Newsletter dated 7th June,2007
U.S. stocks fell sharply for a second day on Wednesday after data showing higher-than-expected labor costs stoked worries about inflation and interest rates. Rate-sensitive sectors such as utilities and banks also pulled the major indexes lower after an interest-rate hike by the European Central Bank underscored the trend of rising rates. The two-day sell-off in stocks comes just days after the S&P 500 had completed its best two months in nearly four years, leading investors to question whether this could be the start of a long-anticipated pullback. The notion that the Fed is not cutting rates, and long- term interest rates going up, is going to send the market down in the short-term.
The Dow Jones industrial average <.DJI> slid 129.79 points, or 0.95 percent, to end at 13,465.67.The Dow is now down 226.33 points from its lifetime high of 13,692.00 set during the session on June 1. The Standard & Poor's 500 Index <.SPX> tumbled 13.57 points, or 0.89 percent, to 1,517.38, posting its biggest two-day drop since March. The Nasdaq Composite Index <.IXIC> skidded 24.05 points, or 0.92 percent, to close at 2,587.18.
European shares closed lower for a third consecutive day on Wednesday after the European Central Bank raised interest rates, fuelling concerns that further rate hikes might be on the way. Banking stocks weighed on the pan-European FTSEurofirst 300 index <.FTEU3>, which closed 1.59 percent down at 1,586.45 points, its lowest close in a week. This is down to interest rate worries and concern that liquidity could decline in the medium term. But we think this is exaggerated," said Sven Krause, fund manager at LBB Invest. The ECB lifted interest rates to a six-year high of 4 percent and showed its readiness to hike again to curb inflationary pressures in a strongly expanding economy.
Asian markets have reacted to the global markets. They opened lower by 1% in the opening trades but have recovered from their lows, though still in the red. Our markets are also likely to open lower due to global cues and yesterday's weakness. Sensex might open 120-150 points lower and nifty 30-35 points lower but recovery is expected later in the days as our markets have already reacted yesterday with 250 points loss in the Sensex. Look for the levels of 4162 and 4140 for nifty spot. These are support levels for nifty. Dollar has shown strenght to 40.69 which is positive for Tech and export companies. So I would recommend to go long on tech stocks at lower levels. Heavy weights might see bottom fishing at lower levels.
TOP BUYS (at lower levels).....
1. ONGC
2. RELIANCE INDUSTRIES
3. INFOSYS
4. NIIT LTD (dark horse)
5. RPL
6. UNITECH
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
Disclaimer and Terms of Use: Stock market is subject to risk. High risk high gain is the key to stock market. We are not responsible for any loss or profit associated with stocks mentioned on this site/ by us. Under no circumstances will we be held liable for losses incurred due to information presented anywhere on the site or given through yahoo messenger or SMS. Please do your own research before establishing an equity/ derivatives position in a company. Not all stocks recommended by us are suitable for your investment needs. Carefully evaluate your own risk appetite. Subscription Prices subject to revise whenever required. Subscription Fees once paid cannot be refunded under any circumstances. Any error in this document cannot be claimed by anyone. Technical faults during online calls or SMS cannot be claimed by any of the clients and it’s beyond the limit of the service provider. Due to technical faults, the service might interrupt for short duration and no claim or refund will be entertained. Delay in SMS delivery is not within our limits and its totally mobile operator dependant. The articles on this site are not written by a registered investment advisor. The author may or may not be holding a position in companies that are being analyzed. More likely than not, the author will have an interest in the stock mentioned.The price offer and services are complimentary and subject to revise when and where required. No refund/ No Claims can be entertained once subscription is availed for that period.
The Dow Jones industrial average <.DJI> slid 129.79 points, or 0.95 percent, to end at 13,465.67.The Dow is now down 226.33 points from its lifetime high of 13,692.00 set during the session on June 1. The Standard & Poor's 500 Index <.SPX> tumbled 13.57 points, or 0.89 percent, to 1,517.38, posting its biggest two-day drop since March. The Nasdaq Composite Index <.IXIC> skidded 24.05 points, or 0.92 percent, to close at 2,587.18.
European shares closed lower for a third consecutive day on Wednesday after the European Central Bank raised interest rates, fuelling concerns that further rate hikes might be on the way. Banking stocks weighed on the pan-European FTSEurofirst 300 index <.FTEU3>, which closed 1.59 percent down at 1,586.45 points, its lowest close in a week. This is down to interest rate worries and concern that liquidity could decline in the medium term. But we think this is exaggerated," said Sven Krause, fund manager at LBB Invest. The ECB lifted interest rates to a six-year high of 4 percent and showed its readiness to hike again to curb inflationary pressures in a strongly expanding economy.
Asian markets have reacted to the global markets. They opened lower by 1% in the opening trades but have recovered from their lows, though still in the red. Our markets are also likely to open lower due to global cues and yesterday's weakness. Sensex might open 120-150 points lower and nifty 30-35 points lower but recovery is expected later in the days as our markets have already reacted yesterday with 250 points loss in the Sensex. Look for the levels of 4162 and 4140 for nifty spot. These are support levels for nifty. Dollar has shown strenght to 40.69 which is positive for Tech and export companies. So I would recommend to go long on tech stocks at lower levels. Heavy weights might see bottom fishing at lower levels.
TOP BUYS (at lower levels).....
1. ONGC
2. RELIANCE INDUSTRIES
3. INFOSYS
4. NIIT LTD (dark horse)
5. RPL
6. UNITECH
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
Disclaimer and Terms of Use: Stock market is subject to risk. High risk high gain is the key to stock market. We are not responsible for any loss or profit associated with stocks mentioned on this site/ by us. Under no circumstances will we be held liable for losses incurred due to information presented anywhere on the site or given through yahoo messenger or SMS. Please do your own research before establishing an equity/ derivatives position in a company. Not all stocks recommended by us are suitable for your investment needs. Carefully evaluate your own risk appetite. Subscription Prices subject to revise whenever required. Subscription Fees once paid cannot be refunded under any circumstances. Any error in this document cannot be claimed by anyone. Technical faults during online calls or SMS cannot be claimed by any of the clients and it’s beyond the limit of the service provider. Due to technical faults, the service might interrupt for short duration and no claim or refund will be entertained. Delay in SMS delivery is not within our limits and its totally mobile operator dependant. The articles on this site are not written by a registered investment advisor. The author may or may not be holding a position in companies that are being analyzed. More likely than not, the author will have an interest in the stock mentioned.The price offer and services are complimentary and subject to revise when and where required. No refund/ No Claims can be entertained once subscription is availed for that period.
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