Thursday, 17 September 2009

Divis Laboratories has target of Rs 587: Gujral

Divis Laboratories has target of Rs 587, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Divis Laboratories hasn’t moved but we would see alternative pharma stocks like Ranbaxy, Orchid have moved. So it’s a good idea to get into this at about Rs 515, targets could be closer to Rs 587.”

Source: Moneycontrol

Jet Airways has target of Rs 350-360: Bose

Jet Airways has a immediate target of Rs 350-360, says Technical Analyst, Rajat K Bose.

Bose told CNBC-TV18, "Jet from the middle of June was hovering around Rs 250 and for the first time it’s seen a move above Rs 280, so Jet Airways has actually come out of an accumulation zone. Now that the breakout has happened on the upside, so we have to call it that it was an accumulation and it has actually moved up. The immediate target would be Rs 350-360."

Source: Moneycontrol

Amtek Auto has target of Rs 225-230: Bose

Amtek Auto has a target of Rs 225-230 or even Rs 237, says Technical Analyst, Rajat K Bose.

Bose told CNBC-TV18, "Amtek Auto was in technical parlance on the bar chart, it was showing a pennant like formation, sort of a triangle. It was a continuation pattern. I haven’t seen it today but since you said it’s performed well, so there is an upside breakout. The technical target that I can give is that it can have a good upside once this Rs 210 is decisively crossed. Above that the target becomes Rs 225-230 or even Rs 237."

Source: Moneycontrol

Market takes a breather after 3-day rally; RIL slips 5%

Equities ended on a flat note Thursday after a three-day rally. The Nifty managed to mount the 5000 mark on an intra-day basis for the first time since May 23, 2008. However, it retraced from the psychological level dragged down by losses in the index heavyweight Reliance Industries and overall profit booking. ( Watch )

National Stock Exchange’s Nifty settled at provisional 4948.60, down 0.2 per cent or 9.8 points after the index surged to a high of 5003.05 in trade so far. The intra-day low was 4944.15.

Bombay Stock Exchange’s Sensex ended at 16,669.10, lower by 0.05 per cent or 7.94 points from the previous close. The index touched a high of 16,820.02 and low of 16,636.55 so far.

The broader market ended lower as well. The BSE Midcap Index was down 0.02 per cent and BSE Smallcap Index fell 0.09 per cent.

Declines were led by index heavyweight Reliance Industries which tumbled 5 per cent. Reliance said Petroleum Trust sold 15 million shares in the company at Rs 2,125 each on Thursday, raising about Rs 31.88 billion.

Other losers in the Nifty space were BPCL (-5.07%), Unitech (-3.48%), Tata Steel (-2.08%) and Reliance Capital (-2.19%).

HCL Technologies (5.74%), ACC (3.6%), Hindalco Industries (3.55%), Grasim Industries (23.56%) and Maruti Suzuki (2.43%) were the gainers.

Market breadth on BSE deteriorated with 1606 declines against 1196 advances.

Source: EconomicTimes

Buy Tourism Finance, target of Rs 30: Sharekhan

Sharekhan has maintained its buy rating on Tourism Finance Corporation of India (TFCI) with a price target of Rs 30 in its report dated September 16, 2009.

"Despite certain near-term challenges for growth, in view of the current industry scenario and the recent developments, we believe the medium to long-term outlook for the industry continues to remain positive. We are fine-tuning our estimates to factor in the details from the annual report. At the current market price of Rs 23.4, Tourism Finance Corporation of India (TFCI) trades at 6.5x its FY2010E adjusted EPS of Rs 3.6 and 0.6x its FY2010E book value of Rs 38.2. We maintain our 'Buy' recommendation on the stock with a price target of Rs 30," says Sharekhan's report.

Source: Moneycontrol

PNB an underperformer: Karvy

Karvy Stock Broking has rated Punjab National Bank (PNB) as an underperformer with a target price of Rs 755 in its September 17, 2009 research report.

"We revise our rating on Punjab National Bank (PNB) from 'Market Performer' to 'Under Performer' due to increase in stock price. We have not changed our earning estimates for FY10 and FY11; we expect the bank's net interest income (NII), operating profit and net profit to grow by 18%, 13.5% and 6.5% CAGR during FY09-11. We value the bank on DDM valuation methodology using cost of equity of 13.5%, we determine the bank's fundamental value at Rs 755 at 2.14 x FY11 adjusted book value," says Karvy's research report.

Source: Moneycontrol

Hold Glenmark Pharma, target of Rs 251: Sharekhan

Sharekhan has maintained its hold rating on Glenmark Pharmaceuticals with a price target of Rs 251 in its report dated September 15, 2009.

"Based on inherent risk on its research and development (R&D) pipeline and no near-term catalyst in sight, we feel, the stock is likely to be under pressure for the next twothree quarters, diminishing the possibility of any near term re-rating. Hence we maintain our Hold recommendation on the stock with the price target of Rs 251 (12x FY2011E core earnings for base business plus Rs 43 per share for R&D pipeline)," says Sharekhan's report.

Source: Moneycontrol

Nifty may top out at 5000, book profits: Analysts

The run of the bulls continues on Dalal Street. Even as the Nifty nears the 5,000 mark after close to 16 months, the debate over liquidity, valuations and market momentum at these levels gets more vocal. Is a Nifty at 5,000 a little too-overvalued given visibility over corporate earnings is still not very clear? Is a correction overdue or will the burst of fund inflow to emerging markets like India give it further momentum?

C Jayaram, ED of Kotak Mahindra Bank, feels valuations are getting stretched and the Nifty may not have more momentum to continue its rally. As the market rallies further, the liquidity argument gets weaker, he told CNBC-TV18 in an interview. “For my money, we have pretty much reached close to the end of the road,” Jayaram said.

Jayaram said that even as companies’ earnings had improved in the previous quarter, it was more a result of the cost-cutting they exercised. He added that markets would be at current levels even by December due to a lack of any major positive news triggers. “Also, I cannot see any big negative surprise as well because in case there is correction there is enough buying interest at levels about 10% lower than this.”

Source: Moneycontrol

Hold Tata Tea, target of Rs 939: Sharekhan

Sharekhan has maintained its hold rating on Tata Tea with a price target of Rs 939 in its report dated September 15, 2009.

"Considering the aggressive growth plans, we believe that Tata Tea is a good investment proposition for the medium to long term. However, with the rising raw material prices we expect a moderate performance in the near term and believe that trading at 12.8x its FY2011E earnings the stock has limited upside in the near term. We maintain our 'Hold' recommendation on the stock with a price target of Rs 939," says Sharekhan's report.

Source: Moneycontrol

Hanung Toys & Textiles (Rs 85.9): Buy

We recommend a buy in Hanung Toys & Textiles from a short-term perspective. It is apparent from the charts of the stock that after recording a 52-week low of Rs 24 in January, it began to trend up and has been on an intermediate-term uptrend. Within this trend, it was on a corrective phase during June and July (from Rs 105 to Rs 55). The stock resumed its uptrend, after taking support around Rs 55. On September 7, it conclusively penetrated a key medium-term resistance level of Rs 80 by gaining almost 10 per cent with good volume. The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered into the bullish zone and the weekly RSI is likely to enter this zone. Both daily and weekly moving average convergence and divergence indicators are hovering in the positive region. We are bullish on the stock from a short-term horizon. We anticipate the stock to move further until it knocks our price target of Rs 95 in the resembling sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 81.

Source: thehindubusinessline

Stocks in news: RIL, RPL, Infy, Bharati Ship, Great Off

Here are stocks that are in news today:

Reliance Industries - Exclusive: Sources
-Reliance (RIL) to sell part of treasury stock
-RIL to sell 1 crore treasury shares held by Reliance Petroleum trust
-RIL keeps option open to double treasury stake sale
-RIL to raise $437 million, option to double size
-Reliance Petroleum trust holds 6.65% stake in RIL
-RIL says have not sold any shares

Exclusive: Great Offshore Saga
-Bharati Shipyard buys 11.2 lakh shares (3% equity)
-Bharati Shipyard buys stake at Rs 560/share ((CMP Rs 565))
-Bharati will need to up open offer to minimum Rs 560/share
-Videocon among sellers in Great Offshore
-Bharti increases stake in Great Offshore to 22.5%

Pipavav IPO Update
-Overall subscribed 2.67 times
-QIB subscribed 2.82 times, HNI 7.54 times, Retail 0.88 times

Exclusive: Bharti-MTN update:
-Bharti's Akhil Gupta to meet South Africa authorities, stakeholders: sources
-Final deal structure will protect South Africa govt's economic interest: MTN Sources

Hewlett-Packard BPO Units - Exclusive: Sources
-Infosys, Cognizant likely suitors for Hewlett-Packard BPO units
-3 Hewlett-Packard BPO units up for grabs; estimated value $150 million
-Alert: Hewlett-Packard has 4 BPO units in India

Source: Moneycontrol

Pipavav IPO overbid 2.67 times: Should you invest?

Pipavav Shipyard has opened its initial public offering (IPO) of 85,450,225 equity shares of Rs 10 each for subscription. It has been subscribed 2.67 times so far and has received bids for 18.72 crore shares as against the issue size, as per the data available on the NSE website.

Maximum bids were seen at Rs 60/share, a higher end of the price band. Qualified and non-institutional investors' portion subscribed 2.83 times and 7.53 times, respectively.

It will raise nearly Rs 513 crore at higher end of the price band Rs 55-60 per equity share. The issue will close for subscription on September 18, 2009.

Moneycontrol conducted a poll whether to subscribe the issue or not. All experts recommended avoiding the issue while SP Tulsian and Avinash Gorakshakar recommended subscribing the issue.

Source: Moneycontrol

Ashwani Gujral's top five picks for today's trade

HCL Technologies: Buy
Stop loss at Rs 315 per share
Target of Rs 350 per share
HCL Technologies has been in a narrow range for the last eight-ten days and on September 16 broke out above Rs 320-321 –– from here it could easily go up to Rs 350 levels. So, we can keep a stop of about Rs 315 per share and buy it. On September 16, technologies came back so that’s a call given by the American Depository Receipt (ADR) performance that today HCL Tech could do well.

Nilkamal: Buy
Stop loss at Rs 135 per share
Target of Rs 154 per share
Correction for five-six days, stock did well on September 16 for the first day. So that should follow through today; Rs 135 per share is a stop here could buy it with a day’s target of about Rs 154 per share.

Eveready: Buy
Stop loss at Rs 65 per share
Target of Rs 79 per share
Eveready consolidated between Rs 60 and Rs 70 level. On September, the stock tried to move out. Now we have a stop of about Rs 65 per share and we could get to levels of Rs 79-80 per share.

Classic Diamond: Buy
Stop loss at Rs 19 per share
Target of Rs 25/29 per share
All the diamond stocks, the jewellery stocks are doing well maybe exports are picking up. Here Rs 19 per share is a good stop; one could get this stock at Rs 25 per share and even a bit larger target of Rs 29 per share. Generally the smaller stocks start doing well once retail participation comes back and even if the market levels are 5,000, retail participation is really low. So these stocks are yet to get to their full potential.

Torrent Power: Buy
Stop loss at Rs 254 per share
Target of Rs 300 per share
Torrent Power is a stock that’s making fresh highs. Power is sort of in the flavour, on September 16, ABB was seen coming back. So, one could buy this with a stop of about Rs 254 per share, target here could be easily Rs 300 per share. Beyond 5,000, we will get heavy-duty buying, that frenzied buying likely to come in midcap. So a lot of midcaps which broke out on September 16 are good buyers for levels beyond 5,000.

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.