Morning Report - 04 Feb 08

US Stocks finished higher on Friday after a surprise $44.6 billion bid by Microsoft for Yahoo .
On Friday, the Dow Jones industrial average gained 92.83 points, or 0.73%, to finish at 12,743.19. While the Nasdaq composite index gained 23.50 points, or 0.98%, to end at 2,397.37.
BSE Sensex gained 584.71 points, or 3.31%, to close at 18,233.42; while the broad-based NSE Nifty closed at 5,317.25, up 179.8 points, or 3.50%.
Crude oil prices fell on Friday (February 1), after a string of dismal economic reports renewed worries that a possible U.S. recession could stunt oil demand.Light sweet crude for March delivery dropped USD 2.79 to settle at USD 88.96 a barrel on the New York Mercantile Exchange (NYMEX).
Gasoline prices lost 7.38 cents to USD 2.2834 a gallon. The retail gas prices inched up, overnight to a national average of USD 2.988 a gallon Friday from USD 2.986 the day before.In London, Brent crude futures settled USD 2.77 lower at USD 89.44 a barrel on the ICE Futures exchange.
Asian markets on Monday (Feb. 04, 2008) advanced after US manufacturing rose, easing concerns of the economy heading towards recession.The advances were led by exporters such as Samsung Electronics.Rio Tinto also surged after Aluminum Corp. of China moved to block BHP Billiton`s takeover.
Japanese benchmark index Nikkei gained 335.24 points, or 2.48%, to trade at 13,832.40.Hong Kong`s index Hang Seng gained 818.85 points, or 3.39%, to trade at 24,942.43.South Korea`s KOSPI added 50.07 points, or 3.06%, to trade at 1,684.60.Singapore`s Straits Times added 61.17 points, or 2.03%, to trade at 3,068.97.
Technical Call

Vishwas Agarwal, Technical Analyst said, ``On Friday, the market gave some positive signal as many frontline stocks from F&O segment like TISCO, Telco, ONGC, Infosys and many other moved up by more than 5% and with volumes,`` adding, ``this gave some support to the market.`` Giving the next levels for the market he said, ``17,555 is a basic stop loss now, with 18,150 as an important support trigger and if it crosses 18,555 and maintain this level than the Sensex can test 18,888 - 19,150 and 19,350 - 19,555,`` adding, ``this recovery may not be one side, but with volatility.`` Vishwas said, one can see above levels with global market recovery, as global market is in oversold zone....More
Broker`s Outlook

Bharat Thakur, assistant manager, Karvy Stock Broking said that new month began on a cheerful note. After a long time, markets moved up. Overall buying was seen in the market today (February 1). International cues remained good, which supported the upward move. Value buying was mainly seen in IT stocks like Infosys, TCS, Satyam, Mphasis BFL etc. Sensex closed up 584.7 points at 18,233 while Nifty ended at 5,317 up by 179.8 points. Action was mainly seen in frontline large cap counters, added Bharat. In the last hours of the trade Reliance Industries saw some upward movement, which is good for the markets. Mid caps continued to end in red. Since market has closed above support of 18,200, it is good for the market sentiment. He expects markets to continue to move up on Monday ahead of Reliance Power listing next week. .....more
Stocks Recommendation

Emkay maintained an ACCUMULATE rating on Bajaj Auto with a target price of Rs 2,905.The analysts at Emkay say that Bajaj Auto reported its Q3FY08 numbers inline with their expectations. While net sales at Rs 25 billion (YoY decline of 2.6%) were below their expectations by 4%, operating performance was much ahead of expectations.
Emkay recommended a BUY on Container Corporation of India with a target price of Rs 2,581.According to the analysts at Emkay, Concor reported subdued performance during the quarter, essentially due to sharp decline in the margins of the domestic business. .......more
FII Update

Foreign institutional investors (FIIs) remained net sellers in equities worth Rs 33,934 million on January 31. They bought equities worth Rs 53,237 million, and sold equities worth Rs 87,171 million. Till January 31, they have been net sellers in equities worth Rs 172,269 million.
According to provision data available on NSE, FIIs remained net sellers in the equity segment worth Rs 1,269.3 million on both BSE and NSE on February 01. They bought equities worth Rs 34,691.9 million and sold equities worth Rs 35,961.2 million. Total turnover in cash segment of NSE stood at Rs 210,872.4 million on February 01. FIIs remain net buyers in derivatives worth Rs 10,265 million on January 31. They bought derivatives worth Rs 173,449.5 million and sold derivatives worth Rs 172,423.3 million.