The quarter on quarter is not good but otherwise the ONGC performance is good. The huge investments resulted an increase of depreciation from 2860cr to 4875cs for this quarter under review and the volume catch up as the sales increased from 12436 to 15314 cr. The net profit increased from 3362 cr to 4626 crs.
The JSW steel, SASKEN presented stellar performance but IDEA disappointed by the competition. The ICICI retail banking is bleeding by 230 cr loss where as the wholesale banking and the treasury operations are very profitable, the same is the story of the YES bank. The ICICI total income is at 7763 down from 10,350 crs. There is saving on the Tax- 135cr and interest expended-1800crs. The net profit plunged from 1272cr to 1101 crs. The Stock likely to go sub 750 level.
The markets as expected lost the bottoms, plunged by 2.2%, a surprise to many by our readers noticed the developments earlier. The RIL results are expected better in line with ONGC but the polyster business needs to be observed.
The markets may get support for a temporary bounce expected from 5040 level. The melt down fro telecos and auto and Pharma will put weight/cap on the up site for sure.
Friday, January 22, 2010
Wednesday, January 20, 2010
Waiting ..waiting .....???
The Nifty could hold above the support level of 4180-5200 due to the IT heavy weights rotation, the propping from banking and telecos, but the Reliance once again at the cross roads at 1077, ONGC closed at 1196. The recent coal gasification project in Orissa add value to Tatasteel apart from the good expected results from the steel sector in the coming quarters due the price revisions.
In case the market fails to close above 5240 tomorrow and high doesn’t cross the resistance at 5270, there is a steep correction in the offing that could drag the indices to 4900 level irrespective the corporate results. The market operators are steadily off loading their holdings at higher level is a concern. In case the Bharti, ICICI bank and Tata steel fails to get support from these levels can be considered as a bad omen to Nifty it self.
Those whose are personally accessible to me know that I recommended to buy all cotton and textile stocks in Nov- second week, precise on 12th Nov-09. Now all the stocks be it Surya Lakshmi Cotton mills, Digjam, BSL etc all are doubled. Those who can build positions for a longer period can accumulate the Infra companies for a 5 year period for decent returns-multibaggers.
For now, incase Reliance fails to trade above 1106-09, ONGC has to cross 1205-08, ICICI has to trade above 893 can consider that the markets are heading for Southwards. The banking lot is the weakest link apart from profit booking in IT counters.
The recent run-ups in the counters of cement, IT scan find some more profit taking. The counters like Grasim may get 1st support at 2635-40 but good support and bounce can be expected at 2570.
The Infra stocks are sold out despite good results from JP is due to rise in the input costs and fear ruling in the rumors of Govt. stimulus withdrawal due to high inflation. But they are the one that will catch once the market rebounds.
In case the market fails to close above 5240 tomorrow and high doesn’t cross the resistance at 5270, there is a steep correction in the offing that could drag the indices to 4900 level irrespective the corporate results. The market operators are steadily off loading their holdings at higher level is a concern. In case the Bharti, ICICI bank and Tata steel fails to get support from these levels can be considered as a bad omen to Nifty it self.
Those whose are personally accessible to me know that I recommended to buy all cotton and textile stocks in Nov- second week, precise on 12th Nov-09. Now all the stocks be it Surya Lakshmi Cotton mills, Digjam, BSL etc all are doubled. Those who can build positions for a longer period can accumulate the Infra companies for a 5 year period for decent returns-multibaggers.
For now, incase Reliance fails to trade above 1106-09, ONGC has to cross 1205-08, ICICI has to trade above 893 can consider that the markets are heading for Southwards. The banking lot is the weakest link apart from profit booking in IT counters.
The recent run-ups in the counters of cement, IT scan find some more profit taking. The counters like Grasim may get 1st support at 2635-40 but good support and bounce can be expected at 2570.
The Infra stocks are sold out despite good results from JP is due to rise in the input costs and fear ruling in the rumors of Govt. stimulus withdrawal due to high inflation. But they are the one that will catch once the market rebounds.
Monday, January 18, 2010
The levels broken .....
The Nifty levels were not breached drastically yet but the levels of the leaders were broken seriously in FMCG, banking, …except the IT.
The ONGC though looks good, in the bull grip failed to scale up from the previous day support above 1220, but retraced to 1210 a circle juncture on Friday. The story is no different to Reliance, which expected to stay above 1125 but staggering at 1110-1105.
The Nifty is good above 5240 but now it has to trade above 5265-70 level to get the real strength and short covering of Bears above 5280 to scale to 5500 level. As of now the Nifty is in a range but likely to travel towards 5140 level or even lower due to the global meltdown and feeling heavy to cross the resistance due to lack of positive triggers.
The tech giants are giving good support to Nifty and feel good factor of the IIP numbers and the economic out look putting positive additions to numbers but the future withdrawl of stimulus, spiraling of inflation numbers and the FII inflows make the RBI to the stringent in dealing with them can give a chance to bears to hammer down the indices.
The outflows of money from the MF above 1 lakh crores in the first week of Jan-10 shows weak faith in the market for future at least for next Sep-10. I mentioned the same in my earlier posting.
The March quarter results of the majors will be impacted by the primary rise of food prices, commodity rise and lack luster performance of industry shown by the low credit off take.
The Nifty is like to trade at 16-18 of P/E by August rather than the current 23.5
The markets will correct but not collapse as it did in 2008.
The ONGC though looks good, in the bull grip failed to scale up from the previous day support above 1220, but retraced to 1210 a circle juncture on Friday. The story is no different to Reliance, which expected to stay above 1125 but staggering at 1110-1105.
The Nifty is good above 5240 but now it has to trade above 5265-70 level to get the real strength and short covering of Bears above 5280 to scale to 5500 level. As of now the Nifty is in a range but likely to travel towards 5140 level or even lower due to the global meltdown and feeling heavy to cross the resistance due to lack of positive triggers.
The tech giants are giving good support to Nifty and feel good factor of the IIP numbers and the economic out look putting positive additions to numbers but the future withdrawl of stimulus, spiraling of inflation numbers and the FII inflows make the RBI to the stringent in dealing with them can give a chance to bears to hammer down the indices.
The outflows of money from the MF above 1 lakh crores in the first week of Jan-10 shows weak faith in the market for future at least for next Sep-10. I mentioned the same in my earlier posting.
The March quarter results of the majors will be impacted by the primary rise of food prices, commodity rise and lack luster performance of industry shown by the low credit off take.
The Nifty is like to trade at 16-18 of P/E by August rather than the current 23.5
The markets will correct but not collapse as it did in 2008.
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