The markets to start in the Green Today:
The markets are expected to open in the Green today continuing with the Yesterday's trend. The encouraging news on inflation front, a surge in industrial production in July 2006, and good inflow figures from the FII and Mutual funds, will further push it to higher levels [Yesterday FIIs were net seller]. India’s long-term growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation.
As per data released on Tuesday, India’ industrial production rose 12.4% in July 2006, the highest in a decade. Yesterday Banks rose as falling oil price sparked hopes that the central bank may keep rates steady in October 2006 credit policy. The next major trigger for global markets is the US Federal Reserve meeting on 20 September. Analysts expect the US Federal Reserve to keep interest rates steady when it meets but they would watch an accompanying statement to glean clues on the outlook.
Before Monday’s major correction, the market had witnessed a sustained and steady rise since late July 2006 on the back of pick up in FII inflow. From a low of 10085.91 on 21 July, Sensex had surged 1832.74 points or 18.1% to 11,918.65 on 8 September. A fall in oil price from a record high of above $78 a barrel hit in mid-July also aided the rebound
Yesterday, there were also frantic buying in the pivotals but keep concentrating on the Small and Mid caps only, as yesterday also these two indices outperfomed the Large Cap index. But the large cap counters will pick up steam, as the September quarter results will be much better than the June quarter results. The Sensex has a strong resistance at around 11, 950---11, 975 levels; there will be high volatility at the higher levels.There is unlikely that the markets will close above 12, 000 today, it will need some more sessions to close above this levels--though in the intra-day trade it might cross 12,000.
When this report was being prepared almost all the emerging and Asian markets were trading in the Green. Korean KOSPI, and Singapore's STRITS TIMES, Russia's RTS 1, Brazilian and Mexican Markets were all trading in the Green. Nikkei was trading with huge gains on the news that China might revaluate its yuan soon and this is likely to benefit the Japanese companies [See the previous report on this blog].
Yesterday almost all the Indian ADR's did well. Hence there seems to be no negative news except that Crude oil rising up marginally.
Yesterday most of my old and brand new recommended picks did well:
1.Tilaknagar Industries Ltd recommended second time at Rs.44 crossed Rs.47. Keep holding the counter and take fresh positions if the ur financial health permits.
2. Aembic Glass Ltd hit another buyer freeze---Keep holding the counter. Take fresh positions.
3. Hazoor Media and Power Ltd hit 10th Buyer freeze--->Book some partial profit. Do not take fresh positions.
4. IDBI Ltd recommended yesterday rose by a huge percentage points---Keep holding till the stock enters ur demant accounts. Exit at around Rs.80--Rs.88 on the short term. The good effects of merger will be visible after 2008.
5. California Software Company Ltd which was recommended at around Rs.72--Rs.75 range crossed Rs.85 yesterday---->Keep holding the counter with a SL-->Rs.78. The stock is on an upmove.
6. EMA Ltd which was recommended yesterday morning also did well--Keep holding the counter and do not take fresh positions.
7. Garnet Construction Ltd hit the buyer freeze yesterday--->Keep holding with a SL-->Rs.43.
8. RPG Transmission Ltd recommended last week at around Rs.132--Rs.137 levels moved up smartly yesterday to Rs.154.9 (up 4.91%)--->Keep holding the counter, as the company has an order book position Rs.374 Cr, its YoY growth is around 25 % etc. It is in the businesss of tranmission and distribution of power. Government's thrust on infrastructure development will also help the company in a great way. Look for long term targets at around Rs.210--Rs.250.
9. Mahindra Gesco Developers Ltd recommended at around Rs.424--Rs.450, rose yesterday also to Rs.. 741.(4%). Partial profit booking was advised some days back. Keep holding the rest of the scrips with a SL of Rs.680
10. Hold PBA Infrastructure Ltd, Haldyn Glass Ltd and BSEL Infastructure Realty Ltd
Today's Recommendations:
1. Carol Info Services Ltd at Rs.37.5 with a SL--->Rs.35.
2. Albert David Ltd at Rs.104 with a SL--->Rs.99
Best wishes,
Suman Mukherjee
India.
Note: Today, will be my last trading day, of this week (most likely). I will be leaving for Guwahati today, hence (probably) no updates will be provided in the site [or blog] and in the Yahoo group, SumanSpeaks, till next Monday. But if I can manage to steal some time from my "busy" schedule, then I will try to upload any favourable news [from the sources] from a Cyber Cafe. Happy investing.....
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