Nifty : (5157.70)
As we mentioned in our last post that market still has some more upside left. Now look market has moved up. Nifty Spot has closed above our resistance level of 5156. That is a good closing for market. But again one thing to keep in mind that "Profit Booking At Every Higher Levels". For today supports are 5143, 5106, 5089 and resistance levels are 5173, 5191 and 5207Today's Pick - Ashapura Minechem
We recommend a buy in Ashapura Minechem from a short term perspective. It is evident from the chart that the stock has been on a medium term down trend from the January peak at Rs 448. This down trend was arrested at Rs 168 in March and the stock has been moving higher since then.
The crossover of the 21 and 50-day moving averages in the daily charts is a positive signal. The volume traded has also increased over the past two trading sessions. The daily momentum indicator has entered the bullish zone.
Moreover, the daily moving average convergence and divergence is featuring in the positive territory in line with the uptrend. Our short-term forecast for the stock is bullish. We expect the stock’s current up move to continue until it hits our price target of Rs 280 in the short term. Investors with short-term perspective can buy the stock while keeping the stop-loss at Rs 233.
Key Events for the coming week:
Indian Markets: More Q4 numbers. Inflation on Friday 23rd May
Overseas Data:
* Thursday - Data on April Producer Index
* Friday - Existing home sale data and consumer sentiment index.
Stocks to watch:
* Dishman Pharma - Rs 310
* Garware Wall Ropes - Rs 104
* Micro Technologies - Rs 281
* VIP Industries - Rs 93.90
* Rural Electrification - Rs 117
Corporate News M&M is likely to buy a controlling stake in Italy’s Stile Bertone. (ET)
ONGC Videsh plans to relinquish its onshore exploration block in Ghadames basin, Libya, in favour of the National Oil Co. of that country. (BL)
Reliance Industries in talks with two overseas companies for a foray into hospitality. (ET)
Reliance Retail close to break even in its first full year of operations. (Mint)
ONGC subsidy on auto and cooking fuel to rise by 17.5% in 2007-08. (FE)
Maharashtra government is reconsidering the bid by Reliance Energy for the Rs60bn Mumbai Trans Harbour link. (BS)
Mittal Energy Investments, Total of France and HPCL are likely to invest Rs320bn each in the proposed Petro hub project in AP. (ET)
United Spirits is expected to go in for local bottling of Whtye & Mackay scotch whisky. (ET)
RCOM is set to launch DTH services in 4,000 towns. (ET)
GAIL may become a consortium partner in the Pakistan-India portion of the Iran-Pakistan-India gas pipeline project. (BL)
State owned oil marketing companies want to pay ONGC & Oil India, in oil bonds. (FE)
The Left parties have opposed any move by the Centre to relax FDI norms to facilitate the Bharti-MTN deal. (FE)
Reliance Infratel dilutes 5% stake in pre-IPO placement. (FE)
Ceat decides to set up Rs6bn greenfield radial facility in Gujarat. (BL)
BSEL Infrastructure Realty has signed a MoU with the Government of Malaysia for development of the proposed Iskandar metropolis at an investment of Rs180bn. (BL)
Ranbaxy has started operations in Yemen by tying up with a local firm, Pharma. (ET)
Aditya Birla group to invest Rs4bn in its retail business under group company Aditya Birla Nuvo.(ET)
Quippo Telecom Infrastructure is likely to buy 49% stake in Tata Telecom Teleservices.(TOI)
OnMobile Global to buy a French company in the area of speech recognition software.(BL)
Kinetic Motors in talks with a PE fund and other automakers, in addition to M&M, to raise Rs1.5bn.(Mint)
TRAI asks Government to prescribe contingent rollout obligations and seek additional bank guarantees from Reliance Communications and Tata Teleservices.(BS)
Allahabad Bank plans a rights issue for raising
Tier I capital without diluting government stake.(DNA)
UTI MF may defer its IPO to July in view of financial turmoil in global markets.(FE)
Tata group plans to enter the business of operating and managing ATMs through Tata Communications.(Mint)
Tata Investment to raise Rs7.2bn through a rights issue of zero coupon convertible bonds.(ET)
HSBC acquires 73.2% stake in IL&FS Investsmart for Rs11bn in cash.(BL)
Pidilite Industries exploring possibilities to acquire majority stake in European or US companies.(BS)
Gateway Distriparks plans to double the capacity of its cold storage warehouses. (DNA)
Himatsingka has disclosed a MTM loss of Rs1.75bn (as on March 10, 2008) on a derivative deal with HDFC Bank, for which it has sued the bank. (BS)
Bombay Dyeing is considering demerging its real estate business into a separate company. (DNA)
Tata Coffee is eyeing an acquisition in Russia. (DNA)
Raymond has re-launched its popular brand Be and plans to re-open Be: apparel stores. (ET)
Videocon Industries plans to make mobile handsets. (DNA)
Reliance BIG Entertainment, part of the ADAG group, to invest US$1bn in the Indian film and end entertainment business.(ET)
Global Steel Holdings plans to invest US$450mn to double its capacity at Delta Steel Company in Nigeria to 2.4mtpa.(ET)
HCL Technologies in talks for an acquisition in the life sciences space.(DNA)
Godrej group and Videocon Industries sounded out on a possible bid for GE’s appliances division.(ET)
Bahrain Telecommunications may acquire a listed Indian operation.(Mint)
Hyundai plans to launch a US$3,500 car in India by 2012.(TOI)
Shree Precoated Steels decides to hive off its steel business into a separate company.(ET)
Mercator Lines enters into coal mining business through its subsidiary in Singapore.(DNA)
Bharti Airtel to start its Sri Lanka operations this year.(ET)
Omaxe plans to foray into Dubai property market