2 September 2010 Morning Market Updates:

2 September 2010 Morning Market Updates:

Today's Recommendations :
Note : Follow Buy Recommendations in Positive Market Bias.

Buy Nifty Fut sl 5454 T 5510



Hold Long M&M Abv 637 sl 626 T 652


Hold Long Rpower sl 154 T 159


Hold Long LT sl 1828 T 1849


Hold Long Ster sl 150 171 P


Buy Axisbank sl 1344 T 1361


Buy Cairn Abv 342 sl 338 T 346


Buy TCS Abv 861 sl 854 T 871


Stocks that are in news today:


Idea Cellular -
-Idea Cellular denied 3G spectrum in Punjab: Sources
-Idea-Spice merger behind Punjab denial: Srcs
Idea paid Rs 322 crore for Punjab 3G
All 3G winners given nod for commercial use

Reliance Broadcast
-Board approves preferential allotment at Rs 85/share
-To raise Rs 400 crore from promoters, investors


Cement sales numbers
-UltraTech August cement sales up 2.4% at 2.96 mt (YoY) ((Including the demerged Grasim cement biz also))
-ACC August cement sales at 1.57 mt versus 1.65 mt (YoY)
-Ambuja Cement: August cement sales flat at 1.42 mt (YoY)
-JP Associates August cement sales up 51% at 1.08 mt (YoY)

Ministry of Statistics says
-Q1 GDP growth of 8.8% remains unchanged
-Q1 GDP at market price (in constant terms) to be restated
-GDP at market prices revised at 10.02% vs 3.66% for Q1’Fy11


Ex-Dates
-Apollo Hospital: Ex-Split 2:1
-Federal Bank: Ex-Dividend @ Rs.5
-Gail : Ex-Dividend @ Rs 5.5/share
-State Bank of Mysore : Ex-Rights @ 3:10
-Unitech : Ex-Dividend @ Rs 0.2/share


Essar Group says:
-Essar completes acquisition of AGC Networks
-Essar stake in AGC at 79.13% post open offer
Aegis acquired 59.13% in Avaya in May
-AGC Networks to function separately post closure of transaction
Other stocks and sectors that are in news today:
-Wipro appoints Rishad Premji as chief strategy officer
-Hero Honda August total sales at 4.24 lakh units versus 4.15 lakh units (YoY)
-Aegis Logistics: Approves fund raising Rs 100 crore via equity instruments, stock split in ratio of 5:1
-Unity Infraprojects bags orders worth Rs 103.3 crore
-Steel companies hike prices by Rs 1000-1500/tn
-RIL hikes stake in EIH to 14.8%
-GERC forces Adani to supply power at Rs 2.35/unit for 25 years, order seen a big hit for company – DNA
-AstraZeneca, Aurobindo near supply deal – DNA (there was a buzz of company selling 10% stake to AstraZeneca)
-Alanjit in talks with Oberois to sell 4% stake – Agencies F&O cues:

F&O Cues :
Futures Open Int up Rs 2313 crore
Options Open Int up Rs 3543 crore
Nifty Futures add 6 lakh shares in Open Int
Nifty Futures at 6-point premium
Nifty Open Int PCR at 1.41 versus 1.47
Nifty Puts add 17 lakh shares in Open Int
Nifty Calls add 38 lakh shares in Open Int
Nifty 5500 Put adds 11 lakh shares in Open Int
Nifty 5400 Put adds 11 lakh shares in Open Int
Nifty 5100 Put sheds 11 lakh shares in Open Int
Nifty 5700 Call adds 10.5 lakh shares in Open Int
Stock Futures add 2.2 crore shares in Open Int
FIIs in F&O on September 01
Net buy Rs 667 crore in Nifty Futures
Net sell Rs 239 crore in Nifty Options
Net buy Rs 260 crore in Stock Futures
Market cues:
NSE F&O Open Int was up by Rs 5856 crore at Rs 1.57 lakh crore
As per provisional data of September 1, FIIs were net buyers of Rs 360 crore; DIIs were net buyers of Rs 169 crore in cash markets. FIIs were net buyers of Rs 683 crore in F&O.
 
US Market Updates :

U.S. benchmarks rebound nearly 3% after dour August.Latest economic data offset double-dip concerns ahead of Friday's jobs report.U.S. stocks surged Wednesday after a reading on manufacturing activity climbed in August, defying expectations of a decline and helping to calm worries about the direction of the economy. The Dow Jones Industrial Average The Nasdaq Composite Index climbed 62.81 points, or 3%, to end at 2,176.84. rose 254.75 points, or 2.5%, to 10,269.47, with all 30 of its components tallying gains.
In economic data, the August ISM manufacturing index, which came in at 56.3. Its increase from 55.5 from July was way better than expectations of a decline to 52.9.

Construction spending, meanwhile, slumped one percent in July; the lowest level in 10 years. Also, a report from ADP and macroeconomic advisors showed the private sector lost 10,000 jobs from July to August largely due to a drop of 40,000 jobs in the goods-producing sector.
US auto sales too suffered in August. Ford's fell 7.1% year-on-year and General Motors sales slipped 7.3% among their core brands.
In key data to watch out today - initial jobless claims is expected to decline to 470000 compared to 473000 the previous week, which saw the second biggest decline of the year. However, much of this expected decline probably reflects the expiration of benefits.
July factory orders are expected to rise to 0.3% after it dipped to negative territory in June. Pending home sales & chain store sales numbers are the other key data to watch out for.
In the currency space the dollar fell against major currencies after upbeat data around the world boosted investors' appetite for riskier assets.
In the commodity space oil prices spiked nearly 3% close to the USD 74 mark supported by a strong rally in the US equities and positive economic data.
Base metals gained and copper rallied as manufacturing in the US and China grew faster than economists estimated.
Gold however turned lower after an initial rally above USD 1,250 an ounce fizzled. Strong US manufacturing data boosted investor appetite for riskier assets such as stocks, dampening the yellow metal's safe haven appeal.
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