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Markets this week

 

This week saw more bad news coming our way. Washington mutual, the worlds  largest bank failed. It has been handed to JP Morgan.

 

It was a savage correction in the markets led by negative global cues; bears took complete control over bulls and pushed the Nifty below psychological level of 4000. Benchmark indices got butchered by heavy sell off in heavyweights like Reliance Industries, ICICI Bank, Infosys, L&T, HDFC, HDFC Bank, SBI, ONGC, BHEL, NTPC and Reliance Communication.

Realty, metal, banking, capital goods, power, technology, auto, oil and telecom stocks took huge beating on the bourses, especially realty stocks have seen a big chink.

The Nifty closed below psychological level of 4000, which was the first weekly closing below 4000 since May 2007. It fell 125.3 points or 3.05%, to settle at 3985.25, after hitting an intraday low of 3970.35.

The Sensex has hit a low of 13,054.42, before closing at 13,102.18, down 445 points or 3.28%.

Global Cues

Congressional leaders said shortly after midnight that they had reached a tentative deal over the White House's proposed $700 billion bailout of the financial system.

Members of both parties and Treasury Secretary Henry Paulson were aiming to craft final legislation by Sunday evening - in time for the start of financial markets around the world.

"We've been working very hard on this and we've made great progress toward a deal that will work and will be effective in the marketplace and effective for all Americans," Paulson said.

Paulson made the announcement along with House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., and other legislators. They characterized the accord as an agreement in principle.

"Now it's got to be turned over to the lawyers, turned into final language," said Sen. Kent Conrad, D-N.D.

The Bush administration, in the government's boldest strike yet at the credit crisis, is seeking congressional authority for Treasury to buy as much as $700 billion in troubled mortgage and other assets weighing down banks and other financial institutions. The goal is to free up banks to start lending again.

Under the tentative deal being finalized, the rescue program would be overseen by a board including the Treasury Secretary, Secretary of Commerce, head of the Securities and Exchange Commission and chairman of the Federal Reserve, said Conrad, who heads the Senate Budget Committee.

According to Conrad, $700 billion would be disbursed in stages, with $250 billion made available immediately. In addition, Treasury would establish an insurance program - with premiums paid by the industry - to mitigate taxpayer losses. The bill would also likely include some curbs on the compensation of executives at companies that participate.

Markets This Week

Now after the completion of the nuclear deal, and bailout plan likely to be passed out till late Sunday night (US time), hope markets will be improving this week. But things to worsen if the US congress don’t reach to a solution.  Most likely the plan will be passed and markets are expected to have good rally on Monday.

Stocks which can be picked are power stocks due to passing of deal like NTPC,BHEL, RPower etc, banking stocks like ICICI bank, SBI and UCO bank and reality sector.

 For futher queries and suggestions and other trading related work contact:

Head OfficeBuilding No.5,
BN Block Market,
Shalimar Bagh,
Delhi-110088
Phone No: 47031300, 47030001-47, 41530314-15
Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com

 

Nikunj Stock Brokers

 

Markets Today

 

Markets have rebounded with small rally in today's session after sharp fall seen on Tuesday and ended higher though they were off day's high. Benchmark indices saw some volatility as well ahead of F&O expiry for the month of September.

Buying was seen in metal, banking, oil, power and capital goods stocks. However, technology stocks remained under pressure throughout the day.

The Sensex rose 122.21 points or 0.9%, to settle at 13,692.52. The Nifty had managed to cross 4200 during the session but failed to sustain above that level. It closed at 4161.25, down 34.35 points or 0.83%. Both indices lost 148.29 points and 46.7 points from day's high of 13,840.81 and 4207.95, respectively.

In the F&O segment, rollovers were low; short rollovers failed to pick up. Nifty rollover was at 43.2% versus 56% and marketwide rollover stood at 50.4% versus 56%. Nifty October futures ended at a 31-point premium and September Futures ended at 28.75-point premium. Fresh long build up was seen in metals stocks; Sterlite October futures added 17 lakh shares in Open Interest. Fresh long build up was also seen in banks.

Among the frontliners, Sterlite Inds rose 8.26%, HDFC Bank 3.18%, Tata Steel 2.77%, Reliance Infra 2.22%, M&M 2.17% and NALCO 5.61%.

 

Global Cues

Oil prices rallied Wednesday as the market waits to hear from Congress about the proposed $700 bailout plan and for weekly supply data from the government.

Oil climbed $1.24 at $107.85 a barrel. On Tuesday, oil slipped $2.76 to settle at $106.61 a barrel as the market refocused on how the dour economic situation has crimped demand.

Bailout plan: The oil market has been waiting to hear from Congress about a $700 billion proposed bailout plan for beleaguered financial services companies. The debate over the rescue was very heated Tuesday.

The plan could pull oil prices higher, depending on the specific terms of the plan and depending on the economy's reaction to whatever plan is adopted.

If the bailout were passed and served to jumpstart the lethargic economy, the oil market hopes that demand for energy would recover to healthy levels. If the economy recovers and demand for oil recovers, then oil prices jump.

Market Tips

As nuclear deal is around the corner and would be finalized by tomorrow as PM Manmohan Singh is in America for ten day tour of US and France. Since deal is most likely to be done, we maintain buy on power stocks. Some of the one which are eminent are:

1.      NTPC

2.      KSK Energy

3.       BHEL

4.       RPL

For futher queries and suggestions and other trading related work contact:
Head OfficeBuilding No.5,
BN Block Market,
Shalimar Bagh,
Delhi-110088
Phone No: 47031300, 47030001-47, 41530314-15
Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com

 

Nikunj Stock Brokers

Market Today

What a turn around seen by the markets today. With US giving statments that they would take all required actions to protect the investors. To safe guard share prices and stabilise the market, US govt have put hault on short selling. Short selling is suspended there till 2nd October.

China scrapped stamp duty on stock purchase and curbed short selling, that news helped Shanghai to scale up to 10% in today's trade followed by Hang Seng with a gain of 9.61% at close. The Nikkei was up 3.76%, Taiwan 5.82%, Kospi 4.55%, Straits Times 5.78% and Jakarta 5.82%.

All this positive news became helpful and energetic for our markets as well. The BSE Sensex turned back above 14,000 mark after touching July lows of 12,558.14 this week. It was almost 1500 points rally for the Sensex. It closed at 14,042.32, a gain of 726.72 points or 5.46%.
The NSE Nifty Fifty shot up 207.1 points or 5.13%, to settle at 4245.25. It recovered nearly 446 points from this week's low of 3799.55.

Among the top gainers, Satyam shot up 10.16%, HDFC 8.77%, ICICI Bank 8.72%, Idea Cellular 8.72%, Tata Power 8.42% and DLF 7.78%.

Also the positive news is that FII's have started showing interest back in the market. Today they were net buyers of around 1000 cr.

Global Cues

Stocks spiked Friday afternoon, with the Dow briefly jumping more than 450 points, as the government's actions to help rescue banks from toxic mortgage debt reassured investors at the end of a gut-churning week on Wall Street.
Treasury bond prices plunged as investors bailed out of the safe-haven commodity and poured money into equities. The plunge lifted yields, with the ten-year note hitting 3.77%. Prices and yields move in opposite directions.
The Dow Jones industrial average (INDU) added 440 points, or 4% over 3 hours into the session. The Standard & Poor's 500 (SPX) index jumped 4.6%. The Nasdaq composite (COMP) gained 4%.

Tips

Markets are expected to open around 44oo levels on Monday. Another 5-6% rally is expected before it shows some resistance. As we told earlier that this is the right time to buy stocks(as its getting proved), we maintain are bet on it , to buy A grade stocks but do leave the market around 4500-4600 levels for time being.

The stock suggested such as KSK, NTPC, UCo Bank saw good profits. Rest will follow the suit.

Among stock to pick are HFCL at 13.50, JP Assosicate at 150, RPL at 145 and ICICI bank.

For futher queries and suggestions and other trading related work contact:
Head Office
Building No.5,BN Block Market,
Shalimar Bagh,Delhi-110088
Phone No: 47031300, 47030001-47, 41530314-15
Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com

Nikunj Stock Brokers

Markets Today

Markets today took a huge swing from lower levels of 3900 to end marginally in green at 4094. Markets show a large amount of shortcovering as Nifty and Sensex were closing in red for last 5 days. Market have lost around 15% last week so this shortcovering was expected.This late trade recovery was led by most beaten down stocks like Reliance Industries, SBI, HDFC Bank, BHEL and Reliance Power

The Sensex has recovered nearly 467 points and the Nifty 155 points from days low of 13,051.73 and 3919.35, respectively. The Sensex closed with a loss of 12.47 points or 0.09% at 13,518.80 while the Nifty rose 2 points or 0.05%, to settle at 4074.90.
Nifty ended at a premium of 18 points. There was mix of short covering and long build up in banking stocks. ICICI Bank continued to see short build up and saw addition of 32% in Open Interest. Metal stocks continued to see short build up. PCR fell to 0.84 versus 0.89 on Monday. Call buying was seen in 4100-4200 strike prices.
Among the frontliners, Tata Communication shot up 7.77%, SBI 6.49%, Sterlite Industries 2.66%, Reliance Industries 2.35%, HDFC Bank 2.16%, ITC 2.16%, NALCO 4.07%, BPCL 3.88% and Hero Honda 3.36%. However, ICICI Bank plunged 5.82%, Jaiprakash Associates -5.09%, Maruti Suzuki -3.55%, Ranbaxy Labs -3.23%, Satyam -3.21%, Suzlon Energy -5%, Sun Pharma -3.58% and Cairn India -3.52%.

Global Cues

Shares of American International Group(AIG) tumbled Tuesday as the company scrambled to raise as much as $75 billion to keep itself afloat.
The pressure on the nation's largest insurer reached fevered pitch on Monday night as the troubled insurer was hit by a series of credit rating downgrades.
The cuts could prove deadly to AIG (AIG, Fortune 500), forcing it to post more than $13 billion in additional collateral. Shares were down 42% in early morning trading, after falling more than 70% in early morning trading and losing 61% of their value the day before. In India, it is running in collaboration with TATA.

Though US markets were slightly in green due. Dow jones was up 65 pts at 10984 and Nasdaq at 2184, almost flat.

Market Tips

Following the boost to liquidity by RBI, PSU sectors banks saw a good recovery today.The pack was led by SBI. More good news is expected in this sector.

Though, Lehman Bros had 24% stake in KSK Energy still the stock rose significantly today. This shows good amount of faith in this company and some internal factors may be encouraging. So this is looking quite a good bet.

MRPL at 56 is also a safe bet at these rates and could give huge returns in coming times.

For futher queries and suggestions and other trading related work contact:

Head Office

Building No.5,BN Block Market,

Shalimar Bagh,Delhi-110088

Phone No: 47031300, 47030001-47, 41530314-15

Email : nikunjhelpdesk@nikunjonline.com

Website: nikunjonline.com

Nikunj Stock Brokers

Markets Today

Today can be termed as black monday in Indian market.
It was a sharp cut in Indian equities along with global markets through the day as endless credit crisis in the US financial space worries markets globally. Rate sensitives, infrastructure, oil and technology stocks witnessed huge selling pressure followed by midcap and small cap stocks. Benchmark indices crashed severely on huge volumes. But some recovery was seen in last one hour of trade led by auto and banking stocks.

Bears have been playing their role for fifth consecutive day and kept bulls under control. Financial woes are still active in the US financial space. The news of Lehman Brothers filed Chapter 11 bankruptcy has played a big role in today's session, which is one of the most reputed financial firm in the US. This news has walloped Asian and European markets as well. US markets are likely to open lower.

Lehman Brothers says no broker-dealer subsidiaries to be included in bankruptcy filing and the company is exploring sale of its broker-dealer operations. Bank of America and Barclays had showed an interest in the Lehman Brothers but backed out.

Indian benchmark indices were slaughtered severely after this news; the Sensex lost 850 points and the Nifty fell 273 points to hit an intraday low of 13,150.81 and 3955.40, respectively. The Sensex closed with a loss of 469.54 or 3.35% at 13,531.27 and the Nifty fell 155.55 points or 3.68%, to settle at 4072.90.
Some buying in auto and banking stocks has helped markets a bit in last one hour of trade. Both indices recovered nearly 380 points and 117.5 points, respectively. This recovery might be because of Crude, which touched USD 96 to a barrel and China has cut its lending rates by 27 basis Points from September 16, which also cuts its reserve requirements for small banks by 1%.

Global Cues

Stocks plummeted Monday morning as investors contended with the largest financial crisis in years that saw Lehman Brothers file for the biggest bankruptcy in history and Bank of America buy Merrill Lynch in a $50 billion deal.
The Dow Jones industrial average (INDU) lost 240 points, or 2.1%, more than an hour into the session.
The Standard & Poor's 500 (SPX) index lost 1.7% and the Nasdaq composite (COMP) lost 1%.

Lehman Bros have filed for level 11 bankruptcy.

Also crude prices have fallen significantly to 95$/barrel, down almost 5$/barrel amid reports that there is no damage to oil refineries due to hurrricane.

Today's Tip

Markets will claw back soon but experts feel that it hasnt bottomed out yet and expect more fall in coming days. Markets may bottom out around 3900-3800 levels, but these rates provides good buying oppurtunity. I would maintain my previous buying suggestions as they seems to have already bottomed out and could see windfall increase once market sentiments starts to improve. Visit previous posts to look for the stocks to be picked for buying. If one invest strategically and remains patient these share would deliver 33-75% profits in no time. Also watch for Dr. Reddy and Renuka sugar along with previous suggestions.

For futher queries and suggestions and other trading related work contact:Head OfficeBuilding No.5,BN Block Market,Shalimar Bagh,Delhi-110088Phone No: 47031300, 47030001-47, 41530314-15Email : nikunjhelpdesk@nikunjonline.comWebsite: nikunjonline.com

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Markets on Friday

It was a dreadful session for the markets, wherein bears took complete control on benchmark indices in last couple of hours. It was fourth consecutive day that markets were under pressure. They have got beaten down on huge volumes in today’s trade led by heavyweights like Reliance Industries, Infosys, ICICI Bank, ONGC and HDFC and Reliance Infrastructure.

Markets completely ignored positive IIP numbers and global cues. The Sensex slipped below 14000 marks while the Nifty just hit 4200 level again.

The Sensex has touched a low of 13,933.87, before closing down by 323.48 points or 2.26% at 14,000.81. The Nifty fell 61.85 points or 1.44%, to settle at 4228.45. It has hit an intraday low of 4200.15.

Main culprit of the day was Infosys Technologies. It dropped 6% or Rs 104.9, to settle at 1,644.10 as brokerages downgraded earnings. Infosys witnessed volumes of 465,038 shares. This was 103% higher compared to its 5-day average of 229,207 shares. It has added 26 points to this Sensex fall.

Global Clues

Stocks were volatile Friday as investors faced uncertainty about whether Lehman Brothers and Washington Mutual are likely to find buyers and whether AIG will shed its sour mortgage-related assets.

Dow Jones was down 11 pts at 11,421.

Gas prices are set to shoot up amid the news to cyclone Ike hitting US.Gas prices are poised to shoot back toward record highs after Hurricane Ike's direct hit to the heart of the nation's oil refineries, analysts said.

The average price of gasoline nationwide has already shot up 12 cents in the past two days to $3.795 a gallon, according to figures released by the AAA Sunday. And the average price of gas is now at or above $4 in Alaska, Georgia, Hawaii, Illinois, Indiana, Michigan and South Carolina.

In addition, Hurricane Ike could turn out to be the third-most expensive natural disaster in U.S. history, according to preliminary forecasts from a firm that does loss estimates for the insurance industry.

Market Tip

Markets are most likely to see a revival on Monday after a huge cut for 2^nd day running.

There is nothing much to suggest this time around due to poor market sentiments. Keep faith in Unitech, J P Hydro, IFCI and NTPC.

Among others Bajaj Auto is a good value for money stock. Technicals has maintained buy rating on Bajaj Auto, in its report dated September 2, 2008. Total volumes increased 2.7% YoY to 200,955 units. 3-Wheelers volumes declined by 4.6% to 24,324 units and YTD de-growth of 11.5%. Based on new product launches, Bajaj expects its domestic motorcycle sales to register double digit growth in 2HFY09. Our current FY09 volume growth estimate is 3.8% for FY09, implying residual growth of 2.1%. For motor cycles, our FY09 estimate is 4% growth and implied residual growth is 0.3%. We will be upgrading our estimates. The stock trades at P/E of 10x FY09E and 8.6x FY10E. we have maintained buy rating on this.

For futher queries and suggestions and other trading related work contact:
Head OfficeBuilding No.5,
BN Block Market,
Shalimar Bagh,
Delhi-110088
Phone No: 47031300, 47030001-47, 41530314-15
Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com

Nikunj Stock Brokers

Markets Today

Markets plunged today to deeper level following profit booking and week global cues.

Major losers were oils companies, private banks, telecom and power.

The Sensex lost 238.15 points or 1.6%, to settle at 14,662.61 and Nifty closed with a loss of 68.45 points or 1.53% at 4400.25. BSE Midcap Index fell 1.2% or 69.27, to end at 5,708.93 and Small Cap Index lost 61.19 points or 0.88% to 6,903.42.

Among the frontliners, Sterlite Industries plunged 11.78%, SAIL -6.92%, Tata Steel -5.21%, Tata Power -3.44%, Reliance Infrastructure -3.36% and Bharti Airtel -2.93%. However, Zee Entertainment, NALCO, Suzlon Energy, Hero Honda, ACC, Grasim, Infosys and Ranbaxy Labs were gainers.

Global markets saw a bit of bounce bank after yesterday’s slump in the market. The news that Lehman Bros can’t fail has boosted the market after the fall of 45% in the share price on a single day.

The Dow Jones industrial average (INDU) gained 0.8% almost 3 hours into the session. The NASDAQ composite (COMP) gained 0.9% and the Standard & Poor's 500 (SPX) index gained 0.6%.Crude is also down and currently at 103$/ barrel.

Markets tomorrow

Markets have now become range bound between 4300-4500 levels. Its unlikely to see it breaking this barrier in near term. However a strong support can been seen if it breaks 4600 barrier. But markets for tomorrow are seen to be generally flat, with sentiments from global markets driving it.

Tip for tomorrow

1. Varun shipping

CMP-65.15

The Stock is seen as a out performer in coming weeks and is targeted at around Rs90 within two months.

2. Jaiprakash Hydro

CMP – 52.30

52 week high- 143 52 week low- 38.90

Target Price- 80

3. IFCI

CMP- 47

The stock when it reached levels of Rs30 produced shock to every technical keeping an eye on this share. It has never fallen to these levels, infact it has always seen a huge support around Rs50 in falling market. So, now this share is off its lows and all the worries so one can have a blind faith in this stock. Do keep it for as it puts a price on your Portfolio.

For futher queries and suggestions and other trading related work contact:
Head OfficeBuilding No.5,
BN Block Market,
Shalimar Bagh,
Delhi-110088
Phone No: 47031300, 47030001-47, 41530314-15
Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com