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Thursday, September 8, 2011
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MSCI Methodology Changes
MSCI to change its methodology for the treatment of securities with limited investability due to foreign ownership restrictions.
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- Within the MSCI Emerging Markets Index,
- Bharti Airtel (IN) would be partially added with an adjustment factor of 0.5
- The weight of State Bank of India (IN) would be increased through the application of an adjustment factor of 1.0 (currently at 0.5)
- The weight of ICICI Bank (IN) would also be reduced through an adjustment factor of 0.5 (currently at 1.0)
- The potential impact…
- The stocks that may get impacted due to these changes may see some demand supply movements in the stock or may be a portfolio restructuring by the funds as their weightings would change in the index though it would be applicable from November 2011.
The changes are positive for SBI and Bharti where as ICICI bank may see some pressure.
www.nangakaro.com
Daily Fundamental Snippets
OUTLOOK
Today global markets are in mixed territory and we may see a dull opening in our markets today.
The rally has been supported mainly by the positive global cues ans sustained buying by the FII's. After several bad days globally, FII flow to India has been positive whihc is a good sign for India.
We are still not out of the woods as there has been no confirmation yet and there still remains some kind of a risk that something could go wrong in the European economies and that could be complete disaster for all risk assets including our market.
Today on global front in US. President Obama Speaks on Job Creation & Fed Chairman Bernanke Speaks on Economy which the whole investor committe is keeping an eye on.
We continue with cautious view on markets.
Yesterday we relaesed a VALUE PICK - GUJARAT GAS. The company has good financial perfromance, is a consistent dividend player, low on debt and with potential growth seen in the sector and company it looks good for longer term perspective. We have a target price of 575.
Derivatives Strategist 08 SEPTEMBER 2011
Market Outlook
Nifty future continued its positive momentum and moved up towards 5150 levels. On option front, maximum Put OI is at 4700 followed by 4800 strike while maximum Call OI is at 5200 followed by 5300 strike. If Nifty future sustains above 5150 levels then it may move up towards 5200 levels. On downside if it fails to hold 5100 levels, then selling pressure may get intensified in the market towards 5050-4900 levels.
Derivatives Calls : Buy Ranbaxy and Jetairways
First Morning Technical Call
Market Outlook:
S&P CNX Nifty has gapped-up(5072-5076) and this is positive and partial Gap-down(5323-5229) closing becomes possible. Now for the day Nifty holding 5110 then 5150-5190 can be possible on higher side, below 5110 gap levels would be normally tested and if 5070 is held then recovery would be sharp. Nifty weakness would start only below 5000 levels on closing basis till then beaten down stock would give good rally. Infrastructure stock IRB- LITL- IVRCL-NCC-JPASSOCIATE-IL&FS TRANSPORT-SINTEX- along CEMENT stock looks strong to rally if market supports. IT stocks have failed to rally with market and these stock can correct faster when this rally fizzles out.
§ Sensex- has Gapped-up(16894-16922) till the Gap is held 17355-17500 also could be possible level for Sensex in coming days, Sensex has held 17k levels and now if it can trade comfortably above this level rally can sustain extended period. Weakness now will come below 16950 only on sustainable basis.
Technical Calls:
GRASIM Cmp Rs.2213 has closed @ 30trading days high, stock crossing 2260( 60day's high) on sustainable basis can target Rs.2400-2450 levels. Cement stocks which have been trading sideways holding well in recent market slide is now outperforming with ACC-GRASIM-AMBUJA being our Top pick. Stock trades above 20DMA Rs.2131 with 100DMA Rs.2224 & 200DMA Rs.2288 would prove a minor resistance for the stock.
AKZONOBLE INDIA Cmp Rs.951, Stock has made triangle formation near all time high Rs.1044 made in July and chances of the high crossing looks possible if the stock holds well above Rs.920. Stock trades above all major averages with 20DMA Rs.931, 100DMA Rs.901 and 200DMA Rs.832. Stock trading above Rs.975 is a major break-out from trading range.
Technical View: : JPASSOCIATE-71, Cement & Infrastructure stock are outperforming market and JPASSOC being in both sector and with market talk of company exploring the option to rope in a strategic partner for its cement business has added positive sentiment. Stock trades above short term average 20DMA Rs.61 while 100DMA Rs.78 & 200DMA Rs.86 could be Target for the stock, which is moving up on higher volumes.
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