BSE / NSE Shares analysis for 9th april 2009

BSE / NSE Shares analysis for 9th april 2009

Mastek has posted a net profit of Rs 33.38 crore for the quarter ended March 2009.  For the corresponding quarter last year, the company had posted a net profit of Rs 34.89 crore.  At Rs 144, Mastek is up with a sharp gain of 8.65% at present. One looking at fresh exposure to the stock can wait for now. HCL Technologies (Rs 122) can be retained for long term with a stop loss near Rs 90.  One can consider buying more of this stock around Rs 110.

Other IT majors TCS, Infosys, Tech Mahindra and Oracle Financial Services can also be picked up at sharp declines from current levels . 

investors looking at long term can go in for ONGC and Cairn India.  Since a fall from current levels is not ruled out, it is advisable to restrict exposure to modest levels now. More quantities of these stocks could be added at declines from here.  BPCL, HPCL and Indian Oil Corporation, the PSU oil marketing stocks may struggle a bit. One can sell these stocks at rallies and consider a re-entry later at declines.   

One can continue to hold LIC Housing Finance (cmp Rs 268) and look at buying more at 5 - 10% down from current levels.  Though the stock may not not see a sharp upmove in the very short run, a fairly good rise looks likely over the next 6 - 12 months. 

Stay invested in Power Grid Corporation (cmp Rs 96.35). The stock is likely to yield good returns over a medium to long run.  NTPC, NLC and ABB can also give solid returns over a long run.  Reliance Power can be bought at Rs 100 - 105 levels. Crompton Greaves too can be picked up in a staggered way.

 

Investors looking at long term can stay invested in ITC (cmp Rs 186).  A stop loss can be placed near Rs 150. One can consider buying more of this stock at Rs 170 - 175 levels.  HUL, Marico and Dabur India are among the other good picks from FMCG space for long term.

 

Asian markets have ended on a firm note today on hopes of a strong stimulus from the Japanese government.

European markets are trading firm at present. Back home, price movements have turned quite choppy in afternoon trade.  The market bounced back in a telling fashion yesterday after a severe setback. And it rallied quite sharply after a setback of sorts today. Still, it is advisable to take some profits as a sustained upmove looks unlikely. 

India’s industrial production declined 1.2% in February 2009 compared to a 0.4% rise in January 2009. The government revised upwards the January 2009 industrial production to 0.4% from a provisional fall of 0.5%. Investors expect RBI to ease monetary policy on the back of weak industrial production and the fall in inflation.Betting on this hope, investors are seen picking up stocks from rate sensitive realty, banking and auto stocks today. 

Though a further upside is not ruled out in the very near run, the market may also see some strong spells of correction over the next couple of weeks. Any negative news flow from across the globe can result in a sharp slide. Hence, one would do well to stay cautious and restrict exposure within one’s means. 

Sun TV Network has informed that its new channels ‘Kushi TV’ and ‘Chintu TV’ will be on air as a Kid’s channel in Telugu and Kannada languages respectively with effect from April 12, 2009.  ’Kushi TV’ and ‘Chintu TV’ will be the first 24 hours kid’s channel in their respective languages targeting children with regional and international flavour.  The Sun TV Network stock (cmp Rs 193) can be bought at declines for long term. One holding the stock can stay invested with a stop loss near Rs 140 - 150 levels. 

 One can consider buying Torrent Power (cmp Rs 98.25) at Rs 85 - 90 levels.  NLC (Rs 94), Crompton Greaves (Rs 137), GMR Infra (Rs 109) and NTPC (Rs 197) can also be picked up in a staggered way for long term. 

Inflation rose 0.26% for the week ended March 28, 2009. It had moved up by 0.31% in the previous week.  With inflation trending lower, there are expectations that the Apex bank would announce a cut in CRR, Repo and Reverse Repo rates. 

Investors with a medium or long term plan can continue to hold IVRCL Infrastructure, GMR Infra, Reliance Industrial Infrastructure and Gammon.  One can also consider buying more of these stocks at sharp declines from current levels. 

These stocks may struggle at times in the near run, but their long term prospects look fairly bright. 

One looking for some intra-day gains can try Adlabs now.  The stock, traded around Rs 221 at present, can move on to Rs 233 or even higher.  A stop loss can be placed near Rs 212. One looking at medium term, can hold the stock for some solid returns. 

The Nifty (3351) is likley to face stiff resistance at 3365. A strong breach there can result in a rise to 3400 or even higher.  On the downside, the benchmark is likely to find good support near 3320. A pronounced weakness there can result in a fall of another 20 - 30 points. 

One can consider going long in Bajaj Hindustan, Balrampur Chini and Triveni Engineering for some smart gains over a short to medium run. Rajshree Sugars, EID Parry and Shree Renuka Sugars can also give fairly good returns over a medium term. 

L&T’s order book has grown fatter with the company bagging fresh orders worth Rs 605 crore from the Water and Steel sectors in the last quarter of Fiscal 2009. 

The company secured three orders aggregating Rs 416 crore from the Water sector and another order of Rs 189 crore from the steel sector.  One holding the stock (cmp Rs 825) with a long term view can stay invested with a stop loss around Rs 560. Small quantities can be added at sharp declines from current levels.