News with Tags "Nifty"

Moneycontrol Bureau

Indian shares took a breather on Monday and closed marginally in red on profit booking after hitting fresh 2.5 year highs. Pharma companies dragged key equity benchmarks lower while major auto stocks ended in green.

The Sensex closed at 20223.98, down 62 points or 0.31% and the Nifty ended at 6156.90 down 30 points or 0.49 percent. About 1107 shares advanced, 1298 shares declined, and 141 shares were unchanged.

Macquarie’s Head of Research Rakesh Arora sees the Nifty hitting 6900 by this year end. Arora is hopeful of the capital expenditure cycle picking up from the second half of this financial year. In the infrastructure space, Arora is bullish on Cummins. In the banking space, he likes SBI and Axis Bank, and among autos, his top bets are Maruti and Tata Motors.

Key gainers in the Nifty were Maruti Suzuki, Bajaj Auto, Mahindra and Mahindra, HCL Technologies and Coal India, up over a percent each.

Laggards included Ranbaxy Labs, Lupin, Jaiprakash Associates, Bharti Airtel and ONGC, down between 2 to 6 percent. 

Pharma stocks were severely hit today. Glaxo SmithKline Pharma, Cadila Healthcare, Cipla and Ranbaxy are likely to be negatively impacted from the new drug price control order (DPCO) says broking firm HSBC.

Auto stocks were biggest gainers of the day. Shares of Maruti surged to fresh year high on further weakness in yen while M&M rallied to record highs after its arm Ssangyong Motor Company touched 16-month high.

Shares of Apollo Hospitals and India Cements ended with heavy losses after reporting disappointing quarterly results while City Union Bank and Adani Enterprises closed in green post earnings.

In the midcap space, shares of Himadri Chemicals, Voltamp Transformers, Thomas Cook, KSK Energy Ventures, MTNL, Motherson Sumi, Bajaj Finance and GSFC gained between 5 to 20 percent.

The Indian rupee closed at 2.5 month low in the late afteroon trade. Traders say good demand for the greenback from oil importers and gold firms hurting the rupee, reported Reuters. The USDINR pair closed below 55 mark at 55.11 to the dollar against 54.88 on Friday.

In the primary market, Just Dial IPO opened for subscription today. The issue price range is Rs. 470 - 543 and the discount to retail investors is Rs. 47 (10 per cent to the floor price). The issue will close for subscription on May 22.

The total turnover for the day was Rs 181067.85 crore. Break-up: NSE Cash Rs 10831.58 crore, NSE F&O Rs 132080.27 crore, BSE F&O Rs 36157 crore, BSE Cash Rs 1999 crore.

As per provisional data, foreign institutional investors bought shares worth Rs 753.37 crore in equities on Monday while domestic institutional investors sold Rs 764.32 crore worth of shares.

MUST READ: New drug price policy: Which pharma cos will feel the heat?

Live Market Commentary

Moneycontrol Bureau

3:20 pm News update: Global retailers like Walmart and Tesco can set up warehouses, cold storages and source products from SMEs in states which have not permitted FDI in the multi-brand retail sector, a senior official said.

"Foreign players can set up warehouses and also source products from small and medium enterprises from those states which are against FDI in multi-brand retail. No state will stop any foreign player to procure goods or do business with SMEs," a top official in the DIPP told PTI.

3:12pm Buzzing now: Thomas Cook surges 12.65 percent after sources indicate the company is looking to monetise its land assets. The company owns 32 properties across India.

3:08 pm Weather update: IMD says monsoon has covered Andaman Sea and more parts of Bay of Bengal

The market is off the day's highs as the Nifty has fallen off the 6200-mark. The Sensex is down 41.11 points at 20245.01, and the Nifty fell 19.55 points at 6167.75.

The midcap index was flat, but names like Ashok Leyland, Reliance Cap, HDIL and IVRCL are seeing smart gains.

Weakness in pharma and consumer durables were pulling down the indices.

Bharti Airtel, ONGC, Dr Reddys Labs,  Wipro and Cipla were major losers in the Sensex.

Live Market Commentary
Moneycontrol Bureau

1:50 pm News update: Tata Power is likely to commission 240 mw Indonesia JVunit by July 15, reports Cogencis.

1:40 pm Apollo Hospitals Q4:
Net profit at Rs 75.5 crore vs Rs 59.3 crore (YoY)
Net sales at Rs 848.3 crore vs Rs 744.6 crore (YoY)
Tax reversal of Rs 11.4 crore.

It is quoting at Rs 1,028.15, down Rs 39.60, or 3.71 percent.

Experts talk:

Credit Suisse neutral on Mahindra Satyam; trims estimates
ITC results in-line, other FMCG profits surprise: StanChart

1.32 pm Market check: The market has gone a bit weak. The Nifty slips below 6200. The Sensex is up 71.72 points or 0.35% at 20357.84, and the Nifty up 10.90 points or 0.18% at 6198.20.

1:28 pm News update: Sun Pharma gets High Court nod to spin off domestic formulations operation. It is quoting at Rs 981.00, up Rs 15.70, or 1.63 percent.

1:25 pm Losing stocks: Wipro, Cipla, Bharti Airtel, Dr Reddys Labs, ICICI Bank are major losers in the Sensex.

1:15 pm Star of the day: Mahindra and Mahindra was quoting at Rs 1,013.50, up Rs 28.00, or 2.84 percent after stocks of its subsidiary Ssangyong Motor Co hit a 16-month high, dealers say.

Shares in Ssangyong Motor jumped as much as 13.5 percent on Monday amid expectations the ailing automaker may post a profit this year.

Ssangyong Motor's factory utilisation and sales were growing faster than expected, and the company was seen returning to profit this year, said Yang Hee-joon, an analyst at Taurus Investment & Securities, in a note on Monday.

1:10 pm Movers now: M&M, Maruti Suzuki, Bajaj Auto, Tata Motors and Coal India are key gainers in the Sensex.

It is a stable start to the week. The Nifty was trading above 6200 led by autos and public sector banks. The mid and small caps too see significant traction.

The Sensex is up 96.27 points at 20382.39, and the Nifty up 20.35 at 6207.65.

Colgate is down 2.9 percent in trade today. P&G is set to foray into the Indian toothpaste market in June, with the launch of Oral B toothpaste. The move is seen as a serious threat to Colgate over the long term. CLSA recommends investors to sell while maintaining an underperform rating on stock.

The rupee, meanwhile, slipped to an 11-week low against the dollar hurt by strength in the green back. The range is tipped at 54.8 to 55.2 for the day

The Indian equity market’s technical indicators are bullish and hence, over bought, which will lead to volatility going ahead, cautions Anu Jain, senior vice president, IIFL Private Wealth Management. 6260 will be the key resistance level for Nifty, she feels.

In an interview to CNBC-TV18, she said that the best strategy now would be to get into quality stocks. "Things will move up and move down sharply, so there is going to be a fair amount of volatility. Holding on to longs with a trailing stop loss I think is the best strategy," she added.

Also read: I-T department sends new Rs 577cr tax notice to Infosys

Meanwhile, Jain is bullish on Voltas and says Rs 97 seems like a good target price for now. "It looks like that possibly with a stop loss of about Rs 92, one may be looking towards Rs 97 on the charts right now. I would probably play that for momentum," she explains.

She is also upbeat on Shriram Transport among non banking finance institutions (NBFCs).

Below is the edited transcript of Jain’s interview to CNBC-TV18.

Q: Technically what is the position you would take on the Nifty?

A: On the weekly charts, the way we have held over 6120, for a longer period of time the charts are opening up for much higher levels. Over the weekend, a lot of reports came out about a cup and saucer pattern on both the Sensex and the Nifty which has given Sensex a target of 25,000, not in the short- term but over a long period of time.

The fact is, if we sustain 6120 over a longish period of time and consolidate the breadth of the market, then the strength of the market, definitely increases. All the technical indicators are bullish, but they are definitely over-bought. Nifty has a resistance of 6260.

Some kind of sideward movement or even a downward movement till even 6020 is not going to break the trend and it would kind of take off the over heatedness but there is momentum.

The best strategy to hold for the week is to get into only quality stocks, because if I were to look at the weekly move outs, it’s the high betas which are now showing that they are probably going to shine. So, that’s the dangerous part of it. Things will move up and move down sharply, so there is going to be a fair amount of volatility. Holding on to longs with a trailing stop loss I think is the best strategy. 

Q: You prefer Voltas.

A: Essentially, if one looks at the CNX infra where it had closed at 2554, I think it is poised towards 2650. Over the last one week, it has crossed the 200-day-moving average of 2445. So, I agree that everything in that sector looks good.

Live Commentary

Moneycontrol Bureau

11:52 am Buzzing now: JK Lakshmi Cement is quoting at Rs 107.50, up Rs 7.75, or 7.77 percent.

11:50 am FII flow: Foreign investors have been net buyers for 22 consecutive sessions as of Friday, bringing in a net of about USD 13.52 billion in 2013, regulatory and exchange data shows.

11:45 am Market check: The Sensex is up 91.92 points at 20378.04, and the Nifty up 23.60 points at 6210.90.

11:45 am Macro outlook: There is no case for downgrading India's sovereign credit rating, Economic Affairs Secretary Arvind Mayaram told a news channel, after Standard & Poor's reiterated its negative outlook on the country's credit rating.

11:40 am Boardroom on CNBC-TV18
Pawan Singh, director and CFO, PTC India Financial Services says:
Saw a marginal decline on revenue front
Will be able to maintain NIM at current level going forward
Loan book stands at around Rs 10,000 crore
Have confined ourselves to  energy value chain

11:35 am News update: Aurobindo Pharma promoter releases 20 lakh shares from pledge. It was quoting at Rs 194.45, up Rs 2.20, or 1.14 percent.

11:34 am: Gold value: Gold fell for an eighth straight session on Monday to its weakest level in over a month, as fears that the US Federal Reserve may wind back its economic stimulus programme hurt the metal's appeal as a hedge against inflation.

Investors have been dumping gold, which is down 20 percent so far this year, as stocks and the dollar continue to outperform. If gold closes in the red on Monday, it would match the metal's longest losing streak since March 2009.

11:30 am Buzzing now: TTML surges 5.2 percent as Tata sons has cancelled the offer for sale for Tata Teleservices Maharashtra following a tepid response from investors. Just over 80 percent of the issue was subscribed at more than 30 percent below the floor price.

11:20 am Losing stocks: Wipro, Cipla, ICICI Bank, ONGC and TCS are major losers in the Sensex.

11:17am: Biggest loser: Lupin was quoting at Rs 771.90, down Rs 32.35, or 4.02 percent following the launch of rival Mylan Inc's generic version of the cholesterol-lowering Tricor tablets.

Mylan Inc said in a statement on Friday its unit Mylan Pharmaceuticals Inc has shipped generic Tricor, or fenofibrate tablets, of 48 mg and 145 mg.

11:12 am News update: Suzlon is in talks with 2012 bondholders to refinance debt. It may issue dollar bonds to repay USD 209 million of 2012 notes, reports agencies.  It is quoting at Rs 14.65, up Rs 0.18, or 1.24 percent.

11:05 am Brokerage calls: Citi has assigned a ‘buy’ rating on Jubilant Foods with a target of Rs 1300. “Risk-reward seems to be more reasonable after a moderation in expectations and the recent underperformance,” it says.

Experts take:

CY13 Sensex target at 20700; bet on NBFCs, pvt banks: HSBC
See Nifty 6900 by Dec; like infra, auto: Macquarie's Arora

The market seems to be flexing its muscles today. The Sensex is up 144.50 points at 20430.62 while the Nifty is 6224, up 36.70 points. About 1076 shares have advanced, 715 shares declined, and 98 shares are unchanged.

Auto, metals and realty stocks were lending strength to the indices.

Dhanlaxmi Bank was up 2.1% after reporting a profit of Rs 29 cr compared to loss of Rs 86.5 cr in comparable quarter of last year.

M&M, Tata Motors, Maruti Suzuki, Coal India and RIL were the biggest gainers in the Sensex.

In an interview to CNBC-TV18, Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money Ltd spoke about current trend in F&O market.

Below is a verbatim transcript of the interview:

Q: You would still stay with your longs on the Nifty this week?

A: Yes. I do not see any pattern changing currently on Nifty . The way the Put writers are catching up to cover their Call positions sold, 6,200 Call was sold highest, now we have even seen a starting edition in 6,200 Puts. Clearly, it is more of a Call sold. People are trying to shift at every 100 levels and they are getting caught.

So, I think people who want to go long or who are already long should keep a stop loss of 6,165 with targets of 6,250-6,270. I think some resistance can come in this 20 points range.

However, 6,165 is a level which I am watching carefully. If it has not broken, I think one should continue to hold longs.

Q: You have a strategy on Bharat Heavy Electricals Ltd (BHEL) today?

A: Yes. All the capital goods stocks had seen some buying coming in. Importantly, Siemens saw more of short covering coming in. It was more of this Voltas , BHEL which added open interest (OI) on the long side especially BHEL because it has broken through that channel. It was having a lot of resistance around that Rs 198-200 zone. Now it has broken above that zone. If it sustains above Rs 198-200 today, it should move up to Rs 212-215. It has that power, which can be seen by the long OI built up but traders have to keep a stop loss. I would keep a stop loss of Rs 194 with a target price of Rs 212-215 on the upside.

Q: You are also playing Unitech this morning, what is the strategy there?

A: Midcap real estate is one more sector or one more side of the market, which has seen a lot of long OI being built up. Very clearly, because the market is showing a lot of momentum, so a lot of high beta spaces have started participating now. Unitech is one of them. It has seen 14 percent OI being built up.

For me, more importantly, it has managed to close above that Rs 30 mark, which was acting as a very stiff resistance for it. So, this rally or momentum will continue in Unitech and we may retest Rs 32.50-33 on the upside. Yet it is a high beta counter, so traders should keep a tight stop loss around that Rs 28.50-29 mark, which should be a strong support for Unitech.