Monthly Magazine Report - From the desk of Research - By Mansukh

The  June  series  Futures  and  Options  contract  settlement turned out to be an encouraging event for the Indian markets as bulls showed strong buying interests in majority of the blue chip stocks. Hefty short covering in the dying hours ahead of the series expiry further stoked the benchmarks to settle around the high point of the day. The resilient markets seldom shown any signs of capitulation in last six sessions, as they vivaciously rallied over 1,250 (Sensex) and 350 (Nifty) points during the period. Sentiments mained upbeat across the lobe as investors ontinued to capitalize on he positive momentum om the previous session fter the Greek government uccessfully voted in favor fstringent austerity easures. A second vote for he implementation of the measures is   expected in Greece later in the day. Majority of the Asian equity indices settled in the green zone with smart gains while the European counterparts too  exhibited  mixed  trends  ahead  of  a  second  vote  for  the implementation of the measures scheduled later in the day. In the meantime domestic sentiments also got buoyed by encouraging food inflation numbers which drifted sharply to one and a half month low levels, a week after convalescing over 9% levels. The moderation in inflation numbers came a day after Prime Minister Manmohan Singh said that inflation will come down to 6.5% by March-end if international oil prices soften and commodity prices do not rise further. The numbers indicate that RBI, which has hiked its key interest rate by 2.75% points since March 2010, may not resort to rate resort to further hikes and soften its hawkish stance against inflation.

However, Indian fuel price inflation accelerated to an eight-week high in mid-June and the government's recent move to hike dieseland other fuel prices is expected to put upward pressure on prices in coming weeks and push headline inflation towards double digits. Local sentiments also remained optimistic as FIIs have turned net buyers since Thursday, indicating that interest of foreign funds are not fading any time soon. Back on Dalal Street, the benchmark began the expiry session on an optimistic note and oscillated above the neutral line in a narrow range through most part of the session, lacking any kind of volatility which is typically evident on F&O settlement days. After registering losses in the two previous F&O series, the June series F&O showed a swashbuckling performance adding  over  four  percent  from  the  last  series.  The  NSE's  50-share  broadly  followed index Nifty, settled close to a percent gains just below the crucial  5,650 support level while Bombay Stock Exchange's Sensitive Index, Sensex amassed over one hundred and fifty points to close below the failed to mirror the performance showcased by their larger peers and important psychological 18,850 level. However, the broader markets negotiated only moderate gains. The midcap index added 0.32% points while the smallcap index rose 0.57% point. On the sectoral front, it was the defensive - FMCG pocket which once again outperformed not only its sectoral peers but also the benchmarks and surged by close to 2%.For the upcoming series 5760-5770 could be the crucial resistance zone where we believe spot index may find some consolidation. Any closing above this level may boost the traders sentiment however 5900-5930 may be the next resistance zone. On the flip side 5500-5530 may provide some important cushions on downside. HAPPY TRADING…….

FROM THE DESK OF RESEARCH- BY Mansukh June, 2011

Indian equity indices went through a turbulent week as they failed to negotiate a close above the neutral line for even a single session and eventually snapped the week with a cut of over two percent.

The  week  largely  remained  characterized  by  choppiness  because investors were reluctant to pile up positions and indulged largely in stock specific activities as corporate India continued to divulge their fourth quarterly report card. Volatility gradually accelerated session after session as the April series Futures and Options settlement neared while  quarterly  earnings'announcements by RIL, Wipro, Bank of Baroda, Ambuja Cement, Crompton Greaves, TVS Motors were punished badly as they remained below Street's expectations. On one hand spiraling international crude oil prices become the headache of policymakers while on the other, worries over global economic recovery loomed large, given the fact that world's biggest economy continues to grow at a tepid pace.   The April series F&O settlement day turned out to be another pathetic trading session for the Indian  stock  markets  as  the  selling  pressure  gathered  greater momentum after government released the disappointing food inflation numbers which stayed absolutely flat at 8.76% on annual basis during week-ended April 16 compared with 8.74% recorded in the previous week. Rate sensitive counters like Real Estate and Bankex witnessed relentless selling pressure througsession for theh the week ahead of the RBI's annual monetary policy review meet on May 3rd where it is expected to bite the bullet and hike rates by 50 bps to cool the spiraling inflation which has vehemently hovered at uncomfortable levels on the back of crude oil    prices which have skyrocketed by over 50% in last six months. The  Foreign Institutional Investors on the other hand ploughed back their money from the local markets to the extent of Rs 2,703 crore in the week on expectations that deteriorating domestic macro headwinds will have adverse impacts on the companies' earnings thereby reducing the returns on investment.

The Bombay Stock Exchange (BSE) Sensex lost 466.27 points or 2.38% to 19,135.96 during the week ended April 29, 2011. The BSE Mid-cap index declined by 141.07 points or 1.95% to 7,094.23 and the Small-cap index shed 163.26 points or 1.84% to 8,715.31. On the sectoral front, Reality lost 201.17 points or 8.45% to 2180.10, Capital Goods (CG) shed 607.16 points or 4.45% to 13,036.91, Bankex declined by 468.163 points or 3.46% to 13545.13, Oil & Gas tumbled by 301 points or 2.92% to 10,008.27   and   Metal   index   down   by   467.98   points   or   2.81%   to 16,190.59,were the top losers on the BSE, while Health Care(HC) adding 74.77 points or 1.21% to 6232.55 and FMCG advanced 24.78 points or 0.66% to 3755.16 were the only gainers on the sectoral space. The S&P CNX Nifty trimmed 135.20 points or 2.30% to 5750. On the National Stock Exchange (NSE), Bank Nifty lost 3.46% to 11,483.75, CNX mid-cap shed 1.36% to 8,200.95, CNX Nifty Junior declined by 1.35% to 11,376.70 and     CNX IT tumbled by 0.92% to 6718.35. Conclusively we expect slightly range  bound  scenario  between  5555-5960  though  sentiments  remain subdued for the upcoming sessions. Any closing above this 5960 with substantial volumes for at least 2 consecutive days may generate another 2-3% return and we might see 6070-6080 in the short term. HAPPY TRADING......

Nifty 50 Sensex From The Desk Of Research

The rebound in international crude prices by around a percent in the back of the ongoing turbulence in Libya and neighboring nations too weighed on the local sentiments. However, the rally in software and technology stocks capped the downside risks for the markets while the ease in inflation numbers to single digits during the week-ended March 19 after showing an unexpected increase in the previous week also supported the investor mood.

Indian frontline indices went through a rollercoaster ride on the settlement day of March series futures and options contracts as sentiments turned highly volatile in the second half of the session. The seven successive days of winning streak got extended for yet another day, thanks to the late short covering rally after the indices drifted to the red terrain on the back of hefty position squaring in rate sensitive and healthcare counters . The rebound in international crude prices by around a percent on the back of the ongoing turbul ences in Libya and neighboring nations too weighed on the local sentiments.

However , the rally in software and technology stocks capped the downside risks for the markets while the ease in inflation numbers to single digits during the week-ended March 19 after showing an unexpected increase in the previous week also supported the investor mood. The NSE's 50share broadly followed index Nifty, settled a tad below the crucial 5,850 support level, after surging around a percent while Bombay stock Exchange's Sensitive Index, or Sensex garnered over one hundred fifty points and closed just below the psychological 19,450 level. In the broader markets especially the mid cap stocks after a tremendous rally in last session showed some sign of fatigue but managed to hold in green. The BSE's Midcap and Smallcap indices went home with trivial gains of 0.29% and 0.21% pectively, underperforming their larger peers by quite a margin. On the sectoral front, The IT pocket grabbed the top gainer's position after garnering 1.92% on hopes that upbeat results and outlooks last week from global technology majors Oracle Corp and Accenture bode well for resurgence in tech spending. 

The paper stocks continued to remain in jubilant mood while AP Paper Mills once again got locked in upper circuit other paper stocks too traded higher. On the other hand, the Banking sector languished at the bottom of the table after slipping 0.70% as majors like SBI and Indusind Bank plummeted 3.19% and 4.87% respectively..Among most active underlyings SBI witnessed a contraction of 13.08% in the March month futures contract, followed by Reliance which saw a contraction of 7.05% of OI in the near month contract. Tata steel witnessed an addition of 0.50% in the near-month futures and Tata Motors witnessed an addition of 14.21% in the near month futures contract . Meanwhile, the government is set to release a revised FDI policy circular later in the day hoping to attract greater amount of foreign funds in the next financial year beginning April 1. Among other modifications, the third edition of the Consolidated FDI Policy Circular (CFPC) may contain guidelines on domestic companies issuing shares to foreign entities for considerations other than cash, a move aimed at checking possible misuse of FDI policy to engage in money laundering.

At current juncture we expect the same scenario in the upcoming sessions though possibility of profit booking around 5875-5885 couldn't be rule out. Any closing above this level may generate another 250-300 pts rally and we might see 6070-6080 in the next series. On the flip side any negative outcome from global side particularly from Middle East Asia may dampens the current euphoria. Technically too spot index rallied from last 8 consecutive sessions. Therefore ossibility of minor retracement near to 5550-5570 could be on higher side however any correction should be used to create fresh long positions.

Mansukh brings to you the most updated monthly magazine which will not only help you in understanding online share market but will also help you in doing online stock market trading conveniently and smartly. For all the latest happening of  Share market trading, visit www.moneysukh.com.

Tips for those who intend to invest in NSE and BSE market

Today, everyone wants to make some extra money. And, when there are a lot of opportunities, right at your doorstep, it becomes even more alluring. The best thing is that you don’t need to invest huge amounts of money; you just need to be well informed. Out of all the money making opportunities available, the stock market is the best. And while it is pretty unpredictable, it has, in recent times, given its investors various reasons to celebrate. Therefore, prudence suggests that now is the perfect time to invest in the NSE and BSE market. 

However, there are some tips that one needs to follow before investing in the stock market. The first and the most important tip, is to follow affairs of NSE and BSE market and monitor the updates regularly. Not only will this provide you with a better understanding of the market and its changing trends, it will also help you understand the crucial aspects such as which sector is delivering positive results, which companies are basking in gains etc. All this becomes easy, as you can have a quick view of the live stock market, at the click of a mouse.

The smartest move is to gather as much information as you can about the stock that you are planning to buy. The most crucial information that one must extract is the changes in the movement of stock prices, according to the market trends, over a certain period of time. One should also conduct intensive research about the past and present performance of the company. Further, one should track the growth record of the company based on the pictures presented by BSE live, share market live and various other factors.

Now, the most crucial tip is not to panic over small losses, as profit-loss is the part and parcel of the stock market game. The wise thing to do is to understand the very core of the market and its functioning by observing the performance of NSE and BSE market regularly. Slowly and steadily, experience will teach you maintain balance between profit and losses and also make profitable deals out of them, more often than not.
So, the crux of this game is that if you are a smart and well-informed investor, you can mint a great deal of money from stock market trading.

Author Bio:
The author is an expert in financial markets and offers valuable tips on the stock market. For more information on investing in NSE & BSE visit http://www.nsebse.com

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