Trading Strategy and Market Outlook

Indian Share Market falls down with some stocks like "Bharti Airtel" showing 4- year low. Almost every sector closed negative.

Why Bharti Airtel shares have hit a 4-year low?

Following are the answers for the same :-

Bharti Airtel fell as much as 3.44 per cent to its lowest intraday level since October 2008 today. 

1) Credit Suisse has become the latest brokerage to downgrade Bharti Airtel. 

2) On Tuesday, Morgan Stanley had downgraded Bharti Airtel to "equal-weight" from "overweight" and cut its target price by nearly 25 per cent to Rs 280. 

3) Pressure on profits : Intense competition has forced the carrier to pare some call prices and spend more on networks and marketing in an effort to hold market share, squeezing margins.

4) African business yet to turn around

5) High debt continues to adversely affect the company's performance

More Details - you can get from profit.ndtv.com

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Reliance Ind Shares Risen Up : 5 Month High

Reliance Industries shares were among the top gainers on the Nifty index Thursday as a report by global brokerage Goldman Sachs said it can potentially become a $100 billion stock in four years. Reliance, the most valuable Indian firm in terms of market capitalisation, is currently valued at around $47 billion.

The stock traded 2.6 per cent higher at Rs 820.40 on the NSE to hit a 5-month high.

The BSE Sensex and the Nifty index bounced back from the day's low on the back of the outperformance in the stock.

Goldman said Reliance needs to get government approvals on investments and gas prices, restrict its focus to core businesses, and return some of its surplus cash in the form of dividends or buybacks, among other measures.

Reliance's underperformance over the last 18 months has cast a shadow over Indian equity markets. That's because the stock carries a substantial weightage on both the Sensex and Nifty indices. The stock, once a favourite with foreign funds, has seen a slump in investor interest as profits shrunk amid a slowdown in its core energy business and recent forays into consumer-focused segments such as telecom and retail have yet to garner profits.

SOURCE : Profit.ndtv.com

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Indian Share Market Trend : BSE

BSE may list shares in first half of 2013
One of the country’s premier stock exchanges, Bombay Stock Exchange, has set up a working committee to process its proposed initial public offering (IPO).

According to Ashishkumar Chauhan, Interim CEO of the "cash-rich" Exchange, said the committee is in the process of preparing a red herring prospectus and fine tuning other formalities. “The company may get listed in the first or second quarter of calendar 2013,” he said.

According to him, the idea of IPO is to give an exit route for its existing investors, rather than mobilising funds, and hence “it will be an offer for sale.”

At present, various broking houses hold over 43% stake in the company, followed by institutional investors with close to 40% and the remaining stake is held by some retail investors.

Under the current regulation, BSE needs to dilute up to 25% stake, and the committee will work out an elaborate plan on how to go about this, said Chauhan.

On BSE’s efforts to attract QFIs (qualified foreign investors), he said the exchange encourages and facilitates setting up of offices abroad by broking companies. BSE is the first Indian stock exchange to ring in the first QFI transaction (by a US-based investor) in June. One of its broking houses is now setting up an office in Dubai and is likely to go on stream by September this year.

Talking about BSE’s competitiveness in terms of transaction cost in the futures and options segment, Chauhan said the exchange charges just Rs 50 for every Rs 1 crore transacted in Options. This results in option trading cost on BSE being 85% lower than other exchanges. It does not charge any transaction cost for futures.

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Realiance Look Cheap : Market Updates

We saw a big spike up in RIL yesterday, there is no clear cut explanation or something which can be given as a reason for the same, but i think the combination of factors made that move possible. One was the KG basin talk. Secondly, the refining margins like the product margins have also moved up sharply over the last few weeks. So, some analysts are becoming more bullish on refining margins for this quarter.

Overall, the stock continues to be cheap. However, I think the triggers are still lacking in terms of creating a longer term bigger upmove because the production in KG basin is still falling. So, I think it’s a cheap stock. It will keep on having its rallies in between, but there doesn’t seem to be any big upmove coming through, unless and until the telecom story starts unfolding.

By - Prabhudas Lilladher

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Free Share Tips : Indian Share Market

Today the Indian Share Market opened on a very weak and negative basis. At 9:28am (IST), the BSE Sensex was at 17,264, up 28 points over the previous close. It had earlier touched a day’s high of 17,264 and day's low of 17,200. It opened at 17,244.
The NSE Nifty was quoting at 5,236 up 7  point sover the previous close. It had earlier touched a day’s high of 5,236 and a day’s low of 5214. It had opened at 5220.
Indian Shares to Trade in Today 1 August :-
SBI: Buy with a target of 2200 and a stop loss of 1929.4.
Cipla: Buy with a target of 360 and a stop loss of 328.4.
ITC: Sell with a target of 240 and an intraday stop loss of 261.6. 
Asian Paints: Sell with a target of 3400 and a stop loss of 3717.

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