GOOD MORNING!!!
THE KEY BENCHMARK INDICES EDGED LOWER IN CHOPPY TRADE, SNAPPING LAST TWO DAYS' GAINS AFTER RAIL MINISTER MAMATA BANERJEE ANNOUNCED A POPULIST RAIL BUDGET FOR 2010-2011. WEAK GLOBAL EQUITIES AND LOWER US INDEX FUTURES ALSO WEIGHED ON INVESTOR SENTIMENT. AUTO STOCKS DECLINED ON FEARS OF HIKE IN EXCISE DUTY IN UNION BUDGET 2010-2011 LATER THIS WEEK. REALTY STOCKS EDGED HIGHER. BUT CONSUMER DURABLES STOCKS FELL. MAMATA BANERJEE PRESENTED THE SECOND RAILWAY BUDGET OF THE UNITED PROGRESSIVE ALLIANCE GOVERNMENT-II IN LOK SABHA TODAY, 24 FEBRUARY 2010 LAYING EMPHASIS ON THE SOCIAL RESPONSIBILITY AND FINANCIAL VIABILITY. THE RAIL MINISTER KEPT PASSENGER FARES AS WELL AS FREIGHT RATES UNCHANGED. THE FREIGHT RATE FOR FOOD GRAINS AND KEROSENE WAS CUT BY RS 100 PER WAGON. THE RAIL MINISTER SAID THE SERVICE CHARGE ON AIR-CONDITIONED FARES WILL BE CUT. MAMATA'S POPULIST RAIL BUDGET HAS MANY SOCIAL WELFARE PLANS AND JOB-GENERATION SCHEMES TOO. BANERJEE SAID THAT IT IS TIME FOR PRIVATE PARTNERSHIP IN INDIAN RAILWAYS, BUT SAID THAT THE RAILWAYS WILL NOT BE PRIVATISED. SHE SAID THAT CLEARANCE TO PRIVATE INVESTMENT WILL BE PROVIDED IN 100 DAYS TO SPEED UP PROJECTS. BANERJEE APPEALED TO BUSINESS HOUSES TO JOIN HANDS FOR BUILDING PARTNERSHIP WITH RAILWAYS. PRESENTING THE RAILWAY BUDGET SHE SAID A SPECIAL TASK FORCE WILL BE SET UP FOR EARLY CLEARANCE OF PROJECTS. THERE IS A TARGET TO IMPLEMENT 1,000 ROUTE KILOMETER (KM) IN ONE YEAR AND 25,000 KM IN THE VISION 2020 DOCUMENT, SHE ADDED. INDIAN RAILWAYS PLANS TO SPEND RS 1124 CRORE ON TELECOM AND SIGNALLING IN FISCAL 2010/11. IT WILL ALSO SPEND RS 5000 CRORE ON LAYING NEW TRACKS DURING THE FISCAL. THE RAIL MINISTER SAID THE NEED OF THE HOUR IS TO INVITE DOMESTIC INVESTMENTS THROUGH PUBLIC PRIVATE PARTNERSHIP. AS PART ITS EFFORTS TO GET MORE FREIGHT FROM HIGHWAYS AND ADDRESS SHORTAGE OF WAGONS, BANERJEE TODAY PROPOSED TO INTRODUCE A MODIFIED WAGON INVESTMENT SCHEME FOR HIGH-CAPACITY GENERAL AND SPECIAL PURPOSE WAGONS. A DETAILED SCHEME IN THIS REGARD WILL BE NOTIFIED LATER. TAKING FURTHER THE CONCEPT OF MEGA-LOGISTICS HUB ANNOUNCED IN HER LAST BUDGET SPEECH, BANERJEE SAID THE RAILWAYS HAS DECIDED TO SET UP AUTOMOBILE AND ANCILLARY HUBS AT 10 LOCATIONS IN THE COUNTRY. THE FIRST OF SUCH HUBS WAS LAUNCHED IN SHALIMAR CLOSE TO KOLKATA LAST YEAR . COMING BACK TO EQUITIES, THE MARKET CUT LOSSES AFTER AN INITIAL SLIDE TRIGGERED BY WEAK ASIAN STOCKS. THE MARKET PARED GAINS AFTER HITTING FRESH INTRADAY HIGH IN MORNING TRADE. IT MOVED BETWEEN POSITIVE AND NEGATIVE TERRAIN IN MID-MORNING TRADE. THE MARKET MOVED IN A NARROW RANGE LATER. THE MARKET DRIFTED LOWER IN AFTERNOON TRADE AFTER THE PRESENTATION OF THE RAIL BUDGET IN PARLIAMENT. THE MARKET RECOVERED FROM LOWER LEVEL IN MID-AFTERNOON TRADE. THE EXPIRY OF THE NEAR-TERM FEBRUARY 2010 DERIVATIVES CONTRACTS ON THURSDAY, 25 FEBRUARY 2010 IS LIKELY TO ADD TO VOLATILITY ON THE BOURSES. ROLLOVER IN NIFTY FUTURES FROM FEBRUARY 2010 SERIES TO MARCH 2010 SERIES STOOD AT ABOUT 35% AT THE END OF TUESDAY'S TRADING. INDIVIDUAL STOCKS WHERE ROLLOVER IS HIGH ARE GTL, REC, INDIA CEMENTS, GTL INFRASTRUCTURE AND M&M. STOCKS WHERE ROLLOVER WAS LOW TILL TUESDAY INCLUDE AMBUJA CEMENTS, TATA CHEMICALS, DISH TV, ADITYA BIRLA NUVO AND ACC. THE MARKET SENTIMENT REMAINS CAUTIOUS AHEAD OF THE UNION BUDGET 2010-11 WHICH WILL BE TABLED IN THE PARLIAMENT ON 26 FEBRUARY 2010. THE ECONOMIC SURVEY WILL BE TABLED IN THE PARLIAMENT ON 25 FEBRUARY 2010.
TODAY MARKETS MAY OPEN FLAT. IF NIFTY TRADES BELOW 4848 LIKELY TO COME DOWN TO 4800 AND BREAK BELOW THIS LEVEL WOULD LEAD NIFTY TO 4760 AND ANY CLOSE BELOW 4800 IS CONSIDERED TO BE VERY WEAK ON NIFTY. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 4897 ONE IS ADVISED TO GO FOR BUYING AND IF NIFTY CLOSES ABOVE THIS POINT ONE CAN TAKE LONG POSITION WITH LIMITED RISK AND IF NIFTY CLOSES ABOVE 4944. STAY CAUTIOUS BEFORE BUDGET BY HEDGING YOUR FUNDS.
BUY IBREAL SL 154 TGT 168/172/175
BUY HCC SL 132 TGT 140/141
BUY EDUCOMP SL 684 TGT 704/711/719
THE KEY BENCHMARK INDICES EDGED LOWER IN CHOPPY TRADE, SNAPPING LAST TWO DAYS' GAINS AFTER RAIL MINISTER MAMATA BANERJEE ANNOUNCED A POPULIST RAIL BUDGET FOR 2010-2011. WEAK GLOBAL EQUITIES AND LOWER US INDEX FUTURES ALSO WEIGHED ON INVESTOR SENTIMENT. AUTO STOCKS DECLINED ON FEARS OF HIKE IN EXCISE DUTY IN UNION BUDGET 2010-2011 LATER THIS WEEK. REALTY STOCKS EDGED HIGHER. BUT CONSUMER DURABLES STOCKS FELL. MAMATA BANERJEE PRESENTED THE SECOND RAILWAY BUDGET OF THE UNITED PROGRESSIVE ALLIANCE GOVERNMENT-II IN LOK SABHA TODAY, 24 FEBRUARY 2010 LAYING EMPHASIS ON THE SOCIAL RESPONSIBILITY AND FINANCIAL VIABILITY. THE RAIL MINISTER KEPT PASSENGER FARES AS WELL AS FREIGHT RATES UNCHANGED. THE FREIGHT RATE FOR FOOD GRAINS AND KEROSENE WAS CUT BY RS 100 PER WAGON. THE RAIL MINISTER SAID THE SERVICE CHARGE ON AIR-CONDITIONED FARES WILL BE CUT. MAMATA'S POPULIST RAIL BUDGET HAS MANY SOCIAL WELFARE PLANS AND JOB-GENERATION SCHEMES TOO. BANERJEE SAID THAT IT IS TIME FOR PRIVATE PARTNERSHIP IN INDIAN RAILWAYS, BUT SAID THAT THE RAILWAYS WILL NOT BE PRIVATISED. SHE SAID THAT CLEARANCE TO PRIVATE INVESTMENT WILL BE PROVIDED IN 100 DAYS TO SPEED UP PROJECTS. BANERJEE APPEALED TO BUSINESS HOUSES TO JOIN HANDS FOR BUILDING PARTNERSHIP WITH RAILWAYS. PRESENTING THE RAILWAY BUDGET SHE SAID A SPECIAL TASK FORCE WILL BE SET UP FOR EARLY CLEARANCE OF PROJECTS. THERE IS A TARGET TO IMPLEMENT 1,000 ROUTE KILOMETER (KM) IN ONE YEAR AND 25,000 KM IN THE VISION 2020 DOCUMENT, SHE ADDED. INDIAN RAILWAYS PLANS TO SPEND RS 1124 CRORE ON TELECOM AND SIGNALLING IN FISCAL 2010/11. IT WILL ALSO SPEND RS 5000 CRORE ON LAYING NEW TRACKS DURING THE FISCAL. THE RAIL MINISTER SAID THE NEED OF THE HOUR IS TO INVITE DOMESTIC INVESTMENTS THROUGH PUBLIC PRIVATE PARTNERSHIP. AS PART ITS EFFORTS TO GET MORE FREIGHT FROM HIGHWAYS AND ADDRESS SHORTAGE OF WAGONS, BANERJEE TODAY PROPOSED TO INTRODUCE A MODIFIED WAGON INVESTMENT SCHEME FOR HIGH-CAPACITY GENERAL AND SPECIAL PURPOSE WAGONS. A DETAILED SCHEME IN THIS REGARD WILL BE NOTIFIED LATER. TAKING FURTHER THE CONCEPT OF MEGA-LOGISTICS HUB ANNOUNCED IN HER LAST BUDGET SPEECH, BANERJEE SAID THE RAILWAYS HAS DECIDED TO SET UP AUTOMOBILE AND ANCILLARY HUBS AT 10 LOCATIONS IN THE COUNTRY. THE FIRST OF SUCH HUBS WAS LAUNCHED IN SHALIMAR CLOSE TO KOLKATA LAST YEAR . COMING BACK TO EQUITIES, THE MARKET CUT LOSSES AFTER AN INITIAL SLIDE TRIGGERED BY WEAK ASIAN STOCKS. THE MARKET PARED GAINS AFTER HITTING FRESH INTRADAY HIGH IN MORNING TRADE. IT MOVED BETWEEN POSITIVE AND NEGATIVE TERRAIN IN MID-MORNING TRADE. THE MARKET MOVED IN A NARROW RANGE LATER. THE MARKET DRIFTED LOWER IN AFTERNOON TRADE AFTER THE PRESENTATION OF THE RAIL BUDGET IN PARLIAMENT. THE MARKET RECOVERED FROM LOWER LEVEL IN MID-AFTERNOON TRADE. THE EXPIRY OF THE NEAR-TERM FEBRUARY 2010 DERIVATIVES CONTRACTS ON THURSDAY, 25 FEBRUARY 2010 IS LIKELY TO ADD TO VOLATILITY ON THE BOURSES. ROLLOVER IN NIFTY FUTURES FROM FEBRUARY 2010 SERIES TO MARCH 2010 SERIES STOOD AT ABOUT 35% AT THE END OF TUESDAY'S TRADING. INDIVIDUAL STOCKS WHERE ROLLOVER IS HIGH ARE GTL, REC, INDIA CEMENTS, GTL INFRASTRUCTURE AND M&M. STOCKS WHERE ROLLOVER WAS LOW TILL TUESDAY INCLUDE AMBUJA CEMENTS, TATA CHEMICALS, DISH TV, ADITYA BIRLA NUVO AND ACC. THE MARKET SENTIMENT REMAINS CAUTIOUS AHEAD OF THE UNION BUDGET 2010-11 WHICH WILL BE TABLED IN THE PARLIAMENT ON 26 FEBRUARY 2010. THE ECONOMIC SURVEY WILL BE TABLED IN THE PARLIAMENT ON 25 FEBRUARY 2010.
TODAY MARKETS MAY OPEN FLAT. IF NIFTY TRADES BELOW 4848 LIKELY TO COME DOWN TO 4800 AND BREAK BELOW THIS LEVEL WOULD LEAD NIFTY TO 4760 AND ANY CLOSE BELOW 4800 IS CONSIDERED TO BE VERY WEAK ON NIFTY. ON THE POSITIVE SIDE IF NIFTY TRADES ABOVE 4897 ONE IS ADVISED TO GO FOR BUYING AND IF NIFTY CLOSES ABOVE THIS POINT ONE CAN TAKE LONG POSITION WITH LIMITED RISK AND IF NIFTY CLOSES ABOVE 4944. STAY CAUTIOUS BEFORE BUDGET BY HEDGING YOUR FUNDS.
BUY IBREAL SL 154 TGT 168/172/175
BUY HCC SL 132 TGT 140/141
BUY EDUCOMP SL 684 TGT 704/711/719
