FnO Strategy - Bear put spread will pay off !

Index Strategy: Bear put spread on Nifty

Srividhya Sivakumar

Well, the Union Budget is over now and with it perhaps also the euphoria. As market participants wake up to the real impact of the budget proposals, it is quite likely that much of initial jubilation may die down. We suggest traders to set a bear put spread on Nifty to benefit from such a weakness. You can do this by buying Nifty March 4,900 put option and simultaneously selling Nifty March 4,800 put. This would result in a net initial debit as the strategy involves buying in the money put as against selling one that is out of money. In this case, you will have to shell out Rs 105 for buying Nifty March 4,900 put, while you will receive Rs 70 when you write Nifty March 4,800 put. On the whole, the spread will cost you Rs 35/share.

You can time the purchase and sale of options depending on the day's market movement to optimise your cost. Note that for the coming week, we expect the markets to trend upwards first before it begins to fall lower.

Maximum profit potential: The maximum profit for this spread will occur when the Nifty moves below the strike price of the sold option, i.e. 4,800. The maximum profit, however, will be limited to the difference between the two strikes minus the net debit paid or the cost of setting the spread. In this case, it will be Rs 65.

Maximum loss potential: When your spread is totally out of money i.e. when Nifty value is higher than the 4,900, the maximum loss that you can suffer will be limited to the net debit paid, Rs 35 – that is the money that was spent initially in setting the bear put spread.

This means in essence you would be taking a maximum risk of Rs 35 to earn a maximum profit of Rs 65. Traders with a slightly more bearish view can tweak the strike price of the sold option lower to 4,700. This will result in a slightly higher risk-return payoff. Traders can also consider going short on Nifty with a stop at 5,025.

When to exit?

Traders should consider booking profits and closing the positions as soon as the underlying trends below the strike price of the sold put option. If you feel that the likelihood of the underlying moving down is low, close the position prematurely.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Elgi Equipments

The extent of diversification has allowed Elgi to maintain growth momentum.

Vidya Bala

Investors with at least a two-three year perspective can consider buying the stock of Elgi Equipments, a manufacturer of air compressors and automobile service station equipment.

Revival in capex in the domestic market, manufacturing /trading presence in high potential developing markets such as China and Brazil and a strong cash position that allows scouting for acquisitions in new markets are factors that favour earnings growth for the company over the medium term.

At the current market price of Rs 80, Elgi's stock trades at 8.5 times its per share earnings for FY-11.

The stock is currently at a steep discount to its bigger peer Ingersoll-Rand; the latter not yet fully out of the slowdown.

Long-term play

We do not expect any significant ramp-up in revenues in the next few quarters, owing to peaking of demand (according to the management) for air compressors used for water wells and the continuing sluggishness in overseas market.

However, given that the industrial business segment has also been contributing actively to revenues and emerging markets such as Brazil and China are likely to buttress sales growth over the long term, Elgi may have to be a buy and hold candidate in one's portfolio.

The stock, at this point, could be a dark horse play; investors can consider buying it in small lots and accumulate on declines linked to broad markets.

Business

Elgi is the market leader in air compressors (over 10 per cent) as well as automobile service station equipment and is also among the larger players in Asia.

Elgi has a very wide customer base, given the diverse application of its products in sectors such as mining, transport, power, railways, oil, textiles, shipbuilding, plastics and electronics, to name a few. It also has all major automobile manufacturers as its customers.

The extent of diversification has allowed Elgi to keep up growth momentum. Even as the capex slowdown hurt capital goods companies in FY-09 resulting in decline in sales/profits, Elgi managed to grow revenues, albeit marginally even as profits remained flat.

However, strong focus on global markets resulted in a slow recovery for the company in the current fiscal. The December quarter results though, have shown the first signs of a revival with all its segments reporting growth. Revenues for this period expanded by 30 per cent, even as profits jumped 70 per cent over a year ago, thanks to a low base and lower raw material costs. Interestingly competitors such as Ingersoll-Rand and Kirloskar Pneumatic are yet to demonstrate similar decisive revival signs. However, not all is well , since the company has admitted that its demand for air compressors in the water wells segment has peaked out, which effectively means that there could be some dent in revenues.

However, pick-up in auto equipment as dealers ramp up their capex, on improved auto sales could make up for the dip in the water wells compressor demand.

Reaching out

Besides, Elgi has utilised the slowdown period to test grounds and ramp up presence in the Brazilian and Chinese markets. In Brazil, where the company's products have for long had takers, the company has set up a wholly-owned subsidiary as a trading unit.

In China, it owns a manufacturing unit and also has trading presence; the company though, may take a longer time to ramp up demand in this market, as it has to compete with local players. Nevertheless, the scope of application for Elgi's products in China, given the latter's massive manufacturing activity, combined with superior technology, is tremendous. This market could, however, take a couple of years, before it contributes significantly to the bottom line, even as revenue flow may kick in early. Elgi products' application in the oil sector has also given it a market in West Asia.

The company has a presence in UAE. This market too, in the near term is likely to remain sluggish. Elgi is in the process of acquiring a European company, which makes compressors. This move too is intended to expand geographically rather than acquire new products, as Elgi's product range, thanks to its joint ventures with many overseas players, is fairly comprehensive.

We suspect this acquisition could come at attractive valuations, given the slowdown in the region. The company has stated that it will not go for any fresh debt, suggesting that internal accruals should meet the acquisition cost. Elgi has traditionally been a debt-free company has also has a lucrative investment book.

Elgi' sales grew at 20 per cent compounded annually (to Rs 595 crore in FY-09) over the last three years, while profits expanded by 25 per cent over this period. Operating profit margins, though healthy at 12 per cent levels, could come under pressure as a result of hike in cost of steel and copper.

While any excise duty hikes in its end product is unlikely to impact margins (as its products, mostly used as inputs by clients for their business enjoy cenvat credit), as they are passed on, whether its own raw material cost hikes will hurt margins, remains to be seen.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Buy Indusind Bank

Mr Romesh Sobti, MD and CEO.

M.V.S Santosh Kumar

One of the turnaround stories in the banking industry, IndusInd Bank continues to be a good investment opportunity for investors with a penchant for risk. We expect the return on equity (ROE) of the bank to improve from 10 per cent in 2008-09 to 17.5 per cent this fiscal, helped by improved net interest margins, better credit growth and operating efficiencies. ROEs even in the current year would have been better but for the equity dilution.

The bank's operating parameters have improved sharply over the past two years with a new management taking over. Consider this. IndusInd Bank's credit-deposit ratio has improved from 67 per cent to 77 per cent in the 21 months since the new management took over. This has aided improvement in the net interest margin to 2.94 per cent for the quarter ended December 31, 2009 from 1.37 per cent in the March quarter of 2008. The cost-income ratio too improved from 67 per cent in March 2008 to 50 per cent in December 2009, even as the net NPA ratio fell from 2.27 per cent to 0.67 per cent during the same time. However, the bank has still a long way to go before it can be comparable with the best in the industry.

While the bank consistently managed more than 90 per cent net profit growth over the last four quarters, this rate of growth may moderate, going forward. An increasing base and treasury losses from hardening interest rates may temper profit growth compared with historical rates.

At the current market price of Rs 149, the stock trades at a price-to-estimated FY11 earnings multiple of 13 and at a price-to-FY11 adjusted book value of 2.6 times. This is at a discount to Yes Bank, Kotak Mahindra Bank and HDFC Bank. High earnings growth may provide justification for this valuation.

Capital adequacy

IndusInd Bank raised Rs 480 core through a QIP issue this fiscal thereby witnessing a 15 per cent equity dilution, giving the bank much needed capital to fund high rate of loan growth.

The capital adequacy of the bank improved to 14.91 per cent in September 30, 2009 from 13.14 per cent on June 30, 2009. The capital adequacy ratio of the bank stood at 13.84 per cent at December 2009. Given the current levels, capital adequacy could be maintained above 12 per cent even if the bank's loan book grows by 30 per cent over the next one year, with the aid of internal accruals. IndusInd Bank also has significant headroom in terms of Tier-II capital raising to support loan book growth. However, the cost of Tier-II capital is expensive. Further equity dilution in 2011-12 cannot be ruled out.

Business

The loan book of the bank grew by 15 per cent compounded annually during the period 2004-09 and 32 per cent as of December 31, 2009. However, the loan book growth over the period 2009-11 may improve to 30 per cent annually, helped by better credit offtake, its commercial vehicle portfolio and retail lending. Around 32 per cent of IndusInd Bank's loans are auto loans with commercial vehicles forming a significant proportion. However, the proportion of these loans has come down from 44 per cent at the end of March 2009. However, with the revival in the auto industry, these loans, coupled with retail loans that have better yields, may form a significant portion of the loan book thereby helping the bank maintain its margins.

Improving NIMs

For the first nine months of the current fiscal (2009-10), the net profit of the bank grew by 158 per cent. Improving margins due to improving credit-deposit ratio, high rate of loan book growth (32 per cent as of December 31, 2009) and re-pricing of the advances led to high levels of profit growth. Helped by branch expansion, the proportion of low cost deposits has also improved to 22.5 per cent from 15 per cent as of March 31, 2008, also reducing the cost of deposits.

With the bank starting to meet most of its priority sector lending targets, it may not be required to invest in low-yielding bonds, which further help improve the margins. NIMs can be maintained at current levels even as the rates rise if the bank manages to improve its CASA and re-prices its loans. The lower proportion of treasury income compared with its peers would also help it survive rising interest rates efficiently. Fee income continues to support profit growth. The ‘other income' component to total net revenues stood at 40 per cent for the nine months of this fiscal.

Asset quality improved

Sequentially, even over the last quarter, the bank improved its provision coverage ratio from 35 per cent to 50 per cent. The bank is positive on improving its provision coverage to 70 per cent by the mandated period. Lower NPAs coupled with high provisions would improve the coverage and also shield the bank against any credit losses going forward. IndusInd Bank's restructured assets are one of the lowest in the banking industry with only 0.36 per cent of the total advances book restructured. While a high proportion of the current NPA is from the two-wheeler and the cars industry; this may fall as the revival in economy improves the credit worthiness of these borrowers.

Few risks

Around 52 per cent of the loans in the book are fixed, which may expose it to interest rate risk. The impact of the base rate implementation could be a bit higher for the bank due to a higher cost of funds and moderate profitability margins.

Source : BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Mahindra Holidays & Resorts

The company is a dominant player in the vacation ownership business.

Srividhya Sivakumar

Shareholders with a long-term perspective can retain their holdings in Mahindra Holidays & Resorts, the leading vacation ownership provider in the country. With a business model highly dependent on the domestic consumption story, the slow uptick in the economy suggests improving prospects for the company. A strong brand equity, multiple sales channel and unique revenue model further fortify its investment appeal.

However, at the current market price of Rs 434, the stock appears fully priced, trading at about 30 times its likely FY-11 per share earnings. While not having any strict comparables and being the market leader do lend room for premium valuations, it appears fairly valued at the current price. Near-term upsides, therefore, may be limited.

Unique model

In the business of vacation ownership, Mahindra Holidays' revenue model entails an upfront payment of the ownership fee with a recurring annual maintenance fee component thereafter.

This provides for higher visibility and a more stable stream of revenues compared to that of pure hospitality players. And unlike the asset-heavy hotel industry, the company does not operate on a capital-intensive business model. It adds to its assets only against the payment received on member additions. As a result, it enjoys strong cash flows and has near-zero debt on its books.

Mahindra Holidays, however, sells a significant majority of its memberships through financing schemes (monthly instalment options) and even securitises a portion of its receivables. While financing the vacation ownerships helps add to its member count, it also complements the revenue stream by way of interest income.

The risk of default is low here considering the overall profile of its member base — consisting of mostly employed professionals who are reasonably sound financially. And since MHRIL continues to hold the assets, the impact of defaults, if any, would only be negligible.

Besides, that it has so far managed to operate with near negligible rates of default lends confidence. That said, it still remains to be seen how the company would manage member additions in an increasing interest rate regime.

High interest rates tend to curb discretionary spending by consumers and so can pose a threat to member additions. This is especially relevant in the case of MHRIL since its business operates on the difference between the interests its pays to banks and the interest rate in-built into the EMI schedule of its members.

Growing membership enrolments — which is the key driver for future growth — at historical growth rates may, therefore, not be as easy (34 per cent compounded rate over the last four years).

Financials

Even though the company has a diverse source of income, its key contribution still comes from member additions only. Of the total membership fee charged, the company books nearly 60 per cent of that in the same year, while the rest is spread over the life of the membership (typically 25 years for the flagship Club Mahindra product) as entitlement fees (annuity income). It also charges an annual subscription fees over the life of the membership.

Over the last four years, Mahindra Holidays has grown its revenues and profits at a compounded annual growth rate of about 40 per cent and 76 per cent, respectively. In the same period, both its operating and profit margins have expanded significantly to about 34 per cent and 18 per cent, respectively.

For the nine-months ended December 2009, the company managed to grow its revenues by about 18 per cent. Profits surpassed last fiscal's full year earnings helped by a slew of cost-control measures, which helped expand the operating margins by about 4 percentage points to 38 per cent.

The company, however, is required to spend considerably towards sales and marketing exercises (its largest cost component), as member additions hold the key to its growth.

While bringing down the sales and marketing expenses last quarter helped it better its operational performance, it may pose a threat to member additions if the cost component is brought down drastically. This cost component therefore may have to be monitored vis-à-vis member additions in the coming quarters.

But to its credit, MHRIL enjoys a fairly strong brand loyalty; over 35 per cent of the vacation ownerships sold in 2009 came through member referrals.

Health check since IPO

The company had raised roughly Rs 177 crore through its public issue in June last year for funding the proposed addition to its room inventory (capex to extend up to FY11).

As against 1,105 rooms in FY-09, the company had, as of December 2009, created an inventory of 1,403 rooms.

Member additions in the nine months from FY-09, however, have been lower than its yearly average, growing by about 17 per cent; it now has 109110 members as against 92,825 vacation owners in FY-09.

The member per room ratio too has improved, decreasing from 84 in FY-09 to 78 members per room now. And with average occupancies hovering around 75 per cent, the proposed addition to room inventory will further help the spread. It plans to expand its property in Coorg, Ooty and Ashtamudi and set up of new ones in Tungi and Theog.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Buy Piramal Health

Investors with a long-term perspective can consider accumulating the stock of Piramal Healthcare. A strong presence in the domestic pharmaceutical market, established relationships with several global pharma majors, and its firming hold over the high-margin inhalation anaesthetics space underscore our recommendation.

While the restrained growth in CRAMS (Contract Research and Manufacturing Services) business so far this year could mar the company's overall growth picture, signs of restocking by global pharma majors suggest that a revival may be in the offing. With innovator companies under increasing pressure to manage costs, the low-cost, high-quality offering of domestic CRAMS companies may not be easy to ignore.

Valuations too appear reasonable. At current market price of Rs 397, the stock discounts its estimated FY11 per share earning by about 15 times. Piramal's increasing domestic market presence offers it a considerable long-term growth potential. The company has been improving its market share going by its better-than-market growth in six out of the seven last quarters. While growing competition, with MNCs too entering the fray, could throw up challenges, Piramal's large field force and growing focus on tier-II and semi-urban cities will provide it an edge. New product launches (26 so far this year) and focus on lifestyle products could further complement growth.

For CRAMS, the consolidation in the global pharma landscape, in addition to restructuring of manufacturing operations at Piramal's end, appear to have cast a cloud on the segment's near-term prospects. For the nine months ended December 2009, the CRAMS business shrank by about 12 per cent. In that too, while the business from overseas was impacted significantly due to the closure of its Huddersfield plant (which has been moved to India), the India operations managed a growth of 27 per cent. The management expects the segment to get back on the growth track by next year; its strong relationship with other MNC clients, as also the long-term contract with Pfizer giving it a fillip. The other business segment that offers a significant growth potential is the global critical-care segment. Piramal now has the intellectual property to manufacture inhalation anaesthetics across the pyramid, thanks to its last year's acquisition of the US-based Minrad International. The inhalation anaesthetics present an addressable market of about $435 million in the US.

Srividhya Sivakumar

BL Research Bureau

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - BSE Outlook 2nd March 2010

Sensex (16,429.5)

The positives and negatives of the Union Budget balanced themselves to have little impact on stock prices. But Pranab Da, in a very subtle way, pleased market participants by giving them what they wanted the most – a clear plan to revert back to fiscal prudence. It may be recalled that not outlining a road-map for curtailing fiscal deficit was one of the prime reasons for the 870 points plunge in Sensex on the Budget day 2009.

Higher disposable income in the hands of the small investor through changes in income-tax slabs was a bonus. Since the Government needs a buoyant stock market to meet its colossal disinvestment target of Rs 40,000 crore, market is unlikely to face any unpleasant policy changes, at least in the ensuing months.

FIIs were net buyers on Friday though they have net sold almost Rs 2,000 crore so far this month according to BSE data. Domestic institutions continued to sell through last week. Volumes remained buoyant through the week and spiked sharply higher in the budget session. Expiry of the February contracts has resulted in the open interest coming down to a more sedate Rs 88,000 crore.

There was hardly any movement in the Sensex in the first four sessions, as the index oscillated in a very narrow range between 16,200 and 16,300. Friday's surge led the index to the intra-week peak of 16,669 but it could not sustain there for long and ended the week below 16,500.

We had outlined three possible routes that the Sensex could take on the Budget day last week. The index followed the second path -unable to move beyond 17,000 and closing the week at 16,500. The Budget day is a non-event as far as its impact on the market trend is concerned since it has altered neither the medium or the short-term trend.

It is interesting to note the similarity of patterns in the charts of all the global benchmarks. The medium term trend is down in all the indices since the mid-January peak. A mild pull-back is currently on since the beginning of February. This pull-back has however not progressed sufficiently to signal the end of the January correction.

To put it differently, all global equity markets are moving in tandem and the fate of Indian equities are strongly interwoven with that of the other markets. Since the Union Budget has not been able to scratch even the surface of the market trend, it is back to watching Greece, US, China et al to decipher where we are headed.

The medium term trend in the Sensex continues to be down and inability to move past 17,000 keeps open the risk of the third leg of the down-move from 17,790 peak unfolding that drags the index down to 15,347 or 14,530 in the days ahead. The 200 DMA at 15,910 is the critical support that most market participants would be watching in the event of a decline. A strong close above 17,000 is required to negate the current bearish medium-term view for the index.

The short-term trend in the Sensex is up. But since it is nearing key resistances at 16,775 where the 50 DMA is also poised, investors ought to stay cautious. The index could get back to a lacklustre state in the week ahead and decline to 16,280 or 16,040. The near term view will turn overtly negative on a close below the second target. Resistances for the week would be at 16,670, 16,800 and 17,000.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Nifty Outlook

Nifty (4,922.3)

The Nifty too was confined in a narrow band between 4,850 and 4,900 in the sessions preceding the Budget before Friday's spurt took the index higher to 4,992. That the index was unable to move past 5,000 on the Budget day implies that the medium-term trend in this index continues to be down. If the third leg of the downtrend from the 5,310 peak unfolds now, it can drag the index to 4,599 or 4,357. The 200-day moving average at 4,680 would be the minimum target for a decline. Close above 5,070 is needed to mitigate this bearish view.

The short-term trend in Nifty is up since the trough at 4,675. But it is possible that this uptrend ended on Friday and the index could now decline to 4,870 or even 4,796. Traders can initiate short positions in rallies with stop at 5,025. Target on a move above 5,000 is 5,067.

Global Cues

Globally equities had a tough weak as worse than expected economic readings from the US and resurfacing of the Greece sovereign debt issue dragged stock prices lower. European and Latin American indices end the week 1 to 3 per cent lower. Asian benchmarks were relatively stronger and many of them such as KLSE Composite, Nikkei, Philippines Composite, Shanghai Composite and so on ended the week marginally in the green.

CBOE VIX spiked to 22.6 on Thursday before ending the week down at 19.5 implying that investors continue in a sanguine frame of mind. The dollar index appears to have formed a short-term peak at 81.4 and that should give some relief to emerging market equities and commodities.

The Dow could not move past the key short-term resistance at 10,400 and reversed mildly from there. Support for the week would be available at 10,200 and 10,100. Decline below the second support would mean that the downtrend from January 19 peak is continuing. Conversely rally above 10,400 would send the index to a new 2010 high.

The S&P 500 has also recorded a hanging man pattern in the weekly chart that is a reversal pattern. Key resistance for this index is at 1,110 and it is currently struggling to move over this. The week ahead is critical for defining the short-term trajectory for this index.

— Lokeshwarri S. K.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Fortis Healthcare

Fortis Healthcare (Rs 156): Fortis Healthcare has key long-term resistance in the zone between Rs 120 and Rs 130 and it was struggling to move past this zone till the last week of December 2009.

In our review of this stock in December last year, we had indicated that an ascending triangle pattern was forming that had the target of Rs 170.

The stock broke out of the upper boundary of this triangle pattern in December last year and recorded the recent peak at Rs 162.4 on February 17.

Investors with a short to medium-term perspective can hold with stop at Rs 132. If this level holds, investors can expect a rally to Rs 173 over the medium-term.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Asian Paints

Asian Paints (Rs 1,809.5): Asian Paints is in a gravity-defying run over the last two decades. The decline in 2008 too did not cause a deep gash in the stock price nor could it impact the positive long-term outlook.

It was one of the first to move to a new life-time high in 2009 and is currently poised over 30 per cent above its 2008 peak.

It is apparent that the stock is in a fresh leg of its long-term bull market since March 2009. Key support for the medium-term is at Rs 1,500. Investors with a long-term perspective can therefore continue to hold the stock with stop at Rs 1,450.

A sideways consolidation between Rs 1,500 and Rs 2,050 for a few months would be construed as positive and will build the platform from which the stock can move to a new peak.

However decline below Rs 1,500 can drag the stock lower to Rs 1,350 or even Rs 1,200. Investors with a short-term investment horizon can hold the stock with a higher stop at Rs 1,640.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical analysis - Astec Life

Astec Lifesciences (Rs 45.8): Astec Lifesciences started trading at Rs 85.5 in November 2009. After recording a life-time high at Rs 96 in December that year, the stock has been spiralling lower in to an abyss.

Insufficient history makes it difficult for us to give a long-term opinion on this stock. But it is apparent that it is in an intense down-trend since the beginning of February. Close above Rs 60 is the first signal required to show that the short-term down trend has reversed.

On the other hand we cannot rule out further slide in the days ahead. Investors can therefore divest their holding at current levels and re-invest on a close above Rs 60. Subsequent targets are Rs 65 and Rs 72.

Source BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - 3i Infotech

3i Infotech (Rs 73.6): 3i Infotech had been moving in a range between Rs 75 and Rs 103 since August last year. It declined slightly below the lower boundary of this range during last week and closed rather precariously just below.

Unless the stock climbs above Rs 76 next week there is the possibility of the decline continuing to Rs 64 or Rs 55 in the months ahead. Investors should divest this stock on a move below Rs 68.

Conversely if the stock moves above Rs 75 next week, it will imply that it can progress to Rs 91 or Rs 102 in the medium term.

A weekly close above Rs 112 is needed to make the long-term view positive for this stock. Investors with long-term perspective can buy the stock in declines with stop at Rs 52.

Source : BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Technical Analysis - Balrampur Chini

Balrampur Chini (Rs 105.4): This stock is currently in strong medium-term correction, supports from which can bounce up over the ensuing months are Rs 99 and Rs 82. Investors can hold the stock as long as it holds above the second support. More of this stock can also be purchased on reversal from this level, with stop at Rs 80.

Source : BL

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Learn2trade and Gain BSE / NSE

Ravina Consulting
Ravina Consulting is a Management Consulting firm engaged in providing professional advise to the clients. Intelligent Investor is a Division of Ravina Consulting exclusively focused on providing research based support to enable Intelligent Investors to make wealth from the Financial markets in India. This program is designed with a view to help the Indian investor keen on making money
in the markets

Intelligent Investor –
Investment Advisory Division of Ravina Consulting.
Intelligent Investment Ideas for Indian Investors has been helping Investors for the last 2 decades having extensive knowledge about the Indian Capital markets.

The operations have started since the boom of 1984 and with our experience of more than 25 years we have perfected the art of giving the best Portfolio Management / Investment Advisory Services.

www.ingeniousinvestor.blogspot.com
Follow us – www.twitter.com/SmartInvestor

COURSE TITLE : ABCs of Stock Market Investing

OBJECTIVES
• Understanding Indian Financial Markets
• BSE – How it functions
• NSE – How it functions
• Commodities Exchange – How it functions
• Foreign Exchange - Basics
• Sectoral Indices
• Global Indices to track
• Technical Analysis
• Long term / Short term investing
• Day traders delight how to win and time the market 1
. Portfolio - Creating & tracking

PROGRAMME CONTENTS
The course has 1 modules consisting of 30 sessions each conducted online of 30 lectures / sessions followed by an assessment. Out of which 15 are theoretical in nature and 15 are practical applications.

TOOLS & TECHNIQUES :
We provide you with tools and explain the techniques to track the market and make money. We have the following investment options :
1. Long term investment – with holding of more than 12 Months
2. Short term investment – with holding of more than 1 month
3. Weekly investment – mostly BTST with holding of 1 week
4. Day trading – how to trade and make money


PARTICIPANTS' PROFILE
This program is designed for everyone who is keen to enter the Indian Stock
markets – B S E or N S E

Qualification :
A candidate wishing to undergo this program should be conversant with English and able to understand the program contents. Candidate should have basic knowledge of working on computers and is work with MS office and familiar with internet browsing.

Method of Delivery
Web-based / Online / telephone one hour for each session. The online sessions will be based on the presentations / study material sent to the candidates at
the time of registration.

Study Material
A well researched and informative set of study material is given to the students. A simple and easy to understand style of reports makes it easy even for the novices to know about the nuances of the Indian Share Market. The Study Material will be sent by hard copy / soft copy.

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Learn2trade and Gain BSE / NSE

Ingenioius Investor – Investment Advisory Division of Ravina Consulting. Intelligent Investment Ideas for Indian Investors has been helping Investors for the last 2 decades having extensive knowledge about the Indian Capital markets. Ravina Consulting is a Management Consulting firm engaged in providing professional advise to the clients. Intelligent Investor is a Division of Ravina Consulting exclusively focused on providing research based support to enable Intelligent Investors to make wealth from the Financial markets in India. This program is designed with a view to help the Indian investor keen on making money in the markets The operations have started since the boom of 1984 and with our experience of more than 25 years we have perfected the art of giving the best Portfolio Management / Investment Advisory Services. www.ingeniousinvestor.blogspot.com Follow us – www.twitter.com/SmartInvestor COURSE TITLE : Learn2trade and Earn / ABCs of Stock Market Investing OBJECTIVES • Understanding Indian Financial Markets • BSE – How it functions • NSE – How it functions • Commodities Exchange – How it functions • Foreign Exchange - Basics • Sectoral Indices • Global Indices to track • Technical Analysis • Long term / Short term investing • Day traders delight how to win and time the market 1 . Portfolio - Creating & tracking PROGRAMME CONTENTS The course has 1 modules consisting of 30 sessions each conducted online of 30 lectures / sessions followed by an assessment. Out of which 15 are theoretical in nature and 15 are practical applications. TOOLS & TECHNIQUES : We provide you with tools and explain the techniques to track the market and make money. We have the following investment options : 1. Long term investment – with holding of more than 12 Months 2. Short term investment – with holding of more than 1 month 3. Weekly investment – mostly BTST with holding of 1 week 4. Day trading – how to trade and make money PARTICIPANTS' PROFILE This program is designed for everyone who is keen to enter the Indian Stock markets – B S E or N S E Qualification : A candidate wishing to undergo this program should be conversant with English and able to understand the program contents. Candidate should have basic knowledge of working on computers and is work with MS office and familiar with internet browsing. Method of Delivery Web-based / Online / telephone one hour for each session. The online sessions will be based on the presentations / study material sent to the candidates at the time of registration. Study Material A well researched and informative set of study material is given to the students. A simple and easy to understand style of reports makes it easy even for the novices to know about the nuances of the Indian Share Market. The Study Material will be sent by hard copy / soft copy. For a Demo Class contact us now ! Ravina Consulting B-429 Mahaveer Tuscan Hoodi Circle, Whitefield Mahadevapura Post BANGALORE 560084 www.ingeniousinvestor.blogspot.com intellinvestor@gmail.com or call 08105737966

Market Khabar 24 August 2009

Spooked by the sharp fall in Chinese stocks, concerns over the impact of drought on economy and the spread of swine flu, markets had started on very weak note during the week ended.
However, positive global cues helped markets recover modestly during the later part of the week ended.

On the BSE, the Sensex shed 171 points to close at 15,241 and the Nifty on the NSE ended 51 points lower at 4,529. BSE Smallcap index posted positive 0.8 per cent gains, reflecting the ‘trickle down’ effect of the rally. A renewed selling pressure from FIIs was offset by a steady buying from domestic institutions.

US regulators’ deal with Swiss bank major UBS may trigger flow of hot money from tax havens to India through the P-Note route, feel analysts. Weekend positives like a strong rally in the US markets triggered by a statement from US Fed chief, Mr Bernanke, that the US economy is ‘near’ to recovery may see Indian market open ‘gap up’ on Monday.

Barring any unforeseen global scares such as last week’s red dragon, markets are likely to consolidate in a broad band at current levels till second quarter’s results season. For the week ahead, chartists predict a trading band of 14,800 and 15,650 for the Sensex and 4,380 and 4,680 for the Nifty.

Immediate supports for the indices are at 14,880 and 14,640 and 4,440 and 4,350. Expect resistance to the indices at 15,480 and 15,640 and 4,620 and 4,700. If indices manage to scale the 52-week high of 16,000 and 4,720, expect and euphoric trading. Investors are cautioned against falling into ‘booby traps’ laid by operators.

Buy good standard stocks that have stood the test of time. Remember that good stocks always come back.

SATTA GUPSHUP
* Tata Coffee’s big ticket acquisition — Eight O’Clo-ck Coffee — has begun paying dividends. The brand now contributes nearly 75 per cent of the turnover. Buy at current levels for long term target of Rs 400.

* Himatsingka Siede specialises in textile design and manufacturing of a variety of silk yarns. Restructuring benefits and rewards from the Hassan SEZ unit were evident in its Q1 performance. Buy on declines for a price target of Rs 60.

* GEI Industrial Systems is one of the leading manufacturers of air-cooled heat exchangers and steam condensers for oil and refinery, power and gas compression businesses. It has allotted equity to BanyanTree Growth at Rs 75. Stay invested for a target price of Rs 120 in medium term.

* Sunil Hitech is one of the fast growing EPS contractors. Buoyancy in power and steel industrues have helped the company pile up huge order book. Buy for a target price of Rs 225.

* Poly Medicure is manufacturer of medical devices. Its products have approvals for developed markets such as the US and Europe also. The growth of the healthcare sector and need for quality medical devices have helped the company grow at a rapid pace. Excellent Q1 results make the stock a good bet for a price target of Rs 175.

F & O
Volumes during the week ended witnessed an inverse relationship with the movement of the indices. Volumes were rising when the markets fell and vice-versa implying that market players were looking for buying opportunities at every fall.

A good rollover of long positions was seen in both index and stock futures. Nifty5000 strike Sept call option has attracted good buying interest. Punters may buy Nifty4800 strike Sept call option for unexpected gains.

Option activity indicates a strong support for Nifty between 4,350 and 4,400 and a resistance between 4,650 and 4,700. The buying interest is also seen in capital goods and select auto and banking counters.

Buy Maruti and M&M for short covering gains. Smaller PSU banks like Allahabad, Vijaya Bank and others are tipped for good gains. Among the private banks Yes Bank, Kotak Mahindra Bank and Indusind Bank look good for further gains.

Sell off in metals to be short lived. Buy Jindal Steel and Power, Sterlite and Tata Steel for targets of Rs 3,450, Rs 675 and Rs 460.

Buy Aban Offshore, Punj Lloyd and CESC above Rs 1,200, Rs 244 and Rs 340 for target prices of Rs 1250, Rs 260 and Rs 375 respectively. Technical patterns in Aurobindo, Orchid and Ranbaxy indicate surprising returns.

Action in midcap realty and IT to continue for some more time, say punters. Cement, FMCG and sugar may ‘stage’ comeback on some spirited buying.

Among the stock futures, a long build-up seen in Axis Bank, Aurobindo, BHEL, DLF, GAIL, HDIL, Idea, ICICI Bank, IVRCL Infra, Indiabulls Realty, HCL, Ranbaxy, Yes Bank and Welspun Gujurat.

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.

Source : deccan.com

BSE NSE Market Report 31 July 2009

BSE NSE Market Report 31 July 2009

The key benchmark indices surged for the second straight day as gains in Asian stocks, higher US index futures and better-than-expected Q1 June 2009 earnings of India Inc boosted sentiment. The BSE 30-share Sensex rose 282.35 points or 1.83%. The barometer index today struck its highest closing level in more than 13 months. Banking, oil & gas, IT and FMCG stocks rose. But realty stocks fell in volatile trade. The market breadth, indicating the overall health of the market weakened in the second half of the trading session compared to earlier strong breadth.

The Sensex is up 6023 points or 62.43% in calendar year 2009 as on 31 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,509.91 points or 92.02% as on 31 July 2009.

Coming back to today's trade, a bout of intraday volatility was witnessed. After surging in morning trade on firm Asian stocks, the market pared gains in early afternoon trade. The market firmed up again later. The market once again pared gains in mid-afternoon trade. The market surged in late trade on rally in RIL.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1921 companies rose 20.5% to Rs 71437 crore on 5.1% fall in sales to Rs 673497 crore in Q1 June 2009 over Q1 June 2008. The earnings season gets over today, 31 July 2009.

But a weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. On the flip side, water levels in India's 81 main reservoirs rose to 35% of capacity in the week to 30 July 2009, up from 23% a week earlier and 31% a year ago, government data showed. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Farm Minister Sharad Pawar on Friday, 31 July 2009, said that summer-sown crops such as sugarcane, oilseeds and cotton have covered more than half the normal area, and sowing is likely to rise. He also said weak monsoon rains would have a marginal impact on inflation.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

European equities were flat after moving between gains and losses in intraday trade. Key benchmark indices in France and UK were up by between 0.01% to 0.09%. Germany's DAX fell 0.07%.

Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed towards recovery. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.72% to 2.72%.

Trading in the US index futures indicated Dow could rise 36 points at the opening bell today, 31 July 2009.

US markets rallied on Thursday, 30 July 2009, logging the highest close since November 2008, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.

The Dow Jones Industrial Average rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish near the 2,000 mark. In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months while the four week moving average for new claims dropped by 8250 to 559000, the lowest level since late January 2009.

The BSE 30-share Sensex was up 282.35 points or 1.83% to 15,670.31 its highest closing since 17 June 2008. The Sensex rose 344.85 points at the day's high of 15,732.81 in morning trade. The Sensex rose 61.51 points at the day's low of 15,449.47 in early trade.

The S&P CNX Nifty was up 65 points or 1.42% to 4,636.45 its highest closing since 11 June 2009. Nifty August 2009 futures were at 4636.05 at almost the same level as the spot closing of 4636.45.Turnover on NSE's futures & options (F&O) segment was Rs 57151.46 crore, much lower than Rs 94477.38 crore on Thursday, 30 July 2009.

BSE clocked a turnover of Rs 6,249 crore, higher than Rs 6,065.04 crore on Thursday, 30 July 2009.

The market breadth, indicating the overall health of the market, was positive. But the breadth weakened when compared to a strong breadth earlier in the day. On BSE, 1401 shares advanced as compared with 1,299 that declined. A total of 101 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while rest declined.

The BSE Mid-Cap index was up 1.17% and the BSE Small-Cap index was up 0.03%. Both these indices underperformed the Sensex.

The BSE FMCG index (up 3.17%), the BSE Oil & Gas index (up 2.65%), the BSE Bankex (up 1.92%), outperformed the Sensex.

The BSE Realty index (down 1.36%), the BSE Healthcare index (up 0.39%), the BSE Power index (up 0.47%), the BSE TECk index (up 0.49%), the BSE Capital Goods index (up 1.05%), the BSE PSU index (up 1.19%), the BSE Auto index (up 1.24%), the BSE Metal index (up 1.47%), the BSE Consumer Durables index (up 1.6%), the BSE IT index (up 1.81%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.01% to Rs 1,957.10 on bargain hunting after a recent sharp fall. The Supreme Court on Thursday said, it will give a date on 1 September 2009 to expedite the decision pertaining to the Krishna-Godavari basin gas dispute between Mukesh Ambani's Reliance Industries (RIL) and Anil's Ambani's Reliance Natural Resources (RNRL). RNRL counsels Mukul Rohatgi and Mahesh Agrawal sought an early decision in the case.

RNRL chairman Anil Ambani has said the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest and will seek an early judgment in the case. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals rose after US crude futures bounced back on Thursday, ending nearly 6.4% higher to reverse losses suffered in the previous session as Wall Street sizzled and the dollar edged lower. India's largest state-run oil exploration firm by sales ONGC rose 5.91%. Cairn India rose 1.33%. On the New York Mercantile Exchange, September crude settled up $3.59, or 5.67%, at $66.94 a barrel. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, REI Agro, United Spirits, Tata Tea, rose by between 0.84% to 3.27%.

India's largest FMCG company by sales Hindustan Unilever rose 3.32%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 5.29% extending Thursday's 4.37% gains as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours on Thursday 30 July 2009.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.73% as its ADR rose 3.93% on Thursday. India's largest private sector bank in terms of operating income ICICI Bank rose 0.49% as its ADR rose 4.47% on Thursday.

Rate sensitive realty shares fell on profit taking after a recent rally. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF fell 1.48% even as net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after market hours on Thursday. 30 July 2009. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe fell by between 1.35% to 3.57%.

India's largest mobile telecom player by sales Bharti Airtel fell 3.06% on reports the merger deal between Bharti Airtel and South Africa's MTN is likely to extended to September this year. The two companies could extend the exclusivity period for discussion by a few weeks. The original timeline for discussions expires on 31 July 2009. In the event of the deal going through, the Bharti-MTN combined entity will be the third-largest wireless group globally.

India's second largest mobile services provider by sales Reliance Communications fell 2.11%, reversing early gains, ahead of its Q1 June 2009 results. The consolidated net profit rose 8.3% to Rs 1637 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours today.

IT stocks rose on better-than-expected Q1 June 2009 results by IT pivotals in the past few days. India's second largest IT exporter by sales Infosys rose 2.66% as its American depository receipt (ADR) rose 1.56% on Thursday. India's thirds largest IT exporter by sales Wipro rose 0.43% as its ADR rose 1.77% on Thursday. But India's largest IT exporter by sales TCS fell 0.68%.

Capital goods and construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Nagarjuna Construction Company, Hindustan Construction Company, Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.95% to 5%.

From capital goods space, Bharat Heavy Electricals, Larsen & Toubro, Punj Lloyd, ABB, BEML, Siemens rose by between 0.57% to 1.55%.

Some power stocks fell on profit taking even after a strong response to the Adani Power initial public offer (IPO) which opened for subscription on Tuesday, 28 July 2009. Reliance Power, Power Grid Corporation Of India, NTPC, CESC fell by between 0.47% to 3.24%.

By 16:00 IST on final day of the bidding today, 31 July 2009, the Adani Power IPO was subscribed 21.37 times.

Reliance Infrastructure rose 1.69% after net profit rose 25.35% to Rs 316.57 crore in Q1 June 2009 over Q1 June 2008. The company announced result after market hours on Thursday, 30 July 2009.

Tata Power Company rose 0.63% after its net profit rose 144.19% to Rs 396.97 crore in Q1 June 2009 over Q1 June 2008. The result hit the market at the fag end of the trading session

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 6.61%. The company on Tuesday, 28 July 2009, reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 0.56% extending Thursday's gains after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market during trading hours on Thursday, 30 July 2009.

India's top small car maker by sales Maruti Suzuki India rose 1.11%.

But, India's largest bike maker by sales Hero Honda Motors fell 2.08%. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 4.02% on Thursday, 30 July 2009.

India's largest private sector steel maker by sales Tata Steel rose 2.12%. The company's net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

But, India's second largest steel maker by sales Steel Authority of India fell 0.11%. Net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours on Thursday.

India's largest copper market by sales Sterlite Industries rose 2.91%. Net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's largest aluminum maker by sales Hindalco Industries rose 6.65% after the company reported lesser-than-expected 31% fall in net profit to Rs 480.56 crore in Q1 June 2009 over Q1 June 2008. The result hit the market in mid-afternoon trade.

India's second largest aluminum maker by sales National Aluminum Company rose 5.15% even as net profit fell 75.92% to Rs 126.45 crore in Q1 June 2009 over Q1 June 2008.

Sugar stocks fell on concerns sugar prices will fall on higher supplies after the government extended duty-free imports of both raw and refined sugar beyond 31 July 2009. Bajaj Hindusthan, Shree Renuka Sugars and Dhampur Sugars fell by between 0.89% to 3.88%.

Mahindra Satyam clocked highest volume of 1.73 crore shares on BSE. Unitech (1.65 crore shares), Suzlon Energy (1.62 crore shares), Ispat Industries (1.36 crore shares) and Cals Refineries (1.27 crore shares) were the other volume toppers in that order.

Reliance Industries clocked highest turnover of Rs 198.55 crore on BSE. State Bank of India (Rs 193.77 crore), Mahindra Satyam (Rs 181.9 crore), DLF (Rs 176.71 crore) and Aban Offshore (Rs 164.20 crore) were the other turnover toppers in that order.

Closing Bell 31 July 2009

Closing Bell 31 July 2009

The inflow of the June quarter corporate results came to an end yesterday. Buoyed by the better than expected performance of corporate India, the markets ended the week on a strong note. The benchmark index, the BSE-Sensex gained by about 2% over the previous week ending at 15,670 points, which is its highest closing level in over a year. As for global markets, Asian markets once again led the pack of gainers with Singapore, Japan and Hong Kong closing higher by 5%, 4% and 3% respectively. They were followed by Germany and France, which ended higher by about 2% each. The Chinese, US and UK markets followed suit, but remained amongst the lowest gainers this week. These three markets ended the week higher by about 1% each.

Source: Yahoo Finance

Coming to the performance of sectoral indices during the week, FMCG stocks took the cake with the BSE-FMCG index gaining by 6% over the previous week. IT was followed by stocks forming part of the information technology and realty sectors, with the BSE-IT index ending higher by 5% and the BSE-Realty index ending higher by 3%. Midcap stocks also saw some strong traction this week, with the BSE-Midcap index ending higher by about 4% over the previous week. The BSE-Smallcap index, on the other hand recorded a week on week gain of about 3%. Stocks from the pharma, oil & gas and consumer durables bore the brunt of profit booking as their respective indices, the BSE-Healthcare, BSE-Oil & Gas and the BSE-Consumer Durables indices ended lower by about 1% to 2% each.

Source: BSE

Coming to corporate news, the past week saw several large companies announce their June quarter results. Bharat Forge was amongst the top gainers in the BSE-A Group during the week. This was in spite of the company reporting a 44% YoY decline in revenues and an 84% YoY drop in profits (excluding exchange loss). However, on a sequential basis, some improvement was seen as the company’s topline grew by 23% QoQ. The company’s management indicated that there is some recovery seen in the US and the European markets. While on a year to year basis, the performance was impacted due to the unprecedented downturn, the management expects the scenario to improve going forward on the back of improved auto sales.

FMCG behemoth, HUL also announced its results during the week. The company reported a sales growth of about 8% YoY, while its operating profits increased by 13% YoY. Revenue growth was largely contributed by its soaps & detergents and personal products businesses, whose sales grew by 9% YoY and 15% respectively. The increase in sales of the soaps & detergent business was largely on the back of a 2% YoY growth in volumes. This is an encouraging sign as the volume growth for this category had declined 4% YoY in the March 2009 quarter. The company however, witnessed down trading in some of its detergent brands. Personal products business and processed foods saw strong growth due to new launches and witnessed a volume led growth. However, in terms of profitability, the company’s bottomline declined by 1% YoY (not including extraordinary items). This was on the back of lower other income and higher tax expenses.

Two-wheeler major, Hero Honda reported a revenue growth of 34% YoY. This was on the back of a stellar 25% YoY increase in volume sales. The company managed to beat the industry growth rate of 12% YoY. It also reached a market share of 59% and crossed the 1 m volume mark during the quarter. The operating profits grew at an enviable rate of 87% YoY as lower raw material costs lead to nearly 5% expansion in operating margins. Stellar operating profits translated into an equally robust bottomline growth of 83% YoY. As per the company, sales are expected to witness a gain of 7.5% this year and cross 4 m units. A strong business model coupled with favourable industry scenario and market leadership makes Hero Honda a strong play in the 2-wheeler segment.

Tata Steel also announced its 1QFY10 results during the week. The company’s standalone topline declined by almost 9% YoY. This was largely on account of lower realisations. However, in terms of volumes, the company witnessed a robust growth of 22% YoY as compared to the corresponding quarter last year. However, at an operating level, the company performed poorly as operating profits declined by 42% YoY. This was led by higher operating costs. Tata Steel’s bottomline declined by 47% YoY, slightly higher than operating profits on the back of higher interest costs and depreciation charges during the quarter.

India’s largest bank, SBI announced its numbers during the week as well. The bank reported 12% YoY growth in interest income on the back of 27% YoY growth in advances. Credit growth was higher in the large corporate segment (up 37% YoY) as well as in the retail segment (up 30% YoY), which contribute around 12% and 14% of the total loan portfolio respectively. The bank's retail portfolio was also higher by an impressive 23% YoY, contributing significantly to incremental advances growth during the quarter. The share of CASA deposit reduced to 39% at the end of 1QFY10 from 42% in 1QFY09. Higher costs of deposits resulted in a decline in net interest margins by 0.3% YoY to 2.7%. Further, the bank's net NPA declined to 1.6%. Higher other income and huge decline in provisioning requirements led to net profit growth of 42% YoY during the period. The bank is adequately capitalised with a ratio of 14.1% at the end of quarter.

Inflation (as measured by the WPI) dropped to -1.54% for the week ending July 18. During the previous week, the figure stood at -1.17% and during the same week last year, the figure stood at 12.54%. Food prices continued their upward trend during the week, while prices of fuel products witnessed a decline on a week on week basis. India’s central bank, the RBI recently stated that the uncertain outlook for the monsoons is likely to perk up food-price inflation going forward.

The Reserve Bank of India reviewed its 2009-10 monetary policy during the week. The central bank indicated a wait and watch stance given that the Indian economy has still not shown clear signs of stability. In fact, the bank plans to maintain a soft interest rate regime until there are definite and robust signs of recovery and hence has left all key rates - repo, reverse repo, CRR - unchanged. The central bank has pegged India's GDP for FY10 at 6.5%, higher than the 5.7% expected in its earlier survey in March. It has also revised inflation target for the end of March 2010 to about 5%, higher than the 4% projection it made during its annual policy in April. This is keeping in view the global trend in commodity prices and domestic supply constraints, especially on the food grains front.

BSE NSE Market Voices 31 July 2009

BSE NSE Market Voices 31 July 2009

The Sensex closed at a 13-month high today as blue chip stocks gained in strength on firm global markets, strong results and recovery hopes.

Despite taking a breather or two during the afternoon session, the bulls remained firmly rooted to the ring today.

The Sensex ended the session at 15,694 (provisional) with a big gain of 306.04 points or 1.99%. The benchmark hit a high of 15,732.81 today.

The Nifty closed at 4649.15, up 77.70 points or 1.7%. Oil, FMCG, bank, IT and metal stocks closed on a firm note.

Auto, capital goods and power stocks gave up most of their gains on profit taking. Realty stocks had a good spell but turned easy in late afternoon trade and ended well off their highs. Pharma stocks displayed a mixed trend.

Hindalco shot up by over 8.5%. ONGC and Tata Motors gained more than 6%. SBI, RIL, ITC, Infosys, HDFC, Sun Pharma, Sterlite, HDFC Bank, Tata Power, HUL and Tata Steel closed with sharp gains. Nalco, Ambuja Cements, Idea Cellular, Ranbaxy and Reliance Capital moved up sharply.

Bharti Airtel, RComm, Jindal Steel, Unitech, BPCL, Hero Honda, HCL tech, TCS, Unitech, Cipla and DLF ended on a weak note.

After enjoying some bright moments in the positive territory, several midcap and smallcap stocks drifted lower on profit taking. The market breadth was marginally positive at close.

Hold KPIT Cummins, says Prasad Kushe of Equitytrendz.com on CNBC-TV18

Neyveli Lignite has target of Rs 188, says Prasad Kushe of Equitytrendz.com on CNBC-TV18

One can consider buying TVS Motor (cmp Rs 59) at sharp declines. The stock is likely to face some resistance near Rs 65, but a strong breakout there could result in a rise to Rs 72 - 75. For now, a stop loss can be placed near Rs 48.

Balrampur Chini has target of Rs 145-150, says Hemang Jani, Senior Vice-President at Sharekhan on CNBC-TV18

Mahindra & Mahindra has upside potential of 18-20%, says Hemang Jani, Senior Vice-President at Sharekhan on CNBC-TV18

Orient Paper looks cheap, says Hemang Jani, Senior Vice-President at Sharekhan on CNBC-TV18

ABB has posted a net profit of Rs 836.084 million for the quarter ended June 30, 2009 as compared to Rs 1318.102 million for the quarter ended June 30, 2008. The company's total income decreased from Rs 16376.209 million for the quarter ended June 30, 2008 to Rs 15258.705 million for the quarter ended June 30, 2009. The stock is up by around 2% at Rs 701. One holding the stock with a long-term plan can stay invested with a stop loss near Rs 550.

Buy Patni Computer, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Banking space looks positive, says Amit Khurana, Co-Head - Institutional Equities Head-Research, on CNBC-TV18

Punj Lloyd (Rs 245) is a good stock for medium to long term. One long at the counter can stay invested with a stop loss at Rs 180 - 190 levels. The stock is likely to move up to Rs 290 - 300. One can book some profits there as the stock is likely to face some stiff resistance there.

Hero Honda looks better, says VK Sharma of Anagram Stock Broking on CNBC-TV18

Mahindra & Mahindra can re-test Rs 1001, says Hemant Thukral of Asian Markets Securities on CNBC-TV18

Enter in IT stocks on every dip, says Hemant Thukral of Asian Markets Securities on CNBC-TV18

Rural Elect has target of Rs 225, says Hemant Thukral of Asian Markets Securities on CNBC-TV18

Prefer Sterlite to Nalco, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Banking space looks positive, says Amit Khurana, Co-Head - Institutional Equities Head-Research, on CNBC-TV18

Alstom Projects India proposes to enter into a joint venture with Bharat Forge Ltd in the country

Amara Raja Batteries' net profit for the first quarter ended June 30, 2009 has increased by 185 per cent to Rs 42.57 crore as compared with Rs 14.92 crore in the corresponding quarter of last fiscal

Syndicate Bank has reported a sharp rise in its net profit for the quarter ended 30 June 2009. The PSU bank has posted a net profit of Rs 2615.60 million for the quarter ended June 30, 2009 as compared to Rs 878.90 million for the quarter ended June 30, 2008. Its total income increased from Rs 22788.00 million for the quarter ended June 30, 2008 to Rs 29748.60 million for the quarter ended June 30, 2009. The stock has spurted over 5% to Rs 84.20 following the announcement.

Major gainer: Nalco was among the major gainers on the Nifty. It touched an intraday high of Rs 305.70 and an intraday low of Rs 294. The share was quoting at Rs 305.05, up Rs 13.30, or 4.56%.

Stock zooms: ONGC touched an intraday high of Rs 1,161.90 and an intraday low of Rs 1,095. The stock was quoting at Rs 1,156.10, up Rs 56.55, or 5.14%...

SBI leads on Nifty: State Bank of India was top gainer on the Nifty. It touched an intraday high of Rs 1,810 and an intraday low of Rs 1,740. The share was quoting at Rs 1,796.70, up Rs 73.90, or 4.29%.

Minting money: Dena Bank touched an intraday high of Rs 56.65 and an intraday low of Rs 54.30. The stock was quoting at Rs 56.40, up Rs 2.25, or 4.16%.

Moving up smartly: Tata Motors touched an intraday high of Rs 414.05 and an intraday low of Rs 399. The stock was quoting at Rs 412.80, up Rs 17.40, or 4.40%.

52-week high: Patni Computer Systems touched a 52-week high of Rs 368.45. The stock was quoting at Rs 357.90, up Rs 30.15, or 9.20%.

Softpro Systems Ltd has informed that subsequent to the definitive agreement entered with the Shareholders of Cura Risk Management Software (Proprietary) Ltd, South Africa for acquiring its 100% equity stake, the company has completed all the formalities pertaining to such acquisition of CURA, South Africa. The thinly traded stock is down by around 3.6% at Rs 210 now.

IT stocks Infosys, TCS and Wipro are likely to gain further over a short run. Investors can look at buying these stocks at every sharp decline.

Oracle Financial Services and Tech Mahindra can also be tried at declines.

PTC has support at Rs 80, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Buy Tata Motors at Rs 350-360, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

SBI may head upto Rs 1850, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Welspun Gujarat can touch Rs 280, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Patni has target of Rs 400, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

Bajaj Hindusthan can test Rs 225, says Ashwani Gujral, Technical Analyst, on CNBC-TV18

One can stay invested in fertilizers stocks Nagarjuna Fertilizers, Tata Chemicals, Chambal Fertilizers and GSFC. RCF also looks good. Small quantities can be picked up at declines.

Wipro - like its larger rivals TCS and Infosys - is said to be keenly eyeing the Unique Identification (UID) Project and other large Government contracts.

Reliance Infrastructure has clocked 25 per cent higher net profit for the first quarter at Rs 317 crore against Rs 253 crore in the year ago quarter.

State Bank of India has posted a 42 per cent rise in net profit at Rs 2,330 crore for the first quarter ended June 30, aided by a robust growth in ‘other income’. The bank had reported a net profit of Rs 1,641 crore in the year-ago period.

A jump in treasury income and fee-based income enabled Indian Overseas Bank to report a 17.9 per cent growth in net profits to Rs 301.7 crore for the first quarter of 2009-10 compared with Rs 255.9 crore for the same period last year.

11:45 AM: The Nifty (4651) could move on to 4685 or even higher today if global markets continue to display strength.

On the downside, it has support at 4620 and weakness there could result in a fall to 4590 or further down.

Jain Irrigation Systems Limited has reported a sharp jump in net profit.

The company has posted a net profit of Rs 555.90 million for the quarter ended June 30, 2009 as compared to Rs 295.60 million for the quarter ended June 30, 2008. Total income has increased from Rs 4761.00 million for the quarter ended June 30, 2008 to Rs 5731.20 million for the quarter ended June 30, 2009. The stock is up 1.3% at Rs 696 now.

Reliance Infrastructure has gained over 2.5% on fairly strong results.

One holding the stock can stay invested and look to buy more in small quantities at declines. The stock looks poised for further upmove even over a near run.

Top gainer: Sterlite Industries was the top gainer on the Sensex. It touched an intraday high of Rs 655 and an intraday low of Rs 637.45. The share was quoting at Rs 648.80, up Rs 22.10, or 3.53%.

Hindalco surges: Hindalco Industries touched an intraday high of Rs 98.70 and an intraday low of Rs 94.65. The stock was quoting at Rs 98, up Rs 4.20, or 4.48% on the NSE.

Nifty has resistance at 4700, says Anagram report on CNBC-TV18

Sell Nalco below 287 with a stop loss of 289

Buy SBI above 1730 for the targets of 1750 / 1770 / Higher with a stop loss of 1720

Buy Power Finance Corp above 234 for the targets of 237 / 239 / Higher with a stop loss of 232

DLF's net profit has declined sharply by as much as 85.7% to Rs 100.40 crore in the quarter ended June 2009 from a net profit of Rs 700.99 crore the company had recorded in the corresponding quarter last year.

Sales declined 67.31% to Rs 417.97 crore in the quarter ended June 2009 as against Rs 1278.61 crore during the previous quarter ended June 2008.

The stock, however, is up in the positive territory at Rs 411 with a gain of 2.2%. The stock is likely to move in a highly volatile manner today. One with a very low appetite for risk would do well to stay away from the counter for now.

Buy IOC above 560 for the targets of 570 / 575 / Higher with a stop loss of 555

Nifty Futures: Buy above 4570 for the targets of 4599 / 4650 / higher with a stop loss of 4568

Moser Baer Limited has posted a net profit of Rs 2.76 crore for the quarter ended June 30, 2009 as compared to net loss of Rs 103.98 crore for the quarter ended June 30, 2008. The company's total income increased from Rs 496.88 crore for the quarter ended June 30, 2008 to Rs 563.40 crore for the quarter ended June 30, 2009. The stock is up 2.5% at Rs 88.50 now. One holding the stock can stay invested.

The market got off to a buoyant start this morning on strong global cues.

As blue chip stocks vault higher, the Sensex shot up to 15,663.96, recording a hefty gain of 276 points or 1.8% in a flash.

The Nifty has gained 75.45 points or 1.65% at 4646.90.

Sterlite, Tata Motors, SBI, DLF, L&T, Tata Steel, M&M, Reliance Infra, ONGC, Sun Pharma and RComm have gained 2% - 4%.

Hero Honda, BHEL, Infosys, Hindalco, RIL, ITC, ICICI Bank, Maruti Suzuki and Grasim have also risen sharply.

Stocks to watch: Indian infrastructure developer Lanco Infratech Ltd after three sources told Reuters it opened its $100 million share sale to institutional investors.

Television broadcaster TV Today after it said its board has approved spinning off its radio business.

ITC: Buy and hold for massive rise in coming months. For today's trade buy with a stop loss of 238.

TCS: Buy this stock with a stop loss of 524 for the target towards 550 marks

Maruti: It may move towards 1600. Buy with a stop loss of 1370

Support for Nifty is at 4500 Resistance for Nifty is at 4700-4789 The support for Sensex is at 15000 Resistance for Sensex is at 15600-16046

Brokerage Recommenations 31 July 2009

Hold Ashok Leyland with short-term stop loss of Rs 33 and long-term stop loss of Rs 25, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 39.40 crossing which it can go to Rs 48-50, he adds. The stock last traded at Rs 36.50, up 0.3% on the BSE.

Buy Balrampur Chini and UltraTech Cement, says Hemang Jani of Sharekhan on CNBC Awaaz Both these stocks will perform well in the future, he adds.

Hold GMR Infrastructure with short-term target of Rs 158-165, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep stop loss of Rs 136, he adds. The stock last traded at Rs 142.60, down 1.1% on the BSE.

Hold TCS with short-term target of Rs 575, says Ashu Baggri, technical analyst, on NDTV Profit. It has support Rs 463, 524 and resistance at Rs 560, 575, he adds. The stock last traded at Rs 526.40, down 0.7% on the BSE.

Hold Gujarat NRE Coke with target of Rs 70-80, says Prasad Kushe, technical analyst, on CNBC Awaaz. It has resistance at Rs 62.50, he adds. The stock last traded at Rs 57.80, up 5.1% on the BSE.

Hold Balrampur Chini with target of Rs 125, says Ramesh Arora, technical analyst, on Zee Business. Keep trailing stop loss of Rs 112, he adds. The stock last traded at Rs 118.75, up 0.7% on the BSE.

The market is likely to consolidate with a negative bias, says Vibhav Kapoor of IL&FS on CNBC TV18. He sees the Nifty ranged between 4700-4200. Q1 results have been much better than expectations and valuations are rich, he adds. He thinks the focus will shift to global cues in the absence of any major domestic trigger in the near-term.

Buy Balrampur Chini with target of Rs 145-150, says Hemang Jani of Sharekhan on CNBC Awaaz. The stock last traded at Rs 118.75, up 0.7% on the BSE.

Buy HPCL with target of Rs 380, says Salil Sharma, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 335, he adds. The stock last traded at Rs 348, down 3% on the BSE.

It was an amazing day for the Indian market which opened up on a positive note and, despite some volatility towards the latter part of the day, closed on a high. Sensex closed at 15694, up 306 points (provisional) and Nifty at 4649, up 77 points (provisional) from the previous close. CNX Midcap index was up 1.2% and BSE Smallcap index was up 0.1%. The market breadth was positive with advances at 667 against declines of 589 on the NSE.

Buy India Infoline with target of Rs 154-165 and stop loss of Rs 127, says Mitesh Thacker, technical analyst, on CNBC TV18, as market closing strategy. The stock is currently trading at Rs 136.80, up 4.2% on the BSE.

Hold on to Nifty longs with target of 4660 and stop loss of 4560, says Vijay Bhambwani, technical analyst, on CNBC TV18, as market closing strategy.

Hold PNB with target of Rs 725-730, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep strict stop loss of Rs 690, he adds. The stock is currently trading at Rs 691.30, down 1.9% on the BSE.

Buy Tata Tea with target of Rs 880, says Salil Sharma, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 825, he adds. The stock is currently trading at Rs 846.25, up 2.9% on the BSE.

Buy Sterlite Industries with targets of Rs 680 and then 700, says Husseini Wadheria, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 625, he adds. The stock is currently trading at Rs 644, up 2.8% on the BSE.

Some minutes away from close, the market is unable to hold on to the gains of the morning. Sensex is trading at 15574, up 186 points from its previous close, and Nifty is at 4613, up 41 points. CNX Midcap index is up 0.7% and BSE Smallcap index is down 0.5%. The market breadth is now negative with advances at 618 against declines of 627 on the NSE.

Hold Uttam Galva with target of Rs 74-75, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 55, he adds. The stock is currently trading at Rs 58.60, down 1.4% on the BSE.

Buy Gail with target of Rs 354, says Salil Sharma, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 320, he adds. The stock is currently trading at Rs 332, down 0.8% on the BSE.

F&O Call: Sell Nifty with today's target of 4550-4500 and stop loss of 4670, says Nishant Jain of Tradeswift on CNBC Awaaz.

F&O Call: Buy Nifty with target of 5000 in 1-2 months and stop loss of 4415, says Rakesh Bansal, technical analyst, on CNBC Awaaz. » Send to friends

F&O Call: Buy Nifty with target of 4700 above and stop loss of 4500, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz.

F&O Call: Buy Nifty with today's target of 4660 and stop loss of 4560, says Vijay Bhambwani, technical analyst, on CNBC Awaaz.

Buy Balrampur Chini with targets of Rs 130 and then 142, says Husseini Wadheria, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 102, he adds. The stock is currently trading at Rs 118.40, up 0.4% on the BSE.

Buy Tata Steel on dips with target of Rs 540, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 440, he adds. The stock is currently trading at Rs 462.90, up 2.2% on the BSE.

Buy India Infoline with targets of Rs 145 and then 156, says Husseini Wadheria, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 122, he adds. The stock is currently trading at Rs 136.70, up 4.2% on the BSE.

Buy REC with target of Rs 225, says Hemant Thukral, technical analyst, on CNBC TV18. Keep stop loss of Rs 190-195, he adds. The stock is currently trading at Rs 204.25, up 1.1% on the BSE.

Buy Punj Lloyd on dips with target of Rs 290, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 215, he adds. The stock is currently trading at Rs 245.40, up 1% on the BSE.

Buy Canara Bank on dips with target of Rs 320, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 270, he adds. The stock is currently trading at Rs 285.95, up 2.4% on the BSE.

Buy Reliance Communications with targets of Rs 292 and then 305, says Husseini Wadheria, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 272, he adds. The stock is currently trading at Rs 282.70, up 0.4% on the BSE.

Buy Voltas on dips with target of Rs 165 plus, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 125, he adds. The stock is currently trading at Rs 141.20, up 3% on the BSE.

Buy Opto Circuits on dips with target of Rs 200, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 170, he adds. The stock is currently trading at Rs 177, up 1% on the BSE.

Hold DLF with stop loss of Rs 374, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 412 crossing which it can go to Rs 442 and then 485, he adds. The stock is currently trading at Rs 401, down 0.3% on the BSE.

Buy GMR Infra with target of Rs 160-165, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 133, he adds. The stock is currently trading at Rs 143.25, down 0.6% on the BSE.

Hold Patni Computers with target of Rs 415-420, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep stop loss of Rs 325, he adds. It has resistance at Rs 385, he says. The stock is currently trading at Rs 355, up 8.3% on the BSE.

Buy ABB at Rs 666 with target of Rs 800, says Ashu Baggri, technical analyst, on NDTV Profit. Keep stop loss of Rs 599, he adds. The stock is currently trading at Rs 695.50, up 1.2% on the BSE.

Buy Nalco at Rs 290 with target of Rs 335, says Ashu Baggri, technical analyst, on NDTV Profit. Keep stop loss of Rs 269, he adds. The stock is currently trading at Rs 308, up 5% on the BSE.

Hold Suzlon Energy with targets of 150 and 175, says Prasad Kushe, technical analyst, on CNBC Awaaz. It has resistance at Rs 110, he adds. The stock is currently trading at Rs 102.75, up 3.6% on the BSE.

Hold Unitech with target of Rs 117, says Ashu Baggri, technical analyst, on NDTV Profit. Keep stop loss of Rs 78, he adds. The stock is currently trading at Rs 92.10, up 0.2% on the BSE.

Hold Sun Pharma with target of Rs 1200, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep stop loss of Rs 1125, he adds. The stock is currently trading at Rs 1172.50, up 2.4% on the BSE.

Buy Mercator Lines above Rs 65 with target of Rs 75-85, says Mitesh Thacker, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 59.40, up 0.8% on the BSE.

Buy Sterlite Industries with target of Rs 700, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 598, he adds. The stock is currently trading at Rs 650.25, up 3.8% on the BSE.

Hold Suzlon Energy with stop loss of Rs 96, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 105 crossing which it can go to Rs 112-125 at which exit, he adds. Buy again at Rs 80-82, he says. The stock is currently trading at Rs 101.30, up 2.1% on the BSE.

Hold RNRL with target of Rs 108, says Ashu Baggri, technical analyst, on NDTV Profit. Keep stop loss of Rs 70, he adds. The stock is currently trading at Rs 84.35, down 0.8% on the BSE.

Hold Reliance Capital with targets of Rs 1070 and then 1300 by August 20, says Prasad Kushe, technical analyst, on CNBC Awaaz. It has support at Rs 805 and 780, he adds. The stock is currently trading at Rs 887.45, up 3% on the BSE.

Buy Indiabulls Real Estate with target of Rs 280-290, says Hardik Jain, technical analyst, on CNBC Awaaz. It has support at Rs 220, he adds. The stock is currently trading at Rs 248.80, down 0.1% on the BSE.

Hold NIIT with target of Rs 68-70, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep stop loss of Rs 58, he adds. The stock is currently trading at Rs 61.10, up 1.6% on the BSE. »

Buy Neyveli Lignite with target of Rs 170-180 in one month, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 122, he adds. The stock is currently trading at Rs 134.80, up 3% on the BSE.

The earnings have been good and upgrades will start happening from next week, says Ratnesh Kumar of Anand Rathi Financial Services on CNBC TV18. He believes that the attention will now shift to the monsoon shortfall. The immediate challenge is to break the 4400-4700 range on the Nifty, he adds.

Buy DLF with targets of Rs 430 and then 480, says Hardik Jain, technical analyst, on CNBC Awaaz. It has strong support at Rs 350, he adds. The stock is currently trading at Rs 408.10, up 1.5% on the BSE.

Hold Punj Lloyd with short-term target of Rs 258-272, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep stop loss of Rs 236, he adds. But he advises holding for long term for better gains. The stock is currently trading at Rs 249, up 2.5% on the BSE.

Hold Nagarjuna Fertilisers with stop loss of Rs 29, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 42 crossing which it can go to Rs 60, he adds. The stock is currently trading at Rs 35.95, up 2.6% on the BSE.

An hour into opening, the market is rallying to new highs with Sensex touching new heights of this year. It is trading at 15727, up 339 points from its previous close, and Nifty is at 4667, up 96 points. CNX Midcap index is up 2% and BSE Smallcap index is up 1.7%. The market breadth is positive with advances at 981 against declines of 201 on the NSE.

Buy India Infoline at current levels or on dips with short-term target of Rs 165, says Mitesh Thacker, technical analyst, on CNBC Awaaz. It has resistance at Rs 144, he adds. The stock is currently trading at Rs 141.25, up 7.6% on the BSE.

Hold JK Tyre and exit when it goes to Rs 96-102, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Keep strict stop loss of Rs 84, he adds. The stock is currently trading at Rs 89.55, down 1.2% on the BSE.

Buy PTC India with stop loss of Rs 87, says VK Sharma of Anagram Stock Broking on CNBC TV18. The stock is currently trading at Rs 92.50, up 4.3% on the BSE.

Buy Tata Motors at Rs 350-360 with targets of Rs 450 and then 520, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 414, up 4.7% on the BSE.

Buy Suzlon Energy only if it crosses Rs 105, says Hardik Jain, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 102.35, up 3.2% on the BSE.

Buy Taj GVK with target of Rs 180, says Mitesh Thacker, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 130.75, up 7.2% on the BSE.

Buy Tata Motors with target of Rs 500-550, says Ramesh Arora, technical analyst, on Zee Business. Keep stop loss of Rs 380, he adds. The stock is currently trading at Rs 411.25, up 4% on the BSE.

Buy Lanco Infra with target of Rs 460-470 in the near term, says Hardik Jain, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 375, he adds. The stock is currently trading at Rs 419, down 0.7% on the BSE.

Buy Tech Mahindra with stop loss of Rs 820, says VK Sharma of Anagram Stock Broking on CNBC TV18. The stock is currently trading at Rs 863.50, up 1.7% on the BSE.

On the first day of the August series, the market makes a good gap-up, promising start. Earlier, the US markets closed on a positive note while Asia is trading firm. Sensex is trading at 15638, up 250 points from its previous close, and Nifty is at 4642, up 70 points. CNX Midcap index is up 1.4% and BSE Smallcap index is up 1.3%. The market breadth is positive with advances at 660 against declines of 64 on the NSE.

Buy Axis Bank at Rs 920 with target of Rs 941, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 907, she adds. The stock last traded at Rs 917.50, down 0.2% on the BSE.

Buy HUL at Rs 281 with target of Rs 286, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 277, she adds. The stock last traded at Rs 281.85, up 5.2% on the BSE.

Sell Educomp with intra-day target of Rs 4030, says Hemen Kapadia, technical analyst, on CNBC TV18. Keep stop loss of Rs 4090, he adds. The stock last traded at Rs 4064.75, down 2.9% on the BSE.

Buy ACC at Rs 876 with target of Rs 890, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 865, she adds. The stock last traded at Rs 874.30, up 2.1% on the BSE.