Indian markets traded with a positive bias for most of the day on Monday and closed in positive territory.The Sensex closed at 18645.06 & S&P CNX NIFTY at 5604.00.

Our market are in a confirmed long term and medium term uptrend.

Global markets are trading in a range thus indicating a range bound or directionless market.Our markets have taken away recent top of 5550 and are poised for further bull run but possibility of this just being a range expansion may not be ruled out completely.

VIX is moving in a range which is in tandem to our market but bias is clearly negative which indicates strength and less volatility in our market.

Stocks view:

Shorting opportunity:

SBI( long term), Aban offshore

Buying Opportunity:

BPCL (long term),Tata Motors, ICICI Bank, Tata Steel

( This article is also published on www.equitytrendsindia.com )

Most Asian stocks edged higher on Tuesday as investors awaited flood of Chinese data. The key benchmark indices in Hong Kong, Indonesia, South Korea, Taiwan were up by between 0.02% to 0.43%. But, the key benchmark indices in China, Japan and Singapore fell by between 0.21% to 0.26%.

Risk-taking has been supported by stronger-than-expected US factory and jobs data late last week, which eased market fears about a double-dip recession in the world’s biggest economy.

Trading of US index futures indicated that the Dow could gain 22 points at the opening bell on Tuesday, 7 September 2010. The US stock market was closed on Monday, 6 September 2010, for the Labor Day holiday.

US president Barack Obama is expected to announce that businesses will be allowed to write off 100% of all new investments in plant and equipment in 2011, The Wall Street Journal reported Monday, 6 September 2010. The president is expected to make the announcement on Wednesday, 8 September 2010, with the tax break to be retroactive from the same day, according to the report. Congress will need to approve the proposal which, if implemented, would cut business taxes by almost $200 billion over a two-year period, the report said. On Monday, Obama unveiled a $50 billion plan to upgrade roads, airports and railways as part of an effort to create jobs and support the US economic recovery.

Closer home, foreign funds continue to mop up Indian stocks. Foreign funds bought shares worth a net Rs 946.53 crore on Monday, 6 September 2010, as per the provisional data released by the stock exchanges. Domestic funds bought shares worth a net Rs 392.13 crore on that day.

Foreign funds have bought shares worth a net Rs 1671.67 crore in the first four trading sessions this month, as per data from the stock exchanges. Their inflow in calendar 2010 has reached Rs 21166.76 crore.

Meanwhile, good rains in August 2010 and continuation of the wet spell in the first week of September 2010 has strengthened the optimism about a record kharif harvest this season. Further, the weather office’s prediction that the monsoon will not start withdrawing before mid-September 2010 has boosted the outlook for the next rabi as well.

The kharif sowing is more or less over in most of the country, barring some pockets in the east where soil moisture remained inadequate for seeding till the second half of August 2010. Paddy growers in such tracts of Jharkhand, West Bengal and Bihar are now sowing alternative crops like urad, moong, nigerseed and fodder on the advice of agriculture experts and officials of the state agriculture departments, as per media reports.

With 16% above-normal rainfall in the last week of August, the overall deficiency in the season’s cumulative monsoon rainfall till 4 September 2010 has shrunk to just 1%, from 5% at July-end and 16% at June-end. The forecast issued by the India Meteorological Department (IMD) projects 15% excess rainfall in September 2010, the last month of the four-month monsoon season (June to September). The rain-starved tract in the north-east is also projected to receive good rainfall till at least 10 September 2010. The cumulative seasonal rainfall in the eastern region as a whole, however, may remain in the deficient domain, according to IMD.

While the traditional high rainfall region in the east and north-east has remained rain deficient in this monsoon this, the usually arid tracts, such as western Rajasthan, Leh and Ladakh in Jammu and Kashmir, Vidarbha, Marathwada, Saurashtra and Kutch, have got excess rainfall in the current monsoon season. This has facilitated extensive sowing of coarse cereals, pulses and cotton in these tracts, as per media reports. High ruling prices of these commodities has also encouraged the farmers to go for these crops.

The good and sustained waterfall since the last week of July, moreover, has refilled most of the reservoirs which were depleted substantially due to last year’s drought. According to the Central Water Commission, total water stock in the 81 major reservoirs was 90.777 million cubic metres (BCM) on 1 September 2010. This level is nearly 34% above the last year’s corresponding level and 2% above the long period average.

The south west monsoon is important for India as about 60% of the country’s farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector.

Coming back to stocks, the key indices scaled 31-month highs on Monday, 6 September 2010, on signs the global economic recovery is on track. Stocks rose across the globe as better-than-expected US payrolls data late last week eased market anxiety over chances of a double-dip recession in the world’s biggest economy. The BSE 30-share Sensex rose 338.62 points or 1.86% to 18,560.05, its highest closing since 5 February 2008.

This post is shared on the moneyvidya blog by Dead Presidents. Please visit http://deadpresident.blogspot.com to see DP’s personal blog/website

At present, the Bombay Stock Exchange and the National Stock Exchange select 250 transactions per day and write to the investors concerned. Sebi has now decided that for investors without an email account, the number to be informed in this random manner should be raised to 1,000 per day. The rest will get emails.

At present, some brokers do send contract notes on emails, but this will now be made compulsory, with the mail to go soon after the transaction is done. This is to check unauthorised transactions by brokers in investors’ accounts.

Investors’ associations have frequently raised this issue. Says G S Sood, president, Society for Consumers’ and Investors’ Protection: “Most of the time, the hired staff of big broking houses do transactions in clients’ accounts to meet their turnover targets. If analysed closely, these transactions can never be done by a prudent investor, as they have been observed to bring no gains.”

To get more business, some big broking houses appoint people who manage to hustle investors into signing forms for opening accounts, with the other details being filled by the agents. “This is dangerous. Investors should be careful and fill up everything themselves,” said Sood.

He says along with emails, the brokers should be asked to send SMSes to investors for every transaction in their account, soon after the transaction. The issue has been discussed by Sebi’s Investor Protection and Education Fund Advisory Committee.

Source : Business Standard

This post is shared on the moneyvidya blog by John Christy. Please visit http://www.investchips.com/ to see John’s personal blog/website.

As on 07-09-2010

1. Buy Sreinfra above 93 for a target price of Rs 97, with a stop loss of 91, view two days.

2. Buy Chambal Fert above 76 for a target price of 81, with a stop loss of 73,view one week

3. Buy Kohinoor Foods above 52 for a target price of 58, with a stop loss of 50,view one week

4. Buy Spicejet above 76  for a target price of 87 with a stop loss of 72, view one month

This post is shared on the moneyvidya blog by Antony Joseph Rajendran. Please visit http://www.investorinfo.in to see Antony’s personal blog/website.

Indian markets traded with a positive bias for most of the day on Monday and closed in positive territory.The Sensex closed at 18560.05 & S&P CNX NIFTY at 5576.95.

Our market are in a confirmed long term and medium term uptrend.
Global markets are trading in a range thus indicating a range bound or directionless market.Our markets have taken away recent top of 5550 and are poised for further bull run but possibility of this just being a range expansion may not be ruled out completely.

VIX is moving in a range which is in tandem to our market but bias is clearly negative which indicates strength and less volatility in our market.

Stocks view:

Shorting opportunity:

SBI( long term), Aban offshore

Buying Opportunity:

BPCL (long term),Tata Motors, ICICI Bank, Tata Steel

( This article is also published on www.equitytrendsindia.com )

Indian markets traded  with a negative bias for most of the day on Friday and closed in negative territory.The Sensex closed at 18221.43 & S&P CNX NIFTY at 5479.40.

Our market are in a confirmed long term and medium term uptrend.

Global markets are trading in a range thus indicating a range bound or directionless market.Our market have taken a support from 5350 to move back beyond 5400 indicating support for market at 5350-5380 levels and a resistance at 5550 levels.

VIX is moving in range which is in tandem to our market but bias is clearly negative which indicates strength and less volatility in our market.

Stocks view:

Shorting opportunity:

SBI( long term), Aban offshore

Buying Opportunity:

BPCL (long term),Tata Motors, ICICI Bank, Tata Steel

To give yourself the best chance of succeeding in the forex market you would need to integrate; money management and accounting into your strategy. Many view forex trading is an instrument of buying or selling currencies which is true but it’s not the full picture. Without, proper accounting and money management skills; you will have a negative return rate in the long-term. The purpose of money management in the forex market is to give you an oversight of your current portfolio and if your portfolio has a positive yield outlook in the long-term.

Here is of how to integrate forex money management and accounting; to make you a successful long-term forex trader:

Portfolio Performance – Keeping track of your forex assets and equity will provide you with an overall performance on daily, weekly, or monthly intervals. In the forex market, majority of traders do not trade one pair at a time; the market is made of multiple currencies and pairs. Having a portfolio performance graph or chart, will give you a better picture of which trades out-performed the others. A positive yielding currency pairs will provide you with the latitude to study the performance further and to shift your assets in that direction.

Income and Expenses – The positive funds that you have created from a winning trade will count toward income and the expenses group will consist of your losing trades, overnight negative interest rates (-), and the spread required for the trade. Remember, each currency has a different spread that you must to take into consideration when you start calculating the expenses and some forex brokers don’t have spreads but are commission based per trade.

Taxes – Each country has its own rules and regulations toward your forex tax profits. Many countries observe the forex market as equal to the stock market; in terms of payable taxes on the profits. Some forex brokers do require you to provide them with a tax form signed when you begin your account with them; so they keep track of all your trades and provide you with a statement at year end.

Manage your Forex Trades – In order to manage and trade forex successfully; you must take into consideration the fundamental and technical analysis of the currency pairs.

(a) Fundamental analysis is the ability to analyze past or current news that would effect your trade position. Currencies move based on the news sentiment (positive or negative) which ripples down to the forex traders. On a positive news outcome, you can expect that majority of the traders will execute a buy position, which would boost the currency in an upward trend. On a negative news outcome, expect the opposite to occur; negative news will make the traders sell their buy positions and some traders may even enter into a sell position for a downtrend run. You must also take into account that not all forex news are the same; some create a stronger reaction then others. The macro-economic news such as Federal fund rate, retail sales, etc. will have more of an impact then the micro-level economic news such as, total vehicle sales.

(b) Technical analysis is the price action/resistance lines on your chart where the buyers decided to enter or leave the market. Being able to effectively pin-point where resistance lines are will give you an edge over other traders. If the resistance line is broken on the upside it would indicate a strong currency trend on an upward trend and it breaks a resistance line on the downside; it would indicate a weaker then thought currency trend.

Investment Terms and Reports – Depending on your forex goal; you will have to choose if you are looking to be a long-term or short-term investor. Being a long-term forex investor, you will have the leverage of not having to keep track of the daily currency pair’s movement, track monthly or yearly returns, and have a weekly report of your investment outlook. The other options is choosing to be a  short-term investor which would indicate that you have to keep track of the daily currency pair’s trend, 1 to 5 days closing/executing rate of your trades, and have a daily report of your investment outlook.

This post is shared on the moneyvidya blog by guest blogger Vincenzo Desroches

We expect another day of sideways consolidation for India. The start will be higher but lackluster as global cues are indecisive. Individual stocks will continue to fly even as the main indices witness tepid movement.

Meanwhile, there are no major threats to India’s bright and beautiful story. The only worry is rich valuations, especially for large caps. At the same time opportunities abound outside the main indices. We expect the out-performance of the small- and mid-cap indices to sustain a bit longer.

US data on Thursday was mixed. Global markets are looking forward to today’s non-farm payroll numbers to get a better sense of the ground reality in the US.

FIIs were net buyers of Rs823.1mn in the cash segment on Thursday (provisionally), according to the NSE web site. Local funds were net sellers of Rs1.18bn. In the F&O segment, the foreign funds were net buyers at Rs20.65bn. FIIs were net buyers of Rs5.27bn in the cash segment on Wednesday, as per SEBI’s web site. Mutual Funds were net sellers at Rs3.52bn on the same day.

Jindal Poly has doubled in recent times and the company’s Board will meet today to consider a bonus.

Allied Digital, Apar Industries, Jindal Photo, Jindal Poly, Kalindi Rail and Raj Oil Mills will announce their results.

DLF will be in focus as reports suggest it has put off sale of its non-core assets. Airlines could gain as reports indicate that the RBI has cleared restructuring of their debt by banks. PNB might attract attention following an international acquisition.

IndusInd Bank is reportedly doing a QIP worth Rs7.5bn. Sugar stocks may extend gains amid hope of sector deregulation. NTPC could rise amid reports of higher targets being set by the new CMD. Petronet plans Rs23bn expansion of its LNG terminal.

US stocks ended marginally higher on Thursday after a late spurt, as investors focused on an encouraging report on weekly jobless claims and pending home sales ahead of Friday’s crucial non-farm payroll report.

The Dow Jones Industrial Average finished up 50.33 points, or 0.49%, at 10319.80. The Nasdaq Composite index rose 1.06% to finish at 2200.01 while the Standard & Poor’s 500-stock index gained 0.91% to 1090.08.

Meanwhile, trading volumes continued to be light as many market participants are on vacation this week. Just over 3.8 billion shares changed hands in NYSE Composite trading. The 2010 daily average is about 5 billion shares, although the August average was just over 4 billion shares.

The dollar slipped against the euro and the Japanese yen, but edged higher versus the British pound.

Oil futures for October delivery rose $1.03 to $74.94 a barrel.

Gold for December delivery added $5.30 to $1,253.40 an ounce.

The yield on the 10-year Treasury note rose to 2.63% from 2.58% late on Wednesday.

Wall Street was also ably supported by better-than-expected sales from major retailers but the general undertone was cautious after Wednesday’s big gains. After closing out a dismal August, stocks rallied more than 2% on Wednesday to start September on a strong note.

The US indices are still down between 1% and 3% year to date.

US stocks could rally after Labor Day if the monthly jobs report is within expectations. On the flip side, the market might fall if the government’s jobs report falls short of already guarded expectations.

Investors are eager to see signs that private sector employers could begin hiring again as public sector jobs related to the Census have disappeared.

On Wednesday, payroll processing firm ADP said private sector employers cut 10,000 jobs in August - a drop from the downwardly revised 37,000 jobs they added the month before. Economists had expected the report to show an increase in private sector payrolls.

Friday’s report is expected to show that employers cut a total of 120,000 jobs in August after payrolls fell by 131,000 in July, according to economists. The unemployment rate currently stands at 9.5%, and that figure is expected to creep up to 9.6%.

The Dow traded in a tight range of just over 50 points for most of the day before breaking higher in the final hour of trading, led by consumer discretionary and industrial stocks. More defensive sectors, including utilities, telecommunications and health-care stocks, were the three worst performers of the day.

The European Central Bank (ECB) kept its benchmark interest rate unchanged at a record low 1%, as expected. ECB President Jean-Claude Trichet said that the ECB would extend its tool box of additional bank funding on a full allotment basis, citing continued uncertainties in the economy.

A majority of retailers reported surprisingly strong August same-store sales, as consumers responded to back-to-school deals and tax holidays. Same-store sales, an important gauge of a retailer’s health, measure sales at stores open at least a year.

Sales tracker Thomson Reuters said that 65% of the retailers in its index, that have reported sales so far, have beat expectations.

Weekly jobless claim figures dipped slightly, by 6,000 claims, to 472,000 in the week ended Aug. 28. Economists expected the number of Americans filing new claims for unemployment insurance to have edged up slightly last week to 475,000.

Pending home sales - a forward looking gauge - rose 5.2% in July, according to an index from the National Association of Realtors. But the index, which is based on sales contracts signed in the month, was down over 19% from July 2009. Economists had expected pending home sales would be flat in July.

The housing data helped boost shares of homebuilders.

Separately, the government said that factory orders rose 0.1% in July, versus a forecasted 0.3% gain. But the Commerce Department said orders fell 0.6% in June, an improvement over the originally reported 1.5% drop.

The Labor Department said labor productivity in the non-farm business sector fell at an annual rate of 1.8% in the second quarter of 2010. The drop came as hours worked increased 3.5%, the largest quarterly gain in over four years, and output rose 1.6%.

The drop in productivity was roughly in line with estimates from private sector economists.

HP raised its offer to buy data storage company 3PAR to $33 per share, topping a $32 bid from Dell. The computer makers have been engaged in a bidding war for 3PAR since Dell made an $18 per share offer on Aug. 16.

3Par, which makes storage products used in cloud computing, accepted H-P’s offer, valuing the company at $33 a share. H-P gained 1.2%, while Dell rose 2% and 3PAR climbed 2.5% to $32.86.

Burger King said that it has agreed to be acquired by investment firm 3G Capital in a deal valued at $4 billion. Shares of the fast-food company rose 25% after surging 14% in the previous session on rumors of the deal.

Shares of Mariner Energy fell 2.5% after a fire occurred on an oil and gas production platform the company owns in the Gulf of Mexico. All 13 people onboard the Vermilion 380 have been accounted for, Mariner said. They are currently investigating the causes of the incident.

European stocks finished mixed, with some markets notching up small gains after another string of positive US economic data.

The Stoxx Europe 600 index ended unchanged at 258.18. The index rallied 2.7% on Wednesday following the release of strong manufacturing PMI data from the US and China.

The German DAX index also finished flat at 6,083.85. The French CAC-40 index rose 0.2% to 3,631.43 and the UK’s FTSE 100 index gained 0.1% to 5,371.04 points. Italy’s benchmark index gained 0.2%.

The benchmark stock indexes of Spain, Portugal and Ireland ended lower on Thursday. In Greece, the ASE Composite stock index rose 2.7%.

Telecom shares and major banks led decliners in Europe.

Deutsche Telekom fell 1%. The telecom is reportedly due to lose exclusivity for Apple’s iPhone in Germany ahead of the Christmas holiday shopping season.

Pernod Ricard, the producer of wines and liquors, reported a marginal rise in fiscal 2010 net income, while sales dipped 1.7%. Shares fell 2.4% in Paris.

Shares of Heineken NV dropped 2.1% in Amsterdam.

Shares of Capgemini rose 1.2% on news the consulting, technology and outsourcing group acquired a 55% stake in Brazilian information-technology company CPM Braxis.

The European Central Bank left its key interest rate unchanged at 1% at a meeting in Frankfurt. The central bank also revised higher its euro-zone growth estimates, with forecasts of 1.4% to 1.8% for 2010 and a range of 0.5% to 2.3% for 2011.

Separately, Sweden’s Riksbank raised interest rates from 0.5% to 0.75%, the second consecutive increase.

This post is shared on the moneyvidya blog by Dead Presidents. Please visit http://deadpresident.blogspot.com to see DP’s personal blog/website.

 Indian markets started with a gap up opening on Thursday and managed to close in positive territory after loosing some initial gains.The Sensex closed at 18238.31 & S&P CNX NIFTY at 5486.15.

 Our market are in a confirmed long term and medium term uptrend.

Global markets are trading in a range thus indicating a range bound or directionless market.Our market have taken a support from 5350 to move back beyond 5400 indicating support for market at 5350-5380 levels and a resistance at 5550 levels.

 VIX showed weakness in Thursaday session indicating return of strength and decrease in volatility in our market.

Stocks view: 

Shorting opportunity: 

SBI( long term), Aban offshore

Buying Opportunity:

BPCL (long term),Tata Motors, ICICI Bank, Tata Steel

( This article is also published on www.equitytrendsindia.com )