BSEIndia: All Stock Market News: [sharetrading] 9AM with Emkay

Monday, March 08, 2010

[sharetrading] 9AM with Emkay

9AM with Emkay - 9 March, 2010

The Morning Meeting Notes as on 9^th March, 2010.

n Research Views

Bill to amend SBI Act introduced in Lok Sabha

Yesterday finance ministry introduced the bill to further amend the State Bank of India Act, 1955. The key amendments which are very positive for SBI are

n Reducing minimum government stake required, from 55% to 51% - very positive as SBI can raise upto Rs35-40bn without having to worry about the government equity

n Allowing SBI to issue preference shares – SBI can raise upto Rs120-130bn without equity dilution

n Allowing SBI to issue bonus shares

We believe that the amendments were known to the market and should have been discounted in price. However, we see a larger picture here in terms of intent of the government to now push in reforms and that too quite expeditiously. Over last fifteen days we have seen flurry of activities on government side which includes: (1) raising prices of fuels, (2) raising the coal prices for Coal India, (3) induction of Women's Reservation BILL and (4) roll back of exice duties etc. The government has introduced these despite strong resistance from its own allies. This, we believe is very positive for market, fiscal consolidation and India's global credit rating.

n Technical Comments

Momentum sees a deterioration

With momentum seeing an evaporation backed by negative MACD crossover and negative RSI divergence, a small dip may be the likely scenario as of now. However the dip may not worsen because the daily MACD is still in the buy mode and above the neutral line. In the coming session the dip will get confirm on the break of 5090 level. Below 5090 the likely targets are 5028, 4991 and 4954. However on upside the clearance of 5148 will stretch Nifty for higher targets of 5200 and above.

BSE Bankex:

Buying was witnessed in the BSE Bankex index and thereby it continued its northbound journey. Finally closed at 10310 with a gain of 1.09%. Going forward this index is still looking strong and we maintain our upside target of 10698.

BSE Auto:

BSE Auto outperformed the broader markets and tested the second mentioned target of 7607. Going forward now this index if now starts trading above 7706 levels then it will test 8143 levels. However downside level of 7481 will play as a support in near term.

Click here to read report: 9AM with Emkay

Regards,

Emkay Research

Emkay Global Financial Services Ltd.

Paragon Center, H – 13 - 16, 1^st Floor,

Opp. Century Mills, Pandurang Budhkar Marg,

Worli, Mumbai - 400 013.

Tel: 6612 1212

Fax: 6624 2410

E-mail: emkayresearch@emkayglobal.com

--------------------------------------------------------------------------------

DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information and may not be reproduced or redistributed to any other person. The manner of circulation and distribution of this document may be restricted by law or regulation in certain countries, including the United States. Persons into whose possession this document may come are required to inform themselves of, and to observe, such restrictions. This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. No person associated with Emkay Global Financial Services Ltd. is obligated to call or initiate contact with you for the purposes of elaborating or following up on the information contained in this document. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon. Neither Emkay Global Financial Services Ltd., nor any person connected with it, accepts any liability arising from the use of this document. The recipient of this material should rely on their own investigations and take their own professional advice. Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. We and our affiliates, officers, directors, and employees world wide, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company (ies) discussed herein or may perform or seek to perform investment banking services for such company(ies)or act as advisor or lender / borrower to such company(ies) or have other potential conflict of interest with respect to any recommendation and related information and opinions. The same persons may have acted upon the information contained here. No part of this material may be duplicated in any form and/or redistributed without Emkay Global Financial Services Ltd.'s prior written consent. No part of this document may be distributed in Canada or used by private customers in the United Kingdom. In so far as this report includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed.

------------------------------------------------------------------------   Disclaimer: This communication may contain confidential, proprietary or   legally privileged information or subject to copyright. If you receive   this communication and are not the intended recipient, please delete it   immediately and notify the sender of having received it erroneously. The   recipient acknowledges that Emkay is unable to exercise control or ensure   or guarantee the integrity of the contents of the information contained   in e-mail transmission and further acknowledges that any views expressed   in this messages are those of the individual sender and does not bind   Emkay unless the sender does so expressly with due authority of Emkay.   Before Opening any attachment please check them for viruses and defects. ------------------------------------------------------------------------  ** Message has been scanned by Emergic MailServ **