Wednesday, January 5, 2011
Market Commentary ..
A little bit of fatigue seems to be creeping into the Indian markets even as their overseas counterparts are enjoying an extended rally. September was spectacular for India. October and November were not so kind. In December, we somehow managed to claw our way back. But, early in January the markets seem to be lacking the spark again.
The road ahead is murky and there are no clear answers on which way the cookie will crumble for the Indian markets. The short-term direction will hinge on global cues, quarterly earnings and the outcome of RBI’s policy meeting.
The start today will be down, as US stocks closed mixed and key Asian markets are in the red. European markets rose anew, with UK’s FTSE pacing the advance. The broad range for the Nifty appears to be 6000-6300. It could be stuck between 6100-6200 in the immediate future. A close below 6115 could result in selling pressure.
Individual stocks, especially outside the main indices, will hog the limelight. But beware of the volatility in the small-cap and mid-cap counters.
Corporate Snippets
± Reliance MediaWorks through Reliance Capital acquired 31.92% stake in Fame India through its open offer. (BL)
± Jindal SAW Ltd has executed a mining lease agreement for 30 years with Rajasthan for iron ore mines in the State. (BL)
± Lanco Infratech plans to borrow from Chinese banks, joining rivals in seeking cheaper funds for equipment contracts for plants. (ET)
± Suzlon Energy is in talks with Gamesa Corporacion Tecnologica of Spain for a strategic alliance. (BS)
± Natco Pharma has sought a voluntary licence from Pfizer to make and sell copies of the US company’s HIV drug in India. (ET)
± Ashok Leyland has hired top expat executives from global automobile companies. (ET)
± Lakshmi Vilas Bank eyes QIP in February-March to improve its capital adequacy ratio and raise capital to fund growth. (BS)
± BPCL has granted Kingfisher Airlines a three-month reprieve to pay jet fuel dues. (BS)
± Great Eastern Shipping expects to raise Rs1bn via issue of 12-year bonds later this week. (ET)
± Diamond Power Infrastructure has bagged orders from Power Grid Corporation of India and SMO-SPIC for supply of 400 KV D/C line conductors. (ET)
Tuesday, January 4, 2011
Book profit in Biocon at Rs430.5, recommended to buy on 31st Dec
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Buy MTNL (57.40) with s/L 55 tgt 59, 60
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The speculator’s deadly enemies are:
Ignorance, greed, fear and hope. All the statue books in the world and all the rule books on all the Exchanges of the earth cannot eliminate these from the human animal.
“I can’t sleep” answered the nervous one.
“Why not?” asked the friend.
“I am carrying so much cotton that I can’t sleep thinking about. It is
wearing me out. What can I do?”
“Sell down to the sleeping point”, answered the friend.
Buy and Hold....
Buy Grasim Industries Jan Future in range of Rs2376 - 2379 for the target price of Rs2406 with a stop loss placed at Rs2361. Lot size: 125...Remarks: Net maximum profit of Rs3,750 and net maximum loss of Rs1,875.
Market Commentary ..
The New Year experience of global equities sets the tone for another positive start for the Indian stocks. However, the sudden turnaround intra-day in the key indices on Monday is a cause for worry. In the near term, the sentiment will be largely driven by global cues before Q3 results start kicking in.
Growing optimism about the state of the global economy and an upbeat report on manufacturing PM led US stocks to extend the so-called “Santa Clause” rally of December. European shares too closed smartly up. London markets remained shut.
In Asian stocks in South Korea surged to an all-time high. This morning, Japanese and Chinese markets have resumed trading on a strong note. The Hang Seng is a little subdued though after Monday’s rally.
The RBI policy review later this month is another important event for the markets. As far as this week is concerned, global markets will keenly follow the monthly US jobs data.
Corporate Snippets
± GAIL has entered into an agreement with ONGC, under which it will exclusively purchase and market the natural gas produced from the latter’s various fields during the next three years. (BS)
± HDFC Bank has raised interest rates on retail term deposits by up to 1.25% across various maturities. (ET)
± Kotak Mahindra Bank has increased interest rates on retail term deposits of various maturities by up to 0.50%. (ET)
± Reliance Industries is mulling the establishment of a US$1.2bn liquefied natural gas import terminal on either the East or West Coast to meet demand at its refineries and petrochemical plants. (FE)
± Jindal Power plans to launch its initial public offer to raise Rs72bn by May, 2011. (ET)
± Dabur has completed the acquisition of the US based personal care firm Namaste Group for US$100mn. (ET)
± Coal India will enter into contracts with private firms to develop underground coal gasification projects and set up at least one 50:50 joint venture to create marketing infrastructure and sell the gas. (ET)
± IOC is looking at increasing its imports from Angola in southern Africa. (BS)
± KEC International has bagged three substation orders worth Rs9.8bn from Kazakhstan Electricity Grid Operating Company and Power Grid Corporation of India. (ET)
± Larsen & Toubro has bagged Rs11bn order from various power plant developers, including Maithon Power, Nebha Power, Balco and Sterlite Energy. (ET)
Monday, January 3, 2011
Nifty near HIGH, CAUTION for 2011!!!
Nifty is likely to witness some amount of correction to the levels of 5,900 in the near term. With last week’s recovery along with improvement in sentiments (locally and globally), traders are expecting a new high very soon (bullish hype generally associated with every pullback). However, with key indexes approaching key resistance levels, traders should consider taking some caution for 2011.
Buy KALINDEE RAIL Target 197, 200 + +
our buy call given at 170
GET READY FOR
RAIL BUDGET...
Range since last 10years
at budget time is 166-209
Market Commentary ..
The first trading day in the New Year is here and bulls will hope there are no hangovers owing to the extended weekend. Many markets around the world are shut for extended New Year holidays. Asian markets which are open for trading are mostly positive. We expect the bulls to shake off any weariness and kick off 2011 on a bright note.
US stocks closed mixed in Friday’s truncated session while European benchmarks finished in the red. On the whole, most asset classes had a pretty good year in 2010.
Naturally, there will be a lot of conjecture on how 2011 will unfold. It will take a while to have any grip on the prospects for the New Year. So, don’t be too anxious and focus on the short-term horizon, which appears to be fairly okay.
The key indices may advance further and if the momentum is strong enough, we could see new highs in the coming days. The bulls collective resolution seem to be a new high for the indices this year if not this month itself.
Sector Watch: Banking, Auto & Realty
Markets may open in GREEN
Short Term Trend may positive
during the session
Small & mid cap
stocks may in focus
Corporate Snippets
± With an eye on having a global footprint as well as securing supplies of key raw material like coking coal and iron ore, SAIL is looking at building steel plants abroad. (FE)
± Hero Group says its exposure in the alleged financial fraud at Citigroup was Rs287.5mn. (ET)
± ICICI Bank raised its base rate 50bps to 8.25% and PLR by 25bps to 17%. (ET)
± BHEL is exploring the possibility of setting up an assembly unit in Indonesia to grab a sizeable market share of the growing demand for power equipment in the South-East Asian country. (BL)
± HDFC Bank decided to increase its base rate by 25bps to 7.75% effective January 1. (ET)
± Tata Motors hiked the prices of some its passenger vehicles and all of its commercial vehicles by a range of Rs3,000-30,000. (BS)
± Tata Steel plans to ink an agreement with Japan-based Nippon Steel by end-this month to set up a Rs24bn steel plant for producing auto-grade steel. (BS)
± JSW Steel emerges the highest bidder for debt-laden Bellary Steel & Alloys. (BS)
± Jindal Steel & Power plans to build its first oil refinery to expand its energy business in the domestic and overseas markets. (BS)
± ICICI Bank is keen to acquire more local banks to expand in the smaller towns in India. (ET)
± Marg is planning to hive-off its residential projects business to a wholly-owned new subsidiary Marg Properties. (BS)
± PNB has said that it plans to enter the life and general insurance business and has appointed Boston Consulting Group as its adviser. (TOI)
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
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