Myiris Newsletter - 05 Feb 08

BSE Sensex rose 417.54 points, or 2.29%, to close at 18,660.32 while the broad-based NSE Nifty closed at 5,463.50, up 146.45 points, or 2.75%.
U.S. stocks declined on Monday as fears of an economic downturn remain
The Dow Jones industrial average dropped 103.97 points, or 0.82%, to 12,639.22. Nasdaq composite index fell 25.41 points, or 1.05%, to 2,387.95.
Asian stocks, on Tuesday (Feb. 05), fell for the first time in four days as a lower profit forecast from Olympus Corp. and downgrade of Posco by Goldman, Sachs & Co. fueled concern of slow regional earnings growth.
Japanese benchmark index Nikkei lost 171.69 points, or 1.24%, to trade at 13,688.01.Hong Kong`s index Hang Seng lost 327.73 points, or 1.31%, to trade at 24,704.35.China`s Shanghai Composite fell 44.91 points, or 0.96%, to trade at 4,627.26.South Korea`s KOSPI lost 5.12 points, or 0.30%, to trade at 1,685.01.
Crude oil prices rose on Monday (February 4), after the government reported strong data on factory orders, giving investors some hope that the economy will dodge a recession that would curtail demand for energy.
Light sweet crude for March delivery rose USD 1.06 to settle at USD 90.02 a barrel on the New York Mercantile Exchange (NYMEX).

Technical Call

Vishwas Agarwal, Technical Analyst , said ``Sensex 18,555 is an immediate support for the market and with volatility it can go upto 18,888 - 19,150 and 19,350``. He said ``Volatility is expected at the higher level, where we can see profit booking. Our market is actually not in a bullish phase, but traders can get some profitable trading mood``. For the coming days, he said ``On Tuesday, some selling may come in the market and from Wednesday onwards some relief recovery can come. However for this support form the global market is very important``.
Broker`s Outlook

Bhupendra Sharma, vice president, Hornic Investments said that market was firm today (Feb 4). Sensex closed strong at 18660 up 417 points while Nifty ended up 146 points at 5463. According to him, reasonable selling was seen at higher levels. Since markets have moved up almost 1000 points in the last 2 to 3 trading sessions, some profit booking was seen. Tech sector is performing well at the bourses. Stocks like Infosys, Satyam, Tech Mahindra were among the major gainers of the day. Recovery is being seen as most of the over leveraged positions have been covered. According to him Sensex support is at 17600 and Nifty at 5400. He expects markets to remain volatile.....more.
Stocks Recommended

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