Irani negative on metal space

Mehraboon Irani, VP, PMS, Centrum Broking is negative on metal space.

Irani told CNBC-TV18, "We are passing through a bad phase as far as metals go, I have been negative on this sector. Even right now just because prices have come down and the balance sheets would be very healthy, I do not think I would venture out and go and buy the metal stocks now because we need to understand it is a complete slowdown all over the world. I think what ArcelorMittal announced yesterday is a clear indication of the fact that even corporate are accepting the facts. So cut in production definitely while it could be possibly a little bit healthy over a medium-term as far as the demand supply equation goes but for the time being I personally feel that there could be some more pressure on metal stocks because I think you cannot go away from the fact that there is a complete slowdown and it is going to affect this particular sector."

He further added, "We have seen a complete meltdown as far as prices go, I am not talking about the stock price, I am talking about the metal prices itself. I personally feel that this pressure on metal prices is going to continue. So I remain negative on the sector even at the moment while many would feel that otherwise the stocks would look attractive and there is nothing much to fall but that is not the way one should be looking at these stocks. The outlook is uncertain right now so I do not think I am tempted to buy into any metal stock even at the present levels."

Source: Moneycontrol

RIL may continue to underperform: Irani

Mehraboon Irani, VP, PMS, Centrum Broking is of the view that Reliance Industries may continue to underperform and be a little under pressure in the near-term.

Irani told CNBC-TV18, "I have been expecting for quite some time that Reliance should be an underperformer and I was surprised the way the share shot up sharply in the last few days. So the way the stock has faulted over the last two days, I am not too surprised. I personally feel Reliance should possibly find its base sooner rather than later. I do not expect the stock to be a great outperformer because there are problems as far as refining margins and other things goes for the company. But being of the large size that the company has if somebody asks me whether one should sell into a Reliance my answer would be no because for the longer-term a stock like Reliance is something which should be there in the portfolio at least at the present price one should not be exiting. But I was expecting this stock to be an underperformer for the last few months and I think the stock may continue to underperform and be a little under pressure in the near-term."

Source: Moneycontrol

Reliance may retest recent lows: Mohindar

Rahul Mohindar of Viratechindia is of the view that If Reliance Industries slips another Rs 10 odd from the current level; we are heading once again to retest the lows that it recently made.

Mohindar told CNBC-TV18, "Where we are sitting at is very important support. If Reliance slips another Rs 10 odd from the current level, we are heading once again to retest the lows that it recently made. But technically if we look at various short-term as well as medium-term indicators – they all point to a majority point to a probable new low. So that’s what scary and if that’s going to be a situation with Reliance Industries. That’s probably not going to be saving the Nifty too much of grace."

Source: Moneycontrol

Downside left in technology pack: Mohindar

Rahul Mohindar of Viratechindia is of the view that there is significant downside in technology pack.

Mohindar told CNBC-TV18, "I think honestly, while metal look weak, I don’t see a fresh short opportunity building up. From here I don’t see a Hindalco or a Tata Steel losing something like 15-20%, no out and out crash that I see in this sector or for that matter in deeply beaten down sector like real estate, which goes with it. If I really had to pick shorts into the market, I would still continue to focus on the technology pack, which has shown extreme weakness even stocks like Infosys and all continue to look like they have significant downsides still left in them."

Source: Moneycontrol

Infosys has support at Rs 1220-1230: Mohindar

Rahul Mohindar of Viratechindia is of the view that Infosys Technologies has support at Rs 1220-1230. Below this level, it can slip in three-digit, he added.

Mohindar told CNBC-TV18, "I have been exceptionally bearish on technology stocks. In fact, we have been recommending sell for sometime on these. I still think stocks like Infosys etc, we have got some minor support let us say on Infosys is around Rs 1220-1230 – but if this level really breaks down, we are probably going to even get below the four-digit mark. So I see a severe cut in almost all the IT stocks. So despite the fall we have seen in Wipro or TCS, we have seen quite a rapid intraday correction down today. I still think that’s going to continue and probably this is the sector to stay short in."

Source: Moneycontrol

Mkts lose ground after disappointing inflation nos.

What a volatile session this was. Early in the morning, predictably with the rest of the world, which had gone through a sell-off early in the day, we saw a gap-down opening. Within minutes the markets were down about 4%. The market then recovered quite sharply at about two o’clock perhaps on expectations that the inflation number would go to single digits. That was the whiff doing the rounds in the market throughout the morning. Then as the inflation number came in at 10.72% the market slipped once again. So, the end wasn’t good. But we have seen lots of topsy-turvy movements during the course of the day, and finally, Sensex closing 400 points lower at 9,700 and the Nifty too drifted down another 100 points after yesterday’s sell-off, and this time it is below 2,900. So, we have given up quite a bit of ground over the last two days about 8–9% on the Sensex and the Nifty. Yesterday, it was 5% and today about 3–3.5%.

Metals once again got singled out for punishment. We saw big sell-offs in SAIL and Tata Steel. Tata Motors had a big drubbing. Reliance is the big stock which is really putting the market down and other stocks like Bharti are not helping the index at all. Hence, at the end of two days of setback, the big question is how much deeper does this market have to get cut before it stabilises once again.

Source: Moneycontrol

See 5-10% YoY decline in pricing for IT cos: JP Morgan

Bhavin Shah of JP Morgan said volumes and pricing of IT companies would be under pressure. He sees a decline of 5-10% YoY in pricing, expects a decline in IT spending going into 2009, and a downside risk in the tech pack.

Shah sees a steady moderation in sequential growth for most technology companies and feels that technology companies are a lot more cautious due to some project delays.

He does not expect IT outsourcing to be scaled back or the outsourcing budgets to be under pressure.

Source: Moneycontrol