Market prediction

Stock markets in the West clocked stellar rally on Thursday after China reported that it was not reassessing its Euro zone debt holdings. Key markets in the Asia region are trading with positive bias today morning.

Back home, The NSE Nifty is expected to open higher backed by strong movement in the Asian peers. The market is expected to open above the Critical level of 5056 wherein if consistently maintains above this level, it may Target the first Resistance at 5084. Higher to this, Major Resistance is seen at 5105 level. If Nifty falls below Critical, it may slowly come down to the first Support near 5024. Lower to this, selling pressure may intensify wherein it may move to Major Support at 4986 mark.

Major Results Today

Adhunik Metal, Andhra Cements, Apollo Hosp, Apollo Tyres, Asian Paints, Bank of Rajasthan, Bayer Crop, BEML, ,BGR Energy , BRAND HOUSE, Fortis Health, Fresenius Kabi, ,Gayatri Proj ,HDIL , IBN18 Broad, JPINFRATEC, Kalpataru Power, Kingfisher Air, ,ONGC , Punj Lloyd, SAIL, TV Eighteen, Unitech, VGuard Inds, ,Voltas ,

Stock tips

BUY Bank of Rajasthan for 1 week. Target Price 150.

SELL Cairn India for 1 week.

BUY Simplex Projects for 1 month. Target Price 262

BUYNELCO for 1 month. Target Price 134

BUY State Bank of India for 1 Week.

BUY TATA Steel for 1 Week.

NCDEX commodities

Market review

Edible oil complex fell further on selling pressure supported by sharp decline at global markets.

The soy bean June contract made four week low of Rs1933 and closed at Rs1944 levels.

Meanwhile, soy oil June contract recovered from new contract low of Rs440.40 and closed at

Rs443.2 levels.

Outlook

Edible oil imports in April 2010 fell by 22 percent due to huge stockpiles in the domestic market.

Imports during April 2010 reported at 5.43 lakh tonnes against 6.99 lakh tonnes in same month

of last year. Edible oils imports during first six months of edible oil year beginning from

November is reported at 42.9 lakh tonnes almost same as that of last year. Total stock available in the market is estimated at 12.25 lakh tonnes of which 5.75 lakh tonnes lying in the ports.

Global edible oil markets continue to fall on economic crisis in Europe and strong US Dollar. Soy bean futures at CBOT six weeks low of 937 cents and currently trading steady at 943 cents. Soy oil futures made low of 37.15 cents yesterday and currently trading at 37.33 cents.

GUAR SEED

Market review

Despite early monsoon forecasts, guar seed futures failed to fall in a big way as the participants

are cautious ahead of May contract expiry. The active contract June NCDEX made intraday low of Rs2308 and closed at Rs2323 levels.

Outlook

IMD has announced that monsoon is likely to set over Kerala on 30th of May as per normal

schedule. Normal arrival of monsoon is beneficial for the kharif crops. However, market is waiting for region-wise monsoon, where IMD is yet to announce these forecasts. Market is also cautious ahead of May contract expiry. Guar seed futures are expected to remain sideways as participants

are closely watching the monsoon progress.

Commodity Futures Price Outlook

Commodity Market review

Spices complex on National Commodity and Derivatives Exchange ended dropped yesterday on

subdued demand. Widely traded pepper June closed at 16708 down by 216 rupees, Jeera June

contract slipped to 12,217 from 12292 rupees on Friday. Turmeric June finished 14,311 rupees

down by 3.37%.

Outlook

Pepper

Sluggish overseas demand coupled with weakness in spot market push down pepper price in

NCDEX future counters. Spot prices dropped by 100 rupees to 16200 rupees in Kochi; a major

trading hub in Kerala, and daily arrivals increased to 55Mt from 40Mt on Saturday. Overseas

demand for the Indian origin pepper is weak because prices are at premium compared with other

competing countries in the international market. Indian parity in the international market out

priced above $3,900 a tonne. Overseas traders were eyeing on US FDA decision on black pepper

import to America from Vietnam.

Jeera

Jeera futures softened on tepid overseas demand and estimates of higher output. Factors like

normal output in Syria, low overseas demand weighing on sentiment. Production in 2010 is seen

rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009. Spot rates in Unjha, a key

spot market in Gujarat, dropped 19.5 rupees to end at 12,552 rupees per 100 kg.

Turmeric

Turmeric futures on NCDEX registered a fall 3 percent in afternoon trade on Monday triggered by aggressive profit-taking by traders after prices were witnessed to grow more than 36 percent

since the beginning of April till Saturday. Production in 2010 is posted to rise to 2.9 million bags

of 60 kg each from 2.7 million bags in 2009. In Nizamabad, a major spot market in Andhra

Pradesh, the price is reported to have squeezed 25 rupees to 14,805 rupees per 100 kg

CHANA

Market Review

Chana futures ended flat on steady spot prices and lack of fresh triggers in the market. The June

NCDEX contract moved in narrow range of Rs2166-2187 and closed at Rs2179 levels. Spot prices

remained steady at Rs2125 per quintal. Market is also cautious ahead of expiry of May contract

and monsoon reports.

Outlook

Demand for chana is expected to improve with early onset of monsoon and better monsoon

forecasts for this year. Stockiest and farmers are not willing to sell at lower levels on anticipation

of some recovery during June – August. However, huge stocks of chana in the spot markets may

restrict major rise in prices in medium term. Spot prices are quoting steady at Rs2125 per quintal at Delhi. For the day ahead, chana futures are expected to remain in range bound on lack of major triggers.

Stock tips on Balrampur Chini

FIIs have been accumulating shares of Balrampur Chini in large chunks on rumours that the company will announce a positive development over the next few months. Balrampur Chini could enter into partnership deals or effect mergers with a few smaller sugar companies in North. The market is also expecting a “slight change” in the management of the company. The, revenues of sugar manufacturing companies could see an upswing, due to higher production

India Top Stock Picks

Long Term Stock Picks
BUY ICRA for 1 year.
BUY Prime Focus below 280. Target price 400.
BUY TVS Motor Company for 1 year.
BUY Bajaj Auto for 1 year.

Top Stock picks of the day

BUY Larsen & Toubro for 1 month. Target Price 1680

SELL MRPL for 1 month. Target Price 67

BUY Wipro for 1 month. Target Price 696

BUY Ruby Mills for 1 month. Target Price 1212

BUY MRF for 1 month. Target Price 8200

BUY Precision wires india for 1 month. Target Price 116.