Celebration day across as Indices rallied ahead of Christmas with encouraging supportive from global markets. Sectors like Techies, Banks, Metal, Telecom and capital goods were the frontrunners for the day which took indices up 700 points. Gujarat election also supported with positive sentiments. More value buying was seen in IT index ahead of results season nearing and index ended up by 6%. Mid Caps and smallcap also joined the party of Christmas celebration up by 2% & 1.5% each and relative out performing movement seen in large caps also. The momentum was in fact maintained till the final hour to end up near to days high. Asian markets had a strong session of trade on back of positive cues from US and ended in green while Europe also continued to trade in green.
Sensex ended up by 692 points at 19854.119. It was helped up by gains in Wipro (535.3,+9 percent), Infosys (1810.9,+7 percent), HDFC (2897.3501,+6 percent), Satyam (454.55,+6 percent) and Rel Energy (2058.8999,+6 percent). Restricting the gains were Bajaj Auto (2712.95,-3 percent), Dr Reddys (719.7,0 percent), Maruti (990.15,0 percent), ACC (1001.25,0 percent).
KEI Industries was on limelight. KEI manufactures high and low tension cables, control and instrumentation cables, house wires and stainless steel wires. KEI is one of the few companies in the country to manufacture Speciality cables including braided cables, fire survival and zero halogen cables. It enjoys the switching production between HT and LT cables depending upon prevailing market conditions and demand. KEI now manufactures the wide range of product basket with nearly four decades of solid experience. KEI enjoys wide acceptability across sectors such as Oil refineries, railways, power, cement, steel and various other industrial sectors due to its ability of custom manufacture highly specialized cables to the exacting product and application needs of its prestigious clientele. The current cable capacity of the company is 40,000 kms which is expected to increase to 56,000 kms by the end of March 2008. Expansion plans are on cards. Recently Company has inaugurated a new plant for manufacturing of HT and LT power cable at Chopanki. Stock ended up 10%. We are positive on the business as company expansion for the first phase has completed and it is in line with the industry demand. Expect detailed research findings soon in this space.
Oil marketing companies witnessed a smart move today as Indian government is considering to revise oil prices as it is not possible for it to keep the present level of prices indefinitely due to upsurge in the international market. Delhi government today imposed 25 paisa cess on Diesel which turned negative for the Auto majors like Tata Motors and Maruti. Heavy subsidies had kept the prices low despite surge in international market from US$ 36 to US$ 100 per barrel. The government has so far passed on only a fifth of the hike to consumers despite the fact the crude oil prices had risen 150%. The government is giving subsidies to the tune of over Rs. 100000 crore during the current financial year in petroleum, fertilizer and food sectors. If the prices are raised then it will come as a welcome relief to the OMCs like IOC, HPCL and BPCL, which have been reeling under the under-recoveries. Stocks like IOC up by 4.8%, BPCL (up 3.4%) and HPCL up 2.3% being the key gainers for the day.
Technically speaking: Markets traded strong with positive breadth. Sensex touched intraday high of 19879 and low of 19308. Turnover was at Rs 5657 Cr. Market breadth was in favor of Advances at 1903, while Declines stood at 979. Sensex has pulled back from its lows, yet the day's volumes were comparatively less. This seems to be a pullback rally and we expect downside to start again if Sensex fails to close above 20k within this week. Traders are advised to cut their longs on pullback and stay on the sidelines. Sensex support is seen at 19640 and 19480 levels and Resistance near 19900 and 20020.
Sensex ended up by 692 points at 19854.119. It was helped up by gains in Wipro (535.3,+9 percent), Infosys (1810.9,+7 percent), HDFC (2897.3501,+6 percent), Satyam (454.55,+6 percent) and Rel Energy (2058.8999,+6 percent). Restricting the gains were Bajaj Auto (2712.95,-3 percent), Dr Reddys (719.7,0 percent), Maruti (990.15,0 percent), ACC (1001.25,0 percent).
KEI Industries was on limelight. KEI manufactures high and low tension cables, control and instrumentation cables, house wires and stainless steel wires. KEI is one of the few companies in the country to manufacture Speciality cables including braided cables, fire survival and zero halogen cables. It enjoys the switching production between HT and LT cables depending upon prevailing market conditions and demand. KEI now manufactures the wide range of product basket with nearly four decades of solid experience. KEI enjoys wide acceptability across sectors such as Oil refineries, railways, power, cement, steel and various other industrial sectors due to its ability of custom manufacture highly specialized cables to the exacting product and application needs of its prestigious clientele. The current cable capacity of the company is 40,000 kms which is expected to increase to 56,000 kms by the end of March 2008. Expansion plans are on cards. Recently Company has inaugurated a new plant for manufacturing of HT and LT power cable at Chopanki. Stock ended up 10%. We are positive on the business as company expansion for the first phase has completed and it is in line with the industry demand. Expect detailed research findings soon in this space.
Oil marketing companies witnessed a smart move today as Indian government is considering to revise oil prices as it is not possible for it to keep the present level of prices indefinitely due to upsurge in the international market. Delhi government today imposed 25 paisa cess on Diesel which turned negative for the Auto majors like Tata Motors and Maruti. Heavy subsidies had kept the prices low despite surge in international market from US$ 36 to US$ 100 per barrel. The government has so far passed on only a fifth of the hike to consumers despite the fact the crude oil prices had risen 150%. The government is giving subsidies to the tune of over Rs. 100000 crore during the current financial year in petroleum, fertilizer and food sectors. If the prices are raised then it will come as a welcome relief to the OMCs like IOC, HPCL and BPCL, which have been reeling under the under-recoveries. Stocks like IOC up by 4.8%, BPCL (up 3.4%) and HPCL up 2.3% being the key gainers for the day.
Technically speaking: Markets traded strong with positive breadth. Sensex touched intraday high of 19879 and low of 19308. Turnover was at Rs 5657 Cr. Market breadth was in favor of Advances at 1903, while Declines stood at 979. Sensex has pulled back from its lows, yet the day's volumes were comparatively less. This seems to be a pullback rally and we expect downside to start again if Sensex fails to close above 20k within this week. Traders are advised to cut their longs on pullback and stay on the sidelines. Sensex support is seen at 19640 and 19480 levels and Resistance near 19900 and 20020.
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