Tuesday, January 29, 2008

Banks Stocks are in limelight

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Market looks good in charts and it doesn't show any problem, by problem I mean correction.. I don't see any major correction.,But if no rate cut then surely Sisutaton changes below 5000 we can see

On the upside I see a resistance kept at 5330, 5415 and a major resistance at 5564 and 5650.

On the downside I see a support existing at 5207 and 5143 and 5040.. If by any mean we happen to go weak and break even 5040 then a panic situation will be created and could take us 4840.

I would expect and want the Nifty to stay above 5330 for the bullishness. Watch bank stocks and see opportunity if still available

We have BTST call of BANNKNIFTY,L&T,NIFTY you can also look after it.

US Markets recouped all the losses incurred on friday to close in positive, on expectations of 50 basis point Fed rate cut. RBI, on the other hand is in a Catch-22 situation. The Reserve Bank of India, under the leader ship of the governor Mr.Y.V.Reddy is scheduled to meet today to review the economy and monetary policy.

RBI in its Macroeconomic and Monetary Development review published yesterday hinted about the economic slowdown and expressed concerns about surging global crude prices. The odds of a 25 basis rate cut from the review can be pegged at 75-25 in favour of a rate cut.

Bank stocks are likely to attract attention and realty stocks might follow suit. L&T yesterday declared wonderful numbers thanks to surging order book. Jet Airways declared dismal numbers posting their first loss in the last five quarters.

Markets are likely to start on a positive note and end with good gains with the expectation of a rate cut. Short covering will add fuel to the fire if the RBI announces a 25 basis point cut.

Our second US Stock recommendation gained 5.05% today

Buy SBI - still looking a good buy at the level 2290 - 2300. Clients were told to buy at 2280, some booked profit in intraday and some carried for tomorrow trade. Final target and final stop loss only to clients. clients will be informed about the final target and stop loss through sms.

Buy Kotak Mahindra - Another bank pick of mine, looking good currently at 1086 a good buy at this level. Clients were told to buy at 1075, some booked profit in intraday and some carried for tomorrow trade. Final target and final stop loss only to clients. clients will be informed about the final target and stop loss through sms.

Buy Sail - Looks good for tomorrow. Currently trading at 216.65. Can buy at this level. Ideal stop loss would be 212. Final target and final stop loss only to clients. clients will be informed about the final target and stop loss through sms.

Gayatri Projects Ltd has set up a new holding company — Gayatri Infra Ventures Ltd (GIVL) by combining all its build-operate-transfer projects. The company is looking at diluting 50% equity in the new company. Discussions are ongoing with few Private Equity players to offload the stake at a good valuation. The stock closed at Rs 530 on Friday.
Dr Reddy's Laboratories Ltd posted an unexpected net loss for the December quarter as it wrote off $60 million of costs for its underperforming German unit (Beta Pharm)and saw revenues decline.The company hopes to perform better in the fiscal year beginning in April on improved sales of generics in India and Russia, and on a turnaround in its German business.

Growth in the next fiscal should be helped by the launch of a generic version of GlaxoSmithKline's Imitrex tablets in the United States in the December quarter. The company reported a consolidated net loss of 847 million rupees for its fiscal third quarter compared to a net profit of 1.88 billion a year ago.
Tata Group firm Voltas is looking at inorganic route to grow and plans to acquire new businesses in electro-mechanical and services space.The electro-mechanical projects and services business presently contributes around 55-60 per cent to the company’s total revenues.

News Snippets:

Government has asked SBI to go slow on the merger with all its subsidiaries.

NTPC is looking to spend over $1 billion on buying coal assets abroad

Reliance Energy, BEST and Tata Power have sought a hike of 10-15% in tariff rates.

JSW Steel is planning to spin off its overseas mining assets in a new company and list it on the London Stock Exchange.

Kotak Mahindra Bank is all set to acquire a controlling stake in Ahmedabad Commodity exchange.

Reliance Energy and Reliance Engineering Associates have put in bids for Mumbai’s monorail project worth Rs50bn.

ICICI and HDFC Bank have raised the two-wheelers down-payment to 30%.

Orissa likely to scrutinise permissions given to Reliance Retail for opening Reliance Fresh outlets in the state.

Phoenix Mills has upped its stake in Entertainment World Developers by picking up additional 8.3% stake for Rs1.5bn.

Indorama Thailand is acquiring close to 90% equity stake in Tuntex, a Thai manufacturer of polyester fibre and filament, for a sum of US$63.5mn.

HDFC is planning to list its mutual fund arm by the year end.

Rajesh Exports is likely to announce a buy back offer in the near term.

Wheels India and Sundaram Finance, both part of the TVS group, have formed a JV, Sundaram Hydraulics, to produce hydraulic cylinders.

Indo Tech Transformers will double its transformers manufacturing capacity to 7,450 MVA soon.

Lupin is talking to potential partners who may take its herbal and synthetic psoriasis molecules on to complete the cycle of drug development.

Coal Ministry is seeking tax breaks and concessional duty on import of equipment for Coal India.

Indian Hotels has raised tariff of budget hotels by 50%.

JSW Bengal Steel, a subsidiary of JSW Steel is plans to come out with a Rs35bn IPO next year to part finance its proposed 10mn ton steel plant in Salboni.

IOC and Tata Power plan to form a JV to set up a 1,000MW power project at Mirthapur in Orissa.

The merger of Neelachal Ispat Nigam with SAIL could be in trouble with MMTC, unwilling to sell its stake.

Tata Motors plans to launch high-end luxury buses of Spain’s Hispano Carrocera in the Indian market in the near future.

IVRCL plans to bid for airport development projects in small cities and towns.

Jet Airways aims to raise up to US$800mn, including a rights issue for half the amount which was approved in June FY07.

Nissan Copper is planning backward integration with an estimated capex of Rs8bn.

Board of KEI Industries has approved setting up a subsidiary for the power generation business and entering into tie-ups for power generation through biomass-based power plant.

General Electric has put GE Money on the block.

Economic Snippets:

Government is planning a compensation package for states to reduce sales tax on ATF from 15% to 10%.

An eGoM will consider relaxing the 5,000 hectare land ceiling for SEZs, early next month.

RBI will sell two-year government bonds to suck out Rs30bn from market of January 31

Public sector banks want the Government and the RBI to exert more pressure on the Fed for allowing acquisitions and branch expansion.

The government is proposing a hike of 1% in VAT rate.

Fertiliser plants will have the first right over domestic natural gas, followed by petrochemical and existing power units if the government approves a draft natural gas utilization policy.

Russia has lifted the ban on import of tea and coffee from India with immediate effect.

Power ministry plans to float tender inviting firms to manufacture equipment based on super-critical technology for meeting the target of 78,000MW power generation during the 11th plan.

Insurance firms plan to invest US$5bn in the stock market by FY08.

Rubber production in January 2008 may increase by 14% yoy to 110,000 tons.