Market Updates : Stocks to Buy and Sell on 04 October 2013

The BSE benchmark rallied more than 400 points in intraday trade on Thursday, driven by broad based buying and rupee appreciation. The Sensex rose 384.92 points or 1.97 percent to close at 19902.07, and the Nifty advanced 129.65 points or 2.24 percent to 5909.70. 

◘ US Markets:

Markets finished broadly lower with the Dow closing below the psychologically-important 15000 mark. Trading was jittery as speculation circulated that the US could now face a worst case scenario, where Congress fails to address the debt ceiling and the country defaults. A jarring warning from treasury predicting a catastrophic outcome if that happens added to the nervousness. The market recovered some of its losses around midday when house speaker John Boehner was reported to have told Republicans that he is determined to prevent a default and is willing to pass a measure through a combination of votes if need be. But then stocks dipped again on reports the Capitol building was under lockdown due to a shooting event, the situation was brought under control though.

◘ Asian Markets: Nikkei, Hang Seng down.

Asian markets were trading weak on Friday.
Hong Kong's Hang Seng shed 0.67 percent or 154.48 points at 23,059.92.
Japan's Nikkei slipped 1.14 percent or 161.79 points at 13,995.46.
Singapore's Straits Times was down 0.21 percent or 6.65 points at 3,138.14.
South Korea's Seoul Composite fell 0.61 percent or 12.16 points at 1,987.31.
Taiwan's Taiwan Weighted shed 0.20 percent or 16.72 points at 8,342.30.
Shanghai Composite shut today.

◘ European Markets:

European markets closed mixed The euro trades above 1.362 against the dollar, within striking distance of its 2013 peak of 1.37. Pushing higher for a second session as the dollar remains pinned at 8-month lows.

Sure shot stocks to buy Today on 04th October'2013

√ Larsen and Toubro

Buy Larsen and Toubro, Target Rs 880 and Stoploss Rs 805

Rationale: Larsen and Toubro (L&T) has recently done a short-term correction. It has retraced 50 percept of the previous rise. In terms of wave structure, here on fresh set of impulse is expected to form on the upside which would mean significant upside potential for the counter from short-term as well as medium-term perspective. In the last session, the stock has moved above its crucial daily moving average.

√ Petronet LNG

Buy Petronet LNG, Target Rs 128 and Stoploss Rs 118

Rationale: After a multi-month fall, Petronet LNG is forming a large inverted head and shoulders pattern, which is a basing pattern. Currently, right shoulder of the pattern is in formation. The stock is a good buying candidate from trading perspective as well as from investment point of view. Short-term as well as medium-term momentum indicators are in bullish mode.

√ ITC

Sell ITC October futures at current market price, Target Rs 330 and Stoploss Rs 348.50

Rationale: Fast moving consumer goods (FMCG) counters like ITC is trading in some kind of narrow range and some kind of negative crossover was seen on daily charts. So it is quite possible that some kind of lower levels up to Rs 330 could be expected soon.

√ NTPC

Sell NTPC October futures, Target Rs 140 and Stoploss Rs 148

Rationale: Despite of good bullish momentum in the market, it is quite possible that some stocks like NTPC is not showing strength on the upside. So it is quite possible that some kind of lower levels could be expected soon in this counter.

√ TCS

Buy TCS at current level, Target Rs 2080 and Stoploss Rs 1985

Rationale: It has a good breakout happening yesterday.

√ Cairn India

Buy Cairn India, Target Rs 338 and Stoploss Rs 321

Rationale: Cairn India was quoting below the 20 day moving average (DMA) for quite some time and yesterday it sprung back and closed above it.

Other Stocks to buy today are Bank of India, Voltas, tech Mahindra, Century Textile, BPCL.

Market Updates Today with Hot 10 Stocks in Focus on 01 October 2013

The S&P BSE Sensex regained lost ground and turned positive after falling over 100 points  in mid-morning trade after the US govt set in motion the first government shutdown for the first time in 17 years. 

Both leaders of the House and Senate acknowledged there would not be a resolution in time to stop a shutdown, as flurry of last-minute moves by the House, Senate and White House failed to break a bitter budget standoff over President Barack Obama's health care law.

The S&P BSE Sensex quickly pared opening gains and plunged over 100 points in mid-morning trade but soon regained lost ground and turned positive, led by gains in HDFC Bank, ICICI Bank and TCS.

At 10:15 AM: The 50-share index was at 5,752.85, up 17 points or 0.3 per cent. It touched a high of 5,762.40 and a low of 5,700.95 in early trade today.

The S&P BSE Sensex was trading at 19,442.32, up 62 points or 0.3 per cent. It touched a high of 19,466.18 and a low of 19,264.72 in trade today.

The S&P BSE Midcap Index was up 0.22 per cent and BSE S&P Small cap Index edged higher by 0.55 per cent.

Among the sectoral indices, the BSE Banking Index was up 1.01 per cent, followed by the S&P BSE Auto Index which gained 0.74 per cent and the S&P BSE Capital Goods Index rose 0.81 per cent.

The BSE Metal index was trading 1.1 per cent lower, followed by the BSE PSU index which slipped 0.55 per cent, the BSE oil & Gas index plunged 0.38 per cent and the BSE FMCG index was trading 0.36 per cent lower.

BHEL (4.3 per cent), DRL (1.6 per cent), Maruti Suzuki (3 per cent), SBI (1.2 per cent) and HDFC Bank (1.08 per cent) were among the major Sensex gainers.

Sesa Goa (2.6 per cent), NTPC (2.09 per cent), Jindal Steel (1.8 per cent), ONGC (2.1 per cent) and Tata Power (1.9 per cent) were among the index losers.

Top 10 Stocks in Focus Today on 01 October, 2013:

♦Reliance Industries Ltd: 

The Supreme Court today issued notice to Centre, Reliance IndustriesBSE 0.24 % Ltd (RIL) and others on a PIL seeking cancellation of contract for exploration of oil and gas concerning the KG block and to impose penalty for failure in adhering to commitments.

♦MRF Ltd: 

Even with the on-going turmoil over the bifurcation of Andhra Pradesh, India's leading tyre maker MRF said it will invest about Rs 1,000 crore to double its capacity at a facility located near Hyderabad.

♦ Infosys Ltd:

India's second largest software services exporter, and software giant IBM have won a 300 million euro (about Rs 2,535 crore) contract to develop the computer system for the UK-based bank Williams & Glyn's.

♦ Electrosteel Steel Ltd:

A part of Electrosteel Castings, a leading producer of ductile iron pipes used for water transportation, has received a nod from the Corporate Debt Restructuring (CDR) cell for its proposed Rs 6,181 crore CDR package.

♦ Siemens Ltd:

Siemens Ltd in consortia with Siemens AG has bagged an order from Rashtriya Ispat Nigam Ltd to modernise its blast furnace at the Visakhapatnam Steel Plant.

♦ Berger Paints India Ltd:

The paint company is looking to reposition its products following the acquisition of Sherwin Williams' decorative paints business in India, to avoid competition within the group. In the changed scheme of things, Sherwin will primarily cater to the premium paints segment.

♦ Hexaware Technologies Ltd:

A slew of top executives at Hexaware Technologies have sold shares in the company in the recent days. Even as some analysts read it as a sign of impending management changes, the IT service provider whose promoters are selling their holding to Barings Asia Private Equity said no such changes are planned.

♦ Apollo Tyre Ltd:

US-based Cooper Tire & Rubber Co today said shareholders approved its sale to Apollo Tyres Ltd, clearing the decks for the $2.5 billion transaction billed as one of the largest US acquisitions by an Indian firm.

♦ Tata Communications Ltd:

Tata CommunicationsBSE 5.08 % Ltd. said on Monday it has entered into discussions with Vodacom SA to sell its stake in South African fixed-line telephone operator Neotel.

♦ BPCL (BSE -1.95 %), HPCL (BSE -0.94 %), and IOC:

State run oil marketing companies will be in focus. Petrol price was on Monday cut by Rs 3.05 per litre, the first reduction in rates in over five months and the steepest in over five years, while diesel prices were raised by 50 paise a litre.