Nifty Unlikely To See 6200 Again This Year !

Open Calls :

RISKY CALL BUY NIFTY FUTURE @ 5065--5075, SL 5035 ON CLOSING BASIS, TGT 5125--5148--5178--5208--5258 FOR 2-3 DAYS ! NEARLY OUR 3TGT HIT CLOSE @ 5158.65 !

INVESTMENT BUY IRB @ 159--160.50, SL 155, TGT 164--168--175-178 FOR 1-2 DAYS ! Close @ 166.55 ! CALL ROCKS.

Market Updates : 

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Chambal Fertiliser & Chemicals, National Fertilizer, Shriram Transport FinanceCompany, and Jubilant FoodWorks are among the other gainers.

Fertilizer shares dominated gainers in BSE's 'A' group today, 10 August 2011. Fertilizershares rose on renewed buying as the government moved a step closer to decontrolling urea prices and bringing it under the nutrient-based subsidy regime.

Rashtriya Chemicals and Fertilisers (RCF) jumped 12.63% to Rs 81.60. The stock topped the gainers in the BSE's 'A' group. Chambal Fertiliser & Chemicals surged 10.41% to Rs 102.90. The stock was the second biggest gainer in 'A' group. National Fertilizer rose 8.93% to Rs 87.85. The stock was the third biggest gainer in 'A' group.

A Group of Ministers on fertilizers recently approved a policy for decontrol of urea prices. Under the policy, manufacturers will be allowed to hike the rates for the key farm nutrient by up to 10% in the first year. The decision of the Group of Ministers, headed Finance Minister Pranab Mukherjee, on urea decontrol will now go to the Cabinet Committee on Economic Affairs for final approval. The government has already freed potassic and phosphoricfertilisers with the introduction of NBS with effect from April 2010.

Shriram Transport Finance Company gained 8.71% to Rs 650.30. The stock was fourth biggest gainer in 'A' group. The company's net profit rose 20.2% to Rs 347.30 crore on 14.4% rise in operating income to Rs 1464.26 crore in Q1 June 2011 over Q1 June 2010. The company announced the results on 26 July 2011.

Jubilant FoodWorks rose 8.01% to Rs 825. The stock was fifth biggest gainer in 'A' group. The company will announce Q1 results tomorrow, 11 August 2011.

The US Federal Reserve's decision not to increase interest rates for the next two years had a positive impact on Indian markets and both benchmark indices closed with significant gains. Auto was the best performer in today's trade and other interest rate sensitive sectors like banking and realty also did well. Fertilizer stocks, too, gained substantially today. Oil & gas and FMCG were the only two sectors that closed with moderate losses. The Sensex closed at 17130, up 273 points from its previous close, and the Nifty shut shop at 5161, up 88 points. The CNX Midcap index was up 1.8% while the BSE Smallcap index gained 2.5% in today's trade. The market breadth was positive with advances at 1125 against declines of 209 on the NSE. The top Nifty gainers were Tata Motors, Maruti Suzuki, DLF andHindalco while the biggest losers included Grasim, ONGC, ITC and Cairn.

The markets performed well today and auto was the biggest gainer of today's session.

August (2011) : 
Open : 5544.45
High : 5557.10
Low : 4951.00
Close: 5158.65
Avg. : 5302.80

Yearly (2011) : 
Open : 6202.10
High : 6209.90
Low : 4951.00
Close: 5158.65
Avg. : 5630.41

NIFTY FUTURE 

R5 : 5208
R4 : 5178
R3 : 5140
R2 : 5125
R1 : 5095

CMP: 5083.40

S1 : 5072
S2 : 5058
S3 : 5032
S4 : 5012
S5 : 5000

Among the 30-share Sensex pack, 23 gained while the rest declined. Hindustan Unilever (down 1.31%), Sun Pharmaceuticals (down 1.32%), and ITC (down 1.4%), edged lower from the Sensex pack.

Index heavyweight Reliance Industries (RIL) rose 0.39% to Rs 768.35, off day's high of Rs 790. The stock rose on bargain hunting after the recent slide, which took the stock to a 52-week low of Rs 754.25 in intraday trade on Tuesday, 9 August 2011. RIL on Tuesday, 9 August 2011, said it has received the government's formal approval to sell a 30% stake in 21 oil and gas production sharing contracts to BP PLC. "Following the approval, Reliance and BP will work together to conclude the deal expeditiously," RIL said in a statement.

The initial proposal was for RIL to sell the stake in 23 blocks to BP for $7.2 billion plus another $1.8 billion linked to exploration success. However, the government cleared only 21 blocks and RIL had said it would continue to seek approval for the remaining two blocks.

Auto stocks gained on optimism the recent fall in global commodity prices may boost profitability of auto firms. India's second largest bike maker by sales Bajaj Auto surged 4.03%.

India's largest small car maker by sales Maruti Suzuki India galloped 6.31% to Rs 1284 ahead of the launch of an upgraded model of the Swift hatchback this month. Maruti had said early this month that new Swift being manufactured at the company's Manesar plant will be launched nationally in mid-August 2011. It was the top gainer from the Sensex pack

India's largest truck maker by sales Tata Motors jumped 5.71% on bargain hunting after sliding 17.15% in the preceding six trading sessions. Its ADR increased 7.06% to $18.36 on Tuesday.

India's largest tractor and utility vehicles maker by sales Mahindra & Mahindra (M&M) surged 4.88%. 

India's largest private sector aluminium maker by sales Hindalco Industries jumped 5.01%. The stock had dropped to a 52-week low of Rs 143.65 in intraday trade on Tuesday, 9 August 2011.

India's largest private sector steel maker by sales Tata Steel fell 0.52% to Rs 483.50, off day's high of Rs 503.70. The stock hit a 52-week low of Rs 481 in intraday trade today, 10 August 2011. The company, last week, said it will invest 7 million pounds ($11.4 million) in its European unit to enhance welding and material handling capabilities of its mill in Hartlepool in the UK. "This investment will help us retain our position as a world-leading supplier of pipes and tubes," said Ramsay Ross, a director of Tata Steel's tubes business, said in a statement.

India's largest non-ferrous metal firm by capacity Sterlite Industries (India) gained 1.56%. The stock had touched a 52-week low of Rs 130 in intraday trade on Tuesday, 9 August 2011.

India's largest sponge iron steel maker by sales Jindal Steel & Power rose 1.03%.

French President Nicolas Sarkozy today, 10 August 2011, held an unscheduled meeting with a number of government ministers and Christian Noyer, governor of the Bank of France, to discuss the country's economic and financial situation. The meeting comes amid fears that France's triple-A credit rating could come under threat if the European sovereign debt crisis worsens.

Asian stock markets rose on Wednesday, 10 August 2011, with sentiment helped by a Wall Street rally after the US Federal Reserve on Tuesday, 9 August 2011, pledged to keep US interest rates low at least through mid-2013. The key benchmark indices in Taiwan, South Korea, Hong Kong, Indonesia, China and Japan were up by between 0.27% to 3.44%. Singapore's Straits Times was down 2.18%.

China today, 10 August 2011, its trade surplus widened sharply in July 2011, boosted by above-forecast export growth.

Singapore on Wednesday revised its GDP growth forecast for 2011 while also lowering its projection for export growth amid concern of a slowdown in the US and the Eurozone. The Trade & Industry Ministry revised its growth forecast for this year to 5-6%, down from the original projection of 5-7%.

Trading in US index futures indicated that the Dow could fall 31 points at the opening bell on Wednesday, 10 August 2011. US stocks notched the biggest gain in more than two years amid a seesaw session on Tuesday, 9 August 2011, following the worst sell-off since the financial crisis, as investors applauded the Federal Reserve's pledge to keep interest rates near zero for two more years. The Dow Jones Industrial Average finished up 429.92, or 3.98%, at 11239.47. The Standard & Poor's 500-stock index rose 53.07 points, or 4.74%, to 1172.53 and the Nasdaq Composite gained 124.83 points, or 5.29%, to 2482.52.

The Federal Reserve said on Tuesday it will keep its hefty monetary policy stimulus for at least another two years, an effort to support a flagging economy and fragile global markets that faced considerable internal dissent. The Fed said US economic growth was proving considerably weaker than expected, suggesting inflation, which has already moderated recently, will remain contained for the foreseeable future.

Note : Data From Capital Market.com.

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