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