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Sunday, August 28, 2011

Sun Pharma - Buy

Though the stock hit its record high a month ago, Sun Pharma remains the safest bet in the pharma sector. A strong balance sheet, robust cash flows and consistent performance make the company highly investment-worthy. It commands leadership in six therapeutic areas and boasts of one of the highest operating margins in the industry. Its prospects in the US market have improved after the Taro takeover.

Pharma Sector has done well inspite of the carnage recently witnessed. The company gave good returns to the investors as per the given data below

Time Span	Price	Change	%Change
Today	465.15	-5.20	-1.10
Week	467.20	3.15	0.67
Month	517.45	-47.10	-9.10
Three Months	445.15	25.20	5.66
Six Months	418.75	51.60	12.32
One Year	355.28	115.07	32.38

Buy on declines around Rs.425 levels and hold for a 2-3 years period for a good returns. The scrip gives capital protection and good gains in next bull run

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Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

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Power Grid - Buy on correction

The company is insulated from fuel availability and power off-take risks unlike other power companies. It also earns a fixed return on its investments. Its performance in the past one year has been impressive and earnings grew 23%. It will benefit from the huge demand for transmission capacity. Despite a 30% correction in the Power Index, the stock remains stable and makes for a less risky investment.

Time Span	Price	Change	%Change
Today	97.35	-2.20	-2.20
Week	101.00	-1.45	-1.43
Month	107.00	-7.45	-6.96
Three Months	97.65	1.90	1.94
Six Months	99.25	0.30	0.30
One Year	105.45	-5.90	-5.59

The scrip gave poor returns in the last 1 year. Buy on declines to 75 levels on deep correction and hold for a target of Rs.150/-

Oil India - Buy on correction

Oil India is the smaller peer of ONGC, which endows it with twin benefits, it enjoys the same traits as its larger peer when it comes to being defensive, but its smaller size means it can grow faster. It has steadily improved output in the past few quarters and is looking for overseas acquisitions. Being restricted to Northeast India was a major drawback, but it is expanding in other parts of India and overseas.

The scrip has under performed during the last 1 year as per the details given below.

Time Span	Price	Change	%Change
Today	1,307.05	-1.30	-0.09
Week	1,302.50	5.85	0.44
Month	1,257.40	50.95	4.05
Three Months	1,268.05	40.30	3.17
Six Months	1,217.35	91.00	7.47
One Year	1,442.50	-134.15	-9.29

Investors should add this scrip to your portfolio on any declines to Rs.1200 and hold for a target price of Rs.1800/-

ONGC - Buy

Latest Quotes | News/Announcements | Quarterly Results | P&L |Price History

The state-owned oil and gas major remains a safe bet in the current turbulent times, thanks to its robust balance sheet, inexpensive valuations and attractive dividend yield despite the compulsory subsidy sharing that's eroding profits. In the past one month, it has hardly fallen although the Sensex has lost 13.7%. If global oil prices fall due to another recession, ONGC stands to benefit as realisations will go up.

The stock has been under performing during the last 1 year as evidenced by the prices given below during the last 1 year

Time Span	Price	Change	%Change
Today	278.00	-4.20	-1.48
Week	275.75	6.45	2.33
Month	276.40	5.80	2.09
Three Months	283.00	-0.80	-0.28
Six Months	262.95	19.25	7.32
One Year	320.24	-38.04	-11.87

Investors with long term horizon should buy the stock on steep declines to Rs.250 levels and hold for a good return over a period of 1 year. With the fall in crude prices the scrip will gain and the reduction on subsidy burden on petrol and diesel will a positive trigger for the scrip.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
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ITC - Buy on declines

An established cigarette major, 60% of ITC's revenues are contributed by other businesses such as FMCG, hotels, paper, stationery and agriculture. Nevertheless, ITC relies heavily on the cigarette business as it generates 80% of net profit. Consistent growth, strong cash flows and high dividend payout of more than 45% make the company a safe haven for investors in these uncertain times.

Time Span	Price	Change	%Change
Today	196.85	-5.50	-2.71
Week	198.85	3.50	1.76
Month	200.80	1.55	0.77
Three Months	189.10	13.25	7.00
Six Months	156.15	46.20	29.58
One Year	163.15	39.20	24.02

Our recommendation -

ITC is a defensive stock and will give a decent return over a long term. Investors should utilize any sharp correction to buy this stock and hold for a period of 18-24 months for a good return on investment. Buy around 180 levels on a weak day !

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
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HDFC Bank - Buy on correction

It is the country's most premium bank in terms of valuations. Its strong financial and robust business model justifies the valuation. It is the most consistent performer in the sector in terms of profit growth and credit offtake. Its margin has stayed above 4%, which is one of the highest in the industry along with the lowest ratio of bad loans. So, despite a P/E multiple of 25, it is a safe bet for long-term investors.

One of the strongest banks the scrip has given minimal returns to the investors in the last one year as shown in the table given below.

Time Span	Price	Change	%Change
Today	438.70	-6.10	-1.37
Week	461.95	-17.15	-3.71
Month	501.85	-57.05	-11.36
Three Months	459.63	-14.83	-3.22
Six Months	409.27	35.53	8.68
One Year	435.36	9.44	2.16

Our Recommendation :

The banking sector is likely to under perform in the short term. The scrip can go below Rs.400 giving an excellent investment opportunity for long term investors. Buy for a target price of Rs.600 for a holding period of 1 year.

BHEL - Portfolio Buy

Latest Quotes | News/Announcements | Quarterly Results | P&L |Price History

The company's stock trades at a P/E of less than 14, the lowest since March 2005. The current price makes the stock an attractive buy, given its strong balance sheet and sound financials. It has been logging a double-digit revenue growth, consistently since the past five years. However, order inflows and growing competition from Chinese manufacturers are some near-term concerns.

The scrip gave negative returns in the past year

Time Span	Price	Change	%Change
Today	1,736.50	-15.10	-0.86
Week	1,683.25	68.35	4.06
Month	1,824.90	-73.30	-4.01
Three Months	1,936.00	-184.40	-9.52
Six Months	1,975.00	-223.40	-11.31
One Year	2,478.50	-726.90	-29.32

The scrip has under performed during the last 1 year and is likely to be subdued going forward. Long term portfolio investors can buy around Rs.1500 levels for a target price of Rs.2,500 holding period of 12-15 months.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor

Axis Bank - Buy on declines

Axis Bank's loan book grew a robust 45% compared with an industry average of 21% between 2006 and 2011 due to its strong branch network. A strong loan book along with healthy fee income have boosted profit at a CAGR of almost 50% in 2007-11. Non-performing assets have been more or less stable for Axis. At the current P/E multiple of 12, the stock is reasonably valued.

The scrip has given negative returns in the near term

Time Span	Price	Change	%Change
Today	999.85	-21.80	-2.13
Week	1,072.75	-51.10	-4.76
Month	1,300.10	-278.45	-21.41
Three Months	1,218.95	-197.30	-16.18
Six Months	1,230.70	-209.05	-16.98
One Year	1,364.00	-342.35	-25.09

The banking sector is likely to under perform in the next 2 quarters and the prices are likely to dip further till December 2011. Investors can buy the scrip around Rs.800 levels and hold for 2-3 years for a decent return on investment.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor

Friday, August 26, 2011

Uflex - Buy on declines

We recommend a buy in the stock of Uflex from a short-term perspective. It is evident from the charts of the stock that after bottoming out in March, taking long-term support in the range between Rs 125 and Rs 130, the stock began to move upwards. This trend reversal was also triggered by a positive divergence in daily moving average convergence divergence. Since then the stock has been on a medium-term uptrend.

Last June, the stock took support at around Rs 180 and bounced up penetrating its 50- and 200-day moving averages. Short-term trend is also up for the stock. Reinforcing the bullish momentum, the stock climbed five per cent accompanied by extraordinary volumes on July 22. Daily relative strength index is featuring in the bullish zone and weekly RSI has just entered this zone from the neutral region.

Both daily as well as weekly moving average convergence divergence indicators are featuring in the positive territory implying upward momentum. Considering that the stock's medium-term uptrend line is intact, we are bullish on it from short-term horizon.

The scrip has under performed in line with the market, as evidenced by the prices given below

Time Span	Price	Change	%Change
Today	172.80	-13.90	-7.44
Week	177.50	9.20	5.18
Month	222.50	-35.80	-16.08
Three Months	180.10	6.60	3.66
Six Months	139.10	47.60	34.21

Buy around Rs.160 levels (recent bottom) We expect the stock up move to prolong until it hits our price target of Rs 226 or Rs 234 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 218 levels.

Tuesday, July 19, 2011

Eros International Media - Buy

Eros International Media has been giving consistent returns to the investors and the following table shows thatit has given a return of around 38% in the last 6 months. The scrip continues to attract buying interest. Buy on declines for a 25-30% return in the next few quarters

Particulars	Week	1M	3M	6M
Price	186.90	161.90	142.70	145.30
Net Change	13.30	38.30	57.50	54.90
%Change	7.12	23.66	40.29	37.78

Investors with short-term perspective can consider buying the stock of Eros International Media. Since its listing in October 2010, the stock has been on an intermediate-term downtrend. However, after registering a life-time low at Rs 124 in late March, the stock changed its direction. This reversal was backed by a positive divergence in the daily as well as weekly relative strength index. The stock has been on a gradual uptrend since its March low. Last week, the stock took support around Rs 186 and bounced upwards.

Last week, the stock advanced 4.6 per cent breaching its 21- and 50-day moving averages emphatically. We notice that there has been an increase in volumes over the past five trading sessions. The daily RSI is hovering around 58 and is on the brink of entering in to the bullish zone. The weekly RSI is inching higher in the neutral region towards the bullish zone. Daily moving average convergence divergence indicator has signalled a buy and has started to move higher in line with the stock price.

We are bullish on the stock from a short-term perspective. We anticipate it to rally until it reaches our price target of Rs 253 or Rs 257 in the next 2-3 months. Traders can consider buying the stock with stop-loss at Rs 180

Monday, July 18, 2011

Ramky Infra - Avoid

Investors with medium-term perspective can consider buying the stock of Ramky Infrastructure (Rs 281.9), an infrastructure constructor and developer.

From its all-time high of Rs 460, registered in early October 2010, the stock had been on a medium-term downtrend until it found support around Rs 242 in early February 2011. The stock changed its direction thereafter and started consolidating sideways in a broad range between Rs 242 and Rs 310.

Key support at Rs 242 provided base during mid-March and the stock bounced up triggered by positive divergence in weekly relative strength index.

Recently, the stock took support around Rs 255 and started to move higher, with in the sideways range. On May 27, the stock jumped 6 per cent, breaching its 21- and 50-day moving average, showing initial bullish signals. We notice that there is an increase in volumes in past two trading sessions.

The daily relative strength index is hovering around 58 and is on the brink of entering in to the bullish zone, whereas the weekly RSI has re-entered in the neutral region from the bearish zone. The daily moving average convergence-divergence indicator has signalled a buy and is moving in line with the stock price. We also see the daily price rate of change indicator entering in to the positive territory indicating buying interest.

Our medium-term outlook in the stock is bullish. We believe that Ramky Infrastructure has the potential of trending higher and reaching our medium-term price target of Rs 330 following a small pause or sideways movement around Rs 310. Investors with medium-term perspective can consider buying the stock while maintaining stop-loss at Rs 258.

The following returns table gives the price movements

Particulars	Week	1M	3M	6M	1Y	2Y	3Y	5Y
Price	281.30	287.75	290.65	307.00
Net Change	3.05	-3.40	-6.30	-22.65
%Change	1.08	-1.18	-2.17	-7.38

Our Recommendation - for Ramky and Infra stocks Avoid

Friday, July 15, 2011

IDBI Bank Buy on declines

May 23, 2011:

We recommend a sell in the stock of IDBI Bank from a short-term perspective. It is evident from the charts of the stock that since November 2010 peak of Rs 202, the stock has been on an intermediate-term downtrend. Moreover, after encountering resistance at Rs 123 in late April, the stock resumed its downtrend. While trending downward, the stock conclusively breached its 200- and 50-day moving averages and is trading well below them. The stock has also penetrated its key support at Rs 140 in late April. Reinforcing the downtrend, the stock fell by three per cent with above average volumes on May 23.

The daily relative strength index has re-entered into the bearish zone from the neutral region and weekly RSI is on the verge of entering in to the bearish zone. Both daily as well as weekly moving average convergence divergence indicators are featuring in the negative territory indicating downward momentum.

Our Recommendation

We are bearish on the stock from a short-term perspective. We expect its decline to continue until it reaches our price target of Rs 125 or Rs 121 in the approaching trading sessions. Traders with short-term horizon can sell the stock to re-enter around 125 levels for a target of 142

The folllowing chart shows the returns over a period of 1 year horizon indicating clearly the support and resistance levels

Time Span	Price	Change	%Change
Today	135.35	0.60	0.44
Week	133.50	1.25	0.93
Month	131.45	3.30	2.51
Three Months	147.95	-13.20	-8.92
Six Months	146.45	-11.70	-7.98
One Year	125.70	9.05	7.19

The best strategy is to buy low and sell on a gain of 20% on your investment over a period of 2-3 months

Wednesday, July 13, 2011

Biocon - Buy on dips

May 19, 2011:

We recommend a sell in the stock of Biocon from a short-term perspective. It is seen from the charts of the stock that since recording its all-time high of Rs 464 in October 2010, the stock has been in an intermediate-term downtrend. After encountering resistance around Rs 390 in late April, the stock started to decline. Since then, it has been on a short-term downtrend and it appears to have resumed its intermediate-term downtrend.

Reinforcing the downtrend, the stock slipped three per cent conclusively penetrating its immediate support at Rs 345 on Thursday. It is trading well below its 50- and 200-day moving averages. The daily relative strength index is featuring in the bearish zone and weekly RSI is slipping towards this zone in the neutral region. Daily moving average convergence divergence indicator is on the brink of entering into the negative territory whereas weekly indicator is hovering in the negative terrain signalling downward momentum.

From a short-term perspective we are bearish on the stock. We anticipate its decline to continue until it reaches our price target of Rs 324 or Rs 313 in the ensuing trading sessions. Short-term traders can sell the stock while maintaining

Our views :

It is giving great trading opportunity for traders to make money. Look to buy around 310 levels for a target of 370.