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Showing posts from June, 2008

Buy for July 01

The Indian market has not seen any significant news for the bulls to return. There is significant bad news in the markets, to name a few: Early elections, High Oil and natural gas prices, double digit inflation pressures, the financial problems on the wall street driven by sub prime lending, to name a few. This provides pretty good opportunity for long term buys. We will suggest those stocks which are really good long terms buy. Buy for July 01. Tata Chemicals Ltd. 290, 295, 300. SL 220.

Real Estate market in India :

Real Estate market in India : Our Economic Analyst has issued warning for all those who invested in Real Estate properties in Metro Cities. This is your last chance to sell real estate property and book your profit. Real Estate will take not be as good as it was 6 to 8 months back..

Buy for June 25

Help! Help! Help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Some body call the CBI, please call the police...... Markets have lost their Bull and the Bear has taken over the Dalal street..... But this means its a good opportunity to buy. Buy Tata power 1117.5, 1150, 1190. Sl 999.0. Buy RPL 165, 170, 175. SL 150. Buy TCS 845, 880, 890. Sl 800. Hold for at least 3 months, markets will rebound because they have to.

Buy for June 24

The SENSEX will find support around 14K. There are some good companies to buy Ratnamani Metals & Tubes Ltd. -> 762, 770, 780. SL 740.

Market Analysis June 23

Market Analysis : If Saudi Arabia can give good news in terms of oil production hike than market may show a bounce back. Buy for June 23 : Buy ONGC>873.1,887,900, sl 868

Inflation : 13-yr high

Boiling crude and surging commodity prices finally pushed inflation over the dreaded double-digit mark. Inflation for the week-ended June 7 came in at 11.05% as against 8.75% week-on-week. The timing couldn't have been worse for the markets, which has been bogged down for the past three days on political tensions, growth slowdown fears, and tighter policy action to curb inflation. So, where do experts see the markets headed? Will tighter government action derail markets going ahead? Enam feels the high inflation figure is due to a huge increase in commodity prices. It expects inflation to be around 10% till August-end. There are worries that Monetary Policy should not overreact to inflation. Deven Choksey of KR Choksey Securities said a 1% rise in interest is given. He observed that if interest rates remain at a high level, then banks’ yield will be under pressure and it could be a challenge for the banking sector and stocks. ”A 1% rise on interest rates is given, particularly wh

June 20 Analysis

Analysis : As predicted yesterday the market fell like a pack of cards and thus the market could slide a bit more and thus this week is likely to be volatile.Key support for Sensex exists at 15215-15085 andresistance for the market up move exists at 15255-15685. Nifty will find support at 4440. Market is likely to trade weak due to impending fiasco of Nuclear deal and CPM may pull support and general elections may be in offing in November or December. To me the game plan appears like to enjoy complete power period and to save face in world go for nuclear deal as per US time bound programme and let the parliament be dissolved and go for general elections and prior to that declare the Sixth (VI) Pay commission report. Even Sonia Gandhi has given go ahead for nuclear deal and I to personally want this deal to go through else we will not have any international standing. I would suggest to watch market today.

Buy for June 19

We expect the markets to continue to tank with increase in global crude oil prices. Also, there are strong indications that money is moving more into the commodity markets. This is a good opportunity to buy. Yesterday, Infy fell below 1880. we think its a good buy for today. We expect the prices to fall again today and some opportunity to buy infy. Buy Bharti Airtel Ltd. 844, 850. Sl 820.

Buy for June 18

Markets will see further correction today on global cues. The Sensex might tank to lower 15,000 and it will be a good time to buy some good stocks Buy ABG Shipyard Ltd. at 408, 410, 420. Sl 380. Also if INFY crosses below 1860, it will be a good buy for delivery in next six months. We expect the USD to stabilize in next few 6 months and software companies will see some greater profits.

Buy for June 17

Buy Plethico Pharmaceuticals Ltd. 379, 390,400. Sl 350.

TCS

June 16th If market runs positive for 2 days then Bull run will start again . Quick profit making tip for June 16th Buy TCS >910.1, 927,945 Stop Loss 903

Crammer said: Its new buy rally on NYSE and we are with him

Cramer usually scoffs at technical analysis and its accompanying stocks charts. In fact, he likened the practice to astrology during this week’s Game Plan. He just can’t get with the idea that because some graph says a stock will drop, it will, so do the analysts at stockpm concur. We usually despise technical analyst, cause their are not fundamental behind those kinds of analysis, but that discussion is for some other day. But admittedly there is one tool of technical analysis that hasn’t failed Cramer, he said, since 1987. The Standard & Poor’s Oscillator. It measures the amount of stock buying relative to selling in the market. When the buying and selling are about the same, the oscillator reads zero. Multiple days of buying, though, push the oscillator up. It signals that stocks are out of equilibrium. Over the past three years, any time the oscillator hit +5 it’s been a sign that profits should be taken, because some kind of decline is inevitable. The reverse is also true. Ov

Reliance Industries Vs Reliance Natural resources (RNRL)

The restraint on Reliance Industries to sell natural gas from its eastern offshore KG-D6 field to third parties will continue till July 22, after the Bombay High Court today ordered status quo to be maintained in the case filed by Anil Ambani Group firm RNRL. A Bombay High Court division bench fixed July 22 as the next date of hearing in the dispute over implementation of a gas supply agreement between Mukesh Ambani-led Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL). The court had previously asked RIL not to enter into contracts to sell KG-D6 gas with companies other than RNRL and state-run NTPC and asked the two brothers to settle the dispute within four months. But the two sides failed to reach an agreement within the stipulated timeframe. At the hearing today, RIL counsel Harish Salve argued that the earlier interim order, restraining RIL from selling gas to third party, had lapsed. He said that RIL would start gas production from KG-D6 by end of July, and r

BHEL INDIA CEMENT & ORCHID CHEMICALS

Intraday Tip for June 13 Buy BHEL >1515.1,1554,1577,1644 sl 1508.8 Buy India cement >164.5,167,171 sl 159.8 Buy Orchid Chemicals>255.1,259,265 sl 252.8.

Buy For June 12th 2008

Buy Bharat Heavy Electricals Ltd. 1480, 1490, 1495. Sl 1420.

Nifty Hit rock Bottom 2008

The Indian markets opened gap down flowing weak global cues and continued to seek lower levels on sustained selling pressure. The Nifty has hit a new 2008 low. The Realty, Bank & Capital Goods Index are at new 2008 lows. On Friday the Dow dropped 3% clocking the eight-largest point drop in the index's history after crude hit a high of USD 139.12 a barrel during the day. The Asian markets have also opened about 2% lower today. Presently the Sensex and Nifty are down by 700 points at 14,872 and the Nifty down by 205 points at 4,422, respectively. The NSE advance: decline ratio stood at 46:1168. All indices are trading in the red. BSE Realty Index was down 8.4% at 5,687.73, Power down 5.5% at 2,551.38, Bankex down 5% at 6,904.42, Oil & Gas down 4.8% at 9,525.59, Capital Goods down 4.6% at 11,475.67. The BSE Midcap and Small Cap are down nearly around 5% each. Sid Khanna, Chairman and Managing Director of India Equity Partners said, "I am not particularly surprised; this i

CAIRN, INFOSYS & DR REDDY

Buy for June 10th 2008 Buy CAIRN >301.1,305,308,310 sl 298.7 SELL Infosys <1879.5,1869,1836 sl 1887.1 Buy Dr Reddy >714.5,717,734 sl 706 .

Indian Real Estate Part 2

This is continuation of Indian Real estate posted on April 30 2008 ( Indian Real Estate Part 1 ). The latest data shows the median US home price is $200,000. This is about Rs. 84 lakhs. Note that these US homes are independent houses, not apartments and the surrounding infrastructure is excellent (roads, power, water). Now compare this with the inflated apartment prices here, with no roads, water or power and tell me, who will buy apartments here?Secondly the present GDP growth in India may be around 8% and the retail (not WPI) inflation may be 12% (just wait till the high diesel prices seep through the economy). This means that far from growing the Indian economy is SHRINKING (GDP -Inflation).Now analyse this economy and the real estate prices based on this and draw your own conclusions.Cheers!.

Indian Oil Corporation

Indian Oil Corporation (IOC) calculates inter alia the landed import duty paid price of petrol and diesel every fortnight. This calculation is based on a formula that is linked to international prices. IOC’s landed price of petrol in Mumbai for the second fortnight of May was, for instance, Rs 38.1 per litre and for diesel Rs 48.8 per litre. The marketing companies had to, in other words, pay this amount to the refiners to buy the products. Next, the Central government imposes an excise and educational cess on the purchase cost. In May, this was Rs 14.4 per litre and Rs 0.4 per litre for petrol and Rs 4.6 per litre and Rs 0.1 per litre for diesel respectively. The total cash required by the marketing companies to purchase petrol and diesel in May was, therefore, Rs 52.9 per litre for petrol and Rs 53.6 per litre for diesel. The companies then sell these products at the ministry of petroleum mandated price of Rs 49.7 per litre for petrol and Rs 35.6 per litre for diesel (Mumbai prices)

Dr Reddy, Reliance Capital, Chambal Fertilisers & Power Grid Corporation

Buy for June 6th 2008 Buy Dr Reddy>710.2,717,734 Stop Loss 706 Buy Reliance capital>1167,1198,1242 Stop Loss 1159 Buy Chambal fertilisers>83.5,85,87 Stop Loss 82 Buy Power Grid>90.1,91,95 sl 89 (stock can be accumulated). .

Buy for Jun 5 2008

Buy Tata Power 1170, 1180, 1190. Sl 1000. This stock is trading at midpoint of its 52 week high and low. The market will continue to see corrections with hike in fuel price and also with fall of Rupee compared to US dollar. The power stocks are falling and so are relatively cheaper now. The market will continue to limp for next couple of months. We will continue to rate few good companies that we think are good buys. Buy and hold Tata power for at least 4 to 6 months. We will post another rating in few months.

Buy for Jun 4 2008

Buy Reliance Communications Ltd. 555,560,575. Stop loss 535.

Sujana Towers, Ruchi Soya & Bharti Shipyard

Analysis of Sujana Towers, Ruchi Soya & Bharti Shipyard Sujana Towers Sujana Towers is the manufacturer of power transmission and telecom towers. It also undertakes heavy structural works for railway electrification, which has got good demand and potential. All the three sectors, which it is catering to, have been seeing very strong demand and this could lead to significant growth for the company in the future. At the current market price of around Rs 115, this stock is quoting at only nine times FY08 earnings of Rs 13 per share. This stock should achieve a target price of Rs 200 in about 9-12 months time. Ruchi Soya Ruchi Soya is the flagship of the Ruchi Group. It is one of the largest agri-business companies in India. It crushes about 25% of the total soya crop in India and is scouting for palm cultivation in Malaysia and Indonesia. Agriculture as a . sector looks very promising in the long run. This stock is also currently trading at around 10 times FY09 earnings and 7.5 time

Polaris Software & Orchid Chemicals

Buy for June 3rd 2008. Buy Polaris software >102.55,108 sl 99.5 Buy orchid chemicals >251.5,257 sl 248.8.

Buy for Jun 2 2008

Buy Bajaj Electricals Ltd. 460, 470, 475. Stop loss 440.