On the first day of the week, Intraday volatility was high. The market hit its lowest level in more than 4 months in early trade as Asian stocks fell. Volatility was at the forefront in morning trade as the key benchmark indices pared gains after regaining positive terrain in early trade. The market regained strength after moving between positive and negative terrain in mid-morning trade. The market pared gains in early afternoon trade. The market surged to fresh intraday high in afternoon trade. Volatility ruled the roost as the key benchmark indices regained positive after slipping into the red for a brief period in mid-afternoon trade. The market swung between gains and losses in late trade. The nifty closed flat and sensex closed up 20 points.
VIEWS FROM DIFFERENT BROKING HOUSES:
BONANZA PORTFOLIO:
"The market is expected to consolidate in a range of 5,550/5,800".
KARVY STOCK:
“The market will take cues from the global markets and is expected to open on a flat to positive note tomorrow. Trade short on bounce from 5,660-5,680 levels for targets of 5,620 and 5,600 with a stop loss above 5,735 levels”.
CANARA BANK SECURITIES (CANMONEY):
“Technically, Nifty exhibited a very volatile & ranged show in today`s session. Despite the huge volatility, Nifty maintained the sanctity of lower support levels of 5,610/5,600 and closed on flat note. Despite, having oversold status, Indices witness consolidating movement and closed with marginal gains. For the seventh consecutive session, Nifty closed below its 9, 14, 50 and 100 day`s SMA level placed at 5830, 5934, 5973 and 5951 levels; these levels may act as new resistance , in coming sessions. PCR for the session was recorded at 1.05, while VIX for the day closed at higher level of 23.57% and indicating more than average volatility in market in the forthcoming sessions. RSI (14) for the day was at 32.77 levels and MACD was below the signal line, thus combined together they are giving the signals that market may remain sideways in coming session”.
ANGEL BROKING HOUSE:
“Markets opened on a subdued note; trade in a narrow range with choppiness to close flat. On the daily chart we are observing narrow range formation which reflects indecisiveness prevailing at current levels. In coming trading session if indices trade convincingly below 18,779/5,624 levels then it may test the 200-day SMA, which is at 18,674/5,600 levels and 17,800/5,550 levels. On the upside, 19,003-19,170/5,700- 5,750 levels may act as resistance for the day”.
GABA FINANCIAL ADVISORS (PRAKASH GABA):
"Technically the market looks weak and can see further downside in the days to come as a fresh sell has been generated on the charts. The next downside target is 5,475 if it does not bounce back…from a trading point of view, I would sell rallies until 6,000 for a target of around 5,475. The market unfolded as expected and achieved our downside target of 5745 and more.
The market has a bearish pattern known as a running correction and I would not be surprised to see levels of 5,535-5,378 levels in the days to come.
From a trading point of view I would sell rallies until 5,800 for a target of around 5,535-5,378."
RESULTS:
Axis Bank has posted a net profit of Rs 8.91 billion for the quarter ended Dec. 31, 2010, a y-o-y growth of 35.88%. Total income has increased 28.78% on y-o-y basis to Rs 49,860.20 million for the quarter ended Dec. 31, 2010.
TCS Q3 net grows 30% y-o-y; sequentially 9.3%, TCS Q3 earnings rise 9.25%
VIEWS:
Anil Dhirubhai Ambani Group (ADAG) stocks tumbled after the Securities and Exchange Board of India (Sebi) after trading hours on Friday, 14 January 2011, passed a consent order with regard to its probe into possible violation of securities market norms by Anil Dhirubhai Ambani group (ADAG) companies Reliance Infrastructure (R-Infra) and Reliance Natural Resources (RNRL). Reliance Power, Reliance Capital, Reliance MediaWorks R-Infra and Reliance Communications fell by between 4.77% to 8.45%.
As per the conditions of the settlement, the two ADAG firms -- R-Infra and RNRL would not be able to invest in any listed shares in the secondary market, other than mutual funds, until December 2012 and the individuals named in the case, which includes ADAG chairman Anil Ambani, cannot invest in secondary market untill December 2011. However, this condition will not apply to primary market issuances, buybacks and open offers. RNRL has been merged with Reliance Power.
Reliance Infrastructure: This stock is forming lower top and lower bottom formation and is currently trading around 740. It has a book value of 537 and a P/E of 21 which is in line with the sector. This stock can be bought on declines with short to medium term targets 10-15 % higher than current levels.
Reliance Mediaworks: Traders may buy this stock for 160-165 for a target of 180-190. Avoid at current levels. Investors should stay away as the stock may not give any significant returns to investors.
Reliance Power: The company is still not producing anything significant. P/E is very high (121) and is trading at the rate of 138 with book value of 58. At least as of now, the stock is grossly overpriced. Stay away. Not a stock for investment. Even for trading, we cannot recommend the stock now, as it is at all time low levels, and can go down further. In the past, technically, it had left a gap of 139-141 which has been filled today, thus destroying the support available to the stock in this range.
Reliance Communications: The stock is from telecommunication sector, and is an underperformer. Surprisingly the book value is 244, when the stock is trading around 132. It can be bought around 120-125 where it has a reasonable support.
NOTE: All the above mentioned data/information/recomendations are collected from different website and composed.
