Friday, February 29, 2008

Thumbs Up to FM's budget today

Finally budget day.
But cautious is advised as today the market to swing in the tune of FM.
On the downside the Nifty finds a support at 5220 and then at 5170 and then 5130
5020 is a good support which is not expected to be broken in tomorrow trade.

On the upside Nifty faces a resistance at 5320, 5350 and as usual still maintaining my words the zone of 5370 - 5410 is a tough resistance

Trading strategy -- Don' trade simply because you want to trade. Can skip tomorrow trade, or else do quick buying and selling

Indian Markets are in no mood to couple with global markets from the last couple of days though F&O settlement tried to create ripples. Markets are lacklustre and are expected to react sharply on the up today unless Mr.Chidambaram hands over a negative surprise. With very low expectations set in the run up to budget the downsides are negligible. Lets take a peek at the Industry wish list.

1. IT Sector - Looking for an extension of the STPI (Software Technology Park of India) scheme, which expires on March 31, 2009.

2. Telecom Sector - Looking for a cut in license fee

3. Oil Sector - Looking for series of tax and duty changes related to oil product retailing, exploration activities and natural gas

4. Textiles - More sops to the sector like enhanced TUF(Technology Upgradation Fund).

5. Consumer Durables - Looking for more attention in the form of incentives as a slow down is visible.

6. Automobile - Looking forward to a reduction in excise duties.

7. Pharma - Looking for Price control and tax benefit from investments in R&D

8. Agricommodities - We believe this sector is likely to grab major attention today from Mr. FM

9. Fertilizers - More subsidies look imminent here

10. Infrastructure - Looking for more allocations towards the development of infrastructure in the country

General

Positives : Increase in FII investment in sectors like such as media, banking and insurance.

Negatives : Likely tax net on Mauritius registered VC's

It is always tough to read the mind of the FM, proved number of times. But the expectation that the budget will prefer the common man will be spot on as the Government will try to pacify him along with the political allies in the wake of next year's general elections.

Majority analysts feel the budget is a non-event. We think otherwise and this is the only opportunity for Bulls to take advantage visible for the next 40 days or so. Keep fingers crossed and the coin tossed till Mr.Chidambaram opens the mystery bag.

Stock in news - Aban Lloyd, IB Real Estate, Matrix Labs, DLF, Gammon and other stocks hit the headlines today.


NIIT Technologies has acquired German-based SofTec GmbH, a specialist in providing IT solutions and services in the airline revenue accounting and operations space.

Sonata Software Ltd has teamed up with Oceanus, a UK based company to enhance their development of integrated Case Management Solutions and Environment Management Solutions, which are specifically designed for customer service environments.

DLF is likely to invest about $5 billion or Rs 20,000 crore to build and operate more than 25,000 rooms in the next 7-8 years.

Gammon India has filed the Red Herring Prospectus in connection with the IPO of its subsidiary Gammon Infrastructure Projects Ltd (GIPL).

Apollo Hospitals is likely to set up a Rs 280 cr hospital in Mauritius

Indiabulls Real Estate (IBREL) will acquire its partner Dev Property Development (DPD) in an all-stock deal worth

Aban Offshore Ltd has received a 3 well contract offshore Myanmar, for the jack-up drilling rig Deep Driller 5, with an estimated duration of 4 months. This contract will be in direct continuation of the current contract with Cairn Energy Sangu Field Ltd. The estimated contract value is approximately USD 25 million

Thursday, February 28, 2008

Subdued US Market, Bears are the likely target

Bernake came into the resuce of the wall street after a down opening yesterday. The Fed chief re-iterated that inflation concerns will not stand in front of another rate cut. Dow Jones ended the day up 9 points at 12,694 and Nasdaq up 8.7 points at 2,353. This is the fourth consecutive positive closing for the Dow Jones while a hatrict for the Nasdaq. We are the first ones to report the Dow Jones forming a Medium term botton on Satruday morning IST.

Indian Markets are not able to latch on to the early gains built yesterday due to credit concerns and negative news flow from the Europe. When the big brother is able to withstand the negative news why the emerging market like India is looking at every oppurtunity to fall. It once again nails down to the huge short positions built up by the FII's for the Feb Series. There are reports in the market that shorts were rolled over to the March Series. We believe Budget will signal the end of the bearish saga haunting from the last 45 days.

Markets are likely to open in a subdued fashion only to pick up later in the day. Except a 200-300 point gain today on the BSE Sensex. Momentum Calls like OnMobile, KS Oils and McLeod Russel, Dhanus Tech tasted success while few others are on the way to reach targets. Subscribe to get the best value advice in the Indian markets.

We again re-iterate that fundamentals cannot be over shadowed for longer period and many stocks are still trading at attractive valuations. The hang over will be over soon and FM is likely to be the torch bearer for the next rally.

Stock in news - Dabur Pharma, Spice Jet, UTV Software, Shasun Chemicals and many more hit the headlines today.

Shasun Chemicals formed an exclusive deal with global pharma biggie Merck & Co thats allows the American company the use of Shasun’s proprietary technology to make bulk drugs.

ET reports that Dabur Pharma is looking out for a buyer and said to be in advanced stage talks with a renowned PE firm.

SpiceJet is likely to fly to gulf and china.

ABC news is likely to take stake in UTV news.

Sun Pharma gets USFDA nod to market generic demadex tablets.

BGR Energy Systems has won a BOP contract worth Rs 793 crore from the Andhra Pradesh Power Generation Corporation for a 500-MW coal-based project in Kothagudam.

Aries Agro is likely to increase capacity by five fold

Nagarjuna Constructions is actively looking for a foreign partner for getting into auxiliary equipment business, used in power plants.

Wednesday, February 27, 2008

Thank u for ur Greaat response

We are gald to anouunce that today we r 900+subcriber ,thank u for ur greaat response,and thanks to all nri too also for ur trust

Markets look to open strong for the third day in a row as Bulls look to come back and regain some lost ground in the past few months. The global cues are good with the US markets ending up and Nikkei joining the gainers club
On the domestic front Reliance Industries Ltd announced that it discovered natural gas in Mahanadi and this will definitely reflect on the stock performance today. The overall sentiment in the market has started improving as we have seen some selective buying in some sectors like Tea which has underperformed the market for the past 12 months. The focus has now turned to Budget 2008 which is due on Friday, ignoring the upcoming F&O expiry. We strongly believe and are nearly certain that Agriculture (fertilizers in particular) and Textiles will be the two key sectors to watch out for in the upcoming budget.

Mid cap and Small cap indices which have underperformed the index for the last 6 sessions made a come back yesterday and are likely to outperform the large caps in the coming days. We see a gain of 1.5 to 2 percent on BSE today with selective buying in sectors which could gain from budget sops.

Stock in news - RIL, BHEL, Concor, Cairn India, Petronet LNG are Newsworthy stocks today.


Reliance Finds Natural Gas in Mahanadi Basin.Reliance owns 90 percent in the area and Canada's Niko Resources Ltd. holds 10 percent of the area

Bharat Heavy Electricals Ltd won a $269 million) order for a power project in Gujarat from Gujarat State Energy Generation Ltd for a 350-megawatt turbine-based plant that will be located at Hariza.

Container Corporation of India (Concor) is all set to add eight new rail-linked inland container depots) with an investment of Rs 320 crore by the end of 2009

Cairn India has entered the race for acquiring two oil exploration blocks in Sri Lanka, by bidding for blocks 001 and 002 under the ongoing Sri Lankan licensing round.

Asian Development Bank is likely to exit Petronet LNG Ltd by selling its 5.2 per cent holding in the country's biggest liquefied natural gas importer possibly to promoters or billionaire Lakshmi Mittal.

Tuesday, February 26, 2008

BE READY FOR BLAST

YES SAID VANDE MANTRAM BOLKE BULLS ATTACK NIFTY & SENSEX
SEE WHAT HAPPENS NOW TOO for more add sheth_jg@yahoo.com but only those who wants to subscribe can add me

On the upside market faces an immediate resistance at 5234 and then 5280 upon successfully crossing this level and stay above this level can take Nifty straight to 5310.Above which the market can even touch 5380 - 5410.

But again remember the level between 5380 - 5410 is an important resistance currently Nifty is facing, we have seen from past few days that reversal happening around this level. So be careful.

On the downside market finds immediate support at 5160, If this level is broken then we can see more fall and the Nifty could show 5020

Pick No 1 - Buy Guj AMbuja (cmp 122.55) - Trader can buy around yesterday close keeping a stop loss of 120. Final target and stop loss only to clients

Pick No 2 - Buy K . S. Oil (cmp 96.60) - We kept on saying on Thursday and Friday and continuously told our paid clients to hold and see today where it is from 86 - 84 to 98 today. Traders can buy around this level with a stop loss below 93 target 100 and 103

Stock in news - GMR Infra, Godavari Power, Crompton Greaves and ONGC make the headlines

GMR Infrastructure which has New Delhi, Hyderabad and Istanbul airport projects in its kittyis now foraying into air charter services. The company is diving into the corporate jet market with a capital expenditure plan of Rs 700 crore.

Godawari Power and Ispat (GPIL), based in Chhattisgarh, is mulling foray into commercial power generation with projects in Chhattisgarh or Jharkhand with capacities ranging between 300 to 1,000 mw with coal and coal rejects as fuel.

Electrical equipment manufacturer Crompton Greaves on Monday announced a tie-up with Dutch firm Lemnis Lighting for launching LED lighting products

ONGC has notified four discoveries of crude oil and natural gas to the Directorate-General of Hydrocarbons this month. The board has also cleared three major investments for growth-oriented projects which includes Dahej Petrochemicals Project.

Tulip IT Services having raised $150 million via foreign convertible currency bonds (FCCB), has earmarked around $40 million for an acquisition in the US having managed services capability.

Monday, February 25, 2008

DONT MISS CHANCES TO MINT MONEY

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Stock in news - Reliance Power, Tourism Finance, IRB Infra, IOC and many other stocks hit the headlines today.


IRB Infrastructure is listing on the bourses today.

Tourism Finance is planning a Rs 400 crore equity fund reports Mint. Earlier RBI permitted FII's to increase stake in the company.

Entertainment Network India Limited is likely to benefit from TRAI's recommendation of FM radio channels allowing broadcasting news and increasing FDI

Bombay Dyeing is reporedly planning Rs 60 cr retail expansion, foray to UAE.

Reliance Power approved bonus in the ratio of 3:5

Renaissance Jewellery is likely to sell its retail venture soon

On the upside market faces an immediate resistance at 5160 - 5180 upon successfully crossing this level and stay above this level can take Nifty straight to 5310.Above which the market can even touch 5440.

But again remember the level between 5380 - 5410 is an important resistance currently Nifty is facing, we have seen from past few days that reversal happening around this level. So be careful.

On the downside market finds immediate support at 5090, If this level is broken then we can see more fall and the Nifty could show 5020

We are now in a do-or-die zone with the biggest possible trigger, the Union Budget coming up on Friday Feb 29th. All eye are on Mr.Chidambaram to deliver the goods. Low expectations can be considered as a welcome sign. Export driven sectors are hoping for a relief package and are likely to get the same. All in all a populist budget is expected from the FM taking next year's general elections into consideration. At the same time Mr.PC cannot take the chance of neglecting the country's economic growth. Infrastructure needs a big boost and there might good news on the taxation front for common man.

Reliance Power declared a 3:5 bonus in yesterday's board meeting. The price after bonus works out to be Rs.269 for a retail shareholder and Rs.281 for a HNI. We leave it to Mr.Ambani to decide whether the bonus is in agreement to the extreme high valuation of the IPO or a sympathy towards the retail investor. The stock is likely to react positively to the news though we do not see a huge rally in the coming days.

Private banks are likely to be re-rated on the news of HDFC-Centurion bank merger. Stocks to watch in this space include Bank of Rajasthan, Dhanalakshmi Bank, IndusInd Bank, City Union Bank and South Indian Bank.

Given the volatility and the drag in the capital markets not many investors are likely to believe in our theory. In case of a subdued market response to the budget we are unlikely to see rallies till Q1 results or any global news that impacts Indian bourses. So in short it is a 'Now or Never' situation for Indian markets to perform.

We expect the markets to open strongly and hold on to the gains. The extent of gains are largely dependant on the pre-budget rally, which we believe will set in any time.

Friday, February 22, 2008

Will nifty go below 5000 Today?? JOINTO KNOW MORE

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ADD sheth_jg@yahoo.com
On the downside market finds immediate support at 5125, If this level is broken then we can see more fall and the Nifty could show 5030. Market expected to be range bound between 5050 - 5230, opening could be negative .On the upside market faces an immediate resistance at 5210 - 5230 upon successfully crossing this level and stay above this level can take Nifty straight to 5305

Indian Markets have never witnessed this kind of drag phase in the last 4 years. Not to say there are 3-4 thousand point plunges in the Sensex but the recoveries are smart enough barring this time. It is a million rupees question for Indian investors whether to get out of stocks or stay invested in the market. We believe there is absolutely no point in getting out of the market and we strongly take this as another prolonged bear cycle with in the bull phase. Stay invested but with more patience as things cannot turn overnight.

Technology stocks as expected rejoiced yesterday on weak rupee. Markets are likely to open down a big way but recovery from the lows is a certainity. Sensex is likely to lose somewhere between 200-300 points unless pre-budget rally sets in.

Government in an unprecedented move approved a fresh Rs 500 crore assistance to help exporters after a Rs 300 crores alloted recently. Textiles and farm product related companies are likely to benefit immensely from the forthcoming budget. Infrastructure and logistics are the other sectors to watch for in the budget.

STOCK IN NEWS- Centurion Bank, Jai Corp, Financial Tech, HDIL, Indiabulls Financial Services,Wockhardt, Bharat Forge and many more stocks hit the headlines today.


Bharat Forge is planning to set up a steel unit in West Bengal.

Reports of political uncertainities in Kenya is likely to push Tea prices higher. Keep a watch on Tea stocks like Mcleod Russel and others.

Centurion Bank is likely to merge with HDFC Bank in an all-stock deal. The deal is reported to be worked out at a market price of Rs.57 a share of Centurion Bank. Buy on rumours sell on news.

Wockhardt Ltd after withdrawing its IPO for the hospital venture is looking for funds from PE companies to raise upto Rs.800 crores.

Indiabulls announced that SEBI has approved to set up mutual fund business in the country.

Bajaj Auto is likely to list the de-merged entity(Bajaj Holdings & Investment Ltd)on the stock exchange by the end of April.

RBI has permitted FIIs to pick up stakes in three companies Tourism Finance Corporation of India, Tulip IT Services and Info Edge India under the portfolio investment scheme

Housing Development & Infrastructure Ltd(HDIL) inline with the rumours has sold the Andheri property to a private company for nearly Rs 900 crores.

Jai Corp is likely to launch a mega realty fund to invest in famour "The World islands project", dubai reports ET

The Centre on Thursday cleared a new Rs. 500-crore package in the form of interest subvention for exporters, in addition to Rs. 300-crore package announced recently

Thursday, February 21, 2008

FERTILIZER,AUTO,IT SECTOR ARE GOOD

Essar oil ONGC BPCL GMR REL ENGY shall be good for Intraday traders,go positive in these counter.
JOIN TO KNOW MORE ADD sheth_jg@yahoo.com

Market still looks positive to me as long as market stays above 5120
Break of 5120 can drag the market down to 5035 and break of this to 4940
And especially 4940 is not expected to broken.
On the upside market faces immediate resistance at 5180 and a good resistance at 5235
Break of 5235 successfully and trade above this can take us to 5270 and then finally a good resistance zone between 5330 - 5350 followed by another good resistance zone at 5410 - 5420.

Always remember the zone between 5330 - 5350 and 5410 - 5420 have proved to be hard for the nifty to break and the reversal had many times near these levels

Pick No 1 - K S Oils - Our clients are holding this call, you can also look to buy around 85. Good for intraday and delivery. Stop loss and target only for clients. Clients will get proper target and proper stop loss of it. Remember don't execute any calls at hurry, wait for market to settle and don't buy in negative trend

Pick No 2 - Essar Oil - Again showing some positive sign, look to buy around the level of 240 and keep stop loss 233. Clients will get proper target and proper stop loss of it. Remember don't execute any calls at hurry, wait for market to settle and don't buy in negative trend

Indian Markets appear more concerned about US Economy, than the Wall Street. Any negative news across the globe is taken as advantage by the market players to short the market heavily. This implies we have a show on the cards with shorts still in play and any major upswings will push the Sensex wildly further. But technicals will support the rally only above 19.240, till then it is a cat and mice play.

Rupee is getting weaker and this augurs well for Technology stocks and other export oriented stocks like Textiles and Auto ancillaries. Yesterday's weak trade shows the promise in these sectors. Midcap IT showed strength on Tuesday and were silent yesterday. Today we expect them to fire again. PE funds are looking actively looking in the logistics space (Blackstone buys 10 percent stake in Allcargo). We like another stock here(Leader in Logistics).

Markets are likely to trade up with minor bouts of volatility and with strength appears tilting towards Bulls

Stock in news - ABB, Tata Motors, Reliance Capital, Accential Tech, Omnitech, Wockhardt and many more are the stocks in news today.

ABB is in talks for Rs2,000 crore orders from power companies

SBI and Canara bank reduced the benchmark prime lending rates (PLRs) by 25 basis points, second time in less than one week.

Wockhardt posted a 23 per cent jump in net profit to Rs 106.9 crore in the fourth quarter ended December 31, 2007, courtesy acquisitions and European business

Reliance Energy today outbid Reliance Industries consortium to win the prestigious Rs 6,000-crore trans-harbour link project in Mumbai.

ADAG led Reliance Capital (RCL) on Tuesday got the Reserve Bank of India’s nod to venture into the asset reconstruction business.

Orchid gets nod from USFDA for Cefuroxime Axetil tablets

Mumbai based Omnitech InfoSolutions, today said it planned to raise $35 million from overseas markets to fuel its domestic expansion.

The much hyped Tata Motors' Nano car is likely to roll out production in October 2008

Wednesday, February 20, 2008

Nifty opening down and might recover -Join to know more

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Indian Markets are likely to witness another dull day after a lacklustre Monday and Tuesday, though volatility is not ruled out. Midcaps are likely to outshine largecaps though broad based rallies cannot be expected given the macro economic scenarion. Expectations on the budget are likely to start building up and Textiles, Infrastructure, Power and IT sectors are likely to benefit from the same. FDI in Cable TV and more sops to agriculture sector are in the pipeline.

Crude closed at $100 per barrel for the first time ever. Wall street lost all the gains to end the negative zone with Dow Jones losing 11 points to close at 12,377 and Nasdaq closing at 2,306 down 15 points. Zurich-based Credit Suisse, Switzerland's second-biggest bank, today announced a USD 2.85 billion in writedowns blaming on the credit turmoil. After hours Hewlett-Packard declared street beating results and raised the outlook.

Japanese markets are currently trading down 77 points on the weak global cues. We beleive Japanese markets have already bottomed out just below 13,000 levels 10 days back. We do not expect big losses in Japanese markets in the coming days.

Govt in a surprising move today extended tax sops to exporters covering transport and storage of goods. Taxes will be refunded back to the exporters. Logistics companies are likely to benefit from this move. Gateway Distriparks, Container Coporation, Patel Integrated Logistcs are few listed players in this segment.

Reuters reports that government is likely to levy 10 percent export tax on Iron Ore exporters, courtesy powerful Steel Industry lobbying. Sesa Goa is likely to take the hit. Rupee hits a 5-month low on shortage of dollars, in conjunction with other International currencies against the greenback(USD). IT Stocks started looking up with midcap stocks picking up steam. Though IT Stocks tried to come back many times in the last 4-5 months, many a time turned out to be one day wonders. This time weak Rupee is working to their advantage.

OnMobile Global surprised the street with better than expected listing on the bourses. Bang Overseas Ltd & Shriram EPC Ltd are listing on BSE today. On the IPO front REC(Rural Electrification Corporation), the govt. owned power finance corporation subscribed in the first 30 mins of its opening.

Stock in News -Nagarjuna Constructions, Polaris, Indus Indbank, BEML, L&T, Punj Lloyd and many more are the stocks in news today.

Nagarjuna Constructions is likely to sell its stake in subsidiaries NCC

Infrastructure Holdings Ltd and NCC Urban Infrastructure Ltd to PE Firms in the next 2 years.

Orderbook of BEML(Bharat Earth Movers limited) is expected to cross Rs.4,000-crore mark in the current fiscal, compared to the current order book of Rs.3,200 crore

Anil Ambani-led Reliance Power complained to market regulator SEBI about the possibility of a manipulation of its stock price immediately on its listing on February 11.

Mint reports that the central intelligence unit of Indian customs here has launched a series of cases alleging import duty evasion by nine infrastructure firms including listed firms like Punj Lloyd, Era Constructions, Gammon India and Maytas Infra Pvt. Ltd.

Polaris Software Lab has entered into a strategic partnership with City Networks, a software and services developer for the treasury, securities and derivatives markets. Under the agreement, Polaris will provide product development and support services to City Networks.

CNI Research Ltd has signed a consulting agreement with Wakabayasbi Fund, LLC, a Japanese limited liability company, a corporation formed under the laws of the Japan. The agreement is for liaison of capital funding and institutional relationship (non exclusive in India and overseas). The alliance would improve the topline of CNI Research Ltd.

Larsen and Toubro bagged a contract worth $431 million as part of an upgrade of two of Kuwait's three refineries for environment-friendly products.

ET reports one of the country’s largest banks, Canara Bank is reportedly eyeing an Indonesian bank to expand its international footprint.

Private sector bank IndusInd Bank has decided to sell up to 10 per cent of its existing equity capital.

The finance ministry today extended the service tax refund scheme for exporters to three more services : Goods transportation agencies and transport of export consignments by rail containers to sea ports, airports and inland container depots

News Snippets:

- Ranbaxy board approves de-merger of its R&D unit. The swap ratio has been fixed at 4:1.

- Reliance Capital gets RBI approval for ARC business.
- British Gas (BG) picks up stake in ONGC’s two deep water exploration blocks.

- M&M is targeting revenues worth US$3bn over the next ten years from deals in the defense space involving supply of land equipment systems to the armed forces.

- NTPC selects three foreign companies for a 40% stake in its renewable energy JV with ADB.

- Reliance Communications likely to place an order for 5mn set top boxes for its proposed DTH broadcasting venture.

- Bajaj Auto gets High Court approval for the proposed de-merger.

- Bhel and Alstom bids for 740MW gas power project by ONGC Tripura Power Corporation.

- BEML order book to increase by 25% this fiscal.

- Satyam Computers sets up a 350-seater delivery centre in Hyderabad.

- JSW Steel top increase its galvalume steel capacity to 0.6mtpa by October 2008.

- Tata Group invests an undisclosed sum in Singapore-based private jet operator, BJETS.

- UB Group to expand its product basket by launching about 80 wine brands including imported brands this year.

- BEML signs agreements with different companies to manufacture defence equipment in India.

- Bharat Electronics signs MoU with Israel’s defence equipment maker for making missile electronics and missile guiding systems for Indian military.

- Stand-alone tower companies such as Essar Telecom Tower, GTL Infra, Quipo, Xcel Telecom and TowerVision are planning to consolidate their businesses to compete with existing big three tower companies.

- Parsvnath Hotels, a subsidiary of Parsvnath Developers, has formed a JV with Royal Orchid Hotels which will develop ten hotels at an investment of Rs5bn.

- Biocon acquires majority 70% stake in Germany-based AxiCorp Pharmaceuticals for Euro 30mn.

- Patel Engineering in a JV with KNR Constructions has bagged a Rs2.1bn NHAI contract.

- Bhushan Steel sings an agreement with MP Government for setting-up coke and cement plants with an investment of Rs30bn.

- Coal India and IL&FS to form a JV to undertake project development for mine, power and other coal-based projects.

- 3i Infotech plans a JV with Chinese company for servicing its domestic clients.

- Sun TV to launch FM Radio stations in Kerala and Karnataka on February 20th and 21 respectively.

- Government may cut excise and custom duties on petroleum products.

- Rupee hits a 5-month low of Rs39.95 against the US Dollar.

- Large power projects including UMPPs may soon get a total duty waiver for purchasing equipments without going through international competitive biding.

- Railway freight earnings up 12.3% to Rs383bn in April’07-January’08.

- Finance Ministry extends the service tax refund scheme for exporters to include three more services - couriers, goods transport agencies and container transportation by rail.

Tuesday, February 19, 2008

YOU ARE LOOSING BY NOT SUBSCRIBING NOT ME

Add sheth_jg@yahoo.com on messenger or mail me to know more

The market is expected to open on a positive note today; traders are
advised to assume intraday long if Nifty manages to hold above
5300 for upside targets of 5380 and 5420 levels. Alternatively,
short positions can be assumed if Nifty fails to breach and hold
5400 levels with final stop loss placed at 5425 levels. Lower
supports of 5200 may as well be utilized to assume intraday
long positions

Nifty Feb futures have witnessed
closure of long positions; Feb futures have shed 1 lakh shares
in open interest with discount decreasing to 4.45 points from
11.65 points. The overall market has witnessed 0.90% addition
in open interest with average cost of carry at 1.67% suggesting
fresh build of long positions in stock futures. On the options
front, Nifty higher strike Call options have witnessed fresh
buying suggesting possible upsides from the current levels.

We have a moderately bullish view on Reliance; we recommend a Bull Call Spread strategy
o Buy One Reliance Feb 2700 CA @ 24 - 26
o Sell One Reliance Feb 2800 CA @ 14 - 16
o BEP: 2710
o Tgt: 2800
o Investment: Rs.48,000 (Approx)
o Time Frame: 6 - 8 Days

With lack of global cues Indian markets are likely to trade in a range with a positive bias. Yesterday's trade clearly indicates a tough fight between bulls and bears and the indecision is likely to continue today too.

A business newspaper reports that Indian tax department can now probe in Mauritius and this might act as a minor dampener to the sentiments. Coming to the positive front Government is likely to extend the sops for the 100% EOU's for another year. In another interesting development government today announced the issue of '7.95 per cent Fertilizer Companies Government of India Special Bonds, 2026’ for Rs 3,610 crore (nominal) to 23 fertiliser companies as compensation towards fertiliser subsidy during the current financial year. Chambal Fert, Magalore Fert, Nagarjuna Fert, RCF, Tata Chemicas, Deepak Fertiizers are reported to be eligible for the above mentioned bonds.

Crude continued to surge due to continued tensions between Venezuela and oil major Exxon Mobil. Cues from Asian markets are positive today with US markets closing on account of President's day. Midcap strength is a postiive sign and the big question is whether the small and midcaps take off??

We expect a pre-budget rally and technically crossing Sensex 19,250 is definitely a huge task. We do not see immediate resistances after Sensex 19.250 levels. There will be trading oppurtunities available today though taking quick profits is advisable to counter volatility. Have a great trading

Stock in news - Reliance Industries, NTPC, Essar Steel, India Bulls, United Phosporus, IT companies and other stocks hit headlines today


ET reports Reliance Industries is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund

Government is likely to extend income-tax incentives for 100% EOU's for another one year.

Indiabulls Financial Services launched chartered aviation services after successful foray into financial services, broking, real estate, retail and power ventures.

Essar Steel plans a 6-million-tonne slab unit in Brazil reports Business Standard.

NTPC is likely to partner MCX’s power exchange.

Fortis Healthworld, a Rambaxy group company has tied up with Godrej Adhaar to extend its reach to rural India.

United Phosphorus Ltd (UPL) has purchased 100% stake through its subsidiary of Evofarms group of Companies (Evofarms), a major Marketing Company of generic products in the crop protection industry headquartered in Bogota, Colombia.

Everest Kanto Cylinder has granted an In Principle approval for acquisition of all the assets of a large manufacturing Company in the United States of America in a similar line of business, for approximately USD 70 million

1.) Sesa Goa: has witnessed fresh accumulation of long position in yesterday’s session. The stock had
seen 9.88 percent addition in open interest along with increase in cost of carry from 9.66 percent to 14.28 percent.
The stock surged by 5.80 percent to close above it resistance of 3300 levels. Long position can be assumed in stock
above 3335 levels for targets of 3400 and 3450 with final stop loss placed at 3300
.
2.) Tata Steel: Tata Steel futures have seen 9.55 percent addition in open interest along with increase in cost of
carry from 12.87 percent to 16.89 percent indicating fresh build of long position. Long positions can be assumed in
stock if it sustains above 820 levels for immediate targets of 830 and 845 levels with final stop loss placed at 810
levels.

3.) STER: STER futures have witnessed addition of long positions in yesterday’s trade; the stock has seen marginal
increase in open interest with cost of carry remained flat to spot levels. Long positions can be assumed in stock from
lower support of 765 levels with final stop loss placed at 750 levels.

4.) Reliance: Reliance has witnessed closure of short position and fresh build of long position in yesterday’s session.
The stock has seen 1.70 percent addition of open interest with cost of carry turned positive -1.03 percent to 9.29
percent. Long position can be assumed in stock at 2520-2530 with final stop loss placed at 2495 levels for immediate
targets of 2580 and 2600 levels.

5.) BPCL: BPCL futures have witnessed fresh build of long positions; the stock has seen 1472 percent addition in
open interest with cost of carry increasing from -7.18 percent to -4.30 percent. Long positions can be assumed in
stock above 460 levels for immediate targets of 480 and 490 levels with final stop loss placed at 450 levels.

6.) ONGC: ONGC has witnessed fresh build of short positions; ONGC futures have witnessed 1.24 percent addition
in open interest along with decrease in cost of carry to -13.58 percent from -4.49 percent. The stock immediate
support placed at 1000 levels where one can witness short covering. Long position can be assumed in stock it hold
above 1000 levels for immediate targets of 1025 and 1040 levels.

7.) DLF: DLF has witnessed closure of long position on account of profit taking; DLF futures have shed -1.07 percent
additions in open interest with slight decrease in cost of carry from 7.65 percent to 3.39 percent. Long position can
be assumed in stock at 850 levels for upside targets of 865 and 880 levels.

Monday, February 18, 2008

Our BTST will rock today watch out ..........

Today picks - Rpower,Utv,JP Ass,
Join to know more Dont miss our call

Nifty started entering a bullish phase.. but now once again we need to always be
careful of higher level because of two reason...
==> Budget month
==> Nifty again coming near to the level of 5400. Where previously it found difficult to cross. But as of now this level as per the charts has increased to 5415.

On the upside I see a clear upword move upto 5415. 5415 should act as good resistance.If cross 5415 successfully and trade above it successfully can take Nifty to 5650 in few days

Dalal Street is expected to continue its upward journey on Monday morning. The cues from all the Asian markets are positive with Nikkei rising more than 1.3 percent. We see a positive overall with broad based buying across the board.

Mid Caps are likely to participate actively in the upmove, as they have been beaten down hard in the recent carnage. Some significant events that might be the talk of the town today are, bonus issue announced by ADAG to the shareholders of Reliance Power, RBI nod to IndiaBulls for setting up an NBFC and reports of Disney picking up a stake in UTV Software.Investment bank UBS has pegged the Sensex level at 22,600 by the end of the year.

We advise our visitors to hold on to the positions and given a chance add some quality companies to your portfolios. Unless some shocking news rocks the boat and dampens the sentiment, the markets are definitely looking healthier than ever in 200 Expect a 1.5 to 2 percent up move in the Sensex with select mid caps stealing the show

Stocks in news - Canara Bank, Gammon India, Ess Dee Aluminium, Orient Express, UTV Software and many more


Canara Bank, Gammon India, Ess Dee Aluminium, Orient Express, Reliance Power, PFC, UTV Software and many more stocks hit the headlines over the weekend.

Canara Bank is all set to enter the booming broking business, to launch online trading soon.

Ess Dee Aluminium is reported to acquire reeling India Foils soon.

Nicholas Piramal signs agreement with US-based Eli Lilly to develop and commercialise latter’s certain pre-clinical drug products.

Reliance Power proposes bonus shares to non-promoters, board to meet on 24th Feb

UTV Software is reportedly selling 17.15% stake to Disney for a whopping Rs.1300 crores

Gammon India is floating a logistics firm and is investing Rs 300 cr in the venture.

US equity firm Clear Trade is in talks with PFC to sell stake in $12-bn fund

Tech Reliance, the information technology company being floated by Reliance Communications (RComm) is likely to tie up with Accenture

Madras high court barred the sale and manufacture of its Flame motorbike, ruling to affect TVS Motors

JSW group is likely to foray into ports, airports & shipyards

Friday, February 15, 2008

Will Indian markets change gears?

Subscribe to know more add sheth_jg@yahoo.com

As we told you 2 days back when nifty was 4850, that certain signals are showing that we are on a bullish trend and you could see what happen after that Nifty at 5200
Nifty looks minor bullish for tomorrow as long as it stays above 5235, but the direction is not clear yet.
The only concern was global clues which are down,On the downfall nifty finds a support at 5180 and then 5120.
5120 should act as a very good support any break below this can target 4940 on nifty
On upside we find immediate resistance at 5235 break past this level can take Nifty to 5400

Pick No 1 - buy jai prakash (cmp 273.55) - Looks set for rally looks a good buy at this level or upto 276 keep a stop loss of 268. Final target and final stop loss only to clients.

Pick No 2 - wwil (cmp - 46.35) - Wits on its way for another breakout. Can buy around 46 - 47. Ideal stop loss would be 44. Final target and stop loss only for clients.
Indian Markets as usual with no local news will try to bank on the global news with bears trying to take advantage. But we started late how can we go down tamely? We do not expect any major losses in the Indices today though subdued movement with wild swings not ruled out. Sensex has gained nearly 1200 points in the last two trading sessions and it requires a consolidation. Huge short interest build up is a definite positive for the Bulls.

Power sector was in the limelight yesterday after beaten down due to the R Power debacle. Technology stocks which held their nerve in the last one month took a back seat yesterday. Pre-budget expectations are likely to start building up some time next week. Textile is likely to be the major beneficiary from the budget this year. As per a pink paper report Central Govt is expected to raise allocation to two key support schemes for the industry, the Technology Upgradation Fund Scheme (TUFS) and Scheme for Integrated Textiles Parks (SITP), in the coming Budget. Financial Technologies is likely to be in the limelight on the news that New York Stock Exchange (NYSE) will pick up 5% stake in Multi Commodity Exchange (MCX).

Financial Technologies, PFC, Pyramid Saimira, NTPC, Lanco Infra, Wipro, Renaissance Jewellery, Parsvnath Developers are the stocks that hit the headlines today.


Renaissance Jewellery aquires JBR Inc for Rs 160 crore. JBR Inc's major clients include US retail gaints like JC Penny, Sears and others.

Pyramid Saimira is reportedly in talks with a theatre chain in UK for a potential take over. The company is planning to raise $400 million in funds for the said proposal.

Power Finance Corporation Ltd (PFC) is planning to raise $4 bn in 2009.

Parsvnath Developers is likely to be the front runner for land facing Citigroup Inc.’s office in Mumbai’s Bandra-Kurla area.

Parsvnath Developers is one of at least three Indian developers considering bids for land facing Citigroup Inc.’s office in Mumbai’s Bandra-Kurla area, undeterred by the city doubling the reserve price, bowing to the pressure from the Ministry of Commerce.

NTPC is planning to invest $40 b over next 5 years to to spread out operations across Asia and Africa. The company plans to set up power plants abroad is eyeing a 50,000 MW-plus capacity by 2012.

Lanco Infratech is planning to set up one of the country’s largest wind turbines manufacturing facilities in Karnataka

Wipro Infotech has won a five-year Rs 200 crore worth IT outsourcing contract from Pantaloon Retail (India) Ltd

News Snippets:

LN Mittal and Farallon Capital invest Rs15.8bn for 28.6% stake in Indiabulls Power Services.

NTPC to invest US$40bn over the next five year, to transform itself into an integrated regional energy player.

Mastek likely to buy a US-based IT firm System Task Group International for US$30mn.

Satyam Computer to add 3,000 employee’s by March end.

L&T Infotech has put its IPO plans on hold.

L&T wins an order from Qatar worth Rs3.11bn.

Haldia Petrochemicals is set to buy L&T 51% stake in HPL Cogeneration.

TCS plans to reach revenue of US$800mn-US$1bn from domestic market.

IOC to launch its marine fuel business globally.

Nirma set to mop up Rs15bn via QIP.

BHEL gets Rs2bn order from ONGC.

Wipro Infotech bags US$50mn 5 year outsourcing contract from Pantaloon retail.

Spanco Telesystems acquires Great IT for an undisclosed amount.

Orchid Chemical gets US FDA nod for Granisetron Hydrochloride tablets.

Sun Pharma receives tentative approval from US FDA for generic Depakote.

DE Shaw Valence picks up 5.7% stake in Orient Express Hotels.

Wipro may buy a German based company in next 6 months.

Tata’s and Boeing enter into a JV, to outsource and manufacture defence-related aero space component work in India.

HPCL to shut gas oil unit at its Vizag refinery for 10 days.

Kirloskar Brothers is looking to buy a European based pump manufacturing and marketing companies.

Shree Cement plans to set up a cement plant of 2MT per annum at a cost of Rs20bn.

EID Parry buys 51% stake in Phytoremedies.

Jubilant Energy discovers Oil and Gas in Cauvery basin.

Maruti Alto has crossed 1mn production mark.

PFC to enter financial advisory services.
Economy Front Page

The Government hikes petrol and diesel prices by Rs2 per litre and Re1 per litre respectively.

Steel companies agree to roll back price hike with immediate effect.

The DoT plans to change spectrum usage charges levied on telecom companies, to a fix percentage of revenue for each category circles.

PM panel suggest reduction in import duty from 10% to 5% in machinery and introduction of mechanism for textile sector.

PM says Indian can sustain 9% GDP growth.

RBI denies a rate cut in short-term citing high inflation.
Agriculture ministry has proposed 1%cess on direct taxes and 2% on indirect taxes.

Export from IT and ITES based SEZ to double in FY09

Thursday, February 14, 2008

Valentine’s Day….No bears please!

Indian Markets ready for a blast, midcaps to join the feast.

See what we wrote yesterday.

Market likely to show positive movement from now on words. Some positive sign are ---

Market Oversold
FNO Low open interest
Budget around the corner
No more IPO


(How true we were in this)


Market still looking positive,Be careful at higher levels.

The immediate good resistance market finds between 4940 followed by 5020.On successfully crossing this level of 5020 market should test 5115 - 5130.Market find a good support at 4820 and 4740.

Indian Markets are likely to jump on the positive global news and this time we expect the midcaps to participate in the rally today after a likely hesitant start. IT, Media, Banks, Metals and Infrastructure are likely to participate in the rally with IT and Banks likely to fight for the leadership.

Andhra Pradesh Govt announced a reduction in sales tax on aviation turbine fuel (ATF) from the existing 33% to 4%. GOvt is likely to take a hit of Rs 50-60 crore, to be shared between the airlines. We expect majority of the states to follow suit. This is definitely positive for listed airline companies Deccan Aviation, Spice Jet and Jet Airways.

Satyam is reported to bag eight deals worth nearly $50 million. We are extremely positive on IT companies going forward. Though we do not have any resistance levels till 19,240 for Sensex a lot depends on today's session. A upside movement of 500-600 points on a closing basis for Sensex is likely to trigger more short covering and then followed by a pre-budget rally is likely to bring comfort levels to investors.

Reliance Industries on wednesday said it has discovered natural gas at a deepwater block in Krishna basin, which is north of country’s largest natural gas reserve Krishna Godavari (KG) basin. Today is likely to be a day-trader's paradise and we hope to see the smiles back

Pick No 1 - buy Essar Oil (cmp 184) - Clients already have a holding of it from 169 level. It still look good at this level of 184. Can look to buy with a stop loss of 178 for a good target of 19*. Full target only to clients,

Pick No 2 - Buy ITC (cmp 195.95) - Looks a good buy at this level ideal stop loss would be below 193. Momentum expected to get stronger once crosses 199 successfully. Final target and stop loss only to clients.

Stock in news
DLF Limited, Indbank, ONGC, Zensar, Mastek, ICICI Bank and many more are stocks in news today.


Indbank Merchant Banking opened first 'trading cafe' for stock trading in Chennai. It plans to open another 20 such cafes and 18 new branches during 2008-09 across the country.

ICICI Bank is reportedly getting ready to offload their non-performing home loans to the Asset Reconstruction Company (India) Ltd (Arcil).

Consumer products company Hindustan Unilever Ltd (HUL) reported its highest quarterly growth in the last nine years, with net sales growing by as much as 16.8% in the December quarter.

DLF bags title sponsorship rights of IPL Twenty20 at Rs 200 cr for a period of 5 years

Zensar Technologies, a Pune-based IT and BPO services firm is close to making two acquisitions in Germany and Switzerland.

Axis Bank became the first private sector bank to cut its benchmark prime lending rate (BPLR) 25 basis points to 14.75% effective thursday.

Mastek Ltd is likely to acquire two companies one company each in the US and UK. The company has set aside $40 million for acquisitions.

Russia’s Rosneft has expressed interest in participating in ONGC’s proposed liquefied natural gas (LNG) terminal in Mangalore. ONGC is planning to set up a five-million-tonne-per-annum LNG terminal at Mangalore

News Snippets:

Reliance Infratel commits to Rs78bn exports in eight years.

Elder Healthcare to market VLCC’s male grooming products.

HUL’s net profit rises by 24% yoy in quarter ended December 2008.

Jain Irrigation signs pact with Israel water firm Mekorot Water Company for infrastructure projects in India.

DLF wins title sponsorship rights of IPL Twenty20 for Rs2bn for five years.

Hero Honda expects flat sales for FY08 on account of financing issues.

NTPC’s US$250mn project in Sri Lanka to begin next year.

Gail signs pact with ITERA Oil and Gas Company of Russia for cooperation in hydrocarbon sector.

Jubilant Group to grow retail presence in southern cities.

Paramount Airways in talks to buy wide-body aircraft.

Bharti Airtel consumer base reaches 60mn.

Air India and Jet Airways plan to buy 60 Boeing wide-body aircrafts.

Gujarat State Petroleum Corporation (GSPC) seeks permission for exploration in Saurashtra-Kutch region.

Eicher Motors’ January 2008 sales decline by 17% yoy.

Satyam Computers may win eight orders worth US$50mn.

Ranbaxy Laboratories to consider turning its research unit into a separate company.

Parsvnath and Indiabulls Real Estate to jointly bid for 10 prime locations offered by India Railways.

TVS Motor launches its first electric scooter for an ex-showroom price of Rs32,500.

PVR enters into an agreement with Thailand-based Cineplex Group for lifestyle entertainment.

Tata Communication, formerly known VSNL, to invest $2bn over the next three years to expand its submarine cable business.

Essar Shipping board approved merger of Mauritius-based Indian Shipping with the company.

Axis Bank reduces its benchmark prime lending rate by 25bps and mortgage reference rate has reduced by 50bps.

Japanese major NEC Electronics selects Wipro for semiconductor design services.

Fitch Ratings and PNB signs a MoU for bank loan ratings.

Crompton Greaves acquires 40% stake in their Indonesian joint venture PT Pauwels Trafo for US$10.7mn.

Mastek to raise US$40mn to fund its acquisition in US and UK before June 2008.

Reliance Money commences operations on the Dubai Gold and Commodity Exchange from Wednesday.

NTPC agrees to invest Rs4.75bn in Ratnagiri Gas & Power to increase capacity charge.

Gail plans to complete natural gas pipeline project, Vijaypur-Dadri and from Dadri to Bawana pipeline in best 24 months.

Economic News

Mandatory for art funds to register with SEBI.

Exports from SEZs grow 200% in two years.

DoT to impose one time entry fee for all spectrum allocation beyond 6.2Mhz.

Chandrasekhar Bhave to takeover as next chairman of SEBI.

Steel minister and steel manufacturers to meet on Feb 14, 2008 to discuss possibility of partial roll back in steel prices.

Pharma industry seeks extension of export related tax incentive for another five years.

The six key infrastructure industries production slips to 4% in December 2007, less than half 9% achieved a year ago.

The Cabinet Committee on Political affairs likely to consider raising petrol and diesel prices today

Wednesday, February 13, 2008

ADAG PACK TO SHOW ITS FUN ??????

SUBSCRIBER'S WIll BENEFIT ADD sheth_jg@yahoo.com for paid service

Market likely to show positive movement from now on words. Some positive sign are ---

Market Oversold
FNO Low open interest
Budget around the corner
No more IPO

The market facing good support at 4740. On break of this we can see 4500.
The immediate good resistance market finds between 4930 - 4950..
On successfully crossing this level market should test 5020 and then 5070
Something which I would like to share with you got from... BUT FOR MEMBERS ONLY

Pick No 1 - Buy Unitech (cmp 309.5) - Looks good at this level. can take stop loss at 304. Good for intraday and also good for positional. Final target only to clients. Clients will be informed about the final target and stop loss through SMS only.

PICK NO 2 - BUY HDFC BANK - Clients will be informed about the final target and stop loss through SMS only.

SEBI is reported to be considering to implement circuit filters for the stocks traded in the F&O segment. SEBI should have proactively come up with this solution last Novemeber when we started witnessing 50% gains in stocks traded in F&O in a single day. Better late than never.

Media stocks appear to have bottomed out compared to other sectors looking at the trading patterns yesterday. Likes of Balaji Tele, Sun TV, UTV Software, Zee Enterprises have gained in a choppy trade. Other prominent gainers yesterday include Axis Bank. Nitin Fire, Reliance capital, Educomp solutions.

Markets are expected to open in green today and the trade is likely to be choppy with bouts of volatility. As mentioned number of times long term investors are adviced to pump money into the markets. There will be no better times than these to invest in Indian Equities. Pre-budget rally along with short covering is imminent and likely to emerge in the next 10 days though the magnitude of the upmove might be less.

STOCK IN NEWS
India Infoline, UTV Software, HDFC Bank and other stocks hit the headlines today.


HDFC Bank has signed a $7.4 million deal,spanning three years with Symantec for IT compliance, enterprise security and storage management solutions.

UTV Software as per reports finalized the strategic partner for its broadcasting venture.

India Infoline will be raising Rs 555 crore through allotment of 37 lakh shares on preferential basis to Orient Global Tamarind Fund Pte Ltd, a Singapore-based private investment company

PVR bounced slipped 3.5% to Rs227. The company agrees to entertainment venture with major Cineplex group. The scrip touched an intra-day high of Rs242 and a low of Rs224 and recorded volumes of over 3, 000 shares on BSE.


News Snippets:

Bajaj Auto says the feasibility study on a possible JV for its small car project would be completed by early March.

NTPC is in talks with GE, Kyushu Electric Power Co. of Japan and Brookfield Power Corp of Canada for a JV in renewable power generation.

M&M to sign a pact with Sri Lanka government to set up US$100mn IT SEZ.

TCS plans to reorganise its global operations into integrated, customer-centric units to enhance customer focus, drive operational agility and address growth opportunities.

L&T bags Rs14.4bn order from Netherlands to supply eight lift vessels.

Domestic airlines to increase air fares, in anticipation of a steep 40% rise in airport charges in Bangalore, Hyderabad, Delhi and Mumbai.

IOC will invest Rs35bn to lay 2,080 km crude oil and petroleum product pipeline by 2011-12.

JSW Steel is focusing on improving efficiency and profitability levels of the three companies it acquired recently in Texas, US.

ICICI Bank, HDFC Bank and IDFC in the race to acquire Sabre Capital's stake in Centurion Bank of Punjab.

Indus Tower, a JV between Bharti, Vodafone and Idea to tap capital markets in 3 years.

Thermax is strengthening its presence in the water treatment business; plans to look at opportunities in cities, SEZs and municipal facilities.

Thermax enters into a technical collaboration with Babcock & Wilcox Power Generation Group to foray into utility boilers of up to 800MW.

NMDC is expecting iron ore prices to gain up to 50% by April 2009.

Asset Reconstruction Company (Arcil) has disposed of Rs39.2bn of securitised bad loans portfolio to Deutsche Bank.

Kingfisher may replace Deccan’s peak-hour flights on metro routes as part of the route rationalization program.

Air Deccan and Kingfisher swap deal to be finalized by April.

Indo Tech Transformers has commissioned a plant to manufacture 220Kv and 400Kv class power transformers near Kancheepuram.

McNally Bharat wins an order worth Rs6.9bn from SAIL.

Pipavav Shipyard will deliver its first Panamax vessel to a Greek firm by March 2009

GMDC plans to set up three plants to generate 4,500MW and invest around Rs200bn.

Wockhardt to launch Azithromycin anti infection tablets in US.

Hinduja Group plans to set up 1,600MW power plant in Vishakapatnam.

Vivemed buys UK based company for US$21.1mn.

Pyramid Samaria to acquire a UK theatre chain company.

Economic NEWS:

CBDT has sought an amendment to Section 115 AD of the I-T Act so that all FIIs pay capital gains tax on their profits in India.

The steel ministry’s meeting with major steel producers on price cut ended inconclusively. The two sides are expected to meet again.

The FM has asked PSBs to implement the interest-free loan package for sugar mills in letter and spirit and submit a report by Feb 22.

The government has told TDSAT that it would allot spectrum to all players with LoIs for starting telephone services, but a lot depends on defense services vacating radio frequencies for civilian use.

The FM has asked PSBs to lend more to housing and consumer durables borrowers at affordable cost.

RBI may regulate currency futures trading.

IIFCL may get US$250mn from forex reserve for funding infrastructure.

Government may use forex reserves to create price stabilization fund for petroleum products.

Container freight rates from Indian ports to key European ports will increase by US$100 per TEU from March 1.

The finance ministry has proposed withdrawing direct tax benefits to offshore banking units (OBU) on the profits earned from SEZs.

India’s exports to the US in steel containers fell 5.7% in the first 11 months of 2007 over the same period in 2006.

Finance ministry is considering cutting duty to 8% from 16% on packaging material.

Tuesday, February 12, 2008

Our strategy quick buying and quick selling

LOTS OF OTHER INTRA-DAY , BTST CALLS FOR OUR SUBSCRIBER'S ONLY

WATCH R POWER OUR BTST

Watch the level of 4740 today break below successfully can create panic and can show 4400 in short term be careful

Market to be good should at least stay above 4900... around which resistance is seen
Successfully trade above this can take us to 5020 and then 5070 and then 5143 - 5170
As I always say technically the market has not given clear trend yet. So be careful at higher level.

Indian Markets are highly underperforming the global markets from the last one week. Reports of huge FII selling in the Futures & Options segment last week just added fuel to the fire. Reliance Power took the blame for yesterday's carnage but we simply see that as an excuse.

Why Mondays are chosen for hitting the nail in the coffin?

BSE Sensex lost more than 800 points three times in less than one month. Jan 21st, the first time when the markets went down coincides to be a Monday and so is yesterday. Taking the oppurtunity of limited global cues the market players ideally chose Monday or US Market holidays to tune it accordingly. Feb 18th(US Market holiday) is another day to watch out for and the players will try to use Feb 18th and Feb 19th trading days to their advantage. Might be a coincidence Jan 21st is a US market holiday and Jan 22nd too market tanked more than 800 points.

What made the world change their view on India?

There is absolutely no change in fundmentals except for marginally low GDP estimates though analysts and media always try to take reasons for the slide.
But lack of buying interest from all corners is taken to advantage by the players. Though buying do not come informed and bottoms cannot be predicted medium term investors should start buying stocks at these highly attractive levels. Lets take the example of Adlabs Films, during euphoria one was ready to pay Rs.1945 on Jan 07 2008 for this stock and now there is no buying support even at Rs.850 levels in less than one month.

What to look forward?

Investors should neglect these carnages and pickup stocks from the secondary market. Indian Govt. should encourage retail investors to start investing in the domestic stock markets to avoid dependance of FII's. Markets are likely to open weak only to recover in the later part of the day

Stock in News
IFCI, Biocon, SBI, Vivimed Labs, DLF Limited, TCS and many more stocks hit the headlines today.

Hyderabad based Vivimed Laboratories is acquiring James Robinson, a speciality chemicals manufacturer and subsidiary of UK-based global chemicals major Yule Catto & Co

DLF Ltd delayed listing a $1.5 billion property trust in Singapore by 3 months and expects the IPO to be launched in the second quarter of this year.

J Kumar Infraprojects, will be listed on the Bombay stock exchange today. The scrip code of the stock is 532940 and admitted to dealings in the 'B1' group.

Biocon Limited has picked up 70% stake in German pharma co AxiCorp for 30 million Euros

IFCI, is looking forward to re-structuring after calling off sale of 26% of its equity. The company is reported to be on look out for an angel investor and is willing to offer VRS to cut costs.

State Bank of India has cut prime lending rate by 25 bps. The rights issue of SBI will opens February 18 and closes March 18. Canara bank too has cut the prime lending rate by 25 bps.

Tata Consultancy Services, outsmarted many analysts , to hike pay by 15%, starts 2nd Hyd centre with 8,000 employee capacity, and is likely to hire 22,000 freshers

News Snippets:

The Bombay High Court will hear RIL-RNRL dispute on gas from Feb 25.

SBI and Canara Bank have cut their benchmark prime lending rate by 25bps.

Gayatri Projects is planning to offload up to 49% stake in its newly formed holding company Gayatri Infra Ventures Ltd.

Reliance Technology Ventures, a 100% subsidiary of Reliance Capital has acquired a 10% stake in French Wi-Max chipmaker Sequans Communications.

Nicholas Piramal is planning to become a leader in diagnostic products in the domestic market over the next two years.

Deccan is likely to scale down its metro operations. It has launched daily flights connecting Mumbai to Indore, Vishakhapatnam and Lucknow.

Vivimed Labs is acquiring James Robinson, a subsidiary of UK-based global chemicals major Yule Catto & Co.

Kingfisher Airlines will operate international flights between Bangalore and San Francisco, Bangalore-New York and Mumbai-London flights from August.

GHCL Global Sourcing, a 100% subsidiary of GHCL, has set a business target of over US$1bn in FY09.

SBI has received government approval to allot shares to its staff at Rs 1,590 a share, or the price of the bank’s rights issue offer.

Allahabad Bank plans to raise Rs3bn of perpetual bonds before end-March.

Everonn Systems has acquired Patna-based Toppers Tutorial that operates in the IIT-JEE and AIEEE entrance exam space.

Kansai Nerolac Paints has lined up a total of 45 ‘Impression Style Zones’ in Chennai, Bangalore and Hyderabad in six months.

NTPC has initiated a move to place letters of award for five projects with a total capacity of 5,300 mw.

Escorts Construction Equipment will enter the earth moving equipment business in FY09

IOC plans to invest Rs90bn on improving the quality of petrol and diesel.

Bank of India may acquire a mid sized foreign bank in the next 2-3 months.

ICICI Bank plans to sell its small ticket personal loans portfolio worth Rs20bn.

DLF expects to list its US $1.5bn property trust IPO in Singapore in the second quarter of this year.

Reliance Industries and ONGC may not get special R&D status for their 17 blocks in the K.K. basin.

The delay in forest clearance for Reliance Power’s Sasan project has impacted a related transmission project to be built by Power Grid Corp.

Indian Overseas Bank may cut select lending rates by up to 25bps, but will wait till March to reduce deposit rates.

Arcelor Mittal India has got provisional approval from the Orissa Government to acquire 7,750 acres of land for its steel plant.

Economic News

GSM based mobile industry added 6.19mn users in January, taking their total mobile subscriber base to 178.4mn.

The Indian biotech industry is set to grow and occupy 140 million square feet by 2010

The vanaspati industry has sought customs duty at Rs4,000 per ton for import of crude palm oil.

The DoT has mooted a proposal for increasing additional spectrum charges and has also suggested slashing of one-time fixed spectrum charges.

China is ready to join Pakistan and Iran to build a pipeline and purchase Iranian gas if India does not participate in the project.

The Tamil Nadu Government plans to incentivise industries to utilize captive power production units.

The current defence market for private sector firms in India is estimated to grow by 7% annually from the current US$700mn by 2010.

Power ministry has sought the Prime Minister’s intervention to get natural gas from PMT fields for NTPC’s power plants.

The aggregate revenue of the IT-BPO sector is expected to grow 33% to US$64bn in FY08according to Nasscom.

The Government is considering a proposal to have a representation of the steel ministry with the ministry of mines while allocating iron ore mines.

The finance ministry has said that exemption from STT should not be provided in the case of International Financial Service Centres.

Monday, February 11, 2008

Reliance Power to "Shock" or "Rock

JAN MONTH LOSSERS DONT MISS THE LAST OPPORTUNITY.BECAUSE THIS WEEK MKT VERY IMPORTANT TRADING FEB 11 AND AFTER SO SUBSCRIBE NOW

Asian markets continued to plunge on Monday morning with Austrialia dropping 1.7% on the Central Bank warned of higher inflation, raising fears of increase in interest rates. Kospi, the South Korean stock exchange plummetted 3,6% while Singapore is currently trading down 1%. Japanese markets are closed today

Listing of Reliance Power is the major event, the market is looking for a direction from the last fortnight. Indian Markets are simply following global markets or at the behest of FII's, trying to build major short positions in the absence of coutner buying from MF's and domestic Institutions, with many preferring to sit on the sidelines. We believe Reliance Power to list at a premium of Rs.100 - Rs.130 and might go either way. It is definitely hard to pick the direction and with the kind of sentiment the market is witnessing the odds are in favour of bears but given the "Power" of Reliance it would be too early to take a call.

Midcap stocks are beaten down the most giving more and more opputunities for medium to long term investors. This market is definitely not a trader's paradise but a long term investors blessing in disguise.

As I always say technically the market has not given clear trend yet. So be careful at higher level.I don't mean to book profits at higher levels but keep trailing stop loss.
On the up move I see a immediate resistance at 5143 and 5175.. watch these levels.
Once we are able to successfully break and trade above for 5175 for few minutes we will be able to see 5380 - 5400 on screen.On the downside support is seen 5070 and 5020.5020 is consider to be good support. If this break then we could see 4900 on screen.We expect positive move then selling . Our strategy quick buying and quick selling.

STOCK IN NEWS - Indiabulls, Moser Baer, Essar group, Bank of India, SCI, Geojit, Gammon, Tata Motors and many more stocks hit the headlines today.


Tata Motors is likely to export Nano to Europe in 4 years.

Geojit Financial Services is likely to hive off commodities business in a bid to let BNP Paribas buy stake in financial firm.

World's Largest Manufacturer of Optical and Magnetic Storage Moser Baer is planning to invest $1.5 bn in solar power

Shipping Corporation of India (SCI) is planning to foraying into logistics space, to buy eight carriers.

Gammon Infrastructure, a subsidary of Gammon India Ltd has decided to proceed IPO despite of negative news flow from the primary market

PSU bank Bank of India is planning to acquire a overseas bank, to foray into insurance and Mutual funds.

Essar group is likely to foray into financial sector soon with interests in asset management to broking and insurance.

Promoters of Indiabulls Financial Services increased their stake from 20.32 percent to 27 percent from the open market

News Snippets:

The RBI is not in favour of the government subscribing to the SBI rights issue through bonds.

ONGC plans to offer 22 marginal fields, mainly onshore, in current calendar year to service contractors for development.

DoT has approved the government’s proposal to auction the surplus land of VSNL worth over Rs100bn.

The government may rule against Eicher Motors in its attempt to invoke Press Note 1 to stop the Daimler-Hero group JV.

Reliance Communications to invest Rs8bn to enhance its managed global Ethernet services footprint for enterprises.

Textile and apparel manufacturer Raymond plans to set up 950 stores across the country by 2010.

SCI plans to spend US$500mn for acquisition of bigger vessels.

Tata Steel has consolidated its stake in Tata Metaliks to over 50%, making it its subsidiary.

Ceat will invite international players as equity partners for its two greenfield projects costing Rs8bn.

Coal Ventures International, the PSU coal SPV, is likely to secure its first block in Mozambique.

Rural Electrification Corporation plans to raise US$200mn from export credit agencies in overseas markets.

The Hinduja group and ONGC Videsh hope to reach a general agreement with Iran to develop oil and gas fields in that country.

Aditya Birla Group is planning to form a JV with a foreign company to make products for the export market.

Usha Martin has entered the realty business with a new unit Usha Breco Realty Pvt Ltd.

Tata Power plans an entry into the infrastructure sector.

ACC has transferred its ready mix concrete business to a wholly-owned subsidiary ACC Concrete Ltd.

The K Raheja group has shown interest in setting up a Rs10bn IT park in Orissa.

Tata Motors takeover of Jaguar-Land Rover may be delayed as labour union of the target companies raised concern over employment security and future of the brands.

Economic News

The Union Budget may reduce the dividend distribution tax rate from 15% to 12.5%.

The industry sold 113,899 cars in January, registering a 9% growth as compared to last year.

Government says it would no longer permit new IT units to be set up within industrial parks.

The Sixth Pay Commission estimates 150% salary increase for civil services.

The RBI is planning to bring in new risk disclosure norms for banks selling forex derivatives products to corporates.

DoT has indicated that it is open to the idea of auctioning of 2G radio frequencies.

TRAI may set FDI norms for broadcasting and cable services.

Government may allow FDI in specific retail sectors if an expert body foresees no impact on neighbourhood stores.

The ministry of shipping, road transport and highways has proposed a Rs12bn fund to upgrade highways.

Government de-reserves 79 items from the SSI list.

Commerce Ministry has opposed FTA with China until it becomes a market economy

Friday, February 8, 2008

Market Offers FLOWER'S One Day & Second Day ?

JAN MONTH LOSSERS DONT MISS THE LAST OPPORTUNITY.BECAUSE THIS WEEK MKT VERY IMPORTANT TRADING FEB 7 AND AFTER SO SUBSCRIBE

LOTS OF OTHER INTRA-DAY , BTST CALLS FOR OUR SUBSCRIBER'S ONLY

We may see 5030 – 4950 on Nifty if turn negative again after positive opening. The
best advice FnO traders can get at this point of time is not to indulge in right now since as said earlier confusion is keep the markets choppy and the SL's can get hit on both sides.BE IN CASH

Stock In News

Tata Chemicals limited is planning to sell nearly 14% stake in Tata Investment Corporation (TICL) to Tata Sons for around Rs 300 crore to fund the recent US $1bn acquisition.

Anil Ambani owned ADAG increased its stake in Deccan Aviation to 10.76% from a mere 3% in September.

Marg Ltd, the Real estate and infrastructure company today announced the launch of its massive project comprising two notified SEZs spread over 612 acres near chennai

Hyderabad based steel manufacturer Sujana Metal Products is planning to triple the capacity to 1 million tonnes.

Vijay Shanthi Builders Ltd is planning to invest around Rs 800 crore in various residential projects in and around Chennai.

Hot Pick - Air Deccan

We believe in reports of a US based FII triggered basket selling in the Nifty components, resulting in a unidirectional move in the indices in the noon session. Such a unpredicatble downsides with out events orginate from this kind of selling which creates panic among investors. More rumours started hitting the street with many analysts talking with a bearish tone and huge downside targets. We stick to our midly bullish view though run away rallies are difficult to originate overnight

Central Statistical Organisation pegged the growth in the current fiscal at 8.7%. Meanwhile FM is still confident about 9% economic growth. Govt. spending is key for the economy to counter any slow down in growth. And we expect the spending to increase with infrastructure likely to take the major pie.

Many momentum stocks suffered yesterday due to the swift drift in the indices. Many midcaps are at attractive levels and it is definitely time to shop slowly but surely. Reliance Power IPO refunds started pouring in and we may see the same flooding into the secondary markets.

FIIs were net sellers of Rs8.6bn (provisional) in the cash segment on Thursday. At the same time, local institutions were net buyers of Rs2.31bn. In the F&O segment, they were net sellers of Rs2.67bn. On Wednesday, foreign funds pulled out Rs5.28bn from the cash segment. Mutual Funds were net sellers of Rs2.12bn in the cash segment on Wednesday

News Snippets:

Mcnally Bharat plans to invest Rs2bn over next 15 months for heavy engineering and forging unit in West Bengal.

Nicholas Piramal to sell hypertension device in India manufactured by Israel’s InterCure.

ArcelorMittal applies for iron ore mines in Orissa and Jharkhand.

NTPC forms JV with Bharat Forge for manufacturing castings and forgings for power plants at an investment of Rs30bn.

Ennore Foundries to invest Rs3.5bn for doubling capacity to 220,000tpa by 2010-11.

Sintex Industries plans to invest Rs2bn in pre-fabricated segment.

Reliance Infratel to erect 56,600 towers by 2010.

Ispat Industries to spend US$115mn on African blocks.

Vakrangee Software to invest Rs2bn in setting up digital printing centres in 10 cities by 2010.

Indiabulls Real Estate buys out DLF’s stake in Kenneth Builders.

Kingfisher Airlines plans to float its own dedicated cargo airline through tie-up with foreign company.

ONGC’s helium unit in Tamil Nadu to go on stream soon.

PNB Housing cuts home loan rates by 50bps.

NTPC revises plans to develop wind power project with generation capacity of 100MW from original 50MW.

Tata Chemical plans to raise up to Rs3.25bn by offloading investment in Tata Investment Corp. (TICL) to Tata Sons.

Suzlon Energy’s wholly owned subsidiary, SE Drive Technik Gmbh, forms JV with Re Power Systems AG, Germany.

Reliance Retail plans to set up 1,200 ‘Reliance Wellness’ stores in India at an investment of over Rs30bn in 2-3 years.

George Soros picks up 3% stake in Reliance Entertainment for $100mn.

UTV Toons, animation division of UTV Software to be merged with the UTV Motion Business.

Sujana Metals to invest Rs16bn to treble its capacity to 1mn tons till 2010.

Bharti Airtel and VSNL seek a ‘crisis observance code’ to ensure that operators access each others' infrastructure in crisis situation.

ADAG hikes its stake in Deccan Aviation to 10.76%.

Indiabulls Real Estate picks up stake of DLF in Tehkhand residential project at South India.

Tata Motors officials to meet JLR union unite on Friday to discuss Pension, Job security and other concerns.

Economic NEWS :

Cabinet clears railway line electrification along 801kms network in east Bihar and North East India by 2012.

Union Cabinet approves Rs437bn outlay for national projects under Accelerated Irrigation Benefits Programmes during the 11th Plan

Losses of PSU oil marketing companies double in three years on account of under-recoveries.

SEBI signs agreement with French (AMF) Autorite des Marches Financiers for mutual regulatory understanding and exchange of information.

A parliamentary panel on Petroleum & Natural Gas to discuss the issue of fuel price hike today.

Government plans to increase the corpus of the Rural Infrastructure Development Fund (RIDF) by Rs20bn to Rs140bn.

Government to consider cutting down land requirement of UMPP by up to 40% in a phased manner.

Steel Minister to meet with all intergraded steel producers on Feb 11 to discuss downward revision of prices

Thursday, February 7, 2008

Above 5200 we can see 5700 by next week

NEW SITE LAUNCHED TODAY
http://www.freewebs.com/jgs-investments/index.htm

LOTS OF OTHER INTRA-DAY , BTST CALLS FOR OUR SUBSCRIBER'S ONLY

Watch for Power stocks and fertilizer stocks are expected to continue the rally. IT stocks should see some pressure. With budget round the corner downsides are capped and we have our Support level for Sensex at 17,240 levels.

Indian Markets though went down yesterday but we take few positives from the trade. Many stocks stopped moving with the market, given the cheap valuations. Midcaps are looking strong enough for two reasons.

1. Midcaps did not participate in the last 1000 point Sensex pull back rally
2. Relatively cheap valuations

Markets are likely to trade in a range today too but we might see euphoric moves from the midcap segment. Power stocks are likely to welcome the entry of Reliance Power next monday. These are no doubt difficult times and investors are adviced to reduce expectations on the returns given the bull run in the last 4 years. Irrespective of US recession few sectors are likely to race ahead. We strongly believe India will be least affected by the US recession.

Stock in News

Glenmark, Ispat Industries, MRPL, GMR Infra, S Kumars Nationwide, Reliance Industries, Mid-day, Petronet LNG are few stocks that hit the headlines today


Glenmark Pharmaceuticals has received a milestone of USD 15 Million from Forest Labs, which is Glenmark's North American partner for Oglemilast

Petronet LNG is actively pursuing to pick up equity in liquefaction terminals in West Asia and Australia.

Mumbai based Mid-Day Multimedia is selling printing, publishing business to its unit at a price not lower than Rs 17 Crores

Reliance Industries is likely to enter realty space in a big way.

S Kumars Nationwide's retail unit Brandhouse Retails Ltd is likely to expand its total network of stores to 400 by the end of this year and to 1200 stores by FY 2010

GMR Infrastructure acquires a cyprus company Delridge Ltd for an undiclosed amount.

Ispat Industries Ltd is actively buying coal blocks in Africa

MRPL & SHELL enter into Joint Venture in Aviation Fuelling Business

Elgi Equipments Ltd has decided to open wholly owned subsidiaries in Sharjah and Brazil.

Jaypee Group will enter into a joint venture with Thailand’s Six Sense Spa for setting up a Rs150 crore resort at Greater Noida


News Snippets:

A nine company consortium including Bharti Airtel and VSNL, will build a high capacity fibre optic submarine cable from India to France via Egypt and Italy.

IOC may seek board approval for its Rs50bn Haldia paraxylene plant. (BL)

L&T plans to invest US$5bn on power generation business; targets 5,000MW capacity in next five years.

SCI may invest US$800mn in its shipbuilding foray.

Tata Motors subsidiary, TAL Manufacturing Solutions, to make floor beam for Boeing’s 787 Dreamliner aircraft.

Ispat Group has acquired two coal blocks in Mozambique.

Arvind Mills may demerge its brands and apparel retailing businesses in to separate companies.

Mundra Port to invest Rs100bn to raise cargo capacity.

Ranbaxy Laboratories gets US FDA approval to manufacture and market a paediatric drug.

Vedanta plans Rs60bn plant in Bengal.

Tata Group plans to foray into retail broking business.

Mercator Lines to acquire three dredgers for US$100mn in the next six months.

Central Bank of India may reduce retail loan rates by 50bps.

Sintex Industries raises Rs6bn through a QIP issue.

Vijaya Bank may acquire a bank in northern or western India.

Bhushan Steel to invest Rs260bn to build a 12mn tons capacity in West Bengal, Jharkhand and Orissa.

ICICI Bank is not likely to cut interest rates in near term

Maruti Suzuki India to export 250,000 cars from Mundra port.


Economic News:

3G licenses could raise US$5bn for the government in the first year itself.

The Union Cabinet is unlikely to hike fuel prices this week.

According to the Director General of Hydrocarbons (DGH), India has 2,000 tons of cubic ft gas hydrates pool.

The Government may cut excise duty on power equipments and other inputs from 16% to 8% in the upcoming Budget.

India’s domestic Information Communication Technology market may reach US$24bn by 2011, according to Gartner Inc.

The Government seeks $500mn ADB loans for Indian Railways expansion plans.

The Government may consider a profit reserve plan to offset losses incurred by exporters due to rupee appreciation.

Airport hotels in Delhi may miss the November 2010 target.

Stationery goods, electrical appliances and 46 other products may be removed from small scale industries list.

TRAI likely to recommend more FDI in FM radio segment.

Wednesday, February 6, 2008

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OUR STBT - NIFTY

We will see gap down nearly 200 points , but with volatile session through out the day. Trade carefully

On downside I see a support existing 5413 - 5400 , 5363, 5240 and finally 5143

Among all the supports above 5413 - 5400 and 5143 are the strong supports, and especially 5143 is not expected to be broken.

On the upside 5575 should comes a first hard resistance break of which can take us to next hard resistance of 5680.

Indian markets are likely to open weak on the above mentioned cues but likely to recover. We strictly advice investors against going short on the market. Though we do not expect any positives from today's trading we are not with the bears. Markets are likely to recover after the initial dips.

Three reasons : Why dont we expect a recovery ??????

1. We do not see excessive positions in the F&O segment.
2. Reliance Power IPO refunds, likely to enter primary market will support the market.
3. Midcaps are already reeling and there is limited scope for down side from these levels.

As mentioned many times these are tough times and only patient investors can survive. While sticking to our 60-40 odds in favour of no recession we want to play purely on Technicals. In our earlier review we mentioned Dow Jones need to cross 12,750 level and should close two times above the same. Now we see a minor support at 12,150 level for Dow Jones and the final major support level of 11,940. After that level we cannot imagine the plight of equities.

Reliance "Power" is likely to arrest the downfall. Very few die hard bulls will place their bets on a limited fall in the Indian indices and we are few among them

Pick No 1 - Buy NTPC - Stock is currently trading at 223.10. Looks good at 208 level for both intraday and positional keeping a stop loss of 199 for intraday and for positional . Remember opening is expected to be negative tomorrow so just don't hurry up and trade wait for the market to settle first. Final target and stop loss only for clients. Clients will be informed regarding this through SMS.

Pick No 2 - Buy DISH TV - Stock is currently trading 69.90. Looks good at 65 level to buy keep a stop loss of 62 and buy. Remember opening is expected to be negative tomorrow so just don't hurry up and trade wait for the market to settle first. Final target and stop loss only for clients. Clients will be informed regarding this through SMS

STOCK IN NEWS

IT bellwether Tata Consultancy Services Ltd(TCS) laid off nearly 500 employees citing performance reasons.

Indiabulls Financial Services is planning to hit Singapore stock exchange with an IPO of $1.2 billion

Reliance Communications is likely to tie up with sweedish based GPS service provider Wayfinder Systems.

Sources say MTNL- BSNL merger is likely to proceed in the next month

HCL Technologies is all set to bad a one billion dollar outsourcing deal from a global major.

Suzlon Energy bags order for wind turbines from an Australian company.

SBI tied up with Tata Power for Rs 4,450 cr power plant

L&T is on the look out for a mega shipyard location, to build ship engines
Hyderabad based Prime Focus ties up with Warner Bros MPI

Oil exploration company Deep Industries is likely to join hands with IOC to develop and market gas

Crisil limited is reported to be in talks with US based Equifax and Tata Capital, a Tata group firm to form credit information company.

Ceat limited is on the verge of selling the 32 acres of land at Bhandup, a Mumbai suburb for nearly Rs.100 crores

Tuesday, February 5, 2008

Everyone , Minting Money in Tons.

OUR TRADING CALL OF WIPRO ALSO FLARED AND HIT 473 MARK, MARVELOUS GAIN OF RUPEES 36, WE HOPE U ENJOYED BEYOUND YOUR IMAGINATION.

OUR TRADING CALL OF MCS HIT 5% UPPER-FILTER $ MANY MORE
LOTS OF OTHER INTRA-DAY , BTST CALLS FOR OUR SUBSCRIBER'S ONLY

WE ARE TRYING HARD TO DELIVER GOOD FUNDAMENTALLY + TECHNICALLY SCRIPS IN FRONT OF YOU , EVERYDAY !!!!!!!!!!!!!

It's an Excellent Trading Call for You !!!!!!!!


US Market shall be effected by the result of Labor Market report and that shall also effect on Indian Market on Tuesday. Now things are on record for American market are in closed in red. And following the same trend major Asian Markets has opened in red which is going to effect Indian Market too.
If Asian markets continue in red till the opening of Indian markets it is possibility that Indian markets may open with a gap of 200 pts in negative.

For the day best support for the Indian sensitive index is 18434.00 /18202.00. And the best resistance is 19351.00.

Market closing above 5400 giving us a first sign of bullishness.on the down side Nifty first support exist at 5400 followed by 5330 and 5256.If by any chance we happen to break 5256 then a panic will be created which can lead nifty to 5064.
On the upside I see a strong resistance kept around 5560 which even we have mention yesterday and the nifty was unable to cross that.
If we happen to break 5560 and trade successfully there then next super hard resistance kept at 5690.
Trading strategy for today, Our market looks strong but for today every gain in market will be accompanied by profit booking. Market is expected to be range bound

Pick No 1 - Buy Hindustan lever (bse code 500696) cmp 211.9_ - Buy this Stock at the CMP around 210 - 212 with a stoploss below 208.4. Final target and stoploss will be updated to clients through SMS.

Pick No 2 - Buy Pidilite (BSE code 500331). Buy this stock at CMP of 182 with a stop loss below 177 for a good upmove. Final target and stop loss will be updated to clients through SMS

Indian Markets had a dream run in the last two days gaining nearly 1000 points. Reliance Communications lead the rally yesterday on the IPO news of the Tower company. We believe majority of the telecom companies are trying to unlock the share holder value by de-merging their towers business. Infrastructure and realty stocks was clearly yesterday's leaders in the market. We are not bullish on this space except for one or two stocks.

Hyderabad based IT company Prithvi Information solutions bagged a huge order worth Rs 309 crores. The company has tied up with China-based Huwei Technologies, to source the equipment. The stock recently witnessed fund buying.

Steel ministry is reported to be looking into the price hikes by many of the operators. IT Stocks, mentioned in our reviews from the last couple of days logged in good gains. Rolta jumped 23% yesterday on the rumours of a major defense order. We expect the Sensex to trade with in 100 point band on either side today. Midcaps and small caps might continue the upward journey

Stocks in news include Cadila Healthcare, Zylog Systems, SEL Manufacturing, GVK Power and many more

Cadila Healthcare enters into a 3 year deal with Karo Bio, a sweedish drug discovery and development company specializing in nuclear receptors.

State owned Bharat Petroleum Corporation Ltd (BPCL) is pursuing plans to set up a separate bio-diesel company.

Hyderabad based GVK Power & Infrastructure Ltd (GVKPIL) is planning to bid for airport projects in Europe and America. The company currently runs runs Mumbai’s Chhatrapati Shivaji International Airport

Information & Broadcasting (I&B) department has given nod for IPTV to Cable TV players.

Chennai based software solutions provider Zylog Systems has invested around Rs 65 crore to establish two offshore development centres in Chennai.

SEL Manufacturing limited, the buzzing company is planning to set up Rs 650-cr technical textile facility.

Prithvi Information Solutions bagged a Rs 309 cr order from government owned BSNL.
Chennai based Accel Transmatic has created a motion capture facility at Thiruvananthapuram and is now building an animation facility in Chennai, with an estimated cost of Rs 50 crore. The company currently holds orders worth Rs 85 crore and more in its pipeline.

MindTree Consulting Ltd has opened an office in the Dubai Airport Free Zone. This will enable the company to consolidate itself in West Asia.

Bangalore-based Sasken Communication Technologies Ltd, a global provider of software and support services is likely to acquire an R&D unit of Nokia in Germany.

Parsvnath Developers tied up with ITC arm to manage 50 Hotels across the country in next three to five years.

FIIs were net buyers of Rs1.64bn (provisional) in the cash segment on Monday. Domestic Institutions were also net buyers of Rs7.32bn. In the F&O segment, foreign funds were net buyers of Rs20.13bn.

News Snippets:

The decks have finally been cleared for the likes of Bharti Airtel and Reliance Communications to provide IPTV services.

Reliance Industries and GMDC are planning to set up a JV to undertake lignite gasification in Gujarat and Rajasthan.

ICICI Bank will share its home loan business with its 100% subsidiary, ICICI Home Finance Co. The bank plans to finance home loans only up to Rs2mn while home loans above Rs2mn would be provided by IHFC.

ONGC is planning to invite bids for its second wind power project in Karnataka. It will invest nearly Rs6bn in the first phase of its wind energy foray for generating nearly 15,000 mw of power.

Rashtriya Ispat Nigam has sought the acquisition of the Bird Group of companies, including Orissa Mining Development Corporation, to secure iron ore reserves.

Tata Steel has lost its bid to buy the rights to iron ore reserves in Liberia to Johannesburg-based Delta.

The Supreme Court has cancelled Jindal Steel’s proposed JV with the Industrial Development Corporation of Orissa for the exploration of chromium deposits.

GVK Power plans to set up a thermal power plant at Talwandi Sabo (1,800 mw) and another coal-based power plant near Rajpura (1,200 mw).

GVK Power plans to bid for airport projects in Europe and USA.

Hindustan Unilever plans to sell shrimps business in Kerala.

The TDSAT has stayed an order passed by TRAI asking telecom operator Tata Teleservices to refund the excess amount collected from customers.

Tata Teleservices and Virgin Group are aiming to launch Virgin Mobile in the first week of March.

Essar Shipping is raising ~US$1bn through a mix of equity and quasi-equity instruments.

Reliance Communications to offer lifetime connection for Rs199 against current charges of Rs649.

KEC International has formed a 50:50 JV with US-based Power Engineers and floated a new firm called KEC Power.

Voltas is likely to bag a large overseas order worth Rs6-8bn.

MRF’s Tiruvottiyur factory, which has been shut for a month now over a productivity dispute, will be reopened on Tuesday.

SEL Manufacturing Company has decided to foray into technical textiles and plans to invest Rs6.5bn in the project.

Page Industries plans to expand its manufacturing capacity by 30% to produce 74mn pieces per annum vs 57mn pieces.

Hindustan Copper has raised the provisional prices for February by 6.73% with immediate effect.

Lok Housing has proposed to issue 5mn convertible warrants on a preferential basis to three promoter entities at a conversion price of Rs354 per share.

Bank of Rajasthan has hiked interest rate on term deposits of some maturities.

Ceat will finalize its plans on setting up a greenfield truck-bus radial facility this month. The company has also increased prices.

Jindal Saw expects its infrastructure, transportation and fabrication (ITF) subsidiary to contribute around 50% of the company’s top line by 2012.

Koutons Retail India plans to foray into China by the end of this year.

Sasken Communication may buy Nokia’s R&D unit in Germany.

Cambridge Technology Solutions is evaluating two more potential candidates based in the US and expects to close one of them in February.

The Shyam Group of Industries plans to set up an integrated steel and power plant at Jamuria near Asansol in West Bengal for around Rs99bn.

Plethico Pharma is pursuing three acquisitions in the over the-counter and functional food space overseas.

Wanbury has picked up a minority stake in Bravo Healthcare.

Eni UK to make open offer for 20% in HOEC.

Yes Bank is planning to raise up to Rs7bn through issuance of two crore fresh equity shares.

Emaar MGF is planning to spin off its hospitality business.

GM is likely to up its stake in its Chinese venture SAIC-GM-Wuling Automobile Co. to take on Nano.

Price of more than 7,000 drugs classified as ‘essential medicines’ is likely to fall post-Budget .

Budgetary support likely to jump 17%; railways, urban infrastructure and power may see cut in share.

One year extension of credit subvention is likely for leather, textile, marine and handicrafts sector, 2% export sop may stay.

Real estate developers constructing energy efficient buildings may get tax breaks.

Economic Front Page:

Indian tea production is likely to rise by 4.25% to ~980mn kg in 2008.

IRDA has changed the definition of infrastructure sector to align it with that of the RBI. This will lead to insurance funds flowing to the infrastructure space.

The global coffee production in the crop year 2006-07 increased by 14% to 125mn bags.

A decline in acreage and a spurt in global prices have pushed up edible oil rates by 10% in the last one month.

Over 81% of the overall planned private investments of US$104bn by India Inc in Q3 FY08 have gone into core, physical and service infrastructure.

The Government is likely to allow the float of sovereign debt paper to investors in overseas markets.

Japan Bank of International Cooperation (JBIC) has showed interest in giving development assistance loan to hydro-power projects in India.

Preparing for the goods and services tax regime from 2010, the government is likely to leave excise duty rates untouched in the budget.