Monday, April 27, 2009

BSE / NSE Shares Analysis for 27th April 2009

BSE / NSE Shares Analysis for 27th April 2009

After a weak start, the market rebounded into the positive territory but ended flat amid high volatility today.The negative trend on the Asian and European bourses following the outbreak of swine flu did weigh in to an extent, but the slide was not significantly sharp.  The Sensex ended at 11,363.72 (provisional) with a gain of 34.67 points or 0.31%.  The barometer hit a high of 11,492.10 today.  The Nifty closed at 3469.05, down 11.70 points or 0.34%.

Bank, capital goods and pharma stocks moved higher.  IT stocks found some support in afternoon trade.  FMCG, oil and auto stocks displayed a mixed trend.  Realty, power and metal stocks declined.

ICICI Bank, Wipro, Jaiprakash Associates, Axis Bank, Sterlite Industries, TCS, Ambuja Cements, Sun Pharma and L&T closed on a firm note.  BHEL, M&M, ITC and Maruti Suzki also posted sharp gains.  Ranbaxy, Reliance Infra, RComm, HUL, SBI, Tata Power, Tata Steel, ACC, Tata Motors, Hindalco and ONGC ended with sharp losses.

Midcap and smallcap stocks attracted profit taking.  The market breadth was marginally negative at close.

Jaiprakash Associates Limited has posted a net profit of Rs 385.32 crore for the quarter ended March 31, 2009 as compared to Rs 210.41 crore for the quarter ended March 31, 2008. Total Income has increased from Rs 1345.28 crore for the quarter ended March 31, 2008 to Rs 2194.57 crore for the quarter ended March 31, 2009.  The stock has gained over 5% to Rs 132.25 now and a further upmove looks very likely in the near run.

Bank, capital goods and pharma stocks have outperformed today. Though Asian and European markets exhibited weakness today following the outbreak of swine flu, Indian stocks have fared reasonably well.  Hectic action in the derivatives segment ahead of April series expiry has rendered the market quite volatile.

One holding quality bank and capital good stocks can stay invested.

Idea Cellular (Rs 61.50) looks set for a sharp rise over a medium term.  One holding the stock can continue to do so and buy more of it in case of declines.  A rise to Rs 75 - 78 looks quite likely. One can book some profit at those levels and re-enter later at declines.

Oriental Bank of Commerce has posted a net profit of Rs 1958.20 million for the quarter ended March 31, 2009. Total Income has increased from Rs 20710.10 million for the quarter ended March 31, 2008 to Rs 26893.80 million for the quarter ended March 31, 2009.  The bank had recorded a net loss of 994.40 million in the January - March 2008 quarter.  The stock is down with a marginal loss at Rs 135.65. Investors looking for some sharp gains over a short run, can try this stock at current levels.

Investors holding Bank Baroda, Bank of India, Indian Bank and IOB can continue to hold them for decent gains over a short run.  One with a good appetite for risk can buy these stocks even at current levels.  However, considering the possibility of some strong correction after recent impressive rally, it is advisable to restrict fresh buying to modest levels.

Despite the company posting strong results, the Petronet LNG stock is struggling for support today.  The stock, currently traded at Rs 52.55, touched a high of Rs 54.90 earlier in the day.  Investors holding the stock with a long term view, can continue to stay invested and look at buying more at declines.  For now, a stop loss can be placed at Rs 30, near the stock's 52 week low.

Global cues are weak and the Indian market, which had a good run in the positive zone earlier in the day, has drifted down now.  Due to short-covering ahead of April series derivatives expiry, some front line stocks may bounce back and score sharp gains.  But, investors looking for fresh exposure would do well to wait for now.

Glenmark Pharmaceuticals Limited has announced that the company's subsidiary has received tentative approval from US-FDA for cholesterol-lowering agent Ezetimibe.  At Rs 196.25, the pharma stock is down marginally from its previous closing mark.  
One looking at long term can stay invested in the stock. More quantities can be added at declines.

Indian Bank's net profit for the January - March2009 quarter rose to Rs 3940.738 million.  The bank had posted a net profit of Rs 2416.686 million for the quarter ended March 31, 2008. Total Income has increased from Rs 16728.474 million for the quarter ended March 31, 2008 to Rs 21484.794 million for the quarter ended March 31, 2009.

Bank Baroda has posted a net profit of Rs 7526.90 million for the quarter ended March 31, 2009 as compared to Rs 2764.40 million for the quarter ended March 31, 2008. Total Income has increased from Rs 38857.00 million for the quarter ended March 31, 2008 to Rs 49924.10 million for the quarter ended March 31, 2009.  Indian Bank and Bank of Baroda stocks are up by 5.5% and 6% at Rs 123.50 and Rs 323 respectively.

Exide Industries Limited has posted a net profit after tax of Rs 682.00 million for the quarter ended March 31, 2009 as compared to Rs 628.20 million for the quarter ended March 31, 2008.  Total Income has increased from Rs 7963.60 million for the quarter ended March 31, 2008 to Rs 8011.30 million for the quarter ended March 31, 2009.  The stock, which opened on a positive note and remained rangebound fill a few minutes to noon, has rallied sharply to Rs 56.25 now, recording a handsome gain of 6.55%.

HDFC (Rs 1820) is a good stock to own.  The stock had hit a low of Rs 1116 in early March this year and a has come a long way off that mark now.  Further upside looks very likely in the near to medium term. Still, a few weak spells are not ruled out.
One looking at fresh exposure to the counter, can try it at Rs 1700 levels.

Fulford India has raised Rs 40.25 crores by issuing 7,00,000 Equity shares of Rs 10/- each at a premium of Rs 565/- per share, to its promoters Dashtag.  The funds were raised to provide capital in order to permit the Company to strengthen its position in the market and act on strategic business growth opportunities.  The stock is down nearly 2% at Rs 170 at present.

One can stay invested in infrastructure stocks Gammon India, IVRCL Infra and GMR Infrastructure for solid gains over a medium run.  One with a good appetite for risk can go in for these stocks even at their current levels.  

Research wings of some leading brokerage houses are maintaining a buy rating on Hero Honda.  The stock, according to many of these research units, can be accumulated at declines.  At present, the Hero Honda stock is traded at Rs 1126. A rise of 15% - 20% looks likely from here.

Cipla (up 5.5% at Rs 252.50) can give decent returns over a short to medium run.  The stock has moved up sharply on strong quarterly results, but some weakness is not ruled out in coming sessions.  One holding the stock can stay invested. Those looking at fresh exposure, can enter the counter at declines.

Stock prices tumbled in early trade on the major Indian bourses this morning as weak cues from Asian markets prompted a sell-off.  The Sensex opened with a negative gap of nearly 100 points at 11,237 and slipped to 11,181.  At present, the barometer is down 133 points or 1.18% at 11,196.

Compiled and Brought to you by 

Equity Research Team

Intelligent Investor -
Invest Advisory Arm of

Ravina Consulting
Bangalore India

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