Friday, May 25, 2007

Newsletter dated 25th May,2007

U.S. stocks fell on Thursday, as interest-rate concerns spurred investors to lock in profits from the market's spring rally. News that sales of new homes climbed at their fastest pace in 14 years signaled a slowdown in housing may have bottomed out, but it also put the Fed's cut in official rates further out on the horizon. A steady rise in bond yields has investors worried about higher borrowing costs.

The Nasdaq fell 1.52 percent, dragged lower by Network Appliance Inc. People are coming to grips with the idea that not only are there not going to be rate cuts any time soon, but if the 10-year Treasury (yield) goes much higher, then people are going to start talking about the Fed lifting rates again. The market has been expecting an interest-rate cut to encourage economic growth later in the year.

The Dow Jones industrial average <.DJI> slid 84.52 points, or 0.62 percent, to end at 13,441.13, swinging about 200 points during the session. Earlier, the Dow had earlier rallied to a lifetime intraday high of 13,624.55. The fourth day of losses makes this the Dow's longest losing streak since the five-day slide that culminated in the global equity rout on Feb. 27.

The Standard & Poor's 500 Index <.SPX> dropped 14.77 points, or 0.97 percent, to finish at 1,507.51, after earlier climbing nearly 2 points above its record closing high set on March 24, 2000, in the waning days of the dot-com bubble. The Nasdaq Composite Index <.IXIC> fell 39.13 points, or 1.52 percent, to close at 2,537.92.

Japanese stocks fell broadly on Friday as investors, concerned about falls in U.S. and Chinese stocks, grabbed profits in property shares and other recent gainers such as Canon Inc. Tsuyoshi Segawa, equity strategist at Shinko Securities, said concern that a next global market sell-off might be triggered by the Chinese market is degrading market sentiment around the world, including Japan. The broad TOPIX index <.TOPX> finished the morning down 1.77 percent at 1,707.42 after briefly falling 2 percent. The Nikkei <.N225> lost 1.59 percent, or 280.86 points, to 17,416.11.

The blue-chip Hang Seng Index <.HSI> was down 1.12 percent, with Chinese stocks leading the fall after former U.S. Federal Reserve Chairman Alan Greenspan on Wednesday warned of a "dramatic contraction" in Chinese shares. The index opened down 1.18 percent at 20,553.78 after a public holiday on Thursday. The index for Hong Kong listed Chinese companies <.HSCE> was off 1.81 percent at 10,677.60 after the first 30 minutes of trade. All other Asian markets are down anywhere between 1-1.5%.

Today Sensex might open 150-200 points lower accompanied by blue-chips and heavyweights. Some mid-caps are likely to correct. We might see some buying in Technology and oil marketing stocks at lower levels.

TOP BUYS.....

1. SATYAM COMPUTERS

2. INFOSYS

3. BPCL

4. HPCL

5. BAJAJ AUTO

6. IOC


TOP SELLS.....

1. TVS MOTORS

2. NTPC

3. ADVANTA (at higher levels)

4. EURO CERAMICS


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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