Thursday, 24 September 2009

Reliance Infratel files draft prospectus for IPO

Anil Ambani group firm Reliance Communications on Thursday said its telecom tower subsidiary Reliance Infratel has filed the draft prospectus for its initial public offer with market regulator SEBI.

"Reliance Infratel has filed its draft red herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI)," RCom said in a filing to the Bombay Stock Exchange.

Reliance Infratel, a passive telecom infrastructure provider, is planning an IPO for divesting 15.60 crore equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process.

The net issue would constitute 10 per cent of the post-issue paid-up equity capital of the company, the statement said.

Source: EconomicTimes

Avoid stocks that ran up 20-50% in last few weeks: JM Fin

Gautam Shah, Technical Analyst, JM Financial Services said, the markets may see 5-7% correction in the near-term as the technical indicators were showing that the markets were overbought. He said he would avoid stocks that ran up 20-50% in the last few weeks. He advised to book part profits now. However, he quickly added that the markets would see 20-25% upside after the short-term pullback. The Sensex trading base was at 16000 levels, he said. His medium-term target for the Sensex was at 18300 and for the Nifty was at 5550.

He didn’t see too much upside in autos and technology stocks. However, he was positive on oil, power, banking, capital goods and realty stocks.

Source: Moneycontrol

Alembic (Rs 50.2): Buy

We recommend a buy in the stock of Alembic from a short-term perspective. It is apparent from the charts that the stock has been on an intermediate-term uptrend since October 2008 low of Rs 24.7, which is a multi-year low. In early July, the stock found twin support at Rs 35, from the intermediate-term up trendline as well as key support level. Subsequently, the counter resumed its uptrend and has been on a medium-term uptrend too. On August 27, the stock broke through a significant resistance at Rs 45 by surging 8 per cent accompanied with high volume. Besides, it gained 7 per cent with high volume on September 23. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) has entered the bullish zone and weekly RSI is featuring in this zone. The weekly moving average convergence and divergence indicator is steadily rising in the positive territory. We are bullish on the stock from a short-term horizon. We anticipate it to move up until it hits our price target of Rs 56. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 47.5.

Source: thehindubusinessline

Buy JP Associates at Rs 197-200: Gujral

Buy Jaiprakash Associates at Rs 197-200, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "JP Associates is weakened; it had a breakout above Rs 257 but the management used it. Now if one wants to buy it, around Rs 197-200 is a strong support, there people could try and get into it."

Source: Moneycontrol

Buy Alembic, says Ashwani Gujral

Buy Alembic with a stoploss of about Rs 46, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Midcap pharmaceutical particularly smaller ones like Aarti Drugs, Alembic did well yesterday. So there is some sort of momentum there. Alembic you could buy with a stoploss of about Rs 46 and the target here could be Rs 54 and then Rs 57. The idea here is that if the global markets are getting into some kind of a dip, we could have probably another 100 points towards that 4,800 kind of level but that will not happen in a very sharp kind of move. You will have jagged up and down kind of days and finally we will probably end the pullback around 4,800. So the idea has to be that if you are getting a gap down, don’t go and sell into it, try to buy and play for some sort of a pullback.”

Source: Moneycontrol

Buy Paper Products, says Gujral

Buy Paper Products with a stoploss of about Rs 58, says Technical Analyst, Ashwani Gujral. It has target of Rs 71.

Gujral told CNBC-TV18, "Some of the paper stocks did quite well and this one also moved higher. One could buy with a stoploss of about Rs 58; target here is about Rs 71. Most of my calls are buy calls because as long as the market stays above 4,800 to about 4,825 it’s above every major moving average and it’s holding the trend line which started from 2,200. So the trend remains intact and on dips one should expect to buy.”

Source: Moneycontrol

Buy Tata Coffee, says Gujral

Buy Tata Coffee, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Tea and Coffee sort of moved together yesterday. Globally these commodities have been stronger; the agricultural commodities. So Tata Coffee, one can buy with a stoploss of about Rs 360. It could get to levels of about Rs 445. Maybe on declines today it’s a good buy and over the medium-term you will get to levels of Rs 445.”

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.