Fall of 200 points and more at opening

Forget USA even India is slowing down
Sell Steel sector stock( Tata steel, Sail,Hindlco)

Visit for more details at
http://www.freewebs.com/jgs-investments/marketwhisper.htm

We need fall today 200+, We advised bindaas short Opening

BTST NIFTY PUT WILL ROCK TODAY,We will advise clients when to buy for upmove today

We expect the market to open soft in the wake of the weakness in US and Asian markets. The trend thereafter will partly hinge on global cues. Tomorrow, we will get the weekly inflation data. A fresh spike there could deal another blow to the sentiment.

Indian ADRS closed in red. Satyam, Infosys and Wipro fell by (9.37%), (3.60%) and (2.21%) respectively. ICICI bank and HDFC bank dropped by (5.35%) and (3.05%) respectively.

The FIIs on Wednesday stood as net seller in equity. The gross equity purchased was Rs4,610 Crore while the gross equity sold stood at Rs5,782.40 Crore.

Therefore, the net investment of equity reported was (Rs172.40 Crore).Today, Nifty has support at 4,712 and resistance at 4,914 and BSE Sensex has support at 15,534 and resistance at 16,286.

V Guard Industries having issued shares at Rs 82 per share, is likely to list at Rs 90, and profit booking is advised above this level.

Corporate Front Page

Vedanta Resources to set up a large aluminum complex at Bihanbag, Asansol, at an investment of Rs200bn. (ET)

DLF REIT to raise Rs20bn from a clutch of PE investors. (ET)

TCS forms JV with Thai Re-Insurance Public Corporation to offer IT outsourcing services on an ASP model to insurance providers in Thailand. (BL)

Bharti Airtel signs a US$100mn investment agreement with the Board of Investment of Sri Lanka to begin operations there. (ET)

Ashok Leyland plans to invest Rs60bn to shore up CV business in the next few years. (ET)

NTPC Board approves an investment of Rs73.4bn in 1,920 MW Barh super thermal power project stage-II in Bihar. (FE)

Tata Steel to source chrome ore from Iran for its upcoming ferro chrome plant in South Africa. (BS)

IOC to invest Rs5bn in R&D during the 11th five-Year plan ending 2012. (BL)

M&M’s arm, Mahindra Intertrade opens an electrical steel plant in Vadodara, Gujarat. (BL)

Alok Industries has taken 50% stake in Ashford Infotech through a 100% subsidiary for joint development of realty projects. (BS)

Hikal to invest Rs2bn to set up four new manufacturing facilities in Bangalore and Mumbai and a R&D centre in Pune. (BS)

Gujarat Gas Company expects 10% drop in the availability of natural gas from Panna-Mukta-Tapti source from April. (BL)

Voltas eyes 20% share in AC market by adding 1,000 new channel partners to the distribution network. (DNA)

Gayatri Projects to enter the urban infrastructure and water treatment business segments. (DNA)

Everonn Systems plans to raise US$50mn to carry forward the expansion in the virtual classroom segment. (ET)

Tanla Solutions is in acquisition talks with 3-4 US-based firms with annual revenues in the range of US$30-70mn. (DNA)

Godfrey Phillips launches ‘Fundamint’ brand of mouth freshner. (DNA)

Goldstone Tech plans to roll-out IPTV services in 11 countries by the end of FY09. (BS)

Mumbai-based property developer, Oberoi Constructions, is planning Rs40bn IPO by the year end. (BS)

Piaggio eyes 5-fold increase in its Ape Truk (sub-one-tonne light CV) sales. (BS)

Shriram Properties to invest Rs5bn to develop mid-income housing projects across India over next 2-3 years. (ET)

Blackstone has picked up minority interest in Titagarh Wagons at Rs672/share. (ET)

Economic News

The Government has notified new FDI norms for sectors including PSU oil refineries, industrial parks, credit information companies, titanium mining, commodity exchanges and civil aviation. (BL)

Royalty on iron ore mining may be changed to an ad Valorem rate of 10% from the current fixed rate of Rs13-27/ton. (ET)

Cement sales for the month of February were up 13% yoy. (BL)

Indian battery industry is set to double by 2011, says Exide Industries. (BL)

India's Travel & Tourism revenues are estimated at US$100bn in 2008 and may increase to US$276bn by 2018. (ET)

Global PC shipments to grow 12.8% this year, as per IDC. (BL)

WE WILL REACH OUR TARGET 4950

OUR BTST WILL ZOOM TODAY
Despite Weak Global Market In past we are earning in market
Everyday, We People are Trying Hard to Deliver You , Excellent TRADING CALLLS

We're Expecting our this FRIENDSHIP , LIFE LONG

Visit for today update at http://www.freewebs.com/jgs-investments/marketwhisper.htm

BSE Sensex is likely to gain no less than 500 points today

Gap up open ,Majority of the beaten down stocks are likely to see action and as said the two close above the technical level

OUR TRADING CALL OF JP ASS

ALSO FLARED LIKE AGNI MISSILE AND HIT 257 MARK, OH GOD, WHAT A GAIN, WHAT A GAIN.



Shares of Rural Electrification Corp. (REC) will get listed today. The public sector term lender for rural power projects had fixed the issue price at Rs105 per share. The issue was subscribed by nearly 28 times amid dire times for the primary market. The stock may benefit from the general feel-good and good prospect for the power sector.

FIIs were net sellers of Rs5.39bn (provisional) in the cash segment yesterday while local funds pumped in Rs3.03bn. In the F&O segment, foreign funds were net buyers of Rs6.22bn yesterday. On Monday, FIIs were net sellers to the tune of Rs11.38bn in the cash segment. Mutual funds were net buyers of Rs3.36bn on the same day.


Corporate Front Page

Reliance Entertainment plans to launch 20 television channels. (Mint)
NTPC expected to sign agreement with NHPC, PFC and TCS to form a second electricity exchange in India. (Mint)
GMR Infrastructure has confirmed closure of commercial operations of the Begumpet airport in Hyderabad from March 16. (Mint)
Marico has sold its processed food division, SIL, to Denmark’s Good Food group. (Mint)
Tata Steel’s third quarter profit including that of Corus group stood at Rs14bn. (Mint)
ING Vysya bank seeks to double deposit base and raise customer base over five times in two years. (Mint)
Government says the proposed JV of BHEL and NTPC to be called NTPC-BHEL Power Projects. (BS)
Bajaj Hindustan plans foray into molasses based chemical business. (BS)
Gail plans new arm for city gas supply, to be set up in 2-3 months. (BS)
TCS targets US$2bn revenues from emerging markets by 2011-12. (BS)
Essar group may not pitch for stake in Prize Petroleum. (BL)
Exide Industries to double capacity in two years. (BL)
Nicholas Piramal rechristened Piramal Healthcare. (BL)
ONGC to seek further extension for Bengal offshore drilling. (BL)
Celebrity Fashions enters pact with Jeans Knit for plant sale. (BL)
Bongaigaon Refinery gets shareholders' approval for merger with IOC. (BL)
BSNL repays Rs30bn government loan. (BL)
Satyam in pursuit of Oracle based deals in area of government, civil aviation and financial services. (BL)
United Spirits to increase focus on premium brands; aims at 100mn cases in two years. (BL)
Apollo Tyres’ diversification plans in Kerala hits roadblock. (BL)
Allied Digital to acquire 51% stake in Bangalore-based Digicom for Rs200mn. (ET)
Nicholas Piramal looking for acquisition opportunities in US and Europe to expand its contract manufacturing biz. (ET)
Nicholas Piramal may sell small stake in its research company to private equity funds. (ET)
Rodere Holdings, the Cyprus-based private equity investor, to invest Rs2bn in Orbit Corp. (ET)
Ratnagiri Gas & Power plans to raise funds via IPO. (ET)
Delhi-based realty firm BPTP outbids DLF to bag largest land deal worth Rs50.06bn in Noida. (ET)
PNB plans to sell nearly 26% stake in its subsidiary PNB Housing Finance. (ET)
SBI may raise US$200-500mn in bonds denominated in Malaysia ringgits for international operations. (ET)
Bajaj Auto to change name to Bajaj Holdings and Investments and will exit from benchmark Sensex and Nifty from March 14. (FE)
Centrum, Future Holdings enters in a strategic partnership. (FE)
Tata Chemicals to invest Rs7.5bn in the next three to four years to foray into Ethanol sector. (FE)

Economic News

Banks operating in India had US$3.16tn of derivatives on their books as on December 2007. (Mint)
Unions resort to non-cooperation to protest grounding of old airports. (Mint)
Government mulls lower user fees at new private airports. (BS)
DoT to keep landline, internet services revenue out; while calculating spectrum fee. (ET)
RBI may ban hiring of loan recovery agents by banks. (ET)
Government to act on a proposal to attach securities lying in frozen Demat accounts of investors if PAN not submitted. (ET)
Commerce and Industry minister would provide some relief to sectors hit by rupee appreciation in the forthcoming Foreign Trade Policy (FTP). (FE)
Government may opt for public private partnership model in housing sector. (FE)

In House :

Nifty at a resistance at 5050 and 5370 levels.

Cash : Buy REL above 1288 TGT 1390 with S/L 1265

Cash : Buy Infosys above 1429 TGT 1474 with S/L 1406.

Future : Buy Tata communication above 484 TGT 500 with S/L 478

Future : Buy REL above 1290 TGT 1350 with S/L 1270

Reliance , Rel capital TISCO and L & T looks good.


Out House :

Markets at a support of 15786 & 15858 and resistance at 16543 & 16661 levels .

Buy : Tisco and Sail

Buy : RPL & MRPL

Buy : Hindalco & Nalco

Buy : RIL & RelCap

Buy : Sterlite & ITC

Buy : LT & Titan

Buy : IBulls & JPAsso

Dark Horse : RIL , ITC , SBIN , LT , Aban , Sail , Sterlite , Noida & HLL

BSE Bullet : LKPMerc & Coreproject

All the emerging markets ended sharply higher. The Bovespa in Brazil surged 3.95% to 62,367 while the IPC index in Mexico jumped 4.5% to 29,466. The RTS index in Russia was up 2.3% at 2058 while the ISE National-30 index in Turkey soared 5% to 53,884.

Bulls hope to build on gains

After being on the receiving end for several trading sessions, markets staged a recovery on Tuesday with the 30-share benchmark Sensex gaining 1.2% ending above the 16k mark. Major laggards were the telecom companies, Bharti Airtel and Tata Communications, Maruti Suzuki and Satyam. The IT sector as a whole was under pressure. The NSE Nifty closed at 4,865 gaining 65 points. Among the 50-stocks of Nifty index, Tata Power, GAIL and Siemens were the top gainers, spurting over 6% each.

Overall about 2,101 stocks advanced, 611 stocks declined while 35 stocks remained unchanged. Among the BSE 30 index 20 stocks advanced while 10 stocks declined. RIL, L&T and DLF were among the major gainers, while; ICICI Bank, HDFC and Bharti were among the major laggards.

BEML rallied by over 5% to Rs1178 as reports stated that it would finalise its German JV to make wagons and other railway components by end-March. The scrip touched an intra-day high of Rs1194 and a low of Rs1097 and recorded volumes of over 18,000 shares on NSE.

GAIL surged by over 7% to Rs421 after the company said that it would spend Rs23bn this financial year. The scrip touched an intra-day high of Rs437 and a low of Rs391 and recorded volumes of over 28,00,000shares on NSE.

L&T surged by over 7% to Rs2916 after the company said that it secured Scada Systems contract from ONGC. The scrip touched an intra-day high of Rs2950 and a low of Rs2650 and recorded volumes of over 14,00,000 shares on NSE.

JSW Steel slipped by a percent to Rs910. According to reports, the company would issue one equity share for every 22 held in Southern Iron and Steel Company for merger of the two companies. The scrip touched an intra-day high of Rs948 and a low of Rs909 and recorded volumes of over 5,00,000 shares on NSE.

Lanco Infratech surged by over 4% to Rs390. The company on Monday announced that it awarded Rs500mn contract to a unit of Punj Lloyd Ltd to build a facility in the southern city of Hyderabad. The scrip touched an intra-day high of Rs404 and a low of Rs352 and recorded volumes of over 19,00,000 shares on NSE.

REL gained by 2% ton Rs1287 after reports stated that 35 lakh shares of REL change hands on BSE at Rs1247. The scrip touched an intra-day high of Rs1308 and a low of Rs1211 and recorded volumes of over 47,00,000 shares on BSE.

After staging a gradual come back on Tuesday, bulls would hope to hang on to their gains. Global scenario also looks a bit supportive with the Asian markets closing on a positive note and the European markets also hanging on to their gains. For tomorrow, markets may carry on the momentum. However, one should not over leverage their positions and be cautious as you never know what can hit you from which part of the world while you are sleeping.

Intra-day volatility still exist

Intra-day volatility may see the market swing both ways and hold back the local players from taking fresh positions. The market may slip initially following overnight slump in the US markets and weak Asian indices in morning trades. As the overall sentiment remains bearish, the market may not overcome from early weakness. The Nifty may witness resistance at 5100 on the upside while the near-term support at 4620 is seen on the downside. The Sensex has a likely support at 15700 and could witness resistance at 16150.

Despite a sharp fall in the early trades, markets staged a stellar come back. The benchmark Sensex recovered over 500 points and Nifty index recouped over 150 points from their days low. This swift recovery was seen after the momentum stocks like RPL, Bharti, ACC, Bajaj Auto and Rcom witnessed buying interest. Also a recovery in the Hang Seng index in Hong Kong lifted to sentiments partially. Finally, the 30-share Sensex closed at 15,923 losing 51 points. While the NSE Nifty added 29 points to close at 4,800.

Overall about 753 stocks advanced, 1,910 stocks declined while 44 stocks remained unchanged. Among the BSE 30 index 16 stocks advanced while 14 stocks declined.

Among the BSE Sectoral indices; BSE Metal index (up 2.2%), BSE Oil & Gas index (up 2%) and Auto index (up 0.5%). However, the BSE Capital Good index (down 4.8%) and the BSE Power index (down 2%).

Ceat rallied by over 12% to Rs140 after the company said that it would sell Mumbai Land for Rs1.3bn and would develop 6.91 acres of land with Ashford Infotech in Mumbai. The scrip touched an intra-day high of Rs150 and a low of Rs115 and recorded volumes of over 40,000 shares on BSE.

L&T plummeted by over 8% to Rs2728 after media reports stated that the company’s overseas arm may incur a loss of rs2bn from commodity trading. The scrip touched an intra-day high of Rs2950 and a low of Rs2610 and recorded volumes of over 34,00,000 shares on NSE.

Hindustan Zinc slipped by 3.5% to Rs575. The company announced that it increased lead prices by Rs1,300, or 0.9%, to Rs149,600 per metric ton from March 8. The price of zinc was left unchanged at Rs127,300 a ton. The scrip touched an intra-day high of Rs600 and a low of Rs558 and has recorded volumes of over 1,00,000 shares on NSE.

Mastek slipped by 0.5% to Rs264 as the company on March 08, 2008 announced that it acquired Systems Task Group (STG) International Ltd. This acquisition is the second such initiative by Mastek during the current financial year, and follows the acquisition of another insurance-focused IT Company Vector Insurance Services in July 2007. The scrip touched an intra-day high of Rs264 and a low of Rs247 and recorded volumes of over 15,000 shares on NSE.

Gitanjali Gems slipped by over 6% to Rs264. The company announced that it acquired "Renaissance Retail Venture Pvt Ltd" (RRVPL) through its wholly owned subsidiary Gitanjali Lifestyle Ltd. The company announced that it set up subsidiary for gold loans. The scrip has touched an intra-day high of Rs273 and a low of Rs258 and recorded volumes of over 2,00,000 shares on NSE.

UTV Software gained by 1.5% to Rs810 after the company announced that its founder Screwvala has raised stake in the company. The scrip touched an intra-day high of Rs810 and a low of Rs785 and recorded volumes of over 77,000 shares on NSE.

BEML also recovered by almost 3% from its lows and ended down by only 1% to Rs1118 after the company said that it would set up Assembly plant in Brazil for Earthmoving gear and its German Venture will build rail coaches, equipment. The scrip touched an intra-day high of Rs1150 and a low of Rs1072 and recorded volumes of over 16,000 shares on NSE.

KEC International jumped by over 13% to Rs770 after the company said they won US$120.7mn contract from Saudi Electric. The scrip has touched an intra-day high of Rs815 and a low of Rs617 and recorded volumes of over 16,000 shares on NSE.

Dr Reddy’s Lab gained by a percent to Rs575 after the company said that it entered into drug discovery collaboration with 7TM Pharma. The scrip touched an intra-day high of Rs579 and a low of Rs476 and recorded volumes of over 1,00,000 shares on NSE.

Gujarat Fluorochemicals surged by over 8% to Rs207 after the company said that it would consider buyback of shares ion March 21. The scrip touched an intra-day high of Rs220 and a low of Rs183 and recorded volumes of over 74,000 shares on NSE.

Aban Offshore was down by over 5% to Rs3461. The company said that it would raise Rs1.94bn selling shares. The scrip touched an intra-day high of Rs3612 and a low of Rs3399 and recorded volumes of over 1,00,000 shares on NSE.

Whats In

Private oil Companies, Reliance Industries, Essar Oil and Shell India, have filed a joint petition against the PSU oil companies for indulging in unfair and restrictive trade practices in the sale of transportation fuels.

Bajaj Auto Finance may spin off two-wheeler financing business as a subsidiary of Bajaj Auto.

Aban Offshore plans to raise funds to the tune of Rs1.94bn through issue of securities under private placement basis.

Videocon Industries is making an initial investment of Rs60bn for rolling out GSM services.

JSW Steel will issue one equity share for every 22 held in Southern Iron and Steel Co. for their merger .

Tata Chemicals plans to borrow US$850mn to fund purchase of US based General Chemical Industrial Products Inc.

Sobha Developers plans to take up 12 million square feet of development during fiscal 2008-09 for about Rs22bn.

The Mukesh Ambani-controlled Navi Mumbai SEZ has been charged with indulging in illegal land-filling activity.

Cals Refineries is in talks with BP for a crude supply and product offtake deal.

Triton Corp is close to acquiring a UK based IT &Telecom services firm for a consideration of ~Rs4.8bn.

TVS Motor has re-launched Flame, a 125cc motorbike, with a single-spark plug ignition system.

Reliance Energy's Board has approved the change of the company’s name to Reliance Infrastructure Ltd.

The move to withdraw tax holiday to new refineries will result in lowering of profitability of IOC’s Rs240bn Paradip refinery.

Shah Alloys is reported to be in talks with Posco’s Indian subsidiary, Posco India, for a possible tie-up.

Ferro Silicon and Indsil Electrosmelts have entered into a JV with GoodEarth Group of companies to operate a mine in Indonesia.

M&M group is close to finalizing a JV with an international fresh produce supply-chain heavyweight through Mahindra ShubhLaabh Services.

Electrotherm, an Ahmedabad-based manufacturer of steel and electric bikes, is embarking on a Rs3bn expansion plan.

Ceat expects to hike raise tyre prices by 2-3% in April to offset higher raw material prices.

Maruti Suzuki India has inked a pact with Shriram City Union Finance.

Country Club India is contemplating merging or acquiring its associate companies

Royal Orchid Hotels is all set to open the first Ramada hotel brand in India next month.

RCF plans to earn carbon credits from phospho-gypsum, a by-product of its manufacturing process.

Reliance General Insurance, the third largest player in terms of gross premium, clocked a 125% growth in business last year.

Taj-GVK Hotels would open a star hotel in Chennai, fifth for the Group, in May.

Congnizant has signed a US$05mn agreement with AstraZeneca.

Economic News

The amount of loans to small and marginal farmers that commercial banks, cooperatives and regional rural banks have been asked to waive is likely to be slightly over Rs230bn less than half that estimated by Finance Minister P Chidambaram in his Budget speech.

Tractor manufacturers in north India have decided to increase prices in the next financial year.

The petroleum ministry has asked the finance ministry for clarification on the proposal to withdraw the 7-year income tax holiday on production of oil and gas with effect from April 1.

Telecom Minister A Raja has told Parliament that there is no “contractual agreement” between government and telecom operators to allot spectrum beyond 6.2 MHz.

The RBI has directed banks to permit customers of one bank free use of ATMs of other banks for all transactions from April 1, 2009.

Japan has extended a Rs70.7bn long-tenure loan at low-interest to fund India’s infrastructure investments.

New consumer price index is likely to be launched by May 2009.

Finance Minister P Chidambaram has said he will inform the Parliament on Friday how the government would compensate banks for the losses incurred on account of the farm loan waiver worth Rs600bn.

The Government has postponed the last date of bidding for oil and gas blocks offered under the latest round of Nelp to April 25.

The Government is planning to fund the farm loan waiver package over the next 24 months and at least 25% of the total Rs600bn package will be met through government borrowings.

India's leading GSM-based mobile operators added 5.9mn users in February 2008.

tax holiday for software technology parks is unlikely to be extended beyond March 2009.

Sugar production during Oct-Feb’08 remained almost flat at 16.9mn tons.

Subscribe to know more Add sheth_jg@yahoo.com

NIFTY DAILY BASED :RESI.-4815-4997-5180-5360 SUPORT-4635-4460-4295
NIFTY WEEKLY BASED-RESI-4790-5180-5573 SUPPORT-4395-4020
NIFTY MONTHLY BASED:RESI-4956-5423 SUPPORT-4491--3925

Market is on a deciding level... 4710 - 4720 ....

Break of 4710 and trade below this will be a highly alert signal....

On the downside after break of 4710 I see a minor support at 4630 break of this take can take Nifty to 4400 in near term

On the upside we find a resistance at 4863 break of this can take to 4950

Trading Strategy --- Not necessary to trade everyday to be safe better avoid the day, because tomorrow may take any side. In both the cases (buy or sell) you can be trapped, if playing either Hedge it

Pick No 1 - Suzlon (CMP 247.45) --- Wait for the market to stable first market, and then look to buy around 244 - 245.. final stop loss and target only to clients.

Pick No 2 - Hindustan Construction (CMP 147.55) --- Wait for the market to stable first market, and then look to buy around 145 - 146.. final stop loss and target only to clients.

Indian Markets continued the slide given the weak global markets and lack of retail participation and We expect a bounce back today after an initial slide.Nifty March
Futures have witnessed addition of fresh short positions. March
Futures added 14 lakh shares in open interest along with a
significant increase in discount from 17.30 points to 45.35 points.
On the Options front, both Call and Put options witnessed fresh
buying keeping the direction undetermined. However, Nifty 4700
Put and Call options have seen highest addition of open interest
at 4.65 and 4.72 lakh shares respectively along with an increase
in implied volatility

We have a Volatile view on Nifty; we recommend a Long Straddle strategy
o Buy One Nifty Mar 4700 CE @ 210 – 215
o Buy One Nifty Mar 4700 PE @ 190-195
o UBEP: 5110; LBEP: 4290; SL: 250 (total premium)
o Investment: Rs. 20500
o Time Frame: Expiry


Stock in Action -
1.) ICICI Bank: ICICI bank Feb Futures witnessed closure of long position and fresh build up of short position in the
last trading session. The stock had seen 2.29 percent addition in open interest with cost of carry turned negative to
4.90 percent from 3.28 percent. Short positions can be assumed in the stock at 895-902 levels with a stop loss
placed at above 915 for targets of 870 and 850 levels.

2.) SBIN: The stock shed -2.83 percent in open interest along with a decrease in cost of carry from 7.76 percent to -
0.94 percent indicating closure of long positions. Short position can be assumed in the stock below 1840 levels for
targets of 1800 and 1770 levels with final stop loss placed at 1862 levels.

3.) Rel Capital: Rel Capital Futures have witnessed 7.31 percent decrease in open interest along with a decrease in
cost of carry from 6.37percent to -8.37 percent indicating closure of long positions and fresh build up of short
positions. Short positions in the stock can be assumed at 1410-1425 levels for targets of 1350 and 1310 levels with a
final stop loss placed above 1450 levels

4.) RPower: RPower has witnessed fresh build up of short positions in Friday’s trade. The stock has seen 19.15
percent addition in open interest with a steep fall in cost of carry from -5.74 percent to -44.16 percent. The stock
made it life time low at 330 levels in the last trading session. Short position can be assumed in stock below 330
levels for targets of 315 and 305 levels with a final stop loss placed above 342 levels.

5) REL: The stock shed 0.45 percent in open interest and fell by 13 percent in last trading session suggesting
closure of long positions in the stock. Short positions can be assumed in stock if it doesn’t hold 1250 levels for
downside targets of 1200 and 1180 levels with final stop loss placed at 1280 levels.

6) Maruti: The stock witnessed fresh build up of long positions in Friday’s trade. The stock has seen 3.62 percent
addition in open interest with cost of carry remained flat. Long position can be assumed in the stock on correction at
895-902 levels for upside targets of 920 and 935 levels with a final stop loss placed at 880 levels.

7) Bajaj Auto: Bajaj Auto had witnessed fresh accumulation of short positions in Friday’s trading session. The stock
has seen 9.40 percent addition in open interest with decrease in cost of carry from 0.47 percent to -3.77 percent.
Short position can be assumed in stock at 1890-1910 levels for downside targets of 1830 and 1800 levels with final
stop loss placed above 1950 levels.

8) Sterlite: STER has seen fresh build up of long position in last trading session. The stock had seen 5.96 percent
addition in open interest with cost of carry decreased marginally to 1.57 percent. Long position can be assumed in
stock at 730-740 for targets of 765 and 780 levels with final stop loss placed at 715 levels.

Stocks you can pick up

Tata Steel
CMP: Rs 773
Target Price: Rs 1,038

HDFC Securities has given a ‘buy’ on Tata Steel on expectations of economies of scale and growing steel demand. According to the brokerage, the valuations are compelling with increased integration milestone achievements and a bullish outlook on steel prices. It expects the demand for steel in Asia and Europe to grow at 4.8% and 1.4% compound annual growth rate (CAGR) respectively.

“Steel prices are expected to remain firm due to high raw material prices and rising supply constraints. Supply constraints in terms of poor port facilities at Australia and Brazil and high freight rates, will also keep the prices firm,” says the brokerage in a note to its clients.

Additionally, the synergies from the Corus acquisition is expected to start reflecting from financial year 2009, coupled with a reduction in concerns on financial leverage. Key risk factors include increased environmental awareness and exchange rates movements.

Allied Digital
CMP: Rs 697
Target Price: Rs 1,200

Broking house JP Morgan has initiated coverage with an ‘overweight’ on Allied Digital (ALDS). “ALDS is a play on the strong domestic demand for IT services with more than 90% of its revenues coming from India. We expect the stock to deliver more sedate gains over the next 9-12 months, backed by high growth potential and management’s decent execution track record,” the brokerage said.

Indian domestic IT services is a $5 billion industry. It is expected to grow at a CAGR of 23% over the next five years to over $10 billion. JP Morgan believes the domestic IT exposure shields ALDS from concerns about a US slowdown, rupee appreciation and expiry of STPI tax benefits in FY10. The key drivers would be strong financial performance and possible acquisitions, using a part of the IPO proceeds, along with increased capacity utilisation of its remote IT management centres.

BHEL
CMP: Rs 2,026
Target Price: Rs 2,529

Citigroup has reiterated its ‘buy’ on BHEL, but with a downward revision in price target as it feels that its operating leverage which is largely over and the cost reduction efforts are working against it. “BHEL expanded EBIT margins from 0% in FY01 to 18% in FY07 and right-sized its workforce from 75,000 to 42,000 in four successive voluntary retirement schemes (VRS) from 1999 to 2003, cutting down operational costs and benefited from operating leverage,” said the brokerage in a note to clients.

Capital goods companies significantly expand margins when there is spare capacity and sales grow at a rapid pace benefiting from operating leverage.

“We believe that there is great likelihood of BHEL’s earning before interest tax (EBIT) margins peaking in FY08E. Once this happens, earnings growth has to largely track sales growth and will not benefit from operating leverage benefits,” it adds. The brokerage, however, terms BHEL its top pick in the Indian electric equipment rated universe.

Container Corp
CMP: Rs 1698
Target Price: NA

Merrill Lynch has retained its ‘sell’ recommendation on Container Corporation of India on not so attractive valuations, given muted growth prospects. However, the company does have some huge capex plans.

“We are raising earnings per share (EPS) driven by upward revision to volumes and lower margin erosion. Still, we expect muted 12% EPS compound annual growth rate (CAGR) over FY08-10, compared with 9% growth this year,” said the brokerage. The company is yet to finalise its scaled up capex plans of Rs 40 billion (from Rs 20 billion), to be spent over the next three years.

The brokerage believes that this will be largely directed towards initiatives across the value chain and through joint ventures, which will protect existing volumes and reduce project risk. However, the uncertainty and lag effect of benefits could impact stock performance. It believes that the stock is not attractively valued on traditional parameters, even though the stock trades at 13 times its one-year forward PE multiple.

Oh not again ! Get ready for another day of pain

Subscribe for not loosing in this market add sheth_jg@yahoo.com

Indian Markets are most likely to open gap down in a big way and continue to trade down though volatility is not ruled out. Inflation figures to be announced late in the day will add no good to the markets. Though markets tend to surprise when all the pointers are looking bleak, unlikely to happen this time. Blood continues to spill in the midcap domain, where stocks are flying all over in the beginning of January 2008. We expected a huge correction in January or February but the extent of the correction is definitely beyond our expectations. Lack of retail participation only added to the woes of the falling market.

Blackstone is likely to increase stake to 12.2 percent in Nagarjuna Constructions reports a pink paper. The US private equity giant continued to add stakes in companies like Gokaldas Exports, Allcargo Global.

Stay on sidelines but long term investors are encouraged to add on dips as market continues its journey to reach Mr.Bottom. We are suffering since our neighbours are suffering. Our house is never safe if neighbours house catches fire! Internally our fundamentals are still strong.Nifty has tested 4800 twice and bounced. Hope we dont fall below it else the U would become even more flatter.We sees a recovery only in April and after

We saw some tired looking recovery on Wednesday. Will this sustain is another
question. The FII's have been continuously selling for the sake of meeting the redemption pressures from their investors. Many call up ask me why are FII's selling? Dont they find value in this mkt? The answer is that they do find values but the investors for the sake of safety and in panic keep redeeming their investments and hence FII's have no other option but to sell at what ever levels they can.

The next obvious question is when will this money return? Like the previous
crashes we may not have sharp recoveries. We always have been seeing a V shaped fall and a recovery this time it would be a U shaped and that too a U with a flat bottom, something like this... “ I_I “ and how long will this bottom be depends on the state of US economy. As of now we are not falling or rising on out own fundamentals or technicals we just see how US and Asia and EU mkts are doing and react to them.
People are now realising there is value in the market but theres no money to buy. Nifty has tested 4800 twice and bounced. Hope we dont fall below
it else the U would become even more flatter.We sees a recovery only in April and after

Stock in News- Petronet, GSS America, Advanta, KEC International, Adhunik Metalliks and many more stocks hit the headlines today.

Advanta India Ltd has acquired Garrison & Townsend (GT), a US company producing and marketing sorghum.

Mumbai based Parsvnath Developers is venturing into luxury malls segment in Metro Cities.

Reports are abuzz that MCX, in which Financial Technologies hold majority stake might delay the IPO due to Commodities Transaction Tax levied in the budget.

GAIL India Ltd is likely to pick up Asian Development Bank’s 5.2 per cent stake in Petronet LNG Ltd.

FM suggested the banks to lower the interest rates on housing loans of up to Rs 20 lakh.

Tech company GSS America Infotech is listing on the bourses today.

KEC International is planning to acquire a US based mid-sized company from the same segment (EPC) it operates in

Reports indicate Tata's are on the look out for USD 3 billion loans for the acquisition of Jaguar, Land Rover

NOT MUCH DOWNSIDE RECOVERY

Subscribe to know more add - sheth_jg@yahoo.com

Indian Markets yet again proved to be the weakest among the Emerging markets and most importantly the Asian pack. Sensex tumbled to a 5 month low yesterday after a private TV channel tried to expose the subprime link of ICICI Bank, which the bank later denied. However ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of USD 2.2 billion in credit derivatives.As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$ 155 million. The current declines should be used by long term investors to buy the stock. With ICICI Securities IPO coming up and demerger of many of the subsidaries will unlock the value in the stock.

Tata Motors is setting ambitious targets for Nano. The company is looking aggressively to export Nano to US and European markets. The stock is likely to outperform the market in the coming years on exports.

SEBI will meet today under the chairmanship of Mr.CB Bhave. SEBI is likely to slash all regulatory charges and approve realty Mutual Funds. FM remarked on Tuesday that FII's are not behind the recent market crash and there was no proposal to ban them.

It is high time for a bounce in the Indian Markets but technically we have no supports in place till 15,880 levels. Stay away from the markets till normalcy returns. There will not be any run away rallies this time

Stock in news - PNB, IRB Infra, Essar Oil, Deccan Aviation, Tata Communications, Hindalco and many more stocks hit the headlines today.

Tata Motors is looking out for the possibility of global licencing Nano.

Reports suggest Hindalco Industries has raised aluminium prices by Rs 5,000 a tonne on rising global aluminium prices.

Essar Oil has bagged an offshore gas block in Vietnam's prolific Song Hong basin. The company also plans to invest $60 million in hydrocarbon prospecting.

Arun Jain, CEO of Polaris in an interview with NewsWire18 acknowledged that banks in the US east coast are holding back projects aftermath subprime.

Tata Communications(VSNL) is planning to invest $500 million in Wimax.

BS reports that Vijay Mallya is planning to dilute 15-20 per cent of his 76 per cent holding in the merged airline (Kingfisher-Deccan).

IRB Infra was awarded the maintenance and operating contract of the entire road infrastructure in Kolhapur city, Maharashtra.

ET reports that Punjab National Bank is planning to sell a 26% stake in its primary dealership subsidiary, PNB Gilts.


The following notable stocks created nightmares for the investors in the last one week.


Stock Name Percent Lost Current Price (Rs.)
Suzlon Energy 23.5 240.25
Reliance Capital 22.3 1,521.20
Global Broadcast 22.3 170.45
Adlabs Films 21.1 709.15
Bombay Rayon 19.2 269.40
First Source 19.1 43.75
DLF Limited 18.9 676.45
India Infoline 18.9 909.95
Kotak Bank 18.6 685.95
Motilal Oswal 16.6 815.35
Jaiprakash Asso 16.6 225.10
Unitech 16.5 326.50
Nagarjuna Fert 16.3 45.15