Finance News: India Business News

Wednesday, August 1, 2007

Market Forecast for 02.08.07

The market behaved exactly in tune with the global cues and for the time being check out for the global cues for the next day's trade. today's carnage was so brutal, that almost all the investors are trapped or have lost their hard earned money. if the market fails to hold on to 4339.75 in the coming day, we may see another carnage which may take nifty to a level of 4200+. so be cautious always...

Tomorrow, market may open flat or negative with a gap down of 50-75 points (only if the global cues are negative) with high volatility and remain long only above 4406 with SL 4395 for a tgt of 4465-4490. If it remains below 4400 keep short with SL 4412 for tgt 4280-4225. Avoid trading and play safe.......

since the dow is roaring now, please read the forecast as follows: " Tomorrow, market may open flat or positive with high volatility and remain long only above 4406 with SL 4395 for a tgt of 4465-4490. If it remains below 4400 keep short with SL 4412 for tgt 4280-4225."

POST-MARKET ANALYSIS - AUG 01 2007

BEARS TOOK OVER , SENSEX BELOW 15000

share prices suffered a severe setback today, 1 August 2007. After opening weak under the influence of the US markets, the market kept on declining on intense selling pressure. Weak Asian and European markets dampened the sentiment further. The BSE 30-share Sensex declined below the physcological 15,000 mark and the Nifty fell below 4,400.

All the sectoral indices on BSE tumbled with shares from the real-estate pack suffering the most. However, debutante Everonn systems india posted a strong show on day 1, settling at 242% premium over the issue price.

The fall in the market was accompanied by a surge in turnover on BSE. As per market talks, the fall has triggered margin calls,leading to more selling.

The Sensex lost 635.22 points, or 4.08%, to 14,915.77, as per provisional closing. It opened with a downward gap of 207 points at 15,344.02 and kept on falling to touch a low of 14,910.52 at 15:12 IST on intense selling pressure.

The NSE Nifty slumped 186.20 points, or 4.11%, to 4,342.90, as per provisional closing.

Turnover surged in the last hour of trades on BSE. The total turnover crossed Rs 6000 crore and was at Rs 6267 crore compared to Rs 5,075 crore at 14:30 IST.

The market breadth was weak on BSE with 2,147 shares declining as compared to 533 shares that advanced, while 41 remained unchanged.

All the 30-members of the Sensex pack ended in the red.

India’s second largest cement producer ACC plunged 9.62% to Rs 958 on 3.44 lakh shares. It was the top loser from the Sensex pack.

Reliance Energy (down 7.11% to Rs 737), Ranbaxy Laboratories (down 5.33% to Rs 369.10) and Mahindra & Mahindra (down 4.83% to Rs 693.90) were the other major losers from the Sensex pack.

India’s largest truck maker Tata Morors slipped 4.65% to Rs 666.80 after it reported a 22.2% rise in net profit to Rs 466.76 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 4.7% to Rs 6056.82 crore in Q1 June 2007 over Q1 June 2006.

Bajaj Auto, the country’s second biggest two-wheeler manufacturer, shed 2.76% to Rs 2295 after its vehicle sales fell 7% to 1,85,890 units in July 2007 over July 2006.

Reliance Industries, the country’s largest private sector enterprise, lost 5.25% to Rs 1793 on 15.84 lakh shares. As per reports, RIL is among the 11 winners for oil and gas exploration blocks announced by the Australian government. RIL won the bid for an exploration licence in part of the Bonaparte Basin, off northern Australia. It proposes to spend A$29.8 million over the next six years. This includes the cost of drilling one well. Australia awards oil and gas exploration permits depending on the amount of work bidders pledge to carry out.

India's largest aluminium maker Hindalco Industries tumbled 6.41% to Rs 159.20 after said its net profit in the first quarter remained flat at Rs 602.9 crore due to a sharp fall in alumina prices and a customs duty cut that made imported products cheaper. Hindalco’s revenue rose 9% to Rs 4,677.9 crore in Q1 June 2007 over Q1 June 2006. Hindalco is expected to invest Rs 30000 crore over the next five years in various greenfield and brownfield expansion projects, including the Utkal Alumina project in Orissa.

India’s top small-car maker Maruti Udyog lost 2.13% to Rs 825. The company today, 1 August 2007, reported an 18% rise in sales in domestic market to 52,839 units in July 2007 over July 2006. It exported 5,070 units, up from 1,755 units in July 2006.

Though FMCG and pharma shares, considered as defensive sectors in times of steep market correction, declined, the fall in their prices was relatively low. Dr Reddy’s (down 1.85% to Rs 621.80), ITC (down 2.17% to Rs 167), Hindustan Unilever (down 2.47% to Rs 201), and Cipla (down 3% to Rs 184) edged lower.

Even as the market corrected sharply, Everonn Systems India settled at Rs 478.45 on BSE, a 241.75% premium over the offer price of Rs 140. The huge premium on listing was due to 131.47 times subscription of the IPO. The issue received total bids for 52.58 crore shares compared to total issue of 40 lakh shares.

The Everonn Systems India scrip debuted at Rs 245 on BSE and touched a high of Rs 560 and a low of Rs 245 during the day. About 71.77 lakh shares were traded on the counter on BSE. Everonn Systems India is a fully integrated knowledge management, education and training company.

BEST BUY AND BEST SELL

BUY

ABB sl 1125 tr 1172---1198

PFC sl 181 tr 190--194.50

Adaninet sl 326 tr 338--344

Adlab sl 507 tr 521.8---530.90

APIL sl 771 tr 799---822

BHEL sl 1715 tr 1777 --- 1826

Centurytex sl 724 tr 751.8 -- 775.7

EraCon sl 542 tr 559 ---571.8

Fortis sl 91.6 tr 95.8 --98.30

HCC sl 137 tr 142.50 --146

IDEA sl 127.50 tr 132.25 --134.90

HDFCBank sl 1195 tr 1218 --1236

Indiacem sl 217 tr 225 -- 231.50

IVRCL sl 381 tr 398 --409.60

Indiainfo sl 745 tr 768--781.6

Keep close watch on ... UNITECH, NDTV, KLGSYS, RIIL, KOTAKBK, JPASSO.

SELL

Corpbank sell near 364-370 sl 372 tr 358---354.80

IndianB sl 158 tr 147--143

JKLAXMICEM sl 156.50 tr 147.50---143.50

MSKPROJ sell near 109 sl 111 target 100--96

McDwel sell near 1400-1420 sl 1445 tr 1308----1240

BEST BUY

BEST BUY

RCOM (BUY) 561 (Target1) 567 ( Target 2) 573 (Sl) 548

CINEMAX IND (BUY) 147 (Target1) 151 ( Target 2) 153 (Sl) 142

DLF (BUY) 609.5 (Target1) 614 ( Target 2) 620 (Sl) 598

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