Money Tree

We had recommended Dish TV on 3rd May 2007 at Rs. 110-112 with a short term target of Rs. 135. Today the stock traded above our target price for a long time and closed at Rs. 134.15 today. We had maintained that once the stock crosses Rs. 110 level decisively then it would have its next target placed at Rs. 122 and then Rs. 135. Today it has aceived our final short term target and the stock afer crossing Rs. 110 level did not go below that as indicated in our recommedaiton.

Markets closed firm

The markets after opening flat in the morning gained strength during the day and closed firm at the end of the session. The NIFTY closed at 4293.25 up 36.70 points and Sensex closed at 14508.21 up 110.32 points. The advance decline ratio was also positive with 594 advancing stocks to 479 declining stocks at NSE. The Sensex is above 14500 levels and very near to its all time highs. NIFTY is also near 4300 levels and in view of the ample liquidity in the system it seems that the Sensex is poised to take out its all time high. A number of Mutual funds have come out with their NFOs recently and most of them in micap and smallcap segments, the money will get invested in next couple of months and the foreign funds would keep flowing in with the rising rupee. The near term prospects of the Stock markets are looking bright.
Rupee gained further strength and Dollar fell below 40.50 levels and traded near 40.46 and 40.47 levels during the day. A strong support is place at 40.40 levels and if breached the dollar may slide down to below 40 levels in a short span of time.

Kamalnath hints at sops for labour intensive export units

Commerce Minister Mr. Kamalnath has hinted at announcement of incentives for labour intensive exporting units to combat the effect of rising rupee and provide some relief to the export industry. The decision if implemented will benefit the Textile industry as a number of companies are engaged in export activities at very thin margins.