What happned in Indian Markets this week ?

The Full week was dull almost every day we saw a red stroke or a downtrend but an excellent pulback of 464 points on SENSEX i.e 5.5%. on Friday.

The whole week markets were mainly down because of bad global cues.

Inflation in single digits thats cool.

Crude Oil sliped below 50$ before recovering. Thats also good.

The bad news is worlds second largest economy JAPAN slips in recession.

Germany went in recession last week.

And the same job cuts news continue to rule.

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BNP Paribas maintains ‘buy’ rating on Maruti Suzuki India

Maruti Suzuki India 

CMP: Rs 511.35 

TARGET PRICE: Rs 760

BNP Paribas has maintained a ‘buy’ rating on Maruti Suzuki India even while lowering the target price from the earlier Rs 840 to Rs 760. The foreign broking firm expects the company to regain market share with the launch of A-Star. “We believe the new A-Star will help Maruti regain most of its 230bp market share loss in the compact car segment,” says the report. 

The report also explains that the newly-launched A-Star has “focused on value, with feature-rich offerings and high fuel efficiency, rather than on performance.” The A-Star and the impending launch of the Splash in 1QFY10 will improve Maruti’s position in the A2 segment, where it has a 57% market share but had not launched any new products in the past two years, the report goes on to add.

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ULJK Securities puts ‘buy’ on Bombay Rayon Fashion

Bombay Rayon 
CMP: Rs 154.65 

TARGET PRICE: Rs 263

ULJK Securities has a ‘buy’ rating on Bombay Rayon Fashion as, according to the broking outfit, the company is increasing its production capacity and also has a diversified market presence. “The company has taken steps for expansion in Maharashtra, which include setting up of the garments manufacturing capacity of 100,000 pieces per day and of fabrics capacity of 180 mn mtr/annum,” says the report. 

The company also has a good presence in the US as well as in Europe, it adds. The report also highlights the point that while the company’s garments are sold in the offshore market, its fabrics are sold in the domestic arena. According to the broking firm, at a CMP of Rs 156, the stock discounts at an FY09E EPS of Rs 26.80 by 5.8 times and an FY10E EPS of Rs 43.80 by 3.5 times.

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US Banking majors are busy cutting jobs.

Nows its the turn of Bank of New York Mellon after Citi Bank.

Bank of New York Mellon is planning to cut 1800 jobs blaming weak economy.

While Citigroup INC said it will cut 53,000 jobs.

More over Citi Banks Indian CEO resigned and is replaced by Mark Robinson.

Whats Next ? Who knows ?

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SEBI finds no manipulation in ICICI stock prices.

Do you remember ICICI banks gtear fall.

It had many huge intraday falls , the one of 25% , who can afford to forget it.

ICICI was angry and approached SEBI for investigation.

The bank had in September sought an investigation by SEBI into its share price movement, alleging that rumours were being spread about the bank to deliberately bring down its stock price. The ICICI scrip had started to tank on news of its exposure to Lehman bonds, and although the bank’s CEO had announced that its fundamentals were sound, the fall was not arrested.

SEBI analysed the trading pattern of the shares of ICICI Bank for the period September 8 to October 10, 2008 when the scrip fell 49.52 per cent, from Rs 720 to Rs 363.65.

“SEBI did not find evidence of manipulative trading in the ICICI Bank shares during the period referred,” said the release.

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PM: global institutions must be representative

India will emerge stronger from the global economic crisis and global institutions must be made more representative of developing nations, Prime Minister Manmohan Singh said on Friday.

In speech to a conference, Singh said the world had become more interdependent and the voice of developing nations must be heard in the high councils of global decision-making.

"Global problems require global solutions. This is the most important lesson of the past century for the present century," Singh said.

"But global institutions of governance must be made more inclusive and representative," he said, according to a text of the speech.

Singh took part in a summit in Washington last weekend with leaders of the Group of 20 nations to discuss how to tackle the crisis which has shaken financial markets worldwide, frozen credit markets and pushed some major economies into recession.

He said the G20 meeting was the first time developing nations' voices had been heard with respect in a global forum and said there was agreement that recourse to protectionism was no remedy.

Indian authorities are struggling to shore up growth against the impact of the global financial crisis and have taken a host of steps including sharp rate cuts to fend off damage to the broader economy.

Singh said the world was in a deep crisis but despite an adverse international environment India had the capacity to sustain a growth rate of about 8 percent.

"We will, through the use of fiscal policies, through the use of monetary policies, through the use of public investment, ensure that the shortage of demand coming as it is from the global slowdown is neutralised to the maximum possible extent," he said.

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SEBI has no plans to stop short selling says C.B.Bhave

The Security and exchange bord of India (SEBI) commented that it has no plans to put a ban on short selling.

Many markets have put up an ban on short selling in West but SEBI has no such plans.

It aslo added that SEBI and stock exchanges cannot predict the market situations.

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Sensex surges over 300 pts on PM’s assurance.

The 30-share index, which opened higher by 160 points, surged further by 323.93 to 8,774.94 points despite weak global markets.

The benchmark Sensex soared by over 320 points in late morning trade on Friday after Prime Minister Manmohan Singh assured that country will sustain a growth rate of 8% despite the adverse impact of the global financial crisis.

The 30-share index, which opened higher by 160 points, surged further by 323.93 to 8,774.94 points despite weak global markets. The BSE barometer had tanked over 2,100 points in the last seven trading sessions.

The wide-based National Stock Exchange’s Nifty moved up by 95.25 points at 2,648.46 points.

“We have the ability to sustain a growth rate of about eight per cent. And we will do so,” the Prime Minister said at the Hindustan Times Leadership Summit here.

Marketmen said sentiment turned better after government data showed inflation declined by 0.08% to 8.90% during the week ended 8 November.

Country’s most valuable company Reliance Industries gained Rs19.40, or 1.83%, at Rs1,078, while ONGC stocks gained Rs24.50, or 3.77%, at Rs674.90 mainly contributed rise to the Sensex.

SBI stocks gained Rs26.75, or 2.45% at Rs1,119.30.

Other gainers were BHEL, Larsen and Toubro, Bharti Airtel, DLF Ltd, Grasim Industries, Maruti, Mahindra, Mahindra and Sterlite Industries. Tata Power and Tata Consultancy. - Mint

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Realty stocks under pressure on liquidity concerns.

Despite the broadbased rally, realty stocks failed to pick up steam on Friday as investors resorted to heavy selling on sustained concers about availability of funds. Industry leaders Unitech and DLF continued to crumble. 

Market analysts said selling pressure went up after reports that DLF has postponed residential, commercial and hotel projects due to low demand. The real estate developer said it would terminate services of some of company's employees and stop working on some of its projects. Unitech and Parsvnath Developers also retrenched their staff last month in line as part of the cost cutting drive due to global meltdown. 

"Real estate is likely to underperform for the next 3-4 quarters. The interest rate for the realty firms as well as consumers has to come down to boost volumes. We estimate that the volumes won't go higher unless the prices correct by 30-40 per cent. But the builders are adament on the prices. However, according to the economic cycle, the prices have to go down because there is no affordability in the market," said Shailesh Kanani of Angel Broking. 

"Also, some builders expanded largely expecting the bull run to continue and bought land at exhorbitant rates and now are stuck in the change of economic cycle. We expect almost a 50 percent degrowth in the sector over the next 2-3 quarter," he added.

Rising borrowing costs, surging real estate prices and liquidity crunch ended the rally in the country's property market on the deepening global financial crisis. 

At noon, the BSE Realty Index fell 5.09 per cent with Unitech falling 10.53 per cent and DLF losing 4.24 per cent. Among other players, HDIL shed 5.88 per cent, Omaxe fell 4.44 per cent, Ansal Infrastructure was down 4.82 per cent. 

Meanwhile, Bombay Stock Exchange's Sensex rose 3.41 per cent or 288 points to 8,739.42 and National Stock Exchange's Nifty climbed 3.45 per cent or 88.1 points to 2641.25. - ET

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Market outlook and day trading ideas for 21th Nov.

Indian markets despite of good inflation numbers cracked badley due to global cues.

US markets yesterday saw a worst hit Dow down below 7550 points.

Europe was down over 3%.

Asia has opened weak.

Expect a gap down to flat opening in Indian Markets.

The support for the Sensex is 8649-8393 and the resistance to the up move is at 8775-8870

Nifty: (2553) the support for the Nifty is at 2500-2464 and the resistance to the up move is at 2754-2860

Day trading ideas.

LNT

Buy above 710 for targets of 716 & 723

Sell below 702 for targets of 696 & 690

Praj Ind.

Buy above 54.25 for targets of 56.30 & 58.80

Sell below 51.75 for targets of 49.10 & 47.90

Unitech

Buy above 35.60 for targets of 36.90 & 38.70

Sell below 33.80 for targets of 32.50 & 30.70

Happy Investing.

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