STOCK BUZZ

Buy for Aug 1st Buy Cairn>242.1,247,252 sl 238.8 Buy GMR Infra>97.1,100,103 sl 93.9 Buy BOB>261.3,264,272 sl 256 Buy Siemens>550.1,556,565 sl 546.8 Buy Punj LLyod>271.1,276,281 sl 268.9 Buy Tata chemical>324.1,327,335 sl 319

do you know how long it takes to build a refinery. The Saudis are flush with cash and don’t know what to do with it. Hence they are building stuff that nobody needs. By the time they complete building their refineries, we would have moved beyond the peak oil debate with dwindling Saudi supplies. I would bet on the Bania survival skills over any machinations coming from the middle east.

The Saudis have just declared that they will be building four new, modern large refineries in the next three years. Kuwait has already started building a mega fourth refinery. The Saudis have declared that in future, they will export only petroleum and allied products NOT crude oil, which is logical. So where will he get sufficient crude when these new refineries come up? Venezuela? The freight costs would be too high. Will he build one in Venezuela or Peru? The region is famous for inviting foreign companies and then “nationalizing”, once they are on stream. Hence long term having a refinery with no captive crude supply is simply un viable, similar to having a mega steel plant with no mines for ore.

Though I have never invested in the shares of Reliance Industries, my recently gleaned understanding of the world petroleum scenario has made me respect the company’s vision in its refining projects. As I mentioned once earlier, RIL’s existing refinery, and the one nearing construction, reportedly have unparalleled flexibility to process heavy, high-sulphur (so-called sour) crude, especially that emanating from Iran. This crude sells at a huge discount to other crudes; once it is refined into diesel, though, RIL is able to sell the resultant distillates, especially diesel, into a world market which is thirsty for such products. Most mature consumers, the US especially, have made no investment in refining capacity over the last 2 decades, and strategic thinkers in the petroleum industry go so far as to say that RIL’s investments are changing the pattern of world flows in petroleum and petroleum products. For this reason, I have recently turned from a bear on RIL to a mildly positive neu...

Monday Recap : Bombay dyeing gave a profit of Rs 1680, GMR did not reach the entry price, Selan exploration gave a profit of Rs 1000 and Cairn gave a profit of Rs 550 for every 100 shares traded as per given tip. Buy Bombay Dyeing>665.1,668,678,690 sl 659.8 Buy Cairn>231.1,234,240 sl 228.9 Buy Renuka sugars>128.6,130.55,135 sl 124.9

Buy for July 28th Buy Bombay Dyeing>663.1,668,678,690 sl 658.8 Buy GMR Infrastructure>97.1,99,103 sl 93 (In case it trades above this set up then stock will target Rs 115-120 levels). Buy Selan Exploration>257.1,266,271 sl 254.8

The global economy has been going through a phase of slowdown. Reigning high crude prices, escalating costs and fears of recession have cast a cloud of uncertainty over the IT spends of clients. Given such a backdrop we advise investors to shift their portfolio to large cap IT stocks. Buy Infosys: 1600, 1650, 1675. SL 1400. Wipro: 400, 420, 450. SL 300