive after the recent beating, say experts. "Given the fact that the sector could record a 15% volume growth, valuations look attractive," says Alok Ranjan, portfolio manager, Way2Wealth. Large cap companies like Infosys are trading at a P/E of 19.45, while Wipro is available at a P/E of 20.88 and HCL TechBSE 1.99 % is available at a P/E of 20.21. He feels Infosys' lower guidance is only for this quarter and company specific, and it does not reflect the fortunes of the industry for the next year. "Investors looking for a contrarian sector in their portfolio as well as exposure to overseas markets could invest a small amount in IT funds," says Vishal Dhawan, founder, Plan Ahead Wealth Advisors.
"If over the next couple of sessions Nifty is not able to clear 6775 and breaches the level of 6640 then there is a likelihood of a pause to the current rally," GEPL Capital said in a report.
"Intraday support levels are placed at 6685 and below that at 6640 whereas intraday resistance level is placed at 6775 and beyond that at 6800," added the report.
Overnight, US stocks rose for a third straight session with the S&P 500 ending at a record close, after positive data on factory activity indicated economic growth was gaining traction following a harsh winter.
"The Institute for Supply Management (ISM) said its index of national factory activity rose to 53.7 in March, its second straight monthly acceleration. However, the report was below the median forecast of 54.0," Reuters reported.
The Dow Jones industrial average was up 74.95 points, or 0.46 percent, at 16,532.61. The Standard & Poor's 500 Index was up 13.18 points, or 0.70 percent, at 1,885.52. The Nasdaq Composite Index was up 69.05 points, or 1.64 percent, at 4,268.04.
Asian markets were trading higher with Nikke gaining over 1 per cent in trade thanks to the drop in the yen. However, trading was cautious ahead of Thursday's meeting of the European Central Bank and Friday's U.S. jobs numbers, both of which could move markets in major ways.
U.S. crude was off 7 cents at $99.67 a barrel in early trade.
Japan's Nikkei 225 index was trading 1.5 per cent higher at 15,015.50 and Hong Kong's Hang Seng index was trading 0.10 per cent higher at 22,470.12.
South Korea's Kospi index was trading 0.2 per cent higher at 1,996. China's Shanghai index was trading flat at 2,047.
U.S. crude was off 7 cents at $99.67 a barrel in early trade.
Japan's Nikkei 225 index was trading 1.5 per cent higher at 15,015.50 and Hong Kong's Hang Seng index was trading 0.10 per cent higher at 22,470.12.
South Korea's Kospi index was trading 0.2 per cent higher at 1,996. China's Shanghai index was trading flat at 2,047.
F&O tracker: Tempo can pick up above 6,770 levels
By Ashish Chaturmohta, Fortune Group
The March F&O series ended on a positive note with Nifty futures gaining around 7% and with the strong base of open interest to start with the April series which was seen at 1.71 crore compared with previous month's 1.45 crore as rollovers. The rollover cost was also better at 0.62% compared with its three months average of 0.50%, suggesting long bets played for the April series. FIIs also had a healthy participation in the last series, as they infused around Rs 6,025 crore in index futures with consistent increase in the open interest and cash segment; they bought to the tune of Rs 20,000 crore odd. The start of the April series is also seen with a positive bias, where Nifty futures is trading sideways at its higher end, above the 6,700 psychological mark.
The Put-Call Ratio open interest of Nifty futures witnessed a drop from 1.20 to 0.83 during March expiry, as heavy short positions on the put side were built in the March contract. However, since the start of the April series, it has seen a steady move towards 0.94 odd levels, as put writers are seen active at OTM strike prices. The maximum OI concentration is seen at 6,600 strike price for put option, indicating an important support, whereas for the call option it has showed a shift from 6,700 to 6,800 strike price, as the index futures continues to hold above the 6,700 mark, pushing the writers to higher side in anticipation of the Nifty to remain below 6,800 levels.
Technically, Nifty futures holds immediate support at 6,680 levels. Till it holds above 6,680, trend for the market will remain sideways to positive where momentum can pick up above 6,770 levels on a sustained basis. However, sustaining below 6,680 levels, we may see profit booking in the market. Tata Steel, A Pharma, Ambuja Cement and M&M look positive and may outperform the market.
Technically, Nifty futures holds immediate support at 6,680 levels. Till it holds above 6,680, trend for the market will remain sideways to positive where momentum can pick up above 6,770 levels on a sustained basis. However, sustaining below 6,680 levels, we may see profit booking in the market. Tata Steel, A Pharma, Ambuja Cement and M&M look positive and may outperform the market.
Investors can use correction to buy in to technology stocks
Technology stocks have been badly battered in the market since last month after a lower guidance from Infosys for the last quarter of the financial year, along with fears of a likely robust rupee, after the elections, eating into the margins of IT companies.Over the last one month, Infosys fell to Rs 3,314 from Rs 3,820 and Tata Consultancy Services slipped to Rs 2,172 from Rs 2,272. The CNX IT index to down 8.9%, while technology funds category has fallen 9.2% during the same period.
However, experts say the fears are exaggerated and investors should use the correction to accumulate IT stocks with two to three-year time frame. " Nasscom, the industry body, has given higher growth guidance for 2014-15 at 13-15%. With the business environment showing improvement in the US and Europe, the main export markets, Indian IT companies should record higher volume growth," says Mrinal Singh, fund manager, ICICI Prudential Mutual Fund.
Valuations of IT companies have also turned attractive after the recent beating, say experts. "Given the fact that the sector could record a 15% volume growth, valuations look attractive," says Alok Ranjan, portfolio manager, Way2Wealth. Large cap companies like Infosys are trading at a P/E of 19.45, while Wipro is available at a P/E of 20.88 and HCL TechBSE 1.99 % is available at a P/E of 20.21. He feels Infosys' lower guidance is only for this quarter and company specific, and it does not reflect the fortunes of the industry for the next year. "Investors looking for a contrarian sector in their portfolio as well as exposure to overseas markets could invest a small amount in IT funds," says Vishal Dhawan, founder, Plan Ahead Wealth Advisors.
For the quarter ended December 31, 2013, the US economy grew at 2.6% against analysts' expectation of 2.4%. Initial jobless claims in the US decreased to 3,11,000 in the week ended March 22 from 3,21,000 in the week ended March 15, a four-month low. This makes them confident of the growth in the US markets.
Also, the development of new SMAC (social, mobility, analytics, and cloud) technologies will further drive IT spends from companies in the coming years.
Also, the development of new SMAC (social, mobility, analytics, and cloud) technologies will further drive IT spends from companies in the coming years.
"Right now, these technologies are at a nascent stage and could be a substantial part of Indian IT companies portfolio in the coming years," says Ranjan. Among individual stocks, he recommends large-cap IT stocks such as TCS.
WILL RUPEE PLAY SPOILSPORT?
Since IT firms get more than half their earnings from overseas markets, direction of the rupee is significant to analysts. The rupee has appreciated to 59.91 against the US dollar from levels of 62 in the last one month on expectations that a stable government at the Centre will attract large foreign inflow.
However, experts believe that there is limited room for a sharp appreciation. For one, high crude oil imports would constantly put pressure on the rupee. As per ministry of petroleum, crude oil imports have gone up from 962.7 lakh tonnes in 2005 to 1,841.73 lakh tonnes in 2012-13, a rise of 91.3% in the last eight years.
WILL RUPEE PLAY SPOILSPORT?
Since IT firms get more than half their earnings from overseas markets, direction of the rupee is significant to analysts. The rupee has appreciated to 59.91 against the US dollar from levels of 62 in the last one month on expectations that a stable government at the Centre will attract large foreign inflow.
However, experts believe that there is limited room for a sharp appreciation. For one, high crude oil imports would constantly put pressure on the rupee. As per ministry of petroleum, crude oil imports have gone up from 962.7 lakh tonnes in 2005 to 1,841.73 lakh tonnes in 2012-13, a rise of 91.3% in the last eight years.
Tuesday, 1 April 2014
Views for 01.04.2014
BUY INFOSYS at 3280 SL 3255 TGT 3320
SELL DR REDDY at 2560 SL 2575 TGT 2520
BUY JSPL at 290 SL 280 TGT 310
BUY TATA STEEL at 390 SL 380 TGT 410
Nifty (Fut): 6739.65
Buy above 6760 Target: 6800 SL: 6740
Sell below 6660 Target: 6620 SL: 6680
Bank Nifty (Fut): 12824.75
Buy above 12900 TGT:13000 SL:12850
Sell below 12600 TGT:12500 SL:12650
SELL DR REDDY at 2560 SL 2575 TGT 2520
BUY JSPL at 290 SL 280 TGT 310
BUY TATA STEEL at 390 SL 380 TGT 410
Nifty (Fut): 6739.65
Buy above 6760 Target: 6800 SL: 6740
Sell below 6660 Target: 6620 SL: 6680
Bank Nifty (Fut): 12824.75
Buy above 12900 TGT:13000 SL:12850
Sell below 12600 TGT:12500 SL:12650
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