Closing Bell 3rd June 2009

Closing Bell 3rd June 2009

After falling into the red during the afternoon session, persistent buying activity during the second half of trade led the indices to end the day on a flat note. The BSE-Sensex ended the day lower by around 5 points, while the NSE-Nifty closed higher by about 5 points. Stocks from the mid-cap and small-cap spaces continued their upsurge as they ended the day with gains of around 1.5% and 2.1% respectively. While buying activity was witnessed in stocks from the FMCG, consumer durables and healthcare spaces, stocks from the banking and IT space ended the day on a negative note.

Most of the other Asian markets ended the day on a positive note. The European indices are currently trading in the red. Rupee was trading at 46.97 against the US dollar at the time of writing.

Aluminium stocks ended the day on a firm note led by Hindalco and Nalco. As per a leading business daily, the government is likely to impose a 10% safeguard duty on the imports of key aluminium products that are used in the automobile and machinery sector. It may be noted that of late, the aluminium industry has been under pressure due to cheaper imports from China, South Korea, Oman and Iran. This move by the government can be viewed as a step to support the domestic aluminium producers.

Cement stocks ended the day on a firm note led by Ambuja Cements and ACC. The month of May 2009, was a strong one for the cement industry as it recorded high volumes sales on account of higher demand. A leading business daily reported that Ambuja Cements increased its shipments by around 8.3% YoY, while that of Grasim Industries and UltraTech Cements grew by around 20% YoY each. As for Shree Cement, the company has recorded an increase of 32% YoY during the month. However, this is mainly on account of new capacity additions. It may be noted that the period before the monsoon season is usually the peak season for the construction sector.

In a recent meeting between the Finance Minister and exporters, issues and possible measures to tackle the falling exports were discussed. A leading business daily reported that the exporters have asked for an exemption from fringe benefit tax as well as faster refunds of service tax. In addition, they have also called for an interest rate of 7% for exports-related credit. In addition to all this, they proposed a Rs 50 bn fund which would allow them to market their products in emerging overseas markets like East Europe, Latin America or Africa. It may be noted that exports have been falling continuously for the past seven months on account of the falling demand from markets such as the US and Europe.

Profit booking at higher levels led the indices to move into the negative region during the previous two hours of trade. However, the overall advance to decline ratio continues to remain in favour of the former at 2.2 to 1 on the BSE. Currently, stocks from the IT and banking spaces are leading the pack of losers, while stocks from the consumer durables, FMCG and healthcare sectors are trading firm.

Two-wheeler stocks are currently trading mixed with Bajaj Auto trading firm, while Hero Honda and TVS Motor are trading in the red. In a move to safeguard itself from declining domestic volumes growth in addition to boosting sales, Bajaj Auto is looking to expand its business in markets such as Africa and Europe. As per a leading business daily, the company is looking at exploring these regions for marketing and selling its motorcycles particularly models such as the Boxer, CT 100 and Pulsar. While the company did witness a fall in volumes sales (even in export markets) during the month of May 2009, it may be noted that during FY09, nearly 29% of its total unit sales (including other two-wheelers and three-wheelers) comprised of motorbikes sold in the export markets. In fact, exports (as a whole) witnessed a 25% YoY growth in over all volumes over the previous year.

FMCG stocks are trading firm led by Dabur, Marico and HUL. As per a leading business daily, FMCG companies continued to witness high volume growth in the key products like detergents, soaps, biscuits and toothpastes. The industry volumes have grown by 20% YoY during the month of April and May 2009, mainly attributed to lower raw material costs and excise benefits that companies passed on to the customers. The growth was witnessed both, in the urban and rural areas. In fact, the industry expects volume growth of around 30% YoY for the entire FY10 led by strong demand in the rural areas. Further higher brand promotions and new launches (variants and price points) by the company are also expected to drive growth.

The Indian markets continued to trade in the positive territory on account of sustained buying activity witnessed during the previous two hours of trade. Stocks from the auto, telecom and aluminium sectors are leading the pack of gainers, while select stocks from the banking, software and energy sector are trading weak. The overall advance to decline ratio is poised at 4.2 to 1 on the BSE.

Pharma stocks are trading mixed. While Dishman Pharma and Ranbaxy are trading higher, Wockhardt is trading lower. As per a leading business daily, Dishman Pharma is likely to start its operations in China by August-September of 2009. The company is setting up a facility at Shanghai which will produce quaternary salts and medicine intermediates for international clients. It may be noted that Dishman Pharma is a leading player in the contract research and manufacturing services (CRAMS) space. It has invested around US$ 10 m in the Chinese facility. The management expects the facility to generate revenues of around US$ 10 m in first year of operation and US$ 20 m to US$ 25 m annually thereafter. While the company imports around 20% of active pharmaceutical ingredients (API) from China, the new facility in Shanghai is likely to reduce the cost of raw materials for it. Also, it plans to invest around Rs 1 bn in FY10 in order to boost the capacities at the Shanghai facility and the oncology facility at Ahmedabad.

Steel stocks are trading mixed. While Tata Steel and JSW Steel are trading higher, SAIL is trading lower. As per a leading business daily, India’s largest steel producer, SAIL managed to grow its domestic sales by 12% in May 2009 as compared to same period last year. It sold around 1 m tonnes (MT) during the period, which is the highest ever monthly sale recorded by it. It may be noted that the saleable steel production grew by 5% to 1.1 MT during the same period. SAIL’s domestic sales in the first two months of the current fiscal now stand at around 1.9 MT. The management of the company has planned a target of selling around 13 MT of steel in FY10. As per reports, demand for steel is likely to fall across the world except for India where it will likely grow by 6% to 7%.

Brokerage Recommendations 2 June 2009

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BSE / NSE Shares analysis 2nd June 2009

BSE / NSE Shares analysis

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

Market Outlook

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

Sectors to Watch

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

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

Scrip Watch

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

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

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

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

Macro and Market Factors

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

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

Closing bell 2nd June 2009

Closing bell 2nd June 2009

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

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

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

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

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

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

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

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

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

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

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

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

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

Brokerage Recommendations 1st June 2009

Brokerage Recommendations 1st June 2009

Buy Everonn System with a short-term target of Rs 375 and long-term target of Rs 550 and stop loss of Rs 310, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 344, up 3.9% on the BSE.

Buy Sesa Goa with a target of Rs 190-240 and stop loss of Rs 160, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 169, up 2% on the BSE.

Buy RIIL around Rs 1184 with a target of Rs 1450 and stop loss of Rs 1095, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 1164, up 4% on the BSE.

Buy Suzlon with a target of Rs 125 plus and keep a stop loss of Rs 85, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 113, up 16% on the BSE.

Buy Biocon Industries with a target of Rs 240-260 in 15 days and stop loss of Rs 175, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 185, up 2.4% on the BSE.

Buy Wipro with a target of Rs 417 and stop loss of Rs 390, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy. Buy Nifty June Futures with target of 4560 and stop loss of 4510, he adds.

Buy Crompton Greaves with a target of Rs 325 and stop loss of Rs 270, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

In the banking space, buy BoI, PNB, SBI and BoB for good long-term gains, says Gaurang Shah of Geojit BNP Paribas, on NDTV Profit.

Buy Unitech around Rs 86 with a short-term target of Rs 108, medium-term target of Rs 152 and stop loss of Rs 72, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 92, up 15.2% on the BSE.

Buy Voltas with a target of Rs 135 plus and keep a stop loss of Rs 90, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 115, up 17% on the BSE.

Buy Praj Industries around Rs 111 with a short-term target of Rs 135, medium-term target of Rs 140 and stop loss of Rs 98, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 111, up 2.3% on the BSE.

Hold Satyam with a target of Rs 57-61-75 where one can exit and stop loss of Rs 52, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 56, up 6% on the BSE.

Buy Suzlon around Rs 109 with a short-term target of Rs 118, medium-term target of Rs 150-175 and stop loss of Rs 90, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 110, up 13.11% on the BSE.

The market is holding on to its gains and trading firm. Sensex is trading at 14830, up 208 points and Nifty is at 4525, up 76 points from the previous close. CNX Midcap index is up 2.32% and BSE Smallcap index is up 2.99%. The market breadth is positive with advances at 1010 against declines of 249 on the NSE.

Buy Sobha Developers with a target of Rs 203 and one can add more for long-term, keep a stop loss of Rs 195 (for long-term stop loss is Rs 188), says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 199, up 3.4% on the BSE.

Buy SAIL with a target of Rs 191 and stop loss of Rs 150, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. This is a fundamentally good stock and can be accumulated on dips for long-term gains and partial profits can be booked in rallies, he adds. The stock is currently trading at Rs 174, up 1% on the BSE.

Hold Indiabulls Real Estate with a target of Rs 270-320 and book partial profits at higher levels, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 252, up 2.5% on the BSE.

Buy Inox Leisure with a target of Rs 119 and stop loss of Rs 104, says Anil Singhvi, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 110, up 2.5% on the BSE.

Buy JP Associates with a target of Rs 245, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 212, up 2.3% on the BSE.

Buy Adlabs with a target of Rs 400 and stop loss of Rs 335, says Anil Singhvi, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 377, up 1.5% on the BSE.

Buy JP Hydro with a target of Rs 85-87, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 73, up 3.9% on the BSE.

Buy Reliance Communications with a target of Rs 340, says Hemant Thukral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 322, up 5.3% on the BSE.

The Asian markets had a good session and Euopean markets opened positive. Good global cues help our market power ahead. Sensex is trading at 14838, up 212 points and Nifty is at 4529, up 80 points from the previous close. CNX Midcap index is up 2.42% and BSE Smallcap index is up 2.82%. The market breadth is positive with advances at 1013 against declines of 250 on the NSE.

Buy Noida Toll Bridge with a target of Rs 48 and stop loss of Rs 39, says Anil Singhvi, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 41, up 4.3% on the BSE.

Buy Kesoram Industries with a target of Rs 320 and stop loss of Rs 300, says a technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 309, up 2% on the BSE.

Buy Taj GVK with a target of Rs 112 and stop loss of Rs 90, says Anil Singhvi, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 107, up 14% on the BSE.

Buy Apollo Hospitals around Rs 520 with a target of Rs 530-550, says Pankaj Pandey of ICICI Securities, on NDTV Profit. The stock is currently trading at Rs 522, up 1.8% on the BSE.

Buy Cairn India with a target of Rs 260 and keep a stop loss of Rs 227, says Salil Sharma of Kapoor & Sharma Company on NDTV Profit. The stock is currently trading at Rs 248, up 7% on the BSE.

The market may see some consolidation at higher levels around 14625 for the Sensex, says Pankaj Pandey of ICICI Securities, on NDTV Profit. If Sensex level of 14727 is broken the market is headed for 15580, he adds.

Buy Dewan Housing with a target of Rs 150, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 144, up 10% on the BSE.

Buy Tata Communications with a target of Rs 550 and stop loss of Rs 450, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 482, up 2.1% on the BSE.

Buy Suzlon with a target of Rs 125, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 104, up 7% on the BSE.

Voltas has bagged two orders worth Rs 300 crore, reports CNBC TV18. The stock is currently trading at Rs 109, up 11.9% on the BSE.

Buy RIL with a target of Rs 2360-2370, says Salil Sharma of Kapoor & Sharma Company on NDTV Profit. The stock is currently trading at Rs 2294, up 0.72% on the BSE.

Buy Lanco Infra with a target of Rs 425, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 360, down 2% on the BSE.

Buy Suzlon with a target of Rs 115 and stop loss of Rs 90, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 105, up 8% on the BSE.

Buy Voltas with a target of Rs 120, says Prakash Gaba and stop loss of Rs 94, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 108, up 11% on the BSE.

Buy GMR Infra with a target of Rs 200 and stop loss of Rs 155, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 167, up 1.7% on the BSE.

Buy Unitech with a target of Rs 100, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 82, up 4% on the BSE.

Buy Suzlon with a target of Rs 120, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 104, up 7% on the BSE.

Buy DLF with a target of Rs 450, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 420, up 4.1% on the BSE

BSE / NSE Shares analysis 1st June 2009

BSE / NSE Shares analysis 1st June 2009

The board of directors of AXIS Bank has approved borrowing / raising funds to the extent of Rs 3,000 crores in FY 2009-10 by issue of Debt instruments. The bank plans to raise Rs 500 crore or equivalent amount in Indian / foreign currency by issue of debt instruments in domestic and / or overseas market, eligible for inclusion in tier I capital and Rs 2,500 crore or equivalent amount in Indian / foreign currency by issue of debt instruments in domestic and / or overseas market, eligible for inclusion in tier II capital.

TVS Motor has reported a decent growth in vehicles sales in May 2009. TVS Motor Company's domestic motorcycle sales clocked a 3% growth in May 2009 over May 2008. Total motorcycle sales, however, slipped 2.23% to 53,495 units in May 2009 over May 2008. The stock is trading at Rs 46.30 at present. One looking at long term can stay invested in the stock and pick up more of it at declines.

Glenmark Pharmaceuticals has received ANDA approval from U.S. FDA for Hydralazine Hydrochloride Tablets. The product has been approved in the active strengths of 10 mg, 50 mg and 100 mg as the AB rated generic Pliva's equivalent Hydralzine Hydrochloride. The tablets are indicated for the treatment of essential hypertension.

Parsvnath Developers Limited has got the approval for its 'Parsvnath La Tropicana' project. The Premium luxury project in the heart of Delhi, is estimated to be worth arond Rs 1300 crore.
The Parsvanath Developers stock is up 1.25% at Rs 98 now. One looking at long term can try this stock at declines. Last message received on 6/1/2009 at 11:19 AM balakumar subramanian:

Religare Enterprises and Swiss Reinsurance Company have signed a non-binding agreement to develop a joint venture health insurance company in India. The proposed JV will further strengthen Religare's diversified portfolio and bolster it presence in the insurance domain.

One seeing some good profits in Cairn India (cmp Rs 248) can book some at current levels. The stock is likely to face some resistance at these levels. Though a further rise is not ruled out, some profit taking here is not a bad idea. The stock is a good buy at Rs 220 - 225 levels.

Hero Honda Motors has reported a sharp 22.5% jump in vehicle sales for the month of May 2009.
Vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008. The company plans to launch a 100 cubic centimetre (CC) motorcycle in the price band of Rs. 40,000-45,000. The bike in the entry-level category will be launched by the end of the current fiscal. At Rs 1353, the stock is up by nearly 1.25% now. Long term investors can continue to hold the stock.

One looking for some solid gains over a short to medium term can try Suzlon Energy (cmp Rs 106) at Rs 95 levels. The stock is likely to face some resistance near Rs 115 but a strong breakout there can result in a surge to Rs 130 - 135. One looking at long term can have a stop loss at Rs 70 - 75 levels.

RComm, DLF, Sun Pharma, HDFC, Tata Steel and ACC are up y 3% - 7%.
Reliance Infra, ICICI Bank, Tata Motors, Sterlite, Bharti Airtel, ITC, Grasim, L&T, BHEL, Tata Power and Ranbaxy have also risen sharply. RIL, Infosys and Wipro have also posted strong gains.

Market Outlook

The market is expected to open on a firm note and remain positive for a major part of the session. Some profit taking is likely at higher levels.

Sector Watch

Realty, bank and automobile stocks are likely to attract attention. IT stocks are expected to rebound and regain some lost ground. Capital goods and metal stocks may edge higher. A fair amout of buying is seen in infrastructure space.

Scrip Watch

Sun Pharmaceutical may attract attention. The pharma major has posted a rise of 22.24% in net profit after minority interest of Rs 18,177.30 million for the year ended Mar. 31, 2009 as compared to Rs 14,869 million for the year ended Mar. 31, 2008.

Unitech is likely to be in focus on reports that the company is looking at repaying about Rs 20 billion of its debt and bring it below Rs 60 billion level by the end of this fiscal.

Macro and Market Factors

The Wall Street closed on a firm note on Friday as investor sentiment remained fairly buoyant. Asian markets are trading firm with an expansion in Chinese manufacturing for a third month raising hopes of a global economic recovery.

Strong GDP numbers has sent stock prices soaring higher on the Indian bourses last week and the mood is likely to remain quite upbeat this morning with strong global cues aiding the sentiment further.

Closing Bell 1st June 2009

Closing Bell 1st June 2009

Auto stocks ended the day on a firm note led by M&M, TVS Motors and Bajaj Auto. Auto sales numbers for the month of May 2009 have begun to trickle in. Two-wheeler major, Hero Honda announced a 23% YoY increase in volumes as compared to last year. On the other hand, its peer group company TVS Motors announced a 5% YoY rise in vehicle sales during the month. This rise in volumes was aided by higher domestic motorcycle sales and moped sales. However, exports for the month slipped by 21% YoY. For FY10, the company’s management has indicated that it expects the volumes to increase by 10% YoY. Further, India’s largest passenger car maker Maruti Suzuki, recorded a 16% YoY growth in volumes during the month of May 2009. This was largely aided by higher export sales, which grew by 87% YoY, while its domestic sales grew by 10% YoY.

Pharma stocks ended the day on a firm note led by Panacea Biotec, Wockhardt and Aurobindo Pharma. Glenmark Pharmaceuticals has received the final approval from drug regulator US FDA for marketing its anti-hypertension drug. As per the company, it will immediately commence marketing and shipping its generic in the US market. As per certain estimates, the market size of such hypertension drugs is poised to be around US$ 55 m (Rs 2.8 bn) as of March 2009.

The global economic slowdown has taken its toll on Indian exports, which for the month of April 2009 fell by almost one-third as compared to the same month last year. It may be noted that exports have now fallen for nearly 7 months in a row. During the month of April 2009, the figure stood at US$ 10.7 bn as compared to US$ 16.1 bn last year. During FY09, exports grew by a mere 3.4% to almost US$ 169 bn. On the other hand, the slowdown in domestic markets has also lowered imports by nearly 36% YoY during the same period. Imports on the other hand have dropped mainly on account of a 58% YoY reduction in oil import.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 180 points and 70 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 2.7% and 3.1% respectively. The rupee is trading at 46.95 to the dollar.

Banking stocks are trading mixed. While SBI and Yes Bank are trading higher, Axis Bank and PNB are trading lower. As per a leading business daily, SBI is planning to increase its number of deposit holders in rural areas in order to raise more deposits at lower interest rates. It aims to add around 40 m rural deposit accounts by FY11. It may be noted that the bank has currently around 50 m accounts on the deposits side, while 10 m accounts on the advances side in the rural areas. It also plans to increase its CASA to 45% in FY10 as against 39% during FY09. Further, it plans to cover additional 50,000 villages during the current fiscal. In fact it has tied up with Indian Post to mobilize deposits and loans in rural areas. This is a positive move by the bank as it would enable it to mobilize low cost deposits from the rural areas and improve its net interest income margins which stood at 2.9% in FY09.

Steel stocks are trading higher led by Tata Steel and JSW Steel. As per a leading business daily, Tata Steel got approval from its lenders to reset the terms and conditions of covenants. Covenants are agreements between a company and its lenders that stipulate the condition under which loan is granted. It may be noted that Tata Steel had raised debt of £ 3.7 bn for the acquisition of Corus in 2007. The revised covenant package does not involve any additional finance from the lenders or rescheduling of debt servicing commitments. However, the company will not have to pay any extra interest cost for the remaining tenure of the loan. Also, as part of the agreement reached with lenders, earnings related covenants will largely be suspended till FY10 and would resume from FY11 with significantly higher flexibility as compared with the original covenants. Tata Steel will infuse £ 425 m into Tata Steel UK in a phased manner, out of which £ 200 m would be used to prepay debt at Corus in order to deleverage its balance sheet.

Though trading in the green, the Indian markets have pared some of their early gains during the previous two hours of trade on the back of selling pressure among the index heavy weights. Currently, stocks from the realty, metals and IT sectors are leading the pack of gainers, while select banking and telecom stocks are trading weak. The overall advance to decline ratio is poised at 3.6 to 1 on the BSE.

Power stocks are trading firm led by NTPC, Power Grid and Reliance Power. As per a leading business daily, NTPC is likely to acquire coal mines abroad. For this, the company has identified two to three coal blocks in Mozambique and Indonesia, for which due diligence is currently being done. Although, the company has recently signed a 20 years long-term Fuel Supply Agreement with Coal India to assure supply of coal for a portion of its capacity expansion, there is still a shortfall of coal supply of around 18 m tonnes during the current fiscal which is likely to be met through imports. It may be noted that NTPC has outlined massive capacity expansion plans with 22,000 MW greenfield projects by the end of the 11th five year plan period that would push up the coal requirements for NTPC going forward.

As per a leading business daily, M&M has launched a major revamp of its tractor business as it looks to sharpen its product line-up and protect its market share. The tractors from Punjab Tractor, which it acquired recently, will constitute the lower end category, while that manufactured by M&M will be slotted in the premium category. Both the categories will have different distribution and marketing channels. However, the back-end operations like sourcing of raw materials, manufacturing and product development will be the same. The company currently commands a market share of 41% in the tractor business. The stock of M&M is currently trading firm on the bourses.

Backed by strong global cues, the Indian markets are trading in the positive for the fourth session in a row. All the stocks on the NSE Nifty are trading firm with engineering, telecom and energy stocks leading the pack of gainers. The overall advance to decline ratio is poised at 6.9 to 1 on the NSE. As regards global markets, the US markets ended on a high note. For the month of May, Dow jumped 3.8%, while the S&P 500 rose 5.2% and the Nasdaq advanced 3.6%, their biggest three-month run since 2007. The European markets too closed higher last Friday. The Asian indices are currently trading firm.

Colgate announced its FY09 results last Friday. The topline saw a growth of more than 15% YoY during the quarter as well as the full year. Its market share improved to 52.2% (Jan - March 09) from 48.2% last year. Colgate outpaced industry growth, both in the toothpaste and the toothbrush category during 2008. While the toothpaste industry grew 14.5%, Colgate registered a growth of 18%. In the case of toothbrush, it saw a growth of 17.3% as against the industry growth of 7.6%. Operating margins during 4QFY09 improved by 3.9% YoY. For FY09, the margins improved to 20%, up 0.7% YoY. Excluding extraordinary items, the bottomline grew by 27% YoY during FY09. It paid a total dividend of Rs 15 per share for the year (dividend yield of 3.2%). With the penetration level of toothpaste being as low as 57% and the per capita level being 108 gm/year which is less than its Asian peers, there is huge scope for the company to grow. While the urban areas are expected to drive consumption, rural areas would drive penetration. FMCG stocks are trading firm.

Auto stocks have started the day’s proceedings on a firm note. As per a leading business daily, car major Maruti is expected to see an increase of 8% to 10% in the domestic car sales during the month of May backed by strong rural demand and buoyant exports. As per the company, exports have jumped more than 50% YoY during last month, driven by improved European demand. The rural market sales have increased to 9% of its total sales from about 3.5% earlier on account of concerted push in these regions by the company. This would be the fifth consecutive month when Maruti would clock over 70,000 units in sales. In April, its domestic sales grew 9% YoY and overall numbers (including exports) were up 15% YoY. Fiscal stimulus measures undertaken by the government as well as lowering of interest rates by some key banks has aided higher demand.

Brokerage Recommendations 28th May 2009

Brokerage Recommendations 28th May 2009

Exit McLeod Russel on any rally, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is at Rs 96.30, down 2.4% on the BSE.

Hold Eleconn Engineering with stop loss of Rs 75, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. The stock is at Rs 87.30, up 6.1% on the BSE.

Buy Bharti Airtel with target of Rs 860, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 760, he adds. The stock is at Rs 795.20, up 3.4% on the BSE.

Stay long in JP Associates with target of Rs 225, says Ashwani Gujral, technical analyst, on CNBC TV18, as market closing strategy. Keep stop loss of Rs 180, he adds. The stock is currently trading at Rs 192.35, up 1.2% on the BSE.

Buy Bharti Airtel with target of Rs 845, says Prakash Gaba, technical analyst, on CNBC Awaaz, as market closing strategy. Keep stop loss of Rs 785, he adds. The stock is currently trading at Rs 795.25, up 3.4% on the BSE.

Stay long in the Nifty with target of 4420 and stop loss of 4304, says Rajat Bose, technical analyst, on CNBC Awaaz, as market closing strategy.

Exit TVS Motors at Rs 50 and instead buy Tata Motors on dips, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 45.30, up 2.8% on the BSE.

Hold Kalpataru Power which is a good stock to be invested in, says a market expert of Karvy Broking on CNBC Awaaz. The stock is currently trading at Rs 701.60, up 0.6% on the BSE.

Hold BL Kashyap with stop loss of Rs 341, says Hormuz Maloo of Geojit BNP Paribas, on CNBC Awaaz. The stock is currently trading at Rs 398, up 5.2% on the BSE.

Buy Reliance Capital with a target of Rs 1040, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 910, he adds. The stock is currently trading at Rs 940, up 2.2% on the BSE.

Hold Purvankara Projects with stop loss of Rs 90, says Hormuz Maloo of Geojit BNP Paribas, on CNBC Awaaz. The stock is currently trading at Rs 102, up 4.96% on the BSE.

The market will see volatility and weakness towards late afternoon amid immense selling pressure because of F&O expiry, says Jagdish Thakkar of Fortune Fiscal on Zee Business.

Buy ETC Network with target of Rs 150, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 94, he adds. The stock is currently trading at Rs 108, up 0.6% on the BSE.

Quantitative easing by central banks across the world has fuelled this rally and further policy action would pump in a lot of money into the economy, says Manoj Pradhan of Morgan Stanley on CNBC TV18. Liquidity was at the crux of support for asset classes and India could be one of the beneficiaries in this supply of liquidity and increase in risk appetite, he added.

The market is trading choppy amid some selling pressure. Sensex is trading at 14340, up 230 points from its previous close, and Nifty is at 4341, up 65 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 0.8%. The market breadth is positive with advances at 767 against declines of 492 on the NSE.

Buy Suzlon Energy above Rs 95 with target of Rs 120, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 80, he adds. The stock is currently trading at Rs 91.85, up 2.3% on the BSE.

Hold RNRL with target of Rs 105, says Kiran Jadhav, technical analyst, on NDTV Profit. Keep trailing stop loss of Rs 70, he adds. It has good support at Rs 75, he says. The stock is currently trading at Rs 81.10, down 1% on the BSE.

Buy Cairn India, Tata Elexi, Kale Consultants and UTV Software for long-term gains, says Salil Sharma of Kapoor & Sharma Company on Zee Business.

HEM Securities maintains a buy call on Adlabs Films with target of Rs 362, reports CNBC Awaaz. Keep stop loss of Rs 315, it adds. The stock is currently trading at Rs 332, down 0.2% on the BSE.

Hold Essar Oil with target of Rs 200, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 177.50, down 0.5% on the BSE.

Book profits in cement stocks on every rally, says Hitesh Agarwal of Angel Broking on CNBC Awaaz.

Exit Parsvnath Developers and instead invest in telecom, engineering services and banking stocks, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 93.30, down 2.2% on the BSE.

Hold NIIT with target of Rs 80-85, says Kiran Jadhav, technical analyst, on NDTV Profit. Keep trailing stop loss of Rs 45, he adds. It has good support at Rs 75, he says. The stock is currently trading at Rs 50.10, down 1.3% on the BSE.

The market continues to trade firm amid volatility on settlement day. Earlier, the European markets opened weak and are now trading quiet. Sensex is trading at 14306, up 196 points from its previous close, and Nifty is at 4335, up 59 points. CNX Midcap index is up 0.6% and BSE Smallcap index is up 0.7%. The market breadth is positive with advances at 750 against declines of 500 on the NSE.

Hold Jindal Steel & Power with target of Rs 2250, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1950, he adds. The stock is currently trading at Rs 2099, up 0.9% on the BSE.

Hold Aurobindo Pharma with stop loss of Rs 325, says PK Agarwal of Bonanza Portfolio on Zee Business. Medium-to-long term target for this stock is Rs 500, he adds. The stock is currently trading at Rs 379, down 1.2% on the BSE.

Hold Reliance Communications with stop loss of Rs 290, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 310 crossing which it can go up to Rs 340, he adds. The stock is currently trading at Rs 309, up 1.6% on the BSE.

Hold Idea Cellular with target of Rs 85-88, says Hemant Thukral of Asian Market Securities on CNBC TV18. The stock is currently trading at Rs 77.65, down 1.5% on the BSE.

Hold Videocon with target of Rs 190-200, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 140, he adds. The stock is currently trading at Rs 165.05, down 2.4% on the BSE.

Hold Cairn India with medium-term target of Rs 240, says Rahul Mohinder, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 205, he adds. The stock is currently trading at Rs 219.65, up 0.1% on the BSE.

The market at noon appears to be coming off the day's low very marginally, ahead of the F&O settlement today. Sensex is trading at 14256, up 146 points from its previous close, and Nifty is at 4316, up 40 points. CNX Midcap index is up 0.1% and BSE Smallcap index is up 0.1%. The market breadth is positive with advances at 644 against declines of 582 on the NSE.

WPI for all commodities is up 0.1% at 232.2(WoW), reports NDTV Profit. Primary Articles Index is up marginally, Manufactured Products Index up 0.1% at 203.5(WoW) and Fuel Index is up 0.1%(WoW), it adds.

The inflation figure for the week ended May 16 has been announced at 0.61%, unchanged from last week, reports NDTV Profit.

Hold DLF with target of Rs 400-420, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 369, up 1% on the BSE.

Hold HDFC Bank with short-term target of Rs 1500, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 1315, he adds. The stock is currently trading at Rs 1401, down 0.5% on the BSE.

Both traders and investors can buy Idea Cellular on dips, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 77.40, down 1.8% on the BSE.



Hold Arvind with medium-term target of Rs 37-38, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 30.55, down 3.9% on the BSE.

Buy IVRCL at Rs 200-225, says Hitesh Agarwal of Angel Broking on CNBC Awaaz. The stock is currently trading at Rs 288, down 0.2% on the BSE.



Hold Reliance Power with stop loss of Rs 172, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 185 crossing which it can go up to Rs 235, he adds. The stock is currently trading at Rs 179.05, up 0.3% on the BSE.

Buy JP Associates with target of Rs 207-233, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 176, he adds. The stock is currently trading at Rs 190.50, up 0.1% on the BSE.

An hour into opening, the market is trading steady, ahead of the F&O settlement today. Sensex is trading at 14272, up 163 points from its previous close, and Nifty is at 4323, up 47 points. CNX Midcap index is up 0.6% and BSE Smallcap index is up 0.9%. The market breadth is positive with advances at 779 against declines of 413 on the NSE.

Buy Suzlon Energy with trailing stop loss of Rs 84, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 90-95 crossing which it can go up to Rs 107, he adds. The stock is currently trading at Rs 92.10, up 2.6% on the BSE.

Hold Tata Motors with short-term target of Rs 360, says Rahul Mohinder, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 327, he adds. The stock is currently trading at Rs 343.90, up 0.1% on the BSE.

Book profits in SAIL, says Hitesh Agarwal of Angel Broking on CNBC Awaaz. The stock is currently trading at Rs 154.60, up 0.3% on the BSE.

I expect the Nifty to expire at 4220-4330 with higher chances of an expiry at the lower end of this band as there may be lack of buying today, says Yogesh Radke of Edelweiss Securities on CNBC TV18. He adds that telecom stocks have seen strong rollovers, while banks have been weak. He sees support for the Nifty at 3800 and 4000 in June series and believes that IVs (implied volatility) are likely to remain low.

Buy TCS with target of Rs 690, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 625, he adds. The stock is currently trading at Rs 651.10, up 0.9% on the BSE.

Buy Alkali Metals with intra-day target of Rs 350, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 310, he adds. The stock is currently trading at Rs 330, up 3.1% on the BSE.

Buy GSPL at Rs 57 with target of Rs 62, says VK Sharma of Anagram Stock Broking on CNBC TV18. Keep stop loss of Rs 55.50, he adds. The stock is currently trading at Rs 60.05, up 3.8% on the BSE.

Buy Sintex Industries with intra-day target of Rs 235, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 222, he adds. The stock is currently trading at Rs 226, up 0.1% on the BSE.

Buy Idea Cellular with intra-day target of Rs 85, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 75, he adds. The stock is currently trading at Rs 77.20, down 2.1% on the BSE.

Buy Infosys at Rs 1588 with target of Rs 1610, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 1555, she adds. The stock is currently trading at Rs 1596.25, up 0.7% on the BSE.

The market opens on a flat note in the steps of mixed global cues. Today is the day of F&O expiry. Most Asian markets are closed today. Sensex is trading at 14115, up 5 points from its previous close, and Nifty is at 4274, down 2 points. CNX Midcap index is up 0.6% and BSE Smallcap index is up 1%. The market breadth is positive with advances at 562 against declines of 114 on the NSE.

Buy Escorts with intra-day target of Rs 66, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 61, he adds. The stock is at Rs 62.90, up 7.2% on the BSE.

Buy JP Associates at Rs 190 with target of Rs 195, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 183, she adds. The stock is at Rs 190.30, up 6.6% on the BSE.

BSE / NSE Shares Analysis for 28th May 2009

BSE / NSE Shares Analysis for 28th May 2009

Automobile stocks Tata Motors, Maruti Suzuki and Hero Honda can be bought at sharp declines.
These stocks may remain a bit slippery in the near term, but their long term prospects remain quite bright. One should be prepared to wait for 2 - 3 years for fairly strong gains on investments in these stocks.

Realty stocks may see some upside in the next 3 - 6 months. However, one has to remain quite selective with regard to fresh buying in this space. Shares of companies with a proven track record should be identified for modest exposure at current levels.

Praj Industries, Thermax, Areva and Punj Lloyd are stocks for long term. These stock can see some upside in the near run, but are likely to go through some weak spells as well. One holding these stocks with a long term plan can stay invested and look at buying more in small quantities at sharp dips. Last message received on 5/28 at 2:45 PM balakumar subramanian:

One looking at long term can buy Syndicate Bank (Rs 79.70) at 5 - 10% down from current levels. One holding the stock can stay invested with a stop loss around Rs 60 - 63 levels.
UCO Bank, Andhra Bank, Indian Bank, IOB and Union Bank of India can also be picked up at sharp falls.

JSW Steel has vaulted over 12% to Rs 580 today on reports the company is planning to raise around $ 100 billion to fund its expansion and reduce debt. In a communication to BSE, the company has stated that it plans to raise $1 billion (Rs 4,767 crore) to part finance the company's capex and for other general corporate purposes including reducing the leverage. They will raise the additional long term resources through issuance of qualified institutional placement, foreign currency convertible bonds, GDRs, ADRs, warrants or equity shares.

PSU steel maker SAIL has posted a net profit of Rs 14866.80 million for the quarter ended March 31, 2009 as compared to Rs 23767.60 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 138569.50 million for the quarter ended March 31, 2008 to Rs 125901.20 million for the quarter ended March 31, 2009. The stock, a Nifty component, is up nearly 7% at Rs 164.75 now. Last week, the stock had touched a 52-week high of Rs 181.80. It had plunged to Rs 55.25 in mid November 2008.

European market are trading weak and the U.S. index futures are also trending lower. Still, the Indian market remains positive with metal, capital goods, oil and PSU stocks trading firm with sharp gains. Bank stocks remain quite subdued today. FMCG, pharma and power sectors witness stock specific action.

Mahindra & Mahindra has posted a net profit of Rs 4180.70 million for the quarter ended March 31, 2009 as compared to Rs 2211.00 million for the quarter ended March 31, 2008. Total income has increased from Rs 31754.50 million for the quarter ended March 31, 2008 to Rs 37158.80 million for the quarter ended March 31, 2009. The stock, up by over 5% at Rs 657 now, is likely to face some resistance near Rs 685.

A decisive breakout there can take the stock to Rs 750 or even higher in the short run.

1:05 PM: Larsen & Toubro has posted a profit after tax of Rs 9985.20 million for the quarter ended March 31, 2009 as compared to Rs 9667.60 million for the quarter ended March 31, 2008. Total Income has increased from Rs 87372.10 million for the quarter ended March 31, 2008 to Rs 108357.90 million for the quarter ended March 31, 2009.

The stock is up 3.75% at Rs 1360 now.

The United Nations has forecast the world economy to shrink 2.6 per cent in 2009, downgrading the already-pessimistic estimate made five months ago. According to a report from the world body, the world economy is expected to shrink by 2.6 per cent in 2009, according to the pessimistic scenario of the forecast presented in January.. In January, the UN had forecast that the world economy would shrink 0.5 per cent this year.

Coromandel Fertilisers has signed a Joint Venture Agreement with M/s. Soquimich European Holdings BV, Netherlands, a subsidiary of SQM, Chile, for setting up of 15000 MT Water Soluble Fertilisers (NPK Grades) plant at Kakinada at a total investment of Rs 100 Million.

Infrastructure companies are likely to see some strong rallies in the near to medium term. The government's thrust on infrastructure development and the likelihood of market regulator SEBI relaxing certain fund raising norms for the sector are likely to aid the sentiment towards these stocks.

LIC Housing Finance hit a new high at Rs 500 today. The stock has some more steam left in it and one looking for some strong gains can try this stock even at current levels. Short term players can book profits at rallies and re-enter later at declines.

TCS (Rs 652) can move on to Rs 725 and a strong breakout there can lift the stock to Rs 800 or even higher. One holding the stock with a long term view can stay invested with a stop loss near Rs 550 for now.

Wockhardt is reported to be in advanced talks to sell its German business, Espharma GmbH, to another German player, Lindopharm GmbH. The stock, traded at Rs 125 at present, can move up a bit in the near run. One with a good appetite for risk can try this stock at current levels and have a stop loss in place near Rs 105.

TN Newsprint & Papers (cmp Rs 83.50) can be retained for long term. The stock may not give very high returns but the downside risk for it quite limited. One can expect the stock to rise by around 10 - 12% over the next couple of months.

The market opened on a cautious note this morning amid weak global cues. The Sensex rose to 11,476.71 but has slipped to 14,106.27 now, netting a loss of 3.37 points. The Nifty is down marginally at 4274.85 after moving on to a high of 4295.50 at the bell.

Reliance Infra, ONGC, Hindalco, HDFC Bank, BHEL and SBI have declined sharply. RIL, NTPC, ITC, DLF, ACC and M&M have posted notable gains.

The market is likely to remain cautious today. Though there will be a negative bias initially, some buying at lower levels later on in the session is not ruled out. A moderate to high degree of volatility is in the offing.

Realty and bank stocks may see some sell-off after recent strong gains. Metal and capital goods stocks are also likely to face some pressure. However, buying at lower levels is not ruled out. Information technology stocks are likely to remain subdued.

BHEL has posted a net profit of Rs 1,347.47 crore for the quarter ended March 31, 2009 as compared to Rs 1,110.87 crore it had recorded for the quarter ended March 31, 2008. Total income has increased from Rs 7,626.20 crore for the quarter ended March 31, 2008 to Rs 11,047.24 crore for the quarter ended March 31, 2009. The stock is likely to find fairly good support at lower levels.

Jindal Steel may see some buying thanks to a sharp jump in the company's net profit for the year ended March 31, 2009. The company has posted a net profit of Rs 1,536.48 crore for the year ended March 31, 2009 as compared to Rs 1,236.96 crore for the year ended March 31, 2008.

It will be a highly slippery ride for shares of Cairn India today following weak numbers posted by the company for the quarter ended 31 March 2009. The firm has posted a net loss of Rs 16.90 crore for the quarter ended March 31, 2009 as compared to a net loss of Rs 8.73 crore for the quarter ended March 31, 2008.

Reliance Industries has explored two more gas reserves which are close to D-6 in the Krishna-Godavari basin, with estimates putting the natural gas reserves at 20 trillion cubic feet.

Larsen & Toubro, SAIL, Mahindra & Mahindra, Tata Power, Chennai Petroleum Corporation, Dalmia Cement, Gokaldas Exports, GMDC, Ipca Labs, Karur Vysya Bank, Nagarjuna Construction, Swaraj Mazda and Tata Chemicals will be announcing their quarterly results today.

The market had rallied on strong global cues and on expectations the government would do all its best to boost the sagging economy through Union Budget that is to be presented early July.

But the sentiment is likely to turn weak this morning following a negative close on Wall Street and weakness in Asian markets with concerns over the pace of economic recovery returning to haunt investor sentiment. Rising treasury yields and none too encouraging home sales data triggered heavy selling on Wall Street yesterday and the imminent bankruptcy of auto major General Motors too weighed in.

Action in the F&O segment due to expiry of May series derivatives contracts will have an impact in the cash market.

Market Voices 26 May 2009

The global financial crisis is not yet over, says Finance Minister Pranab Mukherjee on CNBC TV18. The government's goal is to bring back the economy on growth path and budget will be presented in first week of July, he feels. We hope to pass the budget by July end, he says. Massive investment in infrastructure is needed to spur growth, he says. We need a faster pace of investment in infrastructure, he adds. We hope to see more participation from FIIs, he says. I welcome the Bharti-MTN deal, he adds. We see global growth picking up from October, he says.

Buy Ranbaxy with a target of Rs 300 plus and keep a stop loss of Rs 205, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 244, down 8.3% on the BSE.

In a correction, Sensex could see 10000-12000 levels, says Marc Faber, investment guru, on CNBC TV18. Dollar may be oversold and could weaken further, he feels. Global commodity prices to rise if economies improve, he says.

Power and infrastructure space could give phenomenal returns going forward, says Sanjeev Motha of East India Securities, on NDTV Profit. Buy Tata Power and Reliance Power, IVRCL Infra and GMR Infra and ABB and Siemens in any correction and keep in the portfolio for long-term gains, he adds. In the midcaps and smallcaps space, buy Jyoti Structures, KEC Intermational, Apar Industries and WS Industries, he says.

Post the election results there is a renewed interest in long-term buying and today's correction will be welcome for those who missed the rally, says Rajesh Jain of Pranav Securities, on CNBC TV18. A lot of buying is happening and will happen now as there is clarity on the government front, he says. Ahead of the budget, if the market senses something positive on the policy front, Nifty could run up to 5500, he adds.

This is now a buy on dips market, says Nishit Shah of IDFC on CNBC TV18. There are a lot of buying opportunities still in the midcap space, he adds. There is a lot of money waiting on the sidelines and the market may surprise on the upside ahead of the budget, he feels.


Buy HUL with a target of Rs 260 plus and keep a stop loss of Rs 225, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 230, down 0.75% on the BSE.

The midcaps had run-up and now profit booking is setting in, says Deven Choksey of KR Choksey, on Zee Business. Nifty is likely to be in a range for the next few weeks, he adds.

Citi maintains buy on Bharti Airtel with a target of Rs 840 and Macquaire has a target of Rs 975 on the stock, reports NDTV Profit. The stock is currently trading at Rs 770, down 5.1% on the BSE.

Buy Bharti Airtel with a target of Rs 900-1000 (it has been an underperformer), says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 770, down 5.1% on the BSE.

Buy Moser Baer, Kale Consultants, Balrampur Chini, UTV Software, PVR and Prime Focus in any correction and keep in the portfolio for long-term gains, says Salil Sharma of Kapoor & Sharma Company, on CNBC TV18.

Hold Dish TV with a target of Rs 60-62, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 45, down 2.8% on the BSE.

Buy Tata Tea with a target of Rs 725 and keep a stop loss of Rs 630, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 695, down 0.2% on the BSE.

Buy PTC with a target of Rs 90 and keep a stop loss of Rs 80 for long-term investment keep a stop loss of Rs 65, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 86, down 3.6% on the BSE.

The market is looking bad, trading weak as pressure from global markets continue. Sensex is trading at 13659, down 253 points and Nifty is at 4146, down 91 points from the previous close. CNX Midcap index is down 2.42% and BSE Smallcap index is down 1.84%. The market breadth is negative with advances at 416 against declines of 841 on the NSE.

Buy Great Eastern Shipping with a target of Rs 290 and keep a stop loss of Rs 230, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 254, down 2.5% on the BSE.

Buy Tata Steel around Rs 250-300 for the long term in any correction with a target of Rs 472 till June 10, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 360, down 2% on the BSE.

Buy Hero Honda with a target of Rs 1450 and keep a stop loss of Rs 1150, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 1335, up 1.1% on the BSE.

Buy DCB at current levels with a target of Rs 50-55 in a month and Rs 100 in the long term, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 38, down 5.6% on the BSE.

Buy ICICI Bank with a target of Rs 800 and keep a stop loss of Rs 550, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 666, down 5% on the BSE.

Buy Bajaj Hindustan with a target of Rs 170 and keep a stop loss of Rs 130, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 139, down 3.5% on the BSE.

The Asian markets wrapped up a poor session while European markets have opened weak. Poor global cues are putting pressure on our market that is trading weak. Sensex is trading at 13721, down 191 points and Nifty is at 4159, down 77 points from the previous close. CNX Midcap index is down 2.25% and BSE Smallcap index is down 2%. The market breadth is negative with advances at 599 against declines of 656 on the NSE.

Buy DLF at Rs 310 with target of Rs 400, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss closing below Rs 300, she adds. The stock is currently trading at Rs 342.60, down 2.7% on the BSE.

Buy GHCL at Rs 44 with short-term target of Rs 55 and long-term target of Rs 75, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 37, he adds. The stock is currently trading at Rs 42.95, down 1.9% on the BSE.

Hold Indiabulls Financial Services with short-term target of Rs 235, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 204.95, up 5% on the BSE.

While the FIIs have sold Nifty Futures worth Rs 1000 crore over last two days, I expect markets to consolidate at these levels with some profit booking, says Karun Mutha of Investsmart on CNBC TV18. The Nifty should close around 4200 on expiry and the midcap outperformance may continue, he adds.

Hold Bharti Airtel for returns of 16-18% in the long term, says P Phani Sekhar of Angel Broking on NDTV Profit. The stock is currently trading at Rs 776, down 4.4% on the BSE.

Buy Patni Computers only if it comes down to Rs 180-200, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss closing below Rs 170, she adds. The stock is currently trading at Rs 217, up 0.4% on the BSE.

Buy Indowind Energy at Rs 33 with short-term target of Rs 45 and longer-term target of Rs 60, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 25, he adds. The stock is currently trading at Rs 34.70, up 5.2% on the BSE.

Hold JP Associates with target of Rs 200, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss of Rs 160-165, she adds. The stock is currently trading at Rs 184.25, down 0.7% on the BSE.

Buy Jaiprakash Hydro-Power with target of Rs 70-75 in one or two weeks, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 66.20, up 2.9% on the BSE.

The market at noon appears to be making marginal recovery. Sensex is trading at 13939, up 26 points from its previous close, and Nifty is at 4229, down 8 points. CNX Midcap index is up 0.2% and BSE Smallcap index is up 1.8%. The market breadth is positive with advances at 894 against declines of 349 on the NSE.

Buy Berger Paints at Rs 44 with short-term target of Rs 52 and longer-term target of of Rs 60, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 38, he adds. The stock is currently trading at Rs 44, up 0.6% on the BSE.

Buy NTPC at current levels with short-term target of Rs 230, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep long-term target of Rs 275 in 12-15 months, he adds. The stock is currently trading at Rs 208, down 2.2% on the BSE.

Buy Macmillan India at Rs 76 with short-term target of Rs 100 and longer-term target of Rs 120, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 65, he adds. The stock is currently trading at Rs 82.50, up 5.6% on the BSE.
Buy Chambal Fertilisers with targets of Rs 75 and then 80 in the short term, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 63.90, down 0.9% on the BSE.

Hold DS Kulkarni with target of Rs 75-77, says Pradeep Surekha, technical analyst, on Zee Business. Keep stop loss below Rs 50, he adds. The stock is currently trading at Rs 61.35, up 6.4% on the BSE.

Buy Era Infra with short-term target of Rs 140-145 and six-months' target of Rs 170, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 85, he adds. The stock is currently trading at Rs 118, up 13.4% on the BSE.

We expect the positive momentum to continue till expiry, says Ambareesh Baliga of Karvy Stock Broking on CNBC TV18. However, he believes that the rally seems overdone and that we could see a correction after that. His advice is to book profits at higher levels.

Buy Bajaj Hindustan with target of Rs 160, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 133, he adds. The stock is currently trading at Rs 141.35, down 2.2% on the BSE.

Buy Great Offshore with stop loss of Rs 310, says Pradeep Surekha, technical analyst, on Zee Business. If it crosses Rs 344 it can go up to Rs 370, he adds. The stock is currently trading at Rs 355.60, up 7.6% on the BSE.

An hour into opening, the market is trading choppy. Frontline stocks are seeing some selling pressure while midcap and smallcap stocks continue to make gains. The Asian markets are trading weak. Sensex is trading at 13915, up 2 points from its previous close, and Nifty is at 4224, down 14 points. CNX Midcap index is up 0.7% and BSE Smallcap index is up 2.3%. The market breadth is positive with advances at 976 against declines of 250 on the NSE.

Book profits in NIIT, says Siddharth Bhamre of Angel Broking on CNBC TV18. He advises staying away from IT stocks for the moment. The stock is currently trading at Rs 51.35, down 3.4% on the BSE.

Buy Educomp Solutions with target of Rs 3000-3050, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2885.45, up 0.1% on the BSE.

Buy DLF with target of Rs 400, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 315-320, he adds. The stock is currently trading at Rs 355.25, up 0.9% on the BSE.

Buy Ranbaxy only if it closes above Rs 270, says Hardik Jain, technical analyst, on CNBC Awaaz. Keep target of Rs 350, he adds. The stock is currently trading at Rs 259, down 2.9% on the BSE.

Buy Cairn India when it comes down to Rs 180, says Siddharth Bhamre of Angel Broking on CNBC TV18. The stock is currently trading at Rs 217, up 1.4% on the BSE.

Hold Idea Cellular with target of Rs 95, says Pradeep Surekha, technical analyst, on Zee Business. Keep stop loss below Rs 65, he adds. The stock is currently trading at Rs 74.75, up 2.5% on the BSE.

Intra-day traders can sell BEML, says Hemen Kapadia, technical analyst, on CNBC TV18. The stock is currently trading at Rs 761, up 1% on the BSE.

Buy Videocon with intra-day target of Rs 175, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 155, he adds. The stock is currently trading at Rs 171.10, up 6.1% on the BSE.

Buy Aban Offshore at current levels with target of Rs 1060, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 917, up 1.7% on the BSE.

Buy Tata Power on dips at Rs 960-970, says Hardik Jain, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1070.10, down 0.6% on the BSE.

Buy Satyam with intra-day target of Rs 60, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 53, he adds. The stock is currently trading at Rs 56.50, up 3.8% on the BSE.

The market opens on a flat and quiet note. The Asian markets are trading mixed. Sensex is trading at 13958, up 45 points from its previous close, and Nifty is at 4240, up 2 points. CNX Midcap index is up 1.4% and BSE Smallcap index is up 1.8%. The market breadth is positive with advances at 666 against declines of 61 on the NSE.

Buy GMR Infra with intra-day target of Rs 175, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 162, he adds. The stock is at Rs 164.70, down 2.6% on the BSE.

Buy Gitanjali Gems at Rs 117 with target of Rs 133, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 110, she adds. The stock is at Rs 116.30, up 17.8% on the BSE.

Buy JP Associates at Rs 185 with target of Rs 192, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 180, she adds. The stock is at Rs 186.10, up 7.5% on the BSE.


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BSE / NSE Shares analysis for 26 May 2009

The market opened on a cautious but firm note this morning but spent not more than a an hour in the positive territory today. Though Asian stocks were a bit mixed when trade commenced this morning, they declined sharply and settled lower. European markets opened weak and that proved a strong enough trigger for the bears to go on a rampage this afternoon.

The Sensex ended provisionally at 13,589.37, around 71 points off the day's low, recording a loss of nearly 325 points or 2.23%. The Nifty closed at 4107.70, down 129.85 points or 3.06%.

Barring BSE IT, which ended with a modest gain, the other sectoral indices closed sharply lower today. Realty, capital goods, power, consumer durables, telecom and bank stocks were among the prominent losers.

Infosys Technologies, Hindalco and Wipro ended on a firm note. RComm, Ranbaxy, Tata Motors, NTPC, ICICI Bank, Bharti Airtel and DLF ended lower by 4% - 10%. JP Associates, M&M, ITC, ONGC, RIL, Tata Steel, SBI, Maruti Suzuki, ACC and HDFC Bank also closed with notable losses.

Power Grid, ABB, Reliance Capital, Tata Comm, RPower, Unitech, SAIL, Axis Bank, Idea Cellular, BPCL, Siemens, Cipla, Suzlon Energy and Nalco declined sharply. Hero Honda ended with a sharp gain.

The Karnataka Bank stock opened o na firm note this morning on fairly good quarterly results.
The buoyancy at the counter was due to a sharp rise in the bank's net profit for the quarter ended 31 March 2009. The bank had reported a 3% rise in net profit to Rs 83.14 crore in the said quarter from a net profit of Rs 80.78 crore in the corresponding quarter a year ago. The bank had also announced that it will seek shareholders' approval to raise Rs 500 crore through qualified institutional placement (QIP). However, after trading in the positive zone till around mid afternoon, the stock has tumbled into the red. At Rs 133, it is down by as much as 7.3% now.
One holding the stock for long term can stay invested and look at buying more at Rs 110 - 115 levels

LIC Housing Finance Ltd has informed that the Board of Directors at the Board Meeting to be held on June 01, 2009, may also consider further issue of equity shares on preferential basis and/or Qualified Institutional Placements basis. The stock, traded at Rs 429 now, may see some resistance at Rs 450 - 460 levels. One looking at long term can go in for the stock at Rs 360 - 370 levels.

Sugar stocks Bannari Amman, Bajaj Hindustran, Rajshree Sugars, Renuka Sugars, Triveni Engineering and EID Parry are likely to drift lower in the very short run. One holding the stocks with a long term view can stay invested. Others can sell these stocks at sharp rallies and get back into the counter at lower levels.

Automobile stocks are likely to have a slippery ride on fears of a possible hike in fuel prices.
There is a likelihood of the government decontrolling oil prices and if that happens, fuel prices will see a fairly sharp rise. Vehicles sales have also not picked up any significantly. So, automobile stocks are likely to drift down a bit. One with a long term view can buy these stocks at sharp dips.

PSU stocks are likely to be in focus as the government is likely to resurrect the ministry of disinvestments in a bid to raise funds by selling a part of its stake in public sector companies.
NMDC, MMTC, RCF, NLC and STC are likely to see some good upside over a medium term.

IVRCL Infrastructure and GMR Infra can be bought at declines. Though the two stocks are likely to see some weakness in the near term, one holding them can stay invested and buy more in small quantities at dips.

Tata Chemicals (Rs 225) has support at Rs 170 - 180 levels. One holding the stock can stay invested with a stop loss near those levels. The stock can move on to Rs 285 and a strong breakout there can lift it to Rs 330 - 345.

Most of the Asian markets are down in the red today. Korea has suffered the most with its KOSPI going down by over 2%. Shanghai, Hong Kong, Taiwan, Singapore and Japanese indices are down by 0.3% - 1%. The Australian markets bounced back after early weakness and ended on a firm note today.

Power Grid, Areva, NTPC and Power Finance Corporation can be picked up at declines in a staggered way. These are stocks for long term and hence one need not worry about any significant drop in their values in the near term. Sharp dips can be used to increase exposure.

NTPC can be retained for good gains over a medium term. The stock, currently traded at Rs 208, can move on to Rs 225 - 230 where it is likely to find some resistance. Over a long run one can see the stock moving past Rs 300.

The market is likely to find some good support at lower levels till expiry of May series derivatives contracts. There will be a decent rally ahead of the Budget but one has got to be extremely selective with regard to fresh exposure. Global economy is showing signs of a recovery but momentum will take a fairly long time to come.

Bank of Baroda has posted a net profit after minority interest, share of earnings in Associates of Rs 23840.80 million for the year ended March 31, 2009 as compared to Rs 15483.80 million for the year ended March 31, 2008. The group's total income has increased from Rs 143066.70 million for the year ended March 31, 2008 to Rs 182979.10 million for the year ended March 31, 2009.
The PSU bank stock is trading marginally higher at Rs 441.50 now. One holding the stock with a long term plan can stay invested. Fresh buying can be considered at sharp falls.

Bharti Airtel is facing pressure for the second successive session on dilution worries. The stock, which had ended with a sharp loss yesterday, is down by around 4.4% at Rs 774 now on selling pressure.

The initial reaction to the Bharti - MTN deal structure is that Bharti's estimated earnings per share (EPS) for the current financial year and the next could be diluted by up to 10%.

Investors looking for some good returns over a 2 -3 year period can go in for ACC, Ambuja Cements, Ultratech and Dalmia Cement at dips. Though a fairly good upmove is possible even over a near run, these stocks are likely to remain a bit slippery. Once the budget is presented and the government spells out its priorities for infrastructure, these stocks are likely to find favour once again.

Metal stocks Hindalco, SAIL, Tata Steel and Sterlite Industries can give good returns over a medium term. Tne can accumulate these stocks in small quantities at declines. Hindustan Zinc, JSW Steel and Ispat Industries can also give fairly solid returns over a medium run.

Market Outlook

The market is likely to remain sideways for a better part of the session. Some volatility is not ruled out as May series derivatives contracts expire this Thursday. The downside is not likely to be much as institutional investors are expected to step in at lower levels.

Sector Watch

Realty, auto and metal stocks are likely to be in focus. Buying is expected to be stock specific in information technology and capital goods sectors. Oil stocks may remain sluggish.

Scrip Watch

ONGC may experience a sluggish outing today on reports that the company stands to lose about Rs 140 billion if it was forced to continue in Cairn India's prolific Rajasthan oilfields as it would have to pay all government levies.

Tata Motors may edge higher as the company is likely to roll over close to $ 1.05 billion of debt remaining out of the $ 3-billion bridge loan it had taken in 2008 to fund the acquisition of British automobile company Jaguar and Land Rover.

Ranbaxy Laboratories may see some sell-off due to profit taking today. Reports that the company has missed the deadline of May 2009 to start supplying raw materials to British drugmaker Astrazeneca may also weigh in to an extent.

RECL may move up on strong quarterly results. The company has posted a net profit of Rs 3,880.40 million for the quarter ended 31 March 2009, a rise of around 65% over a net profit of Rs 2,351 million it had recorded in the corresponding quarter last year.

Macro and Market Factors

Global cues are mixed this morning. Wall Street and the London stock market were closed yesterday on national holidays. The mood on the Asian bourses is somewhat cautious due to lack of triggers.

Back home, action in the derivatives segment ahead of May series expiry is likely to have an impact in the cash market

Closing Bell 26th May 2009

Closing Bell 26th May 2009


Persistent selling activity led the markets to lose further ground during the final hour of trade. However, the indices did stage a minor comeback during the fag end. The BSE-Sensex ended the day on a weak note, down by around 320 points, while the NSE-Nifty closed lower by about 130 points. Stocks from the mid-cap and small-cap space ended the day on a lower note as well, recording losses of 3.2% and 2.8% respectively. Stocks from the realty, capital goods and power sectors led the pack of losers today, while the IT space managed to garner the investors’ interests.

Other Asian markets ended the day on a weak note. The European indices are currently trading lower as well. Rupee was trading at 47.82 against the US dollar at the time of writing.

Pharma stocks ended the day on a weak note led by Ranbaxy, Biocon and Wockhardt. Dishman Pharma announced its results yesterday. The company’s revenues grew by 33% YoY during the year. This growth was led by both its business segments - CRAMS and Marketable molecules (MM). Further, its operating margins expanded by 5.7% on account of lower raw material prices (as percentage of sales). During FY09, the company’s EBIDTA margin stood at 24.9%. Profitability wise, Dishman recorded a 21% YoY growth during the year. It may be noted that during FY08, the company had an extraordinary income gain of Rs 379 m. On excluding the same, growth in net profits stood at a strong 75% YoY during FY09.

Two-wheeler stocks ended the day on a mixed note led by Bajaj Auto and TVS Motors. However, Hero Honda did manage to close on a firm note. As per a leading business daily, Bajaj Auto has planned to take full benefit of its alliance with Austrian power bike maker, KTM Power Sports, which it had acquired about two and half years back. The company plans to jointly manufacture complex and power engine bikes. In addition, both the companies will utilise their distribution network to market the bikes in India as well as abroad. It may be noted that Bajaj Auto is aiming to become the leader in the premium bike segment in India. It currently has only one model in the 200 cc plus segment while KTM has several offerings in the premium end bike segment.

Virgin Atlantic, a 51:49 partnership between Richard Branson and Singapore Airlines posted its results recently. The company’s profits for the year almost doubled as compared to the previous year. The management attributed rising demand for premium travel to be the reason for this strong performance. As per the company, pre-tax profits were higher by 97% YoY to 68 m pounds for the year ending February as against 35 m pounds in the previous year. It is an outstanding performance considering companies such as British Airways have recorded huge annual losses.

The Indian markets continued with their southward journey on account of sustained selling activity witnessed during the previous two hours of trade. Stocks from the pharma, power and telecom sectors are currently leading the pack of losers, while select stocks from the software, metal and auto sectors are trading firm. The overall advance to decline ratio is poised at 1.2 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading lower, down by around 225 points and 100 points respectively. The BSE-Midcap and BSE-Smallcap indices are trading weak, down by around 2.2% and 1.8% respectively. The rupee is trading at 47.73 to the dollar.

Power stocks are trading mixed. While GVK Power and Torrent Power are trading higher, NTPC and Tata Power are trading lower. As per a leading business daily, India's largest power company NTPC has planned to spend 245 bn as capital expenditure during the current fiscal (FY10) as against Rs 151 bn spent in FY09. The company will invest around Rs 177 bn on a standalone basis, while Rs 68 bn will be invested through joint ventures and subsidiaries. It may be noted that NTPC plans to add around 3,300 MW of new generation capacity during this fiscal. It also plans to develop its captive coal mine in Jharkhand. The company is also trying to take up the renovation and maintenance of a power plant in Kazakhstan and is keen to operate 4,000 MW plant in the same region.

Banking stocks are trading mixed. While PNB and Bank of India are trading higher, SBI and IDBI Bank are trading lower. As per a leading business daily, PNB is mulling over acquiring a bank in Africa of a size of up to US$ 30 m. It may be noted that PNB does not have a significance presence in the overseas markets as compared to its peers. It currently has offices in 8 countries and has received approval from RBI to set up subsidiary in Canada, an offshore banking unit in Singapore and a branch in Dubai. The management plans to expand its presence in the overseas through acquisitions rather than setting up branches as the entry cost is high and the entire process is time consuming.

The Indian markets continued to trade in the negative territory during the previous two hours of trade as selling pressure sustained among the index heavyweights. Currently, stocks from the software and engineering sectors are trading firm, while select stocks from the telecom and power sectors are at the receiving end. The overall advance to decline ratio is poised at 2.8 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading lower, down by around 30 points and 25 points respectively. However, the BSE-Midcap is trading flat and the BSE-Smallcap is trading higher by around 1.3%. The rupee is trading at 47.62 to the dollar.

As per a leading business daily, Ranbaxy may face a potential revenue loss of US$ 40 m to US$ 50 m on account of delay in supplying a key ingredient to UK based AstraZeneca for the manufacture of the latter’s anti-ulcer drug, ‘Nexium’. The delay in supply was on account of the ban imposed by US FDA on two of Ranbaxy’s plants, which prompted AstraZeneca to inspect the company’s plant at Punjab where the API for ‘Nexium’ is made. The company is also scheduled to start formulating a significant portion of ‘Nexium’ from May 2010. It must be noted that ‘Nexium’ is the world’s second largest selling drug with annual sales of US$ 5.5 bn. The stock of Ranbaxy is currently trading weak on the bourses.

Software stocks are trading firm led by Infosys, Wipro and TCS. As per a leading business daily, IT companies would gain from the outsourcing contracts expected from CitiGroup, which is believed to undergo a major cost control IT exercise to integrate its system. This initiative will bring new business contracts for the Indian IT vendors. TCS had earlier acquired CitiGroup’s back-office business and the latter is among the top clients of the company along with Wipro.


While the Indian markets began the day’s proceedings on a positive note, a shaky start subsequently led the indices to move towards the dotted line. While consumer durables and metal stocks are trading higher, auto and energy stocks are among the losers. The overall advance to decline ratio is poised at 6.3 to 1 on the BSE. As regards global markets, while US markets remained closed yesterday, the European markets ended the day on a mixed note. The Asian indices are currently trading mixed.

As per a leading business daily, Tata Motors is expected to roll over (sign new contracts with lenders) close to about US$ 1 bn of debt that is remaining out of the US$ 3 bn bridge loan it had taken in 2008 to fund the acquisition of Jaguar and Land Rover. The new contracts formed with the banks are likely to specify that Tata Motors repay the debt in four installments over an 18 month period at an interest of around 5% over the LIBOR (London interbank offered rate) which is currently 1.2%. This will provide the company headroom for paying back the loan by internal cash generation over the span of the above mentioned timeframe.

As per a leading business daily, HCL Infosystems has bagged an order worth Rs 2.4 bn from state-run telecom major Bharat Sanchar Nigam Ltd (BSNL) to implement a system integration project. The project will comprise over 60,000 enterprise resource planning (ERP) licences and will attempt to help BSNL improve its information flow, cycle time, financial performance and information transparency and thus to manage and coordinate all its resources, information, and functions of its business from shared data stores. The stock of HCL Infosystems is currently trading higher.