Archive for March 2011



MARKET RADAR

Written by HARIKRISHNAN.T
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The Indian equities showed a positive note today also. Nifty closed in 5833.75 and Sensex closed at 19445.22.

Expect a correction soon........

Traders, do not make investments in this state. We will surely get the market in a lower range soon.

market may remain ranged between 18,000 and 20,000 level. Inflation and high crude oil prices are still causes for concern.

I think there could be some profit booking around 5,900 levels.

What is good about this market is about the rollovers because the rollovers are very good.

We are seeing around 58-59% roll over in the Nifty which was almost 48-49% on the same day in last month.

FIIs are supporting our market in a very much. That is the main reason for this positive rally.

On March 30, 2011, foreign institutional investors (FIIs) were net buyers to the tune of Rs 1,043.40 crore in equities. 

They made gross purchase of Rs 3,046.30 crore and gross sales of Rs 2,002.90 crore.

In the month of March so far, FIIs were net buyers of Rs 6,966.70 crore.

The detailed table is given below.













Regards Hari " लोका समस्ता सुखिनो भवन्तु "



STOCK PICKS FOR NEXT WEEK

Written by HARIKRISHNAN.T
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I prefer the following stocks for the next week.

# LIC Housing Finance: In the previous week, the LIC crossed its immediate resistance of Rs.206. I prefer this stock in the 190 levels for short term investors. Long term investors can buy this stock in this level also.

# Yes Bank: This is one of the fast growing banking institution in India. I advise a step by step investment in this. Friday it closed in 299 range. So safe buying level is between 260 and 265. In short term point of view it can come up to 330.

#Idea cellular limited: The safe entry level in this stock is 58. Immediate resistance will be 65. Make investments only in this range.

#Bharat Gears: I think the best entry level in this stock is 50. In long term point of view this stock has a great scope. But when we are dealing with short term, I think sell the share when you get a profit of Rs.4 per share.(In NSE)

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



FANTASTIC WEEK FOR THE INDIAN MARKET

Written by HARIKRISHNAN.T
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This week was really a superb week for the Indian market.,

Today also the 30 shares Sensex closed 464 points up and 50 shares Nifty closed about 131 points in green.

Experts says that 5690 & 5750 level is very crucial for Nifty. So the investors should watch these levels before making investments.

I think the 5750 level is very difficult target to cross in this market scenario.

IT, banking, capital goods are the main sectors for today's rally.

Most of the stocks that I advised to buy crossed the immediate support level in the bullish trend.

Next week definitely we can expect a correction.

Wait for that correction, because now all the bluechips stocks are in a high range. For the short term investors it is not the correct time to buy.

The stocks for the next week will be posted on Sunday. 

Regards Hari "लोका समस्ता सुखिनो भवन्तु"



POSITIVE TREND IN INDIAN MARKET; BUT INVEST CAREFULLY

Written by HARIKRISHNAN.T
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Positive trend in Indian equities for the second consecutive day of trading.

Today 23/03/2011 Wednesday Sensex closed in 18206.16, 217 points up and Nifty closed in 5480.25, 66 points in green.

But invest carefully because I think in the next 10-15 days perhaps market may still try to touch around 5200 range, largely because of the year-end factor and also on global cues.

Second problem is the Crude oil price. if crude remains at current level then the market is unlikely to cross 5600. Only if crude price need to come down for the market to sustain above that level. 

Nifty has key resistance at 5690. But market is nowhere coming near it. 

The short term resistances are about 5550 and once market tries to take that out then we can expect the 5600 levels.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "




WARREN BUFFETT IN INDIA

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The 80-year-old billionaire investor Warren Buffet is on his maiden visit to India. 

Buffet the chairman and chief executive officer of Berkshire Hathaway said India is a 'dream market for investors'. 

"The market is growing, getting more prosperous by the day, businesses are flourishing," he said.

"This is a country (India) on the move", the legendary investor said at an interactive session organised by the Confederation of Indian Industry (CII). 

India offers "all kinds of opportunities," he said.

Praising India and China, he said both the countries were "exploding" in terms of opening up human potential. 

It's not as if the two countries are working harder than before; it's just that they are working smarter, and responding to the needs of their societies, he added.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



STOCK PICKS FOR NEXT WEEK

Written by HARIKRISHNAN.T
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Indian equities closed in red today also. Yesterday also large selling pressure occurred because of RBI decision and volatility in Crude oil price.

Today Sensex closed below 18,000 in 17878.81 and Nifty in 5373.70.

Today I think, RIL is the main reason for the downward trend. RIL closed in Rs.993.00 (NSE) -3.67%

I think the investments in these stocks will be better, especially in the short term point of view.

# V-guard: Today it closed in 158.80. We can make investments in V-guard in the range, especially between 156 and 160. Target of Rs.170 within 1 month.

# Dhanlaxmi bank: Today it closed in Rs.101.60 (NSE). The best entry level will be in the range 98 to 102. I expect a target of 112 within 1 month.

# Tata Global: I prefer investment in Tata global beverages in the range 90 to 92. Today it closed in 97.60. For long term investors this level is also the best levels for investment. But short term investors make investments only in the specified range. Target is Rs.102 within 1 month.

# IDBI bank: IDBI bank is a good option in public sector banks. Best entry level I think is between 130 and 132. Target of 140 within 1 month.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



UNCERTAINTY IN THE MARKET

Written by HARIKRISHNAN.T
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In my view this week Indian equities are showing uncertainty.

Because all of us expected a correction in the market on Monday because of the crisis of Japan and because of the crude oil issues. All markets except Indian market showed negative trend, especially European and Asian markets.

But yesterday market closed in red.

Today sensex closed 191 points and nifty 61 points in green.

Tomorrow there is a chance for a correction in the market especially in the Banking sector. Because the RBI policies for controlling the inflation will be decided tomorrow.

I think tomorrow and Friday will be the best time for buying. Be careful and make correct decisions.

From the Banking sector I'm positive on Yes bank Federal bank and IDBI bank in short term point of view. 

SIB Canara bank SBI SBT Axis bank in the long term point of view. 

Japan’s Nikkei bounced back with 5.7% gains after witnessing a sharp downturn in the previous sessions, which was caused by natural disasters and nuclear explosions. 

Experts says that keep an eye on Crude oil prices. Market will remain volatile for more time, till we have clarity on how this oil crisis really pans out

Raamdeo Agarwal of Motilal Oswal Financial Services says it is quite possible that the market might see some surprisingly new low before it sees a high. "Nifty, in all probability, will hit 5,000 before touching 6,000," (Reference: Moneycontrol.com)

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



PERFORMANCE ANALYSIS OF INDIAN EQUITIES IN THE PREVIOUS WEEK.

Written by HARIKRISHNAN.T
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Let’s closely evaluate the performance of Indian equities in the previous week.

Monday (March 07, 2011) Sensex opened in 18361.65 and closed in 18222.67, 263.78 points in red.

Same trend occurred in Nifty also. It closed 75.60 points in red.

The main reason for the negative trend was the problem of government with the DMK.

Large selling pressure occurred because of the instability of government.

The high price of crude oil also influenced the market.

Tuesday (March 08, 2011) was positive for Indian market.

The problems with the DMK were solved and the decision made by OPEC nations to increase the production of oil influenced the investors and FII.

Sensex closed in 18439.65 and Nifty in 5520.80

Wednesday (March 09, 2011) also Equities showed a positive trend.

Sensex closed 30 points in green and Nifty 10.2 points in green.

Anil ambani’s Reliance communication’s share price closed in 99.35 (9.36% hike).

The news that the company will get Rs. 87,000 Crores as loan from China development bank positively taken by the investors.

Thursday (March 10, 2011) Sensex closed 141.97 points and Nifty 36.60 points in red.

The main reason for the downward trend was the crude oil price.

The positive news about Inflation and Importing cannot hold the market.

The downward continued on Friday (March 11, 2011) also.

The earthquake and tsunami occurred in Japan affected the world market and Indian equities.

The sensex closed 153.89 points and Nifty 48.95 points in red.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



BEST BUYING LEVELS

Written by HARIKRISHNAN.T
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Thermax: 
The best entry levels for Thermax are 590 and 524. 
The immediate resistance is 729.

DLF:  
The infrastructure and realty sector are showing positive trend. 
I think the support level1 for DLF is 214 and support level2 is 202. 
The profit should be booked in the range of 240.

Essaroil: 
The safe entry levels are 114 and 102. 
The resistance is at 133.

Unitech:  
I advice unitech only in the longterm point of view. 
The support levels are 31 and 26. 
41 is the immediate resistance.

NIIT Tech: 
The entry levels are 178 and 164. 
Short term investors should book their profit at 200 levels.

LIC HF:  
The Company is fundamentally really strong and announced a good result. 
The best buying levels are 190 and 174. 
The immediate resistance is at 206. 
If it breaks that support, it can come up to 226.

RIL: 
The suitable levels for investment are 940 and 902. 
Immediate resistance is at 1040.

IDBI Bank: 
The investment in banking sector should be very careful.
Because there is a meeting by RBI this week 
So there is a chance for an immediate correction. 
The safe levels for buying are 130 and 121. 
The major resistance is at 157.
Ashok Leyland: 
The safe levels for investment are 49 and 42. 
Profit booking should be done at 60.

Uco bank: 
The support levels are at 92 and 86. 
The resistance is at 109.

Suzlon: 
I advice suzlon only in long term point of view. 
The best entry levels I think is 45 and 41. 
Immediate support is at 54. It can hit up to 60.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



INDIAN EQUITIES CRASHED BECAUSE OF GLOBAL ISSUES

Written by HARIKRISHNAN.T
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It is a tragic end to the trading week so far.

The Indian and Asian market crashed because of the negative world market trends and because of the earth quake in Japan.

Sensex now about 200 points in red and Nifty about 64 points in red.

Nifty try hard to maintain the support level of 5400.

I think if the same situation is lasting for Monday also, then it is the best opportunity for short term investors.

Short term investors invest only on active stocks only.

Lets wait for Monday's performance.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



STOCKS FOR THIS MONTH

Written by HARIKRISHNAN.T
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I prefer the following stocks especially for the month of March because the dividend yields of these companies are pretty good.


Dividend yield: The dividend yield or the dividend-price ratio on a company stock is the company's annual dividend payments divided by its market cap. For example the price of ‘A’ is Rs.20 and dividend yield is 5% whereas the price of ‘B’ is 40 but the dividend yield is 2.5%, if all the other factors are same, the investors prefer ‘A’ to ‘B’


HEG LIMITED (Rs.201.00): HEG Limited is the largest producer of graphite in India. 

The annual production of the company is about 66,000 metric tons. Face value of the share is Rs.10. The dividend yield is 5.1%


NIIT TECHNOLOGIES (Rs.186.00): NIIT Technologies is software firm that makes various kinds of different softwares to various sectors such as banking and financial services, travel and logistics manufacturing, retail sector etc. 

The face value of the share is Rs.10 and Dividend yield is 3.82%

                  Year
              Percentage
             March 2010
                   70
             March 2009
                   65
             March 2008
                   65
             March 2007
                   65


BAJAJ HOLDINGS&INVEST LIMITED (Rs.754.95): This Company is actually de merged from Bajaj auto. 

This share is included in the NBFC (Non Banking Financial Companies) category. Face value is Rs.10 and Dividend yield is 4.07%

Year
 Percentage

2010
300
2009
 100
2008
 200
2007
 400
Regards Hari " लोका समस्ता सुखिनो भवन्तु "



MARKET WATCH

Written by HARIKRISHNAN.T
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It was a fantastic week for market. The positive things in the budget positively affected the market. But the market closed in red on Friday because of the global issues and the increase in the crude oil price.

In this post I'm just giving a model portfolio that investors can make use in the upcoming weeks.

Diversify your funds in different sectors so that the risk factor can be reduced.

Short term investors must be very careful in this situation because if the crude oil price again go up, then definitely there is a chance for a correction in the market.

I think the immediate support level of market in the next week will be 5600 and the next support level will be 5680. So it is advised that short term investors should do profit booking in these range.

In auto mobile sector I prefer the following stocks.

> Mahindra & Mahindra: the best entry level for this is 640 and 600. Now the stock is in the range 676.

> Maruthi and Hero honda are the next best option in this sector.

> I prefer Tata motors, but since the budget is positive for auto mobile sector, the current level of tata motors is high. So wait for a correction in the market.

In Banking sector I prefer

> IndusInd bank: The best level for buying is 219 and 203. 

> SIB: The immediate resistance is 23. The best entry levels are 19 and 17.

>SBI: The support level for SBI is 2589 and 2464 and the resistance level is 2800.

> Central bank: This is one of the good share I prefer for long term investment. The current level is 157 and the resistance level is 164.

In IT sector I prefer

> TCS: It has strong fundamentals. Safe entry level is 1090 and 1044. 

>KPIT: The stock is good to buy in the range 144 and 130.

In power sector I prefer Powergrid corporation and PTC. PTC is better to buy in the 81 and 73 levels.

In the Metal sector JSW Steel and Tata steel. 921 and 841 are the 2 major support levels for JSW steel.

So make a portfolio that contains stocks from different sectors.

There is a meeting by RBI on March 17. This meeting will definitely affect the market mood, because of the global crisis and inflation. So I advise short term investors should take a strategy of step by step investment. Watch the global trends especially the crude oil price.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "