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OUT BTST - RCOM ,ICICI ,SIEMENS ,STERLITE ,GITANJALI

TODAY PICKS - KEI INDUSTRIES,KS OIL,JAYANT AGRO ,IT STOCKs

Today, Nifty has support at 6,213 and resistance at 6,374 and BSE Sensex has support at 20,634 and resistance at 21,102

On Monday the FIIs stood as net buyer both in equity and debt. The gross equity purchased was Rs4,549.40 Crore and the gross debt purchased was Rs730.80 Crore while the gross equity sold stood at Rs4,040.60 Crore and gross debt sold stood at Rs209.80Crore. Therefore, the net investment of equity reported was Rs508.80 Crore and net debt was Rs521Crore

Results Today: Kopran, Patel Engineering, Prism Cement, Shree Cement, Supreme Industries and TVS Electronics. Shares of Refex Refrigerants might gain as the company has reported a 53% growth in topline and 47% in the bottomline for the quarter ended December.

News Snippets:

ICICI Bank and ADAG Group are planning to set up syndicates in London’s Lloyd’s Market, one of the larges reinsurance markets in the world.

The Power Ministry has asked Reliance Power to advance commissioning of units at Sasan UMPP.

Pantaloon Retail is planning to increase Future Money outlets from 95 to 400 by 2010

ICICI Bank is planning to list its investment banking and broking subsidiary, ICICI Securities.

The Government’s move to allow GAIL to market entire PMT gas has impacted gas supplies to GSPC and Gujarat Gas.

Reliance Energy and GMR are the only Indian companies short listed for buying US$2bn Tuas Power owned by Temasek.

ADAG is to tie up with US lignite miner, North American Coal Corporation to ensure fuel supply to its 28,200 MW projects.

Gitanjali Gems has purchased ‘Nakshatra’ brand from Diamond Trading Company for Rs1bn.

Nitco Tiles is planning to set up a new tile manufacturing unit in Gujarat.

The proposal of merger of State Bank of Saurashtra with the State Bank of India will be taken up by the Cabinet on January 10.

Fortis Financial Services is planning to make an application to RBI to surrender its NBFC licence.

Sical Logistics has received Madras High Court approval to demerge its non-logistics business into a separate subsidiary.

GNFC plans to invest Rs780mn for setting up six eco-friendly wind power generators.

RNRL may buy out some mines in Indonesia and Australia for dedicated fuel supplies to support the Krishnapatnam UMPP.

Cranes Software has announced the acquisition of US based specialized auto consulting and product development firm, Engineering Technology Associates.

States have arrived at a consensus to bring about uniform duty structure for liquor across the country.

The Finance Ministry is understood to have allocated Rs310bn for fertilizer subsidies and concessions during FY09.

Cement manufacturers in Tamil Nadu have agreed to take a decision on reducing prices before February 10.

FDI inflows into the country surged to US$15.7bn in FY07 and the target for FY08 is US$30bn.

The Empowered Group of Ministers will meet on January 17, to discuss fuel price hike.

ULCRA would be completely scrapped in the country as AP, West Bengal and Jharkhand agree to repeal the act.

The Government has denied plans to privatize Dabhol project.

The Government would consider tax sops to promote low cost housing in the country.

The Maharashtra Government has agreed to withdraw export duty on ethanol.

Newsprint prices may increase by ~20% yoy in FY08.

The Government is set to import 1.2mn tons of vegetable oils in the first quarter of 2008.

BUY IT SECTOR IN DIPS

NIFTY - Moving Averages — The 50 dma = 5870, 20 dma = 6021 and 10 dma = 6089. The index is trading above its averages; declines during the week should find support around the averages
Resistance — The index faces resistance around 6300 levels.

Conclusion — Intra-week declines should find support around 6185-6089 band

Business Standard reports that 4 big banks State Bank of India (SBI), ICICI Bank, Bank of Baroda (BoB) and Bank of India (BoI) are set to book mark-to-market losses on the exposures to CDO's with ICICI being the major loser with $1.5 billion exposure to subprime. We have to wait for confirmation as ICICI Bank denied the same last time on simillar reports. Tata Motors will be rolling out the much hyped one lakh car and the stock is likely to show action. Traders stay away from this market as volatility will squeeze your pockets

Gammon India(Rs.777.05) is looking great for 4 figures

HOT PICKS - ELDECO HOUSING,SATHAVAHANA ISPAT,HINDMOTORS
What the FIIs are doing

FIIs were net buyers of Rs160.1mn (provisional) in the cash segment on Friday while the local institutions pumped in Rs5.07bn. In the F&O segment, foreign funds were net sellers of Rs9.08bn.

On Thursday, FIIs were net buyers of Rs7.25bn in the cash segment. Mutual Funds were also net buyers of Rs4.9bn on the same day.

News Snippets:

Jet Airways to go for a private placement or QIP to dilute promoters stake by 5%.

M&M may pull out of the Rs40bn three way Chennai joint venture with Renault and Nissan.
Chrysler has initiated negotiations with M&M for a partnership in India.

ONGC seeks Rs160bn worth of incentives for its proposed 15mn ton pa refinery at Kakinada.

London based Caparo group to invest Rs35bn to set up an automotive and aerospace components park in Andhra Pradesh.

SBI, ICICI Bank, Bank of Baroda and Bank of India to book mark-to-market losses on the exposures of their foreign offices to credit derivatives.

Reliance Industries seeks a minimum supply of 3.6mn scmd of gas for its petrochemical plants from Panna-Mukta and Tapti fields.

BSNL to form a separate tower company early this year; may lease out 40,000 towers to private companies.

ADAG plans to bring all its proposed overseas power generation projects under Reliance Power; group evaluates options to make power equipment.

SAIL scouting for new iron ore mines; applies for prospecting and mining leases.

BHEL plans to boost exports six-fold by 2012.

Gitanjali Gems on look out for more buy outs in US, the largest jewellery market in the world.

Reliance Power may invest in Ratnagiri Gas and Power if private companies allowed in the erstwhile Dabhol project.

Indian Oil’s 330km Paradip-Haldia crude oil pipeline to go on stream in six weeks.

Reliance Industries may offer rigs to ONGC in two or three locations in 2008-09 on a sharing basis.

Gujarat Fluorochemicals will sell half the poly tetra fluoro ethane (PTFE) output of its Dahej plant to an European collaborator.

HPCL has raised Rs2.9bn from sale of oil bonds.

PE firm General Atlantic may buy 10% stake in Essar Power.

PE firm would pick up 15% equity stake in Mahindra Forgings.

PFC plans SPV to offer consultancy services across various sectors.

Canara Bank may acquire a bank this year.

DoT doubts Spice Telecom’s eligibility for licenses in 20 circles on lack of the required net worth.

Indian Railways hikes iron ore freight, less than two months prior to railway budget.

Inflation rises to 3.5% for week ended December 22nd, as vegetables become costlier.

Ethanol may get ‘declared goods’ status in Budget.

Fuel prices may rise after January 17th when PM’s ministerial panel on commodity prices meets to approve the hikes.

Government expects investments worth Rs2tn in the aviation sector in the next 10 years.

Government plans to set up a national electricity fund with a corpus of Rs1tn for investment in the transmission and distribution sector.

Government to earn Rs70bn from spectrum fee in 2008-09, without impacting tariffs.

Himachal Pradesh Government invites bids from domestic and global companies for 1,481MW hydel units.

Finance Minister asks public sector banks to cut deposit & lending rates by 50bps.

OUR PICKS

GMR Infra
GMR Infra consolidated in a range of 235-
252 levels last week.The 14-day RSI
indicates the stock might witness an
upside breakout of the range in the
coming sessions which will attract fresh
buyers. The stock is likely to face immediate
resistance at around 270 levels. If it is able
to sustain above that levels, we might see
it testing higher levels of 298-300 in a medium-term
scenario. The 50-day EMA level is placed at around 225
levels which is unlikely to be pierced in the coming sessions.
The 21-day EMA level is placed at around 240 levels while
the 8-day EMA level is placed at around 243 levels.
Investors are advised to accumulate the stock in the range
of 245-250 levels for a short term target of 298-300. All
long positions in the stock should be protected with a
stop loss placed below 225 levels on a closing basis.

Tata Steel
Tata Steel has been trading firm for the last few trading sessions, and
closed at all time high levels of 932 levels. Futures have seen rollover
of long positions close to 95 percent. Call options of 940, 960 strikes
have seen addition of open interest, indicates expectations of further
upward movement and in put options 920 and 900 strikes added open
interest indicating the expectations of a limited downside in the stock
price. The following strategy is recommended on Tata Steel

Market will See - JOIN TO KNOW MORE

Trading around 6185 — The index is trading around 6185 levels (high of 13 December 2007), a close above the 6185 level will see index exhibit further strength.Intra day index has support around 6126-6100 levels, intra day declines
should find support around these levels. On the upside resistance levels are 6230- 6270. Intra-day strength can be expected on index sustaining above 6185 levels.

Power stocks glittered on dalal street yesterday with majority of the scrips registering thumping gains across the board. The leaders include NTPC, Reliance Energy,Tata Power and midcaps like Indowind Energy and Torrent Power gained considerable with the latter locked at 20% upper circuit limit. Chennai based BGR Energy flared up nearly 88% from the IPO price while another IPO Burnpur Cement ended the day with a 315% gain to the IPO price. Midcaps continued the upside journey though the markets showed hightened volatility which is expected to further increase in the coming days. Time to take positions in the IT pack with the results round the corner.

Bullish & Bottom fishing counters
Powergrid, AartiDrugs, Concor, HPCL, Jpassociat, RPL, KNL, Selan,
Apil, GMRInfra, HeroHonda, Tatapower, HLL, Ashokley, RIL

Great Offshore(Rs.1,020.20) is undervalued compared to peers. Watch for good rise from these levels.

Short Term Trading Calls
Buy Petronet LNG with stop loss of Rs 110 for a target of Rs 146.

Buy Power Grid Corporation with a stop loss of Rs 140 for short-term target of Rs 170

Buy Neyveli Lignite with stop loss of Rs 240 for a target of Rs 325.

LOTS OF OTHER INTRADAY,BTST,INVESTMENT CALLS

FOR OUR SUBSCRIBER'S ONLY

Buying in Infosys is the best bet

The FIIs on Wednesday stood as net buyer in equity while net seller in debt. The gross equity purchased was Rs1,437.60 Crore while the gross equity sold stood at Rs1,295.30 Crore and gross debt sold stood at Rs3 Crore. Therefore, the net investment of equity reported was Rs142.30 Crore and net debt was (Rs3Crore).

Today, Nifty has support at 6,052 and resistance at 6,261 and BSE Sensex has support at 20,074 and resistance at 20,719.

Nelco(Rs.167.15) bagged new orders. Definitely a cheap stock in this overvalued midcap market.

Ahluwalia Contracts India Ltd ( 338.15 )Looks hot for buying

News Snippets:

The Government is considering a hike of Rs4 and Rs2 per litre for petrol and diesel respectively in February.

MTNL is likely to get pan-India mobile license.

LN Mittal in talks with HPCL to make joint bids for offshore oil & gas blocks.

Future Capital fixes its IPO price band at Rs700-765 for its IPO.

RIL and ONGC to face competition from LN Mittal for NELP blocks.
ONGC revives Kakinada refinery after shelving it in 2006.

Bharti Airtel cut its local call rates to a flat Re1 per minute.

Retail investors may get an option of paying 25% at application stage in Reliance Power IPO.

Auto companies report low sales in December

Rotterdam Port in talks with L&T for investing in a Greenfield project in India.

The JV between Verizon and Videocon to start offering internet services; awaits security clearance.

Nuclear Power Corporation may team up with BHEL to build turbines.

ONGC to pay subsidy of Rs170bn in FY08.

Tata group plans to transfer Tata Powers’ strategic electronic division (SED) to Nelco.

Oil PSUs to buy 10% stake in Oil India (OIL) at issue price

Essar led consortium likely to bag Ratna and R-series oilfields.

ONGC and Hinduja plan to invest US$10bn for developing oil and gas fields in Iran.
Petronet’s upcoming LNG terminal in Kochi will be delayed, to be ready by 2011.

Oil PSUs plan to open 3,000 outlets this year.

Abu Dhabi awards US$460mn contract to Japan’s Sumitomo, Germany’s Salzitter and Jindal Saw of India.

UB to seek out a JV partner to grow its Rs15bn business.

Religare to sell stake in its NBFC arm, Religare Finvest to Societe Generale, Goldman Sachs, Blue River Capital and a couple of other PE funds.

Ashok Leyland develops multi point fuel injection engines for CNG carriers.

Parsvnath gets a go ahead from Haryana Government for its IT Park.

Sebi has ruled out flexibility for PSUs in complying with Clause 49.

Broadcasters to receive duty cuts in line with IT and telecom sectors.

Tamil Nadu to nationalize cement plants if companies don’t cut prices.

The Government says Goa's decision on seeking de-notification of three SEZs legally untenable.

The Government plans to bear 80% of the cost of generating solar power.

Singapore Exchange plans launch of BSE products.

The Government may revive ailing fertilizer firms.

The Government may clear civil aviation policy today.

The Government allows 28 new SEZ approvals, including SAIL's Salem SEZ in Tamil Nadu.

Technical picks

Reliance had been consolidating lately
within a range of 2800-2950. However, it
surged in the Friday's session on the back
of increasing volumes. The higher band
of 2950 levels had been witnessing
increased selling pressure followed by
renewed buying interest at the bottom
levels of 2800. The leading indicator like
14-day RSI has given a strong buy signal
as it stabilized around the 60 levels of the
100 scale and cut the trigger line, indicating
significant surge from the current levels.
The stock is currently trading above all the
major moving averages and the 30-day
EMA is placed around 2800 levels which
should act as a strong support. This stock
is an excellent pick from the current levels.
All long positions in the stock should be
protected with a stop loss placed below
2750 levels on a closing basis for upside
targets of 3100 and 3200 levels.

Axis Bank had been consolidating lately
around its rock solid support zone of 900
levels. The stock had witnessed significant
rally in the penultimate month during
which it made an all time high of 1025
levels. However, profit booking forced the
stock to test lower levels of 900-950. The
stock has broken out above the
consolidation band and further decline in
the stock is largely ruled out. The 14-day
RSI is hovering around 65 levels and has
generated a strong buy signal from the
current levels. Immediate resistance is
placed at around the all time high levels.
A sustained close above that level will induce
fresh buying interest in the stock, which might
guide it to test further highs of 1100
and 1150 levels. The 50-day EMA level is placed
at around 900 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 950-1000 levels for a medium-term target
of 1100 and 1150 levels. All long positions in the
stock should be protected with a stop loss placed below
885 levels on a closing basis.

Pre Market Watch

Range-bound trading — The index exhibited range-bound trading in the 6111- 6060 band throughout the day’s trading session. On the upside, index faces resistance around yesterday’s high at 6111. Intra-day strength can be expected above the 6111 level and index could test 6185 levels on the upside. On the downside, intra-day support is around 6060, and a break below the 6060 level could see the index drift down intra day. Lower support levels are 6040-6000.

We once again caution investors not to get into low priced stocks or penny stocks with out fundamentals. Many stocks are witnessing explosive growth in the PE ratios and Q3 results have to justify the prices.

Varun Shipping(Rs.99.95) is in a no resistance zone. Watch for a 20-30% gain from these levels

Reliance Energy might get a boost from the SEBI's decision to clear Reliance Power's IPO. DLF is planning to hive off various businesses that will become separate companies in a measure that will increase the shareholder value. Indian market is likely trade down today though there will be trading oppurtunities in midcaps.

We have a Moderately Bullish view on Tata Steel . We recommend a Bull Call Spread strategy:
o Buy One Tata Steel Jan 920 CA @ 38 - 40
o Sell One Tata Steel Jan 960 CA @ 28 - 30
o BEP: 930
o Tgt: 960
o Investment: Rs.85,000 (Approx)
o Time Frame: 6-8 Days

Watch : Ioc,Cairn,Indiainfo,Indiabull,Cinemax buy in dips only.

Stocks in News:

SEBI clears decks for Reliance Power IPO by disposing complaints against the offer and asking promoters to lock-in entire 20% of their contribution for five years.

DLF plans to raise US$5bn over the next three years by listing five of its business units.

NTPC has signed agreements for loan and bond subscription worth Rs20bn LIC.

L&T plans to invest Rs25bn in building shipyard and expanding its engineering manufacturing unit.

GMR Infrastructure is considering listing GMR Energy on domestic bourses to fund its upcoming projects.

Unitech is close to announcing two joint development deals in Hyderabad and Chennai.

Reliance Communication slaps legal notice to DoT asking to freeze allocation of additional spectrum to existing GSM players.

ONGC Videsh strikes crude in Arabian Gulf Block off Qatar.

BOI gets board approval to raise Rs15bn via QIP. The floor price has been fixed at Rs359 per share.

GSPL and a subsidiary of Gujarat State Petroleum Corporation plans to invest Rs25bn on new pipelines.

Dabur India to foray into milk-based beverage segment.

Yamaha is likely to team up with Bajaj to create a common engine platform for high-end bikes.

L&T to hive-off concrete business into separate entity.

BoB raises Rs5bn through issue of bonds.

Bhushan Steel in technical assistance JV with Sumitomo Metal for the Orissa plant.

GSK Pharma to launch two vaccines in India.

Canara Bank ups its open offer price for Can Fin Homes to Rs78 per share from Rs63.

Wipro Consumer Care to provide lighting solutions for retail industry in India.

Infosys plans to offer wealth management solution in the domestic market.

JSW Steel and Essar Steel to set-up retail outlets for showcasing products.

Combined output growth of six key infrastructure industries was lower at 4.5% in October Vs 9.9% last year.

The Government is likely to scrap service tax on business and first-class air tickets for international journeys. It is also likely to halve duty on ATF from 10% to 5%.

The Railway Budget is likely to bring down freight on key commodities including steel, cement and petroleum products by 5%.

Mobile companies may have to shell out a higher percentage of their annual revenues as spectrum charges.

Leading tea players have hiked prices and the remaining companies are expected to follow suit.

Trai has asked I&B ministry to specify the date on which the CAS would become mandatory in 55 of the country’s top cities.

Have a great trading day