| FAVOURING BULLS | | | | Broad based participation in Small cap and Mid cap stocks | | | FAVOURING BEARS | | | | F & O Expiry | | | | | | | STOCKS TO LOOKOUT FOR | | | | Nucleus Software Exports Ltd (Rs.952, Buy) bagged an order for it’s software, FinnOne from Nigeria based United Bank for Africa. The Bank has over 500 branches.
| | | Larsen & Toubro Ltd (Rs.1693.20, Buy) has bagged a contract valued at $250 million from Maersk Qatar and is the largest overseas contract for the company. | | |
| MARKET - WHAT TO EXPECT? |
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The markets started on a high but could no sustain the momentum it witnessed on Friday. The Sensex was firm through the day and started showing signs of weakness in the afternoon as profit booking at higher levels capped gains in the index heavyweights. The Sensex settled 47.35 points up at 14,402.90. The Sensex opened at 14,436.18 and touched intraday high and low of 14,479.18 and 14,372.07 respectively. The market breadth almost slackened in comparison to Friday’s session, with broad participation from small caps and mid cap stocks. The BSE witnessed trurnover of Rs.4,204 crore. We believe that markets will witness choppiness until there is some clarity on what the Government is likely to do in the Budget. The forthcoming expiry of derivatives contracts may keep the investors at bay. However, any fall in the index heavyweight stocks can be used as an opportunity for value buying. |
| US MARKET |
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| The US Markets remained closed on Monday. |
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| MARKET PERFORMANCE |
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| Index | Country | Current Value | Change | Change
(in %) | | Indian Market | | Sensex | India | 14402.90 | 47.35 | 0.33 | | Nifty | India | 4164.55 | 18.35 | 0.44 | | European Markets | | CAC 40 | France | 5739.90 | 26.31 | 0.46 | | DAX | Germany | 6987.08 | 30.01 | 0.43 | | FTSE 100 | United Kingdom | 6444.40 | 24.90 | 0.39 | | Asian Markets | | Jakarta Composite | Indonesia | 1799.29 | 4.93 | 0.27 | | Nikkei 225 | Japan | 17940.09 | 64.44 | 0.36 | | Straits Times | Singapore | 3236.93 | (15.56) | (0.48) | | KOSPI | South Korea | 1448.81 | 5.18 | 0.36 | | Taiwan Weighted | Taiwan | 7809.45 | 0.00 | 0.00 | | SET Composite | Thailand | 685.38 | (2.63) | (0.38) | |
| Source: Bloomberg |
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| Market | Advances | Advance % to Total | Declines | Decline % to Total | Unchanged | Unchanged % to Total | Total | | BSE | 1326 | 49.6 | 1294 | 48.4 | 54 | 2.0 | 2674 | | NSE | 498 | 47.5 | 534 | 51.0 | 16 | 1.5 | 1048 | |
| Source: BSE & NSE |
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| FII Investment
(In Rs. Crore) | Gross Purchases | Gross Sales | Net Investment | | 19-Feb-07 | 1,393.4 | 1,399.2 | (5.8) | |
| Source: NSE |
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| NEWS |
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| • | Parsvnath Developers Ltd (Rs.330.45) has been allotted a 72-acre plot in Noida. The plot has been allotted under a group-housing scheme and the company is mulling an investment of up to Rs.175 crore over a period of three years for developing the land.
| | • | Biocon Ltd (Rs.462.35) is considering acquiring as much as 50 acres of land in Jawaharlal Nehru Pharma City in Visakhapatnam for its future manufacturing expansion needs. The proposed investment is likely to be in the zone of Rs.500 crore and will be spread over five years.
| | • | JSW Steel Ltd (Rs.450.70) has shut down one of its blast furnaces for 30-60 days for repairs after a fire broke out and damaged the furnace. The furnace constitutes 20 percent of the company''s total hot metal capacity. However, the consequential financial losses due to this shut down have been insured.
| | • | Andhra Pradesh Paper Mills Ltd’s (Rs.104.55) board of directors has approved issue of equity shares on preferential basis to promoters for raising up to Rs.20 crore. This is subject to the approval of shareholders.
| | • | Ceat Ltd (Rs.143.05) plans to make an investment in the range of Rs.70-80 crore to set up a plant to make 30-40 tonnes a day of tyres for tractors, excavators, cranes and for other specialised applications. The investment will add higher-margin specialised tyres to its product portfolio and is an attempt to improve profitability and soften the impact of rising rubber prices. | |
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| BOARD MEETINGS |
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| Scrip Name | Meeting Date | Purpose | | Hindustan Lever Ltd | 20-Feb-2007 | Accounts | | Pyramid Saimira Theatre Ltd | 20-Feb-2007 | Miscellaneous | | Bosch Chassis Systems India Ltd | 20-Feb-2007 | Accounts | | Associated Ceramics Ltd | 20-Feb-2007 | Miscellaneous | |
| Source: BSE |
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| DERIVATIVES |
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The February contracts are trading at a premium of 11.9 points at 4,176.45 over the spot markets close of 4,164.55 ahead of its expiry this week. The F & O segment has witnessed lower notional turnover at Rs.32,491 crore with the March contract trading at a premium to the spot market.
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| Nifty Futures as on 19-Feb-2007 | | Expiry Date | High Price | Low Price | Prev Close | Close | Number of contracts traded | Turnover
(In Rs. crores) | | 22-Feb-07 | 4183.40 | 4160.10 | 4176.45 | 4176.45 | 147,832 | 6,172 | | 29-Mar-07 | 4183.00 | 4161.00 | 4175.80 | 4175.80 | 46,299 | 1,933 | | 26-Apr-07 | 4195.00 | 4168.00 | 4178.30 | 4178.30 | 417 | 17 | |
| Source: NSE |
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| TRADE STATISTICS FOR 19-Feb-2007 | | Product | No. of contracts | Turnover
(In Crores)* | | Index Futures | 195,490 | 8,176 | | Stock Futures | 517,953 | 19,668 | | Index Options | 89,468 | 3,732 | | Stock Options | 23,535 | 916 | | Interest Futures | 0 | 0 | | F&O Total | 826,446 | 32,491 | | *Notional Turnover in case of options | |
| Source: NSE |
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| FII DERIVATIVES STATISTICS FOR 19-Feb-2007 | | Product | Net Investment
(In Crores) | Open Interest
(In Crores) | | Index Futures | 437 | 13,920 | | Index Options | 108 | 7,870 | | Stock Futures | 117 | 18,565 | | Stock Options | (0) | 36 | | Total | 661 | 40,392 | | *Notional Turnover in case of options | |
| Source: NSE |
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RESULTS
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| Sr.
No | Company Name | Scrip
Code | Net Sales (Rs in Crore) | PAT(Rs in Crore) | | Q3FY
O7 | Q3FY
06 | Change
% | Q3FY
O7 | Q3FY
06 | Change
% | | 1 | Isibars Ltd | 513361 | 23.47 | 12.82 | 83.1 | (2.33) | (4.07) | 42.7 | | NA = Not Applicable | | | Source – BSE & CMIE | |
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| TECHNICAL ANALYSIS |
| The Advance / Declines continue to be in the positive territory. However, it has weakened considerably in comparison to the Friday’s session. The Sensex also was sluggish in the later part of the day and the markets could be in for choppiness ahead of the F & O expiry. The Sensex could see resistance at 14,464 on the upside, while support can come in at 14,357 on the downside.
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| Note The above recommendations are valid only for the day and have no correlation to our medium/long term perspective. Disclaimer: This report is prepared exclusively for Reliance Money by SAANS. The information and opinions contained in the document have been compiled from sources believed to be reliable. SAANS does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any securities. SAANS and its affiliates and/or their officers, directors and employees may have positions in any companies/shares mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such companies/shares (or investment).
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| Reliance Disclaimer |
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