Support for Sensex seen at 10436 and 9392: Networth

Networth Stock Broking believes that the Sensex is likely to see strong Support between 50% and 55% levels from its peak which is around 10436 and 9392.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Worst weekly performance of Sensex,Nifty ever: Anagram

Anagram Research Daily Market Review:

Mayhem in the world equity market continued as almost all of them witnessed sharp cuts in today’s trading session. Sensex plunged by 800 points and closed at 10527 while Nifty shed 234 points to close at 3279. On weekly basis, Nifty is down 14.1%, which is the highest ever fall, while Sensex is down 16%, second highest fall ever. Rupee touched an all time low of 49.17 against the dollar and closed at 48.47. Tech bellwether Infosys announced its Q2 results today, which were in line with market expectation. However, company cut it’s full year revenue and EPS guidance by 5% in dollar terms.

In a dramatic move RBI announced a further 100 bps cut in CRR along with a 50 bps cut announced recently. IIP data released today showed a dismal growth of 1.3% as against 7.1% for the previous month and expectation of 6%. Inflation for the week ended Sep. 27 came at 11.80% against the expectation of 12% and 11.99% seen in the previous week. Crude oil touched a 12 month low of USD 81.1 in today’s trade.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Infosys may slip to Rs 960-1000: Gujral

Technical Analyst, Ashwani Gujral feels that if Infosys Technologies does not hold up Rs 1,150 then one could see levels back towards about Rs 960 to about an Rs 1,000.

Gujral told CNBC-TV18, "Infosys has broken down below Rs 1,200 other than this intra-day bounce back, if it does not hold up Rs 1,150 you could see levels back towards about Rs 960 to about an Rs 1,000. So I don’t think after this sort of news you should be playing any sort of bounce back."

He further added, "TCS broke down around Rs 700; that is now headed towards about Rs 460 to Rs 480. Satyam broke down a while back and that could go up to Rs 220-230 sorts of levels. Wipro is looking particularly weak, it held up initially but that is now headed to about Rs 220-225, so technology is quite weak."

Source: Moneycontrol

Ignore ICICI Bank: R Shah

Rajen Shah, CIO, Angel Broking is of the view that one can avoid ICICI Bank.

Shah told CNBC-TV18, "We have been ignoring banks for a very long time and in fact even at this juncture the only financial institution, which we like, is IDFC. Except for that we have been ignoring ICICI Bank and leading private sector banks for a while."

Source: Moneycontrol

Liquidity adequate, global exposure small: ICICI Bk

Chanda Kochhar, Joint MD and CFO, ICICI Bank, said the bank has adequate rupee and global liquidity of Rs 12,000 crore. "We have no international investments, only loans on our balance sheet. We do not use rupee liquidity to fund global activities."

Kochhar said the bank has not seen a scale-down in deposit growths. "The focus this year is on current and savings accounts."

According to her, the bank has not seen an increase in NPAs, or Non Performing Assets, as the corporate sector is holding up. "About 90% of total loans are India related."

She feels the current investment pipeline is strong enough to ensure a 7.5% GDP growth.

Commenting on the banks' UK operations, Kochhar said exposures in the market there are very small given our size and profitability. "NPAs at 0% in UK subsidiary. Over 90% of investment in UK market are to companies with atleast 'A' rating."

She said there is a cash collateral of USD 45 million from the Bumi Group. "The net loan stands at USD 100 million for which there is adequate cover."

Source: Moneycontrol

Mkts close to bottom; to stay consolidated: Raamdeo Agrawal

Raamdeo Agrawal, Director and Co-Founder of Motilal Oswal cautioned investors to maintain a rational approach and to be calm in these times. He believes the markets are close to the bottom and said they would remain consolidated around these levels for some time.

Agrawal feels liquidity is the most welcome step and that the liquidity infusion steps are positive. However, he feels the need for more measures. He is concerned about the integrity of the IIP numbers.

Agrawal said that the FY09 and FY10 estimates would be revisited and sees plenty of downward revision in earnings expectations. He expects consolidation to take place at the top end of the brokerage business.

Source: Moneycontrol

RBI cuts CRR by 150 bps

In an anticipated move, the Reserve Bank of India, or RBI, has cut the cash reserve ratio, or CRR, by 150 basis points to 7.5% with effect from tomorrow in a bid to infuse liquidity into the markets.

On October 6, the RBI had cut the CRR by 50 bps to 8.5%. Today's 150-bps cut includes October 11's cut. The cut will inject liquidity into the system to the tune of Rs 60,000 crore.

Nilesh Shah of Envision Capital said, “The CRR cut is definitely a positive move, which is going to soothe some liquidity fears. The stock market also needs liquidity and this (the rate cut) will help to some extent. Whether this is going to help us beyond a day or beyond an intra-day basis is something that remains to be seen.”

Source: Moneycontrol