Friday, February 15, 2008

Will Indian markets change gears?

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As we told you 2 days back when nifty was 4850, that certain signals are showing that we are on a bullish trend and you could see what happen after that Nifty at 5200
Nifty looks minor bullish for tomorrow as long as it stays above 5235, but the direction is not clear yet.
The only concern was global clues which are down,On the downfall nifty finds a support at 5180 and then 5120.
5120 should act as a very good support any break below this can target 4940 on nifty
On upside we find immediate resistance at 5235 break past this level can take Nifty to 5400

Pick No 1 - buy jai prakash (cmp 273.55) - Looks set for rally looks a good buy at this level or upto 276 keep a stop loss of 268. Final target and final stop loss only to clients.

Pick No 2 - wwil (cmp - 46.35) - Wits on its way for another breakout. Can buy around 46 - 47. Ideal stop loss would be 44. Final target and stop loss only for clients.
Indian Markets as usual with no local news will try to bank on the global news with bears trying to take advantage. But we started late how can we go down tamely? We do not expect any major losses in the Indices today though subdued movement with wild swings not ruled out. Sensex has gained nearly 1200 points in the last two trading sessions and it requires a consolidation. Huge short interest build up is a definite positive for the Bulls.

Power sector was in the limelight yesterday after beaten down due to the R Power debacle. Technology stocks which held their nerve in the last one month took a back seat yesterday. Pre-budget expectations are likely to start building up some time next week. Textile is likely to be the major beneficiary from the budget this year. As per a pink paper report Central Govt is expected to raise allocation to two key support schemes for the industry, the Technology Upgradation Fund Scheme (TUFS) and Scheme for Integrated Textiles Parks (SITP), in the coming Budget. Financial Technologies is likely to be in the limelight on the news that New York Stock Exchange (NYSE) will pick up 5% stake in Multi Commodity Exchange (MCX).

Financial Technologies, PFC, Pyramid Saimira, NTPC, Lanco Infra, Wipro, Renaissance Jewellery, Parsvnath Developers are the stocks that hit the headlines today.


Renaissance Jewellery aquires JBR Inc for Rs 160 crore. JBR Inc's major clients include US retail gaints like JC Penny, Sears and others.

Pyramid Saimira is reportedly in talks with a theatre chain in UK for a potential take over. The company is planning to raise $400 million in funds for the said proposal.

Power Finance Corporation Ltd (PFC) is planning to raise $4 bn in 2009.

Parsvnath Developers is likely to be the front runner for land facing Citigroup Inc.’s office in Mumbai’s Bandra-Kurla area.

Parsvnath Developers is one of at least three Indian developers considering bids for land facing Citigroup Inc.’s office in Mumbai’s Bandra-Kurla area, undeterred by the city doubling the reserve price, bowing to the pressure from the Ministry of Commerce.

NTPC is planning to invest $40 b over next 5 years to to spread out operations across Asia and Africa. The company plans to set up power plants abroad is eyeing a 50,000 MW-plus capacity by 2012.

Lanco Infratech is planning to set up one of the country’s largest wind turbines manufacturing facilities in Karnataka

Wipro Infotech has won a five-year Rs 200 crore worth IT outsourcing contract from Pantaloon Retail (India) Ltd

News Snippets:

LN Mittal and Farallon Capital invest Rs15.8bn for 28.6% stake in Indiabulls Power Services.

NTPC to invest US$40bn over the next five year, to transform itself into an integrated regional energy player.

Mastek likely to buy a US-based IT firm System Task Group International for US$30mn.

Satyam Computer to add 3,000 employee’s by March end.

L&T Infotech has put its IPO plans on hold.

L&T wins an order from Qatar worth Rs3.11bn.

Haldia Petrochemicals is set to buy L&T 51% stake in HPL Cogeneration.

TCS plans to reach revenue of US$800mn-US$1bn from domestic market.

IOC to launch its marine fuel business globally.

Nirma set to mop up Rs15bn via QIP.

BHEL gets Rs2bn order from ONGC.

Wipro Infotech bags US$50mn 5 year outsourcing contract from Pantaloon retail.

Spanco Telesystems acquires Great IT for an undisclosed amount.

Orchid Chemical gets US FDA nod for Granisetron Hydrochloride tablets.

Sun Pharma receives tentative approval from US FDA for generic Depakote.

DE Shaw Valence picks up 5.7% stake in Orient Express Hotels.

Wipro may buy a German based company in next 6 months.

Tata’s and Boeing enter into a JV, to outsource and manufacture defence-related aero space component work in India.

HPCL to shut gas oil unit at its Vizag refinery for 10 days.

Kirloskar Brothers is looking to buy a European based pump manufacturing and marketing companies.

Shree Cement plans to set up a cement plant of 2MT per annum at a cost of Rs20bn.

EID Parry buys 51% stake in Phytoremedies.

Jubilant Energy discovers Oil and Gas in Cauvery basin.

Maruti Alto has crossed 1mn production mark.

PFC to enter financial advisory services.
Economy Front Page

The Government hikes petrol and diesel prices by Rs2 per litre and Re1 per litre respectively.

Steel companies agree to roll back price hike with immediate effect.

The DoT plans to change spectrum usage charges levied on telecom companies, to a fix percentage of revenue for each category circles.

PM panel suggest reduction in import duty from 10% to 5% in machinery and introduction of mechanism for textile sector.

PM says Indian can sustain 9% GDP growth.

RBI denies a rate cut in short-term citing high inflation.
Agriculture ministry has proposed 1%cess on direct taxes and 2% on indirect taxes.

Export from IT and ITES based SEZ to double in FY09