BUY Hpcl,Suzlon,Rpl

Book profit accordingly as target only for clients .So subsribe NOW

Bounce back in the offing...if nifty stays above 4500 for a period of time, short covering can kick in with force.....

Yes i mentioned to stay long in nifty 4500 on radar, now watch the fun till thursday

Today, we expect a cautious to positive start for our market. Its a no brainer that the bulls will struggle later to keep the early momentum going with too many negative factors floating around. The bravehearts may pick up battered quality stocks for long-term purpose. Having said that, one has to be vary careful while picking the scrips for investments.

NIIT could see some action as it will announce a strategic JV with Genpact for the BPO industry.
FIIs were net sellers of Rs9.1bn (provisional) in the cash segment on Tuesday while the local institutions poured in Rs2.96bn. In the F&O segment, foreign funds were net sellers at Rs5.37bn.

On Monday, FIIs were net sellers of Rs13.42bn in the cash segment. With this, they have pulled out a net of $4.88bn from the Indian market this year so far.

GMDC, KPIT Cummins, NIIT, NIIT Technologies and SCI will declare their results today.

Corporate News

Hindustan Motors to launch new passenger car in October 2008. (Mint)
Reliance Industries to produce oil from KG basin by August 2008. (Mint)
BPCL to invest $200mn in overseas exploration. (Mint)
IDFC to list $1.25bn India Infra Fund. (Mint)
JSW Steel plans to borrow from export credit agencies to fund its $3.3bn expansion plan. (Mint)
Grasim sells sponge iron unit from Rs10.3bn. (Mint)
Vedanta plans to invest $20bn in India in next four years. (Mint)
Idea Cellular to invest in Spice Communications network and technology upgrade. (BS)
Bosch makes considering increasing offer price for delisting its Indian arm, Bosch Chassis Systems. (BL)
TVS Motors plans power bikes to take on competition. (BS)
Scooters India to make E-bikes. (BS)
RCom-MTN combine may seek London listing. (BS)
Omaxe forays into Dubai market. (BL)
IDFC picks up 22% stake in Seaways Shipping. (BL)
Tata Elxsi has planned a capex of Rs450mn and addition of 1,000 employees in 2008-09. (BL)
Bharti Airtel to bring Apple’s 3G iPhone to India. (BL)
Spice Telecom to unveil Braille mobile phone. (BL)
UB Group says their IPL team, Royal Challengers have achieved breakeven in the first year of operations. (BL)
Gati may hike freight rates by 7-10%. (BL)
Tata Tea to develop new range of products, fortified water, functional water and enhanced water. (FE)
Indiabulls Real Estate arm enters in MoU with government of Jharkhand for setting up 1,320MW power project. (FE)
Tata Steel JV with Riversdale Mining in Mozambique to yield premium hard coking coal and thermal. (FE)
Jet Airways enters into code-share agreement with Etihad Airways effective July 1, 2008. (FE)
Gitanjali Gems raises stake in Fantasy Diamond Cuts Pvt Ltd to make its wholly owned unit. (FE)
Gitanjali Gems merged two founder group companies Decent Securities & Finance and Eureka Finstock with itself. (FE)
Aurobindo Pharma receives USFDA approval to manufacture and market Zaleplon Capsules. (FE)
Bosch Chassis makes an offer of acquiring the public holding at a price not exceeding Rs600 per share. (FE)
Godrej Appliance to foray into colour television market by August. (FE)
Tata Motors seeking to raise US$1bn in debt or equity from the overseas market. (FE)
Tata Motors looking to raise its borrowing limit to Rs200bn from the current Rs120bn. (FE)
Idea willing to pay a premium of 10-15% over the current market price of Spice Communication. (FE)
PNB to bid for stake in IFCI through a consortium. (FE)
PNB to foray into credit card business within six months. (FE)
BHEL, L&T, Crompton Greaves among major bidders for Rs180bn transmission strengthening and upgradation project. (FE)
Financial Technologies promoted Power Exchange to launch its operation within a fortnight. (FE)
Duncans Tea in talks with IOC to tap rural market. (FE)
Bombay Dyeing to open its first retail store in Dubai. (ET)
Bombay Dyeing tied up with Dubai-based luxury lifestyle retailer Revoli Group. (ET)
Karuturi Global looks to acquisition in Europe and to foray into Horticulture. (ET)
Dabur Pharma subsidy, to get accreditation from college of America next year. (ET)
GTL promoters to hike their equity stake in the group’s telecom tower arm GTL Infrastructure to 68.29% from 43.29%. (ET)
Middle East‘s Al Rostamani may buy 25% stake in GHCL for ~US$200mn. (ET)
ONGC to tie-up with SCI to manufacture rigs. (ET)
Bata India eyes franchise model to launch its upcoming retail stores. (ET)

Economic News

Fertilizer industry wants a pricing policy in place. (BS)
New 3G aspirants unlikely to get 2G spectrum. (FE)
Civil Aviation minister Praful Patel, to meet Prime Minister today for a reduction in landing and parking charges. (ET)
The NPPA made it mandatory for companies to inform it of their plans to change the composition of their drugs. (ET)
Karnataka Government planning to come out with semiconductor policy. (ET)
Sugar production declines 6% in May 2008

Sell Suzlon and cover it soon as u get profit

Now Sensex 13800 or 16000??

Still thinking for subscribe ??

Market will be Volatile throughout the Day

Still, It's Not Advisable to Take Any Fresh Long Position.

However, Trader Can Trade, with Little Qty

On Upper - Side It Can Try to Hit 4510 - 4535

Support : 4390 - 4330

we may see some bounce back after yesterday's carnage. Stick to the defensive sectors like IT (given circumstance it is defensive for time being), Pharma and FMCG and stay away from the risky ones like Real Estate, Infrastructure and Capital Goods. Of course you can argue that the beaten down ones will recover fastest. But we are worried it may take longer. So be on the defensive.

Also, small- and mid-cap stocks could be risky, especially now. On the other hand, quite a few large caps have fallen to attractive levels. Long-term buying can be considered in these stocks.

FIIs were net sellers of Rs13.45bn (provisional) in the cash segment on Monday while the local institutions poured in Rs10.3bn. In the F&O segment, foreign funds were net buyers at Rs3.69bn. On Friday, FIIs were net buyers of Rs3.07bn in the cash segment. With this, they have pulled out a net of $4.5bn from the Indian market this year so far.

ABG Shipyard, Asian Hotels, Evinix Accessories, Gujarat Industrial Power, Gujarat Fluorochemicals, NALCO, Sangam India and Zandu Pharma will announce their results today

Corporate News
Idea cellular to buy out 40.8% BK Modi’s stake in Spice Communication for Rs22bn. (ET)

TCS hedges US$1.5bn to safeguard it from Rupee fluctuations. (BS)

UB group to offer stake in airline business to raise funds. (BL)

ONGC may not accept Gazprom’s offer to pick up 50% in its (Gazprom’s) shallow water exploration asset in the North Eastern coast off Orissa. (BL)

Educomp Solutions has secured contracts from 395 schools under the ICT segment. (BL)

M&M to capitalise on the recent acquisition of the US$12mn Italian two-wheeler design company, made by its component arm Systech. (BL)

Paramount Airways has joined the race for buying Spicejet. (ET)

Great Offshore drops plans to acquire two rigs; the company is now planning to buy only one rig. (ET)

HT Media has signed a JV with German media group Hubert Burda. It will set up a printing facility near its own Greater Noida facility. (BL)

Ashok Leyland to borrow Rs10bn in two equal parts to raise its India capacity. (Mint)

Moser Baer plans to set up Rs20bn manufacturing facility near Chennai to make photovoltaic products. (BL)

Aditya Birla Group may acquire 51% stake in Apollo Sindhoori Capital, a broking firm promoted by Apollo Hospital Group. (ET)

SC directs Sahara India Financial Corporation to approach RBI on Thursday to convince it that its financial activities are in order. (BS)

Zydus Cadila acquires majority stake in South Africa based Simalaya Pharmaceuticals. (BS)

BSNL reduces STD rates for its fixed line and cellular subscribers by up to 50%. (BL)

Gujarat High Court has stayed on NPPA order to cut prices of Cadila's drug Envas. (ET)

Cognizant Techology has acquired Strategic Vision Consulting, Inc (SVC), a management and technology consulting firm in US. (BL)

Pipavav Shipyard plans to build offshore patrol vessels for the Indian Navy. (Mint)

Integreon is likely to acquire three companies for US$100mn in next two-three years. (ET)

Economic News

The Government may revise gas pricing formula by raising the cap for gas and crude oil prices at KG basin. (ET)

Finance Minister says the direct tax collection target will be hiked to Rs4 trillion for the current fiscal year. (ET)

According to the Nasscom, the Indian IT industry to witness a 3-4% dip in growth in FY09 as against a 28% growth it achieved in FY08. (BS)

SEBI has proposed to expedite the process of disclosures made by listed companies. (BS)

SEBI proposes to shrink time period for disclosure from 9 days to 2 days. (BL)

The Centre is mulling over a fresh proposal for decontrol of the sugar industry. (BL)

The Government to enforce corporate governance norms in the Navratna Central Public Sector Enterprises CPSEs. (BS)

Steel prices in the spot markets of Delhi, Mumbai and Chennai have gone up during the first week of June

BUY IN DIPS FOR SHORT TERM

Dont be late to subscribe...............

Level to watch on sensex 15250

Maybe this is the dip one should buy at - however, since we cannot confirm whether this is a long term bear or short term bear market - one could just nibble selectively and not buy huge lots.

Today, we see a gap-down opening, but do not rule out a slight rebound later in the day if global indices reverse the weak trend. Short covering could be the only other factor which could lessen the damage. Some key markets in Asia are actually shut today for holidays, which may be of some help to the bulls. Get in with an investment view. Should you be able to pocket some gains in the brief reversals, no harm in booking some quick profits. The undertone remains precarious and fragile.


FIIs were net buyers of Rs766.5mn (provisional) in the cash segment on Friday while the local institutions poured in Rs4bn. In the F&O segment, foreign funds were net buyers at Rs3.05bn. On Thursday, FIIs were net sellers of Rs14.19bn in the cash segment. With this, they have pulled out a net of US$4.6bn (Rs186.6bn) from the Indian market this year so far. Mutual Funds were net buyers of Rs5.47bn.

Gokaldas Exports and Inox will announce their results today.


Today's Pick - JSW Steel

We recommend a sell in JSW Steel from a short-term perspective. The stock has been on a medium-term uptrend from its April low of Rs 490 levels.

However, the stock encountered resistance at Rs 1,200 recently and began to decline forming a bearish engulfing candlestick pattern in the daily chart. This reversal has been supported by the negative divergence in the daily Relative Strength Index (RSI). The RSI has entered the neutral region from the bullish zone.

A crossover in the daily moving average convergence and divergence indicates a sell signal. The stock is currently testing the medium-term up trendline around Rs 1,085 level.

Considering the above factors, we are bearish on the stock in the short-term. We expect the stock to penetrate the uptrendline and decline until it hits our price target of Rs 980 in the approaching trading sessions. Traders with short-term perspective can sell the stock while keeping the stop-loss at Rs 1,138 level.

Corporate News

Axis Bank plans to raise Rs65bn through upper and lower tier II bonds.(BS)

SpiceJet is looking to raise Rs4bn in equity capital to part finance aircraft acquisitions plans.(BL)

Punj Lloyd lines up a capex of US$100mn for 2008-09.(BS)

NTPC and its JV subsidiary, Nabinagar power plant, awards BTG contracts to BHEL for Rs35bn.(ET)

RCOM and MTN close to signing a deal to merge the two entities; swap formula of 35:100 likely.(BL)

Personal care product maker Emami forces Zandu Pharma to withdraw its preferential issue.(BS)

Nalco announces expansion plans worth Rs400bn for the next five years.(BL)

Essar Steel Holdings says it might raise its takeover bid for US based Esmark.(BS)

Punj Lloyd secures Rs6.5bn order from IOC for the latter’s Barauni refinery.(FE)

Reliance Petroleum's export oriented 29mn tons refinery to start generating revenues from current year.(BS)

Indian Oil and Oil India to acquire Reliance Industries’ offshore oil block in East Timor.(BL)

JK Lakshmi Cement is adding five more ready-mix concrete units as part of its expansion plans.(ET)

UAE based Etisalat pulls out of negotiations to acquire stake in Spice Communications; cites high valuations.(BS)

Cargill Ventures has cut by half the US$9mn investment it had announced into KPIT Cummins a year ago.(DNA)

GMR Infrastructure to relocate its 220MW power plant to Kakinada in AP from Mangalore in Karnataka.(DNA)

Sobha Developers to foray into the Mysore realty market with three projects in current fiscal.(BS)

Corporation Bank may waive Rs2.8bn under the debt relief scheme for farmers.(BL)

Coal India may come out with an IPO before getting ‘Navratna’ status.(BS)

UK based Vincent Tchenguiz is holding talks with Tata, to invite investment from the latter in a new US$10bn environment fund.(ET)

CavinKare and Henkel have announced a 5% hike across product categories.(TOI)

Axis PE, the PE arm of Axis Bank, is investing Rs1.4bn in two Ahmedabad companies.(ET)

Delhi government owned Indraprastha Power Generation to set up a 2,000MW coal fired power station in MP.(FE)

Gail India is looking at setting up a CNG corridor comprising Nagapattinam, Karaikal and Puducherry.(ET)

Adani Logistics is all set to develop 14 inland container depots across the country by 2010.(ET)

NHPC is likely to sign an agreement with J&K Power Development Corp. to harness 2,100MW at a cost of Rs150bn.(FE)

Six NBFCs, including Shriram Transport Finance, Ashok Leyland and Reliance Capital are believed to be in the race for buying a US$1bn loan portfolio of Citicorp Finance.(ET)

Renault-Nissan combine has started construction work on its passenger vehicle plant in Chennai.(ET)

Alok Industries has resumed talks with PE players to dilute 20% equity it owns in its unlisted unit, Alok Infrastructure.(ET)

Mercator Lines has chartered out a new offshore rig to a Singapore-based firm for US$93,000 per day for three years.(ET)

Economic News

The Government may increase export cess on long steel products from 10% to 15%.(ET)

Global telecom companies approach TRAI to open mobile market for entry of MVNO.(BL)

Seven bidders are vying for Mumbai International Airport’s Rs7bn annual ground handling contract.(Mint)

SEBI increases cumulative debt investment limits for FIIs to US$5bn and US$3bn in government securities and corporate debt, respectively.(FE)

NPPA, the pharma pricing authority, revises prices of 440 medicines.(BS)

PM’s Advisory Council scales down FY09 economic growth to 8% from 8.5%.(FE)

FMCG companies plan to increase prices again after the hike of 3-4% a few months ago.(BL)

Personal computer market in India grew by 10% yoy in January-March 2008 period.

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Will Pullback rally sustain till 4800 levels

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Expect Dead Cat Bounce

FRIENDS, CONTINUOUS SELLING BY FIIS FOLLOWED BY NERVOUS RETAIL INVESTORS MAKE NIFTY BREACH THE CRITICAL 4633 LEVELS AND CLOSED BELOW IT. AT PRESENT INDICES LOOK HIGHLY OVER SOLD, AND ANY TIME A GOOD BOUNCE CAN BE EXPECTED, BUT ANY BOUNCE MAY MEET WITH HEAVY SHORT SELL & FRESH SELLING PRESSURE BY FIIS WHO ARE CONTINUOUS SELLING IN OPEN MARKET. -VE DOW FUTURES DURING THE AFTERNOON SESSION AND HIGHLY -VE EUROPEAN BOURSES ADDED FUEL IN LAST 1 HOUR MARKET FALL; ANY SMALL BOUNCE IS A POINT OF HEAVY FRESH SELLING (BASKET SELLING). NOT GO LONG BELOW NIFTY 4840 !! CHANCES – 1. 60% CHANCES R THAT WE TEST NIFTY 4448 (DT. 22/01/08) 2. 20% CHANCES R THAT WE SEE BOTTOM AT NIFTY 4200 3. 20% CHANCES R THAT WE NOT BREACH NIFTY 4503, AS LOW OF 18/03/08

A minor pull-back is not ruled out. But, any rally should be looked at a chance to lighten positions.

FIIs were net sellers to the tune of Rs11.99bn (provisional) in the cash segment yesterday while the local institutions poured in Rs4.2bn. In the F&O segment, foreign funds were net buyers at Rs3.35bn. On Tuesday, FIIs were net sellers of Rs9.52bn in the cash segment. Mutual Funds were net buyers of Rs1.24bn.

Fortis Healthcare and HOV Services will announce their results today.

After correcting sharply in yesterday's trades, the market is likely to witness sideways movement. However, on the other hand, the undertone still looks bearish on the back of strong selling by the FIIs. For the Nifty, the key resistance level is at 4635 and has a likely support at 4540 on the downside. The Sensex has a likely support at 15300 and resistance at 15700.

As usual, the Left parties, and the BJP slammed the Government's decision. Even the RJD, very much part of the Congress coalition, has called for a rollback. If the political temperature continues to mount, there could be a small reversal in the fuel price hike.

Coming to the markets, the much-awaited announcements didn't cut much ice with the investors. Even the shares of OMCs gave up most of their gains by the end of the day. Though the price hike and other measures will provide some relief to OMCs, they will still be in considerable pain. What's more, the fiscal situation is also likely to worsen. Inflation is soon expected to hit double-digits. Companies in sectors like Auto, Aviation, Cement and Steel will be hit the most. Banks will also be affected as higher inflation will lead to more monetary tightening.

To add to the macro-economic woes, we have the fresh concerns over the global front. There are talks that Lehman Brothers could report losses and will have to raise fresh capital to stay afloat. Two of the biggest US bond insurers may have their ratings cut by Moody's. Though oil prices have cooled off substantially from US$135 per barrel, they are still quite high. The US economy may have avoided a recession (only technically though), but it's not going to gallop either. Also, Federal Reserve chief Ben Bernanke has hinted that the central bank may not increase rates any further.

Given the slew of negative factors, we expect the market to remain under pressure in the near-term. There are more chances of it falling than rallying from here. Technical and F&O indicators too are negative. FII selling has accelerated in the past few days. So, the bulls appear to be cornered from all fronts.

Corporate News

Private equity firms Blackstone, Apax Partners and Carlyle are raising US$5bn for Reliance Communication Ltd’s deal with MTN. (FE)

Reliance Communications hires Deutsche Bank to fund MTN takeover. (BS)

Tech Mahindra bagged US$2.5mn deal to provide end to end systems integration services to the Botswana Tele-Communications. (BL)

Bharti Airtel to opt for the mobile virtual network operator (MVNO) model to increase its footprint overseas than acquisitions abroad. (FE)

SAP plans to invest around US$4-5mn which could go up to US$8-10mn in start-up companies in India through its investment arm, SAP Ventures. (ET)

National Aluminium Company (NALCO) to invest Rs400bn in Greenfield and brownfield projects. (BS)

RBI bars Sahara India Financial Corporation from accepting public deposits due to violation of regulations. (BS)

IVRCL Infrastructure bags RS8.36bn project from ONGC Petro Addittions. (BS)

Phoenix Mills to raise US$450mn from private equity investors to fund its mall and hospitality business. (BS)

Reliance Retail in talks with Liz Claiborne for a JV to open its stores in India. (

Novartis has bought US-based Protez Pharmaceuticals in a deal worth up to US$400mn, giving it rights to an antibiotic which could be used to fight superbugs such as methicillin-resistant Staphylococcus aureus (MRSA). (ET)

Biocon launches pre filled syringes for two drugs for kidney and for cancer patients. (BS)

Essar plans to partner or buy controlling stake in Kalindee Rail Nirman to benefit from the high spending by the railways. (Mint)

Tata Sky not granted relief by Delhi High Court on petition filed for ‘misleading’ advertisement by Dish TV. (BS)

FITCH Ratings placed Reliance Infrastructure on negative rating watch, indicating that the ratings may be downgraded or remain at the current level. (ET)

Air India to induct seven Boeing 737-800’s to its fleet of 18, making its total fleet to 25. (BS)

Orissa based Ruserger Mines and Minerals has applied for license for three mines in Sindhudurg in Maharashtra. (BS)

TVS Motor has entered into a contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt Ltd. (BL)

TATA BP Solar plans to launch its solar-powered hoardings product called I-Sign by September. (ET)

Raymond launched its new readymade garments range, Raymond Finely Crafted Garments and is close to forming a joint venture with an overseas company. (ET)

Himalaya Drug Company is going to launch a new strategic business unit (SBU) for expanding into smaller towns and hinterland districts. (ET)

Economic News

The Centre to sanction Rs45bn for Mumbai Metro Rail project.

National Bank for Agriculture and Rural Development (NABARD) to open a special liquidity assistance window for cooperative credit institutions to assist during tight resource conditions. (BS)

State governments have decided to reduce the sales tax on petrol and diesel, to reduce the impact of increase in prices. (BL)

The Board of Approval (BoA) for Special Economic Zone (SEZ) cleared 21 SEZs proposal, but there was no decision on Goa SEZ. (FE)

Infrastructure development in and around Mumbai could come to a halt as a result of the proposed coastal management zone (CMZ) regulations. (ET)

The print media industry recorded a growth of 16% last year and stood at Rs149bn according to the ministry of information and broadcasting (I&B). (ET)

In its recommendations on satellite radio Trai has recommended an FDI cap of 74% and a 4% revenue share for all players who want to offer services on this platform. (ET)

The general insurance industry grew by 14% in April led by strong growth in premiums collected by private sector insurers. (ET)

FMC will frame new rules on appointment of directors and tenure of board members in commodity exchanges in a move to improve corporate governance in these entities. (ET)
The Centre has decided to keep the base prices of edible oils unchanged for this fortnight

HIGHTLIGHTS

Following are the highlights of the petroleum product price
hikes and tax revisions announced by the government:
* 3 rupees/L hike in diesel price.
* 5 rupees/L hike in petrol price.
* Govt hikes LPG prices by 50 rupees per cylinder.
* Customs duty on crude cut to nil.
* Govt cuts excise duty on diesel, petrol by 1 rupee/L.
* Customs other petro products cut to 5% vs 10%.
* Govt cuts customs duty on petrol, HSD to 2.5% from 7.5%.
* Excise duty cut to cost 66.60 bln rupees.
* Duty cut on oil pdts to cost govt 226 bln rupees.
* Revised fuel prices effective midnight