Friday, March 19, 2010
सेन्सेक्स (17578.23) 58.97 अंक चढ्कर, नीफ़्टी (5262.80) 16.90 अंक चढ्कर, बंद..
European markets update: FTSE Index up 0.3%, CAC Index and DAX Index up 0.2% each
Bombay Dyeing
Buy and HOld around Rs570, Target Rs600
On the daily chart, the stock has formed a bullish price channel. It is a continuation pattern that slopes up and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line denotes support. The lower support line was formed from January 2010. Subsequent low in the month of February and March confirmed the support line. The upper resistance line is drawn from January 2010 onwards. Since then, the stock has been moving back and forth between the two parallel lines. On Monday, the stock attempted to break out from the resistance line with above average volumes. A break above resistance is likely to lead to acceleration in the stock price. We recommend traders to buy in the range of Rs567-573 with a stop loss of Rs558 and a target of Rs595 and Rs600.
Corporate Snippets
Bajaj Auto targets sales of 4mn bikes and three-wheelers in 2010-11, a near 40% jump from this fiscal's expected close of 2.9mn units. (BL)
Commissioning of Adani Power’s 3,300MW power plant at Tiroda in Maharashtra runs the risk of getting delayed for want of fuel due to an environment hurdle in mining coal. (ET)
Korean steel major Posco and SAIL have initiated talks to set up a steel plant under the joint venture route near state-owned company’s existing steel making facility at Bokaro in Jharkhand. (ET)
SAIL and Shipping Corporation of India will shortly sign 50:50 joint venture; a proposal that was hanging since June 2008. (BL)
Unitech plans to demerge its non-core businesses, like telecom, from the company to unlock value for shareholders. (BS)
ITC plans to open 25 new hotels under the Fortune brand during the next 12-18 months. (BS)
The income tax department conducted a search at offices of Punj Lloyd till late on Wednesday. (BS)
Punj Lloyd secured a letter of award for EPC of NGI (Mixed Case) Project in UAE from Abu Dhabi Gas Industries Ltd for a value of US$40mn. (BL)
Pre Market Commentary ..
Cues from global markets are neither spectacular nor weak. Concerns over Greece prevail amid lack of cohesion in the EU. The nation now may resort to aid from the IMF. Worries over stringent new norms for Wall Street banks have ebbed even as the war of words persists between the US and China over yuan revaluation.
Wall Street had an indecisive session. The Dow rose for eighth straight day while the S&P ended in red. European stocks were weighed down by uncertainty over Greece. Asian markets are mixed.
Barring a few days, market breadth has been generally negative even on days when the main indices have advanced. This is a cause for concern as in a low-volume, shallow market there is always a chance that the market’s gain may not accurately reflect the reality. So, don’t get carried away if the Nifty breaches 5300 or the Sensex surpasses 18000.
Apply your mind and do your homework before taking a plunge into any stock, as valuations are not cheap. Though the key indices are nearing their previous 52-week highs, bulls don't appear to be entirely convinced. This leaves the market vulnerable to fresh selling.
FIIs were net buyers in the cash segment on Thursday at Rs4.85bn on a provisional basis. Local funds were net sellers of Rs531.5mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs11.06bn. On Wednesday, FIIs were net buyers of Rs11.71bn in the cash segment, as per the SEBI web site. Mutual Funds were net buyers of Rs328mn on the same day.
Thursday, March 18, 2010
सेन्सेक्स (17519.26) 29.18 अंक चढ्कर, नीफ़्टी (5245.90) 14.00 अंक चढ्कर, बंद..
European markets update: DAX Index down 0.3%, FTSE Index and CAC Index down 0.4%
DIMOND CABLE: Our delivey call trading strong at 129.50++ HOLD
Tata Elxsi - Our morning call TRADING STRONG AT 315 HOLD
European markets update: DAX Index down 0.3%, FTSE Index and CAC Index down 0.4%
Pre Market Commentary ..
Call it window dressing, short-covering or anything you like; the indices which struggled for some time post the Budget, is now steadily moving up. The Nifty now looks set to conquer its previous 52-week high of 5311 shortly, unless something untoward takes place in the interim.
Today we expect a positive opening with markets in the US and Europe hitting new 2010 peaks. Asian markets though are mixed and relatively subdued. Hopefully, that shouldn’t deter the bulls here in India.
In the event of a fresh fall, the Nifty may find support near 5200. One big challenge will be to sustain above 5300 amid growing concerns over stubbornly high inflation and an impending rate hike.
Corporate Snippets
NTPC and IOC plan JV to manufacture bio-diesel and special lubricants for the power plant. (ET)
S&P revises its outlook on Tata Motors to positive from negative. (BS)
TCS to hire 30,000 employees in the next fiscal year.
L&T gets Rs10bn order for ONGC well platforms. (BL)
Gail has set a target of transmitting 114.8mscmd of natural gas from domestic sources and through liquefied natural gas during FY11. (ET)
TCS, Wipro and Spanco have been short-listed for Rs1bn project designed to automate the emigration process in India. (BL)
Lupin gets US FDA approval for anti-depressant drug. (ET)
Rcom has tied up with US based Polycom to provide video conferencing services in India. (ET)
Tata Communication to bid in the forthcoming auction of wireless broadband spectrum. (ET)
Government appointed special auditors have given clean chit to Idea Cellular. (ET)
Dalmia Cement to split into four businesses – Sugar, Power, Cement and Refractory. (ET)
FII inflows have been consistently positive but the local funds have been sellers. With the fiscal year drawing to a close, there may be some ‘window dressing’ by the local funds to perk up NAVs. If that does happen, the Nifty could well scale new heights. Even as the markets move, there is a lingering fear that April may be cruel.
Wednesday, March 17, 2010
सेन्सेक्स (17490.08) 106.90 अंक चढ्कर, नीफ़्टी (5231.90) 33.80 अंक चढ्कर, बंद..
European markets update: FTSE Index and CAC Index up 0.4% each
Delivery Call for 90days
Buy and Hold
DIMOND CABLE
[DIACAM]
At 122-126
Buy on dips
TARGET 144,
164 AND 177 PLUS
Fix DEPOSIT
OF BSE
MUST BUY
EDUCOMP : Our pre budget call trading strong hold for target 800
1000 PLUS
OUR SMS TO PAID CLIENTS WAS ..
"
Buy and Hold
EduCOMP at 721
SL 700 hold
for 747 and 799 plus
www.northpole77.com
"
SAIL - SAIL - SAIL... remember buy rate???? 178....target 300
HOLD FOR TARGET 300
buy in truckload .... sure shot
The finance ministry has circulated a proposal that aims to ask state-run banks to exit noncore businesses, notably insurance, to force greater capital efficiency and ensure that periodic capital infusion into them goes into increasing the spread of banking rather than propping up money-losing ventures. (ET)
Reliance ~ remember NO JAI NO VIRU - only dhiru
MUMBAI INDIANS!!
4TH RICHEST PERSON OF THE UNIVERSE
BUY CALL GIVEN AT 977 and below 1000
TARGET 1050, 1100
Revised target 1500
yes!, save this message
Apollo Tyres - BUY
CMP: Rs70, Target: Rs84
± Replacement demand and higher radialization of CV tyres to drive domestic performance
± Foreign subsidiaries to gain from global economic recovery
± Margin scenario is expected to improve
± Initiate with a BUY rating on back of overall growth
Exide Industries - BUY
CMP: Rs112, Target: Rs130
± Strong replacement demand to buoy automotive segment performance
± Industrial segment will provide additional momentum
± Lead sourcing strategy to expand margins
± Recommend BUY on strong earnings momentum
Bharat Forge - BUY
CMP: Rs267, Target: Rs295
± Domestic operations on strong revival as CV volumes surge
± International subsidiaries to witness improved performance
± Non-auto business to witness strong growth
± Recommend BUY on strong earnings growth
Corporate Snippets
± RIL loses bid for Canadian firm Value Creation to British energy major BP Canada, which has taken a controlling stake for ~US$1.2bn. (BS)
± Bharti Airtel has issued a term sheet to banks to raise up to US$8.5bn in offshore loans to fund the acquisition of African mobile operator Zain. (ET)
± State Bank of India is likely to raise Rs200bn via rights issue by the year-end. (ET)
± Hindalco Industries has received a loan commitment of over Rs100bn from more than 10 banks for the Rs49bn debt the company plans to raise for its Utkal Alumina Refinery. (BS)
± Boeing will pay US$145mn compensation to Air India (AI) for delay in deliveries of the Dreamliner B787-800. (BS)
± Nissan Motor along with its joint venture French partner Renault, has invested around Rs28.8bn at Oragadam, near Chennai. (BS)
± Nissan Motor scouts for yet another Indian partner to develop one more car that will be placed between Micra and proposed ultra low cost (ULC). (BS)
± Reliance Communications has said that it was open to acquisitions in the country to grow its presence in the domestic market. (ET)
Market Commentary ...
Bulls could extend Tuesday’s rally thanks to the Federal Reserve’s move to do nothing on its ultra loose monetary policy. What’s more, the US central bank offered a more optimistic assessment on the state of the labour market.
European stocks finished higher, extending gains late in the session after S&P said Greece was on track to meet its near-term budget goals.
Asian markets are mostly higher this morning. It’s a no-brainer that given the slightly optimistic global cues, the Indian market too will advance further. Whether it closes up or not is anybody’s guess. It’s best to do nothing with the stocks you hold now.
The Nifty could take a shot at 5300 in the near term, provided global markets remain firm. However, it may take a while for it to touch 5500. On the way down, strong support is now seen at 5100.
One cause for concern of late has been the low traded volume and constant selling by local funds. At the same time, volatility remains pretty low. One may see the main indices consolidate in a range of 5100-5300.
Tuesday, March 16, 2010
सेन्सेक्स (17383.18) 218.19 अंक चढ्कर, नीफ़्टी (5198.10) 69.20 अंक चढ्कर, बंद..
European markets update: FTSE Index up 0.6%, CAC Index and DAX Index up 0.5%
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Sell Kotak Bank March Futs between Rs755-754 with SL of Rs762 for target of Rs740, 735
Sell Kotak Bank March Futs
between Rs755-754
with SL of Rs762
for target of Rs740, 735
Mcleod Russel
We reiterate buy & hold on Mcleod Russel between
Rs260-261 with SL of Rs255 for target of Rs272, 275
NMDC : Sell call given at 355 NOW trading at 332, 2nd target ACHIVED ...
NMDC : Sell call given at 355
NOW trading at 332,
2nd target complied
HOLD FOR 307
Reliance : Our delivery call trading at 1038, HOLD FOR 1050 and 1100 NEXT WEEK
Reliance :
HOLD FOR 1050 and 1100
NEXT WEEK
Buy and Hold Opto Circuits India at 222 TGT 244 ++
Inflation – February 2010
± WPI basket continues to rise as it increases 9.89%
± Primary goods index continues to surge
± Food products prices cause higher manufactured goods index
± Fuel index rises 7.4% yoy as crude oil price increase
Corporate Snippets
± Tata Motors global sales increase by 59% in February to 89,768 units (ET)
± Special auditors appointed by DoT to scrutinize accounts of Bharti Airtel have given a clean chit to the company on most parameters outlined by the Government. .(BL)
± ICICI Bank aims to grow its Balance Sheet by 15% in FY11. (FE)
± L&T has bagged a project worth Rs20.4bn from ONGC Mangalore Petrochemicals. (ET)
± BHEL wins Rs33.5bn turnkey contract to set up 365MW acptive power plant at the upcoming Paradip Refinery. (BS)
± HCC to acquire Swiss company, Karl Steiner, for Rs1.5bn. (ET)
± TCS signed a 5-year deal with Malaysia Airlines for an undisclosed amount. (ET)
± Tata Steel may increase prices of its products in the coming months. (BS)
± SAIL eyes Rs430bn sales in FY11. (BS)
± ONGC to fund overseas acquisitions over next decade with US$20bn borrowings. (BS)
± RIL and MRPL have committed to buy up to 45% of crude oil from ONGC Videsh and its partners plan to produce from a Venezuelan oil field. (ET)y!"
Pre Market Commentary ...
Just like today’s festival, the market is neither too good nor too bad; spring cleaning is the order of the day as investors weight their options. Thankfully, we may see more green on the trading screens today though the overall pattern will remain largely subdued yet choppy. We expect a slightly higher opening. The overnight recovery in the US and positive trend across Asia will add to the festivities.
No big movements are on the cards, at least till we get the first few Q4 numbers from India Inc. Advance tax numbers are pretty mixed and loosely indicate that auto and FMCG companies have done well while banks are laggards.
Struggle and progress go hand in hand. Monthly inflation is within striking distance of touching double digits and is affecting other segments of the economy besides food. But India’s fundamentals are in much better shape vis-à-vis last year. Monsoon of course will be a joker in the pack and RBI’s annual policy meet next month could be crucial.
Monday, March 15, 2010
सेन्सेक्स (17164.99) - 01.63 अंक गिरकर, नीफ़्टी (5128.90) 08.10 अंक गिरकर, बंद.
European markets update: FTSE, CAC and DAX are trading flat in opening trades
Other stocks to watch out: Renuka Sugars, Educomp and Adlabs.
Yes Bank #s...
Yes Bank pays Q4 advance tax of Rs280cr vs Rs280cr- reports
Yes Bank pays Q4 advance tax of Rs73cr vs Rs49cr - reports
Kiri Dyes & Chemicals Ltd. will announce a Strategic Corporate initiative in Mumbai today - (acquisition of Dystar) and future expansion plans.
FIIs were net buyers in the cash segment on Friday at Rs3.72bn on a provisional basis. Local funds were net sellers of Rs908.1mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs4.24bn. On Thursday, FIIs were net buyers of Rs4.47bn in the cash segment, as per SEBI figures. Mutual funds were net sellers at Rs2.44bn on the same day.
Shares of Aban Offshore
Buy and Hold Tata Steel between Rs615-616 with Sl of Rs608 for target of Rs630, 635
Derivative strategies (Time period: Till expiry)
Long Mundra Port & SEZ March Future @ Rs704
for the target price of Rs730 and stop loss placed at Rs690
Lot size: 300
Remarks: Net maximum profit of Rs7,500
and net maximum loss Rs4,500.
***
Lot size: 2,950.
and net maximum loss Rs14,750.
Economy Update: IIP – January 2010
± IIP growth for Jan 2010 at 16.7% v/s 17.6% in Dec 2009
± Growth continued across all use based categories
± IIP growth for December revised upwards by 80bps
Corporate Snippets
± ONGC is likely to invest up to US$20bn on its core upstream business over the next 10 years, to acquire oil and gas assets abroad. (BL)
± JFE may pick up 14% stake in JSW Steel. (TOI)
± Infosys could potentially face a tax liability of Rs1bn for alleged violations of SEZ rules at its Chandigarh SEZ. (FE)
± The government is considering up to 10% equity dilution in Nalco. (TOI)
± NMDC FPO issue subscribed 1.25x. (TOI)
± JFE Holdings is unlikely to buy stake in JSW Steel as has been stated earlier by both the companies, but rather in a SPV under which their Bengal project is coming up. (DNA)
± Tata Power plans to increase its wind and solar energy generation capacity to 2,000mw and 250mw. (ET)
± Godrej Consumer has entered into an agreement to acquire Nigerian beauty brand Turafor ~Rs4-5bn. (BS)
± TCS plans to finalise its wage and recruitment plans by April. (BS)
± Reliance Industries, IMG Worldwide enteres into an equal joint venture to build a professional sports business in India. (BS)
± DQ Entertainment fixes IPO price at Rs 80. (BS)
± Ranbaxy eyes 80% rise in income by end of 2012. (BS)
Pre Market Commentary ..
Exhaustion seems to have got the better of the bulls and neither effort nor reward seems to be on the anvil. Stock indices continue to languish after a brief spurt post the Budget. The scenario is no different in global markets, though the US and Europe have held up well in the face of a few significant headwinds.
Emerging markets like India and China have actually under-performed in the past few sessions. It remains to be seen when this trend changes. For now though, it looks like the market will remain in a state of flux for a while before there is any meaningful movement.
At the cost of being repetitive, we expect yet another dull opening and perhaps another trigger-hunting day. Advance tax numbers might lead to some shift in the undertone, though it will not make a big difference. Monthly inflation numbers will be another factor to watch out for. Fed policymakers will meet on Tuesday for a monthly review. All eyes and ears will be glued for the latest cues from the US central bankers.
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