Business Daily from THE HINDU group of publications
Sunday, August 06, 2006
Markets (August 04)
BSE Sensex10866.51(-56.65)
S&P CNX Nifty3176.75 (-13.25)
US Dollar (Buy/Sell)46.62 (-0.08)


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MARKETS

MUTUAL FUNDS
Fund Talk
a) There is so much of talk about mutual fund investing overseas. Will this benefit small investors? Is there any such scheme available and whether we can invest for long term? b) Will the rule "Buy Low-Sell High" apply for starting a SIP ... More

Reliance Growth: Managing mid-cap churn
This week, we examine the churns made by a fund, which invests predominantly in mid-caps — a segment that bore the brunt of the decline in May. We take a look at how the portfolio of Reliance Growth was managed over April-June 2006. The ... More

Update
Mr Vinay Kulkarni, Senior Fund Manager of Deutsche Asset Management has resigned from the services of the company with effect from July 28, 2006. Mr Suresh Soni, Senior Fund Manager, will now manage DWS Alpha Equity, DWS Investment ... More

STOCK MARKETS
The boosters and the downers
While strong demand from the infrastructure sector and the general economic buoyancy helped certain companies boost India Inc's performance over the quarter, others, hit by margin pressures and commodity uncertainties, have been the blots on the scor ecard. More

Index Outlook
The Indian markets spent the last week in a quiet and contemplative mood. There were no fireworks on the upside; nor was there any drastic fall. The Sensex closed the week with a gain of 1.7 per cent. Now that the deluge of results is behind ... More

ONGC
The stock moved between Rs 1,150 and Rs 1,250 in what looks like a positive consolidation phase last week. The volumes were thin as in the rest of the pivotals. The target of the C wave from the low of Rs 930 falls at Rs 1,215 and then Rs ... More

Consolidation in Infosys
Infosys had a strong week, leading the rest of the market upwards. But volumes were low and negative divergence is being observed in the oscillators on the daily chart. The price has reached the upper boundary of its trading range at Rs 1,700 ... More

Tata Steel
The stock moved sideways last week. The short-term bias is turning positive, as the momentum oscillators in the daily chart are indicating that the scrip can move up further. Price action suggests a running correction in this chart, which shows ... More

Options Guide
Call option: A call option gives the buyer `the right but not the obligation' to buy the stock at a specified price on a future date. Put option: A put option gives the buyer `the right but not the obligation' to sell a stock ... More

SBI
The price moved up sharply in the early part of last week to a high of Rs 846. But selling pressure on Friday saw price falling to Rs 801. The weekly charts continue to look promising. The morning star pattern discussed last week is still ... More

Reliance Industries
The stock moved in a tight range through last week before dipping to Rs 963 on Friday. The chart continues to show traces of weakness. The resistance at Rs 1,000 is turning out to be a strong hurdle for the time being. Unless Rs 1,020 is ... More

Tata Motors
The stock got past the resistance at Rs 755 mentioned in this column last week and went on to an intra-week high of Rs 778. There is a positive divergence in 10-day ROC, which suggests further upside. The price can move on to Rs 821 and ... More

Trader's Corner
All of us are aware of the cardinal truth that trading is no path of roses. We all have to flounder, make every single mistake there is to be made until we are well hardened and cynical enough to face the ups and downs in the market. Of course, ... More

Query Corner
What will be the outlook for Gujarat Ambuja Cement in the short term? Rajamanickam Gujarat Ambuja Cement (Rs 106): The stock has made an intermediate-term low at Rs 83 in mid-June. This intermediate-term uptrend will ... More

Stock market contest winners
For the contest held during July 2006, the stock of Standard Industries posted the maximum gain of 44.50 per cent. Its share price rose from Rs 19.55 to Rs 28.25. Out of 1,010 entries received, there are four winners. They are: V Jayalakshmi ... More

DERIVATIVES MARKETS
Outlook for Nifty remains bullish
More

RECOMMENDATION
Asian Paints: Buy
Investments can be considered in the stock of Asian Paints, which trades at about Rs 615. Though a valuation of about 21 times expected per-share earnings for the current fiscal is not a bargain, we believe that growth prospects are attractive ... More

Templeton India Growth: Hold
TIGF believes one should "buy at a point of maximum pessimism and sell at a point of maximum optimism". Given its contrarian strategy, the fund is more suitable for investors who would like to go against the market. More

SBI Bluechip: Hold
The objective of SBI Bluechip Fund is to invest in a diversified basket of stocks whose market capitalisation is at least equal to or more than the benchmark BSE 100. Its performance since inception has been lacklustre and only as good as the ... More

Cadila Healthcare: Buy
Scaling up of operations in the US and a turnaround of its French subsidiary next year are two key events that could bolster Cadila's bottomline in the medium term More

Marico: Buy
Growth is likely to come from newer categories. Marico now sees itself operating in the "beauty and wellness" segment rather than in hair and edible oils. More

Nalco: Hold
Firm price trends, high operating margins and the capital restructuring exercise place Nalco on a sound footing. More

Crompton Greaves: Buy
A couple of acquisitions have catapulted Crompton Greaves into the global league. The company also has access to an expanded product range, with expertise in power services and the ability to provide total solutions. More

Suzlon Energy: Hold
End-to-end energy solutions, including wind mapping, site location and freight cost-advantage, give Suzlon an edge in the domestic market. More

OUTLOOK
Market View
... the question to ask (after interest rate hike) is how higher costs of borrowing would begin to impact profit margins and expansion plans of the corporate sector. It is important to look for revenue growth in high fixed cost ... More


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