The export based survivals like and cotton are facing the heat of Rupee strengthening. The Rupee got good strength on the future outlook of the economy and the huge dollar inflow.
The IT and the BPO sector mid caps will suffer the most as they cannot match their peers. The giants are eyes the domestic business which is opening its doors, especially to the top 5 It power houses.
The markets are gaining strength in the index due to heavy import dependant oil sector majors gaining the ground for the last 10 trading days.
The RBI heavily invested the surplus of dollars in GOLD, allowed the rupee to appreciate for some extent to balance the payment obligations.
Now the market will see correction in Pharma majors Divis, CIPLA, Ranbaxy, DrReddy, Piramals, Aurobindo and export dependant infrastructure companies like Punj Llyod and LT, some extent the Indian auto companies who are exporting considerably.
The banking sector is waiting for some cues to react. The price of ICICI falls below 850 then the market will see a major correction as anticipated. The Tata steel is facing resistance at 649-52 level will touch 614-611 incase the Nifty trades below 5250 level.
As of now the only ugly duck and lamenting for Govt. support industry- the reality sector is in bull grip may be some informed action being built in.
The odd sign is that the treasury stock sale of Reliance for Rs2500 cr and the promoter offloadings are not healthy signs, stimulus exit plans in near future may welcome bitter taste.
The Nifty is still in Bull grip so long it trades above 5240 and a serious correction for 100 points is viewed with the above said (previous postings) supports cracked.
Friday, January 08, 2010
Thursday, January 07, 2010
FIIs continue to buy...but
The markets are holding above 5180 can always look for a target of 5450 level, to be precise the markets are in bull grip even if the Nifty falls to a level of 4950. The Nifty is holding despite the new highs were touched. But the divergent behaviour of the Nifty stocks is not a good sign for a longer bet. The market is good for buying solong the big boy Reliance trades above 1076 level and ONGC above1205 level.
The very fact that the market is not reacting to news of Individual companies like Bharti but the poring of dollars into India has generated much interest in the market as a whole to scale to 23 month high. The big support being given by investors to the recent IPOs is a good sign, doing well in the market unlike the earlier listings.
The health care especially those are in CRAMS and biotech are being encouraged in yesterday. The reality sector majors will give good early gains for tomorrow but the market is likely to see a correction which is a healthy sign.
The DLF is good above 373 level and HDIL is good above 376 level. The Tata Motors can be shorted with a stoploss at 826 level and Tatapower may see correction to close below 1455. The metals may see some further correction generated and Sesa Goa is no exception.
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FIIs infuse Rs 24,800 cr in stock markets in December quarter--- The Economic Times covered on 3 Jan 2010 about the FII interest in Indian economic growth and in our markets
…In the quarter under review, December attracted the highest inflow of Rs 10,233.1 crore($2.1 billion), followed by October (Rs 9,077 crore) and November (5,497 crore)….
…FII investment of Rs 83,420 crore in 2009 is the highest ever inflow in the country in rupee terms in a single year and comes a year after they pulled out over Rs 50,000 crore. …The inflow in 2009 broke the previous high of Rs 71,486 crore parked by foreign fund houses in domestic equities in 2007. …Interestingly, the whopping inflow by FIIs into the local stock markets has alarmed the government and other authorities concerned….
The markets are holding above 5180 can always look for a target of 5450 level, to be precise the markets are in bull grip even if the Nifty falls to a level of 4950. The Nifty is holding despite the new highs were touched. But the divergent behaviour of the Nifty stocks is not a good sign for a longer bet. The market is good for buying solong the big boy Reliance trades above 1076 level and ONGC above1205 level.
The very fact that the market is not reacting to news of Individual companies like Bharti but the poring of dollars into India has generated much interest in the market as a whole to scale to 23 month high. The big support being given by investors to the recent IPOs is a good sign, doing well in the market unlike the earlier listings.
The health care especially those are in CRAMS and biotech are being encouraged in yesterday. The reality sector majors will give good early gains for tomorrow but the market is likely to see a correction which is a healthy sign.
The DLF is good above 373 level and HDIL is good above 376 level. The Tata Motors can be shorted with a stoploss at 826 level and Tatapower may see correction to close below 1455. The metals may see some further correction generated and Sesa Goa is no exception.
----------------------------------------------------------------------------------------------
FIIs infuse Rs 24,800 cr in stock markets in December quarter--- The Economic Times covered on 3 Jan 2010 about the FII interest in Indian economic growth and in our markets
…In the quarter under review, December attracted the highest inflow of Rs 10,233.1 crore($2.1 billion), followed by October (Rs 9,077 crore) and November (5,497 crore)….
…FII investment of Rs 83,420 crore in 2009 is the highest ever inflow in the country in rupee terms in a single year and comes a year after they pulled out over Rs 50,000 crore. …The inflow in 2009 broke the previous high of Rs 71,486 crore parked by foreign fund houses in domestic equities in 2007. …Interestingly, the whopping inflow by FIIs into the local stock markets has alarmed the government and other authorities concerned….
The markets are holding above 5180 can always look for a target of 5450 level, to be precise the markets are in bull grip even if the Nifty falls to a level of 4950. The Nifty is holding despite the new highs were touched. But the divergent behaviour of the Nifty stocks is not a good sign for a longer bet. The market is good for buying solong the big boy Reliance trades above 1076 level and ONGC above1205 level.
Tuesday, January 05, 2010
THE METAL RALLY
The recent rally from 4950 to 5280 - The commodity stocks are rocking the street, first the ferrous metals later followed by base metals and after some time lag the Sugar and Tea enjoyed the bulls support.
The auto sector has got tremendous investor support especially in TATAMOTORS and M&M despite the recessionary investment postponements in other sectors but not in the transport vehicles. The auto exports are increasing from India and continue to do so in future but not the prices of these stocks any longer.
The immediate prospects on banking are emerging. The stocks like SBI, ICICI and Relcap likely to catch up with market trend for sure but not at all good for holding more than two weeks....
As a matter of fact Nifty in strong bull grip but being used to off-load....wait for the future and see in the past.....
The auto sector has got tremendous investor support especially in TATAMOTORS and M&M despite the recessionary investment postponements in other sectors but not in the transport vehicles. The auto exports are increasing from India and continue to do so in future but not the prices of these stocks any longer.
The immediate prospects on banking are emerging. The stocks like SBI, ICICI and Relcap likely to catch up with market trend for sure but not at all good for holding more than two weeks....
As a matter of fact Nifty in strong bull grip but being used to off-load....wait for the future and see in the past.....
NEW YEAR- WEALTH CREATION
Wish You a Happy and Prosperous Year-2010
Now the market is likely to be range bound for this 2010 with in the range of 3660-5640 levels for Nifty.
The traders with good understanding of stock action can GAIN more than the sluggish decision makers with a view of high growth in share prices just for their holding period as a reward.
I sincerely wish you all the New Year provide prosperity and satisfaction for being in the stock market no matter the direction of journey of the market.
Now the market is likely to be range bound for this 2010 with in the range of 3660-5640 levels for Nifty.
The traders with good understanding of stock action can GAIN more than the sluggish decision makers with a view of high growth in share prices just for their holding period as a reward.
I sincerely wish you all the New Year provide prosperity and satisfaction for being in the stock market no matter the direction of journey of the market.
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