Indian Stock Market NSE and BSE both are gradually going down and down, make new low on closing of the Each days, its begin from Diwali Mahurat Treading Session. Many Investors asking to me that What do you think about market? Will the markets touch 12,000? From which date we can start buying or Make position in market ? Or do you feel any unfounded fear ?Will Indian Stock Market - Bombay Stock Exchange - BSE, National Stock Exchange - NSE Recover from current levels during November 2009 ?
Astrology18 Group has given prediction that Market is likely to recover after third Week of November 2009, so Investor need not to worry, Market will cross 17,000 again.
Transiting Sun will transit from Scorpio sign and will be in Separating aspect with Transiting Saturn. Transiting Venus will occupy Libra sign, indicates Market may remain volatile. Market may touch both extreme, so be careful between 2nd November 2009 and 25th November 2009. November will be testing month for Market. Some Good News and More Sad News may effect the sentimental of Market.
Astrology18 Group personally advice to all Visitor of our site and blog, do not make any long term position up to 25th November 2009. However, Investor may get change to make position on Monday 2nd November and Exit on 5th November 2009, It would be good day for Market, you are likely to get some profit, it may also help you to recover your money, after 5th November 2009 to 25th November 2009, Investor should be more careful and cautious. Market may go more down during these days.
Power of Astrological calculation says that Indian Stock Market will see new high or Market may go up and cross over 17,000 between 26th November 2009 and 14th December 2009.
IT is one sector which has managed to hold its steed.In this falling market.The sector has been resilient in an otherwise ‘corrective’ market. The market has been disappointed over a host of different reasons but more so, by the Q2 performances, which in many cases have been below expectations. But IT sector, like in Q1, in Q2 also has done very well.
Glance at major Pillars Of IT
As is the practice, it started with Infosys which in Q2 posted a revenue of Rs.5585 crore, up 2.06% on a QoQ and 3.1% on a YoY. Net profit was at Rs.1540 crore, up 7.5% on a YoY and less than one percent on a QoQ. And though the company continued to give a subdued guidance, it has been hiked when compared to the guidance it gave out in Q1FY10.
TCS reported a 29.21% rise in its consolidated net profit at Rs 1,642.21. Total income grew 9.46% at Rs 7,426.60 crore. TCS does not give guidance.
Wipro showed a 6% YoY rise in revenue at Rs.6,917 crore. It’s net profit rose 19% (YoY) and 14% (QoQ) at Rs1,162 crore. And unlike the other two, Wipro was more optimistic and stated that its global IT revenues would increase by 2.5-4.5% on a sequential basis, sending signals that recovery was well within its sights.
The common thread running between all three bigwigs is that their Q2FY10 numbers beat expectations – both of the market as well of analysts, who had expected a much dismal performance. Another commonality is that they all have turned optimistic, raising their guidance’s.
What has changed for the sector now?
Markets abroad have once again started spending, albeit deals are no where near the prices which were seen before the collapse but yet, the orders are coming in. Demand for price cuts have come down. In the second quarter of FY10, there has been deal flow of $2.2 billion for IT vendors.
The banking and financial sector’s abroad are starting to spend and this will benefit our IT companies, especially Infosys and TCS who have a large share of their pie coming from the BFSI. It is mergers and acquisitions in the BFSI sector which will open up more business. For Wipro, it is good times as it has a very diversified portfolio – apart from BFSI, it has energy and utility sector, healthcare and services sector, manufacturing, the retail, consumer packaged goods (CPG), transportation and government sector, telecom and hence would stand to benefit if recovery kicks in full swing.
Most of these companies have re-negotiated prices at lower rates for the current year and they do not expect the prices to go up any time soon though at the same time, they do not expect the prices to fall also. It is a happy situation for them even if prices are maintained at current levels.
Another positive Indian front line IT companies have also started looking at home itself for big time business. Apart from the Unique Identity Card project, there is the $2 billion e-biz program initiated under the National e-governance Plan which has 27 mission mode projects. Government organisations such as India Post, Indian Railways are also earmarked for major computerization exercise. There are also smaller outsourcing contracts from ONGC, LIC and the State Bank of India.
About The Company Founded in India in 1954, Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.
45-50% is the contribution of international business to overall revenue and profit. The Abu Dhabi Formula One project executed by Voltas is to be inaugurated in November and Burj Dubai, the largest building in the world, would be inaugurated in December.
The company electro-mechanical unit has an order book of Rs.4359 crore of which 25% is from the Middle East. The company plans to increase its presence in the Middle East, especially in UAE and Qatar.
The company has on August 25, 2009 increased its stake in Rohini Industrial Electricals, a subsidiary of the company, for a consideration Rs.23.56 crore from 51% to 67.33%.
About The Financial Results
This Tata company has posted a set of encouraging results for the second quarter ended 30th September 2009. Net sales was up 11% on a YoY at Rs.1098 crore. Operating profit grew 52% at Rs.133 crore. Net profit was up 50% at Rs.92 crore. Cost cutting in manufacturing helped boost the margins.
Its Electro-mechanical projects and services unit showed a 22% rise in revenue at Rs.769 crore. On the other hand, engineering unit continued to feel the brunt of the recession and poor off take of capital goods led to this unit show a 28% lower growth in revenue. This is also the unit which supplies textile machineries and given the state of the textile sector, naturally this unit has taken a hit. The Unitary cooling system unit showed a 27% rise in revenue.
The company procured raw materials till Q2 at prices which were negotiated at the beginning of the year and now, from Q3 onwards, the higher costs would have some impact on the costs.
About The Stock
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Nifty has just been pushed off the "Cliff"...more to come. Any one who sold all his holdings can sit on his "CASH" and plan at leisure what to buy..and in the mean time add to his wealth by writing calls on every rises... Looking at the intra movements and playing the small moves, you may develop amnesia on the bigger picture..Let us allow the market to find some bottoms, see more "REDS" in week as we are seeing in the "day"..
A pause may be @ 4577 zone. This kind of relentless selling can only be "Fund Selling" after duping all investors to buy for "Long term" in various medium. Notice how Nifty has been holding on to the 5-day avg(Blue) and climbing down steadily..(I like to call it Indian rope trick)
This shows in context the fall (small so far) compared to the relentless buying of 12 months. Excesses are being wiped out..
Now it has closed below week low ema too..
A pause may be @ 4577 zone. This kind of relentless selling can only be "Fund Selling" after duping all investors to buy for "Long term" in various medium. Notice how Nifty has been holding on to the 5-day avg(Blue) and climbing down steadily..(I like to call it Indian rope trick)
This shows in context the fall (small so far) compared to the relentless buying of 12 months. Excesses are being wiped out..
Now it has closed below week low ema too..
TREMORS AND AFTERSHOCKS
As I wrote last week, NIFTY broke down from the broadening formation thunderously on 27 Oct 09, sending tremors all around. The aftershocks continued till the expiry to close at 4750. The start of Nov expiry too; was not encouraging. It closed till lower.
Now what, it is moving towards the extended target of 4650-4635. Technically, this could be the final target of 'this piece" of the drop. After the touchdown to the above levels, it is lily to retrace upwards /moving sideways for a couple of weeks. The retacement target could be till 4880.
However, the dark cloud will still remain and have a potential to move to 4530-4400, which we will analyze next week after assessing the price action.
Trading Signals: Many of you must have already utilized the fall and made a killing profit. The FTALARMS have given the subscribers over 380 points gain in NIFTY futures. Needless to say that the four stocks whose signals were given through FTALARMS also has given handsome gains to the subscribers.
Did is say plastically? Yes. Am i wrong? No. Supreme industries is one of the very few companies in India which has made the most of products that can be made using plastics. Their product profile include Moulded Furniture, all kind of chairs, tables, stools, Material handling products like the crates that you can see in retail outlets, bins, Plastic taurpalins which finds its usage in agriculture, engineering, packaging, Hi performance packing films, industrial molded products like containers, lids, plates, protective packaging materials and almost all kinds of pipes for all types of usage.The Pipes division contribute for more than 40% of the revenues while the industrial, packaging and consumer products contribute for something like 21, 27 and 12% respectively. However, the company makes most of the margins from the consumer products division. Unlike many plastic pipe manufacturers, the company is mostly dependent on the domestic markets with less than 10% of the revenues coming from exports.
Pipe products from the company find extensive usage in irrigation, housing, water supply, plumbing, drainage and many other things to do with water. The country is witnessing a trend of replacement of metal pipes with high quality and low cost plastic pipes and this will auger well for this division. The company has increased its capacities at its plants and the total capacity is expected to rise from 180,000 MT to 330,000 MT.
The packing divisions caters to many industries like the food items, textitles, healthcare, FMCG, sporting goods etc. In the industrial segment, the company manufactures dashboards and various other plastics based auto components. Tata motors and Mahindra are some of its clients. The company also caters to industrial segment with its crates and Pepsi and Coke are some of its major customers.
The company is a market leader in the furniture segment and it should have at least 50 types of offering in this space. The company produces over a million pieces of furniture items every month from its plants. The company has more than 170 franchisee stores for display and sale.
All the segments to which the company is catering are witnessing strong demand at least currently and the demand is expected to continue without any major declines. The consumer segment is growing at around 15%. The pipes division grew at a strong 45% in FY 09 by volumes and the same growth rates can be expected for the next 2 to 3 years placing the thrust on agri and water segment industry.
Before summarizing the strong growth opportunities for the company, i would like to write something on the company's margins. The company and its prospects are cyclical. More cyclical on the input front rather than on the output front. The company made profits of 60 crore in the June quarter on revenues of around 563 crore. Just 2 quarters back, in the Dec quarter, the company posted a loss of 1.50 crore on total revenues of 351 crore.
So, What has happened? The company may has been affected by the lag effect on its raw material cost. Polypropylene is one of the key raw materials for the company and it along with PVC resin contributes for around 80% of the raw material cost. Polypropylene prices fell from 1800 US in June 2008 to around 600 USD in Dec 2008, falling steeply during the last few months. The fall in sales was due to the reason that its clients were expecting more fall in the prices and did cancel orders. The drop in earnings may be due to a lag effect of the key raw material price. The raw material composition has declined from 61% in Dec quarter to just 45% in June quarter.
One more thing to add - The company is developing its own land at Andheri (West) and is constructing a 10 storey commercial complex and is set to be go on sale by next few month. This project will offer 2.5 lac square feet office are for sale. The estimates on the collection run into many crores and the proceeds are believed to be used for the capex plans going forward.
A strong demand for its products, huge one time income from the commercial complex, improving margins, increasing capacities, the capability to push increase in costs to the clients. One can bank on this company at least for the next 2 years.
ICICI Bank is set to come out with earnings report today. Technically, the stock is at decisive level and can go either way.
ICICI Bank: At important support level
ICICI Bank has been one of the breakout stocks of last 1.5 months. It managed a smart breakout above 780 and rallied to levels of 960+ before cooling off.
Source: ChartAlert [www.chartalert.com]
The stock is now back to the same levels from where it rallied. It is also at 100 dma. The result reaction may set the trend for the stock. There are three probabilities -
Stock breaks 100 dma: If it collapses from current levels because of any reason - expect even sharper decline to 200 dma which currently stands at 615.
Stock turns sideways between 100 dma and 50 dma: It means stock may become range bound between 770 and 840.
Stock resumes uptrend [unlikely]: Stock may strongly rally from 770 to 1000+ levels. For this scenario to happen, the stock may need some Corporate development help like value unlocking, new business initiatives etc.
So, keep an eye on the stock and see how it reacts to earnings because that will decide where stock will head next.
FOR DATE 3-11-2009
SCRIP = MCDOWELL & COMPANY LIMITED (NSE),
SCRIP CODE = MCDOWELL-N,
PREVIOUS CLOSE = 1069.15,
STOP LOSS = 1042,
TARGET = 1160.
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CHART AS ON 30-10-2009THE RSI SHOWS A POSITIVE CROSSOVER.
TECHNICAL ANALYSIS AND PORTFOLIO MANAGEMENT SUGGESTS THIS COUNTER GOOD FOR A SHORT TO MEDIUM TERM RANGE.
