Friday, December 31, 2010
Book Profits in Long United Phosphorus Jan Future given yesterday
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Buy and Hold....
Reliance Capital (BUY, above Rs657, Target Rs680): On the hourly chart, the stock gave an upside breakout in Thursday’s trading session. It suggests that the sideways range is about to end and may reverse into an uptrend. On Monday, the stock advanced by ~1% confirming the bullish set up. We continue to remain positive on the stock from technical perspective as the stock has managed to hold on to its short-term support of 10-DMA in ongoing market volatility. Any move above the levels of Rs657 is likely to re-ignite momentum in the counter. We recommend traders with high risk appetite to buy the stock above Rs657 with SL of Rs647 for target of Rs680.
Market Commentary ..
The world is all set to say good bye to a tumultuous 2010 and welcome 2011 with fingers crossed. For the markets, it was a year of consolidation after the big recovery of the previous year. As usual, there was no dearth of events – both nasty as well as positive ones. The Indian market’s performance was clearly among the better ones and the new year is expected to be equally promising.
Today, the start appears to be a positive one following Thursday’s smart gains. Though the Nifty rollover in the F&O segment was on the lower side, one should not get unduly worried as trading was pretty muted for most part of December.
For the day, one should not have too high expectations as trading volume will be moderate. The key indices could end modestly positive but will be mostly rangebound.
The Nifty has sustained above 50 DMA and closed above 6100. The market is likely to remain positive as long as Nifty sustains above 6000. Immediate resistance is seen around 6140.
Corporate Snippets
± iGate will sign a definitive agreement to buy a controlling stake in Patni Computers. (ET)
± MOIL is in talks with Gabon’s government over acquiring possible mining concession in the central African state. (BS)
± HCL-Infosystems to acquire 20% stake in Tech Mart Telecom Distribution, a Dubai based partner of Nokia Cooperation. (BS)
± MRF is planning to sell/transfer its speciality coating division to its subsidiary. (BS)
± Hindustan Copper FPO may be at 72% discount. (ET)
± Cummins India plans to hike prices by 3-5% of its generators sets in the range of 7.5-3000KVA from 1st quarter next year. (BL)
± Strides Arcolab has struck a deal with Pfizer to sell 16 of its approved ANDAs and 6 filed ANDAs. (BS)
± Lanco Infratech has won Rs10bn road projects in Uttar Pradesh. (BS)
± Suven Lifesciences has received two product patents for its new chemical entities. (BS)
± Sales of Nano may touch around 5000 units in December. (ET)
Thursday, December 30, 2010
Book profit in HDFC given yesterday
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We reiterate buy & hold on Bata at Rs365 with SL of Rs359 for target of Rs377
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Sell Cipla (366.65) with s/L 370 target 364,362
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Market Commentary ..
After a long time we had a decent session as the bulls re-discovered their winning ways and volumes improved ahead of the F&O expiry. There could be a bit of extra volatility owing to the derivative settlement. The opening is likely to be a positive one, and the key indices could extend gains from the previous session.
The Nifty broke out of the 5970-6020 range to close above 6050. But, one needs to exercise some caution as the bulls might face resistance at higher levels.
The rangebound and light volume pattern of the last couple of weeks has been frustrating. Hopefully there will be some excitement before we bid farewell to 2010.
Oil companies will be in focus as the much-anticipated EGoM on diesel and LPG price hike has been postponed again.
± Sebi has mandated that companies with less than 25% public float will have to raise funds through a public share sale and not through private placement to institutions. (ET)
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Corporate Snippets
SAIL agrees to shell out 8% more for imported coal. (ET)
± SBI to reduce interest rates to 10-10.5% for setting up high value dairy, poultry, horticulture projects and construction of warehouses, rural godowns and cold storages. (ET)
± SBI will extend its teaser home loan scheme beyond December 31. (BS)
± NTPC is likely to get a Cabinet nod to invite tenders for a mega Rs180bn procurement of nine supercritical units. (BS)
± Mahindra & Mahindra to launch a new premium-end pick-up truck in the first half of next year. (BL)
± IOC has decided to go ahead with its massive Rs 550bn refining capacity expansion programme irrespective of the current adverse business conditions. (FE)
± Gayatri Projects has stated that its JV with Maytas Infra received an order worth Rs11.31bn. (BL)
± STC India makes Rs5.5bn claim on JSW Steel after purchase of Ispat Inds. (ET)
Wednesday, December 29, 2010
Buy and Hold....
Buy GSPL Jan Future in range of Rs116 -117 for the target price of Rs121 with a stop loss placed at Rs113.5. Lot size: 2000 Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000.
Pri Market Commentary ..
Just when one was hoping that the “scam-tainted” 2010 would probably end on a happy note, comes another shocker. Citigroup has been hit by a fraud in its Gurgaon branch. It might not have a wider impact on the market sentiment but surely adds to the worries linked to the lack of governance.
As far as the market is concerned, the lackluster and rangebound pattern of December will continue. Traded volumes, which have been disappointing of late, could get some boost thanks to the F&O expiry on Thursday.
The broader market may fare a bit better than the Large Caps in the near term. But, be careful while dealing in illiquid and dodgy counters. Not too much should be made of the excruciatingly dull markets as movements are exaggerated either higher or lower. As the volatility ebbs, wide move of 100 points is expected on the breakout beyond 5970-6020.
Sell Tata motors (1268.90) with s/L 1278 tgt 1260, 1255
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Reliance Infrastructure has bagged the consultancy contract for supervisory control and data acquisition (SCADA) relating to power distribution for Patna. (BL)
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Corporate Snippets
SBI raised Rs5bn at 9.05% through three-month certificates of deposits. (BS)
± HPCL may look at merging Prize Petroleum Company Ltd with its internal exploration and production arm HP E&P. (BS)
± Lakshmi N Mittal and HPCL plan to sell a 10% stake each in the under-construction Bathinda refinery in a public offering in Q4 of 2011 to raise Rs10-15bn. (BS)
± NTPC will takeover 3,000-odd acres of vacant land from Patratu Thermal Power Station (PTPS) in Jharkhand to set up 1320 mw of thermal power generation capacity at an investment of RS66bn. (ET)
± BHEL has secured two breakthrough orders from Indian Railways for the development, manufacture and supply of 3-Phase IGBT-based propulsion systems for Electric Locomotives and AC Electric Multiple Units (EMUs). (ET)
± Punj Lloyd secured order from Hirco Group for two commercial buildings to be completed in 24 months
± Gitanjali Gems has planned a “restructured jewellery brand holding company” where it will divest 10% of equity to private equity investors, to raise US$100mn. (BS)
Tuesday, December 28, 2010
Market Commentary ..
India largely survived the China scare as did the US markets. For most part of Monday, even the Chinese markets were firm before things took an ugly turn in late trading. That had a sentimental impact on India as well as the European markets.
The start today could be a better one but the moot point is whether those early gains will stay by the close. Keep a watch on the overseas markets, particularly China after the weekend interest rate hike. With not much happening in the main indices, the broader market could hog the limelight.
The Nifty failed to sustain above 50DMA of 6023 and if it closes below 5970, the short term trend could turn negative.
Airline stocks might see some action as severe cold weather is taking a heavy toll across the Northern Hemisphere even as fog hits air and rail travel in India.
Corporate Snippets
± NTPC has commissioned the seventh unit of the Korba Super Thermal Power Station, with a capacity of 500mw in Chhattisgarh. (ET)
± iGate is set to acquire Patni Computer Systems for US$1bn, at a price of around Rs525 per share, after it reached an understanding with its promoters on the contentious issue of a non-compete provision. (ET)
± PFC and REC are hiring consultants to advise them on either setting up a bank, or buying one, to cut their cost of funds. (ET)
± Maruti Suzuki is working on a small SUV to tap other growing segments in the domestic car market. (BL)
± Power Grid Corporation has paid Rs1bn as compensation to farmers for land acquisition in past two years. (BS)
± Divestment in Hindustan Copper, which aimed to raise Rs40bn, had been deferred and might now take place either in February or after the budget. (BS)
± Bharti is looking at launching its Africa-centric DTH operations in early-to-mid 2011under the Airtel digital TV brand. (FE)
± Tata Steel UK, the British unit of India's biggest producer of the alloy, borrowed US$2.9bn to refinance loans taken to buy Corus Group Plc. (FE)
± Lanco Infratech to hive off its power business into a separate company with the aim of hitting the capital market with an initial public offer in 2012 for financing growth plans. (ET)
Monday, December 27, 2010
European markets open weak: CAC Index down 1% and DAX Index down 1.3%
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Asian markets update: Shanghai Index down 1.3% and Kospi Index flat
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TATA STEEL; trading strong hold for target
Buy Tata steel (673.35) with s/L Rs 668 target Rs 678,682
Pri Market Commentary ..
Fears of a weak start in the last trading week of the year appear to have been unfounded. The Chinese market has shrugged off the weekend rate hike after premier Wen Jiabao said his government will be able to contain inflation. Stocks in Japan too have gained. Markets in Hong Kong are shut.
We expect a steady start though things might turn a little choppy due to the F&O expiry. Trading volume could get a fillip owing to the derivative settlement but the overall activity may remain sluggish. The key indices are unlikely to budge much from the current position.
Real action is expected only in January when markets will digest latest quarterly results, along with fresh economic statistics. The RBI’s quarterly review will also be an important event in the face of the fresh upturn in inflation.
Global markets will continue to see muted action to the year-end factor. Individual stocks will continue see some action based on the news flow. The Nifty failed to surpass 50 DMA. Therefore, the sentiment remains cautious. We expect the Nifty to be in a range of 5850-6080.
Corporate Snippets
± Allahabad Bank has sought infusion of Rs 10bn from the government; bank is also planning to raise Rs14bn Tier-II bonds before the close of this fiscal. (BL)
± International Coal Ventures, an SPV formed by Steel Ministry to acquire coal assets abroad, and including SAIL, Coal India, NTPC, NMDC and Rashtriya Ispat Nigam, has a month's time to bid higher than US$3.9bn for Riversdale Mining. (BL)
± Welspun Infra Projects, a closely held entity of the Welspun Group, says it would acquire 35% stake in Leighton Contractors India, the Indian operations of Australian infrastructure major Leighton International, for Rs4.7bn. (BS)
± Coal India to start work in 2 Mozambique blocks next fiscal. (BL)
± GMR Infrastructure arm GMR SEZ & Port Holdings has entered into a share subscription agreement to subscribe to 51% in Kakinada SEZ. (BS)
± Tata Steel has decided to raise long-term funds of up to US$1bn by a way of share sale through the Differential Voting Rights route. (BS)
± Gujarat State Petroleum Corp. has struck a gas reserve in an on land exploration block at Ankleshwar in the state. (ET)
± Titan Industries plans to add around 108 outlets in its key verticals of jewellery, watches and eye-gear to reach a total strength of 700 by end the of this financial year. (BS)
Friday, December 24, 2010
RELINFRA; Intraday book profit at 807
all our call bang on target,
marry cristmas /////////////////////
marry cristmas /////////////////////
INDIA INFOLINE LIMITED Outcome of Board Meeting
India Infoline Limited has informed the Exchange that the Board of Directors of the Company at their Meeting held on December 23, 2010 approved the proposal of buy-back of Equity Shares under the authority of the Board of Directors Pursuant to the first proviso to section 77A (2)(b) of the Companies Act,1956 and the SEBI (Buy-back of Securities) Regulations 1998. The Board has approved the proposal of buy-back of Equity Shares of the Company upto an amount not exceeding 10% of the Paid-up Equity Capital and Free Reserves of the Company under the open market using Stock Exchange system, subject to a maximum price of Rs. 99/- per share and a maximum outlay of Rs.104 Crore.
Buy & Hold SBI at Rs2755 with SL of Rs2729 for Target Rs2808
our call trading strong
hold for target
hold for target
Buy Tata chemicals on dips
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Sector Watch: Tyre, Sugar & Banking
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Corporate Snippets
± Coal India to miss production target by 16mn tons this fiscal. (BS)
± Bharti Airtel has announced launch of a direct underground terrestrial link between India and China. (BL)
± Tata Motor’s Nano has received the good design award for 2010 from Chicago Anthenaeum. (ET)
± SCI has invited bids for commencing a ferry service between India and Sri Lanka from January. (BS)
± Adani Power has synchronized the countries first supercritical unit of 600MW plant at Mundra. (ET)
± The Board of Indian Hotels has cleared a proposal to issue shares and warrants amounting to Rs8.7bn to Tata Sons on preferential shares. (ET)
± Reliance MediaWorks has inked a MoU with Russian World Studios. (ET)
± Temasek picks over 3% stake in Max India. (ET)
Market Commentary ..
Onions and other veggies are making headlines for hitting the household budgets and adding to the UPA’s woes. Food inflation, which seemed to be softening, has surged to 12%. It could spike further up if the Government goes ahead with a hike in diesel and LPG. Crude oil is hovering around $91.51, amid optimism that the US economy is slowly getting back on track.
Meanwhile, the Indian markets seem to be suffering from the holiday syndrome, completely lacking excitement. December has been utterly forgettable for India even as “western” markets are enjoying a Santa Clause rally.
FIIs and other influential institutions have been on the sidelines, leading to a listless trend. We expect a slightly lower start and rangebound movement for the key indices.
Next week, there could be some action owing to the F&O expiry, but don’t bet on any significant progress. January will be interesting as markets react to the latest report card from India Inc. and the RBI review.
Thursday, December 23, 2010
Book Profit today call........... BANG ON TARGET
our call bang on target book profit
"Buy Jindal photos (210.60) with s/L Rs 200 target Rs 215, 218"
"Buy Jindal photos (210.60) with s/L Rs 200 target Rs 215, 218"
Buy FUTURE,
IOC Dec Future in range of Rs368.5 -370.5 for the target price of Rs378.5 with a stop loss placed at Rs363.5.Lot size: 500 ;' Remarks: Net maximum profit of Rs5,000 and net maximum loss of Rs2,500.
Buy and Hold...
Pantaloon Retail (BUY, above Rs371, Target Rs389): After hitting an interim peak of Rs501, stock has corrected nearly 34% and right now placed at long term support levels. With RSI trading in oversold terrain and displaying positive divergence on the short term charts, the risk reward favors for the upside. Based on hourly chart, stock has given breakout from a ‘symmetrical triangle’ which is likely to pave for smart upside of 7-8%. From candlestick point of view, stock has been making back to back ‘long lower shadow’ which also attributes bargain buying at lower levels. We advise buying stock above Rs371 with stop loss of Rs362 for target of Rs389.
± Government not in favour to include a provision in the Companies Bills that would have mandated firms to spend 2% of their profits on social causes.(ET)
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Corporate Snippets
± Gas leak kills 2 people in Dr Reddy’s Lab unit near Hyderabad, (ET)
± TCS has bagged a multi year outsourcing engagement from Hilton Worldwide for spearheading and transformation and management of core group of application platforms. (BL)
± BHEL bags three orders for setting up solar plant. (ET)
± Fortis Global Healthcare to acquire 30% stake in Australia’s Dental Corporation for about Rs4.5bn. (ET)
± Oil Ministry says the delay in deciding on Vedanta’s acquisition of Cairn India will not have any impact on the 9th round of NELP. (BS)
± NTPC keen to get LNG from Qatar by FY12. (BS)
± Tata Power signs deal for solar project in Gujarat. (BL)
± Spanco gets Rs850mn project from Goa power utility. (BL)
A2Z Maintenance shares will list today.
A2Z at 352.50 about 5-7% below listing,
POOR LISTING, no magic for Rakesh Junjunwala
POOR LISTING, no magic for Rakesh Junjunwala
Market Commentary ..
Key indices are set to open a tad higher, supported by positive finish in the US and Europe. Crude oil has crossed $90, which again is not making life any easier for the policymakers. Copper prices are also near record highs after appreciating ~30% this year.
The political scene is in a state of tumult. The BJP has upped its ante demanding the Prime Minister’s resignation or a JPC probe. The Finance Minister has offered to hold a special parliament session to break the logjam and discuss the Opposition demand for a JPC to probe the 2G spectrum allocation scandal. Spiraling prices of onions, the Gujjar agitation and Mamata Banerjee threatening to go alone in WB polls are just some of the added worries for the UPA.
Back to markets, trading volumes have eased off ahead of Christmas and year-end. Overall trend has turned rather lackluster. Asian markets are largely subdued. Japanese markets are shut today. Concerns on the Korean geo-political situation may prevail as Seoul is likely to conduct more military exercises. Most overseas markets will be shut on Friday ahead of Christmas.
Wednesday, December 22, 2010
Buy and Hold Tata Motors
Buy and Hold Tata Motors
at 1365 with SL of Rs1330 for
target of Rs1415, 1420
at 1365 with SL of Rs1330 for
target of Rs1415, 1420
Buy and Hold....
HDFC (BUY, above Rs700, Target Rs720): The stock has been trading in a narrow band taking structure of ‘Symmetrical Triangle’ which is considered as bullish consolidation, from first week Of December 2010. Yesterday’s close above Rs697 has signaled a breakout from the above mentioned pattern on the line chart. We expect the stalled momentum to reignite in the coming days and stock may head towards target of Rs720. A breakout from inverted Head & Shoulders pattern is also seen on the daily RSI. We advise buying the stock above Rs700 with stop loss of Rs690 for target of Rs720
Corporate Snippets
± Gas transportation companies such as GAIL and Reliance Gas Transportation Infrastructure Ltd may soon be able to charge a lower rate than that determined by the PNGRB or those earlier approved on a cost-plus basis. (BS)
± Mahindra & Mahindra introduced its 4X4 off roader the Thar CRDe in India. (ET)
± The 3,000 MW NTPC power plant at Kaniha, the second largest power plant in the country, has slipped into critical condition with barely one day coal stock at its stockyard. (BS)
± Tata Motors is developing special variants of the Nano for the European and US markets, which will be launched in 2011 and 2012, respectively. (BS)
± BHEL is mulling a partnership with Japanese automaker Toyota to make electric vehicles in India. (BL)
± Tata Group has forayed into marketing essential commodities like pulses under its brand. The group’s agro-chemical arms Tata Chemicals and Rallis India will procure pulses from farmers and sell it in the local market. (ET)
± Bombay High Court said it cannot decide on Lavasa Corporation’s writ petition against the ministry of environment and forest’s stop-work order in isolation, and all litigation against the company’s proposed hill station township project near Pune needed to be clubbed together. (ET)
± Jain Irrigation will grow its presence in contract farming and food processing apart from expanding in drip irrigation for which the company has charted out a Rs3.5bn capital expenditure plan. (BL)
Market Commentary ..
There’s no real jingle on the street as yet but looks like world markets are in no mood to spoil their Christmas party. But Peace on earth remains a distant hope with terror alerts just being issued in cities like Mumbai and Ahmedabad.
Globally, the ‘ifs’ and ‘buts’ seem to be temporarily set aside; the European markets have shown pretty good resilience lately despite a spate of recent downgrades for the debt-strapped eurozone nations. Meanwhile, the US markets have been steadily pulling away amid signs of improvement in the economic landscape. Watch out for today’s revised Q3 GDP data.
Tuesday, December 21, 2010
Sector Watch: I.T., Pharma & Steel
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± Advance tax payments by India’s top 100 corporate taxpayers rose 18.7% yoy in December. (ET)
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Market Commentary ..
We expect a higher start and a better day in office for the bulls today even as a few external irritants remain. Lack of buying from the big institutions has led to a drop on the volume front. Price erosion appears to have been done with on most counters though one cannot really expect some Hero Honda kind of run in large counters.
Easing tensions between the two Koreas coupled with strength in the US market will likely perk up the mood in India. European stocks too managed to post modest gains despite persistent concerns over sovereign debt issues. Asian markets are mostly up this morning with the Kospi pacing the advance.
The key indices will likely remain choppy and rangebound in the near term. The Nifty is likely to remain in a range of 5750-6050. Support is expected to kick in at around 5860 while resistance is likely at around 6040.
The dollar has inched higher while the euro remains subdued. Crude oil is hovering around the $90 per barrel mark. Gold and other commodities are firm as well.
FO..............
Buy Cipla Dec Future in range of Rs367.5 -369.5 for the target price of Rs377.5 with a stop loss placed at Rs 362.5.
Lot size: 1000
Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000.
Buy and Hold....
Colgate Palmolive (BUY, between Rs861-Rs865, Target Rs910): Colgate Palmolive on the daily chart has signaled breakout from the symmetrical triangle with expansion in the volumes. The breakout was accompanied with positive crossover in the RSI with prices crossing above the short term moving average at Rs867. However, we believe there would be pullback attempt to test solidity of support at Rs860 which should also become decent entry point. As prices currently hovering in the middle of Bollinger band, immediate target can be placed at Rs910 which is upper Bollinger band. The stochastic also is yet to enter any overbought position which suffice better risk reward ratio from the current levels. We advise buying the stock in the range of Rs861-865 with stop loss of Rs845 for target of Rs910.
Corporate Snippets
± Reliance Industries plans to shut its fluid catalytic cracker (FCC) of about 200,000 barrels per day (bpd) at its older refinery at Jamnagar at the end of January. (ET)
± Reliance Industries' prolific D-1 and D-3 gas fields off the East Coast, which have seen a 15% drop in production in recent times, are likely to touch a peak output of 80mn standard cubic metres per day in 2012-13. (ET)
± Tata Chemicals is set to acquire British Salt, a soda ash raw material maker in the UK, for £93mn (Rs6.6bn). (BS)
± Coal India (CIL) has signed a MoU with the Shipping Corporation of India (SCI) to create a JV to provide end-to-end logistics solutions for bringing internationally-produced coal into the country. (BS)
± The Munjal family, promoters of the Hero Group, is likely to have over 50% stake in a special purpose vehicle to hold Honda's 26% share in Hero Honda, following termination of the joint venture. (BS)
± Glenmark has received approval from US health regulator for its generic Felodipine tablets, an anti-hypertensive drug, in the American market. (ET)
± Union Bank of India has raised its benchmark prime lending rate by 50bps to 13.25%. It has also raised retail term deposit rates across various maturities by 75-100bps and interest rate on one-year deposits to 8%. (ET)
± Reliance Infrastructure has enhanced the capacity of its existing network by adding about 300 sub-stations and 450 kilometres of cable network to its Mumbai distribution. (ET)
Monday, December 20, 2010
सेन्सेक्स (19888.88) +24.03 अंक चढ्कर, नीफ़्टी (5947.05) -1.70 अंक गिरकर, बंद.
Fantastic performance of our today's recommendation . . .
our friday call ................................bang bang ...bang..
Buy ICICI bank (1105.75) with s/L Rs 1100 target Rs 1115, 1120
Buy Tata motors (1347) with s/L Rs 1240 target Rs 1355, 1365
Buy SAIL (188.25) s/L 187 target 190, 191
Buy Navneet (60.75) with s/L 59 tgt 62, 63
Buy Hero Honda (1681.70) with s/L 1675 tgt 1700
Buy SAIL (188.25) s/L 187 target 190, 191
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± Videocon plans to sell stake in energy business. (ET)
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± Food inflation rose for the fourth week to 9.46% in the week ended December 4. (ET)
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Hold / Buy on dips
Cipla (BUY, above Rs360, Target Rs373): Cipla on the daily after being breakout from long term inverted head and shoulder pattern has been consolidating in a minor ‘symmetrical triangle’ for more than a week. The volumes have been shrinking as prices move towards the apex of the pattern. However as triangles are considered as a continuation pattern, the existing trend is likely to get continued after the breakout, which in this case remains up. The stock has also managed to close above its 10-DMA on Thursday’s trading session which is likely to ignite positive momentum in the near term. We advise buying the stock above Rs360 with stop loss of Rs353.
Market Commentary ..
With hardly any effort from the bulls to shore up sentiment, today’s start is likely to be flat to steady. Things could get better later on provided the external situation improves.
The eurozone debt issues coupled with the geo-political tension on the Korean peninsula could cloud the local sentiment. FIIs have taken some money off the table and may remain on the sidelines for a while.
It has been rather volatile of late as far as the Indian market is concerned and the trend might not change much for the remainder of December. While the Indian market has struggled post Diwali, the overseas markets seem to have held on well. Wall Street is currently at a two-year high. Even the European markets have gained this month, notwithstanding the sovereign debt problems. The much-dreaded rate hike from China hasn’t materialised either. Back home, the RBI has taken the much expected pause in rate tightening while announcing measures to ease the cash crunch. Advance tax numbers have raised hope of a strong Q3. Inflation seems to have softened but still remains a threat. The EGoM this week on diesel and LPG prices will be an important event to watch out for.
Corporate Snippets
± Tata Steel is in negotiations to dispose off its South African plant and assets to raise upwards of US$150mn in cash. (ET)
± ONGC approves stock split and a bonus share issue. (BS)
± NMDC’s proposed JV with Russia’s Severstal will give the latter direct access to the Indian steel market while also diversifying the local mining company into steelmaking to boost revenues. (ET)
± TCS bagged an Rs850mn three-year deal for implementing smart card-based Financial Inclusion Solution for Indian Bank. (ET)
± UK’s drug regulator asks Ranbaxy to recall three batches of Pravastatin, its anti-cholesterol tablets, on failure to update safety warnings in its information leaflets. (BS)
± Coal India has put in a bid to buy US-based Sydney complex, an arm of Massey Energy, for about US$1bn. (ET)
± Tata Steel is contemplating the possibility of bidding for Ispat Industries. (ET)
± Fitch says the asset quality of SBI remains an area of concern due to its high non-performing loans. (ET)
± MoEF has accused Adani Group’s Mundra Port and Special Economic Zone of destruction of mangroves in Gujarat. (ET)
± ONGC Videsh hopes to sign an agreement to take a stake in the Trebs and Titov in the Arctic. (ET)
Thursday, December 16, 2010
BUY ONCG, at 1318 ----------------bonus 1:1 + dividend + stock split
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DUE TO TRADING HOLIDAY TOMORROW (FRIDAY) ,BUYING/ SELLING might be seen at EOD.
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Book Profit in BTST TATA STEEL Dec Futs given yesterday
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Book Profit in Long ICICI Dec Futs given
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Sell DLF (278.15) with s/L 282 tgt 270, 268
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Punjab & Sind Bank IPO 3rd Day Subscribed 29.77 (average)
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Corporate Snippets
± Bhushan Steel will purchase coal from Boikarabelo mine of Australia based coal supplier Resource Generation for 20 years. (BL)
± Sterlite Industries & Hindalco are seeking a 76% increase in treatment and refining fees of copper.(FE)
± Tata Motors has announced a special finance scheme for its small car, Nano.(BS)
± Coal India is in talks with Indonesia’s Sinar Mas Group for acquiring coal mines in the island-nation.(BL)
± Vedanta Resources Plc plans to use proceeds from the IPO of its Zambian copper business to part fund its US$9.6bn acquisition of Cairn India.(BS)
± Lanco Infra to buy Australia based Griffin Coal mining company & Carpenter Mine Management for US$750mn.(ET)
± SAIL follow on public offer is likely to hit market in mid-january 2011.(ET)
± The environment ministry has given Jindal Steel 15 more days to file a reply to its show-cause notice.(ET)
± Ashok Leyland to start a vehicle assembly plant in UAE. (BL)
Morning Call;
Buy Reliance Capital Dec Future in range of Rs640-643 for the target price of Rs660 with a stop loss placed at Rs630.
Lot size: 500 Remarks: Net maximum profit of Rs10,000 and net maximum loss of Rs5,000.
Market Commentary ..
The weather may be getting colder but the political scene remains heated in the wake of the 2G spectrum scam. The CBI continues its raid-spree and reports point to some consternation in the Congress-DMK alliance. The winter session of parliament has been a washout. One has to see what fate now awaits the crucial Budget session.
We see another tepid start on the back of mixed global cues. On Wall Street, the S&P 500 index's six-session winning streak came to an end. The dollar and the Treasury yields gained. European markets fell after Moody’s warned of a possible downgrade of Spain. Asian markets are rather listless.
The important event today will be the RBI’s mid-quarter review. The central bank is widely expected to keep policy rates steady as inflation has moderated. But, it could announce steps to ease the tight liquidity. In summary, the market is likely to remain choppy and rangebound.
Stick to a stock centric and guarded approach for the short-term.
Wednesday, December 15, 2010
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