Closing Bell: Stock Market For Today

"Stock Market"

Finally stock market recovered after showing high volatility throughout the day. Nifty closes higher for third consecutive session.Indian equity benchmarks maintained its uptrend for third consecutive session amid a choppy trade - the Nifty touched the 5500-mark for the first time in last seven sessions in an intraday trade, supported by oil & gas, financial, telecom, Anil Dhirubhai Ambani Group, cement and power companies' shares.

The 30-share BSE Sensex went up 71.60 points or 0.39%, to end at 18,273.80. It provided some relief for traders. 

Here is a quick summary of stock market for 15th Feb'11:
Sensex:18273(+71.60pts)
Nifty:5481(+25pts)

Top Gainers (NSE):

• Reliance Capital
• Reliance Communication Ltd.
• Kotak Mahindra Bank
• Punjab National Bank
• Reliance Power Ltd.

Top Losers (NSE):

• Jaiprakash Associates
• Hindalco Industries
• DLF Ltd.
• BHEL
• L & T 

Top Gainers (BSE): 

• Hindustan Copper
• Jai Corp Ltd.
• Reliance Capital
• Pantaloon Retail
• LIC Housing Finance

Top Losers (BSE):

• Jubilant Life Science
• Indian Hotels Corp.
• Sun TV Network Ltd.
• Unitech Ltd.
• Shree Renuka Sugars

Top 10 "Hot Stocks" For Today 15th Feb

"HOT STOCKS"

Here are the Hot Stock Pics for Today: 

1. HUL- puts lever house in Mumbai on block again, eyes Rs 500 crore. Consumer products major Hindustan Unilever has actively sounded off buyers for its previous headquarters Lever House in south Mumbai after earlier opting to lease the over 50-year old prime property.The stock was at Rs 274.55, up 0.51 per cent on the NSE. It touched a high of Rs 276.20 and low of Rs 273 in trade so far. That is the reason why HUL is in news today
2. Jaiprakash Power Venture-Again the big stock pick for today is Jaiprakash Power Venture.Jaiprakash Power Venture (JPVL) will merge two of its subsidiaries, Bina Power Supply Company and Jaypee Karcham Hydro Corp, with itself.
3. BHEL-State-owned BHEL on Monday said it has bagged an USD 436 million (approximately Rs 20 billion) contract for setting up a gas-based power project in Yemen.That deal makes it hot stock for today.
4. Sun TV-Sun TV which is the Owner of  Aircel , deal under lens as investigators are examining the transaction of Rs 830 crore pumped in Sun Direct TV. It pumped Sun TV's stocks.
5. SAIL, ONGC - stake sale may be further delayed on account of adverse market conditions.The government aims to raise Rs.40,000 crore in the fiscal ending 31 March by selling its shares in state-owned firms to the public, with the SAIL and ONGC offers expected to garner Rs.18,000 crore.
6. RPG Group-ties up USD 900 million debt to acquire world’s second largest player Evonik’s carbon black business. That makes its stock in news today.
7. Sterling Holiday- resorts plans to raise Rs 120 crore through QIP or FCCB or a mix of both in the next 18 months
8. Nestle India- Nestle India planning for investment makes it hot stock for today . It is is ramping up production facilities to invest Rs 900 cr over the next few months may also hike prices to beat inflation.
9. Hero Motors-Auto components manufacturer Hero Motors on Monday said it had sold a stake of 17.6% in Munjal Kiriu Industries, a joint venture with Japan`s Kiriu Corporation.
10. Accel Frontline-Chennai-based Accel Frontline, an end-to-end IT services provider, has entered into a pact with Swedish firm Inswedco AB to offer on-site and off-shore technology professional services to the Scandinavian market.

Inflation Report for Feb'11

"Inflation"

Government estimated 8.6% economic growth but inflation worries. The government confirmed  economic growth of 8.6% for  the current fiscal year ending in march, compared to 8% increase in the previous fiscal year. The higher growth also comes with a sharp rise in current account deficit and a rise in inflation to above 8%. 

Finance Minister Pranab Mukherjee said despite the challenges on trade balance and inflation “8.6% economic growth is quiet encouraging."

India’s economy is running close to overheating and future economic growth is likely to be decreased unless the government shows its ability to improve food supplies and control inflation. 
Stock market is also in  pressure because the situation is really depressing. All sectors of stock market: equity market, futures market, intraday trading and commodity market showing the high level of volatility.

India food inflation declines to 13.07% on Feb 10, 2011:-

As for food inflation, it has remained high during the course of January before declining to a seven-week low of 13.07% towards the end of the month as prices of potatoes and pulses eased.Food inflation, which snapped the three-week rising trend, fell by nearly 4 percentage points from 17.05 per cent in the week ended January 22. It was 22.08 per cent a year-go.  

India's headline annual rate of inflation, based on the monthly Wholesale Price Index (WPI), declined slightly to 8.23 per cent for January this year as compared to 8.43 per cent for December and 8.53 per cent in the  month of November last year.

The statement said the official WPI for all Commodities (base: 2004-05=100) for January 2011 rose by 1.2 per cent to 145.9 from 144.1 for the previous month.

Data from  Government on February 10 had shown that the food inflation rate had eased to 13.07 per cent for the week ended January 29 from 17.05 per cent in the previous week, thanks mainly to lower prices for onions and vegetables.

 

 

How To Trade In Commodity Market For Making Profit

"Commodity Market"

It is interesting sometimes to watch new stock traders trying to make a profit from trading without applying good trading strategy. Trying to trade the stock market without proper knowledge is one sure way to lose hard-earned money. This becomes more dangerous if the trader is trading in commodity market as this market is considered to be the most volatile market.

The fundamental fact about commodities that all traders must understand is  "incredible volatility".

The fluctuation per day averages about 1 %. Multiplied by a leverage factor of 20, the trader can anticipate at least a 20% profit or loss per day.

But anyone who actively trades gold, diamonds, or antiques is probably a good candidate for commodities.

There are numerous commodity trading strategies available :-

1. Movements during the is full of emotions. If you are in loss, you have to adopt a very unemotional attitude toward the loss.

2.should not call your broker all day.  Have the confident sentiment in the market. The average trader must increase the time horizon for holding a contract  before getting the chance to make a profit.  

3. Should not try to doubling up after a gain or loss. When you do this just a small loss will wipe you out. 

4. Looking for bargains is a mistake in the commodities market. When prices drop, don't buy. It is better to short when things start to look cheap. 

Commodity markets and the commodity futures market are tightly regulated market places that trade everything from corn to gold.

The versatility of the commodity market creates innovation and growth, as well as volatility, risk and heavy regulation.

Stock Trading Strategy for Today

"Bearish vs Bullish"

 Yesterday, trading took place between high volatility hence it closed in red. There was selling pressure observed in Technology and Reality sectors while Auto and Power sectors witnessed moderate buying in stock market.
  The Nifty closed at 5,225 down 28 points after making an intra-day high of 5,272 and The Sensex extended further losses due to aggressive selling force seen across board it was at 17,463 down 129 points after making an intra-day high of 17,603 in the stock market. 
  The direction of  stock market for the day is not supportive at all. Pressure is all around in the market. Investors are worried and it is expected they will continue to sell part of their holdings with every fall , aggressively. 
  The interpretation of the movement of stock market by disheartened investors went in vain as the trouble of stock market remained the same.

  A dip in food inflation to a 7-week low of 13.07% for the week ended January 29, failed to bring any cheer. Rough calculations show that stock market wealth has crashed by over Rs11,000bn  since the beginning of this calendar year.

  But today is another day and we expect some positive results from stock market.The NSE Nifty is expected to open in a constricted range and trade with caution ahead of the IIP data. 

  We may see a sideways movement between the first Support 5202 and Critical level 5282 till the IIP reading is out. Any negative surprise in the same may force Nifty to break 5202 and move towards the Major Short-term Support at 5162. If
this  level  holds,  we  may  see  some  recovery  in  the  market and that would surely be the sigh of relief.