OUT BTST - NIFTY,POLARIS,ONGC,GAIL,AISHWARYA,HCL TECH .........
ON RADAR - IFLEX,MARUTI,LANCO INFRA,SESAGOA,RCOM,,,,,,,,,,,
We recommend a Buy call on LITL with stop loss of 492 for the target of 526, 538 and 545
We recommend a Buy call on SIEMENS with stop loss of 568 for the target of 597, 609 and 626.
OVERALL VIEW ABOUT MARKETS TODAY :Markets will be opening with positive note with a gap of 100-125
points on positive side on Sensex. Markets will be moving up with renewed support from institutions and operators. . Markets will have usual high volatility. Technology, Infrastructure and communication shares gaining ground
So now it is important to keep an eye on that trend line which is working as a support line. For today supports are 4953 , 4912 and resistances are 5047, 5084 and 5141
Today's Pick - Polaris Software
We recommend a buy in Polaris Software Lab from a short-term perspective. It is clearly visible from the charts that the stock has formed a significant trough at Rs 62 in January.
This trough has halted the long-term down trend that was in motion since the 2007 peak at Rs 237. The double-bottom pattern spanning almost three months between January and April this year signals a possible long-term reversal.
On April 17, the stock conclusively broke through the baseline of this double-bottom pattern, indicating bullishness.
We notice good volume support over the past four weeks. The daily momentum indicator has re-entered the bullish region. We are bullish on the stock in the short-term and expect it to move up to our target price level of Rs 124 in the forthcoming trading sessions. Investors with short-term perspective can buy the stock while keeping the stop-loss at Rs 104.
Bulls may be tested again
Markets started off the day with a negative bias mirroring overnight losses in the US markets. However, as the day progressed key indices gradually gained momentum on back of positive cues from the Asian markets. The momentum was further carried as the IT and Metal stocks attracted buying which saw the Nifty index close above the crucial 5k mark. Finally, the BSE benchmark Sensex ended 225 points higher to close at 16,948 and the Nifty index gained 53 points to close at 5,011.
Overall about 1,417 stocks advanced; 1,245 stocks declined while 88 stocks remained unchanged. Among the 50-Nifty 37 stocks ended in green and 13 stocks ended in red.
Cement stocks could be under pressure after companies pledged to cut prices, joining steelmakers in the government's efforts to curb inflation.
BASF SE, the promoter of BASF India has announced a voluntary Open Offer to purchase up to 6,289,591 shares (constituting 22.3% of the issued share capital of BASF India) at Rs274 per share for a total consideration of Rs1.72bn (assuming full acceptances are received in the Offer).
Sun Pharma Advanced gained by over 2% to Rs95 after the company announced its Q4 net profit at Rs144.7mn (up 190.5%) and the revenue was at Rs245.1mn. The scrip touched an intra-day high of Rs100 and a low of Rs93 and recorded volumes of over 14,00,000 shares on NSE.
LITL rallied by over 10% to Rs513 after the company announced that it secured Rs80bn International terminal project in Kerala. The scrip touched an intra-day high of Rs526 and a low of Rs446 and recorded volumes of over 17,00,000 shares on NSE.
JSW Steel surged by over 4% to Rs996 after the company announced that it posted 14% growth in crude steel production in April' 2008 including production of Salem works for corresponding period on comparable basis. JSW Steel also registered a 12% growth in Rolled flat product (HR Coils & Plates) & 33% growth in Rolled long products segments. The scrip touched an intra-day high of Rs1044 and a low of Rs950 and recorded volumes of over 5,00,000 shares on NSE.
The IT stocks were in momentum as the Indian rupee further depreciated to Rs42.45 per dollar. IT bellwether Infosys gained by over 4.5% to Rs1826, Satyam gained by a percent to Rs501, Wipro advanced by 2% to Rs503 and i-Flex added over 4.5% to Rs1386.
Apollo Tyres ended flat to Rs42, there were reports stating that Apollo Tyres partly owned by Michelin & Cie. would spend Rs10bn this year to raise capacity. The scrip touched an intra-day high of Rs43 and a low of Rs42 and recorded volumes of over 1,00,000 shares on NSE.
SCI rallied by over 6% to Rs258 after the board of directors of the company said it will consider bonus issue proposal. The board of directors of the company would meet on May 20, 2008 to consider the proposal. The scrip touched an intra-day high of Rs264 and a low of Rs249 and recorded volumes of over 3,00,000 shares on NSE.
Corporate News
The Joint Venture between SREI Infrastructure Finance and BNP Paribas Lease Group - announced last year - has started operations in April under the name of SREI Infrastructure Development Finance Pvt Ltd.
A JV between Kirloskar Brothers, Maytas Infrastructure and MEIL has received a contract worth Rs9.34bn from the Irrigation & CAD Department of the Andhra Pradesh government. Kirloskar Brothers' portion of this order is Rs1.5bn.
Kinetic Motors has clarified that the news about M&M buying a majority stake in it is purely speculative. The company says it is exploring various alternatives to raise funds for its two wheeler business. However, no definitive agreement has been entered with any investor or M&M.
Trans Freight Containers has sold the entire 30,00,000 shares of Morteo Trans Freight Reefer Containers and therefore the latter is no longer a subsidiary of the company.
Tata group plans to up stakes in globally active subsidiaries by 3-4% this year. (BS)
Bharti and MTN in talks for 50:50 cash-share deal. (BS)
Lafarge buys L&T’s concrete business for Rs14.8bn. (BS)
Consortium led by Lanco Infratech wins Rs80bn Kerala port project. (Mint)
SBI and GE Money split credit card JV into two separate operations. (Mint)
Kotak Mahindra Bank to raise US$1.2bn. (Mint)
EDS arm, Mphasis may go private following HP deal. (Mint)
Punj Lloyd plans to offer onshore oil rigs to Libya’s National Oil Corporation. (Mint)
Supreme Court stays order against Tata-BEST power pact. (Mint)
Satyam loses appeal barring its moves to block the online mobile payment company Upaid’s fraud and forgery claims against it in Texas. (Mint)
Belgium based Cockerill Maintenance and Ingenierie makes open offer to acquire 20% in Flat Products. (BS)
Apollo Tyres will spend Rs10bn to add capacity. (BS)
Maharashtra government takes ICICI Lombard to court for not settling farmer related claims. (BS)
Lupin embarks on Rs3bn expansion plan. (BL)
ONGC promoted company enters into MoU with Torrent Energy for supply of bulk power at Dahej. (BL)
Cash crunch affects IOC’s investment plans; part retail expansion proposal on hold. (BL)
Shyam Telelink gets CDMA spectrum in Maharashtra. (BL)
BSNL decides to deploy HP’s disaster recovery solutions. (BL)
Vodafone Essar seeks FIPB approval for investment in tower company. (BL)
PNB not to cut deposit rates for now. (BL)
Syndicate Bank reprices its bulk deposits. (BL)
SC dismisses BSNL’s appeal seeking to recover revised charges from BPL Mobile, and Idea Cellular. (FE)
ONGC to boost production from Bassein. (FE)
Omaxe to invest US$20bn to build 1mn homes. (FE)
ONGC files review petition on disputes on being denied entitlement to tax holiday. (FE)
Wadias sue Rahejas for alleged breach of agreement pertaining 478 acres of land, to claim damages of Rs13.7bn. (FE)
GHCL eyes US furnishing firm Linens ’N Thing. (ET)
Mphasis to scale up operations in India, to raise India headcount by 8,000. (ET)
Mascon Global acquires US-based Ebusinessware Inc, for US$35mn. (ET)
HB Stockholdings revises open offer to acquire 20% of DCM Shriram from Rs120 to Rs130 per share. (ET)
PFC signs MoU with Exim Bank of US for a credit of US$800mn. (ET)
SBI set to launch its Mobile Banking Services by end of June. (ET)
Economic News
Shipping regulator exempts Indian vessels from age bar. (BS)
New players allocated spectrum in Kerala. (BS)
Pharma firms opt for in-licensing to increase sales. (BS)
1.565mn demat accounts stay frozen for lack of PAN details. (BL)
Supply to sugar mills may be hit as cane area shrinks. (BL)
Government to consider fresh pricing of gas from KG Basin. (FE)
The railway ministry enters into an agreement with SNFC International, France. (FE)
Indirect tax collection grew 11% in April 2008. (ET)
Excise Duty collection fell by 3.9% to Rs64.10bn in the first month of the fiscal year. (FE)
Custom duty collection grew 24.9% to Rs90.18bn in April 2008 against Rs72.21bn in same month last year. (ET)
Monsoon to reach Kerala on May 29, three days early. (FE)
The DoT may allow foreign telcos to bid during the upcoming 3G auction. (ET)
Railways to consider removing 30% port congestion surcharge on iron ore for local use. (ET)
India tapping Non-NSG’s (Nuclear suppliers group) members to explore possibilities of importing fuel for its nuclear plants