makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 07.05.2010 FRIDAY

Friday, May 7, 2010

MARKET ENDED 07.05.2010 FRIDAY

WERE TODAY'S INDEX GAINERS

MARKET ENDED 07.05.2010 FRIDAY

SENSEX 16769.11 -218.42

NIFTY 5018.05 -72.80

NASDAQ 2402.29 -21.96

DJIA 10868.12 -58.65

RS/$ 44.40 -00.53

The Indian stock market ended in the negative territory on Friday, as bearish sentiments in global markets with concerns of sovereign debt crisis in the Europe were spiked with a sharp sell-off in the US.
Back home, the fall in benchmarks was capped as investors bought shares of index heavyweight Reliance Industries after the company won the gas dispute case against RNRL. Meanwhile, shares of Anil Ambani Group were beaten down badly.
The three-member bench presided by Chief Justice KG Balakrishnan passed the judgment that the Memorandum of Understaning between the Mukesh Ambani and Anil Ambani is not legally binding. The bench has asked the two parties to renegotiate the gas price in next 6 weeks time.
We reiterate our Buy on RIL with a 12-month SOTP based price target of Rs 1200. We note that our current price target does not include the potential upside from the court case nor does it include the cash flows from the recently closed Atlas JV with NPV of ~US$2.2 bn or Rs 33/share.
National Stock Exchange’s Nifty ended at 5018.05, down 72.80 points or 1.43 per cent. The index touched a high of 5085.65 and low of 4984.60 in today’s trade.
Bombay Stock Exchange’s Sensex closed at 16769.11, down 218.42 points or 1.29 per cent. The index touched intra-day high of 16939.58 and low of 16684.13.
Market is near major support of 4800-5000. There are chances that it will bounce back near these levels. Investors should look for investments opportunities in frontline stocks while traders should avoid taking contrarion calls and follow the market trend

BSE Midcap Index was down 2.54 per cent and BSE Smallcap Index moved 3.01 per cent lower.
Amongst the sectoral indices, BSE Realty Index was down 4.32 per cent, BSE Bankex fell 3.26 per cent and BSE IT Index was down 2.31 per cent. BSE Oil&Gas Index was up 0.69 per cent.
Reliance Infrastructure (-7.01%), Tata Motors (-6.40%), DLF (-4.41%), SBI (-3.61%) and Sterlite Industries (-3.46%) led the Sensex decline.
RNRL is showing a lot of weakness and should be avoided whereas Reliance Power is a buy at current levels. The stock has managed to sustain Rs 130 levels. One can take investment call in the stock at current levels.
Shares of Reliance Power were hit as it was relying on RNRL for gas supply. Now it will have to buy the gas at higher price to run the plant.
Reliance Infrastructure is weak and near to its major support of Rs 950. If it breaks this support then it can even slip to Rs 800 levels
Reliance Industries (2.27%), HUL (0.99%), M&M (0.76%) and ONGC (0.23%) were the only Sensex gainers.
RIL has shown good buying support at Rs 980 levels. It is going to outperform in next 2-3 months. The stock can touch Rs 1150 on higher side if the market holds above 4800-5000 levels
Market breadth was negative on the NSE with 2,332 declines against 537 advances.