Gain , profit bookings : Weekly news letter and short term ideas.

>> Sunday, May 31, 2009

Again the week was good. A woofing 200 points upside on NIFTY.

What we saw last week?
Good global cues.
Moderate Q4 results.
Inflation unchanged.
Good GDP.
Rupee Gaining strength.
Gold back on 15k levels.
Increase in average Indian Salary.
Biggest monthly in in 17 years

Sectors to watch :

  • IT - Rupee and dollar movements make this sector week as rupee is gaining strength on dollar.
  • Pharma - A positive one.
  • Fertilizer - Monsoon is over head.
Stock to watch out for :
  • Rajesh Export : (44.55) Buy above 45.20 for targets of 47 and 50. SL of 42.10
  • Airtel : (819.65) Buy above 835 for targets of 860 and 880. SL of 820
  • HCC: (117.30) Buy above 118 for targets of 123 and 128. SL of 115
Recent Stock research reports.
M&M
Apollo Tyres.

NIFTY Weekly technical analysis.

Read the full post...

Q4 results make M&M a short term buy.

Stock - Mahindra & Mahindra Ltd.
CMP - 675.00
BSE Code - 500520
52 Week H/L - 700 - 235.50

Summary: Last week the company announced its quarterly results. The results were profits surges 89% jump in its net profit at Rs 418.07 crore for the quarter ended March 31, 2009.
Net profit of the company year ago was 221.10 crore in the March quarter of FY'08.
The total income increased 17.02 per cent at Rs 3,715.88 crore during the quarter as against Rs 3,175.45 crore in the corresponding period the previous fiscal.
M&M had merged Punjab Tractors Ltd with itself and the consolidated figures of the firm include the profits of PTL (Punjab tractor Ltd.)


The Dividend Trail : The board has declared a dividend of 100 per cent at the rate of Rs 10 a piece, on shares of the face value of Rs 10 each, for the financial year ended March 31, 2009.

Why is M&M a short term buy ?
When Auto makers in US an Japan are struggling to survive this Indian brand which manufactures Tractors and various other SUV has managed to become a out performer during the time of crisis.

It made a new 52 weeks high of 700 on this Friday. The trend is basically positive for this stock.
Buying the stock at current levels for targets of 740 - 750 within a month.

Long term investors should rather buy this stock at lower levels.


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NIFTY Technical Analysis : Weekly Show !

The UPA victory changed the phase of the markets and it also changed peoples conception towards markets.
Turnover has increased in the markets.
FII's have turned net buyers over a period of time.
NIFTY Looks over brought. But the trend remains positive.

Last week we saw NIFTY zooming up.
Last week NIFTY closed at 4238 and this week at 4448.85 a major gain again.
FII's participation was excellent.
NIFTY TRIN at 0.24
NIFTY Range - Between 4210 to 4645

Current Spot - 4448.85
Support - 4340 and 4210
Resistance - 4575 and 4635
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

NIFTY Targets on the upside for short term - 4525 and 4670

Chart :



NIFTY Chart in the month of May basically indicates uptrend.

NIFTY Auto generated Technical analysis.

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Companies on the Indian Stock Markets which are debt free and or less on debt

>> Saturday, May 30, 2009

Here is a list of some debt free companies and companies with less debt :

  1. NMDC Ltd.
  2. Infosys Technology Ltd.
  3. Sun TV Ltd.
  4. Balaji Telefilms Ltd.
  5. Siemens Health care Ltd.
  6. Jindal Photo Ltd.
These stocks can prove to be multibaggers of long term as these companies are less and even with zero debt.
Any one who has a outlook on any of these companies may comment.

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Tata Motors Q4 net up 10% at Rs 591 cr

May 29 Tata Motors has reported a 10 per cent growth in net profit at Rs 591 crore for the quarter ending March 31, 2009 as against Rs 536 crore in the corresponding period last year. Net income dropped 21 per cent to Rs 6,895 crore (Rs 8,750 crore).

Net profit for the fiscal fell 51 per cent to Rs 1,001.26 crore (Rs 2,028.92 crore) while revenue was down 11 per cent to Rs 25,660.79 crore (Rs 28,739.41 crore).

High input costs and interest rates in the first half of the fiscal coupled with tight liquidity and low consumer sentiments in the latter half impacted margins, said Mr C. Ramakrishnan, Chief Financial Officer, at a press conference here on Friday. Tata Motors’ overall vehicle sales dropped 13 per cent to 5.06 lakh units (5.85 lakh units).


The company, however, improved its performance from the third quarter ending December 2008 when it reported a Rs 262-crore loss. “The October-December quarter was bad but each successive month turned out to be better. Barring heavy commercial vehicles, all segments have sprung back,” said Mr Ravi Kant, Managing Director, Tata Motors.

Capex cut

Mr Ramakrishnan said the company would go in for a substantial capital expenditure cut in the medium term. “Given our wide product portfolio, we have a capex plan of Rs 10,000 crore for 2-3 years. We are planning a cutback of about Rs 2,500 crore. Our product development plan will go on and the cutback will mainly be in capacity expansion,” he added.

The capex last fiscal was around Rs 4,000 crore and is expected to be in the range of Rs 3,000-3,500 crore in the next couple of years. Besides this, Tata Motors plans a cost reduction of Rs 1,000 crore for the next three years.

The board has recommended a dividend of Rs 6 on ordinary share and Rs 6.50 on “A” share. The company’s shares closed 1.20 per cent up on the NSE at Rs 336.85.

New MD

Mr Prakash M. Telang (61) is the new Managing Director of Tata Motors. He takes over from Mr Ravi Kant who steps down on June 1. Mr Kant will, however, continue as non-executive Vice-Chairman.

Source - Hindu Business Line.

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Biggest monthly gain in 17 years

Equity benchmarks ended at an eight-month high on Friday, as the better-than-expected economic data for the previous quarter led investors to believe that the worst may be over.

Oil minister Murli Deora’s comments that the government may consider deregulation of retail fuel prices also boosted sentiment.

BSE’ 30-share Sensex closed at 14625.25, up 329.24 points, or 2.3%, enabling the index to post its highest monthly gain (28%) since 1992 and the third-highest ever.

NSE’s 50-share Nifty ended at 4448.95, up 111.85 points, or 2.58%. The bull domination extended to the broader market, with gainers thrashing losers 2147:649 on BSE.

On Friday, foreign institutions net bought Indian shares worth Rs 272.77 crore while their domestic counterparts were buyers worth Rs 873 crore, according to provisional NSE data.
Source : Economic Times

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India's Q4 GDP at 5.8 per cent

>> Friday, May 29, 2009

India's economy grew a faster than expected 5.8 percent in the March quarter from a year earlier, as a still strong services sector offset a decline in manufacturing.

The annual growth for India's fiscal fourth quarter was above a median forecast of 5.2 percent in a Reuters poll, but sharply lower than the year-ago quarter's 8.6 percent expansion.

The manufacturing sector contracted 1.4 percent in the January-March quarter from a year earlier, while farm output grew an annual 2.7 percent, government data showed on Friday.

For the full year, India's economy grew 6.7 percent in 2008/09, sharply slower than the 9.0 or more in the previous three years. The FY09 projection was 7.1%

Farm sector growth has been revised to 1.6% vs 2.6% earlier.
Source - Economic Times

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FNO Expiry gave profits yesterday - State of Markets Today (29th May)

"Intraday Tips and Market outlook for 29th May."
US markets ended higher.
Europe ended flat.
Asia is trading mixed.
Expect the Indian markets to open flat to positive
The support for the Sensex is 13950 and the resistance to the up move is at 14500
Nifty: (4337) the support for the Nifty is at 4285 and the resistance to the up move is at 4390

Day Trading Ideas :

HCC
Buy above 109 for targets of 112 and 114 keep a SL of 106.45
Sell below 105 for targets of 103 and 101.50 keep a Sl of 106

TCS : Buy above 653 for targets of 661 and 668 keep a SL of 648

Unitech : Buy above 77.20 for targets of 78.50 and 79.20 keep a SL of 76.25

Happy Investing !

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Stocks not expensive yet : Jhunjhunwala

>> Thursday, May 28, 2009

Maverick investor Rakesh Jhunjhunwala believes bold reforms such as opening up the country's insurance and pensions to foreigners will becritical to quell concerns about the market being pricey and sustain a stock market rally.

Expectations for economic reforms in India have gathered momentum after the ruling coalition was re-elected with more seats in parliament nearly two weeks ago.

"Insurance, pension reforms are going to be extremely important for the stock market because the kind of money we'll get from that is unbelievable," Jhunjhunwala, dubbed by the media as India's Warren Buffett, told Reuters in an interview.

The main stock index, which has jumped 16 percent since the election victory, taking gains to three-quarters from a 2009 low in early March, could rise another 10 percent to 15,500 by the end of December, he said.

"It is very much contingent on factors. One is how things pan out internationally and the second is how well the government meets expectations," he said, sitting in his plush 15th-floor office overlooking Mumbai's financial district.

"If both turn into favour, then I don't think valuations are expensive," he said, adding 12,500 would be the base for the index.

Jhunjhunwala, who started more than two decades ago with about $100 and whose wealth was pegged at $1 billion last year by Forbes magazine, said infrastructure-related sectors, banking and retail could prosper with a stable government in office.

Entertainment could also prove to be a growth area, while drugmakers offered good opportunity.

"I think the Indian cost benefit and research benefit is extremely high. I am very bullish on the sector," he said, referring to pharmaceuticals.

He was wary on the outsourcing sector amid the U.S. recession and weak dollar, but said it was important for India's economy.

"If software exports grow 10 to 15 percent and commodity prices hold at these levels or slightly below, I see no reason why India will not grow 10 to 11 percent in two years," said Jhunjhunwala, a heavy smoker who relishes Blue Label whiskey.

He also said the proposed merger between leading Indian mobile operator Bharti Airtel and South Africa's MTN would add value to shareholders of the two firms.

Bharti's balance sheet and cash flow showed that its interest cover was good and the deal posed minimum risk to the company, which is planning to raise about $4 billion in debt, he said.

The father of a five-year-old girl and 2-1/2-month-old twin boys, Jhunjhunwala also trades in commodities, debt and currency but his biggest exposure is in stocks and his office features a painting of the Bombay Stock Exchange.

"I have far less than what people think, but far more than I need," the bespectacled investor said. - From : Economic Times

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Buy HDIL; target of Rs 365: PINC Research

PINC Research has recommended a buy rating on Housing Development and Infrastructure, (HDIL) with a price target of Rs 365 in its report dated May 25, 2009.

"Housing Development & Infrastructure Ltd's (HDIL) Q4FY09 results were below our expectations. Its revenues declined 63.3% YoY to Rs 3.6 billion owing to a slowdown in the Mumbai property market. OPM for the period dipped by 3,158bps YoY to 57% owing to higher cost of construction & development (38% of net sales) incurred towards ongoing projects. Despite other income of Rs 309 million, net profits dropped by 91.3% YoY to Rs 619 million impacted by interest cost of Rs 1.4 billion."

"We have estimated the NAV of HDIL's projects (ongoing & proposed), including the SEZ land at Vasai/Virar at Rs 338/share. The airport project is expected to add another Rs 150/share, taking the company's total NAV to Rs 487/share. Considering an up-tick in buyers' response to its new offerings, infusion of equity, easing interest & debt repayment woes and an expected revival in the TDR market over the next few months, we upgrade our recommendation to 'BUY' on the stock, target Rs 365," says PINC's research report.
Source - Money Control

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Five Multibagger stocks which cannot be missed

If you go to see the current stock market rally the stocks which were down over 60 to 70% were the maximum gainers in the last 2-3 weeks.
We didnt by them we have missed the opportunity. But one thing to remember is "Every thing which has gone up has to come down again".
Few stocks which have further upside after they bottom out are :

  • HDIL : One construction giant.
  • HCC : Another construction giant.
  • DLF : Our Construction biggy.
  • Marksans Pharma: A penny stock to rock.
  • Apollo Tyres.
I will give a detailed analysis on all the above stocks. Keep a track.

Happy Investing!

Next post: Zero Debt companies on BSE and NSE.

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Profits yesterday ! What about Today ?

Intraday Tips and Market Outlook for 28th May.
US markets ended lower yesterday.
Europe ended flat.
Asia is trading flat.
Expect Indian Markets to open flat to negative.
The support for the Sensex is 13950 and the resistance to the up move is at 14500
Nifty: (4276) the support for the Nifty is at 4200 and the resistance to the up move is at 4390

Trading Tips :

Look out for stocks such as LNT, RNRL, Satyam, Unitech and HCC

Read the full post...

Reliance Mutual Fund launches infra fund

>> Wednesday, May 27, 2009

Reliance Anil Dhirubhai Ambani group-controlled Reliance Mutual Fund, today annnounced the launch of its Reliance Infrastructure Fund.

The infrastructure fund, an open-ended fund, will invest predominantly in companies engaged in infrastructure and infrastructure-related sectors in the country, Reliance Capital Asset Management CEO Sundeep Sikka told reporters here.

The primary investment objective of the fund will be to generate long-term capital appreciation. It will invest in equity and equity-related instruments of companies engaged in infrastructure and infrastructure-related sectors like transport, banks and financial institutions, energy, power and oil, metals and minerals, telecom and urban infrastructure amongst others.

"Infrastructure is a key priority for India and we hope a spurt of infrastructure spending in the economy on the back of a stable Government and ease of project financing," Sikka said.

The right time is now to invest in infrastructure and infrastructure-related firms, a sector which is likely to get a boost from the new government, he said.

"The valuations look more attractive and the environment stable with the new government settling in. This makes it the right time to launch an infastructure fund more than ever," Sikka said.

The new fund offers two plans-Retail and Institutional. Each plan has a growth and dividend plan option.

The fund will invest at least 65 per cent of its assets in engineering, cement and power stocks as well as banks, whereas the rest will be invested in debt and money markets.

"We expect investors in large numbers to participate in the ever-growing sector with long-term capital appreciation," Sikka said.

Reliance MF saw no meaningful redemptions in the last one year and is very optimistic on global flows into India.

The fund-house is currently avoiding sectors that can be hurt by a rupee rise.It was currently overweight on the textile and pharmaceutical sectors and underweight on the information technology sector.

The fund-house is keen to buy shares of PSUs when their disinvestment takes place and if valuations are good, a Reliance Mutual Fund official said on condition of anonymity.

Reliance Mutual Fund is managing a corpus of over Rs 88,388 crore for over 71-lakh investors as on April 2009.
Source : Business Standard

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Market tips and Predection for 27th May.

Yesterday we saw Indian Markets witnessing profit booking because of which we ended in deep red.
US markets ended positive.
Europe also ended positive.
Asia is trading positive.
Expect the Indian Markets to have a gap up opening.
The support for the Sensex is 13278-12889 and the resistance to the up move is at 13820
Nifty: (4117) the support for the Nifty is at 4022-3907 and the resistance to the up move is at 4205

Day Trading Ideas :

IFCI Buy above 45.80 for targets of 46.50 and 47.25 with SL of 43.

HDIL Buy above 268 for targets of 274 and 278 with SL of 260.

LNT Buy above 1261 for targets of 1270 and 1728 with SL of 1249

Happy Investing !

Give feed Back about Indian Money Plus at indianmoneyplus [at] gmail [dot] com

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Bharti and MTN open talks of merger again.

>> Tuesday, May 26, 2009

Bharti Airtel India’s leading telecom service provider today in its press release said that it has renewed its effort to acquire 49% stake in MTN. The deal is suppose to be of woofing 23 Billion $.

The deal being pursued, could potentially create a telco that will rank in the top 5 globally, with more than 200 million customers and $20 billion in annual revenues.

Bharti Airtel will buy a 49% shareholding in MTN. MTN and its shareholders will acquire a 36% economic interest in Bharti, of which 25% will be held by MTN and 11% by MTN shareholders.

Bharti and MTN have agreed to discuss the potential transaction until July 31 , 2009.

Read the full post...

India set to have 1 bn mobile users by 2014

One of the most important reasons for Bharti to emerge as a frontrunner for equity stake in MTN is its leadership position in India projected to be the world’s ranking telecom market in just a few years.

DoT, in a first ever forecast of mobile penetration across India for the next six years, has projected a billion mobile phones by 2014. This forecast is part of a spectrum committee report prepared by the DoT that is expected to be made public after the new telecom minister takes office.

It is well established that India has had one of the most remarkable growths in mobile phones since the sector was first opened to private investment in 1994. From two operators in each circle in 1995 the country now has 12 to 13 operators. Of these, about six to seven are fully functional, offering the Indian consumer unprecedented choice and low tariffs.

India has also been breaking all types of records on new subscriber additions in the last two years by adding up to 8 to 10 million phones a month, sometimes more. The latest report of the DoT put together by its committee shows that India will reach the half a billion mobile mark by 2010 and within four years reach 1 billion mobile subscribers.

In 2014, India’s population is expected to be 1.26 billion, with mobile penetration of 1.01 billion the mobile teledensity would be 80% above. It would mean 8 out of every 10 Indians will have access to a mobile device.

This probably reflects the world’s largest new growth opportunity over the next five years, surpassing China’s potential. China is already at nearly 700 million mobile phones as compared to India’s 400 million. The fact that India will add more than 600 million new subscribers must rate as the biggest subscriber adds for any country in the world.

Some of the imperatives to reach this figure would include redefining spectrum allocation and pricing policies, early 3G auctions, and reviewing the M&A norms.

It is clear that no country in the world can sustain a fragmented telecom market of 12 to 13 players per circle. In the end, the market will have to consolidate to between three to four national players and two or three regional players with an average subscriber base of approximately 150 million each by 2014.

Source - Economic Times.

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Rupee may climb to 46 a dollar in 12 months

The Indian rupee is likely to appreciate to 46 a dollar in the backdrop of a stable government at the centre and relatively resilient domestic demand, says a report by global financial services giant Goldman Sachs.

"We expect the INR to appreciate further from current levels as the stable government and relatively resilient domestic demand become key catalysts for foreign inflows," the report said, adding that the Indian currency "may touch Rs 46 to a dollar within 12 months."

Noting that there are significant pressures for rupee appreciation, the report said that the Indian currency gained about 5 per cent against dollar since the victory for the Congress-led UPA in the general elections.

With the rupee strengthening, it said the sectors dependent on imports will gain, the exports will be hit.

"Oil distribution, fertiliser and capital goods companies are amongst the largest importers and are likely to benefit from a stronger INR. On the other hand, IT, textiles, pharmaceutical, and export-oriented oil refining are likely to be hit by a strong INR," the report added.

Having appreciated during the last six trading sessions, rupee on Monday declined by 22 paise to 47.32 a dollar in early trade on expectations of fresh capital outflow by foreign funds.

Source - Rediff.com

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US Markets Update, What's coming this week?

U.S Markets were closed on Monday, May 24th 2009, on account of Memorial Day. Due to the upcoming long weekend, markets saw low volumes last week and ended the uncertain week lower, with both Dow and S&P500 reporting weekly losses. Markets were weak also due to fresh warnings that S&P may downgrade the credit rating of U.S and U.K



Dow ended at 8277 down 5.69% for the week.



S&P500 ended at 887 down 1.8% for the week. 


Nasdaq ended at 1692, only index positive for the week.



This week we may see some initial trouble in world markets due to  North Korea's successful Nuclear Test. Other key economic data coming this week, which may influence the markets are: 


May 26, Tuesday: Consumer Confidence data for April will be released. 


May 27, Wednesday: Existing Home Sales data for April will be released.


May 28, Thursday: New Home Sales data for April will be released. 


May 29, Friday: The revised GDP forecast for Q1 will be released. This data is traditionally known to be a Market Mover. 


Get more latest US Maket news, views and insights at Stockezy.com

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Intraday tips and market outlook for 26th May.

US markets ended flat.
Europe ended mixed.
Asia had opened flat and now is in negative zone.
Expect a flat top gap down opening on the Indian Markets.
The support for the Sensex is 13611 and the resistance to the up move is at 14215-14452 Nifty: (4238) the support for the Nifty is at 4155 and the resistance to the up move is at 4350-4650

Day Trading Ideas :

RNRL - Buy above 83.25 for targets of 84.45 and SL of 82.10

DLF - Buy above 355 for target of 362 and SL of 345

HCC - Buy above 107.45 for targets of 109.10 and SL of 105.25

HDIL - Sell below 289 for targets of 286 and 284 with SL of 293

Happy Investing !

Did you know the recent stock market rally has created 123 Billionaires ?

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Mr. Market Thou Shall not fall!

>> Monday, May 25, 2009

I think this is the 'jittery optimism' with which we start this week. Since May 18th on which we saw a historic 17% move in the markets, the collective belief of the investors has been upbeat and positive for the better future prospects of the stock markets.



 

The enthusiasm received further fuel on market close friday (May 22nd)

when Indian markets dodged a regional slide in Asia-Pacific markets, and ended the week with 14% gains.



 

While US and UK markets debated consequences of a rating cut by S&P500, Indian markets celebrated the commencement of Prime Minister Manmohan Singh's second term. I feel in the market there is this insecure and almost desperate need to believe that the worst is over! Trying to separate myself from this euphoria, I started looking at how certain stocks have performed during the past 3 months.


 

 

The results were quite unbelievable. As of Friday May 22nd:



Sensex has recorded 1 month gain of 34% and 3 month gain of 40% .

Nifty 30% in 1 month, 40% in 3 months.



 

Looking at the above numbers you will realize that the market has moved much higher and suddenly the stocks have become too expensive to accumulate. To emphasize my point further, I have summarized the 5 day, 1 month and 3 month performance of seven of my most favorite stocks.

 



Take a look, again data as of May 22nd 2009:

 



LNT up 50% in 1 month, up 100% in 3 months


BHEL up 22% in 1 month, up 45% in 3 months


REL up 23% in 1 month, up 74% in 3 months


SBI up 36% in 1 month, up 65% in 3 months


HDFC up 25% in 1 month, up 57% in 3 months


ICICI up 65% in 1 month, up 109% in 3 months


BHARTI up 21% in 1 month, up 33% in 3 months



 

The above data gives us confirmation of the fact that markets have moved out of the lows seen in Jan-Mar, but also poses the question, is this right time to hold back or continue to buy?

 


For me the bigger risk of political instability, credit crisis have abated, I have renewed hope in the new government to pursue policy implementation, but are these enough? Do we have the economic driver to take the markets higher or have we moved too high too fast. 

 



I am not sure of the answer. Let me know what you think. 



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Intraday tips and market outlook for 25th May.

US markets ended flat.
Europe ended positive.
Asia has opened mixed.
Expect the Indian markets to open flat to positive.
The support for the Sensex is 13611 and the resistance to the up move is at 14215-14452
Nifty: (4239) the support for the Nifty is at 4155 and the resistance to the up move is at 4350-4650


Day Trading Ideas :

SCI
Buy above 131 for targets of 135 and 138 with SL of 127
Sell below 125 for targets of 122 and 119 with SL of 127

HDIL
Buy above 309 for targets of 313 and 317 with SL of 303
Sell below 301 for targets of 296 and 291 with SL of 304

LNT
Buy above 1312 for targets of 1318 and 1329 with SL of 1303
Sell below 1301 for targets of 1290 and 1282 with SL of 1306

Happy Investing!

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Super gains and Further more. (News letter and stock tips for the week)

>> Sunday, May 24, 2009

High gains this week has given a boost to investor's sentiments in a positive way.

What we saw last week -
Firstly high Gains
FII movements. (A positive factor)
Few stocks giving exceptional returns.
Markets didn't go according to global markets.
Rupee gaining strength.

Sectors to look out for -

  • Telecom
  • Oil and gas.
  • Pharma.
  • IT
Stocks to watch out for -
  • RPL (135.95) - Targets of Rs 142 and 146. SL of 129.
  • Adlabs (334.90) - Targets of Rs 345 and 359. SL of 324
  • HCC (101.80) - Targets of 108 and 111. SL of 94
  • DLF (333.95) - Targets of 350 and 365. SL of 324
NIFTY Weekly Technicals.

HAPPY INVESTING !

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NIFTY Weekly technical analysis.

The UPA victory gave a sharp movement in the markets. Couple of upper circuits and the markets were hardly open for 50 seconds on Monday.
Tuesday we saw a record turnover also witnessed by profit booking.
NIFTY Looks over brought. High volatility expected in the markets in the coming week.

Last week we saw NIFTY zooming up.
Last week NIFTY closed at 3671 and this week at 4238 a vary major gain. (In fact the maximum gain ever)
FII's participation was excellent.
NIFTY TRIN at 1.184
NIFTY Range - Between 4050 to 4400

Current Spot - 4238.50

Support - 4150 and 4080
Resistance - 4325 and 4390
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

NIFTY Targets on the upside for short term - 4350 and 4500.

Read the full post...

Stock Analysis - Apollo Tyres.

>> Saturday, May 23, 2009

Scrip - Apollo Tyres Ltd.
CMP - Rs 29.55
BSE Code - 500877
Market Cap - 1489.32 Crores.

Introduction:
Apollo Tyres Ltd. (ATD) is engaged in the global tire industry. It launched Regal brand of radials for truck and bus commercial vehicles. Its products include truck/bus radial, Off-The-Road (OTR) tires, retreading and allied automotive services. It EnduRace, a truck-bus radial is undergoing road tests. Its light truck product range includes LT3+ and SP Endura. ATD’s retreaded tire, Apollo DuraTyre was launched in May 2007. As of March 31, 2008, the Company had launched its two retail stores: National Tyres in Patiala, Punjab and Lal Tyre Centre, Chennai, Tamil Nadu.

Snap Shot of the Key Business :
The company is engaged in production of tyres from rubber.
It is from Tyre and Tubes Industry. Its key competitors are JK Tyres, MRF , Etc.

Key Financial :
Net Profit if compared to March 08 and March 09.
Sept 2008 - 918.87 Cr.
March 2009 - 1110.56 Cr.


The financial are looking strong as Turn over and net profit is always increasing.

Key Risks:
The rubber has been volatile since past 4-5 months. There has been a 20% increase in the price of rubber. This has lead to increase in the rice of Raw Material as the inventory stored is of maximum of 7 days or so.
Rubber is the basic component in the manufacture of tyres so increase in the price of rubber = less of profits.

Vredestein Banden:
Recently the company acquired a Dutch Company Vredestein Banden , which can result in the company to increase its profits and way to global expansion.The deal is expected to be for a consideration of around $300 million.
Vredestein is a premium tier I tyre manufacturer with a portfolio of high-end, high speed rated passenger car tyres going up to a speed of 300 kilometers per hour.

Best price to buy Apollo Tyres:
Due to current stock market political rise the stock rose fro 14 levels to 28 levels. So technically speaking the support of the stock 22 is the best price to buy this stock.

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Manmohan Singh takes oath for second term

>> Friday, May 22, 2009

Dr Manmohan Singh was sworn-in on Friday as Prime Minister for a second successive term after his coalition United Progressive Alliance (UPA) won a decisive victory in the general elections.

Dr Singh has named 19 members to his new cabinet, many of whom are colleagues in his congress party.

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Inflation rises to 0.61% on higher food prices

New Delhi, May 21 Inflation edged up in early May on account of higher food prices, but held near a three-decade low, giving more freedom to the RBI to take steps to support a slowing economy.

The annual Wholesale Price Index-based inflation rose 0.61 per cent during the week ended May 9, higher than 0.48 per cent during the previous week. The increase in headline inflation was primarily on account of food articles, with year-on-year inflation in items such as vegetables (21 per cent), cereals (12 per cent) and pulses (15 per cent) continuing to remain in double digits.

Wholesale prices may exhibit a declining trend for a few weeks in the coming months, though that does not mean India is in the grip of deflation, the RBI Governor, Mr D. Subbarao, had said last week.

Headline inflation has held below 1 per cent for two months, after reaching a 16-year high of 12.91 per cent last August.

Source - The Hindu Business Line.

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Rupee trims gains after reaching 2009 high

The rupee rose past 47 per dollar to a five-month high on Friday before trimming gains on suspected central bank intervention and dollar buying by refiners, but still notched its biggest weekly gain in 13 years.

The partially convertible rupee ended at 47.11/12, after strengthening as far as 46.90, its highest since Dec. 19, and stronger than Thursday's close of 47.37/38.

It rose 4.9 percent over the week, its biggest weekly gain in 13 years according to Reuters data, after the Congress-led coalition's resounding election win raised expectations for economic reforms and greater foreign investment.

The rupee's sharp gains were slowed by dollar buying by state-run banks, suspected to be acting on behalf of the Reserve Bank given the sharp gains seen this week, traders said.

"There was a bit of RBI (central bank) buying, though I think some banks unwinded morning's long rupee positions," a senior trader with a private-sector bank said.

Dealers said crude refiners also bought dollars. Oil, India's biggest import, rose to a six-month high above $62 a barrel this week.

Analysts expect the rupee to strengthen further. The median forecast in a Reuters poll this week was for the rupee to end 2009 at 46.25, helped by foreign inflows.

Foreigners have bought more than $3 billion of local equities so far this month, including $1 billion since the election results. The inflow is a key driver for the rupee.

The BSE Sensex rose 1.1 percent on Friday, taking their gains for the post-election week to 14.1 percent, its biggest weekly rise in 17 years.

One-month offshore non-deliverable forward contracts were quoting at 47.17/27, close to the onshore spot rate.

Source - Economic Times

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Gold rallies further, silver recovers

Gold prices flared up for the third consecutive day on the bullion market here today on persistent buying by stockists on the back of higher global cues.

Silver prices also recovered sharply on renewed industrial demand.

Gold prices held near two-month high above USD 950 an ounce in Europe today, consolidating after the previous session's two per cent rise, as investors bought the metal as a hedge against the weak dollar and financial risk.

Spot gold was quoted at USD 954.10 an ounce as against USD 953.40 an ounce late in New York on Thursday after reaching a high of USD 955.95 an ounce level for the first time since late March.

In the domestic market, standard gold (99.5 purity) rose further by Rs 105 per ten grams to Rs 14,540 from the yesterday's closing of Rs 14,435.

Pure gold (99.9 purity) also hardened by Rs 110 per ten grams to Rs 14,610 from Rs 14,500 previously.

Silver ready (.999 fineness) shot up by Rs 280 per kilo to Rs 22,770 from Rs 22,490.

Source - Economic Time

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Rupee appreciation likely in coming months: TCS CFO

Software firm Tata Consultancy Services on Friday said further strengthening of rupee against the US dollar is a possibility in the
months ahead, but the topline of the company will not be affected unless it appreciates to 42-43 level.

"Over a period, a rupee appreciation is a possibility...unless the rupee slides back to the 42-43 range, it is not going to affect the topline," TCS Chief Financial Officer S Mahalingam said at a financial meet here today.

TCS will continue to play aggressive in the domestic market and has the requisite set of skills to execute complex projects, he said, adding the company would continue to hire in its on-shore division.

TCS' revenue hedging outstanding roughly stands at $600-million, out of which $399-million is for the current year. "Out of this $399-million, we have already used $100-million this year," he said.

The company has not taken any additional hedging positions this year and will look at the option after evaluating the risk-management policy, he said.

Source - Economic Times.

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Moneyvidya.com weekly market update

This week is one which will be remembered for the breaking of two records in as many days as the markets reacted with exchuberance to the ending of weeks of political uncertainty. 

The weeked announcement of the Lok Sabha election results caught most people totally off guard by returning a far more stable UPA government than had been previously anticipated by political or market analysts. As a result money poured into the markets as soon as they opened and before lunchtime on Monday the second upper circuit breaker had been breached for the first time and trading was suspended for the day after a 17% rise in both the benchmark indices. 

 
Tuesday then saw another record broken as the cash segment witnessed the highest single day trading volumes since the exchanges opened. The pattern of the day saw FIIs buying heavily (net $1bn) while domestic funds booked profits with slightly more enthusiasm, resulting in a very minor downward correction following a day of huge volumes and volatility.
 
The remainder of the week was characterised by new money flowing into the markets being offset by large scale liquidations as investors booked profits. Declines on Wednesday and Thursday were followed by a a modest rally on Friday, led by infrastucture and banking stocks. The net effect of the dramatic week’s trading was that by close of play on Friday the Sensex stood at 13,887 up over 1,700 points or 14.4%. The Nifty ended the week on 4,232 after gaining 561 points or 15.2%.
 
Where the markets go from here is a big unknown as the election results was so unanticipated that the market seems to be still catching its breath. 
 
The medium term prospects will of course depend on the budget and reform program which the new government announces, as well as global market developments. In the short term however there is a certain degree of concern (and rightly so) regarding whether current valuations are sustainable. On a P/E basis Indian markets are now more expensive than any of the other BRIC economies and this culd cause a temporary drying up of FII interest.  Some analysts are already calling the top of the recent rally and while this may be premature there is certainly significant downside risk for the coming weeks.

Post originally published on moneyvidya.com

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Intraday Tips and Market outlook for 21st May.

>> Thursday, May 21, 2009

US markets ended lower.
Europe ended mixed.
Asia is trading negative.
Expect the Indian Markets to open flat to positive.
The support for the Sensex is 13800 and the resistance to the up move is at 14452-16046
Nifty: (4270) the support for the Nifty is at 4150 and the resistance to the up move is at 4650-4775


Day Trading Ideas -

HCC
Buy above 102 for targets of 108 and 112. SL 98
Sell below 94 for targets of 89 and 86. SL of 98

RNRL
Buy above 77 for targets of 79 and 82. SL of 75
Sell below 72 for targets of 70 and 68/ SL of 74

IFCI
Buy above 44 for targets of 45 and 46.50
Sell below 42 for targets of 41.10 and 40.25

Happy Investing!

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Intraday tips and Market outlook for 20th May.

>> Wednesday, May 20, 2009

US markets ended mixed.
Europe markets ended higher.
Asia is trading mixed.
Expect Indian Markets to open flat to positive.
The support for the Sensex is 13800 and the resistance to the up move is at 14452-16046
Nifty: (4318) the support for the Nifty is at 4150 and the resistance to the up move is at 4650-4775
NIFTY is highly over brought so be careful.

Day Trading Ideas -

HDIL
Buy above 290 for targets of 298 and 305. SL of 282
Sell below 274 for targets of 269 and 264. SL of 279

DLF
Buy above 394 for targets of 401 and 407. SL of 388
Sell below 374 for targets of 369 and 362. SL of 381

IFCI
Buy above 38.75 for targets of 39.50 and 40.10. SL of 37.25
Sell below 34.50 for targets of 33.90 and 33.10. SL of 35.10

Happy Investing!

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NIFTY , Gain's , UPA and Profit booking.

>> Tuesday, May 19, 2009

Yesterday we saw the Indian Markets moving north. Today we started off in red and later the markets started picking up. Markets were up over 600 points on BSE before it witnessed profit booking ending up in red.

Volatility was very high.
The total turnover was remarkable. Over 1.4 lakh crores.

NIFTY Overall mode is Bullish.
NIFTY Trin at 0.65

NIFTY logy -
Current Spot - 4318.45
Support - 4150 and 4020
Resistance - 4490 and 4580

If you think you are good at writing articles on Stock Markets you can publish your articles at http://finance.squamble.com
You can register Here.

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Profits from IndianMoneyPlus.Com's Receomendations.

My research have given a huge return over a period of time.

Here is a snap shot of it -

Hercules Hoists Ltd. recomended on 27th March at Rs 87 and now CMP of 148.35 in less than two months.

Nestlay India Ltd recomended on 8th March at Rs 1417 and now CMP of 1710 in two months.

OnMobile Global Ltd recomended on 7th March at Rs 230 and now CMP of 339 in two months odd.

Praj Industry recomended on 2nd March at Rs 49.50 and now CMP of 88.95 in 2 months odd.

Financial Technology Ltd recomended on 1st March at Rs 423.60 and now CMP of Rs 923 in 2 and a half month.

NTPC recomended on 1st March at Rs 184 now at Rs 205.

Educomp Solution recomended on 23rd feb at Rs 1771 now at Rs 2671.

Rajesh Exports recomended on 14th Feb at Rs 25 now at Rs 31

LNT recomended on 7th Feb at Rs 638 now at Rs 1400

Areva T&D recomended on 7th feb at rs 189 now at Rs 293.


And many more. We will now come up with weekly research report on various stocks. We will try out for 3 research report every week.
Cheers.

Happy Investing.

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Intraday Tips and Market Outlook for 19th May

US markets ended higher.
Europe ended higher.
Asia is trading higher.
Expect Indian Markets to have a gap up opening again. A gap up of 400 points on Sensex.
The support for the Sensex is 13500 and the resistance to the up move is at 14452-16046
Nifty: (4323) the support for the Nifty is at 4000 and the resistance to the up move is at 4305-4650-4775

Day Trading Ideas -

LNT
Buy above 1375 for targets of 1420 and 1500
Sell below 1250 for targets of 1190 and 1110

RNRL
Buy above 72 for targets of 75 and 79
Sell below 65 for targets of 62 and 59

RCom
Buy above 310 for targets of 325 and 355
Sell below 275 for targets of 250 and 230

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Intraday Tips and Market outlook for 18th May

>> Monday, May 18, 2009

US markets ended negative.
Europe ended flat.
Asia has opened negative.
Expect the Indian Markets to open higher. Indian markets may not follow the global cues today.
The support for the Sensex is 12000 and the resistance to the up move is at 12569-12857
Nifty: (3672) the support for the Nifty is at 3600 and the resistance to the up move is at 3800

Day Trading Ideas -

RCom
Buy above 235 for targets of 237 and 241
Sell below 229 for targets of 224 and 222

Adlabs
Buy above 240 for targets of 246 and 252
Sell below 225 for targets of 220 and 216

TCS
Buy above 650 for targets of 656 and 660
Sell below 632 for targets of 629 and 625

RNRL
Buy above 59.10 for targets of 60.15 and 61.25
Sell below 56.30 for targets of 55.80 and 54.25

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Weekly News letter and Stocks to watch out for.

>> Sunday, May 17, 2009

UPA wins election 2009. the markets are ought to cheer.

What we saw last week -
FII movements. (A positive factor)
Profit bookings at higher levels.
Bad IIP data.
Markets giving moderate gains.

Sectors to look out for -

  • Pharma
  • Telecom
  • Oil and gas.
Stocks to watch out for -
  • Aban Offshores - (618.80) Targets of 635 and 662. SL of 556
  • Idea Cellular - (64.95) Targets of 66.10 and 69. SL of 61
  • LNT - (988.15) Targets of 1045 and 1100. SL of 945
  • Unitech -(51.00) Targets of 54 and 57. SL of 48
NIFTY Weekly Technicals.

HAPPY INVESTING !

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NIFTY Weekly Technical Analysis

Basically the win of Congress will surely take the markets up this Monday. It would not be influenced by more of technicals and global markets.

Last week we saw NIFTY was in a range bounded mode.
Last week NIFTY closed at 3620 and this week at 3671 a minor gain.
FII's participation was good.
NIFTY TRIN at 0.748
Over all Nifty is Range Bounded. But bullish for Monday.
NIFTY Range - Between 3500 - 3750.

Monday expect a gap up opening.

Current Spot - 3671.35
Support - 3610 and 3545
Resistance - 3735 and 3795
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Happy Investing

NIFTY Auto generated Technical Analysis.

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Intrady tips and Market outlook for 15th May.

>> Friday, May 15, 2009

US markets ended higher.
Europe also ended in green.
Asia is trading positive.
Expect the Indian markets to open positive.

NIFTY magic levels
Current Spot - 3593.45
Support - 3540 and 3505
Resistance - 3631 and 3687

Day Trading Ideas -

RNRL
Buy above 59 for targets of 60.25 and 61.90
Sell below 55 for targets of 53.50 and 52.10

UCO Bank
Buy above 33.10 for targets of 34.25 and 35.50
Sell below 31.10 for targets of 30.45 and 29.50

IRB Infra
Buy above 112.45 for targets of 114 and 115.90
Sell below 106 for targets of 104.85 and 103.10

Suzlon
Buy above 77 for targets of 78.10 and 79.45
Sell below 74 for targets of 72.10 and 71.05

Happy Investing !

Google has finally unblocked my blog. Thank you guys for your support.

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NIFTYlogy for 15th May.

>> Thursday, May 14, 2009

Today we saw a gap down opening in the Indian Stocks markets due to bad global cues.
NIFTY is all depended on two factors -

  1. Global Cues.
  2. Election results.
Volatility is expected to be high due to forth coming election results on 16th May.

NIFTY TRIN at 1.016

NIFTY magic levels
Current Spot - 3593.45
Support - 3540 and 3505
Resistance - 3631 and 3687

Action - Bearish.

Do not over trade.

NIFTY Auto Generated technicals.

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Market outlook and intraday tips for 14th May.

US markets crack badly is down over 2%.
Europe ended in red.
Asia is trading negative.
Expect Indian Markets to open negative.
The support for the Sensex is 11500 and the resistance to the up move is at 12272-12569-12857
Nifty: (3635) the support for the Nifty is at 3600 and the resistance to the up move is at 3800

Day Trading Ideas -

HDIL
Buy above 181 for targets of 183 and 184.40
Sell below 175 for targets of 173 and 170.45

LNT
Buy above 979 for targets of 986 and 991
Sell below 960 for targets of 955 and 949

IFCI
Buy above 26 for targets of 26.80 and 27.45
Sell below 24 for targets of 23.50 and 22.85

Happy Investing !

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Intraday Tips and Market outlook for 13th of May.

>> Wednesday, May 13, 2009

US markets ended mixed.
Europe ended flat.
Asia is trading mixed.
Expect the Indian markets to have a flat to positive opening.

NIFTY magic levels
Current Spot - 3681.1
Support - 3646.20 and 3610
Resistance - 3704 and 3734

Day trading ideas -

Suzlon
Buy above 81.50 for targets of 83.10 and 84.25
Sell below 76.50 for targets of 75.40 and 74.65

GMR Infra
Buy above 117 for targets of 118 and 119
Sell below 111 for targets of 109 and 108

SBI
Buy above 1306 for targets of 1311 and 1318
Sell below 1280 for targets of 1272 and 1265

RPL
Buy above 122.10 for targets of 123.40 and 124
Sell below 118 for targets of 116 and 114.50

Happy Investing!

Guys please comment on this issue!

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Google has locked my blog as they think it is a spam.

>> Tuesday, May 12, 2009

I opened my blogger account I see a notification saying -

This blog has been locked due to possible Blogger Terms of Service violations. You may not publish new posts until your blog is reviewed and unlocked.

I have requested Google to review it. They will respond to it within two working days.

The blog is just to help individual investor.
It has helped many people in investing over a period of time.

Guys, my sincere request to you all, please comment; and; in this way inform Google that “this blog is not a spam”.
Comment and Say Google that the blog is not a spam!

I have written each and every article for the benefit of people/ my visitors.

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NIFTYlogy for 13th May.

NIFTY gave an excellent gain even after the bad IIP data.
Large caps gave excellent returns.
NIFTY broke the first resistance and rallied towards the second resistance.
Now NIFTY seems to be in a bullish mode.

NIFTY TRIN at 0.446

NIFTY magic levels
Current Spot - 3681.1
Support - 3646.20 and 3610
Resistance - 3704 and 3734

Action - Wait and Watch.

NIFTY Auto generated Technicals.

Happy Investing!

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Intraday Tips and Market outlook for 12th of May.

US markets ended negative.
Europe also ended negative.
Asia has opened in red and is also trading in red.
Expect a gap down opening in Indian Markets.

NIFTY magic levels
Current Spot - 3554.60
Support - 3505 and 3470
Resistance - 3590 and 3645

Day Trading Ideas -

Sesa Goa
Buy above 141 for targets of 145 and 148
Sell below 131 for targets of 128 and 125

HUL
Buy above 228 for targets of 230 and 232
Sell below 221 for targets of 219 and 216

Satyam Computers
Buy above 46.20 for targets of 47.90 and 49.10
Sell below 41.25 for targets of 40.05 and 39.10

RNRL
Buy above 58.10 for targets of 59.25 and 60.10
Sell below 57.25 for targets of 56.50 and 55.90

Happy Investing !

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NIFTYlogy for 12th May

>> Monday, May 11, 2009

We saw today the markets coming down.
I said in my earlier post that we may see a volatile section today.
We saw major Index stocks falling down.
US markets have opened lower. Europe is also trading negative.
So again a volatile day for NIFTY tomorrow.

NIFTY magic levels
Current Spot - 3554.60
Support - 3505 and 3470
Resistance - 3590 and 3645

Over all mode range bounded.
Event to wait for is release of IIP data and Election results this week end.

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Intraday Tips and Market outlook for 11 th of May.

US Markets ended higher.
Europe also ended higher.
Asia is trading flat to negative.
Expect the Indian markets to open in the same manner.
We may have a volatile section.

NIFTY magic levels
Current Spot - 3620.70
Support - 3585 and 3520
Resistance - 3680 and 3745

Day Trading ideas

Aban Offshores
Buy above 468 for targets of 474 and 481
Sell below 432 for targets of 428 and 425

IFCI
Buy above 27.10 for targets of 27.90 and 28.25
Sell below 25.25 for targets of 24.90 and 24.10

Kotak Mahindra Bank
Buy above 441 for targets of 446 and 449
Sell below 428 for targets of 422 and 417

LNT
Buy above 1002 for targets of 1012 and 1028
Sell below 984 for targets of 976 and 968

Happy Investing !

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NIFTYlogy for 11th May.

>> Sunday, May 10, 2009

We saw that NIFTY is in a bullish mode.
NIFTY gave huge returns over nine weeks.
We may see rally on Monday.
We may see a bit volatility.
FII inflow in the last week was tremendous.

NIFTY magic levels
Current Spot - 3620.70
Support - 3585 and 3520
Resistance - 3680 and 3745

Stocks to watch out for in the coming week Click HERE.

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Weekly News letter and stocks to watch out for.

Markets gained yet again for the ninth consecutive week amidst high volatility as aggressive buying was witnessed on the first trading day.
The BSE Sensex breached the 12,000 mark on the back of positive global cues and buying support from FIIs and domestic institutions.

FII Trends are expected to remain positive.

The week ahead, maybe guided by the trends in the international markets at the beginning while back home, the IIP numbers which are expected to be announced in the mid-week could marginally influence the markets.

Volatility is expected to remain high as the results of Elections will be coming on 16th May.

Sectors to look out for -

  • IT (Bearish)
  • Pharma
  • Telecom
  • FMCG
Stocks to watch out for -

RCom - (229.60) Targets of 236 and 241. SL - 222

Unitech - (52.80) Targets of 54.25 and 56.80. SL - 50.25

RPL - (117.30) Targets of 123 and 131. SL - 111

GAIL - (261.05) Targets of 268 and 279. SL - 254

NIFTY Weekly Technicals.

HAPPY INVESTING !

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NIFTY Weekly Technical analysis.

Last week we saw NIFTY was in a bullish mode.
Last week NIFTY closed at 3473 and this week at 3620 a huge gain.
FII's participation was good.
NIFTY TRIN at 1.735
Over all Nifty is Range Bounded.
NIFTY Nature - Between 3400 - 3750.

Waiting till Election results are declared is the best strategy.

Current Spot - 3620.70
Support - 3540 and 3470
Resistance - 3725 and 3805
Reversal from either of these levels would provide the opportunity to initiate fresh short positions. (Resistance)

Nifty scaled the 3600 mark last Monday and went on to close the week above this level. Next medium term target zone for Nifty, if we consider the retracement of the down-move from January 2008 peak, lies between 3800 and 4000. July 2008 trough at 3790 will also be keenly watched as a possible resistance. Close below 3270 is needed to mitigate the positive medium-term view for the index.


Short-term outlook for Nifty is also positive and immediate targets are at 3730 and 3794. Supports for the week would be available at 3560 and 3460. Fresh longs should be avoided on a close below the first support.

Happy Investing!

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NIFTY Rally and Profit Booking.

>> Saturday, May 9, 2009

NIFTY Rallied the whole week but witnessed profit booking section yesterday.
NIFTY mode is expected to be moderate (Range bounded).
Election results on 16th May can also determine these levels.

NIFTY magic levels
Current Spot - 3620.70
Support - 3540 and 3470
Resistance - 3725 and 3805

Over all mode - Range bounded. Signifies wait and watch.
NIFTY TRIN - 1.735

Stock to look out for -
HDIL , DLF and LNT

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