Friday, September 14, 2007

Sensex may touch 17500 by Diwali: JM Financial

Atul Mehra, ED & Head-Capital Markets of JM Financial said that they are bullish on power, power transmission and distribution, capital goods, construction, alternate fuel and iron.

Mehra added that they see the
Sensex at 17,500 by Diwali.

According to him, the concerns on crude and interest rates remain. The
Fed cut by 25 bps could see cheer in the equity markets, stated Mehra. There are enough non-US funds moving around in markets to absorb shocks.

Excerpts from CNBC-TV18's exclusive interview Atul Mehra:

Q: We are within striking distance of an all-time high, could we go much higher from here, if so how much?

A: Well we have not seen highs being created; we are going to see newer highs being created. My personal guess is you will see the index somewhere in the region of 17,500 closer to Diwali time. The fundamental reason that gives me motivation to believe that is going to be achieved is liquidity. The same old argument that we have been using for three years still continue to hold true.

Q: Fundamentally, there is a wee bit of a crack coming on the windscreen. You have this IIP number, which is not looking too good. Globally you could see a slowdown because credit is tight. So, would you say that this liquidity argument could get punctured?

A: If you want to add a slight bit of crack, add two more cracks to that. One is the oil price trading at USD 80 a barrel and interest rate, which still continues to trade in the vicinity of 10.5% to 11.5%, which is still high. These are what I call cracks, which are there. The question out over there is all these have been factored into our system, markets are taking note of it and right now corporate India may have given us enough confidence and made us believe that despite all these cracks and uncertainties their numbers will be very much on track and their growth will not be hampered in quarters and years to come ahead.

Q: You are looking at 17,000 by Diwali and perhaps a continued high, where should investors be putting their money sector-wise?

A: Let me give you five or six sectors that I am personally very excited about. Slot numbers one, two and three have been taken up by
power sectors. We are very bullish on power, power transmission, and power distribution. So, all the three sectors in one bucket is the most exciting sector. We are bullish on the construction sector; we are bullish on capital goods as a sector. The two other sectors that are our favourites would be the opportunistic sectors and one of them would be the alternate fuel sector. This is a very interesting sector and I am pretty much excited about this sector.

The second sector, which is again very interesting, would be the resources sector, which is what I call as the metal resources sector, basically back into the iron ore or manganese ore, those kinds of companies. This is a very interesting sector and I would urge investors to look into that.
Source:moneycontrol.com

Markets Today

The markets ended flat after opening on a strong note. They could not sustain their position at the higher levels as profit booking set in during the later part of the day. Auto, FMCG, pharma and IT stocks are under pressure. The fall comes in despite some strong Asian cues. At this point all eyes are on 18 September for Fed decision, analyst are expecting 25 bps cut.
The broader markets underperformed the benchmark indices and closed with moderate losses.
Pharma, IT and auto indices were among the top losers among the BSE indices. Select
banking, metal and realty stocks held out their gains.
Top gainers on the indices are ICICI Bank, HDFC Bank, L&T, MTNL, Sterlite Ind, Tata Steel and ITC .
Top losers on the indices are NTPC, Reliance Communication, ACC, Sun Pharma, HCL Tech, Maruti Udyog and HUL.
Sensex was down 10.64 points or 0.07% at 15603.80, and the Nifty down 10.95 points or 0.24% at 4518.00.
About 1106 shares have advanced, 1850 shares declined, and 69 shares are unchanged.
The BSE Midcap Index ended at 6,897.00 up 50 points or 0.72%.
The BSE Smallcap Index ended at 8,572.76 up 66 points or 0.8%.
The BSE Capital Goods Index was closed at 13,701.56 down 0.2%. Lakshmi Machine, Crompton Greave, Greaves Cotton, AIA Engineering, Alfa Laval closed lower.
The BSE Auto Index closed closed at 4,885.47 down 1%. TVS Motor, Escorts, Cummins, Hind Motors, Maruti Udyog ended in the red.
The BSE Metal Index closed at 11,979.96 up 0.5%. Shree Precoated, Jindal Saw, Sterlite Ind, Mah Seamless advanced.
The BSE FMCG Index closed flat at 2,072.81. Tata Tea, United Brewerie, GlaxoSmith Con, Bata India ended in red.
BSE
Oil and Gas Index closed at 8,387.22 up 0.1%. Reliance Petro, Reliance closed in green.
The BSE IT Index closed at 4,449.14 down 0.8%. Mphasis, Financial Tech, Wipro, HCL Tech closed lower.
The BSE Bankex was up 0.6%. ICICI Bank,HDFC Bank, Karnataka Bank, Kotak Mahindra closed higher.
The NSE cash turnover was at Rs 12490.58 crore and the NSE F&O turnover was at Rs 47177.37 crore. The BSE cash turnover was Rs 6474.89 crore. Total market wide turnover was at Rs 66142.84 crore.
Source:moneycontrol.com

Intraday Calls for 14th September

Market is likely to open with gap up. Some profit booking can be seen in second half. Not much gain at closing expected.

Buy for Intraday:

KPIT (141) Target 148-150 SL 138
Bayer Corp (333) Target 345 SL 330
Ansal Housing (207) Target 215 SL 204
IDBI (134) Target 138-140 SL132
Vivimed Labs (163) Target 170 SL 160
HOPFL (268) Target 280 SL 265
IGL (115) Target 122-125 SL 113
Ansal Buildwell (86) Target 90+ SL 84
Rolta (470) Target 480 SL 466
United Phospho (358) Target 365-368 SL 355

Others: Nitin Fire (458), GIC Housing (56), Manglore Chemical (36), Bhagyanagar India (49), Tata Power (751).

Good Luck

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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