POSITIVE TERRAIN

The Indian equity markets are trading in the positive terrain after a gap up start tracking firm cues from global indices. The US markets closed higher overnight on the back of strong corporate earnings and reports of jump in housing construction while, all the Asian counterparts barring Shanghai Composite were trading in the positive terrain at this point of time, indicating strong investors' sentiment. Back home, sustained buying in most of the key heavyweights supported the BSE's Sensex to cross its crucial 18,700 mark. On the sectoral front realty witnessed the maximum gain in trade followed by fast moving consumer goods and consumer durables while, software, technology and capital goods remained the top losers on the BSE sectoral space. Meanwhile, Realty stocks edged higher in the trade on renewed buying. The scrips like DLF, Unitech, Indiabulls Real Estate, Ackruti City were trading higher at this point of time, however, PSU oil marketing companies viz., BPCL, HPCL and IOC were trading lower in the trade as international crude oil prices made a good bounce back on Tuesday and rose above $96 a barrel. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,396 shares on the gaining side against 513 shares on the losing side while 78 shares remained unchanged.
The BSE Sensex opened at 18,756.31; about 103 points higher compared to its previous closing of 18,653.87, and has touched a high and a low of 18,765.60 and 18,697.98 respectively.
The index is currently trading at 18,720.26, up by 66.39 points or 0.36%. There were 24 stocks advancing against just 6 declines on the index.
The overall market breadth has made a strong start with 70.26% stocks advancing against 25.82% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.47% and 0.67% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 0.99%, FMCG up by 0.92%, CD up by 0.64%, Bankex up by 0.46% and Auto was up by 0.38%. While, IT down by 0.06%, TECk down by 0.06%, CG down by 0.04% and Power down by 0.04% were the only losers on the index.
The top gainers on the Sensex were DLF up by 1.69%, RCom up by 1.63%, ITC up by 1.20%, Reliance Infra up by 1.03% and Maruti Suzuki was up by 0.98%.
On the flip side, Wipro was down by 2.53%, BHEL was down by 0.61%, Hindalco was down by 0.57%, Cipla was down by 0.36% and Bharti Airtel was down by 0.20% were the top losers on the Sensex.
Meanwhile, the insurance sector watchdog - Insurance Regulatory and Development Authority (IRDA) on July 19 said the final guidelines to allow life insurance companies to raise funds from the capital market will be out by this month-end. Last month, IRDA had released a set of draft guidelines for insurance companies to raise funds through public offers.
The IRDA Chairman, J Hari Narayan said, "With regard to life companies, the work on IPO guidelines is more or less complete and we would be going for gazetting the same as regulation very shortly, perhaps towards the end of this month,"
IRDA has done some important changes in the draft guidelines. It has removed the clause mandating a three-year track record of profitability as a pre-condition for tapping the capital markets. As per existing capital market regulator Securities and Exchange Board of India (SEBI) norms, any company which proposes to come out with a public offer should have a three-year track record of profits.
"As regards non-life companies, there is little more work to be done and that may take 2-3 months," he said. As per the draft norms, insurance companies which have finished 10 years of operation and have strong financials will be allowed to raise money from capital market. The insurance firms planning for public offers have to seek formal approval from IRDA and then approach SEBI for final approval, the draft norms said.
As part of the eligibility criteria, the insurance company should have maintained the prescribed regulatory solvency margin during the preceding six quarters, draft said. In addition, the insurance company should have embedded the value of at least twice its paid-up equity capital, the draft guidelines had said, by adding further it says that the insurance company should be fully compliant with the corporate governance guidelines issued by IRDA.
The S&P CNX Nifty opened at 5,642.05; about 29 points higher compared to its previous closing of 5,613.55, and has touched a high and a low of 5,645.40 and 5,624.40 respectively.
The index is currently trading at 5,630.95, higher by 17.40 points or 0.31%. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were DLF up by 1.73%, Kotak Bank up by 1.53%, RCom up by 1.52%, Reliance Capital up by 1.23% and ITC up by 1.08%.

On the flip side, Wipro down by 2.58%, Hindalco down by 0.65%, BHEL down by 0.55%, BPCL down by 0.53% and Cipla down by 0.52%, were the major losers on the index.

All the Asian equity indices barring Shanghai Composite were trading in the green; Hang Seng was up 21.94 points or 0.10% to 21,924.34, Jakarta Composite was up 1.92 points or 0.05% to 4,025.34, KLSE Composite was up 7.57 points or 0.49% to 1,563.21, Nikkei 225 was up 111.85 points or 1.13% to 10,001.57, Straits Times was up 14.51 points or 0.47% to 3,110.63, Seoul Composite was up 24.69 points or 1.16% to 2,154.90 and Taiwan Weighted was up by 123.25 points or 1.45% to 8,647.82.
On the flip side, Shanghai Composite was down by 11.36 points or 0.41% to 2,785.62.

TREND FOR 20th JULY

Markets today have entered in positive zone & are above 5 & 10 EMA, thus the Nifty is likely to go up to 5658 & on the downside may drift to 5594. Long positions can be taken in INFOTECENT for a target of 152, MUNDRAPORT for a target of 166, PRAJIND for a target of 85, RCOM for a target of 110, VIDEOIND for a target of 220, WIPRO for a target of 471.
                                                                     CHEERS !!!

MARKETS STRUGGELING

The Indian equity markets pared most of its gains and are currently trading moderately down amid volatility of buying and selling in several blue chip stocks. On sectoral front stocks from realty and automobile sectors are on sellers' radar while consumer durables, information technology, oil and healthcare stocks are showing reasonably good support. NTPC among the top gainers as it signed a MOU with Government of Kerala to plan and develop around 200mw wind energy based power projects in Kerala. On the global front, markets might be waiting for clarity on European debt crisis and concerns of likely US debt while Asian markets were mostly trading in red. Back home, the market breadth continues to be positive; there were 1,363 shares on the gaining side against 1,095 shares on the losing side while 129 shares remained unchanged.
The BSE Sensex is currently trading at 18,491.95, down by 15.09 points or 0.08%. The index has touched a high and low of 18,577.77 and 18,481.83. There were 14 stocks advancing against 16 declining on the index.

The broader indices kept outperforming their larger counterparts; the BSE Mid cap and Small cap indices were up by 0.18% and 0.46% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.10%, IT up by 0.45%, TECk up by 0.39%, HC up by 0.29% and Oil and Gas up by 0.14%. While, Realty down by 1.25%, Auto down by 0.98%, CG down by 0.18%, Power down by 0.13% and Metal down by 0.04% were the top losers on the index.
The top gainers on the Sensex were NTPC up by 0.91%, Sterlite Industries up by 0.89%, TCS up by 0.81%, Infosys up by 0.57% and Bharti Airtel up by 0.47%.
On the flip side, Tata Motors down by 3.08%, DLF down by 1.38%, Hero Honda down by 1.13%, JP Associate down by 0.97% and Maruti Suzuki down by 0.95% were the top losers on the Sensex.
Meanwhile, the imports of sensitive items for the last financial year increased by 7.8% to Rs 70,656 crore from Rs 65,565 crore during the 2009-10. During the 2010-11, the gross import of all commodities increased by 17.1% over 2009-10. The other items like milk and milk products, food grains and rubber saw the surge in imports, it increased by 162.2%, 113.8% and 82.7% respectively during the last financial year.
The commerce and industry ministry said the gross import of all commodities during same period of current year was Rs 1596869 crores as compared to Rs 1363736 crores during the same period of last year. Thus, import of sensitive items constitutes 4.8% and 4.4% of the gross imports during last year and current year respectively.
The import of items like pulses, cotton and silk, spices and tea and coffee register decline in import at broad group level, however items like edible oil, automobiles, fruits and vegetables (including nuts), rubber, products of SSI, milk and milk products, alcoholic beverages, marble and granite and food grains saw the increase in imports for the 2010-11.
As per the official statement, during the last financial year edible oil increased to Rs 29,319.1 crore from Rs 25,975.3 crore in the 2009-10.  A significant feature of edible oil import is that import of crude oil has gone up by 15.8% and that of refined oil have gone down by 2.5%. The increase in edible oil import is mainly due to substantial increase in import of crude palm oil and its fractions, the commerce ministry said.
Import of sensitive items has increased from countries like Indonesia, China P RP, Argentina, Malaysia, Korea RP, Germany, Ukraine, Thailand, Tanzania REP, Australia, United Kingdom, Cote D' Ivoire, Vietnam SOC REP etc. whereas imports of sensitive items has reduced from countries such as  US, Myanmar, Brazil, Japan, Canada, Czech Republic etc. 
The S&P CNX Nifty is currently trading at 5564.30, lower by 2.75 points or 0.05%. The index has touched a high and low of 5,586.20 and 5,557.20 respectively. There were 22 stocks advancing against 28 declines on the index.
The top gainers of the Nifty were Sterlite up by 1.13%, Sun Pharma up by 1.12%, NTPC up by 1.05%, TCS up by 0.78% and Kotak Bank up by 0.74%.
On the flip side, Tata Motors down by 1.77%, DLF down by 1.23%, Hero Honda down by 1.13%, IDFC down by 1.13% and Maruti Suzuki down by 1.10% were the major losers on the index.
Most of the Asian equity indices were trading in red; Shanghai Composite declined 0.77%, Hang Seng slid 0.73%, Jakarta Composite lost 0.58%, KLSE Composite skid 0.44%, Nikkei 225 dropped 0.77%, Straits Times down by 0.11% and Taiwan Weighted down 0.16%
On the flip side, Seoul Composite gained 0.14% was the lone gainer among the Asian pack

MILD RECOVERY

Making a partial recovery after a two-session's decline, local bourses have added some more points to their kitty on the back of bargain buying by funds and investors albeit a weakening trend in overseas markets. However, global jitters about the wobbly financial health of the US and the Euro zone amid continued stalemate on their unsustainable debt levels to some extent has prevented the Indian market men to build any heft position in the light of dearth of any major positive trigger. On the global front, U.S. stocks ended lower on Monday as bank shares bore the brunt of investor frustration over governments' inability to solve debt crises in the United States and Europe. Meanwhile, most of the Asian shares were trading in red for the fourth consecutive session amid concern U.S. lawmakers will fail to reach a deal on the country's debt limit and Europe's worsening crisis will slow the global economic recovery. However, the U.S. future indices were showing an uptick in the screen trade. Back home, the only solace came into the markets with easing crude oil prices which fell on Monday due to growing fears of a sovereign debt default on either side of the Atlantic and on the possibility of another emergency stock release from the International Energy Agency. On the BSE Sectoral front, stocks from Consumer Durable, Information Technology and TECk counters were enticing maximum traction, while stocks from Realty and Auto counters were boring the brunt of profit booking at higher levels. The 30 scrip sensitive index-Sensex- after breaching the 18500 mark regained it and is currently trading well above it. The 50 share index too capturing gains of over 10 points is currently trading above the 5550 level. The broader indices too doing well for themselves are outperforming their larger counterparts, up with gains of over 0.30% each. The overall market breadth was much towards the favour of advances which thumped declines in the ratio of 1417:816, while 124 shares remained unchanged.
The BSE Sensex is currently trading at 18,554.85, up by 47.81 points or 0.26%. The index has touched a high and low of 18,577.77 and 18,491.13. There were 17 stocks advancing against just 12 declining one's the index, while 1 stock remained unchanged.
The broader indices kept outperforming their larger counterparts; the BSE Mid cap and Small cap indices were up by 0.44% and 0.69% respectively.
The top gaining sectoral indices on the BSE were, CD up by 1.52%, IT up by 0.61%, TECk up by 0.55%, HC up by 0.42% and Oil and Gas up by 0.40%. While, Realty down by 0.77%, Auto down by 0.44% were the only losers on the index.
The top gainers on the Sensex were NTPC up by 1.37%, Sterlite Industries up by 1.31%, Infosys up by 0.81%, Bharti Airtel up by 0.78% and Hindalco Industries was up by 0.69%.
On the flip side, Tata Motors was down by 1.99%, DLF was down by 1.26%, Hero Honda down by 0.84%, HUL down by 0.72% and Maruti Suzuki was down by 0.59% were the top losers on the Sensex.
Meanwhile, the foreign institutional investors (FIIs) infused around Rs 8,000 crore or $2 billion in the domestic stock and debt market so far this month, experts have the opinion that investment from FIIs will continue to increase in the coming months.
As per the information available with market regulator SEBI, the FIIs, in July made gross investment of around Rs 43,994 crore in equities and debt securities, however, they also sold shares and bonds worth around 36, 195 crore, resulting of net investment of Rs 7,799 crore. Experts say, this increase in FII flows is due to moderation in crude oil prices and inflation. FIIs were quite optimistic on the equity market; they invested around Rs 6,475 crore in equities and Rs 1,324 crore in securities market. Investors had avoided the stocks markets in emerging countries such as India in the first six months of the 2011 as these countries battled inflation. Besides, high interest rate was also considered as a risk to these countries. However, foreign investors were interested in the debt market during the same period of time, FII invested around Rs 9,948 crore in debt market whereas they invested around Rs 2,670 crore in stock markets. Market experts believe that, FIIs will remain bullish in the remaining six months of the current financial year, and investment from FIIs is expected to increase.
During 2010, FIIs purchased stocks and bonds worth around Rs 10 lakh crore, in the same period, Foreign investors also sold shares and bonds worth around Rs 7,80,000 crore, which resulted into net investment of Rs 1.75 lakh crore for the year, which is a record. During the same year, the number of FIIs registered with SEBI marginally increased to 1,728 as of July 2011 from 1,718 at the end of 2010.
The S&P CNX Nifty is currently trading at 5,578.65, higher by 11.60 points or 0.21%. The index has touched a high and low of 5,586.20 and 5,557.90 respectively. There were 34 stocks advancing against 15 declines, while 1 stock remained unchanged on the index.
The top gainers of the Nifty were NTPC up by 1.48%, Sterlite Industries up by 1.31%, Sunpharma up by 1.01%, Axis Bank up by 0.99% and Siemens up by 0.85%.
On the flip side, DLF down by 1.23%, IDFC down by 0.92%, HUL down by 0.89%, Maruti Suzuki down by 0.79% and Tata Motors down by 0.73% were the major losers on the index.

Most of the Asian equity indices were trading in red; Shanghai Composite declined 0.52%, Hang Seng slid 0.29%, Jakarta Composite lost 0.58%, KLSE Composite skid 0.44% and Nikkei 225 dropped 0.49%.

On the flip side, Straits Times up by 0.22%, Seoul Composite gained 0.30%, Taiwan Weighted rose 0.03% were the gainers among the Asian pack

MARKETS REMAIN SIDEWAYS

The Indian equity markets have made a flat start and dipped into the red in initial trade as investors remained on the safer side in the absence of any major trigger. But, selective buying by funds and investors in stocks available at attractive levels helped the Sensex to turn positive. On global front, the US markets closed lower despite making a bounce back in the late trades as the debt limit debate remained at a standstill while most of the Asian counterparts were trading in the negative terrain at this point of time. Back home, on the sectoral front software witnessed the maximum gain in trade followed by technology and consumer durables while, realty and auto remained the only losers on the BSE sectoral space. Meanwhile, PSU oil marketing companies viz., BPCL, HPCL and IOC were trading higher in the trade as international crude oil prices fell over a percent on European concern, the report that government will pay an additional Rs 30,000 crore than budgeted in 2011-12 to state refiners as compensation towards selling fuel at subsidized rate too supported the up-move, moreover, HDFC Bank hit record high ahead of its Q1 numbers to be released in the later part of the trade. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,123 shares on the gaining side against 617 shares on the losing side while 102 shares remained unchanged.
The BSE Sensex opened at 18,521.38; about 14 points higher compared to its previous closing of 18,507.04, and has touched a high and a low of 18,565.64 and 18,491.13 respectively.
The index is currently trading at 18,542.95, up by 35.91 points or 0.19%. There were 18 stocks advancing against just 12 declines on the index.
The overall market breadth has made a strong start with 60.97% stocks advancing against 33.50% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.28% and 0.49% respectively.
The top gaining sectoral indices on the BSE were, TECk up by 0.49%, IT up by 0.48%, CD up by 0.44%, Oil and Gas up by 0.37% and HC was up by 0.34%. While, Realty down by 0.60% and Auto down by 0.43% were the only losers on the index.
The top gainers on the Sensex were NTPC up by 1.07%, Sterlite Industries up by 1.01%, Infosys up by 0.55%, ONGC up by 0.45% and Bharti Airtel was up by 0.42%.
On the flip side, Tata Motors was down by 1.98%, DLF was down by 1.13%, Hero Honda was down by 0.65%, HUL was down by 0.50% and BHEL was down by 0.43% were the top losers on the Sensex.
Meanwhile, the Empowered Group of Minister (EGoM) on food headed by Finance Minister Pranab Mukherjee removed the four year ban from export of wheat. The government's decision of removing the ban was quite late and now it is expected that this will not have any significant impact on the wheat prices in domestic market.
The Agriculture Minister Sharad Pawar on July 16 said, the ban on export of wheat imposed in 2007 has been lifted. But it will not have many takers in the international market where prices are quite depressed. By adding further he said no quantity has been specified for export of wheat in the wake of its low prices across the globe.
Earlier, EGoM on food removed the ban from the export of non-basmati rice, and had allowed to export 1 million tonnes of non basmati rice, but did not specify any quantity for wheat, though the proposal was for permitting 2 million tonnes to be exported from the open market.
Agriculture minister also expressed his doubt about the viability of the wheat export as the international price of commodity is stable and less likely to increase in the coming time. Agriculture minister by giving stress on the fact that country has more stock than it required for domestic consumption.
By expressing concern on the issue of storing capacity Agriculture Minister said that the real problem would start when procurement of wheat starts in Andhra Pradesh and Punjab, wheat stored in Andhra Pradesh and Punjab cannot move to central India due to scarcity of space.
The S&P CNX Nifty opened at 5,569.85; flat compared to its previous closing of 5,567.05, and has touched a high and a low of 5,581.75 and 5,557.90 respectively.
The index is currently trading at 5,574.50, higher by 7.45 points or 0.13%. There were 32 stocks advancing against 18 declines on the index.
The top gainers of the Nifty were NTPC up by 1.21%, Sterlite Industries up by 1.10%, HCL Tech up by 0.71%, Sun Pharma up by 0.66% and Dr Reddy up by 0.66%.
On the flip side, Tata Motors down by 0.50%, DLF down by 1.11%, IDFC down by 0.89%, Hero Honda down by 0.72% and Maruti down by 0.66%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Shanghai Composite was down 13.15 points or 0.47% to 2,803.53, Hang Seng was down 63.99 points or 0.29% to 21,740.76, Jakarta Composite was down 26.22 points or 0.65% to 4,006.76, KLSE Composite was down 6.81 points or 0.44% to 1,555.77, Nikkei 225 was down 59.45 points or 0.60% to 9,915.02 and Taiwan Weighted was down by 7.37 points or 0.09% to 8,531.20.

On the flip side, Straits Times was up 5.42 points or 0.18% to 3,084.37 and Seoul Composite was up by 3.06 points or 0.14% to 2,133.54

TREND FOR 19th JULY

Markets technically have slipped in to negative zone & are below 5 & 10 EMA, but appears to be indecisive. Thus the Nifty may slip to 5500 - 5470 & on the upside may move up to 5588 - 5658. Long positions can be taken in DENABANK for a target of 111, GUJNRECOKE for a target of 58, HDIL for a target of 188, HEG for a target of 263, IOB for a target of 164, JSWSTEEL for a target of 963, ORBITCORP for a target of 56, SOBHA for a target of 310.
                                                                CHEERS !!!

TIGHT RANGE

Indian stock markets have prolonged the lull for the third straight session and are continuing to oscillate in a very tight range around previous closing levels. Investors are sitting on the sidelines lacking conviction amid the persistent worries over global financial stability. The global economic outlook was dimmed by aggravating sovereign debt troubles across the western nations, a weak US consumer confidence which hit a near 2-1/2 year low in early July and stalling US manufacturing output in June. The somber opening of European markets and subdued trends from the Asian peers kept local investors out of action. Back home on the sectoral front, the information technology shares lost maximum ground on concerns over their first quarter earnings amid the worsening debt troubles for US and Europe - the major importers of their services. The rate sensitive Automobile sector along with some Oil & Gas and Healthcare names too traded with a negative bias. On the other hand, buying interests were largely evident in high beta Real Estate stocks while, the power and metal counters too gained traction in the early noon session. However, the broader markets are trading on a positive note with over half a percent gains, outperforming their larger peers by quite a margin. The bourses consolidated on weak volumes while the market breadth on BSE was in favor of advances in the ratio of 1625:988 while 119 scrips remained unchanged.
The BSE Sensex is currently trading at 18,567.68 down by 5.76 points or 0.03% after trading as high as 18,622.56 and as low as 18,516.54. There were 18 stocks advancing against 12 declines on the index.
The broader indices are trading on a positive note; the BSE Mid cap index advanced 0.52% and Small cap rose by 0.66% respectively. 
On the BSE sectoral space, Realty up 1.18%, Power up 0.84%, Metal up 0.84%, Consumer Durable up 0.52% and FMCG up 0.52% were the major gainers, while IT down 0.58%, Teck down 0.33%, Auto down 0.28%, oil & Gas down 0.17% and Healthcare down 0.12% were the major losers on the index.
The top gainers on the Sensex were Hindalco up by 3.14%, BHEL up by 2.40%, Tata Power up by 1.81%, HDFC Bank up 1.69% and DLF up 1.61%.
On the flip side, Cipla down by 2.02%, TCS down 1.68%, M&M down 1.22%, L&T down 0.98% and Tata Motors down by 0.69% were the major losers on the index.
The foreign institutional investors (FIIs) infused around Rs 8,000 crore or $2 billion in the domestic stock and debt market so far this month, experts have the opinion that investment from FIIs will continue to increase in the coming months.
As per the information available with market regulator SEBI, the FIIs, in July made gross investment of around Rs 43,994 crore in equities and debt securities, however, they also sold shares and bonds worth around 36, 195 crore, resulting of net investment of Rs 7,799 crore. Experts say, this increase in FII flows is due to moderation in crude oil prices and inflation. FIIs were quite optimistic on the equity market; they invested around Rs 6,475 crore in equities and Rs 1,324 crore in securities market.
Investors had avoided the stocks markets in emerging countries such as India in the first six months of the 2011 as these countries battled inflation. Besides, high interest rate was also considered as a risk to these countries. However, foreign investors were interested in the debt market during the same period of time, FII invested around Rs 9,948 crore in debt market whereas they invested around Rs 2,670 crore in stock markets. Market experts believe that, FIIs will remain bullish in the remaining six months of the current financial year, and investment from FIIs is expected to increase.

During 2010, FIIs purchased stocks and bonds worth around Rs 10 lakh crore, in the same period, Foreign investors also sold shares and bonds worth around Rs 7,80,000 crore, which resulted into net investment of Rs 1.75 lakh crore for the year, which is a record. During the same year, the number of FIIs registered with SEBI marginally increased to 1,728 as of July 2011 from 1,718 at the end of 2010. The S&P CNX Nifty is currently trading at 5,580.50, lower by 0.60 points or 0.01% after trading as high as 5,596.60 and as low as 5,563.70. There were 29 stocks advancing against 21 declines on the index.

The top gainers of the Nifty were Hindalco up by 3.23%, IDFC up by 2.16%, BHEL up by 2.13%, Tata Power up by 2% and HDFC Bank up by 1.59%.
Cipla down by 2.45%, TCS down 1.65%, M&M down 1.57%, L&T down 1.45% and NTPC down 0.76% were the major losers on the index.
Asian markets are exhibiting somber trends as Shanghai Composite fell by 0.29%, Hang Seng shed 0.36%, KLSE Composite declined 0.87%, Straits Times eased 0.19%, Seoul Composite slipped by 0.69% and Taiwan Weighted slumped by 0.42%.
On the flipside only Jakarta Composite gained 0.28%. While Stock markets in Japan remained shut on account of Ocean Day Holiday.
The European markets have opened on a weak note as France's CAC 40 shed 0.94%, Germany's DAX dropped 0.86% and London's FTSE eased 0.67%