Wednesday, April 16, 2008

Larsen & Turbo may see action

Today's Pick - HEG

We recommend a buy in HEG from a short-term perspective. Referring to the chart of HEG, we see that the stock had been on a medium-term downtrend from its January 2008 high of Rs 609 to its March low of Rs 216.

However, the stock found support at around Rs 240 level in late March (coincides July 2007 peak) and commenced to move up. Subsequently, the stock breached the medium-term down trendline and then the 21-day moving average.

We notice that there is an increase in volume in the last three trading days. Moreover, the long-term uptrend of the stock, which began in June 2006, is still in place. The stock appears to have resumed the long-term uptrend. The daily momentum indicator is on the verge of entering the bullish zone from the neutral region. The moving average convergence and divergence is also likely to enter into the positive territory. We are bullish on the stock from a short-term point of view. We expect the stock to move up to our price target of Rs 335 in the short-term. Investors with short-term perspective can buy the stock, while keeping the stop-loss at Rs 275
Larsen & Turbo and the Tamil Nadu Government have entered into an agreement to set up a Rs 3,068-crore integrated ship building and port facility to the north of Chennai.

Nicholas Piramal India on Tuesday, 15 April 2008 said it has signed a definitive agreement with Khandelwal Laboratories for purchase of Anafortan and CEFI Brand Groups of the latter for Rs 116 crore.

Tata Group is reportedly eyeing a partnership with Brazilian aircraft maker Embraer. According to reports, the talks were on with the Brazilian aircraft manufacturer for starting a joint venture for production of aircraft, as Embraer, the world's third largest plane manufacturer, was unable to cope with the orders that it was getting from various countries and private players.

Global energy major Shell may reportedly bid for acquiring 30% stake in Reliance Industries' discovered gas block in the Krishna-Godavari basin. Shell's bid could be around $6.7 billion, the reports added.

Net profit of Reliance Industrial Infrastructure rose 52.37% to Rs 6.43 crore on 38.61% rise in sales to Rs 18.92 crore in Q4 March 2008 over Q4 March 2007.

Net profit of Rallis India rose 115.44% to Rs 125.19 crore on 7.64% rise in sales to Rs 692.15 crore in Q4 March 2008 Q4 March 2007.

Power Finance Corporation, NDTV, Merck, BASF India and Petronet LNG among others will declare their March 2008 ended results today.




The market may open higher today, 16 April 2008, extending yesterday’s rally, which was led by IT bellwether Infosys Technologies. Asian markets were trading higher today, 16 April 2008. US markets settled with decent gains yesterday, 15 April 2008.

Power Finance Corporation, Reliance Petroleum, Mindtree Consulting and Petronet Lng among others will declare their March quarterly results today.

Asian markets were trading higher today, 16 April 2008. Japan's Nikkei (up 1.42% at 13,174.62), Hong Kong's Hang Seng (up 0.84% at 24,102.72), Taiwan's Taiwan Weighted (up 0.76% at 8,992.41), Singapore's Straits Times (up 1.32% at 3,096.97) and South Korea's Seoul Composite (up 0.90% at 1,757.80) edged higher.

US markets logged gains on Tuesday, 15 April 2008, following better-than-forecast earnings at regional banks and record prices for oil and gasoline. The gain was led by financial and energy shares. The Dow Jones industrial average gained 60 points to close at 12,362. The Nasdaq gained 10 points at 2,286, while the S&P 500 index rose 6 points to 1,334.

Back home, the battered stock market found rebounded yesterday, 15 April 2008, triggered by IT bellwether Infosys Technologies' good future outlook. The 30-share BSE Sensex rose 346.02 points or 2.19% at 16,153.66 and the S&P CNX Nifty was up 101.85 points or 2.13% at 4879.65 on that day.

Sensex has gained 1344.17 points or 9.07% from a low of 14,809.49 on 17 March 2008. It is off 5,053.11 points or 23.82% from a record high of 21206.77 hit on 10 January 2008.

As per provisional data, foreign funds sold shares worth a net Rs 56.52 crore on Tuesday, 15 April 2008. Domestic funds purchased shares worth a net Rs 13.27 crore on that day.

FIIs were net sellers of Rs 795.13 crore in the futures & options segment on Tuesday, 15 April 2008. They were net sellers of index futures to the tune of Rs 738.58 crore and bought index options worth Rs 302.18 crore. They were net sellers of stock futures to the tune of Rs 361.57 crore and bought stock options worth Rs 2.84 crore.

Crude oil prices slipped today, 16 April 2008, after the US dollar rose on surprisingly robust US economic data. US light crude fell 28 cents to $113.51 a barrel, off Tuesday's record high of $114.08. London Brent crude fell 38 cents to $111.20 a barrel.