Who Cares(Negative Market)
Call's Achieving Target , What's More u Want
See Nifty 5000 by expiry
Nifty (4875) Supp 4830 Res 4958
LANCO INFRA Buy Around 517 to 518 .............
CAIRN INDIA Buy Around 307 to 308 ..........
Eicher Motors Buy Around 385 to 390 .........
GTL INFRA Buy around 52.70 to 52.90 .......
Target For Paid clients only
Today's Pick - Central Bank of India
We recommend a sell in Central Bank of India from a short-term perspective. It is evident from the charts that the stock has been on an intermediate-term downtrend from its 52-week-high of Rs 154 recorded in early January 2008. However, after marking a one-year low at Rs 73 in March, the stock began moving higher till it encountered resistance at around Rs 100 level.
Subsequently, the stock failed to exceed that resistance level and resumed the downtrend. The daily and weekly relative strength indices are featuring in the bearish zone. Besides, the moving average convergence and divergence has re-entered the negative territory indicating bearishness. The stock is also trading well below the 21 and 50-day moving averages at present. In the short-term, we are bearish on the stock and expect it to decline further until it hits our price target of Rs 78 in the coming days. Traders with short-term perspective can sell the stock while keeping the stop-loss at Rs 89
Corporate News
Reliance Power and GMR Infrastructure are planning to bid for PowerSeraya and Senoko Power, which account for more than 60% of the power produced in Singapore. (BS)
TCS has signed a five-year deal worth US$100mn with NXP Semiconductors. (ET)
Reliance Industries is in talks with PSU oil refining companies to sell its crude oil to be produced from MA field in its prolific D6 Block in offshore Krishna-Godavari Basin. (DNA)
Indiabulls Real Estate plans to sell 353mn shares of Indiabulls Properties Investment Trust at between US$1 and US$1.1 apiece. (DNA)
Taj GVK plans to invest over Rs5bn in its existing and new properties in south India over the next 2-3 years. (DNA)
NMDC may review exports to Japanese steel mills and South Korea's Posco to increase domestic availability of iron ore. (BS)
Tata Chemicals has launched Tata Salt Lite, a new brand of low sodium salt. (BL)
Eicher Goodearth Investments, the holding company of Eicher Motors, plans to buy back 13.12% of public holding at Rs691.68/share. (ET)
Eicher Motors plans to buy back the 3.6% stake held by German auto major Daimler Motors. (ET)
Tata Motors is in the process of re-organizing its manufacturing facilities for commercial vehicles, and intends to create hubs for a particular category of vehicle at each of its various production units. (BL)
Educomp Solutions is planning to raise US$500mn through ADR, GDR, FCCB, or QIP. (BL)
Omaxe is entering into power generation by forming a JV with Isolux, a Spanish firm. (ET)
Kirloskar Electric bids for acquiring German’s Lloyd Dynamowerke at an estimated enterprise valuation of ~US$100mn. (ET)
Amara Raja Batteries has forayed into two-wheeler battery segment. (ET)
Apollo Hospitals is scouting for inorganic opportunities in Spain and Peru. (ET)
HTMT Global plans to acquire a mortgage-specific company in the UK soon with an investment of over US$150mn. (DNA)
Warburg Pincus-controlled WNS Holdings is working on an outright acquisition or a strategic merger with Firstsource Solutions. (ET)
UTV New Media, the digital media arm of UTV Software is acquiring a controlling stake of 76% in 'IT Nation', a leading online infomediary. (ET)
Power Finance Corp.’s subsidiary PFC Consulting has formed three SPVs, for power projects in Orissa. (Mint)
Videocon may merge some of its factories to improve efficiencies and boost sales in a bid to gain an upper hand on competitors Samsung, Whirlpool and LG. (BS)
Fidelity Mutual fund has acquired a further 1.55% stake in Jyothy Labs, raising its holding to 5%. (ET)
RPG Group plans to invest Rs90bn in the power, tyre and carbon black industries as part of its expansion in the coming two years. (ET)
The Essel group owned Dish TV, is aiming to double its customer base to two lakh a month. (ET)
Leading Australian financial services firm Link Group plans to acquire a majority stake in Intime Spectrum Registry. (ET)
Harrisons Malayalam is planning to invest Rs560mn in its various plantations in Kerala. (BS)
Over 650 drugmakers have asked the Government to immediately increase prices of 33 bulk drugs. (ET)
BlackBerry vendor Research-In Motion (RIM) is not willing to hand over the message encryption key to the Government. (ET)
Economic News
The DoT has called a meeting with operators on May 28 to discuss the allocation and pricing of 3G spectrum. (BS)
The Finance Act 2008 has modified and rationalised the CENVAT Credit Rules, 2004 (Credit Rules) and removed some anomalies. (BS)
The Government may consider 49% FDI in gems & jewellery and apparel. (ET)
The Government is working on a dual track strategy of fuel price hikes and duty cuts to protect consumers as well as cash strapped oil companies. (ET)
The Gujarat government is planning to invite private companies to invest in five new power projects worth Rs200bn during the upcoming Vibrant Gujarat Global Investors' Summit. (BS)
Cotton production outlook for the next season (August-July) has been kept unchanged at a record 33mn bales (of 170 kg each). (BL)
SEBI has proposed a maximum post-issue capital of Rs250mn for companies to be eligible to participate in the proposed SME exchange. (BL)
The Himachal Pradesh Government has sought the Centre’s approval to levy generation tax on hydropower projects in the state and extension of the industrial package till 2013. (Mint)
India could miss by 20%, or 13,855MW, its target of adding almost 70,000MW of power over the next four years because of poor transport infrastructure. (Mint)
A shortage of globally-recognized testing labs could impact India’s drugs and chemical exports to Europe, worth some US$2.7bn in 2007