The laid down foundations for the Nifty are strong if could rise to see better heights. The strength of Nifty at the 2700-2750 is displayed well but cap at the top at 100-150 points above is worrisome.
As the previous post mentioned the Nifty made a recovery to cross the resistance at 2830 level touched a high 2835.65 and comfortably closed above 2790 level at 2828.45 is a good relief sign that the bottoms are in tact at least for now. But on the contrary side the FIIs are buying since 12th in selective stock futures (373+566+371+207-26 crores) where as they are heavy short in Index futures ((-408) + (-1444) + (-470) + (-303) + (-1017)) shows that the Nifty future out look is bleak.
The Reliance lead rally to pull from the lows shall spread to other counters. The mush hyped Obama bail-out cum stimulus package can trigger rally in US may have spill over effect. The hope on US is high despite of the crumbling economy as the troubles keep darker nights long.
The important results are a head in the next week to influence the direction as their leadership lays future road map of Nifty- ITC, Rolta ,Triveni, TTML- 19th Monday.
The results of Dr Reddy, HeroHonda, MRPL, Mahidra life, Polaris, RPL and Relcap on 20th Tuesday .
The results of Biocon, HDFC, United spirits, Wipro , Yes bank and Zeel on 21st Wednesday,
The results of Bank of India, Bharti airtel, Bharat forge, Cipla, Idea, Kotak bank, NDTV, Praj, Reliance, Rel Infra, Relpower, and Voltas on 22nd Thursday.
The results of Canara Bank, Crompton Greaves, HCL Tech, IDBI, Punj Lloyd, RCOM, RNRL, Syndicate Bank ,Tanla and Tech Mahidra and Vijaya Bank on 23rdFriday .
The results of important companies like ICICI bank, NTPC, SBI, SCI, Sterlite, Sun will be announced on 24th, Saturday where as the hind Unilever on Sunday.
Sunday, January 18, 2009
Thursday, January 15, 2009
The Global pressure…….
The markets yesterday displayed a decent rally with the support from the reliance and ADAG group stocks. The evening happiness short lived when the Europe closed. The US markets slump dragged the Asian indices down in line with the rest. The spill over effect spoiled the party but the damage is less as we yesterday added nearly 7-10% in important stocks.
The Nifty is struggling to stay above 2830 level was short lived. Now the bottoms for the last 5 trading sessions were at 2701-2750 level. This will be a good formation if Nifty could cross the 2950 level with global cues then we may head for 3600 level for sure. The disappointing happenings are surrounded the markets and will be forced to live in the hostile environment for next two quarters for sure as the new govt. after election will take time to settle down. In case a hung with no clear majority can dampen the sentiment.
Now the market buzz is that the RIL and ADAG fight for gas will end out of court settlement may improve the sentiment, which can easily set the Nifty above 3180 level.
The Nifty is to close above 2790 level to mitigate the negative news effect and rely on the future growth prospects.
The yesterday leader Reliance, today also saved Nifty from collapse despite the selling pressure. The tech giant Infosys took support at 1220 level bounced to cross 1260 level can save Nifty if it can stay above 1280-85 level. The Bharti and HUL took the Bear beating may loose some more ground before a bounce is expected. The TCS results are not spectacular but may stay above 506 level due to new orders.
The metals and the Banking sector are facing difficult time to protect their valuations. The positive point is that these will find buyers as bargain hunting making profitable.
The Global pressure…….
The markets yesterday displayed a decent rally with the support from the reliance and ADAG group stocks. The evening happiness short lived when the Europe closed. The US markets slump dragged the Asian indices down in line with the rest. The spill over effect spoiled the party but the damage is less as we yesterday added nearly 7-10% in important stocks.
The Nifty is struggling to stay above 2830 level was short lived. Now the bottoms for the last 5 trading sessions were at 2701-2750 level. This will be a good formation if Nifty could cross the 2950 level with global cues then we may head for 3600 level for sure. The disappointing happenings are surrounded the markets and will be forced to live in the hostile environment for next two quarters for sure as the new govt. after election will take time to settle down. In case a hung with no clear majority can dampen the sentiment.
Now the market buzz is that the RIL and ADAG fight for gas will end out of court settlement may improve the sentiment, which can easily set the Nifty above 3180 level.
The Nifty is to close above 2790 level to mitigate the negative news effect and rely on the future growth prospects.
The yesterday leader Reliance, today also saved Nifty from collapse despite the selling pressure. The tech giant Infosys took support at 1220 level bounced to cross 1260 level can save Nifty if it can stay above 1280-85 level. The Bharti and HUL took the Bear beating may loose some more ground before a bounce is expected. The TCS results are not spectacular but may stay above 506 level due to new orders.
The metals and the Banking sector are facing difficult time to protect their valuations. The positive point is that these will find buyers as bargain hunting making profitable.
The Nifty is struggling to stay above 2830 level was short lived. Now the bottoms for the last 5 trading sessions were at 2701-2750 level. This will be a good formation if Nifty could cross the 2950 level with global cues then we may head for 3600 level for sure. The disappointing happenings are surrounded the markets and will be forced to live in the hostile environment for next two quarters for sure as the new govt. after election will take time to settle down. In case a hung with no clear majority can dampen the sentiment.
Now the market buzz is that the RIL and ADAG fight for gas will end out of court settlement may improve the sentiment, which can easily set the Nifty above 3180 level.
The Nifty is to close above 2790 level to mitigate the negative news effect and rely on the future growth prospects.
The yesterday leader Reliance, today also saved Nifty from collapse despite the selling pressure. The tech giant Infosys took support at 1220 level bounced to cross 1260 level can save Nifty if it can stay above 1280-85 level. The Bharti and HUL took the Bear beating may loose some more ground before a bounce is expected. The TCS results are not spectacular but may stay above 506 level due to new orders.
The metals and the Banking sector are facing difficult time to protect their valuations. The positive point is that these will find buyers as bargain hunting making profitable.
Sunday, January 11, 2009
Challenge for market…..
The emerging markets like India are in the nascent stage of accepting big blows and shallow market depth to absorb the Selling or Buying may cripple the strength stock markets. But the positive side of the market is a new trend is developing as “Chase for Quality”- nothing but dependable and sustainable corporate governance along with earnings.
This “CHANGE” in the paradigm to explore quality stocks may bring volatility and relaying on MNC stocks will emerge apart from supporting the proven established Corporate Houses. The quality IT stocks may get more business and the promoter worthiness will bring business and valuation as premium.
The Nifty is at the cross roads as it could face the slaughtering by Bears with various rumors. The Nifty fell from 3150 level to 2810 level due to Satyam fiasco and doubting the other published high rise accounts. The Nifty has to cross 2950 level to mitigate the damage done. The bottom fishing is good for MNC stocks to get advantage of a feel good factors circulating as if they are more sagacious and unadulterated.
The RIL is very weak and good above 1221-23 level but bundled with resistance points as scales up, immediate major resistance at 1245-51 level. The ONGC is good above 695-97 level but has support at 646-51level The ICICI bank has no tags attached to this Satyam tale but the exposure to credit cards and advances were not disclosed yet. The stock enjoys criticism and controversies corner it now and then is good above 485 level but the resistance may come at 497-98 level. Incase the low breaches 434 and close below 439 then it will face the blistered Bear beating. The SBI is good above 1275 and weak below 1240 level. The Relcap is good above 528-36 level as the Nifty inclusion is w.e.f-12th Jan.
The sudden weakness a head of this mess saved Bharti bounced back to 640 level from 610 region to save Nifty could find buyers above 658-661 level other wise the story is no different. The RCOM is good above 208 and weak bellow 195.
The DLF signals to all Bears are clear as the Buy back corned them could save if it trades above 205-203 level and the ardent Bears sell below 195. The FII are exiting the infra and construction stocks may weaken the market and it will hurt the sentiment.
There is every possibility that the GOI may come with more stringent Corporate Governance laws and powers to Independent Directors along with responsibilities.
This “CHANGE” in the paradigm to explore quality stocks may bring volatility and relaying on MNC stocks will emerge apart from supporting the proven established Corporate Houses. The quality IT stocks may get more business and the promoter worthiness will bring business and valuation as premium.
The Nifty is at the cross roads as it could face the slaughtering by Bears with various rumors. The Nifty fell from 3150 level to 2810 level due to Satyam fiasco and doubting the other published high rise accounts. The Nifty has to cross 2950 level to mitigate the damage done. The bottom fishing is good for MNC stocks to get advantage of a feel good factors circulating as if they are more sagacious and unadulterated.
The RIL is very weak and good above 1221-23 level but bundled with resistance points as scales up, immediate major resistance at 1245-51 level. The ONGC is good above 695-97 level but has support at 646-51level The ICICI bank has no tags attached to this Satyam tale but the exposure to credit cards and advances were not disclosed yet. The stock enjoys criticism and controversies corner it now and then is good above 485 level but the resistance may come at 497-98 level. Incase the low breaches 434 and close below 439 then it will face the blistered Bear beating. The SBI is good above 1275 and weak below 1240 level. The Relcap is good above 528-36 level as the Nifty inclusion is w.e.f-12th Jan.
The sudden weakness a head of this mess saved Bharti bounced back to 640 level from 610 region to save Nifty could find buyers above 658-661 level other wise the story is no different. The RCOM is good above 208 and weak bellow 195.
The DLF signals to all Bears are clear as the Buy back corned them could save if it trades above 205-203 level and the ardent Bears sell below 195. The FII are exiting the infra and construction stocks may weaken the market and it will hurt the sentiment.
There is every possibility that the GOI may come with more stringent Corporate Governance laws and powers to Independent Directors along with responsibilities.
An article in the Business-Standard covered as……
Merrill, IL&FS sold shares in nick of time
BS Reporter / Mumbai January 11, 2009, 0:41 IST
Days before B Ramalinga Raju admitted to fraud, a handful of financial
services companies, including DSP Merrill Lynch, IL&FS Financial Services
and Deutsche Bank’s non-banking finance company, sold Satyam Computer Services
shares pledged with them. IL&FS Trust Company, which was warehousing them on behalf of the lenders, permitted the lenders to sell the shares.
According to information available from the National Stock Exchange, IL&FS Trust
Company sold 14.89 million shares between December 24 and January 2. On December 24, 2008, IL&FS Trust Company permitted sale of 6.05 million shares at Rs 120.09 each, while another 4.41 million shares were sold at Rs 139.83 five days
later. The trust let go of a further 4.43 million shares at Rs 176 on January 2,
2009 – five days before Raju’s revelations……………………
Challenge for market…..
The nascent stage of accepting big blows and shallow market depth to absorb the Selling or Buying may cripple the strength Indian stock market. But the positive side of the market is a new trend is developing as “Chase for Quality” nothing but dependable and sustainable corporate governance along with earnings.
This “CHANGE” in the paradigm to explore quality stocks may bring volatility and relaying on MNC stocks will emerge apart from supporting the proven established Corporate Houses. The quality IT stocks may get more business and the promoter worthiness will bring business and valuation as premium.
The Nifty is at the cross roads as it could face the slaughtering by Bears with various rumors. The Nifty fell from 3150 level to 2810 level due to Satyam fiasco and doubting the other published high rise accounts. The Nifty has to cross 2950 level to mitigate the damage done. The bottom fishing is good for MNC stocks to get advantage of a feel good factors circulating as if they are more sagacious and unadulterated.
The RIL is very weak and good above 1221-23 level but bundled with resistance points as scales up, immediate major resistance at 1245-51 level. The ONGC is good above 695-97 level but has support at 646-51level
The ICICI bank has no tags attached to this Satyam tale but the exposure to credit cards and advances were not disclosed yet. The stock enjoys criticism and controversies corner it now and then is good above 485 level but the resistance may come at 497-98 level. Incase the low breaches 434 and close below 439 then it will face the blistered Bear beating. The SBI is good above 1275 and weak below 1240 level. The Relcap is good above 528-36 level as the Nifty inclusion is w.e.f-12th Jan.
The sudden weakness a head of this mess saved Bharti bounced back to 640 level from 610 region to save Nifty could find buyers above 658-661 level other wise the story is no different. The RCOM is good above 208 and weak bellow 195.
The DLF signals to all Bears are clear as the Buy back corned them could save if it trades above 205-203 level and the ardent Bears sell below 195.
The FII are exiting the infra and construction stocks may weaken the market and it will hurt the sentiment. There is every possibility that the GOI may come with more stringent Corporate Governance laws and powers to Independent Directors along with responsibilities.
An article in the Business-Standard covered as……
Merrill, IL&FS sold shares in nick of time
BS Reporter / Mumbai January 11, 2009, 0:41 IST
Days before B Ramalinga Raju admitted to fraud, a handful of financial services companies, including DSP Merrill Lynch, IL&FS Financial Services and Deutsche Bank’s non-banking finance company, sold Satyam Computer Services shares pledged with them.
IL&FS Trust Company, which was warehousing them on behalf of the lenders, permitted the lenders to sell the shares.
According to information available from the National Stock Exchange, IL&FS Trust Company sold 14.89 million shares between December 24 and January 2. On December 24, 2008, IL&FS Trust Company permitted sale of 6.05 million shares at Rs 120.09 each, while another 4.41 million shares were sold at Rs 139.83 five days later. The trust let go of a further 4.43 million shares at Rs 176 on January 2, 2009 – five days before Raju’s revelations……………………
An article in the Business-Standard covered as……
Merrill, IL&FS sold shares in nick of time
BS Reporter / Mumbai January 11, 2009, 0:41 IST
Days before B Ramalinga Raju admitted to fraud, a handful of financial services companies, including DSP Merrill Lynch, IL&FS Financial Services and Deutsche Bank’s non-banking finance company, sold Satyam Computer Services shares pledged with them.
IL&FS Trust Company, which was warehousing them on behalf of the lenders, permitted the lenders to sell the shares.
According to information available from the National Stock Exchange, IL&FS Trust Company sold 14.89 million shares between December 24 and January 2. On December 24, 2008, IL&FS Trust Company permitted sale of 6.05 million shares at Rs 120.09 each, while another 4.41 million shares were sold at Rs 139.83 five days later. The trust let go of a further 4.43 million shares at Rs 176 on January 2, 2009 – five days before Raju’s revelations……………………
Saturday, January 10, 2009
May happen again…..
The IT industry is grappling with difficult economic environment due to it over dependence on US and Europe was forcibly thrown into more troubled waters due to Satyam fiasco. The Corporate IT tycoons of first generation shying with ignominy due to this episode and their survival will be more difficult with checks and balances.
None acted with responsibility-The company regulators, top level “lapse of vigilance” at the Foreign Exchange inflow, the lending Banks, the leeway handling of accounts by the PWC and above all the analysts of FII, DII & MF heads with mindless heads made Ramalinga Raju to ditch his company and share holders.
The greed & power to rule the corporate sector putting pressure to “perform by any means” is fast spreading to the developing countries. These kinds of manipulation are very common in DevelopeD countries how ever strict there are aftermath. Here this case is only a sample of the lot in the making and many more will be un-earthed once the graveyard is open for excavation.
The kind of financial irregularities happened at Satyam may happen in other first generation companies if the regulators lay their hands and meticulous eyes to nab the “white-collar crime” culprits. The style of publishing inflated numbers in the balance sheet shall be scrutinized thoroughly and put them behind bars to send a strong message not necessarily to the rest of the world but to these “Financial Vultures” not only eat their birth child company but also cripple the nation’s image and economy.
On Friday the Infra & reality stocks tumbled were finding difficult to trace the bottom as the slide is so massive that no body could understand what happened to who but the whole trauma of buyers was shifted in minutes to sellers when the management of DLF “buy back” was heavily initiated. The stock fell on rumors that the CFO sold more than one lakh shares, like a snow avalanche slide the DLF fell from 225 to 144 and bounced with vengeance to again 220-25 level. The DLF was bought by the promoters to a tune of 17.5 lakh shares at an average price of Rs 193.40 and the total shares bought till date is only 21.4 lakhs.
The Satyam promoters could sell their shares by pledging with IL &FS and others much above 150 per share as the Satyam shares were sold more than 2.14 crore shares when the average price is above 175 by the lenders intimated to Exchanges on 2nd Jan, 1.029 crores of shares sold and intimated to NSE on 6th Jan and again 85.3 lakh share sold and intimated on 8th Jan-09. The poor investors hoping some miracle will happen and turn their fortune are still holding by praying the almighty. The people who burned their energy to build the empire for intelligent master mind rouge are left to their fate called 50,000+ employees looking for help/ recognition for their abilities and service.
The employees who sensed the fall sold their shares- on 22-12-2008 Manisha Mehta-5200, V. Murali-10,000, A.S.Murty-19000, V. Murali-20,000; on 17-12-2008 M.SriRam-1000, A.S.Murty-21,000. On 16-12-2008 Satyam announced the Board decision of buying Maytas.
None acted with responsibility-The company regulators, top level “lapse of vigilance” at the Foreign Exchange inflow, the lending Banks, the leeway handling of accounts by the PWC and above all the analysts of FII, DII & MF heads with mindless heads made Ramalinga Raju to ditch his company and share holders.
The greed & power to rule the corporate sector putting pressure to “perform by any means” is fast spreading to the developing countries. These kinds of manipulation are very common in DevelopeD countries how ever strict there are aftermath. Here this case is only a sample of the lot in the making and many more will be un-earthed once the graveyard is open for excavation.
The kind of financial irregularities happened at Satyam may happen in other first generation companies if the regulators lay their hands and meticulous eyes to nab the “white-collar crime” culprits. The style of publishing inflated numbers in the balance sheet shall be scrutinized thoroughly and put them behind bars to send a strong message not necessarily to the rest of the world but to these “Financial Vultures” not only eat their birth child company but also cripple the nation’s image and economy.
On Friday the Infra & reality stocks tumbled were finding difficult to trace the bottom as the slide is so massive that no body could understand what happened to who but the whole trauma of buyers was shifted in minutes to sellers when the management of DLF “buy back” was heavily initiated. The stock fell on rumors that the CFO sold more than one lakh shares, like a snow avalanche slide the DLF fell from 225 to 144 and bounced with vengeance to again 220-25 level. The DLF was bought by the promoters to a tune of 17.5 lakh shares at an average price of Rs 193.40 and the total shares bought till date is only 21.4 lakhs.
The Satyam promoters could sell their shares by pledging with IL &FS and others much above 150 per share as the Satyam shares were sold more than 2.14 crore shares when the average price is above 175 by the lenders intimated to Exchanges on 2nd Jan, 1.029 crores of shares sold and intimated to NSE on 6th Jan and again 85.3 lakh share sold and intimated on 8th Jan-09. The poor investors hoping some miracle will happen and turn their fortune are still holding by praying the almighty. The people who burned their energy to build the empire for intelligent master mind rouge are left to their fate called 50,000+ employees looking for help/ recognition for their abilities and service.
The employees who sensed the fall sold their shares- on 22-12-2008 Manisha Mehta-5200, V. Murali-10,000, A.S.Murty-19000, V. Murali-20,000; on 17-12-2008 M.SriRam-1000, A.S.Murty-21,000. On 16-12-2008 Satyam announced the Board decision of buying Maytas.
Thursday, January 08, 2009
THE UNANSWERED…………
The New CEO Ram has everything but no to that matters most- “The Information”.
The markets shall face the "test of the depth" to face the selling pressure incase it unwarranted. The stock markets across the globe live in a hostile situation where “The analyst gives wrong calls, the auditors certify any thing for a fee, the promoters publish cooked results and deviated misinformation’s, the fund houses buy with vision of “associations developed” in the nights but the poor retail investor invests the hard earnings for a lifeline of future. At the end of the day the retail investor looses every thing for a toss.
The markets shall face the "test of the depth" to face the selling pressure incase it unwarranted. The stock markets across the globe live in a hostile situation where “The analyst gives wrong calls, the auditors certify any thing for a fee, the promoters publish cooked results and deviated misinformation’s, the fund houses buy with vision of “associations developed” in the nights but the poor retail investor invests the hard earnings for a lifeline of future. At the end of the day the retail investor looses every thing for a toss.
QUESTIONS ???????.........
The unanswered questions are opening in Satyam saga as flood water falls from the dam once the gates are opened for free flow.
The markets were stunned by the financial scandal at Satyam and were surprised to accept the truth of “ALL LIES” by Raju.
The market fell heavily as the built up open position was huge that to in the absence of FII holiday it was built to hand over at higher prices was belied due to the un-expected fiasco at Satyam. The important FII investors resorted for selling at the day’s low price fore tells that they are serious to sell INDIA. The experts are revealing that there are more companies to be micro-scoped for facts rather than accepting.
In case Nifty fails to cross 2957-60 and the low breaches 2812-16 level, then the serious consequences are built in the system. The big names of Indian industry will be doubted for sure and their current valuations will be corrected accordingly.
The markets were stunned by the financial scandal at Satyam and were surprised to accept the truth of “ALL LIES” by Raju.
The market fell heavily as the built up open position was huge that to in the absence of FII holiday it was built to hand over at higher prices was belied due to the un-expected fiasco at Satyam. The important FII investors resorted for selling at the day’s low price fore tells that they are serious to sell INDIA. The experts are revealing that there are more companies to be micro-scoped for facts rather than accepting.
In case Nifty fails to cross 2957-60 and the low breaches 2812-16 level, then the serious consequences are built in the system. The big names of Indian industry will be doubted for sure and their current valuations will be corrected accordingly.
….The markets are enjoying the short covering support above 3080 level. The
earlier suggested levels for ICICI Bank and Relcap were archived but the up move
could be a result of short covering. Now the markets are in bull grip as the
momentum was not dried to fall. The Nifty is good above 3100 level and RIL god
above 1329-31 level. The SBI is good above 1350 and weak below 1330-26 level.
The sudden change in the direction of Bharti to 650 level from its 720 level
despite the 24.41 lakh shares acquiring by Indian Continent Investment Ltd in an
off market deal. In case Bharti falls below 610 then a serious correction of
20-25% on the cards. The NTPC, ONGC, ITC, Bharti, and Cipla are likely to lead
the fall incase Nifty closes below 3030 level.
…..The SBI, ONGC, Bharti and Reliance are becoming weak but just moving up with unease. The Infosys results and the fiasco of Satyam can impact the sentiment. The Reliance is good above and can touch 1330-1350 range but the resistance at 1372 is crucial.The ONGC is one of the weakest face resistances at 693-97 level and at 717-20 level.The SBI is the best chart to observe has resistance at 1380-83 level but has good support at 1218-22 level. The Bharti is being in the accumulation phase. The
well drawn boundaries for it are 749 at the higher side and the 650-60 level is
at the lower-side. The DLF made a second trial to stay above 305 but the real
test it faces at 326-30 level but a clear bottom building is happening at 220-16
level. The immediate support level existed at 260-66 level. In view of the RCOM
plans and the future 3G auction it built a bottom at 187-93 level and the second
level in the process at 221-226.
Wednesday, January 07, 2009
The cemented move…
There was no change in the economic out look of the globe or any country in specific but the stocks are moving North. It is the beauty of the markets that it behaves in style and unique. For those who argue the ticker will be side lined to curse the fate or to make a point of discussion but the ticker will journey the designed course irrespective of the tag that was attached “bear market rally/huge short covering/ bull market in the making”.
The slow economic growth was not fully discounted across the globe. The Indian markets were no exception but the rally triggered after the expiry will take Nifty to 3280 level because of the crude hardening. The rise crude prices will strengthen the RIL, ONGC and RPL. The RIL may start production of KG basin resources.
The readers might have observed the Cement companies move that benefited the most in the Stimulus package-2. The markets are enjoying the short covering support above 3080 level. The earlier suggested levels for ICICI Bank and Relcap were achied but the up move could be a result of short covering.
Now the markets are in bull grip as the momentum was not dried to fall. The Nifty is good above 3100 level and RIL god above 1329-31 level. The SBI is good above 1350 and weak below 1330-26 level. The sudden change in the direction of Bharti to 650 level from its 720 level despite the 24.41 lakh shares acquiring by Indian Continent Investment Ltd in an off market deal. In case Bharti falls below 610 then a serios correction of 20-25% on the cards. The NTPC, ONGC, ITC, Bharti, and Cipla are likely to lead the fall incase Nifty closes below 3030 level.
The slow economic growth was not fully discounted across the globe. The Indian markets were no exception but the rally triggered after the expiry will take Nifty to 3280 level because of the crude hardening. The rise crude prices will strengthen the RIL, ONGC and RPL. The RIL may start production of KG basin resources.
The readers might have observed the Cement companies move that benefited the most in the Stimulus package-2. The markets are enjoying the short covering support above 3080 level. The earlier suggested levels for ICICI Bank and Relcap were achied but the up move could be a result of short covering.
Now the markets are in bull grip as the momentum was not dried to fall. The Nifty is good above 3100 level and RIL god above 1329-31 level. The SBI is good above 1350 and weak below 1330-26 level. The sudden change in the direction of Bharti to 650 level from its 720 level despite the 24.41 lakh shares acquiring by Indian Continent Investment Ltd in an off market deal. In case Bharti falls below 610 then a serios correction of 20-25% on the cards. The NTPC, ONGC, ITC, Bharti, and Cipla are likely to lead the fall incase Nifty closes below 3030 level.
Tuesday, January 06, 2009
The test of stimulation…..
The test of stimulation…..
Due to net failure at my end failed to publish but for record now….
The Nifty is good above 2860 and likely to stay above for some time. The immediate bad news is remote and the positive news keep flowing till the Nifty crosses 3250 and touch 3280 for stop-losses get triggered to clear the weak hands. In case the markets doesn’t find the required bottom push to scale up but still not weak for a free fall as the expectations from Obama is high. So the markets will swing between
2700-3100 to the weak results show and hopes of miracles from the future.
The local news will be adverse as the Govt. is preparing to put pressure on the PAK and their counter “war drama”. The PM will be busy in tackling the external/curbing terrorism could put the economic reforms on the backburner. The political equations will start demanding the “time & attention” as the April-May may heats up the capital.The SBI, ONGC, Bharti and Reliance are becoming weak but just moving up with unease. The Infosys results and the fiasco of Satyam can impact the sentiment.The Reliance is good above and can touch 1330-1350 range but the resistance at 1372 is crucial. The ONGC is one of the
weakest face resistances at 693-97 level and at 717-20 level.
The SBI is the best chart to observe has resistance at 1380-83 level but has good support at 1218-22 level.
The Bharti is being in the accumulation phase. The well drawn
boundaries for it are 749 at the higher side and the 650-60 level is at the
lower-side.The DLF made a second trial to stay above 305 but the real test it faces at 326-30 level but a clear bottom building is happening at 220-16 level. The immediate support level existed at 260-66 level.
In view of the RCOM plans and the future 3G auction it built a bottom at 187-93 level and the second level in the process at 221-226.
Sunday, January 04, 2009
The challenge ahead…..
The govt. announced stimulus package-2 was short of satisfaction as there was more room left to do and the govt. announced that the doors were closed for now till the new financial accounting year begins. So the domestic financial and major policy measures are announced except the 3G auction. The international news and the global indices will be in the drivers’ seat as the new govt. in US will determine the next course of action.
The RBI announced policy measures will carry a positive start on Monday unless the Asian markets open deep in red. The banking sector has been waiting and the rates cuts were already factored in the bank stocks. This can be seen as the HDFC has failed to cross the resistance at 1560 level and the SBI took long time to trade above 1335-39 level. The reality sector though raised on big hopes were belied as the 20 lakh bracket was not raised to 30 lakhs is a big set back as the demand and profitability was in and above that 30 lakhs. The Monday trades can change the direction but for now the banks may look South.
The package has unilaterally given benefit to cement companies and to the logistic sector that can afford to buy. The IIFCL will spur the demand but not immediately. The IDFC and PFC are cautious on the demand as the industry is not jubilant to spend on BOLT projects.
The duty cuts on steel products have negative impact on the sagging industry. The reality sector that uses longs gets the benefit and will form a cap on raising the prices due to demand revival by the steel industry.
The overall balancing act by the Govt. will keep the Nifty crawling but not a break-out shoot up with this stimulus and monetary measures.
The RBI announced policy measures will carry a positive start on Monday unless the Asian markets open deep in red. The banking sector has been waiting and the rates cuts were already factored in the bank stocks. This can be seen as the HDFC has failed to cross the resistance at 1560 level and the SBI took long time to trade above 1335-39 level. The reality sector though raised on big hopes were belied as the 20 lakh bracket was not raised to 30 lakhs is a big set back as the demand and profitability was in and above that 30 lakhs. The Monday trades can change the direction but for now the banks may look South.
The package has unilaterally given benefit to cement companies and to the logistic sector that can afford to buy. The IIFCL will spur the demand but not immediately. The IDFC and PFC are cautious on the demand as the industry is not jubilant to spend on BOLT projects.
The duty cuts on steel products have negative impact on the sagging industry. The reality sector that uses longs gets the benefit and will form a cap on raising the prices due to demand revival by the steel industry.
The overall balancing act by the Govt. will keep the Nifty crawling but not a break-out shoot up with this stimulus and monetary measures.
The stimulus too…
The govt. announced stimulus package-2 has also failed to lure the industry, so will be the market. The Govt. is looking for a long-term sustainable action where as the markets are interested in immediate benefits to see the sentiment revived. The strong hands are interested in long gestation period of rise with intermittent sharp rally where the reverse is true with the small investor.
The RBI announced a rate cut of 50 bps in CRR and 100bps for Repo and Reverse Repo to release nearly 20,000 crores in to the system. The GOI simultaneously announced liberalized ECB norms that can benefit the big reality players and some measures in customs duty to curb the free flow of cement from the neighboring countries. This will benefit the cement companies those were strapped to a fixed price for more than 2½ years. This will have a counter effect on the construction companies already surviving on thin margins were given credit but not the profits.
The real worry for now to next 3 quarters is the demand contraction. The seriousness of economic worries will hit the head lines when the demand contraction in the domestic markets face. The Indian economy is growing on the export fillip despite a large domestic demand existing. Now the challenge is that the exports will be seriously getting affected days to come and the supply glut will impact the purchasing interest of the consumer.
The net-net the Indian economy will see troubled months a head but this period can be considered as a “capacity building opportunity” by the big industry houses.
The RBI announced a rate cut of 50 bps in CRR and 100bps for Repo and Reverse Repo to release nearly 20,000 crores in to the system. The GOI simultaneously announced liberalized ECB norms that can benefit the big reality players and some measures in customs duty to curb the free flow of cement from the neighboring countries. This will benefit the cement companies those were strapped to a fixed price for more than 2½ years. This will have a counter effect on the construction companies already surviving on thin margins were given credit but not the profits.
The real worry for now to next 3 quarters is the demand contraction. The seriousness of economic worries will hit the head lines when the demand contraction in the domestic markets face. The Indian economy is growing on the export fillip despite a large domestic demand existing. Now the challenge is that the exports will be seriously getting affected days to come and the supply glut will impact the purchasing interest of the consumer.
The net-net the Indian economy will see troubled months a head but this period can be considered as a “capacity building opportunity” by the big industry houses.
The stimulus too…
The govt. announced stimulus package-2 has also failed to lure the industry, so will be the market. The Govt. is looking for a long-term sustainable action where as the markets are interested in immediate benefits to see the sentiment revived. The strong hands are interested in long gestation period of rise with intermittent sharp rally where the reverse is true with the small investor.
The RBI announced a rate cut of 50 bps in CRR and 100bps for Repo and Reverse Repo to release nearly 20,000 crores in to the system. The GOI simultaneously announced liberalized ECB norms that can benefit the big reality players and some measures in customs duty to curb the free flow of cement from the neighboring countries. This will benefit the cement companies those were strapped to a fixed price for more than 2½ years. This will have a counter effect on the construction companies already surviving on thin margins were given credit but not the profits.
The real worry for now to next 3 quarters is the demand contraction. The seriousness of economic worries will hit the head lines when the demand contraction in the domestic markets face. The Indian economy is growing on the export fillip despite a large domestic demand existing. Now the challenge is that the exports will be seriously getting affected days to come and the supply glut will impact the purchasing interest of the consumer.
The net-net the Indian economy will see troubled months a head but this period can be considered as a “capacity building opportunity” by the big industry houses.
Thursday, January 01, 2009
HAPPY NEW YEAR
Wish You Happy and Prosperous NEW YEAR - 2009
"THE NEW YEAR WILL BRING WEALTH, HEALTH & PEACE TO EVERY ONE"
B.NAGESWARA RAO
Tuesday, December 30, 2008
The strength gained….
As posted in the morning the Nifty took support at 2899 crossed the resistance of 2983-86 and registered a high of 2999 but closed at 2980 level. The SBI registered a low at 1259.60 and the ICICI touched a high at 464.85. The DLF has made a high of 290 level and the Punj was stopped at 148 level.
The ONGC is offer was accepted by the Imperial energy stock holders. The IRDA has allowed more investments by insurance companies in Indian Infra structure projects is a big boost to the firms.
The ONGC is offer was accepted by the Imperial energy stock holders. The IRDA has allowed more investments by insurance companies in Indian Infra structure projects is a big boost to the firms.
Nifty is having good support at 2860 level and the resistance at 2983-86 level.
The Reliance has support at 1220-23 level good so long it trades above 1235 and
in Bulls grip above 1245 level.
The SBI is good above 1256 and will face
resistance at 1297-93 and at 1320 level. The ICICI is shuttling between 403 to
460 level. The stock will cross the resistance and trades above 465 then look
for 525-30 range from where the banks will see steep correction.
The
reality& infra move in the past 10 days has exhausted and the correction put
them in trading range. The DLF is still in Bulls grip but the stock is good
above 293 level and weak below 271. The Punjlloyd took support at 136 level may
face serious resistance at 151-53 level.
The wait and watch ….
The year end move is positive as the markets took support at 2812 level bounced back to cross the resistance at 2930 level but the real challenge is that the markets are facing very strong resistance at this moment at 3030 level. The markets are surviving on low volumes in the frontline counters. The geo-political tensions are easing as the negotiations are heading for a solution as the super power US and the UK are putting pressure on PAK, seems threatened that the economic sanctions could be levied.
The saga of Satyam continued to be brutal bruise to investors especially the retail small investors who put their faith. The planned exit of Raju is most worrying to worrying than the corporate administration.
The Nifty is having good support at 2860 level and the resistance at 2983-86 level. The Reliance has support at 1220-23 level good so long it trades above 1235 and in Bulls grip above 1245 level.
The SBI is good above 1256 and will face resistance at 1297-93 and at 1320 level. The ICICI is shuttling between 403 to 460 level. The stock will cross the resistance and trades above 465 then look for 525-30 range from where the banks will see steep correction.
The reality& infra move in the past 10 days has exhausted and the correction put them in trading range. The DLF is still in Bulls grip but the stock is good above 293 level and weak below 271. The Punjlloyd took support at 136 level may face serious resistance at 151-53 level.
The saga of Satyam continued to be brutal bruise to investors especially the retail small investors who put their faith. The planned exit of Raju is most worrying to worrying than the corporate administration.
The Nifty is having good support at 2860 level and the resistance at 2983-86 level. The Reliance has support at 1220-23 level good so long it trades above 1235 and in Bulls grip above 1245 level.
The SBI is good above 1256 and will face resistance at 1297-93 and at 1320 level. The ICICI is shuttling between 403 to 460 level. The stock will cross the resistance and trades above 465 then look for 525-30 range from where the banks will see steep correction.
The reality& infra move in the past 10 days has exhausted and the correction put them in trading range. The DLF is still in Bulls grip but the stock is good above 293 level and weak below 271. The Punjlloyd took support at 136 level may face serious resistance at 151-53 level.
Thursday, December 25, 2008
MERRY CHRISTMAS….
WISH YOU A HAPPY & CHEERFULL “CHRISTMAS”.
MAY THIS CHRISTMAS BRING WEALTH, HEALTH AND PEACE TO ONE & ALL.
Tuesday, December 23, 2008
The security concerns…
Both the countries are equipped with nuclear technology heading for a collision can draw catastrophic results. The efforts of India are yielding results as the international pressures are mounting on Pak Govt. and local political uncertainties are placing that country in a fix.
The strength of markets can be gain when the dark clouds of war ceases. The Nifty is facing resistance at 3100 level but 3030-3026 level holds good for yesterday may be challenged to day because the RIL fell below 1315 support level. The HDFC and HDFC bank are driving south wards. The markets may hold in tight band till the expiry.
The Nifty is good above 3076-79 level which will become a resistance and the support for this day could be at 2961-63 level. The SBI is holding above 1265 is good, DLF is good above 296 and ONGC above 694. In case these trade below their support level and RIL below 1296 level is a clear sign of Bear grip over the markets. The HDFC is weak below 1532 and minor support at 1410-12 level. The HDFC Bank is weak below 1036 level and support at 930-32 level.
The strength of markets can be gain when the dark clouds of war ceases. The Nifty is facing resistance at 3100 level but 3030-3026 level holds good for yesterday may be challenged to day because the RIL fell below 1315 support level. The HDFC and HDFC bank are driving south wards. The markets may hold in tight band till the expiry.
The Nifty is good above 3076-79 level which will become a resistance and the support for this day could be at 2961-63 level. The SBI is holding above 1265 is good, DLF is good above 296 and ONGC above 694. In case these trade below their support level and RIL below 1296 level is a clear sign of Bear grip over the markets. The HDFC is weak below 1532 and minor support at 1410-12 level. The HDFC Bank is weak below 1036 level and support at 930-32 level.
Monday, December 22, 2008
The Air strike ?…
The Air strike by India has become immense importance to curb the terrorist activities of POK based organizations. The wait and watch approach strengthens the extremists. The peace loving nature shall bring friends but this attitude dilutes with the foes, take advantage of the good feeling to weakness. The markets like the move that lights our spirits however strong we argue on the impairments of war to humanity.
The Nifty is loosing momentum as the heavy weights like RIL, ICICI, ONGC and other counters of telecos. The recent momentum counters are Relcap, Rel infra, HUL and DLF hold the value and not good to be trapped by selling.
At this point the markets have good support at 2961-63 level. So the markets are strong for the Bulls and be with them for short period incase RIL cross the resistance at 1415-18 level or shorts built if it trades below 1315-18.
The Nifty is loosing momentum as the heavy weights like RIL, ICICI, ONGC and other counters of telecos. The recent momentum counters are Relcap, Rel infra, HUL and DLF hold the value and not good to be trapped by selling.
At this point the markets have good support at 2961-63 level. So the markets are strong for the Bulls and be with them for short period incase RIL cross the resistance at 1415-18 level or shorts built if it trades below 1315-18.
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