Visit http://indiaer.blogspot.com/ for complete details �� ��
9am with Emkay |
Contents
n Dealer Comments
The markets did start the day’s session on positive note with 80 odd point’s upward gap tracking subdued cues from the global markets particularly the Asian counterparts. After a firm opening, markets immediately nosedived in the negative zone amid fears of widening bribe for loan scandal and news of margin calls triggering in select realty related and scam related stocks. The markets did manage to recover the earlier lost ground in noon trades mainly led by aggressive buying in the banking space post announcement by the Finance ministry having not suggested recalling of corporate loans under the scanner in the bribery scam related companies. The recent housing finance scam, monetary tightening by China, sell off in the global markets due to Korean fears and credit concern in Euro zone have been the key reason for the recent downfall of the markets and may continue to haunt the sentiments going ahead. Indian indices have corrected almost 1900 points in Sensex and 560 points in Nifty from their all time highs in last three weeks post Diwali. In today’s trading session the fall in the broader markets was much fiercer and sharper with midcap and smallcap indices tumbling almost 4% odd for the day. One sector that shall continue to weigh down is the Realty space amid the recent bribery scam event. Finally the markets closed the day on a negative note towards the end with Sensex losing 182 points or 0.94% lower to settle at 19136 levels while Nifty lost 48 points or 0.82% lower to settle at 5751 levels. The overall traded volumes were extremely lower being the first day post expiry day compared to the earlier day by almost 43% and were at Rs 1688 bn. While delivery based volumes were also quite lower compared to the earlier day at 42.9% of the total traded turnover. Among the Fund activities FII’s were net sellers to the tune of Rs 5.85 bn while Domestic Funds were net sellers to the tune of Rs 4.08 bn respectively on 25th November 2010. While on 26th November 2010 FII’s were net sellers to the tune of Rs 6.28 bn in the cash segment while in the F&O segment FII’s were net buyers to the tune of Rs 37.15 bn while Domestic Funds were net buyers to the tune of Rs 9.59 bn.
n Technical Comments
At the support of 20-WSMA
After a loss of 150 odd points, Nifty finally settled with a weekly negative close for the third consecutive week. However, taking into account the daily momentum indicators (which are fairly oversold) and support of 20-weekly simple moving average (on which Nifty is standing as of now), we still feel that a bounce from current levels is an utmost possibility. Apart from this today, Nifty saw minor whipsawing of the bullish trendline, drawn connecting the lows of 2539 and 4786, but unless we see a convincing break of that trendline, we will stick to our bullish stance.
BSE Bankex:
For BSE Bankex 38.2% retracement and the channel supports both lie around 13,100 and hence we believe that medium term risk reward remain in favour of the bulls. A final advance towards the upper end of the channel is still pending.
Mphasis Company Update; Challenges persist; HOLD; Target: Rs.600
n Post the expected bounce back in Mphasis’s stock price after ‘no negative surprises’ in Oct’10, we find little reason to turn more constructive on the stock
n Op mgns should head further lower driven by supply side pressures, US$/INR appreciation and need to increase S&M investments as co increases focus on non HP business
n Cut our Oct’11/Oct’12E EPS by 5%/0.5% to Rs 49.8/54.7 (primarily on reset in US$/INR at Rs 44/$) despite building in higher revenues (22%/21%YoY)
n Valuations appear inexpensive at 12/11x FY12/13E EPS, however need to be weighed against ~2.8% EPS CAGR over F11-13E with downside risks to revenue, mgn assumptions
No comments:
Post a Comment