Buy Sesa Goa on declines

Long term investors should consider buying Sesa Goa on all declines. The scrip is in a very strong uptrend.

It has always been among the better metal performers. During bull markets, it is volatile, and on the downside during bear markets but its long term returns over 4-5 years is probably among the highest in this sector.

The stock could react in the near term and could stabilize around 425 levels. Buy on declines for a target of 750 in a years time frame.

The following data gives the returns the scrip given over a period of time

Performance

1 Week : Rs 399.95 (11.56%)

1 Month : Rs 353.60 (26.19%)

1 Year : Rs 72.75 (513.33%)

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Buy Axis Bank

We believe Axis Bank’s planned equity dilution of about 17% is a precursor to marketshare gains at a faster growth rate of 8-10 percentage points above the industry over the next few years, strongly positioning the bank for the imminent revival in GDP growth from early FY2011E onwards. This dilution will result in book value accretion of about Rs 94 per share (25% increase over pre-dilution estimates), with a reasonable post-dilution leverage of 12x, average RoEs of about 16% over FY2010-11E and EPS dilution of about 7.5% in FY2011E. Amongst factors that drive competitive advantage, steady branch expansion, comprehensive product range and channel presence are driving consistent CASA marketshare gains (increased fourfold since FY2003). Moreover, diverse fee income streams, including cash management, syndication, bond underwriting, wealth management and cards, apart from the traditional CEB and Fx income, contribute a meaningful 2% of average assets. At the CMP, the stock is trading at attractive valuations of 2.0x FY2011E ABV (post-dilution). Post-dilution valuations imply an almost 30% discount to HDFC Bank, despite similar return ratios over FY2010-11E. We maintain a Buy on the stock with a 12-month Target Price of Rs 1,106.

Buy - Bayer CropScience

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Bayer CropScience (BCS), a subsidiary of Bayer AG Group, which is a world leader in agrichemicals, enjoys 23% market share in the Indian market. We believe that there exists substantial opportunity for company to grow its domestic business considering that India consumes an average 0.48kg of pesticides per hectare (ha) compared to 4.5kg/ha in the US and 10.7kg/ha in Japan. For FY2010E, we estimate BCS to register muted sales owing to the prevailing drought-like conditions though exports would be stable. On exports front, around 80% of BCS's export revenues come from Bayer AG’s group companies. If Bayer AG outsources 10% of its requirements from its global subsidiaries, BCS stands to benefit immensely. Pertinently, BCS registered strong 20.5% CAGR in export revenues during CY2005-FY2008. On financials, we estimate BCS to improve its EBITDA margins in FY2011E to 13.1% from 11.1% in FY2009 while registering robust RoE of 24% on the back of its ongoing restructuring exercise. BCS has shut its Thane plant (around 108 acres), which could come up for sale. At Rs 349, the stock is quoting at 9.5x FY2011E EPS. Our SOTP Target Price is Rs 501 with a Target P/E of 10x for its core business and 50% discounted value of the Thane land (Rs101/share post tax). We recommend a Buy on the stock.

Buy Apollo Typres

Apollo Tyres (ATL), India’s premier tyre company which is currently ramping up its capacities to 1,000TPD from 744TPD in India (through both green and brown-field additions, entailing an investment of Rs 1, 000cr) is well-positioned to take advantage of the revival in the domestic and global auto industries. Further, the substantial decline in the prices of natural rubber and other crude related raw materials from their peak levels in 1HFY2009 is expected to boost ATL’s profitability going ahead. Also, we expect ATL stands to benefit on account of a demand-supply mismatch in the cross-ply segment on account of the existing players concentrating on building new radial facilities which would lead to better realisations in cross-ply segment thereby improving its margins and profitability in the long term. Further, in May 2009, Apollo acquired 100% shareholding of Vredestein Banden (VBBV), a Dutch tyre manufacturing company, with a production capacity of 5.5mn tyres and enjoying a market share of 1.67% in the European market. This acquisition is expected to add further impetus to the company’s growth in overseas markets. At Rs 42, the stock is currently trading at 6.4xFY2011E Earnings. We recommend a Buy on the stock with a Target Price of Rs 53.

Buy Madhucon Projects

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Madhucon Projects (MPL) has a good mix of assets, which yield consistent returns and cash flows and which we believe will facilitate it to continue investing in the high-growth businesses of real estate, power and coal going ahead. We prefer MPL on account of the following: 1) Cooling commodity prices, which we believe would benefit MPL as it has orders with fixed price contracts; 2) Despite the recent run up in the stock, there exists a substantial valuation arbitrage between MPL and its peers; 3) MPL is one of the biggest beneficiaries of the improving liquidity scenario as it has an attractive portfolio of offerings; and 4) Certain catalyst/triggers (power and coal business) are still not priced in. We have assigned a PE of 8x FY2011E EPS of Rs 25.7 for its core construction business, 1x FY2011E P/BV for its BOT business at a value of Rs 270 cr (Rs73/share). On the real estate front, we have valued the land, at Rs 18.9 cr (Rs 5.1/share). At Rs 227, the stock is trading at attractive valuations, 6.7x and 5.0x on FY2010E and FY2011E Earnings respectively, after adjusting for BOT projects, power and real estate. Therefore, we recommend a Buy on the stock with a SOTP Target price of Rs 305.

Buy - Usha Martin

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History The company is the world’s second largest steel wire rope manufacturer. It is integrated as it has coal and iron ore mines. Steel volumes are expected to be higher sequentially in 2QFY10. The company has started exporting iron ore again as it becomes economically viable at current prices and has already sold ~100,000 tonnes till now in FY10. It produces its own power. Here also it is increasing the capacity so that it will reach about 114 MW by FY11. Hence it is a company which is going to have a huge saving on cost going ahead. The stock currently trades at 10.0x and 7.7x of its FY10E and FY11E earnings, respectively. We recommend buying the stock with price target of Rs 90. (10x of FY11E EPS)

Buy Allied Digital

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Allied Digital Services (ADSL) is riding on high-growth domestic markets of system integration (SI); IT infrastructure management services (IMS) and remote infrastructure management (RIM). RIM is expected to be $13-15bn opportunity for the Indian IT industry by ’13 from the current $3.6bn, as per the latest Nasscom and McKinsey report. Recent acquisition of EnPointe Global Services (EGS), the US-based IMS provider, marks ADSL’s foray into international markets. Strong revenue visibility, changing business mix, improving margins and higher return ratio make it a good investment bet. We expect 60%-70% CAGR in EPS over next 3 years. At the current market price of Rs 470, stock trades at 7.8x and 6.5x of FY10E and FY10E earnings, respectively. This makes it quite an attractive investment bet.

Basics of Indian Stock markets

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Free float on NSE

Mumbai, March 25 The National Stock Exchange will now use the free float market capitalisation methodology to calculate its benchmark indices, it said on Tuesday.

Currently, the Bombay Stock Exchange uses free float market capitalisation for computing the value of its benchmark index, the Sensex.

Methodology
Under the free float method, the index is calculated on the basis of the floating stock or the open market shares of the company as against the method of full float based on the market capitalisation method.

Along with S&P CNX Nifty, Nifty-100 and its dollar index Defty will also be calculated on the basis of free floating market capitalisation, according to the NSE release.

The change in the method of calculation for S&P CNX Nifty and Defty will be effective from June 26, 2009, while for Nifty Junior, this methodology will come into effect from May 4, 2009.

The free float factor (Investible Weight Factor – IWF) for each company in the index will be determined based on the public shareholding of the companies as disclosed in the shareholding pattern submitted to the stock exchanges by these companies, the release mentions.

The Government holding in the capacity of strategic investor, shares held by promoters through ADRs and GDRs, strategic stakes by corporate bodies, investments under FDI category and equity held by associate or group companies would be excluded from the free float factor where identifiable separately, according to the press release.

Free float factor for each company in the index will be updated based on the shareholding pattern submitted on a quarterly basis by companies to the stock exchanges, the release said.

There will be quite a few stocks which will see an increase in their weightage in the index while many would witness a reduction in their weight on the index, said Mr Manish Sonthalia, Vice President -Equity Strategy, Motilal Oswal Financial Services.

Mutual funds and index funds will have to re-align their portfolios according to the change in the weightage of the index stocks, said Mr Sonthalia.

Stocks such as Reliance, Infosys and ICICI would gain under the new free float method, while stocks such as NTPC and ONGC would be among the big losers, said marketmen.

CNX Realty, CNX PSU Bank Index, S&P CNX Nifty Shariah Index and S&P CNX 500 Shariah Index maintained by the NSE’s group company India Index Services and Products Ltd are already being computed using free float market capitalisation methodology, the release added.

source :businessline

Market Khabar 22 June 2009

Free float of Nifty may bring high volatility

June 22nd, 2009
By C. Kutumba Rao

After 14 weeks of sustained gains, the markets closed lower during the week ended on worries that the ongoing rally has been overdone.
On the BSE, the Sensex shed 716 points to end at 14,522 and the Nifty on the NSE closed at 4,313, down 270 points. The broader market “struggled” and ma-rket breadth was deeply ne-gative reflecting the “fra-gility” of the rally.

Weak global markets, co-urt ruling in the RIL-RNRL case and unwinding of positions by FIIs have impacted the sentiment. Positive “noi-ses” from key ministries ov-er reforms and fresh “inve-stor friendly” steps from the market regulator Sebi failed to enthuse markets. Key events to watch out for in the week ahead are the US Fed meet and the F&O settlement. Removal of 50 stocks from the derivative segment and the move to compute the Nifty on free float concept may trigger high volatility in next few days. Chartists predict a trading band of 14,100-14,980 for the Sensex and 4,080-4,550 for the Nifty. Expect resistance to the indices at 14,800 and 15,000 and 4,390 and 4,480. Supports for the we-ek are at 14,180 and 13,800 and 4,220 and 4,100. Avoid fresh longs if indices do not sustain above 14,800 and 4,380. The rate of decline by the indices has been quite strong; caution advi-sed till budget. Avoid large positions and trade lightly. Be pliable at all times, but don’t overtrade. Try to avoid holding postmortem examinations of the “might have beens” in the market.

SATTA GUPSHUP
* eClerx Services is India’s first listed KPO providing data analytics and customised process solutions to global enterprise clients from its offshore delivery centres in India. It has been featured under Forbes 200 Best under a Billion list of companies judged on a number of performance criteria including growth in sales and profitability. Despite very high average return on capital employed, the stock price is at P/E multiple of just 8. Buy at current levels for target price of Rs 350.

* Allcargo Global Logistics is one of the largest logistics service provider operating in the seven key areas of the logistics business-multi modal transport, CFS, Airfreight, transport logistics, equipment hiring, project and ODC cargo handling and Oil rig and supply vessels management. The company has acquired substantial equity in Gateway Distriparks Ltd.

Sources do not rule out M&A possibility in coming few months and also indicate stock split in near term. book value of Rs 208 and TTM earnings of Rs 42 make the company’s stock is a good buy for a target price of Rs 1,200.

F & O
Mirroring the weakness in the broader markets, volumes dipped in the derivative segment ahead of settlement week. Rollover was low at 12.7 per cent compared to usual 25 per cent.

However, the total open interest saw a rise of 7.1 per cent in terms of value and 29.46 per cent in terms of number of shares.

Nifty OI PCR has dropped to 0.91; technical bounce back from current levels not ruled out. Option activity clearly defines the boundaries of the trading range-strong support at 4,200 and resistance at 4,400.
Be bearish below 4,200 and bullish above 4,400. Stock futures looking good for speculative gains are HDIL, Suzlon, Essar Oil, Educomp, ICICI Bank, India Info, Reliance Infra, Indusind, Tata Comm., Canara Bank and Dr Reddy Labs.

Spike in counters like Srei Infra, 3i Infotech, Punj Lloyd, IDBI, GDL and IRB Infra likely. GVK Power and Tata Motors are likely to gain steam on reports of pricing of QIP’s.

True to predictions renewed buying interest was seen in banking counters. Stay invested in Axis, IDBI, PNB, Union and OBC for further gains.

Reaction to merger proposal of SBI and its subsidiary is keenly awaited by markets. VIX has ended higher at 49 indicating high volatility in coming week.

Consider strangle strategy in options because direction of markets is uncertain. Before taking a position, determine exactly where the stock you are watching, or the general market, stands. A study of price, breadth, activity, time and volume will be helpful in this respect.

Source : deccan.com
C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

Brokerage Recommendations 2 June 2009

Buy Adlabs on dips with a target of Rs 450-500 in 10-12 months, says Ashish Kukreja, market expert, on CNBC Awaaz. The stock is currently trading at Rs 388, down 1% on the BSE.

Sell DLF with a target of Rs 397 and keep a stop loss of Rs 427, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 404, down 2.4% on the BSE.

Hold Aban Offshore with a target of Rs 970 then it could go to Rs 1200-1300 and keep a stop loss of Rs 825, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 955, up 2.3% on the BSE.

Sell Power Grid with a target of Rs 110 and keep a stop loss of Rs 122, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 119, down 0.21% on the BSE.

Nifty has resistance at 4600-4680 and maintain a stop loss below 4570, says Rajat Bose, technical analyst, on CNBC TV18.

Sell SBI with a target of Rs 1795 and keep a stop loss of Rs 1855, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1901, up 1.1% on the BSE.

Hold DLF with a target of Rs 515-520 where one can exit, says Akshita Deshmukh, technical analyst, on Zee Business. The stock is currently trading at Rs 407, down 1.7% on the BSE.

Hold SAIL with a target of Rs 220-240 and keep a stop loss of Rs 150, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 178, up 1.84% on the BSE.

Hold Unitech with a target of Rs 115-120 where one can exit, says Akshita Deshmukh, technical analyst, on Zee Business. The stock is currently trading at Rs 89, down 2.6% on the BSE.

Hold Praj Industries with a target of Rs 140-145 and keep a stop loss of Rs 105, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 114, down 4% on the BSE.

Hold JK Cements with a target of Rs 125 and keep a stop loss of Rs 110, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 112, up 6% on the BSE.

Hold IRB Infra with a target of Rs 180-190 and keep a stop loss of Rs 135, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 140, down 6% on the BSE.

Hold JP Associates with a target of Rs 229 and then it could go to Rs 280 where one can exit, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 215, down 2.3% on the BSE.

Hold Neyveli Lignite with a target of Rs 160 where one can book 50% profits and keep a stop loss of Rs 125, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 138, down 3.9% on the BSE.

Hold Suzlon with a target of Rs 125 and keep a stop loss of Rs 90, says Neera Jain of crnindia.com on NDTV Profit. The stock is currently trading at Rs 110, down 1.7% on the BSE.

Buy NTPC with a target of Rs 240-250 and keep a stop loss of Rs 210, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 222, down 2.4% on the BSE.

Hold Bharti Airtel with a target of Rs 1000-1200 and keep a stop loss of Rs 750, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 799, down 0.7% on the BSE.

Buy BHEL, Reliance Capital and Suzlon and hold in portfolio for good long-term gains, says Gajendra Nagpal of Unicon Finance on NDTV Profit.

The Asian markets closed muted while European markets have opened in the negative. After a gap up start today our market is taking a pause. Sensex is trading at 14615, down 224 points and Nifty is at 4455, down 74 points from the previous close. CNX Midcap index is down 0.72% and BSE Smallcap index is down 0.43%. The market breadth is negative with advances at 455 against declines of 812 on the NSE.

Hold Ambuja Cements with a target of Rs 120, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 100, up 2.2% on the BSE.

Buy BHEL with a target of Rs 2770 where one can exit and keep a stop loss of Rs 1900, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2119, down 0.3% on the BSE.

Hold Voltas with a target of Rs 140, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 125, up 4.9% on the BSE.

The market had run up too fast and was getting ahead of fundamentals, says Gajendra Nagpal of Unicon Finance, on NDTV Profit. A correction in the market is welcome and post this correction the market will be on a firmer footing, he feels.

Hold Unitech with a target of Rs 116 where one can exit, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 92, up 0.5% on the BSE.

Hold Tata Motors with a target of Rs 360 where one can exit and keep a stop loss of Rs 325, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 346, up 2.4% on the BSE.

Buy ENIL with a target of Rs 240 and then it could see a fresh upmove and keep a stop loss of Rs 190, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 230, up 3% on the BSE.

Buy Balaji Telefims around Rs 98 with a short-term target of Rs 120, medium-term target of Rs 140 and stop loss of Rs 90, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 70, up 6.2% on the BSE.

Buy Reliance Communications with a target of Rs 350 and keep a stop loss of Rs 300, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 315, down 1.7% on the BSE.

Buy Ambuja Cement around Rs 98 with a short-term target of Rs 120, medium-term target of Rs 140 and stop loss of Rs 90, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 100, up 2.5% on the BSE.

Buy Bombay Dyeing with a target of Rs 385 and keep a stop loss of Rs 345, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 362, down 1.6% on the BSE.

Buy Maharashtra Seamless around Rs 265 with a short-term target of Rs 295, medium-term target of Rs 330 and stop loss of Rs 240, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 252, down 4.7% on the BSE.

Buy Strides Arcolab with a target of Rs 155 and keep a stop loss of Rs 135, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 131, down 5.6% on the BSE. » Send to friends

10:43 AM - Sell Unitech as it will see profit booking around Rs 95 and then it could go down to Rs 87, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 93, up 0.9% on the BSE.

Buy Mahindra & Mahindra with a target of Rs 820, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 733, up 3.3% on the BSE.

Buy Moser Baer with a target of Rs 125 and keep a stop loss of Rs 93, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 101, up 0.4% on the BSE.

Buy Voltas with a target of Rs 135, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 125, up 6.18% on the BSE.

Buy Rolta with a target of Rs 155 and keep a stop loss of Rs 120, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 133, up 2.1% on the BSE.

Buy Opto Circuits with a target of Rs 200 and stop loss of Rs 175, says a technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 186, up 5.1% on the BSE.

BSE / NSE Shares analysis 2nd June 2009

BSE / NSE Shares analysis

It was a buoyant start for the market this morning with strong global cues buoying up sentiment and lifting stock prices up sharply. Due to heavy profit taking across the board, the Sensex plunged sharply into the red in afternoon trade.

Tata Steel shot up by nearly 11% today. Tata Motors, HDFC, Sterlite, SBI, ICICI Bank, M&M, Grasim and L&T also ended on a firm note. ACC, Ranbaxy, Reliance Infra, Tata Power, DLF, HDFC Bank, Wipro, NTPC, JP Associates and ONGC declined sharply.

Siemens, Axis Bank, Suzlon Energy, Idea, PNB, RPower, Nalco and Tata Comm ended with sharp losses. HCL Tech, SAIL, ABB, Cairn India, Cipla, Ambuja Cements and Hero Honda closed with notable gains.

As midcap and smallcap stocks bounced back after a weak spell, the market breadth turned positive in afternoon trade.

One can accumulate low priced bank stocks UCO Bank, Vijaya Bank, Syndicate Bank and Dena Bank for long term. Among other bank stocks, Federal Bank, Bank of India, BOB and Canara Bank look good. One can go in for these stocks at declines.

Rolta India (Rs 145) has come a long way from a dismal low of Rs 40.70 it had touched on March 12 this year. The stock can rise to Rs 170 - 180 where it is likely to face some strong resistance. One can exit the counter there and re-enter later at dips. For now, medium and long term investors can place a stop loss at Rs 110 - 115.

Bajaj Hindustan has announced that it has repurchased (buy-back) FCCBs aggregating to face value of US$ 17.928 million, for cash at a discount. After purchase and cancellation of FCCBs of face value US$ 17.928 million, the total outstanding FCCBs stands at 101.572 million.
The stock is up 4.3% at Rs 156 now. One looking at long term can stay invested at the counter.

JP Associates (cmp Rs 212) is likely to face strong resistance at Rs 225- 230 levels. One looking at short term can exit the counter at those levels and re-enter later at sharp declines. The stock has good support at Rs 140 - 145 and long term investors can hold the stock with a stop loss there.

Voltas (Rs 126) is near a crucial resistance level. The stock can move on to Rs 135 but will have to make a decisive breakout there to move up further. On the downside, it has support at 90 levels and long term investors can have a stop loss there.

Power Grid Corporation, Areva, PFC and Suzlon Energy can be picked up at declines in a staggered way if one is looking at long term. There may be a few weak spells for these stocks over the next few weeks, but their long term prospects remain fairly bright.

Bharti Airtel (Rs 800) can be retained for long term. One can consider fresh buying in the stock at Rs 730 - 740 levels. The stock is likely to face some resistance at Rs 850 and strong breakout there can result in a surge to Rs 975 or even higher.

LIC Housing Finance Ltd has informed the Board of Directors of the Company at its meeting held yesterday, had approved further issue of 1,00,00,000 equity shares of Rs 10/- each through placement with Qualified Institutional Investors (QIP). A separate item in respect of the same will be included in the Notice of 20th Annual General Meeting to be held on July 21, 2009 for approval of the Members.

One willing to wait long term can pick up bank and capital goods stocks at sharp declines. Infrastructure stocks can also give good returns. One can try GMR Infra, IVRCL Infrastructure, Gammon India and PBA Infrastructure at dips.


Though economic indicators suggest a recovery is on its way, some institutions and high net worth operators may choose to book profits and this could result in a big correction of sorts.

Realty stocks are likely to face some pressure. With the banks not willing to reduce interest rates any significantly, demand for homes may not pick up sharply in the near term. There may be a surge in demand, but then, it is not going to be sharp. And, not all realtors are likely to see a pick up in demand. Hence, one would do well to stay cautious and remain extremely selective with regard to fresh exposure.

Market Outlook

The Sensex is likely to breach the magical 15,000 mark this morning with strong global cues pointing to a positive start. There may be some profit taking later on, but the undertone is likely to remain quite firm today. Some volatility is not ruled out.

Sectors to Watch

The sharp rise in crude oil prices is likely to result in some weakness in the oil space today. Automobile stocks may also find the going somewhat tough amid worries of a possible hike in fuel prices. Cement stocks will take direction from May shipment figures.

Technology, metal and capital goods stocks are likely to attract attention. Bank and realty stocks may move up but are likely to face stiff resistance at higher levels. Buying is expected to be stock specific in FMCG and pharma sectors.

Scrip Watch

HDIL, which moved up by over 8% in the previous session, is likely to remain in focus following the company entering in to a joint venture with Mumbai Metropolitan Region Development Authority for development of 525 acre of land under Rental housing scheme at Virar. As per the arrangement, HDIL will develop approximately 13 million square feet for rental space and hand it over to MMRDA free of cost and remaining approximately 39 million of square feet space will be available to the Company for free sale.

State Bank of India has announced that it has been allotted 437,400 shares in Nepal SBI (a Nepal based joint venture bank in which SBI has a shareholding of 50%) in a divestment of stake by Agricultural Development Bank, Nepal conducted through a competitive bid process. The total shareholding of State Bark of India in Nepal SBI will reach 55%, after transfer of these shares to SBI, with due necessary regulatory approvals/clearances.

Orbit Corporation Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 03, 2009, to consider proposal for fund raising through Qualified Institutions Placement to Qualified Institutional Buyers.

PSU oil marketing major Hindustan Petroleum Corporation Limited will announced its quarterly results today.

Macro and Market Factors

The strong close on Wall Street on the back of some better-than-expected economic data and the firm trend on the Asian bourses will keep the bulls pretty busy at the Indian ring this morning.

However, for any sharp upmove to sustain, institutional investors will have to stay tuned, and more importantly, keep picking up blue chips.

Closing bell 2nd June 2009

Closing bell 2nd June 2009

Buying at lower levels during the second half of today’s trading session led the markets to recover their losses and end the day on a flat note. The BSE-Sensex ended higher by around 30 points, while the NSE-Nifty closed lower by about 5 points. Stocks from the mid-cap and small-cap spaces ended the day on a positive note, recording gains of 0.8% and 0.9% respectively. Buying activity was witnessed in stocks from the metal, consumer durables and automobile spaces, while stocks from realty and power space led the pack of losers.

Other Asian markets ended the day on a mixed note. The European indices are currently trading mixed as well. Rupee was trading at 47.1 against the US dollar at the time of writing.

Two-wheeler stocks ended the day on a firm note led by Bajaj Auto and Hero Honda. Two-wheeler major, Bajaj Auto announced its sales volumes for the month of May 2009. The company reported an 8% YoY drop in overall motorcycle volumes as compared to the same period last year. In fact Bajaj Auto’s exports, which grew by nearly 25% YoY for FY09, witnessed a 3% YoY drop in volumes during the month of May. The overall decline in volumes is a surprising development if one compares it to Hero Honda’s 22% YoY growth in volumes for the month of May. A reason for such disparity may be due to the former’s focus on the already saturated urban areas.

Telecom stocks ended the day on a weak note led by Idea and Bharti Airtel. As per data released by the TRAI, the number of mobile subscribers in India crossed the 400 m mark during the month of April 2009. During the month, there were nearly 11.9 m additions. However, this figure is lower than the previous month’s figure of 15.6 m. While this may indicate a slowdown in mobile subscriber additions, it may be noted that March, being the last month of the fiscal, the telecom operators tend to become a bit aggressive on their marketing activities. In addition, the additions also seem to have slowed down on account of withdrawal of special plans and deals. As such, on whether the Indian telecom market is facing a slowdown can be actually witnessed in the coming months. It may be noted that the department of telecom has set a target of 500 m subscribers by 2010.

Improved production levels have raised India’s infrastructure sector output by 4.3% YoY for the month of April as compared to the same month last year. Growth in production levels in core sectors such as cement, finished steel, coal and electricity, was 2.7% in the same month last year and 5.9% in the year before. However, crude oil production remained in the negative as it fell by 3.1% YoY. Last year it recorded a growth of 1%. It may be noted that the infrastructure sector accounts for nearly 27% of India's industrial output.

The Indian markets continued to trade in the red on account of sustained selling activity witnessed during the previous two hours of trade. Currently, stocks from the cement, power and realty sectors are leading the pack of losers, while select stocks from the metal, software and auto sectors are trading firm. The overall advance to decline ratio is poised at 1.2 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading weak, down by around 130 points and 45 points respectively. However, the BSE-Midcap and BSE-Smallcap indices are trading higher by around 0.2% and 0.4% respectively. The rupee is trading at 47.17 to the dollar.

Pharma stocks are trading mixed. While Sun Pharma and Ranbaxy are trading lower, Lupin and Wockhardt are trading higher. Sun Pharma announced its FY09 results recently. Net sales grew by 27% YoY led by the domestic formulations and export bulk businesses during the fiscal. Operating margins contracted by 2.6% YoY to 43.6% on account of rise in staff costs and other expenditure (as percentage of sales). Net profits grew by 22% YoY, lower than the topline growth on account of the contraction in operating margins and higher depreciation charges and tax expenses during the fiscal. The Board recommended a dividend of Rs 13.75 per share for FY09. Sun Pharma and its subsidiary Caraco together have ANDAs (abbreviated new drug application) approvals for 71 products. It filed a total of 37 ANDAs in FY09. Thus, ANDAs representing 108 products are awaiting USFDA approval, including 7 tentative approvals.

Real Estate stocks are trading mixed. While DLF and HCC are trading lower, IVRCL Infra is trading higher. As per a leading business daily, promoters of DLF are planning to buy out DE Shaw’s stake in the group firm DLF Assets (DAL). D E Shaw had invested around US$ 400 m in DAL through convertible preference shares in 2007. It may be noted that DAL is a primary buyer of properties constructed by DLF. DE Shaw had a call option on the investments due in May, which has been exercised by it. The promoters sold around 9.9% stake in DLF in order to raise US$ 760 m to pay off DE Shaw and retire some debt. As per the reports, with the real estate markets reviving, DE Shaw may stay invested so as to avail higher valuations on its investments while on the other hand promoters are likely to pay back DE Shaw and buyout the stake.

The Indian markets slipped into the red during the previous two hours of trade as profit booking was witnessed at higher levels among the index heavyweights. Currently, stocks from the banking, power and energy sectors are leading the pack of losers, while select auto and software stocks are trading firm. The overall advance to decline ratio is poised at 1.1 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading weak, down by around 110 points and 50 points respectively. The BSE-Midcap and BSE-Smallcap are also trading weak, lower by around 0.4% and 0.3% respectively. The rupee is trading at 47.17 to the dollar.

As per a leading business daily, Ashok Leyland plans to develop compressed natural gas (CNG) based heavy vehicles. It may be noted that the company has pioneered the use of CNG technology and it currently supplies CNG buses to various Indian cities. Fuel costs comprise a considerably higher portion of transportation costs as basic fuel prices like petrol and diesel have zoomed during the last decade. Further, the use of CNG fuel lowers fuel costs per kilometer as compared to diesel. Given the assurance of CNG fuel as Reliance’s KG basin has started to pump out natural gas, the supply of gas will not be an issue. The stock of Ashok Leyland is trading firm along with Tata Motors.

Banking stocks are trading weak led by HDFC Bank, Axis Bank and SBI. Axis Bank plans to raise Rs 30 bn through the issue of a debt instrument in the domestic and overseas markets. As such, the instrument would comprise Rs 5 bn of Tier I capital, while the rest will comprise of Tier II capital. The bank plans to utilise these funds for its future growth in the loan book and to expand its branch network. The bank plans to add 200 branches during FY10, which is considerably higher compared to 165 it added during FY09. It may be noted that during FY09 the bank’s advances grew by 37% YoY and capital adequacy ratio stood comfortably at 13.7%.

Closing Bell 27 May 2009

Closing Bell 27 May 2009

Strong buying activity during the final hour of trade led the Indian markets to end the day on a firm note as the BSE-Sensex ended the day higher by around 520 points, while the NSE-Nifty closed higher by about 160 points. Stocks from the mid-cap and small-cap spaces ended the day on a strong note, recording gains of 3.7% and 3.4% respectively. Buying activity was witnessed in stocks across sectors led by realty, banking and power. However stocks from the healthcare and FMCG spaces were less in favour.

Asian markets ended the day on a firm note. The European indices are currently trading in the green as well. Rupee was trading at 47.7 against the US dollar at the time of writing.

Software stocks ended the day on a firm note led by HCL Technologies, Tech Mahindra and Mphasis. As per a leading business daily, the respective managements of software majors, Infosys and Wipro expect higher demand from the domestic market and the Middle East going forward. In fact, Wipro plans to ramp up its expansion plans in the Middle East as the company expects growth to be in the region of 50% plus each year. It may be noted that the Middle East and the Indian markets are not highly penetrated as compared to the developed countries.

Auto stocks ended the day on a firm note led by Ashok Leyland, Tata Motors and M&M. A leading business daily reported that the management of Maruti Suzuki is concerned about its revenue growth coming from two of its models - Dzire and Swift. It believes that the company could face problems if this issue continued longer. The management added that Maruti’s performance in many other models was not up to the mark. Volumes of the company’s A1 models, which mainly includes the M-800, declined by 29% YoY during the year, while volumes of its C segment (includes Omni, Versa) declined by 13% YoY. On the other hand, volumes of its other two segments - A2 (which includes Alto, Wagon R, Swift, amongst others) and A3 (which includes SX4 and Dzire) grew by 54% YoY. As such, on account of the slowing volumes in the A1 and C segments, the company is trying to boost volumes by targeting the rural areas.

Consulting firm McKinsey in its latest report has stated that it expects the Indian pharmaceutical industry to grow rapidly in the coming years. It believes that the demand will largely grow in the domestic market. It expects the market to grow by at least 10% YoY to 12% YoY. In addition, the firm stated that it expects large pharma companies to weather the slowdown in the economy as they have comfortable cash positions. However, it expects smaller and highly leveraged firms to be under pressure.

The Indian markets continued to trade in the positive territory on account of sustained buying activity witnessed during the previous two hours of trade. Stocks from the telecom, power and construction sectors are leading the pack of gainers, while select stocks from the cement and FMCG sectors are trading lower. The overall advance to decline ratio is poised at 4.3 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 390 points and 95 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 2.9% and 2.6% respectively. The rupee is trading at 47.66 to the dollar.

Energy stocks are trading firm led by ONGC, GAIL and Reliance Industries. As per a leading business daily, the government is likely to double the prices of natural gas sold through the administered price mechanism (APM) to US$ 4.2 per m British thermal unit. It may be noted that all the gas produced from the existing fields in nominated blocks of ONGC and OIL is treated as APM gas. It amounts to around 45 m cubic meters a day and accounts for around 34% of India’s total natural gas production. It may be noted that selling of gas under APM has resulted in huge losses for the producing companies. ONGC had accounted for a loss of around Rs 21.4 bn for its gas business in FY08 due to the same. As such, it is a positive development for the company.

Shipping stocks are trading firm led by G.E. Shipping and Mercator Lines. As per a leading business daily, Indian shipping companies are likely to face margin pressures in the coming quarters on account of a fall in tanker freight rates due to subdued oil demand. It may be noted that average freight rates of tankers have fallen by around 40% to 60% as compared to last year. Moreover, freight rates are expected to remain lower as vessel utilisation is likely to remain low in 2009.

The Indian markets held on their gains during the previous two hours of trade as buying activity was witnessed across sectors. Currently, stocks from the metals, realty and banking sectors are leading the pack of gainers, while select telecom and power stocks are trading weak. The overall advance to decline ratio is poised at 4.7 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 330 points and 80 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 2.7% and 2.6% respectively. The rupee is trading at 47.66 to the dollar.

Aluminium stocks are trading firm led Nalco and Hindalco. As per a leading business daily, Nalco has cut aluminium prices to the tune of Rs 4,000 to Rs 5,000 per tonne on the back of increasing threat of imports. The company has been facing a threat from large exporters in Chinese and Bahrain markets as the Rupee has appreciated against the US dollar. This move will help the company to quote prices at parity with the imports. It may be noted that CMIE expects aluminium demand to remain firm during FY10 on account of a healthy requirement from the electrical power equipment and construction sectors. Nalco plans to cater to the growth in demand through its various expansion plans.

As per a leading business daily, ITC will have to suspend production at all it facilities in order to introduce sufficient changes in cigarettes packets to reflect the mandatory pictorial warnings from June onwards. This new packaging would mean application of more colours, which require advanced printing cylinders. This would increase the total cost of packaging by at least 15%. It will also put Indian manufacturers at a further disadvantage compared to the illegally imported cigarettes on account of the huge price gap. It may be noted that the tobacco industry is already facing turbulent times due to the economic slowdown. Adherence to the mandatory pictorial warnings will further slacken the industry’s revenues going forward. The stock of ITC is trading lower currently.

BSE / NSE Shares analysis

BSE / NSE SHares analysis

The bulls, with strong global cued aiding them no end, went on a rampage and guided the market to a buoyant close today. Stocks, with the exception of those from the FMCG space, had a splendid run in the positive territory as buying continued right through the session.

Better-than-expected consumer confidence data from the U.S. and strong stimulus by the Chinese government kept the mood in Asian markets pretty upbeat today.

The Sensex ended at 14,095.97 (provisional) with a thumping gain of 506.74 points or 3.73%. The index, which opened nearly 200 points up today, hit a high of 14,122.78. The Nifty closed at 4274.60, up 157.90 points or 3.84% over its previous close.

Realty, bank, power, metal, capital goods and PSU stocks ended with strong gains. IT, consumer durables, oil, auto and pharma stocks also closed on a high note.

Reliance Infrastructure shot up by nearly 15%. Sterlite, ONGC and DLF gained 8.5% - 9.5%. Grasim and Ranbaxy moved up by over 7%.

ICICI Bank, HDFC Bank, SBI, JP Associates, Tata Motors, L&T, HDFC, RComm, RIL, Infosys, TCS, Tata Steel, Tata Power and M&M closed on a high note.

RPower, Idea Cellular, HCL Tech, Siemens, Reliance Capital, Axis Bank, Nalco, Cairn India, Unitech, Suzlon, GAIL India, RPL, BPCL and Power Grid Corporation finished with strong gains.

Buying has gathered tremendous momentum in late afternoon trade and the Sensex now looks set to end on an upbeat note. The barometer, which zoomed to 14,122.78 on aggressibe buying in blue chips, is up by over 500 points or 3.72% at 14,095.22 now. The Nifty is up 154.50 points or 3.75% at 4271.20.

Reliance Infra, RPower, Idea, Sterlite, ONGC, HCL Tech, DLF, Grasim, Reliance Capital and Ranbaxy have gained 7% - 14.5% now. ICICI Bank, SBI, JP Associates, HDFC Bank, Tata Motors, L&T, BHEL, HDFC, RComm, TCS, Infosys, Tata Steel, Tata Power and M&M are also up with strong gains.

Finance minister Pranab Mukherjee has stated that he will present the full budget for 2009-10 in the first week of July and that reviving growth momentum of the economy will be the top priority for the government but revival would not be at the cost of fiscal prudence.

Mukherjee said the UPA had in its manifesto committed to presenting the budget within 45 days of formation of the government. Keeping that deadline in mind, the budget for 2009-10 will be presented in the first week of July, he said, adding the government would endeavour for the budget to be passed before July 31.

GMR Infrastructure Ltd has informed that GMR Kamalanga Energy Ltd, a subsidiary of the Company achieved financial closure. The GMR Infra stock (up 4.2% at Rs 164) is a good buy at 20 - 30% down from its current levels. Though one can expect some decent gains in the near run, a strong corrective spell is not ruled out.

Godfrey Phillips India Ltd, a flagship company of K K Modi group, is planning to invest around Rs 270 crore on distribution, retail and other areas as part of its entry into new markets in the country.
The company is also setting up a manufacturing plant with an investment of around Rs 200 crore in Thane, Mumbai. The cigarette manufacturer today launched its Four Square Kings and Four Square Gold brands for the Tamil Nadu market.

On expectations the Union Budget, to be presented early July, will turn out to be quite market friendly, investors are seen picking up stocks with renewed vigour. Action ahead of May series derivatives expiry has also contributed to the surge.

RNRL (Rs 80) can move on to Rs 93 and some strength there can result in a rise to Rs 105 or even higher. On the downside, the stock has good support near Rs 60. Long term investors can hold the stock with a stop loss there.

Simplex Projects has recently bagged some major contracts for construction of bridges over rivers and Automatic Multi-level Car Parking facility from Government of Tripura for construction of bridges over rivers under different packages for an approximate value of Rs 113 crore and from New Okhla Industrial Development Authority for design, construction, operation and maintenance (for a period of 20 years) Multi-level Automatic Car Parking facility at Sector-38, Noida for an approximate value of Rs 93 crore.

With these orders, the total outstanding order book position, including international orders, stands at Rs 3000 crore as on date. These orders are to be executed over the next three years.

MRPL has posted a net profit of Rs 6076.20 million for the quarter ended March 31, 2009 as compared to Rs 2253.30 million for the quarter ended March 31, 2008. Total Income (net of excise) has decreased from Rs 95320.00 million for the quarter ended March 31, 2008 to Rs 66059.50 million for the quarter ended March 31, 2009. The stock is up by over 6% at Rs 69.70 at present.

Sesa Goa (Rs 165) has support at Rs 153 - 155. A breach there can result in a fall to Rs 135 or even lower. On the upside, the stock can rise to Rs 193 where it is likely to face some resistance.

NLC (Rs 133.65) can move on to a new 52-week high shortly. The stock had hit a high of Rs 150.75 in late May 2008. It then tumbled to Rs 44.50 on 27 October that year. One looking for some solid gains over a medium or long term can go in for NLC at current levels.

Before the budget, the market is likely to see some big rallies like the one it is witnessing today. One running in profits would do well to book some at sharp rallies. A re-entry can be made later as some corrective spells are not ruled out in the next couple of weeks.

Gammon Infrastructure Projects Ltd has informed that Rajahmundry Godavari Bridge Ltd, the SPV incorporated for implementing the project for designing, constructing, financing, operating and maintaining a major bridge across the river Godavari connecting Rajahmundry and Kovvur in Andhra Pradesh has achieved the 'Financial Closure' for its project with a consortium of bankers for an aggregate loan amount of upto Rs 566 crores.

The Project, costing Rs 861 crore, is entitled to a Central Government grant of Rs 118.6 crore and a grant of Rs 88.95 crore from the Government of Andhra Pradesh. The Project is on BOT basis for a period of 25 years, including a construction period of 3 years.

Anu's Laboratories Ltd has informed that a meeting of the Board of Directors of the Company will be held on June 03, 2009, to consider the issue of bonus shares and raising of additional funds by way of issue of debt, equity or any other security in one or more tranches as the Board may deem fit. The Board will also consider increasing the authorized capital of the Company.

Cummins India (Rs 269) can move up sharply over a medium run. Investors holding the stock can stay invested and look at buying more at sharp declines. Long term investors can place a stop loss near Rs 150.

One can go in for cement and infrastructure stocks with a medium term plan. Ambuja Cements, Ultratech, ACC, Dalmia Cements, India Cements and Rain Commodities look good. A modest exposure can be tried now and more can be bought at declines. Among infra stocks, GTL Infra, Gammon, IVRCL Infrastructure and GMR look set for a sharp upmove.

Nucleus Software has announced that Bank of Philippine Islands has chosen the company's FinnOne Customer Acquisition System - Corporate SMD module to support loans evaluation and origination process for the bank's small and medium enterprise clients.

Nucleus Software has been chosen for the task considering its expertise in technology focused on the SME sector. The stock has gained over 5% at Rs 91.25 at present.

The Sensex zoomed to 13,943.45 after opening nearly 200 points up at 13,780.41. At 13,932.15, the barometer is up by 342.92 points or 2.52% at present.

The Nifty has vaulted to 4220.60, gaining more than 100 points or 2.44%.

On Tuesday, the Sensex and Nifty had ended lower by 3.35% and 2.85% respectively.

Market Outlook

The market is likely to open with a big positive gap this morning on strong global cues. There may be some profit taking at higher levels, but the undertone is likely to remain fairly upbeat right through the day.

Sector Watch

Power stocks are likely to gain ground. Bank stocks may see some listless trades, but are most likely to trade in the positive zone for a better part of the session. Realty and capital goods stocks will be in focus. Select technology and metal stocks may move up.

Scrip Watch

Cummins India Limited has posted a net profit after tax of Rs 118.18 crore for the quarter ended March 31, 2009 where as the same was at Rs 75.6 crore for the quarter ended March 31, 2008. Total income increased to Rs 1072.16 crore for the quarter ended March 31, 2009 from Rs 716.39 crore it had earned for the quarter ended March 31, 2008. The board of the company has recommended a final dividend of Rs 2.60 per share of Rs 2 each (130%) aggregating to Rs 9 per share of Rs 2 each (450%) for the year ended Match 31 2009.

Tata Communications may move up sharply on strong quarterly numbers. The company has reported a sharp rise in standalone net profit for the quarter ended March 2009. During the quarter, the profit of the company rose 5.14 times to Rs 3,023.70 million from Rs 588.60 million in the same quarter last year. The EPS was at 10.61, up by over 5 times year-on-year.

Reliance Power may see action on reports that the company is likely to earn more than Rs 40 billion over the next 10 years by selling carbon credits from its upcoming Sasan power project in Madhya Pradesh.

BHEL, Cairn India, Jindal Steel, NIIT, MRPL, Asahi India, Britannia Industries, Panacea Biotec, Indraprastha Gas, Godrej Industries, Emco and Tamil Nadu Newsprint & Papers will be announcing their results today.

Macro and Market Factors

The strong rally on Wall Street on the back of buoyant consumer confidence data and the resultant surge in Asian markets is likely to bring the bulls back to the ring this morning. Expiry of May series derivatives contracts is not far away and one can expect some hectic short-covering following the huge setback in the previous session.

Brokers Recommendations - 27th May 2009

Buy JP Hydro with a target of Rs 120 in 3-4 months, says Rakesh Bhansal of SMC Global, on CNBC Awaaz. The stock is currently trading at Rs 67, up 7.04% on the BSE.

Hold Bharat Bijlee with a target of Rs 950 where one can exit and stop loss of Rs 840, says Rakesh Bhansal of SMC Global, on CNBC Awaaz. The stock is currently trading at Rs 920, up 6.8% on the BSE.

This is a dream market for traders who can buy on dips and sell on any sharp rally, says Sudarshan Sukhani, technical analyst, on CNBC TV18. This is a momentum market and it looks good to go to 4500 on Nifty, he feels. Buy on dips but don't make it long term, he adds.

Positive global cues help our market trade strong and look very good. Sensex is trading at 14087, up 498 points and Nifty is at 4264, up 148 points from the previous close. CNX Midcap index is up 3.01% and BSE Smallcap index is up 3.17%. The market breadth is positive with advances at 1056 against declines of 207 on the NSE.

In the power space, buy NTPC, Power Grid, REC International, ABB and Siemens for long-term gains, says Salil Sharma of Kapoor & Sharma Company on Zee Business.

Buy DLF with a target of Rs 378-390 and stop loss of Rs 348, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 363, up 7.8% on the BSE.

Hold Elecon Engineering with a target of Rs 81-89 and stop loss of Rs 67, says Salil Sharma of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 80, up 9.9% on the BSE.

Buy Idea Cellular with a target of Rs 84-90 and stop loss of Rs 69, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 79, up 13.6% on the BSE.

Hold Praj Industries with a target of Rs 125 in four months, says Salil Sharma of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 103, up 1.7% on the BSE.

Buy IOC with a target of Rs 595-615 and stop loss of Rs 548, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 573, up 1.6% on the BSE.

Hold PTC with a target of Rs 110 in four months where one can exit and keep a stop loss of Rs 78, says Salil Sharma of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 87, up 1.9% on the BSE.

The market is looking good and trading firm. Sensex is trading at 13952, up 363 points and Nifty is at 4218, up 101 points from the previous close. CNX Midcap index is up 2.48% and BSE Smallcap index is up 2.61%. The market breadth is positive with advances at 1068 against declines of 198 on the NSE.

Buy Alok Industries with a target of Rs 28-34 and stop loss of Rs 19, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 23, up 9.6% on the BSE.

Hold DCB with a target of Rs 51 where one can exit and keep a stop loss of Rs 37, says Salil Sharma of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 40, up 3.6% on the BSE.

Buy Info Edge with a target of Rs 800-825 where one can book partial profits and keep a stop loss of Rs 620, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 675, up 0.01% on the BSE.

Buy GTL Infra with a target of Rs 46-55 and keep a stop loss of Rs 37, says Salil Sharma of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 41, up 1.09% on the BSE.

Simplex Projects bags two orders worth Rs 206 crore and their total order book stands at Rs 3000 crore, reports NDTV Profit. The stock is currently trading at Rs 91, up 4.99% on the BSE.

Hold RNRL with targets of Rs 90 and then 110, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 80.20, up 3.8% on the BSE.

Go short on L&T with targets of Rs 1250 and then 1210, says Ashu Kakkar, technical analyst, on NDTV Profit. Keep stop loss of Rs 1310, he adds. The stock is currently trading at Rs 1302, up 3.8% on the BSE.

Buy Balrampur Chini at Rs 80-81, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 83.25, down 2.4% on the BSE.

Book profits in Suzlon Energy and buy again on dips at Rs 72-65, says Ashu Kakkar, technical analyst, on NDTV Profit. The stock is currently trading at Rs 90.15, up 4% on the BSE.

Buy Vijaya Bank at Rs 32 with target of Rs 45, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 37.50, up 2.7% on the BSE.

I expect the markets to be range-bound in absence of any fresh triggers in the short-term, says Devesh Kumar of Centrum Broking on CNBC TV18. Investors should not expect too much from the budget as it may turn out to be a populist one, he adds.

Hold Tata Motors with stop loss of Rs 300, says Nitin Murarka of SMC Global on Zee Business. It has resistance at Rs 350 crossing which it can go to Rs 400 at which levels book profit, he adds. The stock is currently trading at Rs 340.35, up 4.6% on the BSE.

Go short on the Nifty with target of 4100-4075 in 2-3 trading sessions, says Ashu Kakkar, technical analyst, on NDTV Profit. Keep stop loss of 4255, he adds.

Buy Sesa Goa at Rs 150-160, says Mehraboon Irani of Centrum Broking on CNBC Awaaz. The stock is currently trading at Rs 163.35, up 5.6% on the BSE.

Buy Alok Industries on dips at Rs 18.50-19, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep target of Rs 25-26, he adds. The stock is currently trading at Rs 22.95, up 7.5% on the BSE.

Hold ICICI Bank with target of Rs 850, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 696.70, up 4.5% on the BSE.

Will return to consolidation of fiscal stance in 2-3 years, says Pranab Mukherjee, Indian Finance Minister, reports NDTV Profit. We will address long-pending measures for financial sector and meet banks on benign plan of action, interest rates, he adds. He says that the mandate of the people has provided booster dose to the government.

Buy Sterlite Industries on dips with medium-term target of Rs 690-725, says Rajat Bose, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 582, up 7.8% on the BSE.

We will produce the budget within 45 days, in the first week of July, says Pranab Mukherjee, Indian Finance Minister, in his first press conference after taking over as FM in the new Government, reports NDTV Profit. We will try to complete the budget process by July 31, he adds. The top-most priority is to revive growth momentum, he says.

Buy Unitech on dips with stop loss of Rs 68, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 75.50, up 3.7% on the BSE.

Hold GMR Infra with target of Rs 210, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 140, he adds. The stock is currently trading at Rs 163.20, up 3.7% on the BSE.

Buy DLF at Rs 315-320 with target of Rs 375-380, says Ashwani Gujral, technical analyst, on CNBC TV. The stock is currently trading at Rs 357.60, up 6.1% on the BSE.

Hold AIA Engineering with stop loss of Rs 200, says Nitin Murarka of SMC Global on Zee Business. It has resistance at Rs 235 crossing which it can go to Rs 250 at which levels book profit, he adds. The stock is currently trading at Rs 224.80, up 4.7% on the BSE.

Buy DLF with target of Rs 395-400, says Salil Sharma, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 320, he adds. The stock is currently trading at Rs 355.50, up 5.5% on the BSE.

Buy Bombay Dyeing on dips at Rs 230-235, says Ashwani Gujral, technical analyst, on CNBC TV18. It has resistance at Rs 355, he adds. The stock is currently trading at Rs 313, up 7.9% on the BSE

Buy NTPC with targets of Rs 215 and then 230, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 201.70, up 0.2% on the BSE.

Hold Aban Offshore with stop loss of Rs 800, says Nitin Murarka of SMC Global on Zee Business. It has resistance at Rs 900 crossing which it can go to Rs 1050 at which levels book profit, he adds. The stock is currently trading at Rs 881, up 3.2% on the BSE.

Buy Dish TV with stop loss of Rs 42, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 47.30, up 3.7% on the BSE.

Buy Neyveli Lignite with intra-day target of Rs 140, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 128, he adds. The stock is currently trading at Rs 135, up 3.1% on the BSE.

Buy Hindalco with intra-day target of Rs 84-87, says Rajat Bose, technical analyst, on CNBC Awaaz. Medium-term target is Rs 115-120, he adds. The stock is currently trading at Rs 83.50, up 4.5% on the BSE.

Buy Escorts with intra-day target of Rs 65, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 55, he adds. The stock is currently trading at Rs 61.80, up 5.3% on the BSE.

Buy Uttam Galva with intra-day target of Rs 47, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 41.50, he adds. The stock is currently trading at Rs 45.65, up 5.4% on the BSE.

Buy Infosys at Rs 1548 with target of Rs 1570, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 1530, she adds. The stock is at Rs 1543.20, up 2.3% on the BSE.

Buy Bharti Airtel at Rs 771 with target of Rs 797, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 760, she adds. The stock is at Rs 770.40, down 5.1% on the BSE.