Tuesday, May 22, 2007

Newsletter dated 22nd May,2007

U.S. stock indexes finished mostly higher on Monday on the latest round of deal news, including China's $3 billion investment in private equity powerhouse Blackstone Group, but rising oil curbed gains. The Standard & Poor's 500 index rose above the record close it reached in 2000 before giving up some of those gains to end 2 points short of the record, as higher oil prices revived some concerns about the bite that rising energy costs will take out of corporate profits and consumers' budgets.
But every day we go up, people get a little bit more nervous and look for what can derail the train. Today, the most obvious thing is what's going on with energy. U.S. crude oil futures ended above $66 a barrel on uncertainty about supplies from Nigeria. Shares of industrial conglomerates heavily dependent on oil fell, dragging on the Dow. Shares of Alcoa Inc.
The Dow Jones industrial average <.DJI> declined 13.65 points, or 0.10 percent, to end at 13,542.88, after earlier climbing to an intraday record high at 13,586.03. The Standard & Poor's 500 Index <.SPX> rose 2.35 points, or 0.15 percent, to finish at 1,525.10. The Nasdaq Composite Index <.IXIC> gained 20.34 points, or 0.80 percent, to close at 2,578.79.

The Nikkei share average rose 0.60 percent on Tuesday, as Sony Corp. continued its recent rally. But broader gains were limited by continuing concerns about the outlook for the world's second-largest economy. Gross domestic product data released last week showed a greater-than-expected downturn in capital spending. With those numbers weak, it makes institutional investors reluctant to buy. Investors want to see results from the new fiscal year, at the very least first-quarter earnings. The Nikkei <.N225> finished the morning up 105.10 points at 17,661.97. The broad TOPIX index <.TOPX> was up 0.81 percent at 1,724.53. The blue-chip Hang Seng Index <.HSI> was up 0.3 percent, largely in line with the opening level at 20,996.99. All other Asian market are trading flat at current point of time.

Sensex is likely to open 40-60 points up but some profits booking expected after that. So be cautious on going long at opening bell. Technology will underperform the market as Dollar is trading at 40.58 which is around its 9 year low level. Crude has flared to 66.29$ which is a concern and negative for oil marketing companies. Hence they will correct today.

TOP SELLS.........

1. BPCL (Rating 4/5)

2. HPCL (Rating 3.5/5)

3. PATNI COMPUTERS (Rating 3/5)

4. PARADYNE INFOTECH (Rating 3.5/5)


TOP BUYS.....

1. BAJAJ AUTO (Rating 2/5)

2. SUN TV (Rating 2.5/5)

3. ASHOK LEYLAND (Rating 2.5/5)

4. NTPC (Rating 2.5/5)

Note:-
1. Place Stop loss 3-4% below your cost price.
2. Do your own homework before trading.
3. Book profits if you get 2-4% return.

ANURAG DUJARI
Mobile - 09831909904, 09433988791, 09330911514, 09883059291
Messenger ID - anurag130
E-Mail - anurag130@yahoo.com

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