Wednesday, 2 September 2009

Jindal Saw (Rs 533.5): Sell

We recommend a sell in Jindal Saw from a short-term perspective. It is apparent from the charts that the stock was on a medium-term uptrend from its July low of Rs 318 to August peak of Rs 591. The stock breached its medium-term uptrend-line last week and has been on a short-term downtrend. The daily price rate of change indicator is displaying negative divergence and has entered the negative territory indicating selling interest. The daily relative strength index has entered the neutral region and weekly RSI is slipping from the overbought territory. The daily moving average convergence and divergence is signalling a sell. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it hits our price target of Rs 480. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 559.

Source: thehindubusinessline

NTPC and REC follow-on offers to hit the market this fiscal

State-owned utilities NTPC and Rural Electrification Corp will hit the capital market with their follow-on public offers to raise about Rs 9,000 crore by the end of the current financial year.

"NTPC and REC follow-on issues will come up before March 2010," Power Secretary H S Brahma told reporters here.

The government is likely to divest 10 per cent of its holding in the country's largest power generator NTPC, which also plans to offer 10 per cent fresh equity and hopes to raise Rs 6,000 crore through this follow-on offer.

NTPC would utilise the proceedings from this issue to part fund its capital expenditure plans of Rs 1,60,000 crore during the current XIth Five Year Plan Period (2007-12).

The company has set a target of achieving power generation capacity to the tune of 50,000 MW by 2012 from the current 30,000 MW.

REC on the other hand is awaiting cabinet approval for its FPO. The company wants the capital raised to disburse loans to power projects. It would issue about 17 crore shares of Rs 10 face value each. Considering the current market situation, the company is hoping to fetch about Rs 2,900 crore through premium to be decided later.

Source: EconomicTimes

Buy ICSA for short term target of Rs 225-250: Nirmal Bang

Nirmal Bang has advised traders to buy ICSA for short term target of Rs 225-250.

“Buy ICSA with an investment view. Strong support for the stock is seen at Rs 185-170 region. The counter is trading above its Bollinger band of Rs 199 and short term target looks Rs 225-250,” the recommendation said.

Source: EconomicTimes

Stocks to watch: IL&FS, Reliance, Reliance Communications, Infosys, TCS, Wipro

ude oil prices moved higher in Asian trade. New York's main contract, light sweet crude for October delivery was at $ 68.57 per barrel. Brent North Sea crude for October delivery advanced to $67.97.

India rupee opened lower on concerns of capital outflows from the stock market. At 9:40 am, partial convertible rupee was at 49.11, down 0.02 paise against the dollar.

Infrastructure Leasing & Financial Services (IL&FS ) has picked up a “significant minority stake” in the Reliance Industries-promoted special economic zone (SEZ) project in Haryana that has struggled to take off despite having started four years ago. The amount of stake that has changed hands and the value of the transaction could not be ascertained as yet.

The centre on Tuesday told the Supreme Court that NTPC and Anil Ambani’s Reliance Natural Resources were not on the same footing with regard to the supply of gas from the Krishna-Godavari basin by Reliance Industries even as Mr Ambani claimed credit for what he described as the “substantial amendments” in the government’s position.

Belgian Grand Prix is not the only race where Indian hopes are riding high. A worsening economic crisis is forcing companies such as AXA, Dexia Bank, Belgacom, drugmaker UCB and car insurer Allianz in Belgium explore IT offshoring and back-office projects, making it almost $6.5-billion opportunity for Indian outsourcing vendors including TCS, Infosys and Wipro apart from MNC rivals.

Reliance Infratel, a subsidiary of Reliance Communications, plans to raise Rs 5000 crore from the primary market, say media reports. The company is likely to file a draft Red Herring Prospectus in next one week.

Source: EconomicTimes

Sensex ends choppy session lower

Markets ended subdued session on a weaker note on Wednesday. Lack of fresh triggers and negative global markets weighed sentiments.

Bombay Stock Exchange’s Sensex closed at 15,469.36, down 81.83 points or 0.53 per cent. The index touched an intra-day high of 15628.10 and low of 15392.68.

National Stock Exchange’s Nifty ended at 4608, up 17.35 points or 0.38 per cent. The index touched an intra-day low of 4576.60 and high of 4650.45.

BSE Midcap Index was down 0.62 per cent and BSE Smallcap Index declined 0.21 per cent.

Amongst sectoral indices, BSE Realty Index was down 1.55 per cent, BSE Capital Goods Index was down 1.13 per cent and BSE Power Index was down 1.09 per cent. BSE IT Index was up 1.06 per cent and BSE Healthcare Index was up 0.40 per cent.

Biggest Sensex gainers were Reliance Communications (4.92%), Hindustan Unilever (2.24%), Hero Honda (1.71%), TCS (1.41%) and Infosys Technologies (1.13%).

Losers were Sterlite Industries (-2.88%), BHEL (-2.75%), Jaiprakash Associates (-2.66%), Mahindra & Mahindra (-2.04%) and Tata Power (-1.86%).

Market breadth was negative on the BSE 1585 declines and 1180 advances.

(All figures are provisional)

Source: EconomicTimes

Punj Lloyd has target of Rs 245: Gujral

Punj Lloyd has target of Rs 245, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Punj Lloyd had 7-8 up days. The key to shorting stocks is that once something has 7-8 up day, and you can broadly assume that more or less everyone is in and yesterday was the first down day, 4% down, so this becomes the right candidate because it has a very close top and target here is for the day could be about Rs 245. Now with all of the things like shorting or WWF, they say don't practice them at home, but incase 4,730 is taken out, you need to get out of these shorts.”

Source: Moneycontrol

Shree Renuka may go up further: Mohoni

On any revival in the market Shree Renuka Sugar may go up further from here, says Technical Analyst, Deepak Mohoni.

Mohoni told CNBC-TV18, "Shree Renuka Sugar is a pure momentum play. It has been doing quite well recently. Other sugar stocks have not been so great but Renuka is moving quite differently from many of the other sugar stocks. Even today it seems to have made some sort of an intraday breakout of sorts. It is not necessarily holding out too well now with the rest of the market but any revival in the market it could go up further from here.”

Source: Moneycontrol

Praj Industries has target of Rs 94: Gujral

Praj Industries has target of Rs 94, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Praj Industries again from about Rs 80 it had 5-6 good up days, found resistance at Rs 106. So this could have some more downside. The target here could be for the day at about Rs 94."

Source: Moneycontrol

Anu Jain's top five buys for today

Anu Jain, Vice President - IIFL Private Wealth Management, India Infoline advises buying Shree Renuka Sugar with a target of Rs 220 and stop loss of Rs 198. Maruti with a target of Rs 1620 and stop loss at Rs 1500, HPCL with a target at Rs 382 and stop loss of Rs 353, HOEC with a target at Rs 385 and stop loss of Rs 357 and Mahindra Satyam with a target of Rs 133 and stop loss of Rs 119.

Source: Moneycontrol

Bull's Eye: Stocks to buy today

-Technical Analyst, Ashwani Gujral

"We will be going short for the day and we will be choosing midcap realty and midcap technology, so Polaris would be the first stock which we will be shorting; the target there is Rs 129, the second stock would be Brigade Enterprises, the target there would be Rs 108. The third stock would be Ansal Properties, there the target would be about Rs 70.5 and the fourth stock is Firstsource and the target there would be Rs 31.6."

Source: Moneycontrol

Mkt may see 'healthy' correction; buy on dips: AMP Cap

The markets may enter a consolidation and could witness the traditional September weakness, Shane Oliver, Head Investment Strategy, AMP Capital Investors, said. In an interview to CNBC-TV18, Oliver said a 5–10% correction could take place, which would be ‘healthy'. “Investors must use the correction to buy on dips.”

Emerging markets, he said, were more vulnerable to severe corrections but added that EMs’ fundamentals remained strong.

Chinese remained a favourable market despite the recent correction, Oliver said, and added that while talk about the monetary tightening was a concern, there may not be an aggressive tightening by its central bank.

Source: Moneycontrol

Power story to unfold in FY11; buy long-term: 3i India

Power stocks like NHPC and Adani Power are best viewed as long-term investments, feels Anil Ahuja, Head of Asia, 3i India. "The power story will unfold in FY11 and we are taking a three-four year view on investments," Ahuja told CNBC-TV18 in an interview, adding that the power demand-supply gap will increase further and that merchant power rates can surprise on the upside.

According to Ahuja, return on equity (RoEs) in the power sector can go over 20% levels.

Source: Moneycontrol

Cummins India has target of Rs 352: S Dhawan

Cummins India has target of Rs 352, says Sajiv Dhawan of JV Capital Services.

Dhawan told CNBC-TV18, "Cummins India is a very largecap company, very well known for its diesel engines. It’s also into power generation and automotive business, valuations are reasonably high considering the run up we have seen. The stock is near its 52 week high but this company has a very good track record of dividends of the last several years and it's a company that from time to time that can give special dividends to its share holders. So we recommend the stock more for portfolio investors suggests that investors can look to accumulate on any decline. The longer term outlook is obviously reasonable but the short term target for the day is Rs 352. For the one year target, it would be atleast 20% plus, as I said earlier, any stock you buy for six month plus would have to be a target of atleast 20-30% plus otherwise it doesn't make sense to invest in any equity product.”

Source: Moneycontrol

NHPC likely to outperform in long term: Amit Khurana

NHPC is likely to outperform the market in the long term, says Amit Khurana, Co-Head - Institutional Equities Head, Research, Mangal Keshav.

Khurana told CNBC-TV18, "At the time of Adani Power I had mentioned that most of the money is coming out for the flipping part. So obviously these are experiences, which will not go down very well with the investors who have funded their positions but I think from a longer-term perspective, I would certainly be very positive on the sector and NHPC is one of those players, which can certainly outperform the markets over a long period of time. I think it is a game of patience and conviction.”

He further added, “NHPC would not be my top buy but I would certainly allocate some part of my portfolio to the stock. I would probably ignore it as a top picks, I think there are other stocks, which would be my preferred picks over there.”

“Somewhere between Rs 32 and Rs 35 is a good level to accumulate this stock but the important thing is that you cannot be trading on these small values in terms of pricing. Stocks fall like 5-10%, essentially you are going to take a call for the next atleast 24-36 months before the capacity start ramping up and that converts into earrings for them. So I think in between the trends one would certainly like to build up positions.”

Source: Moneycontrol

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.