Markets Scenario 30/05/12

The markets opened in green and fluctuated considerably during the day. However, finally the markets closed flat with IT and tech being the best performers.

The markets closed with marginal gains yesterday with IT, tech, realty and metal being the lead gainers. Power, auto and oil & gas, too, gained marginally while FMCG, consumer durables and heath care lost substantially.

The market breadth was positive with advances at 726 against declines of 673 on the NSE. The top Nifty gainers were HCL Tech, Cairn India, Wipro and Coal India, while the losers included ACC, BPCL, IDFC and SAIL.

Technical Analysis: The Sensex closed at 16439, up 22 points from its previous close, and the Nifty shut shop at 4990, up 4 points. On the higher side Nifty 5000 and 5050 will be the strong resistance levels while on the lower side 4950 and 4900 will be the strong support levels.

Suggested Strategy: The markets are indecisive with a positive bias for the next few sessions. The markets needs to be monitored on a daily if not hourly basis. Higher levels may be utilized to book profits. Lower levels may be used to acquire quality stocks to build a solid portfolio.

Market Scenario 29/05/12

The markets open in positive territory and made robust gains with banking, power, consumer durables and capital goods leading the rally.

Auto, realty and metal, too, made significant gains and oil & gas was the only sector that closed with only moderate gains.

The market breadth was positive with advances at 956 against declines of 477 on the NSE. The top Nifty gainers were SBI, BHEL, Tata Power, and PNB while losers included GAIL, BPCL, Maruti and ONGC.

Technical Analysis: The Sensex closed at 16417, up 199 points from its previous close, and the Nifty shut shop at 4986, up 65 points. On the higher side Nifty 5000 and 5050 is a strong resistance levels while on the lower side 4950 is the strong support level.

Suggested Strategy: The markets have turned positive in line with the slight appreciation of Rupee. The markets seemed to have turned for the better at least from the short term perspective. Trading may be done in small lots and booking profits at higher levels would be in order till a clear cut direction is seen.

Market Scenario

The Indian market opened for trading on a positive note. It was a quiet end to a choppy session despite a strong opening since the market gave up all its gains as trade progressed amid negative global cues and weakness in Indian rupee.

IT came in for a bit of short-selling but capital goods, banks and realty were positive. The market breadth was positive with advances at 925 against declines of 492 on the NSE.

The market trend is indecisive with a down ward bias. Hence, careful selection of stocks is of paramount importance.

Technical Analysis: Sensex shut shop at 16183, up 30 points and Nifty at 4906, up 14 points from the previous close. If Nifty level of 4922 holds then we could see the bounce back to last till 5070. On the lower side 4900 is the strong support level.

Suggested Strategy: The market trend is down ward biased. However, the markets are making an attempt to break out on the upside. Markets are waiting for positive cues. The market is at a good point to enter at current levels. Long term investors may start accumulating blue chips stocks on every decline.

Market Scenario

The markets made robust gains with banking and oil & gas leading the rally. The markets seem to have reacted positively to rise in petrol prices as an indication of further reforms to come.

Technology, metal and auto stocks, too, closed with significant gains. FMCG and consumer durables were the only two sectors that closed with moderate gains.

The market breadth was positive with advances at 892 against declines of 512 on the NSE. The top Nifty gainers were ONGC, Bharti Airtel, Bank of Baroda, Ranbaxy while the biggest losers included JP Associates, Cairn India, Maruti and Hindustan Unilever.

The markets closed with significant gains today with banking being the best performer. Flow of news, rupee fluctuations is influencing the stock price movements.

Technical Analysis: The Sensex closed at 16222, up 274 points from its previous close, and the Nifty shut shop at 4921, up 86 points. On the higher side 4950 and 5000 will be the strong resistance levels while on the lower side 4900 and 4850 will be the strong support levels.

Suggested Strategy: The markets are reacting to rupee fluctuations and news flow. Keep a close tab over the flow of news and rupee swings. Shorting can be resorted only at higher levels. Keep booking profits at higher levels.

Market Scenario

The markets made robust gains today with banking and oil & gas leading the rally. The markets seem to have reacted positively to rise in petrol prices as an indication of further reforms to come.

Technology, metal and auto stocks, too, closed with significant gains. FMCG and consumer durables were the only two sectors that closed with moderate gains.

The market breadth was positive with advances at 892 against declines of 512 on the NSE. The top Nifty gainers were ONGC, Bharti Airtel, Bank of Baroda, Ranbaxy while the biggest losers included JP Associates, Cairn India, Maruti and Hindustan Unilever.

The markets closed with significant gains today with banking being the best performer. Flow of news, rupee fluctuations is influencing the stock price movements.

Technical Analysis: The Sensex closed at 16222, up 274 points from its previous close, and the Nifty shut shop at 4921, up 86 points. On the higher side 4950 and 5000 will be the strong resistance levels while on the lower side 4900 and 4850 will be the strong support levels.

Suggested Strategy: The markets are reacting to rupee fluctuations and news flow. Keep a close tab over the flow of news and rupee swings. Shorting can be resorted only at higher levels. Keep booking profits at higher levels.

Market Scenario

The Indian market pared losses in afternoon trade but ended lower in a session marked by volatility amidst the rupee touching a record low and global concerns over EU summit.

The market breadth was negative with advances at 481 against declines of 926 on the NSE. Top Nifty gainers were GAIL, Ranbaxy, and IDFC, while losers included Bharti Airtel, Kotak Mahindra Bank, and Sesa Goa.

The Indian market closed a choppy session of trade on a weak note following negative global cues and a depreciating rupee. Banks, metals and power stocks came in for a bit of selling.

The markets are reacting to rupee fluctuations. A close watch of rupee is warranted at this stage of the market.

Technical Analysis: Sensex shut shop at 15948, down 78 points, and Nifty at 4835, down 24 points from the previous close. On the higher side 16000 is the strong resistance level while on the lower side 15982 is the strong support level. Keep a close watch on the rupee fluctuations and take positions accordingly.

Suggested Strategy:In view of the rupee depreciation, the Govt has increased the petrol prices significantly. This is positive for the Oil Marketing Companies (OMC) and also the markets as an indication that the Govt is serious about introducing reforms. OMC companies may hog the limelight following this action of the Govt.

Market Scenario

The Indian market opens for trade on a positive note. However, following the slide of Rupee, the markets reacted negatively.

Consequently, it was a disappointing end to a session which opened strong and traded with a positive bias until noon after which the market turned nervous and gave up all its gains following record weakness in the rupee. The Indian market tumbled off the day's highs to close deep in the red, dragged down by banks, metals and infrastructure stocks.

The market breadth was negative with advances at 508 against declines of 891 on the NSE. Top Nifty gainers were TCS, HCL Technologies and Tata Motors while losers included Sesa Goa, Tata Power and Maruti Suzuki.

The consumer staples and discretionary were sought after. These scrips are acting as defensive bets in a falling market.

Technical Analysis: The markets were down 156 points and Nifty at 4860, down 45 points from the previous close. On the higher side 4900 is the strong resistance level while on the lower side 4850 and 4800 are the strong support levels.

Suggested Strategy: The markets are sliding in tune with rupee depreciation. The markets seem to be correlated to rupee swings. Rupee depreciation is favorable to IT companies but unfavorable to the markets. Keep a close watch on rupee fluctuations. Traders to be nimble footed to make the most of this type of markets. Quick entry and exits should be the watch word.

Market Scenario

The Indian market opened for trading on a positive note. It was a quiet end to a choppy session despite a strong opening since the market gave up all its gains as trade progressed amid negative global cues and weakness in Indian rupee.

IT came in for a bit of short-selling but capital goods, banks and realty were positive. The market breadth was positive with advances at 925 against declines of 492 on the NSE.

The market trend is indecisive with a down ward bias. Hence, careful selection of stocks is of paramount importance.

Technical Analysis: Sensex shut shop at 16183, up 30 points and Nifty at 4906, up 14 points from the previous close. If Nifty level of 4922 holds then we could see the bounce back to last till 5070. On the lower side 4900 is the strong support level.

Suggested Strategy: The market trend is down ward biased. However, the markets are making an attempt to break out on the upside. Markets are waiting for positive cues. The market is at a good point to enter at current levels. Long term investors may start accumulating blue chips stocks on every decline.

Market Scenario (21/05/2012)

The markets opened on a weak note on Friday but made a smart recovery in the afternoon and the indices moved into the green.

The markets gained significantly in the last one hour after after SBI reported robust performance in Q4. Along with banking, FMCG, oil & gas and metal, too, closed with significant gains. Auto, capital goods and realty closed with substantial declines.

The market breadth was negative with advances at 606 against declines of 820 on the NSE. The top Nifty gainers were SBI, Sesa Goa, Grasim and HDFC while losers included Tata Motors, Ambuja Cements, Maruti Suzuki and Bajaj Auto. The markets closed with significant gains on Friday with banking being the best performer.

Technical Analysis: The Sensex closed at 16153, up 82 points from its previous close, and the Nifty closed at 4891, up 21 points. On the higher side 4900 and 4950 on the Nifty will be the strong resistance levels while on the lower side 4850 and 4800 are the strong support levels.

Suggested Strategy: In the light of blockbuster performance from SBI, the market sentiment seemed to have improved considerably. The much needed technical correction seem to be on cards. Banks and metals appear to steer the markets in the upward direction. The banking and metal stocks may hog the limelight in the next few trading sessions.

Market Scenario (18/05/12)

The Indian markets started on a positive note with the Nifty making a technical bounce back. At one point of time, it looked that the markets turned for the better.

However, negative cues from European markets took their toll and the indices shed all the morning gains in the afternoon. FMCG, realty and metal outperformed all other sectors and closed with substantial gains while capital goods, consumer durables and auto lost significantly.

The market breadth was positive with advances at 720 against declines of 699 on the NSE. The top Nifty gainers were Ambuja Cements, Sail, ITC, JP Associates, Jindal Steel etc while losers included Reliance Infra, L&T, M&M, Bajaj Auto, Cipla, Kotak etc.

Bajaj Auto came out with disappointing set of results and the scrip lost about 2.68 per cent. Some foreign institutional houses came out with their reports. Nomura was recommending a sell on L&T.

Technical Analysis: The Sensex closed at 16070, up 40 points from its previous close, and the Nifty shut shop at 4870, up 12 points. On the higher side 4900 is the strong resistance level while on the lower side 4850 and 4830 are the strong support levels. The market trend is negatively biased.

Suggested Strategy: The market is likely to see selling pressure at higher levels which would bring it down. Every rally should be used to lighten positions.

Market Scenario

The markets lost considerably yesterday with all sectoral indices closing deeply in the red. Metal, auto, consumer durables and capital goods were the worst performers; in addition, IT, power and banking, too, took a severe beating.

In the afternoon, European markets opened in the red while Asia closed up with big cuts. Weakness in the rupee created mayhem in the Indian market and the Sensex breached the crucial 16000 mark.

The market breadth was negative with advances at 367 against declines of 1056 on the NSE. The top Nifty gainers were BPCL, Powergrid, Cairn India and Bajaj Auto while the biggest losers included Tata Motors, Tata Steel, Sail and Reliance Infra.

On the positive side, the fall in crude oil and gold augurs well for the Indian economy. Because, decline in crude oil prices will help in covering the fiscal deficit. However, the decline of rupee is a cause for worry.

Technical Analysis: The markets closed with significant losses with all sectoral indices closing in the negative. The Sensex closed at 16030, down 298 points from its previous close, and the Nifty closed at 4858, down 84 points. On the higher side 4900 will be the strong support level while on the lower side 4800 will be the strong support level.

Suggested Strategy: The market trend is downward and hence upward correction may be used to sell into the market.

Market Talk

Tata Motors: As per latest resport, JLR sales are not up to the mark. The share is likely to witness selling pressure.

Thermax: A foreign institutional house has downgraded the stock.

Sterling Holiday Resorts: Rakesh Jhunjhunwala is reported to have been buying the shares from the secondary market.

Moodys Ratings: has down graded the ratings of top three private sector Banks - ICICI Bank, HDFC Bank and Axis Bank.

Videocon Industries: has stated to have stuck oil in its Mozambique operations.

L&T: has come out with highly encouraging results for the quarter ended March 2012. The market men greeted the news with hike in its share price. Foreign brokerage houses have started re-rating the scrip.

Ashok Leyland: has come out with lack lustre performance and the share price was hammered on the bourses.

IVRCL: The company's net fell 85% in FY12. Consequently, the stock plunged around 12%.

Geometric: Rakesh Jhunjhunwala buys 5 lakh shares in the company. The shares were bought at Rs.62.51 each.

Sintex: Citigroup downgrades the stock to sell.

Dabur India: HSBC maintains neutral rating on the stock with a price target of Rs.115.

Colgate Palmolive: There was buzz that a Singapore based fund is accumulating the company's share.

Disclaimer: All the information/recommendations provided herein are for information purposes only. Readers should consult their investment advisors before making investment decisions. The information is given herein as a matter of service and in good faith. We do not accept liability for losses/actions taken on the basis of information/recommendation given herein.

WEEKLY INVESTMENT SCRIP

Scrip : Alembic Pharma

Date of Incorporation : 1907

Registered Office : Vadodara, Gujarat

Chairman : Chirayu A Amin

Face Value : Rs.2

Market Price : Rs.52

Target Price : Rs.75

EPS 2011-12 : Rs.6.90

Book Value : Rs.20.95

P/E Ratio : 7.53

52-Week High/Low : Rs.59.95/34

Group : Alembic Group

Products : Pharmaceutical Business

Recommendation : Buy

Financial Highlights:

Rs in Lakhs

Particulars 31/03/2012 QE 31/03/2012 YE 31/03/2012

Net Sales 34261 29732 146639

Total Expenditure 30149 27012 124597

Other Income 13 3 44

Interest 538 636 2621

Tax Expense 526 51 3123

Net Profit 2031 1028 13014

Equity (FV: Rs.2) 3770 3770 3770

Res Ex Rev Reserves - - 35730

EPS (Rs) 1.08 0.55 6.9

Reasons for Recommendation:

* Company with good track record

Rise in sales and profitability

Increase in Earnings Per share

EPS of Rs.6.9 with P/E multiple of 7.53

Dividend of 70% declared for 2011-12

Book Value: Rs.20.95 (FV: Rs.2)

Assuming a P/E multiple of a conservative 12 against industry average of around 24 times , the projected price is Rs.75 in the short to medium term

Disclaimer: All the information/recommendation provided herein are for information purposes only. Readers should consult their investment advisors before making investment decision. The information is given as a matter of service and in good faith. We do not accept liability for actions on the basis of information given herein.

Market Scenario

Yesterday, the markets opened on a weak note. However, soon thereafter, the markets recovered. Taking cues from European markets, both benchmark indices made substantial gains with capital goods, metal and IT being the lead gainers.

Healthcare, banking, infrastructure and fertilizer stocks, too, supported the indices well. The market breadth was positive with advances at 767 against declines of 647 on the NSE.

The top Nifty gainers were L&T, Sesa Goa, Cairn India and Sun Pharma while the biggest losers included NTPC, Maruti, IDFC and ITC.

The markets showed positive trend after several days of downward swing. According to market men, the uptrend is on account of short covering. Hence, market men are cautious about the upward movement of the stock markets.

Technical Analysis: The Sensex closed at 16328, up 112 points from its previous close, and the Nifty closed at 4943, up 35 points. On the higher side 5000 and 5050 is the strongest resistance level while on the lower side 4920 and 4900 is the support levels. The markets are likely to be range bound. Markets are likely to experience short sales at higher levels.

Suggested Strategy: Since, this is a trending market with a downward bias, short selling could be resorted only at higher levels. Market movements may be watched and positions taken depending on the direction of the markets.

Market Scenario

It was a gloomy session for the Indian market which closed on a negative note following poor March IIP data and weakness in Indian rupee. Global cues remained lackluster as concerns over Greece continued to haunt traders. News from Greece has forced investors to focus again on the potential collateral damage the European banking system may face by a Greek exit.

The market breadth was negative with advances at 426 against declines of 1008 on the NSE. Top Nifty gainers were Jaiprakash Associates, Bajaj Auto and Tata Motors while losers included Tata Power, Grasim and Sun Pharma.

This was a dismal week for the Indian market which saw almost all sectoral indices end in the red. Infrastructure took the most beating, followed by technology, metals and banks. The range for the indices shifted further down and experts believe next week will continue to be choppy and negative.

As per March IIP data, Electricity sector growth has come in at 2.7% versus 7.2%, manufacturing sector growth at -4.4% versus 11%, capital goods at -21.3%, basic goods at 1.1%, intermediate goods at -2.1% while mining sector growth is at -1.3% versus 0.4% (YoY).

The market is at an indecisive stage. This market appears to be a trending rather than a trading market.

Technical Analysis: Nifty's closing below the 5000 level four days in a row was worrisome. Sensex closed at 16292, down 127 points and Nifty at 4928, down 36 points from the previous close. On the higher side 5050 will be the strong resistance level while on the down side 4950 will be the strong support level.

Suggested Strategy: It is advisable to play the market lightly rather than heavily. Players need to be nimble footed to beat the market.

Market Scenario

The pre-opening session of the market began with the Nifty and Sensex started in the red. The Indian markets opened for trade on a subdued note with a negative bias.

Negativity prevailed in the markets and the Nifty closed below its psychologically important level of 5000. Barring FMCG and IT, all sectoral indices closed negative with realty, metal, banking and power being the worst performers. The Sensex closed at 16480, down 67 points from its previous close, and the Nifty closed at 4975, down 25 points.

The market breadth was negative with advances at 386 against declines of 1048 on the NSE. The top Nifty gainers were ITC, Ranbaxy, Bajaj Auto and TCS while the biggest losers included JP Associates, Sail, Grasim and DLF.

The markets closed with moderate losses today with realty and metal being the worst performers.

Technical Analysis: The Sensex closed at 16480 down 67 points from its previous close, and Nifty closed at 4975 down 25 points. The market as of now is indicating a negative bias. On the higher side 5000 and 5050 will be the strong resistance levels while on the lower side 4950 will be the strong support levels.

Suggested Strategy: It is advisable to tread the markets cautiously. Only expert investors who can read efficiently the charts can take position. Others can take a holiday and remain on the sidelines for the time being.

Market Scenario

The Indian Stock Market opened on a bearish note and all the pivotal lost considerable ground during the day. However, the sentiment changed for the better in the afternoon session with the Finance Minister announcing a series of measures like deferring GAAR provisions for a year.

The Finance Minister’s announcement gave a much needed respite to the bulls and the nifty closed in the green. Capital Goods, Consumer Durables, Power and Metal were the best performers during the day. Whereas FMCG, IT and Oil and Gas were the laggards.

As a result, the nifty closed with a gain of 27 points and Sensex was up by 82 points. The market breadth was positive with advance /decline was at 734 and 681 respectively on the NSE. The top performing stocks were BHEL, BPCL, L&T, while losers were JP Associates, Cairn India and HCL Tech.

The direction of the market is not known yet. However, the Govt’s reform process will be watched with keen interest.

Technical Analysis: On Monday, Nifty closed the day at 5114.15 and Sensex at 16912.71. The Nifty may face resistance at 5200 and 5250 while on the down side; the support levels will be 5100 and 5050. Cautious should be the watch word for the day.

Suggested Strategy: If the markets open with a gap up, it is advisable to make an entry only on reactions rather than jumping on to the fray. Keep booking profits at higher levels.

Market Scenario

The Indian Stock Market opened on a bearish note and all the pivotal lost considerable ground during the day. However, the sentiment changed for the better in the afternoon session with the Finance Minister announcing a series of measures like deferring GAAR provisions for a year.

The Finance Minister’s announcement gave a much needed respite to the bulls and the nifty closed in the green. Capital Goods, Consumer Durables, Power and Metal were the best performers during the day. Whereas FMCG, IT and Oil and Gas were the laggards. As a result, the nifty closed with a gain of 27 points and Sensex was up by 82 points.

The market breadth was positive with advance /decline was at 734 and 681 respectively on the NSE. The top performing stocks were BHEL, BPCL, L&T, while losers were JP Associates, Cairn India and HCL Tech.

The direction of the market is not known yet. Positive trend may continue for a few more sessions. However, the Govt’s reform process will be watched with keen interest.

Technical Analysis: On Monday, Nifty closed the day at 5114.15 and Sensex at 16912.71. The Nifty may face resistance at 5200 and 5250 while on the down side; the support levels will be 5100 and 5050. Cautious optimism should be the watch word for the day.

Strategy: If the markets open with a gap up, it is advisable to make an entry only on reactions rather than jumping on to the fray. Keep booking profits at higher levels.

Market Scenario

During the week, the Indian Stock market traded within a narrow band for most part of the week . However, the markets broke out of the tight range and cruised downwards piercing all important levels. The benchmark indices recorded the lowest point since January end this calendar year. The infrastructure sector led the losing sectors.

In other words, Sensex was down 2.1% while Nifty was down by 2.9%. Likewise, CNX Midcap index was down 2.8%. It was a dismal end to the week for the Indian bourses which saw heavy selling pressure on Friday on concerns that India was considering a review of the Double Taxation Avoidance Treaty with Mauritius. This led to a sudden crash in share prices which caused the Nifty to breach its 200 DMA and close with huge losses and Nifty closing below the 5100 mark. Metals, banks, capital goods and realty sectors lost considerable ground.

However, some of the stocks like Cipla, Sun Pharma, and Wipro were gainers while PNB, BHEL and Bank of Baroda were the losers. The markets are expecting favorable news from the Government on Monday. However, it is to be seen how the Government reacts to the situation.

Technical Analysis: The overall market trend has turned bearish. On the downside 5050 and 4990 will be the strong support levels while 5150 and 5200 will act as strong resistance levels. Following heavy selling seen on Friday, some short covering may emerge initially on Monday. Avoid short selling. Traders need to be nimble footed and make swift entry and exits.

Suggested Strategy: It is advisable to wait and watch how the market unfolds on Monday. Cautious approach should be the watch word.

WEEKLY INVESTMENT SCRIP

Scrip : Hyderabad Industries

Date of Incorporation : 1946

Registered Office : Hyderabad, Andhra Pradesh

Chairman : C K Birla

Face Value : Rs.10

Market Price : Rs.363.10

Target Price : Rs.450

EPS 2011-12 : Rs.81.13

Book Value : Rs.451.21

P/E Ratio : 4.48

52-Week High/Low : Rs.424/Rs.255

Group : C K Birla Group

Products : Building Products, Thermal Insulation, Products and Wind Power

Recommendation : Buy

Financial Highlights:

Rs in Lakhs

Particulars QE 31/03/2012 QE 31/03/2012 YE 31/03/2012

Net Sales 24,883 19,146 85,781

Total Expenditure 22,341 18,008 77,148

Other Income 119 468 608

Interest 86 182 748

Tax Expense 793 390 2,881

Net Profit 1,798 1,052 6,055

Equity (FV: Re.10) 749 749 749

Res Ex Rev Reserves - - 33,047

EPS (Rs) 24.07 14.09 81.13

Reasons for Recommendation:

* Company with excellent pedigree and commendable track record

* Rise in sales and profitability

* Increase in Earnings Per share

* EPS of Rs.81.13 with P/E multiple of 4.48

* Dividend of 125% declared for 2011-12

* Book Value: Rs.451.21 (FV: Rs.10

* Assuming a P/E multiple of a modest 10, the projected price is Rs. 813 in a buoyant market. However, a minimum target of Rs.450 is expected.

Disclaimer: All the information/recommendation provided herein are for information purposes only. Readers should consult their investment advisors before making investment decision. The information is given as a matter of service and in good faith. We do not accept liability for actions on the basis of information given herein.