Brokerage Recommendations 11th June 2009

Buy Tulip Telecom on dips, says Harit Shah of Angel Broking on CNBC TV18. The company will grow at robust pace giving good returns, he adds. The stock is at Rs 774.60, up 11.7% on the BSE.

Buy auto sector stocks but on dips, says DD Sharma of Anand Rathi Securities on Zee Business. Long-term outlook on these stocks is good, he adds.

Buy Voltas at Rs 100-120, says Sandeep Jain of Tradeswift on CNBC Awaaz. Keep target of Rs 185-200 in two years, he adds. The stock is at Rs 139.30, down 0.1% on the BSE.

Hold Aurobindo Pharma with target of Rs 550, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. Keep stop loss of Rs 450, he adds. The stock is at Rs 480.55, up 4.8% on the BSE.

Buy SBI at Rs 1600-1620, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is at Rs 1691, down 3.7% on the BSE.

Buy Sterlite Industries with target of Rs 750, says Ashwani Gujral, technical analyst, on CNBC TV18, as market closing strategy. Keep stop loss of Rs 675, he adds. The stock is currently trading at Rs 704, up 6.1% on the BSE.

Buy Ambuja Cements at Rs 88-90, says Ambareesh Baliga of Karvy Stock Broking on CNBC TV18. Traders can look for returns of Rs 6-8, he adds. The stock is currently trading at Rs 99.10, down 4.4% on the BSE.

Buy IDFC with targets of Rs 148 and 158, says Sanjeev Agarwal of Dynamic Research on CNBC Awaaz. Keep stop loss of Rs 138, he adds. The stock is currently trading at Rs 144.70, up 5% on the BSE.

Hold Mercator Lines with targets of Rs 80 and then 100, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. Keep stop loss of Rs 60, he adds. The stock is currently trading at Rs 68.25, up 2.6% on the BSE.

Few minutes before close, the market is showing volatility and trading flat. Europe which opened weak is now showing strength. Sensex is trading at 15414, down 52 points from its previous close, and Nifty is at 4643, down 11 points. CNX Midcap index is down 0.4% and BSE Smallcap index is down 0.8%. The market breadth is negative with advances at 436 against declines of 822 on the NSE.

Buy L&T on dips, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1632, up 0.1% on the BSE.

Hold Gateway Distriparks with target of Rs 110 and above, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. Keep stop loss of Rs 80, he adds. The stock is currently trading at Rs 101.20, up 10.4% on the BSE.

Buy Bartronics India with target of Rs 235, says Harit Shah of Angel Broking on CNBC TV18. It has good future and will give an upside of 45% from current levels, he adds. The stock is currently trading at Rs 164.60, up 2.5% on the BSE.

Buy Everonn Systems on dips but for long term, says Gaurang Shah of Geojit BNP Paribas on Zee Business. The stock is currently trading at Rs 431, down 3.7% on the BSE.

Buy HDFC Bank for 20-30% returns in the coming months, says Vijay Kumar of Unicon Financials on NDTV Profit. The stock is currently trading at Rs 1554, up 4% on the BSE.

Buy Unitech with targets of Rs 93 and then 100, says Sanjeev Agarwal of Dynamic Research on CNBC Awaaz. Keep stop loss of Rs 85, he adds. The stock is currently trading at Rs 87.45, down 1.6% on the BSE.

Book profits in Tata Power at its resistance level of Rs 1350, says Ashu Kakkar, technical analyst, on NDTV Profit. Buy again at Rs 800-900, he adds. The stock is currently trading at Rs 1196.90, down 1.4% on the BSE.

Avoid investment in Britannia Industries because it is a highly-priced stock, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 1600, down 0.2% on the BSE.

Hold Cairn India with target of Rs 285-300, says PK Agarwal of Purpleline Investment on Zee Business. Keep stop loss of Rs 220, he adds. The stock is currently trading at Rs 258, down 0.3% on the BSE.

Hold ACC with target of Rs 1050, says Ashu Kakkar, technical analyst, on NDTV Profit. Keep stop loss of Rs 850, he adds. The stock is currently trading at Rs 864, down 3.7% on the BSE.

Hold IndusInd Bank with targets of Rs 79 and then 95, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 76.45, down 0.9% on the BSE.

Book profits in Central Bank of India, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 78, down 0.8% on the BSE.

Hold Indiabulls Financial with target of Rs 320, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 183.90, up 1.9% on the BSE.

Hold Lanco Infratech with target of Rs 525, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 422.40, down 4.8% on the BSE.

Hold Neyveli Lignite with target of Rs 150, says PK Agarwal of Purpleline Investment on Zee Business. It has support at Rs 120, he adds. The stock is currently trading at Rs 131.75, down 2.4% on the BSE.

Exit Tata Power and instead invest in BHEL, Siemens, says Vijay Kumar of Unicon Financials on NDTV Profit. The stock is currently trading at Rs 1197.50, down 1.3% on the BSE.

Short Reliance Capital with target of Rs 965, says Ashu Kakkar, technical analyst, on NDTV Profit. Keep stop loss of Rs 995, he adds. The stock is currently trading at Rs 983, down 2% on the BSE.

Buy Aban Offshore only on deep correction in the market, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1013.05, down 6.7% on the BSE.

Hold TV18 and book profits on rally at Rs 186, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 129, he adds. The stock is currently trading at Rs 146.80, down 0.5% on the BSE.

Buy Emco with targets of Rs 110 and then 132, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 70, he adds. The stock is currently trading at Rs 84, down 1.2% on the BSE.

Hold Satyam with target of Rs 115, says PK Agarwal of Purpleline Investment on Zee Business. Keep trailing stop loss of Rs 75, he adds. The stock is currently trading at Rs 80.85, up 10% on the BSE.

Hold Gail with medium-term target of Rs 350, says Ashu Kakkar, technical analyst, on NDTV Profit. It has support at Rs 250, he adds. The stock is currently trading at Rs 290, down 1.3% on the BSE.

Stay away from the metal sector, says VK Sharma of Anagram Stock Broking on CNBC Awaaz. One can, however, invest in zinc stocks, especially Hindustan Zinc, he adds. The stock is currently trading at Rs 617.95, down 0.9% on the BSE.

Hold Prithvi Info with target of Rs 100, says MB Singh, technical analyst, on Zee Business. Buy more when it comes to Rs 60, he adds. The stock is currently trading at Rs 75, up 2.8% on the BSE.

Hold ONGC with target of Rs 1260-1270, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1050, he adds. The stock is currently trading at Rs 1135, down 2.5% on the BSE.

Hold HDFC Bank with target of Rs 1555, says Salil Sharma of Kapoor & Sharma Company, on CNBC Awaaz. The stock is currently trading at Rs 1547, up 3.5% on the BSE.

Sell Aban Offshore with intra-day target of Rs 1000, says Anil Singhvi, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1100, he adds. The stock is currently trading at Rs 1038.80, down 4.3% on the BSE.

Stay in the market with a trailing stop loss and take out profits in any momentum, says Daljeet Kohli of Emkay Shares and Stock Brokers on CNBC Awaaz. This strategy will help minimise losses, he adds.

Hold Kotak Mahindra with target of Rs 800, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 711.60, down 1.5% on the BSE.

Buy Bata India with intra-day target of Rs 189, says Anil Singhvi, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 159, he adds. The stock is currently trading at Rs 176.60, up 8.3% on the BSE.

Hold Satyam with target of Rs 85, says Rahul Mohinder, technical analyst, on CNBC Awaaz. But do not make fresh entry at the moment, he advises. The stock is currently trading at Rs 80.85, up 10% on the BSE.

Hold IVRCL Infra with target of Rs 425 and it has support at Rs 335, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 368, down 3.6% on the BSE.

Buy Adlabs Films on dips only for long term, says MB Singh, technical analyst, on Zee Business. Keep target of Rs 550, he adds. The stock is currently trading at Rs 409, down 1.5% on the BSE.

Hold Reliance Infrastructure with target of Rs 1400 in 3-4 weeks, says Rahul Mohinder, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1205, down 1.08% on the BSE.

Buy Ranbaxy at Rs 295 with target of Rs 306, says VK Sharma of Anagram Stock Broking on NDTV Profit. Keep stop loss of Rs 285, he adds. The stock is currently trading at Rs 300, up 0.6% on the BSE.

Buy HCL Technologies with target of Rs 240, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 197, down 3.6% on the BSE.

The market could rally till budget as fund flows are keeping the market higher, says TS Harihar of ICICI Securities, on NDTV Profit. Valuations are being overlooked and flow of liquidity determining the rally, he says. He is bullish on Cairn India and GAIL.

Buy Reliance Communications at Rs 350 with target of Rs 365, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 343, she adds.

Buy Essar Oil with intra-day target of Rs 185, says Anil Singhvi, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 173.50, he adds.

Buy Kotak Mahindra Bank at Rs 723 with target of Rs 737, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 715, she adds.

Brokerage recommendations 10th June 2009

Buy Firstsource with target of Rs 44-46 in six months, says SP Tulsian, investment advisor, on CNBC TV18. The stock is at Rs 29.80, up 11.6% on the BSE.

Buy Biocon with near-term target of Rs 325, says Akshita Deshmukh, technical analyst, on CNBC TV18. The stock is at Rs 213.95, down 1.2% on the BSE.

Hold BHEL for long term for gains of 20-25%, says Gaurang Shah of Geojit BNP Paribas on Zee Business. The stock is at Rs 2352.80, up 4.6% on the BSE.

The market closed on a happy note today, with the Nifty closing more than 100 points above its previous close for the second day in the running. Sensex shut shop at 15469, up 342 points (provisional) and Nifty at 4656, up 105 points (provisional) from the previous close. CNX Midcap index was up 2% and BSE Smallcap index was up 0.5%. The market breadth was negative with advances at 587 against declines of 681 on the NSE.

Buy Yes Bank with near-term target of Rs 150-155, says Akshita Deshmukh, technical analyst, on CNBC TV18. The stock is currently trading at Rs 133.25, up 2.6% on the BSE.

Buy Tata Motors with target of Rs 400-430, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 340, she adds. The stock is currently trading at Rs 362.90, down 1.5% on the BSE.

Hold IFCI with target of Rs 65, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss below Rs 50, she adds. The stock is currently trading at Rs 51.90, down 2.6% on the BSE.

Buy Prism Cement on dips at Rs 39-43 with target of Rs 53-58, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 44.35, up 12.6% on the BSE.

The market is trading steady while Asian and European markets continue to trade positive. Sensex is trading at 15453, up 326 points from its previous close, and Nifty is at 4651, up 100 points. CNX Midcap index is up 1.5% and BSE Smallcap index is down 0.1%. The market breadth is now negative with advances at 578 against declines of 689 on the NSE.

Hold Era Infra with target of Rs 127 where book partial profits, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 112, he adds. The stock is currently trading at Rs 116.50, up 5.7% on the BSE.

Buy Rolta with target of Rs 165, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 143.80, up 1.1% on the BSE.

Hold Amtek Auto with target of Rs 156-162, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 138, he adds. The stock is currently trading at Rs 146, up 4.7% on the BSE.

Hold Spicejet with target of Rs 35-37, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 21.90, down 1.6% on the BSE.

Buy Bhushan Steel with near-term target of Rs 975, says Akshita Deshmukh, technical analyst, on CNBC TV18. The stock is currently trading at Rs 821.15, down 1.7 on the BSE.

Hold Bajaj Hindustan and buy more on sharp dips, says Rakesh Kumar of Marwari P-Securities on NDTV Profit. It will give good returns in six months, he adds. The stock is currently trading at Rs 199.60, up 1.5% on the BSE.

The market continues to look positive, in the steps of good global cues. The Asian and European markets continue to trade strong. Sensex is trading at 15523, up 400 points from its previous close, and Nifty is at 4672, up 121 points. CNX Midcap index is up 2% and BSE Smallcap index is up 1.1%. The market breadth is positive with advances at 713 against declines of 548 on the NSE.

Hold NTPC and exit when it reaches Rs 218-222, says Pradeep Surekha, technical analyst, on Zee Business. Keep stop loss of Rs 205-207, he adds. The stock is currently trading at Rs 218.95, up 2.8% on the BSE.

Buy Kotak Mahindra Bank with near-term target of Rs 780-785, says Akshita Deshmukh, technical analyst, on CNBC TV18. The stock is currently trading at Rs 721, up 5.6% on the BSE.

Hold GMR Infra with target of Rs 200, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 150, she adds. The stock is currently trading at Rs 165, down 0.5% on the BSE.

Buy ICICI Bank with stop loss below Rs 650, says Neera Jain, technical analyst, on NDTV Profit. The stock is currently trading at Rs 755, up 2.6% on the BSE.

Buy Unitech at Rs 92-95 with stop loss of Rs 75, says MB Singh, technical analyst, on Zee Business. Keep short-term target of Rs 115 and mid-term target of Rs 150, he adds. The stock is currently trading at Rs 90.65, up 2.3% on the BSE.

Hold Sintex Industries with target of Rs 275-280, says Rajesh Agarwal, market expert, on CNBC Awaaz. The stock is currently trading at Rs 245, up 7.6% on the BSE.

Hold Prism Cement with target of Rs 55, says Prakash Gaba, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 36-37, he adds. The stock is currently trading at Rs 44.85, up 13.8% on the BSE.

Hold Infosys and book partial profits at Rs 1850, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss below Rs 1650, he adds. The stock is currently trading at Rs 1810.30, up 0.8% on the BSE.

The momentum in the market continues to be strong and it is headed higher, says Hitesh Agarwal of Angel Broking, on CNBC Awaaz. Buy PNB and HDFC Bank even at current levels for an upside of 15-20%, he adds.

Buy IDBI Bank with a target of Rs 120 where one can book profits, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 104, down 0.8% on the BSE.

Buy Adlabs Films only if it crosses Rs 450 for 10-12% returns, says Pradeep Surekha, technical analyst, on Zee Business. Keep stop loss of Rs 426, he adds. Or buy when it comes down to Rs 375 and keep stop loss of Rs 360, he adds. The stock is currently trading at Rs 419.05, down 1.6% on the BSE.

Buy Ashok Leyland with stop loss below Rs 30, says Neera Jain, technical analyst, on NDTV Profit. The stock is currently trading at Rs 33.80, up 1.5% on the BSE.

Buy Suzlon Energy at Rs 125-130 with stop loss of Rs 108, says MB Singh, technical analyst, on Zee Business. Keep short-term target of Rs 160 and mid-term target of Rs 170, he adds. The stock is currently trading at Rs 124.45, down 1% on the BSE.

The market at noon is looking cheerful and holding on to the gains of the morning. Sensex is trading at 15513, up 384 points from its previous close, and Nifty is at 4663, up 112 points. CNX Midcap index is up 1.6% and BSE Smallcap index is up 0.9%. The market breadth is positive with advances at 757 against declines of 483 on the NSE.

Buy DLF with target of Rs 460, says Salil Sharma, technical analyst, on CNBC Awaaz The stock is currently trading at Rs 398.50, down 1% on the BSE.

Hold Tech Mahindra with short-term target of Rs 892, says Rajat Bose, technical analyst, on CNBC Awaaz. It has resistance at Rs 836-849 crossing which it can go up to Rs 1000 and above in the long-term, he adds. The stock is currently trading at Rs 820.20, up 10.2% on the BSE.

Hold Satyam which will show an upside of 20-25%, says Mehraboon Irani of Centrum Broking on CNBC Awaaz. The stock is currently trading at Rs 73.50, up 10% on the BSE.

Buy IFCI only if it crosses Rs 56.50 for target of Rs 62, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 52.85, down 0.8% on the BSE.

Hold Essar Oil with target of Rs 230-250, says MB Singh, technical analyst, on Zee Business. Buy more when it comes to Rs 160, he adds. The stock is currently trading at Rs 176.90, up 1.9% on the BSE.

Buy Wipro with a target of Rs 460-470, says Hemant Thukral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 435, up 2.7% on the BSE.

Hold DLF which has support at Rs 340, says Pradeep Surekha, technical analyst, on Zee Business. It has resistance at Rs 450 crossing which it can go up to Rs 520, he adds. The stock is currently trading at Rs 413, up 2.6% on the BSE.

An hour into opening, the market is moving from strength to strength. The Asian markets are trading positive. Sensex is trading at 15550, up 423 points from its previous close, and Nifty is at 4685, up 134 points. CNX Midcap index is up 2.8% and BSE Smallcap index is up 3%. The market breadth is positive with advances at 1023 against declines of 193 on the NSE.

Buy Rolta India with target of Rs 154, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 148.70, up 4.5% on the BSE.

Buy Reliance Infrastructure with a target of Rs 1400-1800, says Rajat Bose, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1235.70, up 7.5% on the BSE.

Buy HCL Technologies with target of Rs 218-220, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 180, he adds. The stock is currently trading at Rs 202.30, up 4.1% on the BSE.

Buy Sesa Goa with a target of Rs 200, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 183.50, up 4.7% on the BSE.

Buy L&T with a target of Rs 1950, says Rajat Bose, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1662, up 5.6% on the BSE.

Buy RNRL around Rs 70 with a target of Rs 100-105 in 6 months, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 92.25, up 3.3% on the BSE.

Buy HDFC at Rs 2359 with a target of Rs 2425, says Simi Bhaumik, technical analyst, on Zee Business. Keep a stop loss of Rs 2330, she adds.

Chances of more downside than upside for the market, says Pankaj Pandey of ICICI Securities, on NDTV Profit. Market is likely to be rangebound for the next 3-4 days, he adds.

The market may see a strong opening today, says DD Sharma of Anand Rathi Securities on CNBC Awaaz. He expects to see buying in IT stocks and profit booking in realty stocks.

Buy Hindalco at Rs 91 with a target of Rs 95, says Simi Bhaumik, technical analyst, on Zee Business. Keep a stop loss of Rs 89.50, she adds.

Buy HDIL at Rs 284 with a target of Rs 295, says Simi Bhaumik, technical analyst, on Zee Business. Keep a stop loss of Rs 275, she adds.

Market Voices 10th June 2009

Market Voices 10th June 2009

The bulls proved unstoppable for the second successive day as strong global markets kept their mood upbeat right through the session today.
Stocks cutting across sectors rallied higher today. However, realty stocks attracted profit taking in afternoon trade and settled well off their highs.

The Sensex stormed past 15,500 in morning trade and hit a high of 15,580.81 around mid afternoon. The barometer ended the session at 15,469.81 (provisional) with a big gain of 342.81 points or 2.27%.
The Nifty closed at 4656.35, up 105.40 points or 2.32%. It rose to a high of 4688.95 today.

Ranbaxy, RComm, Tata Power, Reliance Infra, ACC, HDFC Bank, M&M, BHEL and L&T gained 4% - 7%. Hindalco, Grasim, HUL, ONGC, NTPC, Bharti Airtel, ITC, ICICI Bank, Maruti, RIL and Sterlite also ended on a firm note. Siemens, Cairn, HCL Tech, Axis Bank, ABB, Nalco, Ambuja Cements, PNB, SAIL, Cipla, Reliance Capital, RPL and RPower ended with sharp gains.

The Sensex is set to end on a high note today. While strong Asian markets set up the platform for a buoyant start, a firm trend in European markets is aiding the bulls in afternoon trade. Expectations from the forthcoming budget and hopes of a global economic recovery are the other factors that have contributed to the surge today.

Spicejet (cmp Rs22) can be retained with a stop loss near Rs 16. The stock can rise to Rs 30 where it is likely to face some stiff resistance. One can sell the stock there and buy back at lower levels. A breakout there can result in a surge to Rs 35 or further up.

Thomas Cook Group Plc has announced that the bankruptcy filing by Arcandor, which owns a majority stake in Thomas Cook, will have no impact on customers and is not expected to result in any adverse effect on any of the contractual arrangements. The company said that it's financing arrangements are completely independent from Arcandors financing and are not affected by today's development.

Thomas Cook also confirmed that it has not had any takeover approach and is not in any discussions in relation to the acquisition of the Arcandor stake or in relation to a potential offer for the company.

NTPC is a good stock to own. Though the stock is likely to see some correction, its long term prospects remain quite bright. One can buy the stock at sharp declines. Short term traders can book profits at rallies and re-enter later at falls.

Fresh exposure in IVRCL Infra, GTL Infrastructure, Gammon Infrastructure and PBA Infrastructure can be considered at 15 - 20% down from their current levels. One can hold these stocks for long term. More quantities can be added in a staggered way at declines.

LIC Housing Finance (cmp Rs 542) has come a long way from a low of Rs 151 it had touched in early December 2008. Strong results and expectations of higher revenues in forthcoming quarters are driving up the stock. One holding the stock can stay invested and look to buy more at sharp falls from here.

Cement stocks Ambuja Cements, Ultratech and ACC can be picked up in a staggered way at declines. India Cements and Madras Cements also look good for medium to long term.

Indian Bank, IOB and Canara Bank can give fairly strong returns over a short to medium run. One can also go in for Bank of India and BOB at declines. Among low priced ones, Syndicate Bank, Dena Bank and UCO Bank look good.

One holding BHEL (Rs 2284) can stay invested with a stop loss near Rs 2000 for now. The stock has next major support at Rs 1725 levels.
Fresh buying in the stock can be considered at sharp declines from current levels.


Central Bank of India is reportedly planning to raise Upper Tier II (Series III) capital to the tune of Rs 500 crore.

The stock is trading near its 52-week high of Rs 83.

Though a further rise looks very likely, some profit taking is not ruled out in coming sessions.

One can pick up the stock at sharp declines.

HCL Technologies (cmp Rs 202) can move up by another 10 - 15% in the short run if the current momentum at the counter sustains for sometime.
The stock has support at Rs 167 - 172 where one can have a stop loss for now. Long term investors can hold the stock with a stop loss further lower at Rs 140 levels.

Vishal Information Technologies Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 16, 2009, to recommend issue of Bonus Shares out of Premium Account, which will be issued subject to approval of Shareholders. Buoyed by the announcement, the Vishal Information Technologies stock spurted to Rs 65 this morning. At Rs 63, the stock is up by around 5.25% now.

Tata Tea (up 3.85% at Rs 845) has rallied to a new 52-week high this morning ahead of announcement of results. The company had reported a sharp 10% jump in its net profit for the quarter ended 31 December 2009. The stock had plunged to a 52-week low of Rs 430 in late November last year.

Market Outlook

The market is expected to open on a steady to firm note this morning. Some volatility is not ruled out during the first hour. As the session progresses, a bit of profit taking is expected.

Sector Watch

Technology stocks are likely to remain in focus once again. Bank stocks are likely to find support at lower levels. Metals may surge higher while oil stocks are likely to find the going somewhat tough.

Scrip Watch

HDFC will be in focus following an announcement from the company that a committee of directors of the corporation has approved a proposal for a combined offering of secured redeemable non-convertible debentures (NCDs) of up to Rs 40 billion along with warrants.

Tata Motors is likely to see action following the sale of 11 million shares of Tata Steel, or 1.5% of the Tata Steel equity, to promoter company Tata Sons for Rs 4568 million.

Dr Reddy's Laboratories has received approval from the US Food and Drug Administration to sell its Omeprazole Mg drug used for the treatment of heartburn. The company has announced that the first shipment of the product would start in the early part of the Q2 September 2009 quarter.

Macro and Market Factors

It was a flat close for the Dow Jones Industrial average yesterday after a highly choppy ride. However, with technology stocks trading firm, the Nasdaq ended with a fairly sharp gain. Asian markets are trading firm today and this is likely to keep the mood positive on the Indian bourses this morning.

The government is likely to ask private sector and foreign banks to step up disbursals to industry, after having directed state-run banks to do the same to help increase the flow of credit in the economy and boost liquidity in the market.

For any upmove to sustain, institutional investors will have to stay tuned to the market.

Brokerage Recommendations 9th June 2009

Brokerage Recommendations 9th June 2009

Buy L&T with a target of Rs 1650 after which it can go to Rs 1875, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1573, up 6.3% on the BSE.

The market uptrend seems intact and could go all the way to the Sensex target of 16050, says Prakash Gaba, technical analyst, on CNBC Awaaz. There is more upside to this rally, he feels. His top stock picks are Infosys (target of Rs 1900), L&T (target of Rs 1650-1675) and RIL (target of Rs 2400).

The market closing at the high point of the day is reassuring, says Kavi Kumar, market expert, on CNBC Awaaz. This shows that the momentum is likely to continue, he adds.

3:26 PM - Buy Rolta with a target of Rs 148 and stop loss of Rs 125, says an expert of SMC Global Securities, on CNBC Awaaz, as closing market strategy.

Buy RIL futures with a target of Rs 2800 and stop loss of Rs 2220, Nitin Muraka of SMC Global Securities, on Zee Business, as closing market strategy.

Buy Tata Steel with a target of Rs 455 and stop loss of Rs 430, says Technical Trends, on CNBC Awaaz, as closing market strategy.

Yesterday the market saw some profit booking, says IV Subramanium of Quantum Advisors, on NDTV Profit. The next two triggers for the market will be the budget and monsoon, he feels. These two could drive the market forward, he adds.

The market is looking good and continues to trade higher. Sensex is trading at 15113, up 447 points and Nifty is at 4553, up 123 points from the previous close. CNX Midcap index is up 2.86% and BSE Smallcap index is up 1.55%. The market breadth is positive with advances at 702 against declines of 569 on the NSE.

Sell SBI with a target of Rs 1724 and stop loss of Rs 1794, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1762, up 4% on the BSE.

Buy FAG Bearings with a target of Rs 456 in the long term, says Ranjit Kapadia of HDFC Securities on CNBC TV18. The stock is currently trading at Rs 409, up 2.4% on the BSE.

Buy Tanla Solutions with a target of Rs 113 in 3-5 months, says a market expert, on CNBC Awaaz. The stock is currently trading at Rs 76, up 3.4% on the BSE.

Sell DLF with a target of Rs 348 and stop loss of Rs 390, says Salil Sharma of Kapoor & Sharma Company, on CNBC Awaaz. The stock is currently trading at Rs 393, up 7.6% on the BSE.

Buy Unitech around Rs 92-95 with a short-term target of Rs 105, medium-term target of Rs 130-150 and stop loss of Rs 85, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 87, up 3.6% on the BSE.

Buy BHEL with a target of Rs 2340 after which it can go to Rs 2650, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 2255, up 1.08% on the BSE.

Buy Crompton Greaves with a target of Rs 350 and stop loss of Rs 250, says Neerja Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 302, up 2.5% on the BSE.

Buy Everest Kanto around Rs 200 with a short-term target of Rs 250, medium-term target of Rs 290 and stop loss of Rs 185, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 210, up 2.07% on the BSE.

Buy TTK Prestige with a target of Rs 200 in 12 months, says Sanjay Chhabaria, market expert, on CNBC TV18. The stock is currently trading at Rs 137, up 2.07% on the BSE.

Chances are that the market may close at the highs of the day today, says Ashwani Gujral, technical analyst, on CNBC TV18. After yesterday's correction market is back on track and Nifty may now close around 4620-4650, he adds.

The Asian markets are trading mixed while European markets have opened in the positive. Strong global cues see our market bounce back and now look smart. Sensex is trading at 15066, up 400 points and Nifty is at 4536, up 106 points from the previous close. CNX Midcap index is up 1.59% and BSE Smallcap index is up 0.29%. The market breadth is negative with advances at 618 against declines of 633 on the NSE.

Hold Nagarjuna Fertilisers with targets of Rs 52 and then 61, says Vasudeo Kamlakant, technical analyst, on NDTV Profit. Keep stop loss of Rs 31, he adds. It has support at Rs 37-34 and resistance at Rs 45, he says. The stock is currently trading at Rs 40.40, up 0.6% on the BSE.

Hold Suzlon Energy with target of Rs 150, says Nitin Murarka, technical analyst, on Zee Business. Keep short-term stop loss of Rs 110 and long-term stop loss of Rs 100, he adds. The stock is currently trading at Rs 121.80, down 0.6% on the BSE.

The markets are in a new cyclical bull phase and the uptrend will continue for a few more years, says Shane Oliver of AMP Capital Investors on CNBC TV18. According to him, there is plenty of upside seen. He is positive about Asia and the emerging markets and believes they would be outperformers as emerging markets would see increased inflows from Foreign Institutional Investors. On India, Oliver says he is overweight but only modestly so.

Hold Indiabulls Real Estate with target of Rs 270, says Vasudeo Kamlakant, technical analyst, on NDTV Profit. Keep stop loss of Rs 180, he adds. The stock is currently trading at Rs 209.80 up 0.8% on the BSE.

Buy Idea Cellular at Rs 70-72 with stop loss of Rs 64, says Nitin Murarka, technical analyst, on Zee Business. Keep short-term target of Rs 85 and medium-term target of Rs 95, he adds. The stock is currently trading at Rs 82.35, up 5.2% on the BSE.

Buy GMR Infra only on dips with targets of Rs 180-185 and then 200, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss on closing basis below Rs 145, she adds. The stock is currently trading at Rs 158.65, down 0.7% on the BSE.

Hold KS Oils and exit when it reaches Rs 65-70, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Instead invest in some other stock, he adds. The stock is currently trading at Rs 59.25, up 1.3% on the BSE.

Hold SBI which will give high returns in one year time, says Ashish Kapur of Invest Shoppe on NDTV Profit. The stock is currently trading at Rs 1751, up 3.3% on the BSE.

Long-term investors can hold Tata Steel, says P Phani Sekhar of Angel Broking on CNBC Awaaz. Short-term investors should exit because there is not much upside in this stock at the moment, he adds. The stock is currently trading at Rs 430.50, up 3.4% on the BSE,

Buy Voltas on dips at Rs 111 with target of Rs 158-170, says Vasudeo Kamlakant, technical analyst, on NDTV Profit. Keep stop loss of Rs 105, he adds. The stock is currently trading at Rs 129.30, up 3.1% on the BSE.

Buy JP Hydro at Rs 80-82 with stop loss of Rs 74, says Nitin Murarka, technical analyst, on Zee Business. Keep short-term target of Rs 110 and medium-term target of Rs 140, he adds. The stock is currently trading at Rs 86.30, down 0.9% on the BSE.

Hold Cairn India with target of Rs 375-400 in four months, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. It has support at Rs 218 and resistance at Rs 295, he adds. The stock is currently trading at Rs 241, down 1.7% on the BSE.

Hold Unitech with target of Rs 120-125, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 65, he adds. The stock is currently trading at Rs 85.70, up 1.7% on the BSE.

Buy Dish TV at Rs 35-40 with target of Rs 50-55, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 43.20, down 3.8% on the BSE.

Buy Monet Ispat at Rs 240-245 with stop loss of Rs 220, says Nitin Murarka, technical analyst, on Zee Business. Keep short-term target of Rs 310 and medium-term target of Rs 350, he adds. The stock is currently trading at Rs 266, down 1.7% on the BSE.

Hold Satyam and exit on a 10-15% rally, says Hemang Jani of Sharekhan on CNBC Awaaz. The stock is currently trading at Rs 66.85, up 10% on the BSE.

Buy Rolta India at Rs 110 with target of Rs 145, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 124.20, down 2.2% on the BSE.

Buy Reliance Industries at Rs 2090-2100 with target of Rs 2306-2310, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2207, up 0.8% on the BSE.

Hold Zee News with stop loss below Rs 40, says Simi Bhaumik, technical analyst, on Zee Business. The stock is due for correction, she adds. It is currently trading at Rs 44.50, down 3.9% on the BSE. » Send to friends

Hold Peninsula Land with targets of Rs 80 and then 95, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss on closing basis below Rs 60, she

Hold Suzlon Energy with target of Rs 170, says Ashwani Gujral, technical analyst, on CNBC Awaaz. It has support at Rs 100-105, he adds. The stock is currently trading at Rs 115.90, down 5.1% on the BSE.

Buy Pantaloon Retail at Rs 270-280 with target of Rs 450, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. It has resistance at Rs 350-400, he adds. The stock is currently trading at Rs 304.60, up 1.7% on the BSE.

Sell Tata Motors with stop loss of Rs 378, says Rajat Bose, technical analyst, on CNBC TV18. He sees support for the stock at Rs 357, 353 and 349. The stock is currently trading at Rs 354, down 3% on the BSE.

Sell Moser Baer at Rs 102.55 with target of Rs 95, says Hemen Kapadia, technical analyst, on CNBC TV18. Keep stop loss of Rs 107, he adds. The stock is currently trading at Rs 104, up 1.5% on the BSE.

Sell RComm at Rs 309 with intra-day target of Rs 297, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 315, she adds. The stock is at Rs 309.45, down 8.7% on the BSE.

Sell HDIL at Rs 268 with intra-day target of Rs 254, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 274, she adds. The stock is at Rs 268.75, down 11.7% on the BSE.

Market Voices 9th June 2009

Shrugging off a listless start and none too encouraging global cues, the bulls went on a rampage and lifted the market to a buoyant close today.

Buying was highly stock and sector specific in morning trade, but stocks across the board rallied higher as the session progressed. Expectations from Union Budget and hopes of a global economic recovery drove up stock prices today.

The Sensex ended 461.08 points or 3.14% up at 15,127. The Nifty closed at 4559.10, up 129.20 points or 2.92%.

Realty, information technology, metal and capital goods stocks were among the top gainers. There were strong gains for several FMCG, bank, telecom pharma and PSU stocks as well.

After remaining subdued for a long time, power and auto stocks rallied higher. Midcaps attracted attention. Smallcaps took time to settle down and were seen edging higher towards the closing minutes.

DLF shot up by over 10%. JP Associates gained around 9%. RComm, L&T, M&M, Ranbaxy, Tata Steel, Tata Power, TCS, ACC, Hindalco, RIL, Wipro and SBI gained 3% - 7.5%.

Infosys, ITC, Maruti, HUL, ONGC and Reliance Infra also signed off on a high note. HCL Technologies closed stronger by around 12.5%. Unitech, Idea Cellular, ABB, Axis Bank, SAIL, Suzlon, RPower, RPL, Reliance Capital, Ambuja Cements, Hero Honda, Siemens and Nalco also closed on a firm note today.

One can go long in TCS (Rs 785) even at current levels. Though some weak spells are likely in the near run, investors with a long term view need not worry about such falls. Instead, exposure can be increased at sharp dips. Other IT majors Infosys, Wipro, Tech Mahindra and Oracle too look set for more upside.

After pulling out heavily last calendar year, FIIs have been picking up stocks almost consistently since March this year. Inflow from FIIs in the current calendar year has already reached close to Rs 24,000 crore. In the first few days of this month, FIIs have invested close to Rs 2,600 crore.

Ramsarup Industries has commenced production of its 500 TPD DRI plant in West Bengal, and Waste Heat Recovery Boiler in Kharagpur. The plant, set up using German Outokumpu technology, will generate 20 MW of power along with gas generated from the blast furnace. The unit is likely to give the company a revue of Rs 4 crore per month.

Rising crude oil prices and reports that the government may defer a proposal to decontrol fuel prices have pushed shares of oil marketing companies down into the red. IOC, BPCL and HPCL have declined sharply on selling pressure and more downside is not ruled out in the very near term.

Amid hopes the worst is over for the U.S. economy and the banking system in that country, investors are lining up to buy software stocks once again. Most of the big players in the IT space have moved up sharply on strong buying support today. Though a further rise is not ruled out in the near run, some profit taking is likely over the next few days. Sharp declines can be used to increase exposure to these counters.

Bajaj Hindusthan plans to import around 1 lakh MT of raw sugar for processing at its sugar plants during the forthcoming sugar season 2009-2010. In this regard, it has executed contracts for raw sugar cargo aggregating to 91,000 MT. The stock is traded at Rs 196 at present.

Cairn India (Rs 241) can be retained for long term. The stock has support at Rs 200 levels and one can place a stop loss near that mark.
On the upside, the stock can rise to Rs 265 where it is likely to face some resistance. A decisive breakout there can result in a surge to Rs 300 or even higher.

Investors looking at medium term can try UCO Bank, Indian Overseas Bank, Indian Bank and Syndicate Bank for some smart gains. One can also buy Bank of India, BOB and Canara Bank at declines for medium to long run.

Four Soft Ltd has signed a contract with Flyjac Logistics Pvt Ltd (Flyjac), Mumbai, for implementation of its purchase order management software - 4S ePOMS - across Flyjac's multiple locations and its agents located around the globe. Flyjac is an existing client of Four Soft and is one of the largest logistics company in India, with offices and agents across the world.

Infotech Enterprises Ltd has signed a multi year contract with in Control Tech (iTEC) of Malaysia to implement an Enterprise GIS Information System for Tenga Nasional Berhad, the largest Electric Utility in Malaysia. The smallcap IT stock is currently trading at Rs 174, up nearly 4% over its previous closing price. The stock had hit a low of Rs 68 in mid March this year.

Though a few strong rounds of corrections are likely in the near term, the market is also likely to see a some good rallies ahead of Union Budget. Investors holding positions in quality stocks with a long term view can stay invested and look to buy more at sharp declines. Those with a short term view, can book at least partial profits at sharp rallies.

Areva T&D India is fast consolidating its leadership in the 765 kv domain in the country. The company, which has been winning orders quite consistently, has recently won four orders worth approximately Rs 350 crores to supply four extra high voltage 765 kv substations to Power Grid Corporation. One holding the stock (cmp Rs 344) can stay invested for long term and look at increasing exposure at sharp falls.

10:00 AM: Trading got off to a cautious start on the major Indian bourses this morning amid weak global cues.

Market Outlook

The market is expected to open on a weak note on negative global cues. However, some buying is likely at lower levels on expectations of some positive measures from the forthcoming Union Budget. A moderate to high degree of volatility is in the offing.

Sector Watch

With the Apex bank set to bring about more transparency by standardising the way banks calculate their PLRs and barring them from lending below their respective PLRs, some action is likely in the banking space today.

Realty stocks may find the going tough once again. However, some modest buying is not ruled out at lower levels at select counters.

Metals may find support at declines and regain a bit of lost ground. Select pharma and IT stocks may edge higher.

Scrip Watch

Jet Airways is planning to reduce capacity by another 10% and redeploy excess aircraft to select international routes that are showing signs of recovery in order to tackle a difficult slowdown that has seen passenger traffic declining. Last week, the company had said that it had already cut capacity by a fifth in the domestic market and was planning to prune it further.

Automobile stock Ashok Leyland may have a tough ride following the company's commercial vehicle sales dropping down by nearly 65% in May this year. The company had reported a decline of 67.90% in total domestic sales of medium and heavy commercial vehicles at 1,643 units from 5,119 units in the same month last year.

Macro and Market Factors

The Wall Street ended flat yesterday despite a strong comeback from lower levels. Asian markets are mostly trading in the red on profit taking. Back home, the bears, who had sent stock prices crashing down yesterday afternoon, are likely to fancy their chances again thanks to weak global markets.

Closing Bell 9th June 2009

Closing Bell 9th June 2009

The Indian markets made up for yesterday's losses as they ended the day on a strong note. The BSE-Sensex ended the day higher by around 460 points, while the NSE-Nifty closed higher by about 130 points. Stocks from the mid-cap and small-cap spaces ended the day on a firm note as well, recording gains of 3.1% and 1.5% respectively. Buying activity was witnessed in stocks across sectors led by realty, IT and capital goods. At the time of closing, the overall advance to decline ratio was poised at 1.1 to 1 on the BSE.

Other Asian markets ended the day on a mixed note. The European indices are currently trading mixed as well. Rupee was trading at 47.5 against the US dollar at the time of writing.

Following the Maharashtra government's decision to increase the value added tax by 8% to 20% on cigarettes, ITC, in a move to safeguard itself from the added taxes, has decided to increase the price of its cigarettes in the coming future. This move will help the company protect its margins in the face of more taxes and rising input costs. As per a leading business daily, the company is likely to hike prices of its premium brands by nearly 7%, though it has not confirmed the same. It may be noted that the company's rival brand had increased cigarette prices by nearly 11% recently. While the margins may improve on account of price hikes, volumes would be affected. Maharashtra accounts for nearly 10% of its total volumes. This would be a further blow as the company had already witnessed a 3.5% YoY decline in the total cigarette volume sales during FY09.

Retail stocks ended the day on a firm note led by Pantaloon Retail, Shopper's Stop and Koutons Retail. As per a leading business daily, Pantaloon Retail plans to raise additional long-term funds worth Rs 10 bn in various tranches through issuance of securities to various investors. The company would raise funds through a mix of public-private offerings or preferential allotments. The funds raised would be deployed to scale up its retail space to 30 m sq ft from the current 13 m sq ft. The company had earlier planned to expand its retail space by 2012. However, various issues such as the slowdown in consumption activity, falling footfalls, lack of easy availability of funds, and issues on the real estate front amongst others forced retailers to defer their expansion plans. As such, the raised funds would now enable the company to go ahead with its expansion plans after witnessing a delay of a year or two.

Prime Minister Manmohan Singh is of the belief that the Indian economy can clock a growth rate of about 8% to 9%. The rationale behind this thought is the high savings rate (of nearly 35%) that the country has. Dr. Singh believes that the main reason for the fall in GDP growth in the previous fiscal was lower investments. He further added that India will be in a position to clock a growth rate of 7% in the current fiscal. It may be noted that the RBI has projected a growth rate of 6%.

The Indian markets continued to move upwards on account of sustained buying activity witnessed during the previous two hours of trade with Sensex breaching the 15,000 mark again. Almost all the sectors are trading in the green with stocks from the realty, IT, metal and consumer goods sectors leading the pack of gainers. The overall advance to decline ratio is poised at 0.79 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 409 points and 105 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 1.99% and 0.49% respectively. The rupee is trading at 47.48 to the dollar.

Power stocks are trading firm led by Tata Power and Power Grid. As per a leading business daily, state owned Power Trading Corporation (PTC) is all set to acquire coal properties overseas in order to meet the growing domestic demand. The company has shortlisted mines in coal rich countries like Indonesia and Australia and is eyeing assets giving 15 million tonnes (MT) of coal per year. It has already committed supplies of the order of 1.5 MT per year to two 250 MW power projects for the next 25 years. It sees spurt in demand with orders for 5,000 MW power projects coming its way. These contracts shall enable PTC to secure long-term association with buyers and sellers, thereby making itself immune to competition, and simultaneously tie up long-term source of power for its trading activity.

As a respite to the plagued energy sector, the coming budget might extend a seven-year tax holiday presently given to crude oil explorers to producers of natural gas as well. The uncertainty started when last year the Finance Minister proposed to redefine mineral oil so as to exclude petroleum and natural gas. This meant depriving the natural gas producers from the benefits of the tax holiday. Later the finance ministry withdrew the definition. Hopefully the coming budget will clarify the ambiguity and will benefit companies like Reliance and ONGC. Stocks from the oil and gas sector are trading firm.

Persistent buying among the index heavyweights led the Indian markets to register strong gains during the previous two hours of trade. Currently, stocks from the software, metals and realty sectors are leading the pack of gainers, while select energy and power stocks are trading weak. The overall decline to advance ratio is poised at 1.6 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading firm, up by around 300 points and 75 points respectively. The BSE-Midcap index is trading higher by 0.9%, while the BSE-Smallcap index is trading lower by 0.4%. The rupee is trading at 47.57 to the dollar.

Telecom stocks are trading mixed. While RCOM is trading firm, Bharti Airtel is in the red. As per a leading business daily, Reliance Communications (RCOM) is likely to award an operations and maintenance contract worth US$ 500 m to US$ 600 m to the French telecom infrastructure major, Alcatel-Lucent. It may be noted that RCOM had entered into a joint venture agreement with the French major in May 2008 for an outsourcing contract from global telecom operators. This contract would either be executed independently by Alcatel-Lucent or the JV. The outsourcing contract will help in the operation of RCOM's GSM network and for maintenance and development of the company's 175,000 km global optical cable fibre systems. This move is in line with RCOM's initiative to improve competitiveness by enhancing network quality and thereby reduce operational expenditure and bring in quality standards.

FMCG stocks are trading higher led by HUL and Colgate. As per a leading business daily, HUL has deferred the stake sell of 49% in its BPO unit to Capgemini SA by a year. The company had earlier divested 51% stake in its BPO operations to focus on its core business of home and personal care and foods. However, the company had planned to sell the remaining 49% stake by March 2009, which has now been deferred to March 2010. Although, the agreement of deferment was made on mutual decision of both the companies, they have not divulged the reason for the same. It is believed that differences in the valuations are the main issue. It may be noted that the global slowdown has affected the valuations of companies, as prices are much lower than what they were before the crisis started.

1 - 5th June 2009 Week Review

Key benchmark indices surged to multi-month highs, extending gains for the thirteen straight week in anticipation of a strong push for economic reforms by the newly-elected United Progressive Alliance (UPA) government. The barometer index BSE Sensex raced past the psychological 15,000 mark. Besides strong inflow from foreign funds, positive global cues and further signs of recovery in domestic and global economy boosted the sentiment further. Strong buying momentum was seen in small and mid-cap stocks

There are signs of recovery in the Indian economy. Manufacturing activity in India expanded for a second straight month in May 2009 to its highest in eight months, a survey showed, reflecting a revival in domestic demand but export orders remained weak. The Market Purchasing Managers' Index (PMI) based on a survey of 500 companies, rose to 55.7 in May 2009 from April's 53.3, well above the threshold of 50 that separates expansion from contraction.

The manufacturing index was boosted mainly by the new orders index, which rose to 59.1 in May 2009 from 54.9 in April 2009. Manufacturing makes up about 15% of India's gross domestic product. Although domestic demand improved, the pricing power of manufacturers was hurt by intense competition, while higher commodity prices also pushed up input prices, Market economist Gemma Wallace said.

President Pratibha Patil addressed to a joint session of both houses on 4 June 2009 formally disclosing the agenda of the UPA coalition government. She said that the government would aim to revive economic growth with higher investments in sectors such as infrastructure, while adhering to fiscal prudence. Patil said steps would be taken to encourage foreign investment inflows, list shares of state-run firms and infuse more capital in banks. The government's immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown, she added.

Patil said the new regime will develop a roadmap for listing public sector units, co-ordinate with other countries to bring back illegal money stashed in secret bank accounts, recapitalise public sector banks, and bring in the pension reforms bill.

On the economic front, the government's immediate focus would be on sectors that are adversely hit, especially small and medium enterprises, exports, textiles, commercial vehicles, infrastructure and housing.

Hopes of market friendly measures propelled key benchmark indices in the week ended Friday, 5 June 2009. The BSE Sensex advance 478.30 points or 3.27% to 15,103.5512, its highest closing since 12 August 2008. The S&P CNX Nifty gained 137.95 points or 3.1% to 4586.90 its highest closing since 11 August 2009.

The BSE Mid-Cap index gained 353.04 points or 6.98% to 5,409.78 and the BSE Small-Cap index advanced 471.83 points or 7.88% to 6,458.65 in the week ended Friday, 5 June 2009. Both these indices outperformed the Sensex

Trading for the week started on an upbeat note with markets advancing on Monday, 1 June 2009 in anticipation of a strong push for economic reforms by the newly-elected United Progressive Alliance (UPA) government. The BSE 30-share Sensex gained 215.38 points, or 1.47%, to 14,840.63 and the S&P CNX Nifty rose 80.95 points, or 1.82%, to 4,529.90

Key benchmark indices saw divergent trend on Tuesday, 2 June 2009 with the BSE Sensex logging small gains and Nifty ending slightly lower in what was a highly choppy trading day. The BSE 30-share Sensex rose 34.28 points, or 0.23%, to 14,874.91. However the S&P CNX Nifty fell 4.65 points, or 0.10%, to 4525.25

Indices continued to see divergent trend for the second running day on Wednesday, 3 June 2009 as the Sensex ended with marginal loss while the S&P CNX Nifty settled slightly higher. The BSE 30-share Sensex fell 4.01 points, or 0.03%, to 14,870.90 after surging past the psychological 15,000 mark, the level it reached for the first time in nearly 9 months in intra-day trade. However, the S&P CNX Nifty rose 5.45 points, or 0.12%, to 4,530.70, its highest closing since 12 August 2008.

Buying frenzy in late trade helped indices reverse early losses caused due to weak global cues and log decent gains on Thursday, 4 June 2009. The BSE 30-share Sensex rose 137.78 points, or 0.93%, to 15,008.68 and the S&P CNX Nifty shot up 41.95 points, or 0.93%, to 4,572.65

Market extended gains on Friday, 5 June 2009 on the back of firm global cues and continued buying demand for index pivotals. The BSE 30-share Sensex rose 94.87 points, or 0.63%, to 15,103.55 and the S&P CNX Nifty rose 14.25 points, or 0.31%, to 4,586.90

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped 2.28% to Rs 2211.85 after its German unit Trevira, a specialty polyester manufacturer, went bankrupt. Reliance Industries had acquired Trevira five years ago for Rs 440 crore. This acquisition in 2004 had propelled Reliance to the position of the world's largest polyester fibre and yarn producer

Meanwhile, the Directorate General of Hydrocarbons has also reportedly contested the authenticity of claims of gas reserves at Krishna Godavari basin blocks D-3 and D-9 by Hardy Oil & Gas Plc. UK-based Hardy Oil, late last month, said RIL may have an estimated 20 trillion cubic feet of natural gas reserves in two areas off the east coast, more than double the quantity of its biggest field. The D-3 and D-9 fields may hold as much as 9.5 trillion cubic feet and 10.8 trillion cubic feet of gas, respectively, it had said. Hardy Oil & Gas Plc has 10% stake each in the two blocks where RIL is the operator with 90% interest.

Metal shares advanced on strong domestic demand and firm prices on the London Metal Exchange (LME). Steel Authority of India (up 1.71%), Hindalco (up 9.68%), Sterlite Industries (up 7.95%), and Hindustan Zinc (up 9.55%), edged higher.

The world's sixth largest steel maker by sales Tata Steel jumped 14.18% to Rs 463.90 after its unit, Tata Steel UK, won approval from banks to ease conditions on a 3.7 billion pounds loans it took to buy Anglo-Dutch Corus. The announcement was made on Saturday, 30 May 2009.

India's top small car maker by sales Maruti Suzuki gained 5.99% to Rs 1082.25 after total sales rose 15.7% to 79,872 units in May 2009 over May 2008.

India's top truck marker by sales Tata Motors jumped 15.55% to Rs 389.05 after global credit rating agency Moody's on Tuesday, 2 June 2009 revised upwards outlook for its low investment grade rating on from negative to stable after the company successfully refinanced a bridge loan for Jaguar and Land Rover acquisition. Despite the sharp rise, the stock is off day's high of Rs 378.70

India's second largest listed cellular services provider by sales Reliance Communications (RCom) surged 10.81% to Rs 338.85 on the company's plans to raise funds through the qualified institutional placement route.

RCom will seek shareholders' approval to garner funds from qualified institutional investors, either through a share sale or an issue of a variety of instruments including fully convertible, partly convertible or non-convertible debentures with warrants or any other security. Although the company did not say how much it planned to raise reports suggested it may be around $500 million and will be used to strengthen financial position for a planned participation in the upcoming auction for nationwide 3G and Wi-Max spectrum allocation by the Indian government.

India's largest cellular services provider by sales Bharti Airtel rose 0.63% to Rs 824.80, on fears that the merger deal with MTN would lead to dilution in earnings per share. On 25 May 2009, Bharti Airtel said it is in talks to buy 49% of Johannesburg-based MTN, the first step in a potential $23 billion merger. The deal may also see MTN, Africa's largest mobile-phone company, buy 36% of Bharti Airtel

Infrastructure shares gained on hopes the Congress-led UPA government may boost spending on infrastructure sector. GVK Power & Infrastructure (up 1.86%), GMR Infrastructure (up 3.79%), Bhel (up 5.17%), IVRCL Infrastructures & Projects (up 11.21%), surged

Realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. DLF (up 1.18%), Housing Development & Infrastructure (up 7.13%), and Unitech (up 22.63%), gained.

In the last six weeks, three realty firms Unitech, DLF and Indiabulls Real Estate, have together raised Rs 8000 crore through qualified institutional placements (QIPs).

India's largest bank by net profit and branch network State Bank of India (SBI) fell 2.74% to Rs 1817.90 on profit booking after the recent rally. Reportedly the bank hopes to earn more profit than the landmark figure of Rs 10,000 crore in the current fiscal

India's second largest bank by net profit ICICI Bank rose 1.41% to Rs 751.15 after it said on 4 June 2009 it will cut lending rates by 50 basis points from Friday, 5 June 2009. The benchmark advance rate, or the rate that it charges its top customers, will drop to 15.75% from 16.25%. It also cut floating reference rate (FRR) applicable to floating rate retail loans (including floating rate home loans) by 50 basis points. The revised FRR will be 12.75% from 13.25%. All the existing floating rate customers to benefit from the cut.

Shares of public sector firms gained on speculation the UPA government may revive disinvestment programme. Shipping Corporation of India (up 5.86%), HMT (up 4.87%), Hindustan Copper (up 26.55%), MMTC (up 24.09%), rose

The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on the back burner due to stiff opposition from the Left front which provided support to the previous government for most part of the five-year term.

India's largest cement manufacturer by sales ACC gained 9.57% to Rs 857.95 after cement production rose 1.11% to 1.81 million tonnes and cement dispatches rose 1.11% to 1.82 million tonnes in May 2009 over May 2008.

India's second largest software firm by sales Infosys Technologies gained 5.53% to Rs 1690.55 on reports the firm is looking at three to four companies with annual revenue of $100 million to $200 million in the U.S. and Europe for a potential acquisition.

Wholesale price index rose 0.48 % in the 12 months to 23 May 2009 lower than previous week's annual rise of 0.61%, government data showed on Thursday, 4 June 2009. The annual inflation rate was 8.9% during the corresponding week of the previous year.

The National Stock Exchange (NSE) after trading hours on 29 May 2009, announced a reduction in the lot size of a number of derivatives contracts as a part of a periodic review to meet a previously set value of the contract at Rs 2 lakh. For most of the stocks, the changes will be applicable from July 2009 derivative contracts. The reduction in lot size may result in increased participation from retail investors.

Thus, the lot size of Maruti Suzuki has been slashed to 200 from 800 and that of Steel Authority of India (Sail) has been reduced to 1350 from 5400. The lot size of Axis Bank has been halved to 450 from 900 and for Reliance Industries also the lot size has been halved to 150 from 300. State Bank of India's lot size too has been halved to 132 from 264.

India's infrastructure sector output grew 4.3% in April from a year earlier, government data showed on Tuesday, 2 June 2009. Output had risen 2.3% in the same month last year, and climbed 2.7% in the fiscal year ended March 2009 compared with 5.9% growth in 2007/08. The infrastructure sector accounts for 26.7% of India's industrial output.

Data during trading hours on Monday 1 June 2009 showed that the Market Purchasing Managers' Index (PMI) based on a survey of 500 companies, rose to 55.7 in May 2009 from April's 53.3, well above the threshold of 50 that separates expansion from contraction.

The manufacturing index was boosted mainly by the new orders index, which rose to 59.1 in May 2009 from 54.9 in April 2009. Manufacturing makes up about 15% of India's gross domestic product. Although domestic demand improved, the pricing power of manufacturers was hurt by intense competition, while higher commodity prices also pushed up input prices, Market economist Gemma Wallace said

Globally, China's official purchasing managers' index, a key economic indicator, slipped slightly in May 2009, but stayed above the 50 reading indicating manufacturing activity continued to expand for the third consecutive month. The Purchasing Managers Index slipped to 53.1 in May 2009 from 53.5 in April 2009 but held over the expansionary 50 mark, the China Federation of Logistics & Purchasing said.

US Treasury Secretary Timothy Geithner today, 1 June 2009 said that the global recession seemed to be losing force but that it will be critical for the United States and China to institute major economic reforms to put the world on a more sustained footing. Geithner said that a successful transition to a more balanced and stable global economy will require substantial changes to economic policy and financial regulation around the world and especially in the world's largest and third largest economies.

US GDP decreased at an annual rate of 5.7% in the first quarter of 2009, according to preliminary estimates from the Bureau of Economic Analysis. Although a significant contraction, the fall was smaller than the 6.3% drop in the fourth quarter of last year, and also beat advance estimates which had suggested a decline of 6.1%.

Source : capitalmarket

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.

BSE / NSE Shares analysis for 07-05-09

Cement stocks can be picked up at declines if one is looking at medium to long term.  ACC, Ambuja Cements, Grasim, Ultratech, India Cements and Rain Commodities are likely to drift down a bit in coming sessions and one can treat sharp declines as opportunities to increase exposure to these stocks.

JSW Steel has posted a net profit after tax of Rs 492.00 million for the quarter ended March 31, 2009 as compared to Rs 3701.80 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 35699.90 million for the quarter ended March 31, 2009 to Rs 34261.00 million for the quarter ended March 31, 2009.  Southern Iron and Steel Company Ltd amalgamated with the Company during the last quarter of 2007-08 with effect from April 01, 2007. Accordingly figures for the quarter March 31, 2008 have been aggregated with the figures of SISCOL extracted from its unaudited (limited reviewed) financial results/information and regrouped/restated to present the combined numbers for the amalgamated Company.

Jaiprakash Hydro Power Limited has posted a net loss of Rs 255.20 million for the quarter ended March 31, 2009 as compared to Net Profit of Rs 288.60 million for the quarter ended March 31, 2008.  Total Sales / Income from Operation has decreased from Rs 649.10 million for the quarter ended March 31, 2008 to Rs 608.10 million for the quarter ended March 31, 2009.  The stock is traded around Rs 41 at present. One can pick up the stock at Rs 32 - 35 levels for long term.

Unitech (Rs 53.35) can be retained for short to medium term.  The stock may see some weakness at times, but one can expect some solid returns from the stock over the next 6 - 9 months.  Sharp falls can be used to increase exposure. For now, long term players can have a stop loss near Rs 35.

Asian markets have posted strong gains today as fears over U.S. banks' financial status subsided to an extent.  The mood on the Indian bourses is cautiously positive today.  Though the market has been struggling at times, the key indices are holding on in the positive territory thanks to some strong buying in select blue chip stocks.  Midcap and smallcap stocks are in demand. The breadth is quite strong at present.

Marico Ltd's Non-Convertible Debenture Programme has been assigned a credit rating of "AA/Stable" (pronounced "Double A with stable outlook"), indicative of a high degree of safety with regard to timely payment of interest and principal.  Premier credit rating agency CRISIL has assigned this rating to Marico's programme.  With global economy still not out of the woods, some correction is not ruled out in the market.

Prices have moved up at an incredible pace and a lot many investors are likely to exit at the slightest excuse possible. Hence, it is advisable to refrain from building up big positions at current levels. One should have strict stop loss triggers in place.

Sun Pharma (Rs 1295) looks set for more upside.  The stock can move on to 1375 - 1395 where it is likely to find its next major resistance.  Long term investors can hold the stock with a stop loss near Rs 1070.

Union Bank of India has posted a net profit of Rs 4650.60 million for the quarter ended March 31, 2009 as compared to Rs 5211.30 million for the quarter ended March 31, 2008.  The bank's total income increased from Rs 29131.00 million for the quarter ended March 31, 2008 to Rs 38487.30 million for the quarter ended March 31, 2009.  The stock has tumbled 5.3% to Rs 160.70 due to the sharp decline in net profit. One holding the stock with a long term view can stay invested and buy more at sharp dips.

Hindustan Zinc has announced that ongoing exploration activities have yielded significant success with an increase of 46.3 million tonnes to its reserves and resources.  The company completed a record annual drilling of 70,300 meters in financial year 2009.  The Hindustan Zinc stock has gained nearly 6% at Rs 560. One looking at fresh buying can go in for the stock at 15 - 25% down from its current levels.

The Nifty (3652) will have to decisively break a resistance at 3682 to make a sharp upmove.  If it manages to do that, then a rise to 3715 or even higher is possible.  On the downside, the index can slip to 3590 if it slids to 3625 and displays weakness there.

ONGC (Rs 900) looks good for a move up north in the near term.  One can go in for the stock at current levels and pick up more at declines.  The stock can move on to Rs 912 or even higher today if the current momentum at the counter sustains for a while.

Metal, bank, capital goods and realty stocks have rallied sharply this morning.  Though most of the stocks from metal, banking and capital goods sectors are likely to extend gains in the near to medium term, realty stocks are likely to find the going tough for the next couple of quarters, if not longer.

Hence, it is advisable to be quite selective with regard to fresh investments at these levels in realty space. A little wait would do no great harm.

10:00 AM: Trading got off to a bright start on the major Indian bourses this morning on strong global cues.

The Sensex opened nearly 110 points up at 12,064.51 and is currently up with a big gain of 173.24 points or 1.44% at 12,125.99.  The Nifty is up 43.15 points or 1.19% at 3668.20.  Sterlite Industries, DLF, HDFC, Tata Steel, RIL, ICICI Bank and L&T have posted sharp gains.

Market Outlook

The market is expected to open on a firm note this morning on positive global cues. The mood is likely to remain fairly buoyant for a better part of the session. Though fears over the financial status of leading U.S. banks have receded a bit, some profit taking is not ruled out ahead of release of results of the stress tests the major U.S. banks were subjected to recently.

Sector Watch

Bank stocks are likely to attract attention. Some profit taking is likely later on in the day. Realty stocks may move up initially but many of them are likely to find it difficult to sustain at higher levels.

Information technology stocks are expected to rebound and regain some lost ground. Select metal, FMCG and auto stocks may surge higher.

Scrip Watch

Wipro may see action following an announcement from the company that Unitech Wireless has awarded a multi-hundred million long term outsourcing contract to Wipro for creating the next generation telecom company.

Tata Communications will be in focus following an announcement that the company is partnering RComm to provide joint data services between carriers in Russia and the rest of the world. The agreement will help Tata Communications to leverage its position of strength in the worldwide telecommunications sphere.

Birla Corporation, JP Hydropower, TN Petro, Union Bank of India, JSW Steel and Vardhman Textiles will announce their quarterly results today.

Macro and Market Factors

The Wall Street ended on a buoyant note yesterday with investors picking up financial stocks in a frenzied way as fears over the health of major U.S. banks receded significantly. Asian markets have taken cues and are trading firm at present.

The mood back home is likely to be bullish as well. FIIs were strong buyers in the previous session and if they remained active once again, then the market is likely to see a sharp rally today. Crude oil prices have moved up once again and this can cap the upmove to an extent.

Index Outlook for 4-8 May 2009

Index Outlook

Sensex (11403.2)

Equity markets maintained a nonchalant attitude last week despite many unsettling developments. First it was the swine flu that sent a tremor through financial markets, then there were reports of large US banks needing additional capital following the much-talked about stress test and Chrysler filed for Chapter 11 bankruptcy protection. Sensex managed to end the week on a highnote helped by some frantic last hour short-covering of derivative contracts.

It has been a stunning performance by Sensex in the month of April closing with 17 per cent gain. BSE Midcap and Smallcap indices kept pace with 18 and 21 per cent gain respectively. Trading was extremely volatile last week on long and short unwinding exerting pressure in both directions. Breadth was, however, weak as the action was concentrated mainly in the large-cap stocks. Volumes went through the roof, especially in the derivative segment of NSE. FIIs were net buyers for the week.

There is a slackening in the momentum indicators in the daily charts. Ten-day rate of change oscillator is perched on the zero line and the 14-day relative strength is moving down from the overbought zone. Weekly oscillators are however gung-ho. The 14-week RSI is rising at 62. The implication is that though there can be volatility in the short-term, the medium-term outlook is positive.

The three-day week just gone by has not changed our outlook along any time-frame. Sensex is moving in a narrow trading range over the short-term. Interpreting such sideway moves is tricky since though they are mostly continuation patterns followed by resumption of the up-trend, in rare cases, such moves turn out to be the last part of a up-trend called terminal corrective or a rounding top. The correct labelling becomes apparent only on completion of these patterns.

The safe way to play such patterns is to stay with the trend; that is to buy in declines until the index gives clear indication that is has reversed by declining below certain levels. Short-term investors can stay invested as long as Sensex holds above 10650. The trend-deciding level for medium-term investors would be 10200. Immediate medium term resistance band is between 11600 and 11800.

The all-pervading scepticism about the sustainability of the current rally appears to be aiding the Sensex to cover more ground. There can be a move higher to 11547 or 11687 next week. Strong move beyond the second resistance would take it to 12136. Supports for the week would be at 10700, 10440 and 10230.

Nifty (3473.9)

Nifty closed marginally in the red after a volatile start to the week. The index could move higher to 3487 or 3517 next week. If there is a close above the second target, it would usher in a rally to 3572. Supports for the week would be at 3300 and 3170. Short-term traders can continue to buy in declines as long as the index trades above the first support.

Medium term view for Nifty stays positive and a close below 3170 is required to signal a medium-term trend reversal.

Global Cues

Most global indices retained the gains recorded over the past month and closed marginally in the green. CBOE Volatility index declined below 40 as investors resumed betting on a sustained recovery in the markets. Europe was mostly strong. DJ Euro STOXX 50 closed with 2 per cent gain. Dow Jones Industrial Average made a tentative move above the 8100 mark. This index has been moving in a narrow range over the last four weeks. There is a strong chance of a break-out higher to 9100 or 9500 and this positive view will be mitigated only on a close below 7500. Jakarta Composite Index was the out-performer last week with 8 per cent gain.

Our View :

We feel that the market may pause or drift downwards.  The reports of a hung verdict will add to the woes.  Most of the Quarterly results are already priced in and it will be more of stock / sector specific jumps.

IT, Banking, Infrastructure are looking bullish and one can buy on dips.  Realty and Metals could be avoided for the week.

Compiled and Brought to you by 

Equity Research Team

Intelligent Investor -

Invest Advisory Arm of

Ravina Consulting - Bangalore India

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