Thursday, December 6, 2007

POWER STOCK IN DEMAND

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OUR BTST - BANK NIFTY, POWERGRID, GAIL,

The market is expected to open on a positive note today;
traders are advised to assume long positions if Nifty sustains
above 5995 levels else from lower supports of 5940 for upside
targets of 6050 and 6125 levels.

FII Gross purchases Rs 3974 Cr, Gross sales Rs 3954 Cr, Net Buyers Rs 20 Cr.
MF Gross Purchases Rs 1028 Cr, Gross Sales Rs 1062 Cr, Net Sellers Rs 34 Cr

Nifty December futures witnessed long accumulation; it added 6 lakh shares in open
interest on the back of premium increasing significantly to 37.15
points. The overall market has seen addition of 2.84 percent of
open interest on the back of increasing cost of carry indicating
positive sentiments prevailing. On the options front call options
have seen fresh buying while put options have witnessed
shorting indicating limited downsides form the current levels.

We have a moderately bullish view on IDBI. We recommend a bull call spread strategy:
o Buy One IDBI Dec 180 CA @ 9.50 – 10.50
o Sell One IDBI Dec 190 CA @ 6.50 – 7.50
o BEP: 183
o Investment: Rs.1,30,000 (Approx)
o Time Frame: 5-6 Days

IDBI Buy at 175 sl 172.10 for target 183-185 for 5-6 Days

Watch for big moves from MTNL and Alok Industries soon

RED HOT STOCK POWER GRID,INDUSIND BANK ,DCB, GAIL NTPC,RNRL

STILL THINKING FOR A REASON TO JOIN US

Wednesday, December 5, 2007

Technical picks

MoserBaer - MoserBaer had made a double top earlier
around 340 levels, and slipped sharply
from the highs. It is currently trading
around the major support level which is
also a double bottom for the stock around
240 levels. The stock has found support
and has reverted back with an increase in
volumes, suggesting an excellent bottomfishing
opportunity in the stock. The
leading indicator like 14-day RSI has given
a strong buy signal, as it bottomed out
around the oversold territory. However,
the stock currently is trading below all the
major moving averages barring the 200-
day EMA, from where we had earlier seen
a bounce back in the stock. The stock may
face trouble around 280 levels on the
upsides above which it could witness a
unidirectional movement towards its all
time high levels of 350. This stock is an
excellent bottom fishing pick from the
current levels. All long positions in the
stock should be protected with a stop loss
placed below 238 levels on a closing basis

DLF - DLF had been consolidating lately around
its rock solid support zone of 850-900 levels.
The stock made a high of 999 in the recent
past. However, profit booking forced the
stock to test lower levels of 800. The stock
is currently consolidating around the 900
mark and a further decline in the stock is
largely ruled out. The 14-day RSI is hovering
around the oversold territory and hasgenerated a
strong buy signal from the current levels.
Immediate resistance isplaced at around the all time
high levels. A sustained close above that level will
induce fresh buying interest in thestock which might
guide it to test new highs of 1080-1100 levels.
The 50-day EMA level is placed at around 850
levels which is unlikely to be broken in the near term.
Investors are advised to assume long positions in the
stock in the range of 900-925 levels for a medium term
target of 1050 and 1100 levels. All long positions in the
stock should be protected with a stop loss placed below
840 levels on a closing basis.

Cinemax - declared its 2QFY08 resultswhich were lower
than our expectations.This was due to a delay in the
launch ofits new properties as compared to our
expectations. The delays have been due to mix of
late handing over of properties,delay in getting
the fit-outs done and getting the specific clearances
like no objection certificates from the municipal
authorities. The company has currently
15 properties under operation with 44
screens and 12,057 seats. The topline of
the company grew by 7.5%, while the bottomline rose
by 36.8% QoQ on account of larger number of
screens under operation. The company also
reported a 70% QoQ jump in its other income from
Rs.8.9 mn to Rs.15.1 mn, thereby aiding its bottomline
growth. As the company was listed in (2H FY07), the
corresponding figures of (2QFY07) are not available for
comparison. Moving forward, they now have pushed back
the launch of new properties on account of various reasons
as outlined. On an average, we now estimate that upcoming
properties may be delayed by a quarter. Hence, we have revised
our FY08E and FY09E topline numbers. Our FY08 sales
are revised downwards by 17% from Rs.1,580 mn to
Rs.1,306 mn, while FY09 sales from Rs.2,864 mn to
Rs.2,414 mn. Inspite of this reduction in our estimates,
we still rate Cinemax as a ‘BUY’ with a reduced price target
of Rs.168 against our previous target of Rs. 200. The
stock currently trades 15.2x FY08E and 8.7x FY09E. The
revised price target implies a 41% upside from the current
market price and is at 12.3x FY09 estimated earnings.

Time for IT to move

STILL THINKING FOR A REASON TO JOIN US

OUR BTST JP ASSOCIATES watch out for today

Today, Nifty has support at 5,765 and resistance at 5,908 and BSE Sensex has support at 19,529.50 and resistance at 19,691.

Turnover in F&O segment rises

Nifty December 2007 futures were at 5889, at a premium of 30.65 points as compared to the spot closing of 5858.35.

The NSE's futures & options (F&O) segment turnover was Rs 56,330.05 crore, which was higher than Rs 54,816.50 crore on Monday, 3 December 2007.

Stock on radar HCC,ESSAR STEEL, BATA INDIA,TTML

Buy TTML for a target of 58 and above for 5 days

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Tuesday, December 4, 2007

Midcaps and only midcaps will be the highlight of this month

OUR ESSAR OIL , HIND OIL , ISPAT , MERCATOR LINE , HITTING OUR TARGET EVERYDAY

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The market is expected to open on flat to positive note today;
traders are advised to assume long position if Nifty sustains
above 5850 levels for upside targets of 5900 and 5950 levels.
Alternatively, the y can assume long position from lower support
of 5800 levels with a final stop loss placed at 5780 levels.

Nifty December futures open interest remained flat with premium decreased to 11.45 points from 40.75 points suggesting closure of long and fresh build up
of short positions. On the options front both call and put option
has witnessed accumulation of long position indicating volatility
is expected increase in the near term; Nifty 6200 call option
seen highest addition of 3 lakh shares in open interest

Alok Industries a huge rally in the offing due to demerger).

Watch out for TATA TEA, WELSPUN GUJARAT, ESSAR SHIPPING,RNRL, INOX LEISURE,
GUJARAT NRE COKE

JHS Svendgaard(Rs.57.60) is likely to shoot up towards 70 levels.

Rcom Buy Above 720 sl 710 for target 735-738 for 1-2 Days
Buy MTNL for a target of 190 and above for 1-2 days

We have a Rangebound view in Nifty. We recommend a Short Strip strategy:
o Sell Two Nifty Dec 5400 PE @ 78 - 82
o Sell One Nifty Dec 6000 CE @ 100 - 104
o UBEP: 6262
o LBEP: 5138
o SL: 350 (Total Premium)
o Investment: Rs.95,000 (Approx)
o Time Frame: 8 – 10 Days

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Monday, December 3, 2007

$200 million pulled out of India

Indian markets are likely to open in the positive and Stock specific activity is likely to continue with sector. Nifty looks all set to break the resistance in 5840 –5850 range. Then usual profit booking which we see again, Global markets are in better shape and oil prices are hovering around the US$89 per barrel mark. Auto stocks will attract some attention due to the release of the monthly sales data. Maruti has reported strong numbers. Hero Honda has managed to beat the negative growth trend in the two-wheelers segment. IFCI will be in action as a financial daily reports that it has decided to sell up to 20% stake to IFC, the World Bank's private arm.

Reliance Energy will remain in the limelight. The promoters have decided to inject Rs80bn in the company to help it fund the two UMPPs at Sasan and Krishnapatnam

Realty is likely to perform this month

Mid cap stock on fire watch out for it to know more subscribe

RNRL to see more than double centuary in december

ADAG owned Reliance Energy is said to be recieving Rs.8,000 crores from the promoters.

GMR Infrastructure is eying for an international airport in the central Europe. The stock is likely to be in action in the coming days

Land sale is likely to ignite MTNL(Rs.171.85) stock. Watch for a big move above the double century mark.

Alok Industries Buy for a target of 85 and above for 5 days

Stock to watch RELIANCE ENERGY,HIND OIL,MERCATOR LINE, HOTEL LEELA

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Friday, November 30, 2007

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MARKET IS ALL ABOUT PATIENCE GAME

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Markets may continue showing divergent trend for some more time as the roll over of future positions for Dec series is not encouraging. Wait for some time for fresh positions.Indian stock market is expected to show volatile movement after lunch

No long calls today
Positional call - Videocon target 505 ,Essar oil for target 235

Government today announced more sops to the exporters reeling under string rupee pressure.Watch for the exports driven sectors today for good momentum

RIL plans to investment Rs 17,000 crore in oil and gas exploration over the next few years.

OCL India(Rs.301.90) is likely to reach 400 levels before the merger.