Wednesday, September 14, 2011

#93 Nifty Update

NIFTY close:-
NIFTY at its best!!! NIFTY closed at 5012 up 71 points and the most interesting part is NIFTY future closed at 5029 in premium after a long time and that too with a premium of 17 points.NIFTY has given a strong close over a 5000 mark. 

As i had been mentioning Consumer goods stock to outperform, same could be witnessed in HUL. HUL has given a unbelievable turnaround story after 2009. Modern trade, hike in price and growth in personal consumer goods was the major game changer for the company. Analyst expect double digit growth for the company in coming quarters. Once again Ranbaxy was in news as it is launching a Anti-Ulcer Drug in UK but it wont have much effect in companies revenue because of few FDA nod's pending for Indian projects but US lipitor will compensate for the loss.KS Oils have seen a high growth in the stock price in last 2 days as on the news that Glencore Internation AG (worlds best commodity trader) is going to buy stake in KS Oils. So its a small stock portfolio pick with SL of Rs.9. Spice Jet have seen movement in the stock on the news that promoter is going to infuse more capital to increase its stake to 43% for the good health of the company. Faith of the promoter is the most important thing on the fundamental side and i personally prefer such companies. Avoid BajajHind because it has announced right issue and its price at rs.36 while CMP is way above at 55.Cairn India is going to have a board meet to approve royalty payements to government to clear Vedanta deal. it will have a payout of rs.2500 crore. So avoid the stock for this quarter. On the banking side, BOB increased the FD rate to 9% and 9.25% according to time limits. Where as overall Credit card growth and debit card usage in first quarter has increased by 25% and 45% respectively frm same period last month. Experts says its show the growth of economy but i just hope we dont land up in Plastic money crisis same which US got into in 2008. Most important thing for today was Inflation number was out at 9.78% vs 9.22% in July while expectation was 9.65% on Cnbc. NIFTY seems to have already discounted such rates and therefore it didnt react at all. Infact we saw movement after the data was announced

TCS and a Malaysian company Prodata have joined hands to serve Malaysian govt IT needs and government companies and department. This is something big for IT sector in such worse time. This may push stock to some high levels in recent rally. POSCO has announced that Orissa plant is their priority even in such bad times. They are waiting for legal clearance and for the land clearance. And on other side its competitor TATA STEEL is going to invest 500000 pounds in its plant in Dudley in UK to improve its product of Excavating and lifters of the company. On other hand sources says JPMorgan is going to invest $400 million in SKIL. SKIL is company which has its stake in PIPAVAV and Everonn. Fund will be used for paying debt . World markets may have a short term recovering rally.

NIFTY has closed above strong support level of 5000. Inverted Head & shoulder is still valid as volumes are decreasing which is a important characteristics. RSI and MACD have shown positive crossover amongst the averages which is a sigh of relief for the bulls. Now u can go long on NIFTY with tgt of 5200/5300 with SL of 4911

NIFTY levels for 15th September:-
R-5030                 S-4995
R-5065                  S-4968
R-5085                  S-4945
R-5127                  S-4911

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