Sell RIL above 1100

Reliance Industries, which has just acquired pan-India spectrum for wireless broadband services, expects its latest bet to pay for itself within three years from operation. A senior RIL official, Mr Manoj Modi, said this on Saturday, at a presentation for analysts in Mumbai. He pegged the total investment into the broadband venture at $5 billion. He also denied any intention of purchasing any of the existing 2G telecom players. RIL’s CFO Mr Alok Agarwal was also present at the meeting.

On Friday, RIL took everyone by surprise when it announced a Rs 4,800 crore bid to acquire a 95 per cent stake in Infotel Broadband. Infotel was the surprise winner of the broadband auction that had concluded hours earlier. The company will be following an “asset light” approach in its latest business — meaning it may go for external partners for infrastructure, applications etc.

RIL sees the broadband business as the next big opportunity in the telecom sector. In its presentation on Sunday, RIL says that broadband business in India is at the same stage today that mobile telephony was in 1995 – in terms of consumer spread. Penetration of broadband is less than 1 per cent, compared to 130 million subscribers in China. The company feels growth is likely to happen through wireless telephony — rather than fixed line wireless phones. The company expects subscriber figures to grow over 100 per cent per annum for the first few years. Data accounts for a large share of revenues for telecom firms globally, but the share is less than 10 per cent for top Indian telecom firms such as Bharti and Vodafone.

Infotel is the second major acquisition by RIL in the recent past. In April, RIL had acquired a stake in the US natural gas company for $1.7 billion. Last year, it was in the running for LyondellBasell, a global petrochemicals giant. In the past few quarters, expectations that Reliance will go for takeovers and acquisitions have risen.

Our Analysis :

RIL has been struggling to get past the 1100 mark and have a weekly close above that. We feel the telecom buy is a long term strategy and broad band will take time to grow unlike the mobile telephony. With intense competition the margins will be under squeeze. Advise investors with brave heart to short above 1100 keeping a stop loss of 1125, as a steep fall awaits the counter which could bring it down to sub 1k levels in the short term.

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Reliance Buy above Rs.1800 target Rs.2000

Reliance

There was no let-up in the bullish fervour on the RIL counter and the stock closed the week with a strong 4 per cent gain. It also held steadily above the 200-day moving average and moved past our first short-term target to an intra-week peak at Rs 1,768. RIL can move higher to Rs 1,786, Rs 1,920 or Rs 1,965 in the short-term, but negative divergences in the daily oscillators calls for caution in the short-term. Traders can buy in declines as long as RIL holds above Rs 1,600. Next support is at Rs 1,500.

The stock is already moving close to our medium-term target at Rs 1,825. A reversal from here will translate into a broad range between Rs 1,100 and Rs 1,800 for the ensuing months. Strong break beyond Rs 1,825 is needed to pull it to Rs 2,040.

Lokeshwarri S. K.

businessline 12-04-09

Our View :

Buy above Rs.1800 target Rs.2000

Reliance after a steep jump in the past 4 weeks is pausing for direction.  Returns over a

1 Week : 13.84%      

1 Month : 50.96%      

3 Months : 38.35%      

1 Year : -24.98% 

The KG6 gas effect has taken it higher driven by news.  With a drop in the daily volume we can expect a mild correction.  Buy on dips, the following data will help you to buy at appropriate levels -

PIVOT - 1986.68, 1924.08, 1861.48, 1798.88, 1767.32, 1736.28, 1704.72, 1673.68, 1611.08 , 1548.48, 1485.88 

FIBONACCI- 1837.57, 1815.91,1798.88, 1774.97, 1760.20, 1736.28, 1712.37, 1697.60, 1673.68, 1656.66, 1635.00

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Technical Analysis - Reliance Industries

RIL moved past our first medium-term target to record an intra-week peak at Rs 1,679. Next medium-term target for this stock is around Rs 1,825. The medium-term up trend from the March 6 trough can end here since it occurs at 38.2 per cent retracement of the entire down-move from the January 2008-peak. But if RIL gets past this level, the rally can go on to Rs 2,040. Investors should hold the stock with a stop at Rs 1,480. The short-term trend in RIL is up and the shallow corrections since the first week of March indicate a strong bullish undercurrent. Short-term resistances will be at Rs 1,752 and Rs 1,813. Short-term support would be at Rs 1,575 and Rs 1,497. Source : businessline

Technical Analysis - Reliance Ind

Reliance Industries surged strongly to a 15 per cent weekly gain, shattering the resistance at Rs 1,400 as well as Rs 1,500 with ease. The medium-term view has turned positive with the weekly close above Rs 1,500.

The sideways move between Rs 1,000 and Rs 1,400 since October 2008 appears to be a terminal corrective. Medium-term targets for the stock have now been revised upwards to Rs 1,647 and Rs 1,820. Caveat: these targets are achievable only if the stock holds above Rs 1,500 over the next couple of weeks.

RIL paused just below its 200-day moving average on Friday. A correction can now ensue that takes the stock lower to Rs 1,400 or Rs 1,330. Traders should avoid fresh longs on a decline below Rs 1,380.

Lokeshwarri S. K.

Market Voices 13-03-09

Today the Indian market witnessed one of the strongest session in recent months. Largecap stocks gained in strength though midcap and smallcap stocks were muted in their gains. Sensex is up 5.3% and Nifty is up 4%. BSE Midcap index was up 0.8%, BSE Smallcap index was up 2.5% over the week. BSE Metals index up 6.7%, BSE Auto index up 6.5%, and BSE Oil & Gas index was up 6.2%.  

It was a cheerful day for the Indian market that closed on a highly positive note. Sensex shut shop at 8756, up 413 points and Nifty at 2719, up 102 points from the previous close. CNX Midcap index was up 2.9% and BSE Smallcap index was up 1.9%. The market breadth was positive with advances at 890 against declines of 202 on the NSE. Top Nifty gainers included DLF, Tata Power and Tata Motors while losers included BPCL, ABB and NTPC.  

Hold long position in RIL, says Rajat Bose, technical analyst, on CNBC TV18. But do not buy at current levels because it is trading near its resistance level of Rs 1320, he adds. The stock is at Rs 1282.35, UP 6.7% on the BSE.  

Hold NTPC with long-term view, says Gaurang Shah of Geojit Financials, on Zee Business. Buy more at Rs 165, he adds. The stock is at Rs 170.20, down 2% on the BSE.  »

Hold Nagarjuna Construction for 12 months, says Sailesh Kanani of Angel Broking on CNBC Awaaz. It will give returns of 80-100%, he adds. The stock is currently trading at Rs 40.50, up 4.1% on the BSE.  

The Indian economy is close to bottoming out and it could turn around by Q4 this year, says Sam Mahtani of F&C Investments on CNBC TV18. He expects the second half of the year to be positive backed by the steep decrease in interest rates and aggressive monetary policy actions that was taken over in the past couple of months.  

Stay invested in Axis Bank, says VK Sharma of Anagram Stock Broking on CNBC TV18. It is one of those stocks in the private sector which has done pretty well, he adds. The stock is currently trading at Rs 330.55, up 8.6% on the BSE. 

Hold long positions in Nifty for target of 2780 and stop loss of 2660, says E Mathew, technical analyst, on CNBC TV18.  

It was a stellar day for the Indian market thanks to excellent global cues. Sensex closed at 8789, up 445 points (provisional) and Nifty at 2725, up 108 points (provisional) from the previous close. CNX Midcap index was up 3.1% and BSE Smallcap index was up 1.9%. The market breadth was positive with advances at 870 against declines of 315 on the NSE. This is the largest point and percentage gain for Nifty since December 10, 2008, says NDTV Profit.  

Buy Sesa Goa on dips, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 65 and resistance at Rs 105, he adds. The stock is at Rs 80, up 5.5% on the BSE.  

Go long on Cairn India at Rs 170 with target of Rs 175, says Vijay Bhambwani, technical analyst, on CNBC TV18. Keep stop loss of Rs 167, he adds. The stock is currently trading at Rs 169.70, up 3.95% on the BSE.  

Buy DLF when it goes above Rs 150 with target of Rs 162, 180 and 211, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 140, he adds. The stock is currently trading at 153, up 11.8% on the BSE.  

Hold Videocon Industries, says Rajesh Jain of SMC Global Securities on Zee Business. It has resistance at Rs 140-150, he adds. The stock is currently trading at Rs 84.50, up 1.8% on the BSE.  

The Indian market is trading firm with the Nifty above the 2700 mark. Commodity stocks are showing strength. The Asian markets closed on a high. Sensex is trading at 8716, up 372 points and Nifty is at 2709, up 92 points from the previous close. CNX Midcap index is up 2.7% and BSE Smallcap index is up 1.8%. The market breadth is positive with advances at 887 against declines of 300 on the NSE.  

Buy DLF on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It is worth taking a long call on this stock, he adds. The stock is currently trading at Rs 151.50, up 10.7% on the BSE.  

Buy Ambuja Cement with target of Rs 75 and 86, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 63, he adds. The stock is currently trading at Rs 68.80, up 1.6% on the BSE.  

HSBC maintains a buy call on Reliance Industries with target of Rs 1640, reports CNBC Awaaz. It is expected to give returns of 36% from current levels, it adds. The stock is currently trading at Rs 1271.50, up 5.8% on the BSE.  

Hold Chambal Fertilisers with stop loss of Rs 32, says Rajesh Jain of SMC Global Securities on Zee Business. It is trading in the range of Rs 32-42, he adds. The stock is currently trading at Rs 36.10, up 3.1% on the BSE.  

Hold GMR Infra with target of Rs 85, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 71.50, up 3.7% on the BSE.  

Buy Tata Motors with target of Rs 162 and 172, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 148, he adds. The stock is currently trading at Rs 158.30, up 8.5% on the BSE.  

Buy Dena Bank with target of Rs 36, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 28, he adds. The stock is currently trading at Rs 30.85, up 4.1% on the BSE.  

Buy ICICI Bank on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It has a long-term support between Rs 200-250, he adds. The stock is currently trading at Rs 307, up 8% on the BSE.  

The Asian and European markets are trading positive and following the global cues, the Indian market continues to hold up fairly well. Both the largecap and midcap indices are showing good gains. Sensex is trading at 8668, up 324 points and Nifty is at 2695, up 77 points from the previous close. CNX Midcap index is up 2.6% and BSE Smallcap index is up 1.4%.  

Hold HUL which has support at Rs 185 and Rs 210, says Ashu Bagri, technical analyst, on NDTV Profit. It has resistance at Rs 245, he adds. The stock is currently trading at Rs 228.50, up 1.4% on the BSE.  

Exit Indiabulls Real Estate on rally, says Sharmila Joshi of Systematix Shares on NDTV Profit. Invest in some other sector altogether, she adds. The stock is currently trading at Rs 89.60, up 4.7% on the BSE.  

Hold Shree Renuka Sugars with target of Rs 98-100, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. It has support at Rs 75, she adds. The stock is currently trading at Rs 76.75, up 2.1% on the BSE.  

Investors should sell Satyam on rally, says Phani Sekhar of Angel Broking on CNBC Awaaz. There is, however, trading opportunity in this, he adds. The stock is currently trading at Rs 46.60, down 1.3% on the BSE.  

Hold Axis Bank and sell when it reaches Rs 425, says Ashu Bagri, technical analyst, on NDTV Profit. It has support at Rs 220-270 and resistance at Rs 352-396, he adds. The stock is currently trading at Rs 326, up 7.1% on the BSE.  

Hold L&T for 2-3 years, says Gaurang Shah of Geojit Financials on Zee Business. It will give very good returns, he adds. The stock is currently trading at Rs 603, up 4.7% on the BSE.  

Buy Cairn India at its support level of Rs 150, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. Sell at Rs 168-170, he adds. The stock is currently trading at Rs 169.80, up 4% on the BSE.  

The Indian market continues to look good and cheerful as the Asian markets surge too. The indices are gaining ground. Banks, IT, realty and metals zoom. Sensex is trading at 8654, up 311 points from its previous close, and Nifty is at 2687, up 68 points. CNX Midcap index is up 2.4% and BSE Smallcap index is up 1.3%. The market breadth is positive with advances at 852 against declines of 302on the NSE.  

Hold Tech Mahindra at current levels, says VK Sharma of Anagram Stock Broking on CNBC TV18. The stock is currently trading at Rs 260 on the BSE.  

Hold Rajesh Export and exit when it reaches Rs 30, says Ashu Bagri, technical analyst, on NDTV Profit. It has support at Rs 19-20, he adds. The stock is currently trading at Rs 22.30, down 0.9% on the BSE. 

Hold Hero Honda with target of Rs 1040, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 935, she adds. The stock is currently trading at Rs 957.60, down 1.5% on the BSE.  » 

Invest in Escorts with long-term view, says Paras Bothra of Ashika Stock Broking on CNBC Awaaz. It will give good returns, he adds. The stock is currently trading at Rs 36.65, down 2.9% on the BSE.  

Hold GVK Power for long term with stop loss of Rs 12, says Gaurang Shah of Geojit Financials on Zee Business. The stock is currently trading at Rs 18.45, up 1.9% on the BSE.  

Buy SBI, Axis Bank and PNB on dips, says Daljeet Kohli of Emkay Shares and Stock Brokers on CNBC Awaaz. These are safe stocks to invest in, he adds.  

Buy Mahindra & Mahindra at Rs 280, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. It has resistance at Rs 334, crossing which it might go up to Rs 410, he adds. The stock is currently trading at Rs 352.20, up 7% on the BSE. 

Hold Reliance Capital with stop loss below Rs 274, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 303.80, up 7% on the BSE.  

At noon, the market continues to look good, steadying the gains of the day. Most heavyweights are pushing the indices up, except for NTPC which is trading in the red. Sensex is trading at 8625, up 281 points from its previous close, and Nifty is at 2685, up 68 points. CNX Midcap index is up 2.4% and BSE Smallcap index is up 1.4%. The market breadth is positive with advances at 867 against declines of 268 on the NSE.  

Buy Bharti Airtel at current levels but with strict stop loss, says Sudarshan Sukhani, technical analyst, on CNBC TV18. The stock is currently trading at Rs 550.70, up 0.1% on the BSE. 

Buy Satyam at around Rs 38 and hold for 3 years, says Gaurang Shah of Geojit Financials on Zee Business. Stop loss for short term should be Rs 32, he adds. The stock is currently trading at Rs 46.25, down 2.01% on the BSE.  

Buy IDFC on decline at around Rs 40-42, says Paras Bothra of Ashika Stock Broking on CNBC Awaaz. One can get returns of 10%, he adds. The stock is currently trading at Rs 47, up 5.2% on the BSE.  

Sell RIL on rally, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. Crucial levels to watch out for are Rs 1260-1280, he adds. The stock is currently trading at Rs 1238, up 3% on the BSE.  

Hold ICICI Bank with stop loss of Rs 248, says Simi Bhaumik, technical analyst, on Zee Business. It has resistance at Rs 330-350, she adds. The stock is currently trading at Rs 305.50, up 7.5% on the BSE..  

Buy Kotak Mahindra Bank at around Rs 230-210 with trading target of Rs 255-260, says Anil Maghnani, technical analyst, on CNBC TV18. Keep stop loss of Rs 205, he adds. The stock is currently trading at Rs 239, up 3.3% on the BSE.  

Hold Rolta India with stop loss of Rs 38, says Simi Bhaumik, technical analyst, on Zee Business. Exit when it reaches Rs 47-50, she adds. The stock is currently trading at Rs 43.35, up 4.8% on the BSE.  

An hour into opening, the market is looking good, holding on to the morning's gain. The Asian markets are rallying, too, with Hang Seng and Nikkei looking rather strong. Sensex is trading at 8584, up 244 points from its previous close, and Nifty is at 2677, up 59 points. CNX Midcap index is up 2.1% and BSE Smallcap index is up 1.5%. The market breadth is positive with advances at 820 against declines of 249 on the NSE.  

Buy Ashok Leyland on dips with stop loss of Rs 15, says Sudhanshu Pandey, technical analyst with LKP Shares, on CNBC Awaaz. It has a crucial level of Rs 17.20, crossing which it might go up to Rs 22, he adds. The stock is currently trading at Rs 17.15, up 3.3% on the BSE.  

Sell Dewan Housing on rally, says Paras Bothra of Ashika Stock Broking on CNBC Awaaz. The company is under pressure at the moment, he adds. The stock is currently trading at Rs 53.65, down 0.6% on the BSE.  

Hold Tata Motors with target of Rs 185-195, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 135, she adds. The stock is currently trading at Rs 153.60, up 5.2% on the BSE.  

Hold Tata Steel with target of Rs 165-175, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 160.80, up 3.1% on the BSE.  

Buy Emco with stop loss of Rs 23, says Anil Singhvi, market expert, on CNBC Awaaz. Traders keep target of Rs 31-32, he adds. Investors can expect returns of 25-30%, he says. The stock is currently trading at Rs 29.40, up 13.1% on the BSE.  

Buy Sesa Goa on decline of 5-10%, says Paras Bothra of Ashika Stock Broking on CNBC Awaaz. The stock is currently trading at Rs 78.80, up 4% on the BSE.  

Go long on Bank Nifty with target of 3525-3550, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of 3375, he adds.  

Sell Wipro on rally at Rs 225 with target of Rs 200, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 230, he adds. The stock is currently trading at Rs 215.95, up 1.8% on the BSE.  

Traders should buy equities today, says Sudarshan Sukhani, technical analyst, on CNBC TV18. He feels that buyers could either take profits or carry their position into Monday.  

The market opens on a reasonably good note today, following a rally in the US market. Autos and financial stocks are leading the gains. Sensex is trading at 8563, up 219 points from its previous close, and Nifty is at 2676, up 59 points. CNX Midcap index is up 1% and BSE Smallcap index is up 0.4%. The market breadth is positive with advances at 401 against declines of 58 on the NSE.  

Go long on Nifty Futures with target of 2690, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of 2580, he adds.  

Some covering by Nifty 2500 Put buyers was seen yesterday, says VK Sharma of Anagram Stock Broking on CNBC TV18. The Options data now indicates a neutral view with IVs coming down, he adds. He sees resistance for Nifty at 2680 and feels that a higher closing would lead to a short covering rally.  

There could be a short covering rally in the next few days followed by a collapse, says Anil Maghnani, technical analyst, on CNBC TV18. He sees resistance levels for Nifty at 2650 and 2700 and support at 2410 and 2480.  

The bias is on the upside for the near term given the positive global cues, says Amitabh Chakraborty of Religare Securities on CNBC TV18. He feels that the Nifty can go up to 2700, while the key support is at 2500. There are hopes that the Q3 GDP may be revised upward after the good IIP data, he adds

RIL tumbles

Reliance Industries tumbled 4.60% to Rs 1326.10 at 12:50 IST as the government did not re-introduce the anticipated seven-year income-tax holiday for natural gas producers.


Meanwhile, the BSE Sensex was down 326.28 points, or 3.39%, to 9308.61.
On BSE, 10.05 lakh shares were traded in the counter. The scrip had an average daily volume of 23.66 lakh shares in the past one quarter.
The stock hit a high of Rs 1395 and a low of Rs 1320.10 so far during the day. The stock had a 52-week high of Rs 2706.60 on 5 May 2008 and a 52-week low of Rs 930 on 27 October 2008.
The stock had outperformed the market over the past one month till 13 February 2009, rising 28.68% as compared to the Sensex's 6.21% rise. It had also outperformed the market in the past one quarter, rising 19.69% as compared to the Sensex's rise of 1.03%.
India's largest private sector company by market capitalization and oil refiner has an equity capital of Rs 1573.80 crore. Face value per share is Rs 10.
The current price of Rs 1326.10 discounts its Q3 December 2008 annualised EPS of Rs 88.97, by a PE multiple of 14.90.
External Affairs Minister Pranab Mukherjee, currently in charge of the finance ministry, presented the interim budget today, 16 February 2009.
The Petroleum Minister, Murli Deora, hinted some days back that the government may consider granting seven-year tax holiday for natural gas producers in an attempt to make the next round of Nelp (New Exploration and Licensing Policy) bidding attractive. The finance ministry had withdrawn the tax holiday last year.
Murli Deora was quoted by media as saying that petroleum ministry had written a letter to the finance ministry in this regard. This incentive is important for attracting investments in the Indian upstream sector.
Meanwhile, RIL will soon initiate discussions with buyers for its Krishna Godavari Basin field (D6 block) gas, reports suggest. Subsequent to the interim order of the Mumbai High Court that allowed RIL to sell gas at $4.20/million British thermal units, the company plans to start signing term sheets with the customers in the next few weeks. RIL is looking at starting trial gas production by the end of this month.
Reliance Industries' net profit fell 56.7% to Rs 3501 crore on a 8.8% decline in sales to Rs 31563 crore in Q3 December 2008 over Q3 December 2007.
RIL manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, Gujarat that produces a wide range of products such as gasoline, superior kerosene oil and liquefied petroleum gas.

Market cues and Share Tips 16 Feb 2009

Markets scaled a five-week high on expectations of stimulus measures in the interim Budget and a rate cut from RBI to ‘support’ the economy.

On the Bombay Stock Exchange, the Sensex closed 334 points higher at 9,635 and the Nifty on the National Stock Exchange gained 105 points to close at 2,948 during the week ended. Market breadth improved and sharp moves in many midcap and smallcap stocks reflect wider participation by market players.

While positive cues like fall in inflation to a one-year low and changes in FDI norms ‘boosted’ markets, negatives like weak global cues, weak IIP numbers and revision of GDP projecting slower growth kept the bulls on leash.

Fears over deepening rece-ssion and uncertainty in global equity markets are prompting investors opt for gold and silver. Punters exp-ect gold to cross $1,000 an ounce mark very soon.

Market players caution investors against “unreasonable expectations” regarding the Vote-On-Account. Chartists predict a trading band of 9,200-10,400 for the Sensex and 2,820-3,100 for the Nifty in the week ahead.

The Sensex and the Nifty could face resistance at 9,840 and 2,980, if rise abo-ve these levels, the indices may touch 10,600 and 3,150 levels in the near term.

Be bearish below 9,380 and 2,860 level on the indices on closing basis.

With no major trigger left after interim Budget, markets are likely to move in a broad range of 8,400-11,000 (Sensex) and 2,600-3,200 (Nifty) for next few weeks.

Don’t trade on the basis of tips. In other words, “trade with the trend, not your friend.” Get accurate information. Always demand facts, not opinions.

SATTA GUPSHUP

* Orient Paper and Inds is a diversified company with interests in paper, cement and fans. Its plants are strategically located in stro-nger growth markets of the south and the west. Buy value is Rs 25, trailing twelve month EPS is Rs 10 and the last dividend was 120 per cent. Buy at current levels for a medium-term target of Rs 33.

* Auto component major Bharat Forge is reportedly increasing focus on non-automotive businesses like railways, aerospace, power, marine and construction equipment. With commissioning of new facilities at Baramati and Mundhwa, sources indicate that share of non-automotive business to increase to 30 per cent. Buy in the present correction for portfolio.

* Allcargo Global Logistics is a logistics company operating in seven key areas of logistics. Its third quarter results were better than expectations due to its dive-rsified mix. Buy on declines for strong returns in the medium term.

* Recent coverage by some institutions triggered buying in Hind Dorr and Take Solutions. Chennai-based Take Solutions is a supply chain management and life sciences product company. Hi-nd Dorr is primarily in water infrastructure management with significant EPC business. Buy both the counters on declines for returns in the medium term.

* Onmobile is a pioneer and leader in the Indian VAS market having nearly all telecom operators as its clients. It is reportedly planning to tap international market. Buy on declines for unexpected sharp gains.

F & O

Mirroring the strong bullish undertone in the markets, brisk trading volumes were seen in derivatives segment. Overall open interest shot up to a three-month-high and stock futu-res saw a highest open interest addition since September 2006 reflecting ‘confidence’ of the traders over near-term strength of the rally. However, ‘quick’ unwinding of positions is not ruled out on evidence of negative surprises.

Sector-specific and long-term build-up was seen in cement, auto, fertiliser and metal counters. A modest and short-term build-up was seen in construction, infra and banking stocks.

Stocks that witnessed positive open interest build up are Adlabs, Balrampur Chini, Shree Renuka, Idea, R Comm., Power Grid, PTC, PFC, TV-18, Dish TV, RIL, RPL, LIC Hsg, Nalco and Crompton Greaves.

Inclusion of PowerGrid in MSCI index has triggered renewed buying in the counter. Buy on declines for a target price of Rs 125.

A sharp rally likely in RPL and JP Associates, say punters. The rally in media stocks to continue for some more time, say industry watchers. Stay invested for further gains.

Telecom counters witnessing a renewed buying interest from funds. Buy Idea and RComm. for a target price of Rs 65 and Rs 220 respectively in the near-term.

More sweet returns indicated in sugar counters. Use declines to accumulate. Cement and metal counters are attracting good buying on reports of better dispatches and modest improvement in price trends. Stay invested for further gains.

Though luck plays a great role in speculation, it demands cool judgment, courage, pliability and prudence.

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

Source : deccan.com

Tags : Idea, RComm, RPL, JP Associates, Adlabs, Balrampur Chini, Shree Renuka, Idea, R Comm., Power Grid, PTC, PFC, TV-18, Dish TV, RIL, RPL, LIC Hsg, Nalco, Crompton Greaves.