Stock Market & Business News Highlights – 9 July 2009

• Due to major negative global cues and very hard-to-understand budget forced indian market to open very red gap and senesx opened with a loss of 130 point at 14030 levels. US DOW jones and nasdaq were closed with huge losses and all asian markets were trading with 1.5% to 2% losses. After initial 2 hours trading, market was able to recover its early trade losses to make high of 4138 in nifty but 4150 proved to be an important resistance which helped market to go in deep red to close with 4% loss. Indian market benchmark sensex closed at 14769 with 401 losses and nifty at 4078 level with 123.5 points losses. BSE Reality index falled 9% followed by Consumer goods, Metal, Bankex and Power Indexes on BSE.
• UK`s benchmark FTSE 100, French benchmark index CAC and Germany`s benchmark index DAX were trading with heavy losses of 1.5-2% . U.S. Dow Jones and Nasdaq were also opened in GREEN but after hour trading it was tanked in negative zone to trade with 0.5% to 0.85% loss.
• Crude Oil prices declined by 2% to trade at $61.75 with lossing $5 in last 3 days – Bloomerg.com, Yahoo Finance
• Ratan Tata , Chairman of Tata Group, will the chairman of the international advisory panel of Air India (AI).
• After anlyzing various investment instruments, We have concluded that over a long period of investment ( more than 5 years ), Equity investments are best but on an average investment in GOLD returned good healthy amount so it’s advisable to put 30-40% of your saving into GOLD. Read more @ ET
  • 1 Year Returns => Debt Fund: 10.9%, Govt Securities: 14.1%, Equity Funds: -5.2%, Gold: 17.9%
  • 3 Years Returns => Debt Fund: 7.7%, Govt Securities: 8.5%, Equity Funds: 13.6%, Gold: 18.9%
  • 5 Years Returns => Debt Fund: 5.9%, Govt Securities: 5.9%, Equity Funds: 25.2%, Gold: 20.7%
  • 10 Years Returns => Debt Fund: 8.5%, Govt Securities: 10.5%, Equity Funds: 20.2%, Gold: 14.9%
• Securities and Exchange Board of India (SEBI) clarified that the revised filing fee for offer documents of mutual funds will be applicable to those schemes registered with the market regulator on or after July 1. Revised fees will be 0.002% of offer document which was initially 0.005%
• Google Inc. is developing a computer operating system based on its Chrome Web browser, taking aim at Microsoft Corp. in its strongest market. – Bloomerg.com
• Tata Steel, JSW Steel, Essar Steel and Uttam Galva Steels are eyeing to acquire a majority stake in Ajmera Group’s Shree Precoated Steel – BS
• State Bank of India (SBI) has got first-stage approval from insurance regulator Insurance Regulatory and Development Authority (IRDA) for its general insurance venture – BS

Today’s Sensex & Nifty Trading Calls

• Stock Market Pre-opening Outlook: Yesterday market were trading in negative zone following US and EU markets. After showing some recovery in mid trading session, markets tanked further to close at new lows of the day below 4080 level. Market was trading between 4080 to 4150 ranges but it has not touched 4150 level. All world markets are trading with 2-3% losses which will force indian market to open in deep red zone with 40-50 points losses in nifty but we may see some recovery to close at flat. 4150 will be the major resistance for nifty level. If 4040 is broken in nifty then we may see new lows of pre election time. Final target for july 2009 in nifty is 3600-3730.
• Note: Use upmove in market to exit from long as market can test new lows of last 5 months at 3600-3730.
  
• Nifty Levels: Current: 4078 Support Level 4040, 3995, 3960 Resistance Level 4080, 4110, 4150
• Don’t stay long with any PSU and Bank Stocks as i am expecting more 20% drop especially ONGC, PNB, Dena Bank, Bank of Rajasthan, Central bank, BOB.
• Use drops in market as a chance to enter in good stocks like Lanco Infra, Opto Ckt, REC Ltd, JP Hydro, Pantaloons, Hero Honda, Suzlon Energy ( below 71), JP Assoc and Power related stocks
• Sell Aban Offshore: Sell Below 697 Target 678, 659 Stop Loss 713
• Sell Cairn India: Target 197, 194 Stop Loss 210
• Buy GMDC: Target 4-5% hike, Stop Loss 72
• Buy NMDC: Buy Above 332 Target 342, 354, 366 Stop Loss 324
• Buy Sesa Goa: Buy Above 189 Target 193, 196, 200 Stop Loss 185
• Sell Suzlon: (Not Intraday) Sell below 85 Target 78, 73 Stop Loss 95
• Buy SBI:Buy Above 1592 Target 1607, 1620, 1632 Stop Loss 1576
• Sell RCOM: Sell below 251 Target 243, 238 Stop Loss 257
• Exit Ansal Properties: Short Term Target 34 Stop Loss 49 (Enter in this stock at 34 again)
• Past Trading Calls View Here

Mid-Session Updates