Morning calls

Heard on Street: Insurance cos lap up NMDC


Insurance companies lap up NMDC stock

Shares of NMDC, a state-owned iron ore producer, have rebounded from recent lows. There is talk that insurance companies, both private and public sector, have lapped up the stock in recent sessions amid speculation that the company could move to quarterly pricing in line with the recently-introduced global practice. Grapevine has it that an insurance major has bought the stock, when it fell to around Rs 283 last week. On Tuesday, the stock rose 1.6% to Rs 303.20.

Bears seen sniffing around SBI counter

With the market on an uptrend, bears are looking for some stocks they can safely short sell, without losing much sleep. After a quick reading, this group appears to have arrived at the consensus that State Bank of India best fits the bill. The recent RBI rule that banks should pay interest on savings deposits on a daily basis, is expected to pinch SBI the most, as the bank has the most number of savings accounts, so feel the bears. Grapevine is that the Old Fox, and the owner of the Big ‘Bang’ brokerage are said to be among those building short positions in the stock.

Religare’s banking unit on a poaching spree

The investment banking and institutional broking arm of Religare Enterprises continues to aggressively ramp up its senior level, even as rivals are amazed at the salaries being offered by the Delhi-head quartered financial services firm. The company, which has in the recent past poached key personnel from foreign brokerages to beef up its talent pool, is once again looking in that direction for its new strategist. The buzz on the Street is that the new hire is the second in command of the research team at a leading investment bank which claims to have trouble getting sleep.

Networth’s Satish Pasari moves to rival firm

Satish Pasari, who heads the institutional business at BSE-listed Networth Stock Broking, is said to have put in his papers, and will shortly be joining a rival firm. The low-profile Mr Pasari is said to have been instrumental in setting up the retail, wealth management and institutional businesses of the brokerage. When contacted, Mr Pasari declined to comment. Networth had recently hired around two dozen professionals in sales, dealing and research to spruce up its presence in the derivative and quant-trading segments.

(Contributed by Nishanth Vasudevan, Santosh Nair, Deeptha Rajkumar & Apurv Gupta)

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Top 5 picks | Mid-term picks


'I'll give India 2 more brands bigger than Ranbaxy'


Top 10 Equity Funds in 2009-10


Nifty to trade in 5200-5400 range

Godrej Consumers should make a new 52-week high: Devangvisaria.com

Mahindra & Mahindra, Escorts look very promising: Angel Broking

This year is going to be exceptional for TVS Motor: Angel Broking

Expect modest correction: CLSA

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New teen CEOs | Gen Y CEOs | World's top 10 billionaires

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Bull's Eye: Stocks to buy today

Everyday, on this special segment, Bull's Eye, CNBC-TV18 brings you trading/investing calls from investment analysts. Today, we bring you calls
from:

Mitesh Thacker, Technical Analyst, miteshthacker.com.
Investment Advisor, SP Tulsian.

Mitesh Thacker, Technical Analyst, miteshthacker.com.

Buy Bombay Dyeing with a target of Rs 630

Buy MTNL with a target of Rs 83
Buy IFGL Refractories with a target of Rs 67
Buy Rel Comm with a target of Rs 186

Investment Advisor, SP Tulsian.

Buy Lloyd Electric with target of Rs 80
Buy ITD Cementation with target of Rs 255
Buy KNR Constructions with target of Rs 182
Buy Essar Shipping with target of Rs 100

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Daily News Roundup - Apr 7 2010

Not in the best of health!

Aditya Birla Chemicals

Src: ET and DP blog etc

Sensex eyes 18000

Top 5 picks | Mid-term picks

Indian Automobiles

Maruti Suzuki

Top Picks

Educomp Solutions

Nestle

Sensex eyes 18000

PAN Card Compulsory for all transactions

Src: ET and DP blog

Resistance at 5330

Resistance at 5,330

The market pushed to a new high and then eased back to the previous week’s levels. The Nifty closed at 5,290.5 points for a nominal gain of 0.2 per cent while the Sensex was up 0.3 per cent at 17,644 points. The Defty rose 1.1 per cent as the rupee continued to strengthen.

Breadth was neutral and volumes remained on the low side. Smaller stocks outperformed the pivotals. The Junior was up 1.3 per cent while the Midcaps rose 0.7 per cent and the BSE 500 was up 0.7 per cent as well.

FIIs continued to be strong net buyers while domestic institutions remained net sellers in small quantities.

Outlook: The market established a new 52-week high but momentum and background signals were quite weak. There is strong resistance at 5,330 levels with strong support between 5,200 and 5,250. Most likely the market will remain confined to range-trading between 5,200 and 5,350. If volumes remain low, a downside breakout is more likely. A close below 5,200 could push the market down till 5,100.

Rationale: An uptrend that is not backed by volumes or by significant breadth is unlikely to be sustainable. Momentum indicators aren’t strong either. The intermediate trend has been up for nine weeks now and it could be due for a reversal. The major market trend is confirmed as bullish due to the new high, but that doesn’t preclude a reversal in intermediate or short-term trends.

Counter-view: It is a major bull-market. DII selling allied to trader selling has been a dampening factor despite strong FII buying. There could be more domestic money flowing into stocks with the new fiscal commencing. The usual tax-related liquidity crunch may be easing. Intermediate trends can last up till 12-14 weeks if they are aligned with the major market trend, as in this case. The short-term trend isn’t clearly negative. One chart reading would suggest an upside till 5,450 is possible. At the risk of tedious repetition, the issue is volumes. A volume expansion is required to force the market up.

Bulls & Bears: The bulls cycled through various sectors, buying, booking profits and moving on. At various times, financials, energy, real estate, metals, cement, engineering and construction and auto stocks saw support. All the above sectors also saw selling. If this choppy pattern continues, we will see tightly ranged trading with very stock-specific movements.

IT was the one sector that took a hammering through the week and it was by far the worst performer. The CNXIT lost 2.7 per cent with all the majors hit. This is a bad signal since Infosys and TCS will soon be coming through with 2009-10 and March quarter results and 2010-11 advisories. However, there was short-covering ahead of the long weekend. The picture with respect to banks is mixed. Private sector majors like ICICI and HDFC underperformed the PSUs and pulled the BankNifty back.

MICRO TECHNICALS

ABAN OFFSHORE
Current Price: Rs 1,199 Target Price: Rs 1,300

The stock has hit reasonable support and is now picking up volumes as well as seeing a price rise. It has the potential for a pullback till around the Rs 1,300 level. Keep a stop at Rs 1,165 and go long. Increase the position beyond Rs 1,220.

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BHARTI AIRTEL
Current Price: Rs 302 Target Price: Rs 290

The stock has seen heavy selling in the past two sessions. It has a little support at current levels but if it closes below Rs 300, it will probably drop to at least Rs 290 and maybe, lower, till around Rs 280. Keep a stop at Rs 307 and go short. Increase the position below Rs 299. Book 75 per cent profit at Rs 290 and reset the stop to Rs 293.

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RELIANCE INDUSTRIES
Current Price: Rs 1,092 Target Price: Rs 1,070

The stock is hitting resistance at around the Rs 1,100 mark. It is likely to slide till support at around Rs 1,070 and there is a good chance if it closes below Rs 1,070 that it will fall till around Rs 1,020. Keep a stop at Rs 1,105 and go short. Book 50 per cent profit at Rs 1,070 and reset the stop loss to Rs 1,080.

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TCS
Current Price: Rs 807.80 Target Price: Rs 755

The stock has broken several supports amidst heavy selling. It is likely to slide till around the Rs 755-760 mark. Keep a stop at Rs 815 and go short. Increase the short position below Rs 795. Start booking profits below Rs 765. Be prepared for extra volatility.

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TATA MOTORS
Current Price: Rs 777.65 Target Price: Rs 815

The stock has bounced from around Rs 715 and is likely to test resistance in the Rs 815-820 zone again. Keep a stop at Rs 765 and go long. Be prepared for a little extra volatility. Clear the position above the Rs 810 mark.

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Top 5 picks I Mid term picks



Bull's Eye: Cairn, Bhushan Steel, Infosys, DB Corp



Small-cap stocks offer best bet for investors


Stocks to open strong; Nifty resistance seen at 5330-5395

Bull's Eye: Cairn, Bhushan Steel, Infosys Technologies, DB Corp
5 Apr 2010, 0716 hrs IST

Here are the analysts' picks: Cairn, Bhushan Steel, Infosys Technologies, DB Corp.

US: Lehman-style accounting tricks under lens
5 Apr 2010, 0642 hrs IST

The good news this week from the Securities and Exchange Commission is that it’s on the hunt for companies that have used Lehman-style accounting tricks to make themselves look less leveraged than they really are.

High portfolio risk a concern for JM Basic
5 Apr 2010, 0639 hrs IST, Bakul Chugan Tongia

Notwithstanding JM Basic’s outstanding performance in the rallies, its high portfolio risk and inability to cushion fall in the downturn remain a concern.

Japan's $15 trillion not enough
5 Apr 2010, 0634 hrs IST

Every few years, investors get all enthusiastic about Japan. This time the recovery is for real, they argue. This time real change is afoot. This time buy yen-denominated assets and don’t look back, they conclude.

Cost of LIC's Jeevan Surabhi high
5 Apr 2010, 0630 hrs IST, Bakul Chugan Tongia

Though LIC’s Jeevan Surabhi offers a plenty of features,a closer study of the plan reveals that the cost of investing in it is rather high.

Some sectors to look for in the current fiscal
5 Apr 2010, 0629 hrs IST

As the markets touched two-year high and more and more stocks near their higher valuations, it would be difficult to take a smart investment decision.

Nifty's confidence likely to get tested near 5400
5 Apr 2010, 0623 hrs IST, Devangi Joshi

As the Dow Jones Industrial Average is aiming to conquer 11000; a one and a half year high; the Nifty's confidence is likely to get tested near 5400.

Idea Cellular to benefit from expansion in long term
5 Apr 2010, 0616 hrs IST, Ranjit Shinde

While Idea Cellular’s stock may suffer in the short run due to low tariffs and competition, the company is poised to benefit from its recent expansion in the long term.

Slow uptrend persists in markets: Deepak Mohoni
5 Apr 2010, 0616 hrs IST, Deepak Mohoni

All the indices are in an intermediate uptrend which is now nearly eight weeks old.

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'Coking coal prices to remain firm' 05-APR-10 Gujarat NRE Coke, which is the leading player in the Indian met coke industry, has been the key beneficiary of growing demand from the domestic steel industry.

Drilling profits 05-APR-10 Cairn India’s stock has delivered smart returns to investors in the last six months vis-a-vis the BSE Sensex.

Demystifying Elliott Waves 05-APR-10 Elliott waves can be recreated using the geometrical Time Triads.

Resistance at 5,330 05-APR-10 The market pushed to a new high and then eased back to the previous week’s levels.

Downside risk exceeds upsides 05-APR-10 Yet another low volatility, low-volume week passed.

Analysts' corner 05-APR-10 Driven by the 2.3 MTPA greenfield capacity expansion involving captive metallics and HR coils and the expected 10-12 per cent growth in the auto and consumer durables sectors, expect Bhushan Steel’s EBITDA/tonne to increase significantly to $320 in 2011-12 from $210 now.

Markets at a glance 05-APR-10 Key benchmark indices closed higher in a truncated week on account of Good Friday.

Smart Portfolios continues out-performance 05-APR-10 We are currently mid-way through the season 2 of Smart Portfolios .

The healthcare opportunity 05-APR-10 The US healthcare reform bill with its focus on cutting costs is likely to be beneficial for generic and CRAMS players.

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Monthly Report - March 2010

Job report to dictate momentum at Wall Street

Network 18

Daily News Roundup - Apr 5 2010

Positive momentum may prevail

Cairn India to drill 14 wells in 3 blocks by Sept-end

Maruti Suzuki sells a million units in FY10

Mahindra Satyam

Bharti Airtel Ltd

Shoppers' Stop

Proctor and Gamble

Fortis Healthcare

Adani Enterprises

Crompton Greaves

Src: ET and DP blog and Business-Standard

New Financial Year Starts (FY11)......

Top 5 picks I Mid term picks

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Heard on the Street

Clearwater seen taking control of Sayaji Hotels

In a first-of-its-kind instance, a private equity firm could end up taking control of the company in which it has been a minority shareholder until now.

US-based Clearwater Capital Partners made an open offer to buy an additional 20% in Indore-based Sayaji Hotels at Rs 110 apiece. Clearwater currently holds a 8.48% equity stake in the Dhanani-controlled hotel chain, and also 75 foreign currency convertible bonds that will mature in August this year.

The private equity player has the option to convert the bonds into 46,68,000 equity shares at Rs 75 each, which will increase its stake to 32.87% on the fully-diluted equity base. The promoter stake will come down to 41%, from 52%. Sebi regulations require an investor to make an open offer for an additional 20% stake when his holding exceeds 15%.

Clearwater said it intended to convert the bonds into shares and has made the open offer ahead of the conversion. Grapevine is that Clearwater had asked the promoters to buy it out after differences of opinion, which the latter refused. This provoked the open offer, say some brokers. If the open offer succeeds, the PE fund will have a majority stake in the company.

When contacted, an official of Sayaji Hotels said there was no difference of opinion between the management and Clearwater, and that the open offer was in line with the regulatory requirement. Trading in Sayaji Hotel shares was frozen at the upper end of the 5% circuit filter at Rs 112, after there were only buyers for the stock.

Sebi deals another blow to MFs’ profitability

Capital market regulator Sebi is learnt to have dealt another blow to fund houses, asking them to pay upfront commission to distributors from their own profits and not from expense pool.

In an email communication, Sebi has directed fund houses not to charge upfront commission to the overall 2.5% expense charges, which until recently were split in equal proportion to meet asset management charges and expenses, including upfront commission, transfer agent charges and marketing expenses.

The Sebi order will be effective from April 1. According to industry sources, the above order will put fund houses that pay higher upfront commission in deep trouble. Fund houses like ‘Cutie Eye’, ‘Icy Icy Mutual’, ‘Reliable Mutual’ and ‘Jammy Mutual Fund’, which are said to pay upfront commission between 100 and 200 basis points to push their schemes, will now have to pay upfront commission from their own pockets.

The other alternative for fund houses will be to force distributors to collect upfront commission from investors, which looks near to impossible. The Sebi diktat, if followed to the word, will hit the profitability of most fund houses.


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Mitesh Thacker's top 5 picks for trade today

Daily News Roundup - Apr 1 2010

Don’t get fooled!

Chambal Fertilizers

Bharti Airtel

Godrej Properties

India Strategy - March 31 2010

Kolte-Patil Developers

Cadila Healthcare

GSK Pharma

Sobha Developers

Zee Entertainment Enterprises

Sesa Goa

Src: ET and Moneycontrol and DP blog

Sensex ends FY10 with 80% gains; FIIs pump in $20 bn

Sensex ends FY10 with 80% gains; FIIs pump in $20 bn

It was an outstanding fiscal year - 2009-10 - for the Indian equity markets; the Sensex rallied 80% and Nifty surged 74%. FIIs came back in droves, pumping in close to USD 23 billion in India's cash market. India, in fact, was the second best performing equity market globally, next only to Russia in this fiscal.

Two big events that aided this rise - firstly a recovery in global markets on the back of numerous stimulus packages and secondly, a thumping victory for the Congress party in the Lok Sabha elections in May 2009.

Sector report

On the sectoral front, the BSE Metal Index was the star performer on the back of rally in prices of international commodities. Respective index shot up 210%. Jindal Steel & Power surged 256% and Hindalco was up 254%. Tata Steel gained 212% and SAIL rose 150%.

The Auto Index rallied 150%, as Tata Motors surged 310%. M&M was up 190%. Hero Honda and Maruti were up 85% each.

The BSE Bankex soared 140%, as Axis Bank, ICICI Bank and PNB surged 144-190%.

In the technology space, HCL Tech went up 263%, TCS up 200%, Wipro up 192% and Infosys up 105%. The IT Index was up 130%.

The BSE Oil & Gas and FMCG indices were the least performers in the year 2009-10. Respective indices were up 45% and 41%.

Stock performances

Among largecaps, IDFC was up 200%, Ranbaxy up 190%, Jaiprakash Associates up 168% and L&T up 147%.

Idea Cellular gained 34%. BPCL and ONGC were up 40%. RIL went up 44%. HUL rose just 1% and NTPC went up 13%.

However, Reliance Communications declined 4% and Bharti Airtel was down 1%.

Among the broader indices, the CNX Midcap Index was up 128% and BSE Small Cap Index up 162%.

In the midcap space, Jindal Saw shot up 510%. IndusInd Bank, JSW Steel, Orbit Corporation, Greaves Cotton and Yes Bank were up 410-458%. Gujarat NRE Coke gained 355%.

In the smallcap space, Fame India surged 740%. Unity Infra, Supreme Infra and Zydus Wellness rallied 555-675%.

Currencies and commodities

The US Dollar Index was down 5% while the Reuters CRB Commodity Index was up 21%.

Stock market gives investors 80% return in FY'10; best in 5 yrs

NEW DELHI: Investors have reaped a five- year best return of over 80 per cent from the stock markets in fiscal 2009-10, when judged by the performance of the BSE benchmark index Sensex.

Analysts, however, said that the momentum could be slowed in the coming fiscal as investors are expecting a lot from the market now, which may not come in until there is a correction.

The bulls were back with a bang in fiscal FY'10, offsetting the losses incurred by investors in the previous financial year.

The returns from investments in this fiscal have soared to 80.5 per cent. The Bombay Stock Exchange benchmark Sensex settled at 17,527.77 points on March 31, 2010, from 9,708.5 points at the end of March 31, 2009. The Sensex had jumped to its two-year high level of 17,793 points on March 29 driven by strengthening of the rupee against the US dollar.

During FY'09, the 30-share index had plunged to 9,708.50 points from 15,644.44 points, losing nearly 38 per cent.

"The market has gained quite a lot and will continue to remain volatile in the coming days. Monsoon will be a deciding factor for the overall growth of the economy and that would in turn affect the capital market," Taurus Mutual Fund Managing Director RK Gupta said.

During fiscal 2007-08, the market provided a return of 20 per cent, while the same for 2006-07 and 2005-06 was 16 per cent and 74 per cent, respectively.

The fiscal has been a good one for the broader market with a host of new companies coming out with public offerings and three state run companies -- NTPC, REC and NMDC -- coming out with follow-on-offers.

Among the biggest gainers in the Sensex companies Tata Motors surged over 300 per cent, followed by Hindalco 240 per cent, Tata Steel 210 per cent, TCS 200 per cent and Wipro 190 per cent in financial year ending March 31, 2010.

Other major gainers include ICICI Bank 180 per cent, M&M 175 per cent and the index heavy-weight Reliance Industries 44 per cent.

"Returns have been widespread for the market but the coming financial year will not be too rosy. We are cautiously bullish on the market as a lot of expectations have been built up," SMC Global Vice-President Rajesh Jain said.

Analysts said at this juncture a correction is imminent in the market and the Sensex could trail the 20,000 level by the end of next fiscal (2010-11).

"FIIs may withdraw money if the rupee strengthens at this pace. It will pour in money again after the rupee comes back to the 47-a-dollar mark," Gupta said. The Indian rupee is currently hovering around the 44.97-a-dollar mark, at nearly 19-month high level.

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Emerging market currencies show cracks



Src: Moneycontrol, ET

Reliance to tighten grip on world fuel markets

Reliance to tighten grip on world fuel markets


NEW DELHI/SINGAPORE: India's top privately run refiner Reliance is expected to raise crude oil imports by about 22 percent this year as it ramps up production at its giant complex, further stamping its mark on world markets.

To maximise profit margins with its sophisticated refining capability, Reliance Industries is also set to limit African crude imports this year in favour of Middle East grades, if light crude prices continue to strengthen against heavy-sour grades, traders and analysts said.

"I expect Reliance refineries to run at full steam, even if in between there is a small shutdown, they can easily run at about 65 million tonnes," said a trader familiar with refining operations. Reliance declined comment on traders' estimates.

This means that the company's two refineries -- the largest facility in the world -- will run above their full combined capacity of 1.24 million barrels per day (bpd), higher than last year when its second plant began operating at full rate in the second half.

After the world first saw increasing flows from Reliance in the summer of 2008, with the start of its new 580,000 barrel-per-day (bpd) plant, this year will see the full blast of exports of high-value diesel and gasoline made from a diverse slate of the cheapest available crudes.

This will put pressure on weak Western refineries and arbitrage traders at a time oil demand is just starting to pick up, but is still in defensive mode, analysts said.

Also Read

→ Buy Reliance at 1050 with a stp loss of 1020: Sandeep Wagle

→ Reliance Industries stock should be acquired: Centrum Wealth Managers Ltd

→ Reliance getting close to 1150-1200 levels: Deepak Mohoni

"It's a powerful refinery, and if they get the right logistics, they can probably penetrate Western markets, gain market share and push some out of the market entirely," said John Vautrain, senior vice president of Purvin & Gertz Inc.

DIVERSITY OF CRUDE

The refiner's 2009 crude shipments from Africa including Egypt and Sudan rose more than fivefold to over 200,000 bpd, making the continent its No. 2 supplier, overtaking Latin America. This is in line with a 74 percent jump in total imports.

It bought crudes as varied as Cameroon's Lokele, Chad's Doba, Venezuela's Corocoro, and China's Penglai, while resuming Iraqi crude imports that it shunned in 2006.

Reliance for the first time imported Gimboa crude from Angola, which positioned itself as the fourth-biggest supplier, surpassing Venezuela. It also took crude from Gabon, Ivory Coast, Congo, Colombia, Ecuador, Syria and Yemen into its roaster.

Though Middle East crude remains Reliance's main staple, OPEC supply cuts in end-2008 -- around the time the refiner started its new plant -- prompted it to turn to African crude to make up for the gap when Gulf grades became costlier last year.

This was made possible after the Brent-Dubai price spread, an approximation of the premium at which Atlantic basin light-sweet crude trades to Gulf heavy-sour grades, reversed into steep discounts three times last year, making some West African crudes cheaper, traders said.

The structure has returned to normal this year. The front-month Brent/Dubai Exchange of Futures for Swaps (EFS) for May rose to $2.50 a barrel on March 18, the highest since OPEC producers began record supply curbs.

More @ http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/Reliance-to-tighten-grip-on-world-fuel-markets/articleshow/5746150.cms


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Indian shares could rise further in Q1 of FY-11: Poll

Check out cos that gave high dividend in last 6 years

India poised to overtake China

Nifty volatile; NTPC, SAIL, HDFC, HDFC Bank, GAIL up

RIL-RNRL case: A relook at arguments in the fight for gas





Src: ET and Moneycontrol

Morning calls

Top 5 picks I Mid term picks

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Heard on the street

Buying by domestic funds boosts Tilaknagar
Shares of Tilaknagar Industries, a mid-sized liquor brewer, has rallied smartly amid major fund-based buying, even as its promoters have been reducing their stake in the company over the past few weeks. Market sources attributed the current frenzy in the counter largely to purchases by domestic mutual funds looking to boost their net asset values by the end of this financial year. The promoters — Dahanukars — have sold a sizeable 12% stake through many deals transacted in BSE’s bulk deal segment between March 8 and 29. They sold a total of 37.1 lakh shares in different lots at different prices for Rs 44 crore during the period. Of these, 15 lakh shares were picked up by Citigroup Global Markets and another 7.5 lakh by ABN Amro Bank, according to disclosures filed with the exchange. The Dhahanukars owned 74% in Tilaknagar Industries as on December 31, ’09. The stock has risen 20% over the past one month, before closing flat at Rs 123 on Tuesday.

BGR Energy on institutions’ radar
Institutional investors have been buying shares of power equipment manufacturer BGR Energy Systems on the hope that the company will do well on the back of increased government spending in the power sector, unique business positioning and strong order book. According to institutional dealers, ‘Reliable Mutual Fund’ and ‘Cutie Eye MF’ have been accumulating shares of BGR Energy Systems in large numbers over the past few weeks. The operator group — led by the Rar(e)ing bull — has also been buying shares of BGR Energy at every opportunity. On BSE, the shares ended 1.2% higher at Rs 515 on Tuesday.

Gail falls as a foreign investor cuts exposure
Shares of Gail India drifted lower in heavy trade on Tuesday, closing at Rs 401.55. Dealers tracking the counter say a foreign institutional investor (FII) has been cutting exposure to the stock in the past couple of trading sessions. This fund is said to have offloaded 10 lakh shares on Monday and another 7 lakh shares on Tuesday. Offers for sizeable blocks of the stock were doing the rounds on Tuesday too. Speculation is that the fund is looking to sell 30 lakh shares in all, of which 17 lakh have already been placed. Till buyers emerge for the last tranche, the stock could remain subdued, say dealers.

(Contributed by Vijay Gurav & Shailesh Menon)

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Daily News Roundup - March 31 2010

No Big Bang here!

Shoppers Stop

Container Corporation

DLF

GSPL

Pratibha Industries

Src: ET and DP blog

Morning Calls

Top 5 pics I Mid term pics


Experts say investors could add NMDC to portfolio if it falls further


IT stocks: Valuations may rise further


Check out the cos with low P/E, high dividend yield that give better returns


Pre-Market: Stocks seen higher

Daily News Roundup - March 30 2010

Make sense of the business

Bright day for precious metals

Gabriel India

DB Corp

Tata Motors Ltd

Cipla

Colgate Palmolive

Fortis Healthcare

Stocks in news: Aqua Log, SAIL, Ranbaxy, Bharti, SBI

RIL-RNRL case: Is the verdict expected soon?

Bowen Capital's top sector/stock bets for 2010 | Sharmila Joshi's must-have stocks for your portfolio

What experts say about IL&FS Transportation listing? (today lists)



Src: ET and DP blog and Moneycontrol

Morning Calls

Inching up towards new highs

There were very nominal changes to index values in a settlement week where the Nifty swung between a high of 5,294 points and a low of 5,193 before finally settling at 5,282 for a small gain of 0.4 per cent. The Sensex was also up 0.4 per cent at 17,644 points. The Defty gained a more substantial 0.7 per cent due to the rupee strengthening against dollar.

Breadth was fair through the week with advances outnumbering declines. Volumes were on the low side for a settlement week. The BSE 500 was ahead by 0.3 per cent while the Midcaps gained 0.4 per cent and the Junior was up 0.8 per cent. FIIs were net buyers while the domestic institutions continued to be net sellers--- this has been the pattern through the entire March settlement

Outlook: The market is likely to touch a new 52-week high sometime next week, beating the 5,310 mark it registered in early January 2010. But momentum is weak and so are volume indicators. Unless there's a pickup in trading interest, prices beyond the 5,300 mark will not be sustainable. Most likely, prices will remain in the range of 5,200-5,300.

Rationale: The intermediate trend has now been up for around 7 weeks and it could stay up for several more weeks. If the pattern of higher highs is maintained, the 52-week high of 5,310 would be exceeded and that would confirm a strong long-term trend as well.

However, there are signs of weakness in the low volumes and low momentum indicators. Another technical signal of weakness is that the simple 200-Day Moving Average (DMA) is outperforming the exponential 200 DMA. A correction should find support at around 5,200. A possible reversal in the intermediate trend would be signalled by a fall below 5,193, setting up a pattern of lower lows.

Counter-view: Most likely, unless volumes climb, the market is likely to trade in the range of roughly 5,200-5,350 next week and end in the lower half of that zone. One underlying cause for a non-trending market is that the DII-FII attitudes have been consistently opposed. If institutional attitude is aligned, the market will move in the direction of net institutional positions. Until volumes do climb, we won't see a major breakout.

Bulls & Bears: The lack of a strong trend in the overall market has been reflected in sector movements. In many cases, one day of net sector gains has been followed by sell-offs in the next session. Banks were among the best performers last week with the BankNifty bouncing almost 2 per cent.

The IT Index underperformed, with only nominal gains. Smaller IT stocks did better than the larger ones but the rising rupee could put pressure on the whole sector. Pharma stocks registered steady gains with Ranbaxy, Cipla, Dr Reddys, Glenmark Piramal all finding backers.

Energy was in the limelight on Friday as were auto- and auto-ancillary scrips. Both sectors look poised to register potential gains on Monday as well. The trends in metals and real estate appear quite mixed. Engineering and construction also showed signs of selective investment.

MICRO TECHNICALS

BAJAJ AUTO
Current Price: Rs 1,977.9 0 Target Price: Rs 2,050

The stock has just made an upside breakout on expanding volumes. It has the potential to move till around the Rs 2,050 and it should reach Rs 2,020 in the short-term. Keep a stop at Rs 1965 and go long. Be prepared for excessive volatility.

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GLENMARK PHARMA
Current Price: Rs 252.60 Target Price: Rs 265

The stock is picking up volumes along with a strong uptrend in price. It has the potential to rise till around Rs 280- Rs 285 but it will run into resistance at around Rs 265 so, that should be the initial target. Keep a stop at Rs 249 and go long. Book 75 per cent profits at Rs 265 and reset the stop to Rs 260.

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ONGC
Current Price: Rs 1,079. 90 Target Price: Rs 1,120

The stock has started to move up on some volume expansion. It has the potential to test Rs 1,120 on an intra-day basis and it may move further, till around the Rs 1,140 mark. Keep a stop at Rs 1,065 and go long. Above Rs 1,115, book 50 per cent profit and reset the stop loss to Rs 1,105.

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HIND UNILEVER
Current Price: Rs 238.50 Target Price: Rs 250

The stock has just started recovering from a period of sustained selling that pushed prices to a recent low of Rs 218. It has the potential to bounce till the Rs 250 level. Keep a stop at Rs 232 and go long. Book 50 per cent profits above Rs 245 and reset the stop loss to Rs 250.

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ICICI BANK
Current Price: Rs 947.50 Target Price: Rs 920

The stock is range-trading through a zone of Rs 915-960 and it's more likely to head down in the next week. Keep a stop at Rs 955 and go short. Increase the position below Rs 940. Start booking profits at around Rs 920. Below Rs 920, consider reversing the position and going long.

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Fund managers in buy mode 29-MAR-10 In an otherwise quiet week for the markets, Smart Portfolios fund managers were busy building their portfolios ahead of the quarterly and full year earnings next month.

Markets at a glance 29-MAR-10 Despite RBI hiking interest rates during the week, the markets delivered the seventh week of gains in a row.

Indian stimulus exit won't 'kill' rally 29-MAR-10 India’s stocks will withstand the withdrawal of stimulus measures and extend last year’s rally, the biggest in 18 years, as domestic spending strengthens, said Prudential Financial Inc.

Volatility could increase through the week 29-MAR-10 Despite low volumes the settlement went through with net gains.

Inching up towards new highs 29-MAR-10 There were very nominal changes to index values in a settlement week where the Nifty swung between a high of 5,294 points and a low of 5,193 before finally settling at 5,282 for a small gain of 0.4 per cent.

Time triads creating H&S fractals 29-MAR-10 We have talked about head and shoulder on prior occasions.

Analysts' corner 29-MAR-10 Our global commodities team has increased its forecasts for 2010-12 annual contract settlements by 2-8 per cent.

Trend reversal 29-MAR-10 Contrary to popular belief of a 50 basis points hike in key rates during April 2010 monetary policy review, the RBI stepped in decisively in the interim.

Aiming high 29-MAR-10 Ahluwalia Contracts, a mid size construction company, is well placed to benefit from the planned investments in the infrastructure sector, especially in urban infrastructure.

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Top five pics | Mid-term pics

Analysts' picks: Oil India, BHEL, Tata Power, Shriram Transport Finance

Indraprastha Gas a good bet for long-term investors
29 Mar 2010, 0622 hrs IST, Ramkrishna Kashelkar

As the mature natural gas industry enters its next round of high-investment-high-growth phase, long-term investors can gain from betting on Indraprastha Gas.

Financial management: How a woman can plan her future
29 Mar 2010, 0615 hrs IST, Supriya Verma Mishra

To help women make the most of each penny, ET Intelligence Group explores some schemes/options that can help them plan their future well.

Blue Dart Express offers attractive investment opportunities
29 Mar 2010, 0606 hrs IST, Amriteshwar Mathur

Blue Dart Express enjoys a strong presence in courier & integrated express package distribution space and offers attractive investment opportunities.

Lupin: Future prospects are bright
29 Mar 2010, 0602 hrs IST, Kiran Kabtta Somvanshi

An all-round growth delivered by Lupin bodes well for its future prospects.

Pharma sector: There is room for value buying
29 Mar 2010, 0557 hrs IST, Kiran Kabtta Somvanshi

While valuations of the pharmaceutical sector appear to be strained, there is still room for value buying from small and large-cap universe.

BHEL a good bet for medium to long-term investors
29 Mar 2010, 0550 hrs IST, Ahish Agarwal

BHEL is currently trading at around 30 times its trailing 12-month earnings, which makes it an attractive option. Investors can consider exposure in the stock with a medium to long-term outlook.

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Oil India

Amtek Auto

Engineers India

Weekly Watch - March 28 2010

Trading strategies on 8 stocks that buzzed last week


Weekly Market Wrap

Technical Picks – Stocks



Src:Business-Standard, ET, HDFC Securities, Moneycontrol and DP blog and etc