Regular daily round up of the Indian Stock Market News, Analysts Views, Tips and Recommendations:-
Stocks to pick: ABB, Neyveli Lignite, Unitech, Opto Circuits, Ceat
http://economictimes.indiatimes.com/articleshow/2892778.cms
ABB
Research: Merrill Lynch
Rating: Buy
CMP: Rs 1,103
Neyveli Lignite
Research: Indiabulls Financials
Rating: Hold
CMP: Rs 110
Unitech
Research: CLSA
Rating: Outperform
CMP: Rs 267
Opto Circuits India
Research: Networth Stock Broking
Rating: Buy
CMP: Rs 326
Ceat
Research: Edelweiss
Rating: Buy
CMP: Rs 97
Stock Picks
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34849
Airtel
Current price: Rs 777.75
Target price: Rs 800
Cipla
Current price: Rs 206
Target price: Rs 225
Praj Industries
Current price: Rs 111
Target price: Rs 101
Reliance Petroleum
Current price: Rs 151
Target price: Rs 140
Tata Motors
Current price: Rs 650.50
Target price: Rs 675
Don't drive away blue-chips stocks
The stock market has shed an unthinkable one-third of its value from its peak in January. At such a time, retail investors need expert advice more than ever before.
However, experts always try to bring the real economy into the picture, as they believe the market will catch up with the former sooner or later. However, there’s another school of thought that believes the stock market has a mind of its own and doesn’t follow the trend in the real economy. By real economy, we mean corporate earnings.
This confounds retail investors who can’t figure out whom to follow. However, we at ETIG believe that long-term investment in equities is not a catch-22 situation. It can be as simple as sticking to bluechip stocks, i.e. companies which are market leaders and have a long track record of consistent revenue and profit growth.
Go to http://economictimes.indiatimes.com/articleshow/2892800.cms to read the whole article
Indicators pointing towards market stability
The stock market appears to have neared its bottom and further downside looks limited. Though the situation remains volatile, most of the current indicators are pointing towards stability. The long-term outlook appears clouded, but with a positive undertone. India Inc’s Q4 results will give a clear picture as to what lies ahead...
Go to http://economictimes.indiatimes.com/articleshow/2892802.cms to read the whole article
Brokers to give daily margin info to clients
Stock broking firms will have to notify clients about their (the client’s) daily margin positions from April 1, according to a Securities and Exchange Board of India (Sebi) directive. The move follows a spate of complaints from investors that brokers have been liquidating their positions citing insufficient margins, even though their margin accounts had enough funds
Total margin deposit up to day T-1 (including break-up in cash, fixed deposit, bank guarantee and securities)
Margin utilised up to the end of day T-1
Margin deposit on day T (including the break-up information)
Margin adjustments for day T
Margin status (balance with the member/due from the client) at the end of day.
More at http://economictimes.indiatimes.com/Brokers_to_give_daily_margin_info_to_clients/articleshow/2892889.cms
Year-end blues: Banks rush to sell bad loans
http://economictimes.indiatimes.com/News_by_Industry/Year-end_blues_Banks_rush_to_sell_bad_loans/articleshow/2892708.cms
With the fiscal year coming to an end, several banks are looking to sell their bad loan portfolio to strengthen their balance sheets. Market sources said while some banks are entering into one-to-one deals, others are considering an auction of stressed assets. Banks planning an auction include State Bank of India (SBI), Allahabad Bank (AllBank) and UCO Bank.
While SBI and AllBank are keen to sell Rs 200 crore of stressed assets, UCO Bank wants to dispose loans with face value of Rs 260 crore. All three auctions are set to take place before the end of this year. Kolkata-based Industrial Investment Bank of India (IIBI), on the other hand, plans to sell off its assets, both performing (Rs 870 crore) and non-performing (Rs 200 crore), in April.
Rising risk aversion to keep markets on edge
http://economictimes.indiatimes.com/Market_News/Risk_aversion_to_keep_mkt_on_edge/articleshow/2892704.cms
The better-than-estimated quarterly earnings of some top US investment banks last week may have slightly eased fears and given a fillip to the US markets on Friday. Yet investor sentiment remains nervous. Analysts maintain that overseas investors are likely to book profits on every rebound here on, due to rise in ‘risk-aversion’ to shares of emerging markets, including India.
Traders are unlikely to take lightly the news of Monsoon Capital, a $1.2-billion hedge fund, faring badly, as a result of the meltdown in Indian equities in the past couple of months. While Monsoon’s exposure to Indian equities may not be as significant as compared to other major funds, there are concerns that the news may trigger more redemptions from hedge funds with higher exposure to India. One of Monsoon’s funds has dropped roughly 45% since January
Nifty may see more volatile trading sessions
http://economictimes.indiatimes.com/Market_News/Nifty_may_see_more_volatile_trading/articleshow/2892743.cms
The Nifty is making higher bottom and lower top formation so far. Any breach of its previous low at 4,448 will extend the cyclical bear market further. Any breach of 4,002 will change the cyclical bear market into structural bear market. Since March 3, the Nifty is facing strong resistance with 5- & 10-day simple moving averages (SMA). Any decisive closing above these levels will be the first indication of a short-term uptrend.
Week Ahead: Waiting for global triggers
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34849
| Outlook: By breaking support at 4,600, the market signalled that it could drop quite a bit more. The 4,500 support held and upside resistance was visible at 4,750. Next week will see a lot of daily volatility and the index may swing between 4,500-4,800. Breakouts will depend on global triggers. |
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| Rationale: As this is being written on March 20, there are two extra sessions in the US where the impact of the latest Fed cut may cause a revival. Plus the local futures and options (F&O) settlement will guarantee daily volatility – expect at least one Nifty 200-point session. |
Counter-view: The derivatives position suggests that there will be a modicum of short-covering and also a sharp increase in volumes as traders try to pack in carryover within three sessions.
Bulls & bears: Every sector has lost ground in the past week and in some senses, every sector is oversold. Financial stocks, metals and real-estate counters were among the biggest losers while pharmaceuticals, select FMCGs and some information technology (IT) stocks held more defensive ground.
Sensex at 19K by year-end: Brokers
| http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34850 A majority of brokerages expect the bellwether Sensex to hover at 19,000 by the end of this calendar year, according to a poll conducted by Business Standard among top local brokerage houses. |
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| The figure is significantly lower than last December when most brokerages had expected a 15 to 20 per cent return from 20,000 levels at the end of 2007. The Sensex has dropped over 25 per cent from its January peak of 20,800. |
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| Of a sample of 20 brokerages, 60 per cent feel some pain is left in real estate and half feel capital goods may underperform over the next couple of quarters. |
Tech View: Relief rally in the offing
http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=34838
The Nifty almost revisited its January lows of 4,450 before bouncing back a wee bit. The index slumped to a low of 4,469, recovered to a high of 4,718 and eventually ended with a loss of 172 points at 4,574.
The index broke its yearly S3 (support 3) level of 4,500 on an intra-day basis twice in the week, but somehow managed to close above it. Going by the current trend, the chances of the index testing lower levels of 4,100 and 3,500 remain high.
The charts are indicating an oversold zone. Hence, a significant pullback cannot be ruled out. However, the rally would just be a relief rally and the markets may drop again.
The significant indicator is the Stochastic Slow, which is in a highly oversold zone. The per cent D value is 9 and the per cent K is at 7.4. There will be a buy confirmation once the per cent K crosses the per cent D level.
RK
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