IT Sector see Profitbooking n ONGC

OUR STBT - IT SECTOR, NIFTY Etc

MARKETS AS EXPECTED GAVE GAP UP OPENING AND REMAINED FIRM ALL THROUGH THE DAY.NOW TODAY WE EXPECT NEGATIVE OPENING AND ONE SHOULD BUY WITH SL OF 4920 NOW FOR SHORT TERM TARGETS OF 5200-5300

The market is likely to extend its gains for the sixth straight session today, 22 April 2008 fuelled by better than expected results from Indian's top company in terms of markjet capitalisation Reliance Industries released yesterday after market hours.

The near-term market will be driven by the quality of earnings rolled out by corporates in the coming days. Important corporate numbers due today, 22 April 2008, are Ranbaxy Laboratories, UltraTechCement and Biocon.

Market may turn volatile in coming days ahead of the expiry of April 2008 derivative series on Thursday, 24 April 2008. As per reports, Nifty rollover from April 2008 series to May 2008 series stood at 34% while marketwide rollover was 15%.

Asian markets were trading lower today, 22 April 2008. Japan's Nikkei (down 1.12% at 13,542.81), Hong Kong's Hang Seng (down 0.99% at 24,476.29), Taiwan's Taiwan Weighted (down 0.67% at 9,022.27), Singapore's Straits Times (down 0.41% at 3,157.98) and South Korea's Seoul Composite (down 0.49% at 1,791.58), edged lower.

US markets ended mixed yesterday, 21 April 2008, as quarterly results from Bank of America fueled worries about bank earnings, while energy and tech gained. The Dow Jones industrial average slipped 24.34 points, or 0.19%, to 12,825.02. The Standard & Poor's 500 index fell 2.16 points, or 0.16%, to 1,388.17, while the Nasdaq composite index gained 5.07 points, or 0.21%, to 2,408.04.

Back home, the Indian stock market posted fgains for the fifth straight session yesterday, 21 April 2008, shrugging off a steep 50 basis points hike in cash reserve ratio (CRR) announced by the Reserve Bank of India late on Thursday, 17 April 2008. The 30-share BSE Sensex was up 258.13 points or 1.57% at 16,739.33 and the S&P CNX Nifty advanced 78.60 points or 1.59% at 5,037 on that day.

The BSE Sensex has now gained 1,044.23 points or 6.65% in five straight sessions from 15,695.10 on 10 April 2008

As per provisional data, foreign institutional investors (FIIs) yesterday , 21 April 2008 bought shares worth a net Rs 169.66 crore. Domestic funds purchased stocks worth a net Rs 111.58 crore on that day.

FIIs were net buyers of Rs 1,078.11 crore in the futures & options segment on Monday, 21 April 2008. They were net buyers of index futures to the tune of Rs 394.02 crore and bought index options worth Rs 609.09 crore. They were net buyers of stock futures to the tune of Rs 82.74 crore and sold stock options worth Rs 7.74 crore.

Market, May Melt-Down, But, BOUND TO RECOVER

Reliance, Satyam and TCS will be reporting numbers and we expect the RBI CRR hike to be nullified by good numbers by these companies

Don't cry over anyone who won't cry over you”
The bulls will hope not to cry soon. On Thursday, after markets closed, the RBI announced a hike in CRR. The expectations were always there but the timing caught many by surprise. Starting today investors can start to sell short and borrow and lend securities. Institutional investors not permitted to do intra day trade with shorts. To begin with securities in the Futures & Options (F&O) segment would be eligible for short selling. This is set to bring in more depth in the long run. However, margining of institutional trades in the cash market from today is expected to result in a further dip in volumes. This will have a severe impact on institutional trades.
US markets did well over the weekend. Asian markets too are cheerful this morning. Given the positive global cues, the Indian markets should be able to overcome the CRR hike news. The banking counters may see some weakness initially. ICICI Bank has reportedly hiked rates for auto loans and other banks are expected to follow suit.
FIIs turned net buyers of Rs12.81bn in Index Future and by Rs11.65bn in index options. In Single Stock Futures, they were net buyers of Rs4.43bn. In the cash segment (provisional) , FIIs were net buyer by Rs5.97bn and DIIs were net sellers of Rs598.7mn.
Titagarh Wagons Limited will list on the bourses. The issue price was fixed at Rs540 per equity share for its initial public offering of 23,83,768 equity shares of Rs10 for cash at a price determined through 100% book building process. The issue was subscribed to 6.75 times. The qualified institutional bidder portion was subscribed approximately by 10.37 times, non institutional bidder portion by 2.77 times and retail bidder portion by 0.98 times.
The big ticket results today include Reliance, Satyam, TCS, Axis Bank and United Breweries.
Among the prominent headlines in the media include:
- Israeli investment firm Koor Industries on look out for a 10% stake in Tata Teleservices for US$720mn.
- Marks and Spencer forms retail JV with Reliance Retail
- Patni Computers is scouting for acquisitions in the consultancy space in Europe.
- Promoters of Dabur have sold Dabur Pharma to European firm Fresenius SE for Rs8.8bn.
- 3i Infotech raises Rs5bn debt to fund domestic buys.
- Infosys wins five-year contract from Conseco to provide development and maintenance services.
- Tata Power to enter in to a sourcing agreement with BHEL for all its future power projects.
- L&T may not sell it’s recently hived off ready-mix concrete division in 2008.
- Saffron Group picks up 30% stake in a realty project of Parsvnath Developers in Mumbai for Rs1.9bn.
- SCI likely to consider a bonus issue.
- Polaris to consider share buyback on April 23.
- ONGC has launched Rs63.4bn Mumbai High South redevelopment phase II.
- GMR Energy buys 5% equity stake in mining company Homeland South Africa for US$15mn.
- Abu Dhabi firm plans JV with Tata Group for developing a power plant in India.
- Punj Lloyd eyes Indian Army’s US$1bn contracts for artillery.
- Power Grid plans capital expenditure of Rs80bn in fiscal 2009.

Banks may CRRy
Indian bourses ended with smart gains on Thursday reaching a near six-week high on back of positive cues coming in from the international equity markets and buying momentum in the Realty, Metal and IT stocks. It was the third straight session of gains for the markets. The Realty stocks in particular were in demand also the IT stocks continued to be in momentum led by Infosys.
Among the 30-stocks of Sensex, 7 stocks ended in red and with Hindustan Unilever, L&T, RIL and REL were among the major laggards.
Finally, the BSE benchmark Sensex ended 237 points higher to close at 16,481 and the Nifty index ended 71 points higher to 4,958.
Overall about 2,020 stocks advanced; 711 stocks declined while 47 stocks remained unchanged. Among the 50-Nifty 42 stocks ended in green and 8 stocks ended in red.
Power Grid surged by over 3.5% to Rs102 after the company announced its FY08 results with net profit at Rs14.2bn (up 15.4%) and revenue at Rs47bn (up 15.1%). The company also announced its plans that they would spend Rs550bn in 11th Plan. The scrip touched an intra-day high of Rs104 and a low of Rs99 and recorded volumes of over 38,00,000 shares on BSE.
Hindustan Zinc surged by over 7% Rs591. India's largest producer of the metal announced that it cut zinc prices by 2.1% or by 2,300 rupees to Rs1,04,800 per metric ton, The hike will be effective starting April 17, 2008. The price of lead was left unchanged. The scrip touched an intra-day high of Rs595 and a low of Rs554 and recorded volumes of over 51,000 shares on BSE.
Century Plyboards was marginally up by half a percent to Rs690. The company announced that May 02, 2008 has been fixed as the Record Date for the purpose of split of equity shares of the company from face value of Rs10/- per share to face value of Rs1/- per share. The scrip touched an intra-day high of Rs718 and a low of Rs690 and recorded volumes of over 1,000 shares on BSE.
Hanung Toys surged by over 6% to Rs238 after the company said that the it signed MoU with a Chinese Company to buy latter's soft toy business in China by acquiring 100% stake in the said Company. The scrip touched an intra-day high of Rs244 and a low of Rs224 and recorded volumes of over 54,000 shares on BSE.
Sugar stocks were in momentum after government, scrapped a facility allowing duty-free raw sugar imports against exports at a later date as local stockpiles increased because of higher production. The concession on imports of raw sugar against the so-called advance lice BSE will be withdrawn with immediate effect, reports stated.
Dhampur Sugar surged by over 4% to Rs56, Balrampur Chini advanced by 3.5% to Rs98, Sakhti Sugar gained by 2% to Rs68 and Renuka Sugar added over 5% to Rs113.
GMR Infrastructure gained by 1.5% to Rs152 after the company’s unit acquired 5% of Homeland Mining and also has an option to buy additional 45% in Homeland. The scrip touched an intra-day high of Rs154 and a low of Rs151 and recorded volumes of over 10,00,000 shares on BSE.
UltraTech Cement was up by 0.5% to Rs783. According to reports, the company would setup a greenfield project at Mahuva in Bhavnagar district of Gujarat at an investment of Rs30bn. The scrip touched an intra-day high of Rs794 and a low of Rs773 and recorded volumes of over 12,000 shares on BSE.
M&M raced by over 3% to Rs638 after the company said that it inked 50:50 joint venture with South African international supply chain company, Capespan, through its agri-business initiative. The scrip touched an intra-day high of Rs642 and a low of Rs621 and recorded volumes of over 47,00,000 shares on BSE.
Polaris rallied by over 12% to Rs103 after the Board of Directors of the company announced that it would consider buy back on April 23. The scrip touched an intra-day high of Rs104 and a low of Rs92 and recorded volumes of over 16,00,000 shares on BSE.
On Monday, banks would come under pressure as in a statement, the Reserve Bank of India said, "On a review of current liquidity situation, it is considered desirable to increase the cash reserve ratio (CRR) of the scheduled commercial banks, regional rural banks (RRBs), scheduled state co-operative banks and scheduled primary (urban) co-operative banks by 50 basis points to 8.0% in two stages, effective from specified fortnights: First 25bps to be raised effective from April 26 and second would be effective from May 10.

Corporate News
- L&T Mitsubishi JV may win Rs480bn order from the union power ministry.(ET)
- AV Birla group to set up Rs6bn carbon black unit in Mexico.(BS)
- Coal India invites EOI from global mining firms for development of underground coal mines in seven blocks.(BL)
- Ispat Industries to raise Rs5bn through issue of share warrants to promoters.(BS)
- Shishir Bajaj raises his ownership in Bajaj Hindustan by nearly 5% in FY08.(ET)
- Maruti Suzuki decides to hike prices from first week of the next month.(TOI)
- M&M is in advanced stage of negotiation to acquire Belgium gear-maker VCST for US$475mn.(ET)

- Spanco Tele is close to winning the Common Services Centers contract worth Rs2bn.(BS)
- SAIL has decided not to increase prices for the moment.(BL)
- ADAG promoted Rosa power project is slated to be completed by the beginning of 2010, nine months ahead of schedule. (ET)
- Amtek Auto in talks with Sumitomo Corporation of Japan for a 50:50 JV in precision forgings.(DNA)
- ArcelorMittal has marked US$25bn for India plans. (TOI)
- TVS Motors incurs production and sales loss of Rs1bn due to ongoing litigation with Bajaj Auto over its 125cc motorcycle Flame.(DNA)
- Mahindra Lifespace to invest Rs10bn in four residential projects in NCR and Maharashtra over next three years.(BS)
- Hanung Toys signs a deal to acquire soft toys business of a Chinese firm for an undisclosed amount.(DNA)
- Jet Airways enters into partnership with Global Hotel Alliance. (ET)
- ONGC will invest Rs200bn in its different oil and gas recovery improvement programmes in the current fiscal.(DNA)
- Leela Group to invest Rs20bn over next three years to develop six new properties.(ET)
- Reliance Industries and Ballard Power Systems are in talks for a partnership in India. (DNA)
- Suzlon Energy secures orders for wind farm project in China. (ET)
- American Tower not in contention for Tata Teleservices’ tower arm.(ET)
- Greaves Cotton signs an agreement with Germany based Bomag to manufacture 19MT vibratory soil compactors.(ET)
- Indiabulls Financial forms an alliance with Sogecap, insurance subsidiary of Societe General.(ET)

Today Nifty 5000 levels

HOT PICKS- Rel capital,Fertilizer stocks,Alok,Arvind mills, Lanco infra,


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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.

WE WILL SEE GAP UP AS SAID YESTERDAY

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Market may remain range bound

Everything Spurt Like Rocket

YESTERDAY all are calls rocked long as well as short

OUR TRADING CALL OF ONMOBILE FLARED EXACTLY AS PER OUR PREDICTION, AND HIT EXACTLY 609 , OUR TARGET WAS 608 , WE HOPE U ENJOYED.

* OUR TRADING CALL OF MOSER BAER ALSO FLARED AND COMPLETES IT'S DAY TARGET OF 170 , 173, WE HOPE U ENJOYED.

* OUR TRADING CALL OF TULSI , ALSO FLARED AND HIT 88.50 MARK.

* OUR TRADING CALL OF SKUMAR NATIONWIDE , FLARED UPTO 105.40 MARK.

* OUR TRADING CALL OF YES BANK, FLARED UPTO 172 MARK.

* OUR CLIENT'S SPECIAL CALL OF BHEL, FLARED LIKE ANYTHING AND HIT 1786 MARK. IT'S WAS OUR BTST CALL , CALL SENT AROUND 1715 LEVEL ON TUESDAY.

SHORT ORCHID FELL UPTO 211 FROM 240

FOR TODAY

BUY NIIT TECH, COMPETENT AUTO,POLARIS,BOI

The market range is getting narrower which is a good sign and stop losses are getting smaller, The level to watch now is 4628 for the Nifty which is a strong support, If Nifty can breakout of 4820-4840 and Sensex at 16010-1050, then we can see new highs of 5000 on Nifty and 17100 on Sensex

Its the same thing which is still repeating in the markets what has been going on and
the expectation of a range bound market still continues. Three days in this week have passed and we have seen red and green on alternate days and that shows the undecidedness of any proper trend.

At a time when there has been uncertainty about outlook on corporate earnings, forecast-beating results of private sector bank Yes Bank announced during trading hours lifted the market on Wednesday, 9 April 2008. Yes Bank also said it had no delinquent derivatives exposures. Fears that banks may take a hit in their balance sheet because of foreign exchange derivative losses have triggered a steep fall in banking shares over the past few weeks. Yes Bank results helped reduce the fear.

Concerns about corporate and bank earnings heightened after recent disclosures from ICICI Bank, India’s biggest private sector bank in terms of net profit and Larsen & Toubro, India’s biggest engineering & construction firm by revenue. On 4 March 2008, ICICI Bank said it had provided $70 million in Q3 December 2007 and may have to provide another $50 million in Q4 March 2008 for mark-to-market losses on investments. A few days later L&T said one of its subsidiaries L&T International FZE, may incur commodity-hedging-losses of as much as Rs 200 crore in the year ended March 2008.

What added to the gloom regarding corporate earnings was lower-than-expected provisional results announced by Bharat Heavy Electrical (Bhel), India’s biggest power equipment firm by revenue, recently. Slower than expected execution rate and project specific delays could be the reasons for the lower-than-expected growth in the top line of Bhel.

Recent government action to rein in inflation has also added to uncertainty about outlook on corporate profits. The government has scrapped import duty on crude edible oil and banned the export of rice and pulses. It also surged steelmakers to cut prices of the alloy.

Asian stocks were mixed today. Key benchmark indices in Hong Kong, Taiwan and South Korea were up by between 0.04% to 1.3%. Key benchmark indices in China, Japan and Singapore were down by between 0.2% to 0.9%.

Reliance capital to see action

Nifty big support at 4600 buy with this sl for target 4750

Stock on radar- Tulsi,Onmobile,Skumar,Yes bank,Renuka

Fertilizer Stock to move

Bindas short Orchid chemical in lots

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State Bank of India has reportedly shortlisted three potential partners, including Insurance Australia Group, for a general insurance venture. The other two are a German firm and a US-based firm, the reports suggested.

GTL Infrastructure is reportedly in talks with Essar Telecom Infrastructure for a possible merger. A final decision is expected in about 3 to 4 weeks time, the reports said.

Yes Bank, Honeywell Automation and Mastek among others will declare their March 2008 ended quarterly results today.

Hindustan Unilever (HUL) has reportedly cut prices of three of its soap brands—Lux, Hamam and Rexona. The price reduction by HUL is being termed as a post-budget measure to please consumers, the reports added. The excise duty on soaps was reduced by a margin of 2-14% in the union budget for 2008-09.

Areva T&D India on Tuesday, 8 April 2008 said it has secured a Rs 418 crore from Essar Constructions to provide equipment to the latter's power plant projects in Gujarat and Madhya Pradesh.

Britannia is reportedly expected to sell its 22-acre property in Padi, an old manufacturing hub north of Chennai. This follows the suspension of operations at the company’s plant located in the region. The company informed the Bombay Stock Exchange (BSE) on Tuesday that it has suspended operations effective 7 April 2008 at its Padi unit after the majority of workers accepted the company’s voluntary retirement scheme offer.


Good results are expected from the telecom sector on the back of strong growth in new subscribers additions. Infrastructure and engineering firms, too, are seen reporting decent numbers in Q4 March 2008 on the back of healthy order book positions. The performance of auto firms is likely to be sluggish due to muted volume growth and rise in input costs.

A depreciation of the rupee against the dollar is likely to drive good results from the IT sector on a sequential basis in Q4 March 2008 over Q3 December 2007, though the focus here is on guidance for the year ending March 2009 from IT bellwether Infosys Technologies. Infosys guidance will give investors a sense of the effect of the weakening US economy on technology spending by companies there. Infosys unveils Q4 results on Tuesday, 15 April 2008.

Prospects of further outflow by foreign funds to offset losses incurred by them in the US sub-prime mortgage market continue to weight on the market sentiment. In the calendar year so far, FIIs sold shares worth a net Rs 11808.70 crore (till 4 April 2008), to offset their huge losses in the US sub-prime mortgage market. As per provisional data, FIIs bought shares worth a net Rs 7.27 crore on Tuesday, 8 April 2008.

As far as domestic liquidity is concerned, inflows to equity mutual funds and unit linked insurance plans (with high weightage for equity) have slowed after the sharp setback on the bourses in the past two months. As per provisional data, domestic funds bought shares worth a net Rs 447.79 crore on Tuesday, 8 April 2008.