IndianMoneyPlus

Buying Life Insurance Online

2011-08-29T12:21:00.000+05:30

Till 21 months ago life insurance as a product category was only sold through intermediaries. These could be life insurance agents, corporate agents, banks and brokers. These sales were driven largely by the commissions to be derived from such a sale and less by the needs and interests of customers. This resulted in a basic dichotomy that lead to a large number of dissatisfied customers who felt that they had either, been a sold a product they did not need or one which only partially fulfilled their needs. This remains a problem with intermediated selling where often the interests of the intermediary supersede the interests of customers.

The interests of the intermediary also lead to the creation of a number of insurance myths or legends. The most common myth was insurance was too complex a product to be bought by a customer. It needed the intervention of an intermediary to explain the product to the customer and facilitate the buying process. Today in category after category, including life insurance, it has been proven that there is a section of customers who do not need intermediation and are quite capable of making informed choices on their own. This is fuelling online sales of financial products including life insurance.

If you are a customer who is online and is comfortable using the internet and have some experience of having made an online purchase then maybe it is time you seriously looked at buying your life insurance online. Yes there are number of good options that are available on the internet for you.

In October 2009 a new entrant in the life insurance field took the bold step of launching a term product that was meant exclusively and designed specifically for online purchase. The product called AEGON Religare iTerm Plan was designed in such a way that the savings from distribution and other expenses were passed on to the customer resulting in great savings ranging from 10-70% - depending on age and policy term. This plan was immediately successful and continues to be one of the premier online plans available in the market. Today however there are options available from ICICI Prudential, Kotak Life, Metlife and AVIVA. This availability of products has expanded the market and has brought term insurance, classically a neglected category amongst both life insurance companies and intermediaries, back into the limelight. More importantly it has busted the myth that there is no ‘self-service’ market for life insurance products.

Today more and more customers are going online and buying life insurance for protection.
While the market is focusing on term plans AEGON Religare has again taken the lead and has launched another online plan which offers protection on a unit-linked platform – the AEGON Religare iMaximize Plan. This means that the product is structured in a manner so as to provide protection against death, income protection and protection of goals and ambitions. This works through a triple benefit feature. If the person who is the insured were to die his nominee/s will get immediately upon death the sum assured. In addition for the remainder of the policy term the nominee/s get an annual income equivalent to the annual premium paid and lastly, the company continues to pay the annual premium and keep the invested fund alive till the maturity of the plan wherein the nominee/s get the fund value.

This plan provides a triple protection layer that sets it apart from other plans in the market. As it is an online plan there is no premium allocation charge thus maximizing the life insured returns. It can be bought online through an 8-10 minute buying process. It is likely that we will see more such plans from other companies as well in the future.

Hence, the reasons why buying life insurance online is beneficial is that it provides you with value, is convenient - it can be done from you home or office anytime and most importantly you buy a product that you decide upon and not what an intermediary wants to sell. So if you’re comfortable go ahead and buy your life insurance online you’ll see value in it.

India Updates

2010-06-30T08:38:00.000+05:30

Check out for some trending articles on squamble :

Now even you can write for squamble : http://www.squamble.com/become-an-author/

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India Education

2010-05-25T13:12:00.000+05:30

So we have finally launched India Education Blog from squamble family -http://e.squamble.com

The latest post is on Maharashtra HSC 2010 results.

Intraday Tips for November 27th.

2009-11-27T07:51:00.004+05:30

US Markets ended flat.
Europe ended in deep red.
Asia has opened negative.
Expect Indian Markets to also have a negative opening.
The crucial support for the Sensex is at 16635-16542 and resistance at 17125
Nifty (5006) the crucial support for the Nifty is at 4909 and resistance at 5078

Day Trading Ideas :

RCOM : Buy above 169 for targets of 172.50 and 174. SL of 167

NTPC : Buy above 211 for targets of 213.10 and 215.25. SL of 209.20

Happy Investing!

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Intraday Tips for November 26th.

2009-11-26T07:12:00.003+05:30

US Markets ended in green.
Europe also ended in green.
Asia has opened positive.
Expect a positive opening on the Indian Stock Markets.

The crucial support for the Sensex is at 17150 and logical technical target at 17467
Nifty (5108) the crucial support for the Nifty is at 5050 and logical technical targets at 5155-5166

Day Trading Ideas :

Aurobindo Pharma : Buy above 850 for targets of 865 and 875. SL of 840

HCC : Buy above 140 for targets of 141.50 and 142.25. SL of 139.10

IFCI : Buy above 50 for targets of 51.10 and 52.25. SL of 49.10

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Intraday Tips and Market Outlook for 5th Nov.

2009-11-05T06:43:00.002+05:30

US Markets ended mixed.
Europe ended higher.
Asia has opened flat.
Expect Indian Markets to open flat to negative.
The crucial support for the Sensex is at 15500 and logical technical target at 16156
Nifty (4711) The crucial support for the Nifty is at 4650 and logical technical targets at 4784

Day Trading Ideas :

HDIL : Buy above 320 for targets of 324 and 329. SL of 316.

IFCI : Buy above 44 for targets of 45.20 and 46.45

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Intraday Tips and Market Outlook for 3rd Nov.

2009-11-03T06:51:00.002+05:30

State of Markets abroad :
US Markets ended marginally higher.
Europe ended in green.
Asia has opened flat.
Expect Indian markets to open flat to negative.
The crucial support for the Sensex is at 15860-15356-15113 and logical technical target at 16600
The crucial support for the Nifty is at 4693-4550-4400 and logical technical targets at 4900

Day Trading ideas :

MNM : Buy above 922 for targets of 930 and 942. SL of 915.

RNRL : Buy above 64 for targets of 65.10 and 66.25. SL of 62.90

IFCI : Buy above 44 for targets of 45.10 and 46.25. SL of 43.25

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Intraday Tips and Market outlook for 30th Oct.

2009-10-30T06:01:00.002+05:30

State of Markets abroad :
US Markets ended higher.
Europe also ended higher.
Asia has opened higher too.
Expect Indian markets to have a positive and a gap up opening.
The crucial support for the Sensex is 15861 and the resistance is at 16144
Nifty: (4751) the crucial support for the Nifty is at 4699 and resistance is at 4785

Day Trading Ideas :

MNM : Buy above 930 for targets of 942 and 955. SL of 927

IRB Infra : Buy above 233 for targets of 241 and 245. SL of 230

LNT : Buy above 1580 for targets of 1592 and 1605. SL of 1571

Arrive at Sensible Buy & Sell Prices based on Fundamentals : Check out Now !

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Intraday Tips and Market Outlook for 29th Oct.

2009-10-29T06:25:00.003+05:30

State of Markets abroad :
US Markets ended lower.
Europe also ended in negative.
Asia has opened negative.
Expect Indian Markets to open flat to negative.
The crucial support for the Sensex is 16144-15861 and the resistance is at 16474-16575
Nifty: (4826) the crucial support for the Nifty is at 4780-4699 and resistance is at 4888-4920

Day Trading Ideas :

KSK Energy : Buy above 199 for targets of 204 and 208. SL of 196

LNT : Buy above 1590 for targets of 1602 and 1615. SL of 1582

HDIL : Buy above 348 for targets of 351.50 and 353. SL of 346.85

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Intraday Tips and Market Outlook for 28th Oct.

2009-10-28T05:52:00.002+05:30

State of Markets abroad :
US Markets ended mixed.
Europe ended mixed.
Asia has opened flat.
Expect Indian Markets to open flat to positive.
The crucial support for the Sensex is 16221-15861 and the resistance is at 16721
Nifty: (4847) the crucial support for the Nifty is at 4699 and resistance is at 4961

Day Trading Ideas :

Union Bank : Buy above 257 for targets of 265. SL of 254

Wipro : Buy above 604 for targets of 612 and 618. SL of 600

TCS : Buy above 640 for targets of 648 and 654. SL of 635

Arrive at Sensible Buy & Sell Prices based on Fundamentals : Check out Now !

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Intraday Tips and Market Outlook for 27th Oct.

2009-10-27T06:30:00.002+05:30

State of Markets abroad :
US Markets ended in red.
Europe also ended lower.
Asia has opened negative.
Expect the Indian Markets to have a flat to negative opening!
The crucial support for the Sensex is 16707-16682-16426 and the resistance is at 17016-17107-17198
Nifty: (4971) the crucial support for the Nifty is at 4947-4900 and resistance is at 5060-5100

Day Trading Ideas :

IRB Infra : Buy above 250 for targets of 253 and 257. SL of 247

IFCI : Buy above 50 for targets of 51.25 and 52.40. SL of 49.10

RNRL : Buy above 80 for targets of 81.50 and 83.25. SL of 78.90

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Intraday Tips and Market Outlook for 26th Oct

2009-10-26T07:38:00.002+05:30

State of Markets abroad :
US Markets ended in red.
Europe ended mixed.
Asia has opened positive.
Expect the Indian Markets to have a flat to positive opening.
The crucial support for the Sensex is 16764-16682 and the resistance is at 17016-17107-17198
Nifty: (4997) the crucial support for the Nifty is at 4987-4936 and resistance is at 5060-5100

Day Trading Ideas :

HDIL : Buy above 376 for targets of 381 and 385. SL of 373

RNRL : Buy above 85 for targets of 86.20 and 87.25. SL of 84.25

IFCI : Buy above 52.60 for targets of 53 and 54.10. SL of 51.90

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Weekly News Letter and Stocks to watch out for!

2009-10-25T16:07:00.002+05:30

So Festival time is over this time with happiness!
NIFTY last week came down below 5K mark and yet is below it by 3 points.
The global cues sound to be good now with good economic and employment data.

NIFTY look average. No quick gains can be expected in coming week.

NIFTY Support & Resistance :
Support: 4950 and 4890
Resistance : 5070 and 5125

Some stocks to look out for :

State Bank of Travancore : Buy above 590 for targets of 630. SL of 575

Yes Bank : Buy above 255 for targets of 275. SL of 246

IRB Infra : Buy above 245 for targets of 265. SL of 238

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Intraday Tips and Market Outlook for 23rd Oct.

2009-10-23T07:44:00.003+05:30

State of Markets abroad :
US Markets ended higher.
Europe ended red.
Asia has opened higher.
Expect the Indian Markets to have a gap up opening.
Support for Sensex is at : 16550 and 16400
Support for NIFTY is at : 4940 and 4910

Day Trading Ideas :

ITC : Buy above 248 for targets of 249.50 and 251.25. SL of 247.10

RNRL : Buy above 85 for targets of 85.95 and 86.50. SL of 84.25

HCC : Buy above 130 for targets of 132 and 134. SL of 128

Happy Investing!
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Intraday Tips and Market Outlook for 22nd Oct.

2009-10-22T08:37:00.002+05:30

State of Markets abroad :
US Markets ended in red.
Europe ended flat.
Asia has opened red.
Expect Indian Markets to have a negative opening.
The crucial support for the Sensex is 16920 and the resistance is at 17185
Nifty: (5064) the crucial support for the Nifty is at 4987 and resistance is at 5100-5183

Day Trading Ideas :

MNM : Buy above 890 for targets of 905 and 912. SL of 883

RNRL : Buy above 86.75 for targets of 87.45 and 88.40. SL of 85.90

JP Associates : Buy above 255 for targets of 257 and 260. SL of 252

Happy Investing!
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INtraday Tips and Market Outlook for Oct 21st

2009-10-21T08:03:00.002+05:30

State of Markets abroad :
US markets ended lower.
Europe also ended in red.
Asia has also opened negative.
Expect a negative opening on Indian Stock Markets.
The crucial support for the Sensex is 17000 and the resistance is at 17356-17439
Nifty: (5114) the crucial support for the Nifty is at 5090 and resistance is at 5183-5219

Day Trading Ideas :

Andhra Bank : Buy above 121 for targets of 123 and 125. SL of 119

YES Bank : Buy above 253 for targets of 256 and 258. SL of 251

IFCI : Buy above 55.30 for targets of 56.25 and 57.30. SL of 54.25

Happy Investing!
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Intraday Tips and Market Outlook for 15th Oct.

2009-10-15T08:24:00.002+05:30

State of Markets abroad :
US Markets ended higher.
Asia has opened high.
Expect Indian Markets to open higher.
The crucial support for the Sensex is 17000 and the resistance is at 17249-17356-17439
Nifty: (5118) the crucial support for the Nifty is at 5050 and resistance is at 5154-5183-5219

Day Trading Ideas :

MNM : Buy above 980 for targets of 992 and 1005. SL of 970

RNRL : Buy above 86 for targets of 87.50 and 89.10. SL of 85

IndusInd Bank : Buy above 125 for targets of 128 and 131. SL of 123

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Intraday Tips and Market Outlook for 14th Oct

2009-10-14T08:21:00.003+05:30

State of Markets abroad :
US markets ended mixed.
Europe ended in red.
Asia has opened positive.
Expect the Indian Markets to have a higher opening.
The crucial support for the Sensex is 16825 and the resistance is at 17249
Nifty: (5054) the crucial support for the Nifty is at 5000 and resistance is at 5154

Day Trading Ideas :

RNRL : Buy above 88 for targets of 89.10 and 90.25. SL of 87

MNM : Buy above 918 for targets of 925 and 935. SL of 910

HCC : Buy above 135 for targets of 137 and 139. SL of 133.50

Happy Investing!
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Intraday Tips and Market Outlook for 12th Oct.

2009-10-12T07:52:00.003+05:30

State of Markets abroad :
US Markets ended higher.
Europe ended mixed.
Asia has opened flat.
Expect the Indian Markets to open flat to positive.
The crucial support for the Sensex is 16500 and the resistance is at 17000-17249 Nifty: (4945) the crucial support for the Nifty is at 4900-4824 and resistance is at 5069-5154

Day Trading Ideas :

RNRL : Buy above 83.20 for targets of 84.10 and 85.25. SL of 82.15

IFCI : Buy above 53 for targets of 54.10 and 55.25. SL of 52.20

HDIL : Buy above 359 for targets of 363 and 367. SL of 355

Happy Investing!
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Intraday Tips and Market Outlook for 8th Oct.

2009-10-08T09:09:00.003+05:30

State of Markets abroad :
US ended flat.
Europe ended negative.
Asia is now in positive zone.
Expect the Indian markets to open flat to positive.
The crucial support for the Sensex is 16500 and the resistance is at 17072-17249
Nifty: (4986) the crucial support for the Nifty is at 4900-4824 and resistance is at 5069-5154

Day Trading Ideas :

Yes bank : Buy above 208 for targets of 210 and 213. SL of 206

IRB Infra : Buy above 238 for targets of 242 and 245. SL of 235

Happy Investing!
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Intraday Tips and Market Outlook for 7th Oct.

2009-10-07T06:55:00.002+05:30

State of Markets abroad :
US Markets ended higher.
Europe ended higher.
Asia has opened higher.
Expect the Indian Markets to open flat to positive.
The crucial support for the Sensex is 16802-16500 and the resistance is at 17249
Nifty: (5027) the crucial support for the Nifty is at 5000-4900-4824 and resistance is at 5154

Day Trading Ideas :

IRB Infra : Buy above 226 for targets of 229 and 232. SL of 224.

HUL : Buy above 282 for targets of 284.50 and 286.25. SL of 280.95

LNT : Buy above 1680 for targets of 1693 and 1710. SL of 1670

Happy Investing!
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Intraday Tips and Market Outlook for 5th Oct.

2009-10-05T05:58:00.002+05:30

State of Markets abroad :
US markets ended in red.
Europe ended negative.
Asia has opened flat.
Expect the India markets to open flat to positive.
The crucial support for the Sensex is 16802 and the resistance is at 17249-17467
Nifty: (5083) the crucial support for the Nifty is at 5000 and resistance is at 5154-5166

Day Trading Ideas :

Ansal Properties : Buy above 84 for targets of 86 and 87.65. SL of 82.90

IFCI : Buy above 55 for targets of 56.25 and 57.40. SL of 54

MNM : Buy above 890 for targets of 898 and 910. SL of 882.

Happy Investing!
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Intraday Tips and Market Outlook for 1st Oct.

2009-10-01T07:02:00.002+05:30

State Of Markets abroad :
US markets ended lower.
Europe ended lower.
Asia has also opened lower.
Expect Indian Markets to open flat to negative.
The crucial support for the Sensex is 16900 and the resistance is at 17249-17467
Nifty: (5084) the crucial support for the Nifty is at 5030 and resistance is at 5155-5171

Day Trading Ideas :

REC : Buy above 201 for targets of 202.25 and 203.50. SL of 200.20

LNT : Buy above 1680 for targets of 1690 and 1700. SL of 1672

Happy Investing!
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Intraday Tips and Market Outlook for 30th Sept.

2009-09-30T06:55:00.003+05:30

State of Markets abroad:
US markets ended in red.
Europe ended flat.
Asia has opened flat too.
Expect the Indian markets to open flat to positive.
The crucial support for the Sensex is 16802-16435 and the resistance is at 17071
Nifty: (5007) the crucial support for the Nifty is at 4950-4900 and resistance is at 5020-5155

Day Trading Ideas :

MNM : Buy above 850 for targets of 861 and 875. SL of 840

RNRL : Buy above 88 for targets of 89.50 and 90.75. SL of 87.10

HCC : Buy above 130 for targets of 132 and 133.50. SL of 128.50

Happy Investing!

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Weekly Stock Ideas.

2009-09-28T08:40:00.002+05:30

Last week NIFTY saw some volatility.
Markets seems to have a good time.
The current rally in India markets is supported by global markets and will last till global markets are going good.

NIFTY Has a strong support 4920 and 4875.

Short term Stock Tips.

Some good stocks for short term are :

Rajesh Exports : Target of 85 keep a SL of 71.

Gujrat NRE Coke : Target of 72. SL of 63

Other Stock Analysis on Larsen & Tubro , Areva T&D and Praj Industry.

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Intraday Tips and Market Outlook for 25th Sept.

2009-09-25T07:36:00.002+05:30

State of Markets abroad :
US Markets ended lower.
Europe ended negative.
Asia has opened deep in red.
Expect the Indian Markets to open negative.
The crucial support for the Sensex is 16435 and the resistance is at 16815-17071
Nifty: (4987) the crucial support for the Nifty is at 4930 and resistance is at 5020-5155

Day Trading Ideas :

UCO Bank : Buy above 55 for targets of 56.10 and 57.25. SL of 54.20

IFCI : Buy above 55 for targets of 55.90 and 56.35. SL of 54.50

Happy Investing!
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Intraday Tips and Market Outlook for 24th Sept.

2009-09-24T05:53:00.003+05:30

State of Markets abroad :
US markets ended lower.
Europe also ended in red.
Asia has opened green.
Expect the Indian Markets to open flat to positive.
The crucial support for the Sensex is 16435 and the resistance is at 17071
Nifty: (4976) the crucial support for the Nifty is at 4900 and resistance is at 5014-5155

Day Trading Ideas :

IOB : Buy above 122 for targets of 125 and 128. SL of 120

IFCI : Buy above 56.50 for targets of 57.25 and 58.10. SL of 55.90

MNM : Buy above 870 for targets of 880 and 893. SL of 865

Happy Investing!
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Intraday Tips and Market Outlook for 23rd Sept.

2009-09-23T07:28:00.002+05:30

State of Markets abroad :
US markets ended higher.
Europe ended in green.
Asia has opened mixed.
Expect the Indian Markets to open flat to positive.
The crucial support for the Sensex is 16765 and the resistance is at 17071
Nifty: (5020) the crucial support for the Nifty is at 4980 and resistance is at 5155

Day Trading Ideas :

LIC Housing Finance : Buy above 820 for targets of 830 and 842. SL of 822

RNRL : Buy above 91 for targets of 91.80 and 92.50. SL of 90.50

HDIL : Buy above 340 for targets of 345 and 349. SL of 335

Happy Investing!
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Intraday Tips and Market Outlook for 22nd Sept.

2009-09-22T07:21:00.002+05:30

State of Markets abroad :
US markets ended mixed.
Europe ended negative.
Asia has opened mixed.
Expect Indian Markets to open flat to positive.
The crucial support for the Sensex is 16435 and the resistance is at 17071
Nifty: (4976) the crucial support for the Nifty is at 4900 and resistance is at 5014-5155

Day Trading Ideas :

RNRL : Buy above 90.50 for targets of 91.25 and 92.10. SL of 89.90

LNT : Buy above 1650 for targets of 1660 and 1675. SL of 1640

RCom : Buy above 305 for targets of 208 and 311. SL of 302

Adlabs : Buy above 360 for targets of 364 and 367. SL of 355

Happy Investing!
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Intraday Tips and Market Outlook for 18th Sept.

2009-09-18T06:44:00.002+05:30

State of Markets abroad :
US markets ended flat.
Europe ended in green.
Asia has opened red.
Expect the Indian Markets to open flat to positive.
The crucial support for the Sensex is 16435 and the resistance is at 17071
Nifty: (4966) the crucial support for the Nifty is at 4900 and resistance is at 5014-5155

Day Trading Ideas :

Bank of Baroda : Buy above 480 for targets of 486 and 492. SL of 475

Adlabs : Buy above 360 for targets of 365 and 371. SL of 354

RPL : Buy above 130 for targets of 133 and 135. SL of 127

Happy Investing!
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Intraday Tips and Market Outlook for 17th Sept.

2009-09-17T05:42:00.003+05:30

State of Markets abroad :
US markets ended higher.
Europe markets ended higher too.
Asia has also opened higher.
Expect the Indian Markets to open higher.
The crucial support for the Sensex is 16120 and the resistance is at 17071
Nifty: (4958) the crucial support for the Nifty is at 4900 and resistance is at 5014-5155

Day Trading Ideas :

IndusInd Bank : Buy above 112 for targets of 113 and 114.25. SL of 110.50

RNRL : Buy above 88 for targets of 89 and 90. SL of 87.20

IFCI : Buy above 60 for targets of 61 and 61.90. SL of 59.20

Rajesh Export a short term call given at 65 on Sunday as BUY now at 73 in just 3 trading days.

Happy Investing!
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Intraday Tips and Market Outlook for 16th Sept.

2009-09-16T05:55:00.002+05:30

State of Markets abroad :
US markets ended higher.
Europe ended higher too.
Asia has opened higher.
The crucial support for the Sensex is 16120 and the resistance is at 16586
Nifty: (4892) the crucial support for the Nifty is at 4780 and resistance is at 4903-5014

Day Trading Ideas :

IFCI : Buy above 60 for targets of 61 and 62.10. SL of 59.20

GVK Power & Infra : Buy above 48 for targets of 48.90 and 49.75. SL of 47.20

MNM : Buy above 850 for targets of 860 and 872. SL of 842

Happy Investing!
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Intraday Tips and Market Outlook for 15th Sept.

2009-09-15T08:02:00.002+05:30

State of markets abroad :
US markets ended in green.
Europe ended mixed.
Asia has opened almost flat but in green.
Expect the Indian Markets to open flat to positive.
The crucial support for the Sensex is 16030-15950 and the resistance is at 16404-16586
Nifty: (4809) the crucial support for the Nifty is at 4780-4730 and resistance is at 4903-5014

Day Trading Ideas :

Andhra Bank : Buy above 99 for targets of 101 and 102.50. SL of 97.50

IFCI : Buy above 58 for targets of 59.25 and 60.50. SL of 57.10

LNT : Buy above 1610 for targets of 1620 and 1632. SL of 1603

Happy Investing!

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Intraday Tips and Market Outlook for 14th Sept.

2009-09-14T06:14:00.002+05:30

US markets ended flat.
Europe ended higher.
Asia has opened in red.
Expect the Indian Markets to open in the same manner.
The crucial support for the Sensex is 16030-15950 and the resistance is at 16404
Nifty: (4819) the crucial support for the Nifty is at 4780-4730 and resistance is at 4903

Day Trading Ideas :

Central Bank : Buy above 123 for targets of 125 and 127. SL of 121

Godrej Ind. : Buy above 198 for targets of 200 and 202. SL of 196.20

IFCI : Buy above 59 for targets of 60 and 61.25. SL of 58.10

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NIFTY View and Short term tips

2009-09-13T14:48:00.004+05:30

Last week the markets were good.
A bit more gains can be expected from the Indian Stock Markets.
Our target for NIFTY is 4900.
I am bullish on Indian Economy but the market sentiments depend on the whole world.

Last week Oil India's IPO was over subscribed 31 Times. Has the time changed ?

Short Term Ideas :

Apollo Tyres : Buy above 44 for targets of 48 - 50. SL of 42

RNRL : Buy above 88 for targets of 92 and 94. SL of 86

Rajesh Export : Buy above 63 for targets of 66 and 69. SL of 61

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Intraday Tips and Market Outlook for 11th Sept.

2009-09-11T06:54:00.003+05:30

State of Markets abroad :
US markets ended higher.
Europe ended flat.
Asia has opened mixed.
Expect the Indian Markets to open flat to positive.

The crucial support for the Sensex is 16030-15950 and the resistance is at 16404
Nifty: (4819) the crucial support for the Nifty is at 4780-4730 and resistance is at 4903

Day Trading Ideas :

Sesa Goa : Buy above 240 for targets of 246 and 252. SL of 235

HDIL : Buy above 308 for targets of 312 and 316. SL of 303

Unitech : Buy above 110 for targets of 112 and 114.25. SL of 107.50

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Intraday Tips and Market Outlook for 10th Sept.

2009-09-10T05:29:00.003+05:30

State of markets abroad :
US markets ended higher.
Europe also ended in green.
Asia has opened flat to positive.
Expect the Indian Markets to have a positive opening.
The crucial support for the Sensex is 16030 and the resistance is at 16248-16404
Nifty: (4814) the crucial support for the Nifty is at 4780 and resistance is at 4856-4903

Day Trading Ideas :

KSK Energy Venture : Buy above 215 for targets of 218 and 221. SL of 211

GVK Power & Infra : Buy above 49 for targets of 50.50 and 51.20. SL of 47.75

Rajesh Export : Buy above 60 for targets of 62 and 63. SL of 59.10

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Intraday Tips and Market Outlook for Sept 9th

2009-09-09T06:46:00.002+05:30

State of markets abroad :
US markets ended higher.
Europe ended flat.
Asia has opened flat to negative.
Expect the Indian Markets to open in the same manner.
The crucial support for the Sensex is 16030 and the resistance is at 16248-16404
Nifty: (4805) the crucial support for the Nifty is at 4780 and resistance is at 4856-4903

Day Trading Ideas :

HCC :Buy above 108 for targets of 109.25 and 110.50. SL of 107.45

LNT : Buy above 1620 for targets of 1630 and 1642. SL of 1609

Indusind Bank : Buy above 99 for targets of 101 and 103.40. SL of 97.90

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Intraday Tips and Market Outlook for 8th Sept.

2009-09-08T08:08:00.003+05:30

State of Markets abroad :
US markets weer closed.
Europe ended higher.
Asia has opened mixed.
Expect the Indian markets to open positive.
The crucial support for the Sensex is 15900 and the resistance is at 16046-16248
Nifty: (4783) the crucial support for the Nifty is at 4750 and resistance is at 4789-4903

Day Trading Ideas :

LNT : Buy above 1600 for targets of 1610 and 1625. SL of 1589

RNRL : Buy above 88 for targets of 88.90 and 89.50. SL of 87.30

MNM : Buy above 850 for targets of 862 and 870. SL of 843

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Sensex , The Big Traps

2009-09-07T16:31:00.003+05:30

Sharing an article by Nooresh Merani on "Sensex ,The Big Traps" .
This post is written by Manish Chauhan of www.jagoinvestor.com

Sensex The Big Traps

View more documents from manish.pucsd.

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Intraday Tips and Market Outlook for 7th Sept.

2009-09-07T08:26:00.003+05:30

US markets ended higher.
Europe ended higher too.
Asia has opened positive.
The crucial support for the Sensex is 15356-15321-15153 and the resistance is at 15880-16046
Nifty: (4680) the crucial support for the Nifty is at 4580 and resistance is at 4737-4689

Day Trading Ideas :

IFCI : Buy above 58 for targets of 59.10 and 60.25. SL of 57.20

Praj Ind. : Buy above 104 for targets of 105.25 and 106.50. SL of 103

HCC : Buy above 107 for targets of 108.50 and 109.80. SL of 105.25

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NIFTY Weekly and Short Term Stock Tips

2009-09-06T12:37:00.002+05:30

We lost some points on the Indian Markets last week.
Market will have a side way movement for next couple of weeks.
Not much sudden gains can be expected.
Check out NIFTY Auto Generated technicals

Short Term Stock Tips :

Cairn India : Buy above 260 for targets of 267 and 273. SL of 255

GMR Infra : Buy above 135 for targets of 138 and 142. SL of 132

RNRL : Buy above 86 for targets of 87.50 and 88.90. SL of 84.10

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Intraday Tips and Market Outlook for Sept 4th.

2009-09-04T07:29:00.003+05:30

US markets ended higher.
Europe ended marginally negative.
Asia had opened positive and now trading mixed.
The crucial support for the Sensex is 15321-15153 and the resistance is at 15573
Nifty: (4594) the crucial support for the Nifty is at 4548 and resistance is at 4650

Day Trading Ideas :

RNRL : Buy above 85.50 for targets of 86.45 and 87.20. SL of 84.60

MNM : Buy above 815 for targets of 825 and 834. SL of 808

HCC : Buy above 106 for targets of 108 and 109.50. SL of 105.20

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Intraday Tips and Market Outlook for Sept 3rd.

2009-09-03T06:25:00.003+05:30

US markets ended negative after a volatile section.
Europe ended flat.
Asia has opened negative.
Expect the Indian Markets to follow the same.
The crucial support for the Sensex is 15321 and the resistance is at 15620
Nifty: (4608) the crucial support for the Nifty is at 4548 and resistance is at 4650

Day Trading Ideas :

GAIL : Buy above 345 for targets of 351 and 355. SL of 341

HDFC Bank : Buy above 1440 for targets of 1450 and 1465. SL of 1432

IndusInd Bank : Buy above 99.40 for targets of 99.90 and 100.55

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Intraday Tips and Market Outlook for 2nd of Sept.

2009-09-02T07:26:00.002+05:30

State of Markets abroad :
US markets ended lower.
Europe ended lower.
Asia has opened lower.
Expect the Indian markets to open negative.
The crucial support for the Sensex is 15470-15321 and the resistance is at 15685
Nifty: (4625) the crucial support for the Nifty is at 4600-4548 and resistance is at 4700

Day Trading Ideas :

IFCI : Buy above 53 for targets of 53.90 and 54.45. Sl of 52.60

Rajesh Export : Buy above 49 for targets of 50.25 and 51.45. SL of 48.20

Sterlite Ind. : Buy above 650 for targets of 662 and 671. SL of 645

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Intraday tips and Market Outlook for 1st Sept.

2009-09-01T07:54:00.002+05:30

State of Markets abroad :
US markets ended in red.
Europe ended mixed.
Asia has opened higher in green.
Expect the Indian Markets to do the same.

Yesterday China saw a sell off.
Today NHPC will list on the Indian Stock Markets. 4 to 8% premium expected.

The crucial support for the Sensex is 15470-15426 and the resistance is at 15880.
Nifty: (4662) the crucial support for the Nifty is at 4600 and resistance is at 4700-4789

Day Trading Ideas :

HCC : Buy above 110 for targets of 112 and 114.10. SL of 108.25

Unitech : Buy above 106 for targets of 107.25 and 108.45. SL of 105

ICICI Bank : Buy above 750 for targets of 755 and 761. SL of 745

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Orient Paper: Buy

2009-09-01T07:52:00.001+05:30

Trading at six times its trailing 12-month FY09 earnings, the stock of Orient Paper and Industries (Rs 54) appears to be a value buy. All three of the company’s key business segments — cement, paper and consumer electronics — appear poised to deliver reasonable growth. OPIL is on an expansion spree, invading the smaller semi-urban markets by spreading out its dealer network. With efforts to increase market share and improve operating efficiency, the company can tide over the current challenging situation.

Background

Orient Paper & Industries though began its business only as a paper manufacturer with a single machine in 1939, it now operates diversified businesses. About 60-65 per cent of the company’s revenues come from the cement business with paper and electrical goods chipping in with the rest. The company’s cement units cater to the markets in Andhra Pradesh and Maharashtra. In FY-09, the OPIL’s cement division reported a 20 per cent growth in net sales against the industry’s average 8 per cent; the company’s fan sales in the domestic market rose 10.6 per cent against the industry average of 4 per cent.
Cement’s share

OPIL’s cement capacity is now at 3.4 million tonnes (mtpa). This is set to increase to 5 mtpa as the new kiln at Devapur, Andhra Pradesh, commences operation . . Though the demand scenario in the southern markets has been dull in recent months, the company has been taking initiatives to expand its reach, which have been paying off.

In FY09, the company established 17 new depots — and added 330 stockists to its network, aiding a 22 per cent volume growth in Andhra Pradesh and Maharashtra.

With the commissioning of new capacity, the company is planning a further enhancement of dealer network and intensified brand promotion. The proposed cement capacities in the South, which have weighed on the utilisation rate of plants, however, remain a concern.

The recent June quarter numbers, which saw a 7 per cent volume dip, were impacted by the shutdown of the company’s kilns on up-gradation work.
Paper, welcome choice

In 2008-09, OPIL managed sales growth on higher realisations despite a 14 per cent decline in production on temporary shutdown of the mill. Branded retail stationery has been a fast growing market and the company entered this market last year with the launch of notebooks under the brand, ‘1st choice’.

OPIL’s new tissue plant of 15,000 tonnes capacity is also set to commence production this year and may aid realisations and margins in the paper business. The company is striving to improve the sales further by setting up a network for selling the new branded notebook and tissue products to institutional segments.

Initiatives like these may be crucial to sales as, similar to the case of cement, the paper industry too is marred by fears of a capacity overhang. 6.5 lakh tonnes of new capacity are expected to be added in the next one-and-a-half years.

This would leave a surplus of 4.5 lakh tonnes in the market as the industry is expected to grow at 5-6 per cent. The domestic market now absorbs 30 lakh tonnes of paper a year.
Electricals add strength

OPIL’s electrical division, which includes fans, compact fluorescent lamps and other lighting, reported a 53 per cent growth in operating profits in 2008-09 following a close to 20 per cent growth in sales.

The company is also the country’s largest exporter of fans. But following the slowdown in export demand during the year, the company increased its focus in the domestic (semi-urban) market.

OPIL’s fan sales in the domestic market rose by 11 per cent in FY-09.

The company is further looking to expand its distribution reach in Tier-II and Tier-III markets. Strong trends in semi-urban and rural sales have been key drivers in this business.

The company has been taking up several proposals to improve its cost efficiency — setting up heat recovery units to lower energy consumption, upgrading existing evaporators and boilers at its paper mills, reducing power and coal consumption in the cement kilns.
Cost efficiencies

The company is also commissioning a 50 MW captive power plant for powering its cement units (a 43 MW power plant for the paper mill is also being planned) and has completely automated cement packing plants.

OPIL’s sales have grown at a compounded annual rate of 17 per cent in the last three years. Penetration into new markets in the domestic region and higher realisations from the paper and cement segments have buttressed the growth.

The company’s operating profit margin stands at the industry’s average 24-27 per cent.

Financing the above capex should not also be a problem for the company as its debt-to-equity stands at a low 0.35. OPIL promises to deliver growth in the medium-to-long term.
Source : Hindu Business Line

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Punj Lloyd: Buy

2009-09-01T07:50:00.000+05:30

Punj Lloyd is a key beneficiary of the revival in activity in global oil and gas exploration and production, trigerred by a revival in crude oil prices. Order inflows of Rs 10,000 crore in the June quarter alone is a clear indicator of the revival.

The worst of the impact from the contentious contract of its subsidiary also seems to be over. Investors with a two/three-year perspective can consider investing in the stock, which currently trades at 13 times its expected consolidated per share earnings for FY-11. The equity base includes the recent institutional placement.

After two consecutive quarters (ending March 2009) of losses and tepid order flows, Punj Lloyd has made a positive start in the first quarter of FY-10. Apart from moving into the positive earnings territory with a healthy 14 per cent growth in consolidated profits in the June quarter, the company surprised markets with a massive order inflow that took its order book to Rs 27,900 crore, up 38 per cent over the year-ago period and 2.3 times its FY-09 revenues.

This surge in orders can be attributed to two reasons: One, a revival in capex spends in the areas of oil and gas pipeline, storage tanks and terminals and process facilities, on the back of stabilisation in crude prices as well as recent discoveries. Two, the crude oil price rally in 2009, which means a revival in the spending activity of economies such as West Asia and North Africa. In fact, it is the latter (Libya being a key contributor to orders) that has triggered the order flow for Punj Lloyd. With crude oil remaining range bound and contract values lower than a year ago, we expect Punj Lloyd to receive a spate of projects in the infrastructure space from these geographies.

Another key development is the company’s successful qualified institutional placement of Rs 670 crore in August. The funds would provide for the company’s heightened working capital requirement, and replace high-cost debt. This could, in turn, ease interest costs which have doubled over the past one year.

Punj Lloyd saw a two percentage point increase in its operating profit margins to 10.4 per cent in the latest quarter. However, with the present orders tilted in favour of infrastructure rather than pipelines, Operating Profit Margins are unlikely to cross the 10 per cent mark in the medium-term. Cost over-runs in fixed-price projects could also cause volatility in earnings.
Source : Hindu Business Line

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LIC Housing Finance: Buy

2009-09-01T07:47:00.001+05:30

Investors can consider accumulating the LIC Housing Finance stock, given the scope for better growth and easing margin pressures as the housing market revives and interest rates head higher over the medium term.

LIC Housing Finance (LIC Housing) has continued to display strong growth in disbursements in recent quarters, despite a slowing housing market and PSU banks aggressively growing this business by offering lower rates.

At the current price of Rs 653, the stock trades at nine times its estimated earnings and two times its estimated book value for 2009-10.

This valuation (price-book value) positions LIC Housing at a steep discount to HDFC, but at a premium to other financing companies such as GIC Housing Finance and Dewan Housing Finance.

Strong profitability ratios (return on assets of 2 per cent and return on equity of 23.8 per cent), improving asset quality over the years (Gross NPAs down from 4.7 per cent in 2005 to 1.5 per cent currently), strong marketing network (with more than 9000 agents covering 450 centres), credit rating (AAA from CRISIL) and strong parentage which helps it source funds at a lower cost than most other NBFCs are key investment arguments for the stock.

However, investors may have to bear in mind that the stock has risen 276 per cent from its 2009 lows in March due to a significant re-rating driven by internal restructuring.
Business

LIC Housing, promoted by Life Insurance Corporation, is the fourth largest mortgage financing company after HDFC, SBI and ICICI Bank with a market share of a little over 8 per cent in home loans.

More than 90 per cent of LIC Housing’s portfolio is made up of individual home loan borrowers while the rest is financing for home developers. Despite getting higher yields on project financing, the company continues to cap this segment at 10 per cent of the total portfolio.

The average ticket size of loans disbursed has risen from Rs 10 lakh to Rs 12.05 lakh in a year with just 58 per cent of the loans originating from top cities.

LIC Housing has around 158 marketing offices and a strong distribution network of more than 9,000 agents in the form of direct-selling agents, home loan agents and customer relationship associates across India. The company’s borrowing profile is skewed towards non-convertible debentures and term loans which forms over 80 per cent of the fund base.
Finances

As of June 30, the loan book stood at Rs 29,254 crore, a 29 per cent growth in a year. The company missed the bus during the housing boom, growing by 22 per cent in 2002-07, at a time when new housing loans grew by 30 per cent compounded annually.

Nevertheless, it has caught up in the last couple of years and has grown 28 per cent even as the industry saw growth moderating to 9 per cent.

LIC Housing has managed to grow its net profit by nearly 39 per cent during the period 2005-09 on a compounded annual basis, owing to strong growth in disbursements, coupled with fall in operating expenses.

The net profit for the latest June quarter grew by a modest 18 per cent despite a strong loan book growth of 29 per cent due to fall in net interest margins.

Net interest margins fell by 0.21 percentage points in a year, despite interest rates falling, due to aggressive pricing done in the housing portfolio to compete with its peers.

Though LIC Housing has managed to moderate costs through floating rate borrowings and incremental borrowings at lower rates, margin pressures may continue given the expanding portfolio of new loans which offer a fixed rate for the initial three years. These loans may put pressure on incremental yields; however, the existing loans which are reset every quarter may benefit from rising yields.

The disbursement-to-sanctions ratio of 80 per cent is quite good for the company given its retail focus.

Asset quality in the housing portfolio has improved over years as the company has a strong credit-appraisal mechanism and stringent loan-to-value criteria. The gross NPA ratio is at 1.51 per cent, a slight deterioration over the previous quarter. The net NPA at 0.65 per cent is flat compared to last year.

On the capital raising front, it has raised NCDs and term loans worth Rs 6000 crore this fiscal. LIC Housing also plans a QIP by selling around 1 crore shares to improve its capital adequacy, which is now at a sound 13.5 per cent.

The company is also entering lucrative businesses such as venture capital fund and LIC Care (providing dwelling centres for a growing population of senior citizens), but these are in the nascent stages. The company recently sold part of its stake in LIC MF to Nomura.
Outlook

The advantage the company has is that 50 per cent of the borrowing portfolio and 96 per cent of the loan portfolio are pegged to floating rates, reducing the impact of interest rate volatility.

The company cites improving housing demand since February this year as the trigger for its good disbursement growth.

That much of disbursements came from new home buyers (the ones switching the loans to LIC Housing were only 7-8 per cent of incremental disbursements) is also a positive as it indicates sustainable new home sales driving the growth.

This shows that the company can expect to capitalise on reviving housing demand. The falling age of home owners and moderating housing prices may aid asset quality. With the Eleventh Plan projecting a 24.7 million unit shortfall in housing units, potential for market expansion remains substantial.

LIC Housing may be able to leverage both on its strong distribution network (especially in urban and semi-urban areas) and rising ticket size of the loans.
Source : Hindu Business Line

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Pratibha Industries (Rs 193.5): Buy

2009-09-01T07:46:00.000+05:30

Investors with a medium-term perspective can consider buying the stock of Pratibha Industries.

After bottoming in December 2008 at the low of Rs 47, it has been trending upward. In late May 2009, the stock penetrated its key resistance around Rs 140 and has been in a sideways consolidation in the range of Rs 140 and Rs 185 for almost three months.

The counter recouped its bullish momentum and broke out of its consolidation phase on August 28. It is trading way above 21- and 50-day moving averages. The daily as well as weekly momentum indicators are featuring in the bullish region. We believe that the stock has the potential to move up to Rs 255 in the medium-term. Investors can buy it with stop-loss at Rs 165. Short-term traders can buy with a target of Rs 213 and tight stop at Rs 183.

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Intraday Tips and Market Outlook for 31st August

2009-08-31T08:17:00.003+05:30

State of Markets abroad :
US markets ended mixed.
Asia has opened in deep red.
Expect the Indian Markets to follow to the same.

NIFTY Technicals :
Current Spot : 4732.35
Supports : 4674.65 & 4616.8
Targets : 4767 & 4801.55

Day Trading Ideas :

RNRL : Buy above 85 for targets of 86.10 and 87.25. SL of 83.90

HUL : Buy above 260 for targets of 262 and 265. SL of 258

Adlabs : Buy above 335 got targets of 238 and 341. SL of 333

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NIFTY Weekly Technical analysis and Stocks to watch out for.

2009-08-30T06:53:00.002+05:30

Last week Markets witnessed marginal rise.
Expect the markets to zoom more in short term.
Check Out NIFTY's Technicals : CLICK HERE.

Stocks to watch out for :

MNM : Buy above 820 for targets of 845 and 860. SL of 810

Aurobindo Pharma : Buy above 700 for targets of 720 and 740. SL of 690

Thermax : Buy above 460 for targets of 480 and 500. SL of 450

GVK Power & Infra. : Buy above 47 for targets of 49 and 51. SL of 46.10

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Intraday Tips and Market Outlook for Aug 28th.

2009-08-28T08:31:00.003+05:30

State of Markets Abroad :
US markets ended in green.
Europe ended flat.
Asia has opened mixed.
The crucial support for the Sensex is 15690 and the resistance is at 15904-16046
Nifty: (4688) the crucial support for the Nifty is at 4660 and resistance is at 4700-4789

Day Trading Ideas :

GVK Power & Infra : Buy above 48 for targets of 49.25 and 50.40. SL of 47.10

RPower : Buy above 160 for targets of 165 and 169. SL of 157

HCC : Buy above 112 for targets of 113.20 and 115.10. SL of 110.

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Intraday Tips and Market Outlook for 27th August.

2009-08-27T06:44:00.003+05:30

State of Markets abroad :
US markets ended flat.
Europe ended in red.
Asia has opened negative.
Expect the Indian Markets to open flat to positive.

The crucial support for the Sensex is 15700-15690 and the resistance is at 15783-15904
Nifty: (4681) the crucial support for the Nifty is at 4660 and resistance is at 4700-4790

Day Trading Ideas :

RNRL : Buy above 90 for targets of 91.25 and 92.50. SL of 88.45

HDIL : Buy above 310 for targets of 315 and 319. SL of 305

Gujarat NRE Coke : Buy above 56 for targets of 57.10 and 58.25. SL of 55.10
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Intraday Tips and Market Outlook for 26th Aug.

2009-08-26T06:21:00.002+05:30

State of Markets abroad :
US markets ended flat to positive.
Europe ended flat.
Asia has opened positive.
Expect the Indian Markets to open positive.

NIFTY Technicals:
Current Spot : 4659.35
Support :4603.6 & 4547.85
Resistance :4694 & 4728.65

Day Trading Ideas:

RNRL : Buy above 82 for targets of 82.85 and 83.90. SL of 81.15

IFCI : Buy above 53 for targets of 54.10 and 55.05. SL of 52.1

HCC : Buy above 110 for targets of 112 and 113.50. SL of 108.10

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Intraday Tips and Market outlook for 25th Aug.

2009-08-25T08:44:00.003+05:30

State of Markets abroad :
US markets ended mixed.
Europe ended in green.
Asia has opened and trading in red.
Expect a gap down opening.
The logical target for the Sensex is 15500-15314 and the resistance is at 15783-15904
Nifty: (4643) the logical target for the Nifty is at 4600 and resistance is at 4700-4790

Day Trading Ideas :

Praj Ind : Buy above 94 for targets of 95.10 and 96.05. SL of 93.10

IndusInd Bank : Buy above 101 for targets of 102.10 and 103.05. SL of 99.90

HDIL : Buy above 297 for targets of 300 and 305. SL of 291

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Stock Idea : Puravankara Projects Ltd.

2009-08-24T17:59:00.001+05:30

Stock : Puravankara Projects Ltd.
CMP : 128.25
The net debt to equity ratio at 0.58:1 and currently the company has dent of over 500 cr.

It also plans to launch high-end villa project in 26-acre parcel in Colombo and to launch 4 lakh-sq ft apartment/office complex in a downtown area.

Expansion plans
Subsidiary Provident Housing in talks to acquire land in Mumbai
Plans to enter mumbai in affordable housing projects
Set to revive Lankan foray, post-civil war

Land acquisition plans
In advanced talks to buy land
Estimates land acquisition cost at Rs1500 cr
Estimates construction financing at Rs6500 cr for first phase
Coimbatore 37 acres
Hyderabad 50 acres
Banglore 50 acres
Kochi 28 acres
Mysore 61 acres

QIP Plans
To raise Rs750 cr Via QIP
Equity dilution around 20% at CMP

Results for Q1FY10 (QoQ) cons
Net sales down 18% at Rs55.97 cr vs Rs67.92 cr
Operating profit down 6% at Rs10.24cr vs RS14.58 cr
OPM up 200 bps at 17% vs 15%
Net profit down 30% at Rs10.24 vs Rs14.58 cr

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Buy JP Associates, target of Rs 250: IIFL

2009-08-24T17:57:00.000+05:30

IIFL has recommended a buy rating on Jaiprakash Associates with a target price of Rs 250 in its August 24, 2009 research report.

"Jaiprakash Associates is well set to be among the top five players in power, cement and real estate in India. Doubling of cement capacity in three years, launch of 13m sq ft residential projects in two years and expeditious award of thermal power projects to established E&C players lend credibility to the group’s ambitious expansion plans. Treasury stocks in the parent company and consolidation of all power assets under the listed subsidiary (Jaiprakash Hydropower Limited, or JHPL) provide funding flexibility. More than doubling of cement volumes over FY09-11 and peak construction at captive projects, we estimate, should yield 44% earnings CAGR over FY09-11, similar to growth rates achieved over FY05-09. We initiate with 'BUY' and an SOTP-based target price of Rs 250 per share. At our target price, the standalone entity would be valued at P/E of 8.4x FY10ii and 6.4x FY11ii," says IIFL's research report.
Source : Money Control

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Buy DCM Shriram Industries, target of Rs 175: Sunidhi Sec

2009-08-24T17:55:00.001+05:30

Sunidhi Securities & Finance has recommended a buy rating on DCM Shriram Industries with a target price of Rs 175 in its August 12, 2009 research report.

"In view of DCMSIL’s diversified business model, expected lower domestic sugar production, increase in the sugar consumption, increasing sugar prices coupled with improved Q1FY10 results by DCMSIL, the shares are recommend to 'BUY' with a target of Rs 175 in the medium term," says Sunidhi Securities & Finance's research report.
Source : Money Control

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Accumulate Mphasis, target of Rs 560: Emkay

2009-08-24T17:52:00.001+05:30

Emkay Global Financial Services has recommended an accumulate rating on Mphasis with a target price of Rs 560 in its August 21, 2009 research report.

"Mphasis beats expectations yet again with USD 232 million (+9.2% QoQ, highest in the sector once again). ITO leads the way with a 13% sequential growth; Apps/BPO grow by 9%/6% QoQ. Higher revenue/operating margins combined with lower translation losses and effective taxes drive net profit beat. Still like Mphasis as the best demand play in the sector however cut our rating to 'ACCUMULATE' with a revised target price of Rs 560," says Emkay Global Financial Services' research report.
Source : Money Control

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Buy Crompton Greaves, target of Rs 365: Hem

2009-08-24T17:41:00.001+05:30

Hem Securities has recommended a buy rating on Crompton Greaves with a target of Rs 365 in its August 22, 2009 research report.

"The company has reported good set of numbers for the quarter ended June 2009. Net sales stood at Rs.21975.20 million up by 8.00% from the corresponding quarter last fiscal, thereby converting in operating profit of Rs.2476.00 million. Looking at the strong financial and quarterly results, we recommend 'BUY' on this stock with a medium-term price target of Rs.365.00," says Hem Securities' report.
Source: Money Control

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Guest Bloggers are invited

2009-08-24T14:22:00.002+05:30

IndianMoneyPlus invites guest bloggers to blog here. Guest blogging is a way of Free Promotion of a brand, Website or a Product.
We will mention your name and your web URL (Website) at the bottom of the post.
If you want to blog too often we have a revenue sharing programme for you.

All Guest Post can be mailed across indianmoneyplus[at]gmail.com

All article should be related to Stock Markets, Personal Finance, Insurance, Mutual Funds and Tax.

You can also send us across your tips along with a detailed analysis and your web URL and even your photo! Stock analysis should range from 120 to 500 words.

So why are you waiting mail us across your article and promote or Blog, Brand or Product.

Godrej Industries Technical View

2009-08-24T09:31:00.001+05:30

I will give you Technical View on Godrej Industries through some Charts We will see Long term and very short term chart of the company to give a BUY or SELL signal . First Lets see a brief overview of Company . Godrej Industries Limited is India's leading manufacturer of oleochemicals and makes more than a hundred chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati and bakery fats. Besides, it operates real estate.

Share prices are at very important Resitance Level of Rs 150 at this point . Over last 2-3 yrs , Rs 150 has played important level for this company , to understand more , view the charts below , Click on it to enlarge .

Current prices are near that resistance level of 150 once again and from last some days dancing near those levels, This is a point where one has to really be patient to let the stock give you signal for buying or selling , one can buy above 160 and sell below 140 with proper stop loss. We can also see a short term chart to make a short term buy or sell signal . See the 5 day chart below .

I would recommend buying only above 158 and selling below 148 with strick stoplosses . If you new to Trading I would recommend you first get the basics , you can refer to this Ebook for new comers in stock market .

With Godrej Properties IPO coming soon , This stock can give surprises . So watch it closely .

This post is Written by Manish Chauhan , He blogs at http://www.jagoinvestor.com

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Intraday Tips and Market Outlook for 24th Aug.

2009-08-24T08:15:00.004+05:30

State of markets abroad :
US markets ended higher.
Europe ended higher.
Asia has opened higher.
Expect the Indian Markets to open higher.

NIFTY Technicals
NIFTY Spot : 4528.8
Support : 4440.2 & 4351.65
Resistance : 4578 & 4627.25

Day Trading Ideas :

Yes Bank : Buy above 174 for targets of 176 and 178. SL of 172

GVK Power&Infra : Buy above 48 for targets of 49.15 and 50.10. SL of 46.90

LNT : Buy above 1495 for targets of 1505 and 1520. SL of 1488

Happy Investing !
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Weekly NIFTY Technicals , News Letter and Stock Ideas

2009-08-23T12:13:00.003+05:30

Markets were volatile last week.
Get NIFTY Technicals here.

No special news this week.
Adani Power IPO which was offered at Rs100 opened at 8% premium.

Sectors on which we are bullish this week :
IT.
Pharma.

Stocks to watch out for this week :

Aurobindo Pharma : Buy above 690 for targets of 720 and 735. SL of 681

MNM : Buy above 800 for targets of 820 and 845. SL of 792

TATA Motors : Buy above 430 for targets of 440 and 448. SL of 425

Happy Investing!

Read Oil India IPO Review.

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Stock Idea : Tantia Constructions (BUY)

2009-08-23T12:10:00.001+05:30

Investors can buy the stock with a two-year perspective but should actively consider booking profits occasionally by setting target returns.

Tantia Constructions can be a small part of the portfolio of investors with a penchant for risk. Reasonable revenue and profit growth in FY-09, a tough year especially for smaller construction companies, strong order book and presence in lucrative segments such as Railways and urban infrastructure lend themselves well to future earnings growth.

This Kolkata-based player is well-positioned to tap infrastructure development activities in the east and north-eastern regions of the country — geographies that hold higher potential for business, given the relatively slow growth, compared with the rest of the country.

At the current price of Rs 90.5 the stock trades at 4.2 times its expected earnings for FY-10. Given that the company managed a 12 per cent profit growth in FY-09 which was a difficult year, the coming year’s earnings growth with the recent spate of order inflows can only be better.

Investors can buy the stock with a two-year perspective but should actively consider booking profits occasionally by setting target returns.

This would help them lock into gains that small cap stocks often make in a market rally.

Niche player
Tantia Constructions is a contractor with presence in road, rail, bridges and urban infrastructure projects. For a small-sized contractor with revenue of Rs 450 crore (FY-09), the company has enjoyed lucrative profit margins. Its operating profit margin (OPM) for FY-09, for instance, was 13 per cent — superior to a number of listed players.

This high margin can be attributed to two factors: One, the company’s presence in urban infrastructure and rail projects that typically carry healthy return on investments. Two, its well-entrenched presence in the north-eastern regions such as Mizoram and Assam, where there is little competition, given the tough conditions; thus providing scope for higher bidding prices.

Given the government’s steady increase in the budgetary allocations for the region, and the recent creation of the North-East Rail Development Fund, Tantia could emerge as a key beneficiary especially in smaller contractual works.

Tantia has witnessed a spate of order flows from the beginning of this year taking its total order book position to Rs 1,935 crore, four times its revenue for the latest ended financial year.

Projects from Railways, including the Delhi Metro, and road projects account for a good 34 per cent each of the total order book. Urban infrastructure stands next at 28 per cent. Tantia has presence in power transmission and airports as well, though the value of such projects is not significant.

The current order-book proportion could well ensure that the company’s OPMs are in the 12-15 per cent range, provided it is not hurt by any sharp hike in commodity prices. On this account, Tantia did witness a decline in its OPMs in the quarter ending September 2008 but quickly recovered, perhaps due to price escalation clauses available for raw materials costs.

Steady revenue growth
While Tantia’s earnings growth for FY-09 was a muted 12 per cent, its earnings over the last three years has grown at a compounded annual rate of 26 per cent. Recent quarters ending March and June suggest that the company’s earnings growth is back on track after a dip in the December quarter.

Interestingly, Tantia is among the few small infrastructure players that have managed to expand their revenues (on a year-on-year basis) over the last four quarters. This provides comfort as it suggests that the execution of projects has not been hurt as a result of economic slowdown or credit crunch.

Execution, though, has come only at the cost of high leveraging. The company’s debt: equity ratio at about 1.7 times although not alarming, is rather tight, limiting scope for further leveraging, given the small size.

However, that 15 per cent or Rs 30 crore of the total Rs 192 crore of long-term debt is from FCCBs due only in 2012 provides some comfort. The decline in interest rates has also provided marginal relief to the company’s profits.
Source : Hindu Business Line

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Stock Idea : Zodiac Clothing

2009-08-23T12:05:00.001+05:30

Shareholders can stay invested in the stock of Zodiac Clothing, which is among the premium players in the retail space, catering primarily to luxury formalwear for men. At Rs 295, the stock trades at a multiple of 17 times standalone four-quarter trailing per share earnings, at a premium to a good number of retail peers. Zodiac commands a substantial brand recall, and has design offices across countries to pick up on trends.

A low debt equity ratio, high operating margins, and quick movement of inventory bode well for the premium retailer. However, considering the company’s premium bent, declining sales growth and higher valuations, fresh investments may not be made at this level.

Brand equity
The company’s flagship brand ‘Zodiac’ is an established name catering to formal menswear, reaching out to older men. In an effort to branch out and reach a wider segment of customers, Zodiac launched two more brands that have been successful.

‘ZOD!’ is a brand aimed at party and club wear for young men, while ‘Z3’ is meant for casual wear, but could be used as office wear, again for young men.

All three are luxury brands. Related accessories such as ties, cuff-links and belts are also marketed by Zodiac, and the company is contemplating entering men’s footwear, which constitutes the majority of the Indian footwear market. Zodiac has a design studio in Mumbai with support from design and sales offices in London, New York and Dusseldorf (Germany).

Store count
Zodiac currently has a retail network of more than 1,200 stores in multi-brand outlets besides 69 (as of March 2009) own stores, including overseas outlets in Dubai. All the exclusive brand outlets are owned by the company and not franchised. This has thus translated into higher depreciation, which has kept pace with sales growth.

Deviating from strategies followed by its retail peers, Zodiac has not, and does not plan to, increase store count through franchisees. Franchising has been the preferred expansion method in this industry for some time since it requires minimal capital investment on the part of the retailer, reduced rentals and store maintenance.

Zodiac, though, is not beset by the funding woes plaguing most retailers and can therefore meet capital requirements quite easily. It operates on a debt-equity ratio of 0.21 times, a high interest cover of 11 times, a positive operating cash flow, and has reserves of Rs 87 crore to draw on.

Margin performance
Operating margins stand at 11.4 per cent for 2008-09, higher when compared with a good many of the company’s retail peers. Even so, margins have dropped from the 16.5 per cent in the preceding year, primarily due to losses on foreign exchange fluctuations.

Given its high own-store count, depreciation and taxes cut net profit margins to 5.7 per cent, though this is still higher than peers. In fact, operating and net profit margins improved to 13 and 7 per cent, respectively, in the June 2009 quarter on the backs of lower raw material costs. In terms of inventory turnover, at 5.67 times sales in FY-09, Zodiac has not only managed to improve on this count over the previous year but is also among the better performers in the retail space.

Working capital too has seen a faster rotation in the past three years, perhaps one key reason why it has managed with little borrowing for operations.

Diminishing sales growth
Superior margins notwithstanding, sales growth has been on the wane, even as consumer spending staged a revival. From a 23 per cent growth in the September 2008 quarter over the same period the preceding year, sales growth progressively declined, slipping to a 3 per cent growth in the June 2009 quarter. Added to declining sales growth, increased expenditure resulted in profits dropping 24 per cent in 2008-09.

Zodiac also has an export component; exports constitute a good 36 per cent of revenues. Even with domestic sales outpacing international sales, and the company’s efforts to keep up with changing fashion trends for the international market, it is still open to slackening global demand and forex fluctuations.

In the domestic market itself, recovery in consumer spending has centred on value-for-money products, leaving premium players such as Zodiac still searching for sales. However, the festival season is now on, and Zodiac has traditionally clocked a healthy sales growth during the September and December quarters.

If Zodiac has to capture a larger piece of the retail apparel market through diversification — either into value retail or women’s and kids’ apparel — it may yet face challenges as a result of its premium, masculine positioning in consumers’ minds.
Source : Hindu Business Line

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L&T Finance - Non Convertible Debentures (NCD): Invest

2009-08-23T11:59:00.002+05:30

Investments can be considered in L&T Finance’s secured non-convertible debentures (NCD), especially the longer-term options as they offer attractive rates and provide a hedge against the interest rate volatility over a 10-year period. With banks’ term deposit rates hovering in the 6.5-8 per cent range across comparable tenures, the rates offered by the debenture appear attractive.

However, investors can give the five-year quarterly and semi-annual options a skip. For one, they offer lower rates of interest compared to many fixed deposit options with similar or marginally higher credit risk.

Locking into the shorter term options also appears unattractive given the expectation that interest rates will trend up over the next few quarters.

The NCD has received LAA+ and CARE AA+ ratings (both indicating ‘investment grade’) from ICRA and CARE respectively. This apart, diversified revenue stream, high proportion of capital adequacy and reasonable growth prospects of segments such as commercial vehicles, micro-financing, where the company has recently set foot and which have high yields, are the key investment arguments.

About the company
L&T Finance was set up 15 years ago as a SME financing company to fund its parent company’s vendors and distributors. Today, it has evolved into a full-fledged NBFC that provides equipment financing, tractor and commercial-vehicle financing, micro-financing and lending against shares. The company has 311 branches and points of presence.

L&T Finance had an advance book size of Rs 5,218 crore. Ninety per cent of the loans are secured by assets. The advances book is divided into corporate finance group (37 per cent of loans) and retail finance group (63 per cent of loans). Construction equipment, other retail financing such as tractor and farm equipment financing, CV financing are major segments in that order, according to the management. Most of its borrowings come from bank loans (69 per cent) followed by commercial paper and NCDs.

In the previous fiscal, the company’s interest income grew 38.3 per cent over 2007-08 to Rs 830 crore but due to the prevailing slowdown the profits fell 14 per cent to Rs 98 crore.

The interest spread is 2.7 per cent for the company, which has fallen due to increase in the borrowing costs and higher provisioning for the NPAs (non-performing assets). After providing for Rs 22 crore, the net NPA ratio is at 2.04 per cent, up from 0.7 per cent in 2007-08.

The company has a comfortable capital adequacy of 16 per cent and debt-equity ratio (post issue) of 6.68 times. .

Choosing the best option :

The issue is secured by the receivables of the company and 50 per cent of the capital raised in NCD is set aside as debenture redemption reserve.

Of the four options, the 88-month cumulative and the 10-year semi-annual one are good investment options. In the light of the new Tax Code that is expected to come into force from 2011, the post-tax returns of these longer-term options appear more attractive. For instance, for an individual earning Rs 6 lakh per annum, the cumulative option which gives pre-tax yield of 9.5 per cent on an accrued basis may yield only 7.2 per cent as he is in the 30 per cent tax bracket.

However, if the new Tax Code comes into force, the post-tax yield will increase to 8.7 per cent as he would be in the 10 per cent tax bracket. Investors can consider the cumulative option as it reduces the re-investment risk as the accrued interest continues to grow at the same rate, maintaining the yield-to-maturity at relatively higher levels.

The other instrument with similar tenor is Kisan Vikas Patra, which has 1.55 percentage points lower spread over the NCD.

The semi-annual 10-year option, on the other hand, is a one of its kind for the retail investors issued by any NBFC which provides an annualised return of 10.24 per cent, semi annually over a period of 10 years. The only other retail option for such a long tenor is a 10-year government bond with a coupon rate of 6.94 per cent.

A cumulative option is attractive for those who do not require a periodic payout. Investors seeking regular payout may choose the interest payout options.

One advantage of the current NCD issue is that it can be traded on the NSE which makes the bonds liquid. Any major increase in the price of the NCD would present the investor with an opportunity to cash out, especially if interest rates reach a ‘trough’. But investors do not face downside risk. Even if the price of the NCD falls in the secondary market, investors can redeem it at par value on maturity.

For example, the Tata Capital NCD (option 4), with a coupon rate of about 12 per cent and face value of Rs 1000, trades at Rs 1,130 giving an annualised return of more than 25 per cent because of the fall in yields of most debt instruments.

Apart from the exit option that enables selling the NCD in NSE, company may also announce buybacks from time to time and investors can voluntarily retire their NCD.

Risks
The limited track record of L&T Finance in some of its segments may create business risk. There are signs of revival in segments in which L&T Finance has exposure, but it is uncertain if the recovery will uncertain.

The NPAs have continuously trended up for the last four years from 0.1 per cent to 2 per cent and may continue to put pressure on company’s earnings for next few quarters.

Source: Hindu Business Line
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Jindal Cotex fixes IPO price band at Rs 70-75 per share

2009-08-22T09:50:00.002+05:30

Textile company Jindal Cotex, which will come out with its initial public offer on August 27, has fixed the price band for the issue at Rs 70-75 per share to raise about Rs 94 crore.

The Ludhiana-based company, which would issue 1.24 crore shares for public subscription, has fixed the price band for the issue at Rs 70-75, the company said in a press release.

At the upper price band the company expects to garner Rs 93.40 crore while at the lower price band it hopes to raise Rs 87.17 crore.

Up to 50 per cent of the issue would be allocated to Qualified Institutional Buyers, the release said.

The funds of the forthcoming issue would be used mainly for entering technical textile space through investment in wholly-owned subsidiaries -- Jindal Medicot and Jindal specialty Textiles, it said.

Jindal Cotex is engaged in manufacturing acrylic and polyester yarns, including polyester viscose, polyester cotton, and combed and carded yarns, used in the making of apparels, suiting and knitted fabrics.
Source : Economic Times

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OIL India IPO Trends, Analysis and Review

2009-08-22T09:44:00.003+05:30

OIL India IPO has been announced as the next Big IPO from Government sector.
OIL India Ltd is the second biggest Oil and Natural Gas company in India.
The company has already filed DHRP with SEBI. Govt of India has decided to sell 10% Equity in this company and promoter stake will fall to 78% after the offering.

IPO Date: Will open for Subscription on September 7 2009 and closes on 11th Sept.
Price Band: Yet to be announced.Rs.1200 to Rs. 1450

We have posted research Reports here : <Oil India IPO Review and Analysis
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ONGC Videsh IPO,OVL IPO

2009-08-22T09:18:00.003+05:30

ONGC Videsh IPO , OVL IPO Subscription , Price , Date
ONGC may soon launch IPO for its subsidiary ONGC Videsh Ltd ( OVL ) .

Government is divesting in its jewel companies this year. After many successful IPOs , Government may announce this offering to raise funds for overseas Buy.
ONGC Videsh Ltd is the company engaged in Oil and Gas exploration and it has operations in many countries directly and also through JV.
Operations run through Africa , Asia , America , Russia.
The company has assets in Russia (Sakhalin-I), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia (Mansarover Energy Project), Sudan (Greater Nile Oil Project and Block 5A) and Venezuela (San Cristobal Project).
And many projects are in Exploration Phase.
IPO Subscription and other information will be posted here.

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Sahara Prime City IPO - The 1 Billion $ issue

2009-08-22T09:16:00.001+05:30

Sahara group Real Estate Arm , Sahara Prime City Ltd is in the verge of filing Draft prospectus for a propsed IPO Offering. Company plans to raise Rs. 5000 crores for exansion plans using this IPO. This offer can be expected in the year end.
Real estate hasn’t seen any ipo in the past 1 year due to adverse market condition.
Ambey valley project is however not under this Sahara Prime City Ltd.
All other details about this Sahara Primecity IPO will be posted soon.

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Cox & Kings prepares again for IPO issue

2009-08-22T09:14:00.000+05:30

With the primary market showing signs of revival, one of India’s oldest tour operators, Cox & Kings, has initiated the process for an initial public offering (IPO) and has filed the preliminary draft prospectus with market regulator Sebi. The travel company had earlier planned to go for an IPO last year but was forced to shelve its plans because of adverse market conditions.

The scenario has now improved with Indian companies having raised over Rs 9,000 crore so far this year. Cox & Kings expects to raise $100 million through the IPO.

If the IPO materialises, Cox & Kings will be the third well-known listed company in the travel space. Interestingly, unlike travel industry’s sibling—hotels—not too many travel services are listed.

The other publicly quoted travel firms include Thomas Cook and International Travel House. While Thomas Cook trades at Rs 53, International Travel House, owned by ITC, on Friday closed at Rs 97.65 on BSE.

Cox & Kings median sale of 18.49 million shares would comprise a fresh issue of 15.45 million shares and sale of 3.04 million shares by its current financial investors, Lehman Brothers, Deutsche Securities and Merrill Lynch. The company has also reserved two lakh equity shares for its employees.

The issue would constitute 29.4% of the fully diluted post-issue paid-up capital of the company, Cox & Kings said in a media statement. It added that it was considering a pre-IPO placement. India Infoline is the sole book running lead manager to the issue.
Source : Economic Times

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JSW Energy IPO likely in two months

2009-08-22T09:10:00.001+05:30

Sajjan Jindal-led JSW Energy is looking to come out with its initial public offering in the next two months to raise about Rs 3,000 crore for partly funding its expansion plans.

"Provided we get the necessary regulatory approval, we may come out with an IPO in the next two months," JSW Group CFO Seshagiri Rao said in an interview.

The company had last week filed for the Draft Red Herring Prospectus (DRHP) with SEBI to hit the capital market. The market watchdog normally takes 30 days to give its nod for the initial public offer (IPO), he said, adding "subject to that JSW Energy may come out with the offering."

The company is targeting to install a capacity of 11,000 MW in the next five years which would entail an investment of about Rs 55,000 crore.

Currently, JSW Energy is setting up a 3,200 MW super critical thermal power plant entailing an investment of Rs 15,000 crore at Ratnagiri in Maharashtra.

The company had earlier withheld its plans to come out with an IPO citing weak market condition amid the global financial meltdown.

With improved market conditions, Adani Power and NHPC were the first two power firms to give shape to their IPO plans. While, Adani Power got listed today at Rs 105 on the Bombay Stock Exchange, a premium of five per cent over its issue price, state-run NHPC is expected to get listed soon.
Source : Economic Times

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Buy Apollo Tyres, target of Rs 53: Sharekhan

2009-08-21T20:49:00.002+05:30

Sharekhan has maintained its buy rating on Apollo Tyres with a target price of Rs 53 in its August 20, 2009 research report.

"According to media reports, Apollo Tyres is contemplating to increase tyre prices in the wake of rising raw material prices. Price of natural rubber, the key input for tyre manufacturers, has inched to around Rs102/kg at present from the low of around Rs70/kg in January 2009. At the current market price the stock is trading at 5.4x its FY2011 earnings and EV/EBITDA of 2.5x. We maintain our Buy recommendation with price target of Rs 53," says Sharekhan's research report.
Source : Money Control

Check out our report on Apollo Tyres

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5 smart ways to tackle Income Tax

2009-08-21T20:25:00.002+05:30

Submitting proof of investments is an extremely traumatising affair for all salaried individuals. First, you have to deal with the painful task of collecting and organising hordes of receipts. To top it off are the anxiety levels of not knowing if you’ve invested enough and worrying about how much money you’ll lose to tax in the following couple of months.

Naturally, we all have tax consultants, who will tell us what we need to do to ensure the least possible impact of tax, but it’s even more helpful if we, ourselves are very clear on exactly how much of our salary can we claim as exempted from tax. This way, we know exactly how much we must invest to minimise tax liability. Make no mistake, investing in order to save tax is absolutely necessary, but knowing deductibles on your salary ensures you don’t overdo your tax saving investments.

Basic salary: high or low?
If you earn a salary of Rs 1,00,000 per month, you are definitely aware that the basic amount in your salary is taxable. A high basic salary will come in good stead when you retire, but the flip side, as mentioned above is the tax liability of the same. Let’s say your basic is Rs 40,000. That would make your HRA as 20,000, which can only be claimed as tax deductible if you submit proof of rent to your employer.

Allowances: Double edged sword
Take note that any allowances included as a fixed component in your salary, like petrol, mobile phone bills, etc will be tax deductible. However, if the same were being given to you separately as reimbursement, these aren’t deductible for tax. So, if your pay package has reimbursements as opposed to allowances and that too separate from your monthly package these can be claimed as exempt from tax.

Provident Fund contribution
The Provident Fund contribution from your salary is deductible. You don’t really need to specify this in your declaration. This is something your employers factor in when deducting tax. If you have switched jobs and requested for withdrawal of PF, then the number of years of service will determine whether that withdrawn PF amount is taxable or not. According to the law, PF withdrawal after continuous service of 5 years (with single or multiple employers) is exempt from tax. So, if you’ve worked for less than 5 years, then the interest component on PF is treated as ‘income from other sources’ and is hence taxable. Also, the employer’s contribution is considered as income and is therefore taxable.

Home loans: boon and bane
There is one oft-used and essential tax-saver – home loans. What is commonly done (if both partners are working) is that one partner shoulders the EMI responsibility while the other handles the household expenses. Instead what can be done is that both the partners become co-applicants to the loan. This mean each can claim the rebate individually. Let’s say, the rebate to the loan is Rs 1,00,000 plus another lakh on principal amount, if you have a co-applicant to the loan, then each of you can individually claim Rs200,000 (that’s Rs400,000 in total). Use the rest of your taxable income for some sensible investment then. Note though, home loan tax benefits will come to both the co-applicants only if each has a source of steady income (and proof of payment made is submitted by both). Dependant partners can be co-applicants but won’t avail tax benefits if they aren’t earning.

And, finally education
Another expenditure to take note of, is the amount you spend on your child’s education. In your child’s school fees, there is the tuition fee component, which is entirely tax deductible (under Section 80 C). So keep those receipts handy.
These are some basic deductions, applicable to salaried individuals that need to be factored in before you invest (last-minute) for ‘tax purposes’.
Article Source : UTVi

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Stock Research KS Oils

2009-08-21T20:20:00.002+05:30

Stock : KS Oils

Acquired an edible oil refinery in Haldia port from Kolkata-based Ambo Agro Products
Deal is valued in the range of Rs 125-150 cr

Factors to watch
Edible oil companies are looking at buying refineries nearer to ports
Nearness to port to reduce transportation costs and take advantage of falling crude oil prices
Sources said that debt to fund 2/3rd of the acquisition and the rest from internal accruals
First refinery in east India for the company
The refinery has a capacity of nearly 500 tonne crushed per day (tcpd)
The acquisition will have a total refining capacity of 1,800 tcpd
Newly acquired unit will sell refined oil in WB, Bihar, Jharkhand, Orissa, North East and UP
Plans to become an integrated edible oil player in SE Asia and a leading FMCG player in India
The acquisition is a part of backward integration
To refine crude palm oil produced at the company’s palm plantations in Indonesia and Malaysia
Major portion of edible oil companies revenues’ are generated in second half of the financial year

About the company:

Largest rapeseed crusher in India
Manufactures products in mustard oil, soybean oil and palm oil categories
Produces brands like Kalash, Double Sher, K S Gold
Enjoys 7% market share in the overall mustard oil segment
Has a 25% market leadership in branded mustard oil
Current installed capacity of 1,475 MT/day
Presence across eastern and central India
Source: UTVi

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Intraday Tips and Market Outlook for 21st Aug.

2009-08-21T06:30:00.002+05:30

US Markets ended positive.
Europe ended positive too.
Asia has opened mixed.
Expect a flat to positive opening on the Indian Stock Markets.
The logical target for the Sensex is 14915-14685-14234 and the resistance is at 15256-15575
Nifty: (4453) the logical target for the Nifty is at 4359-4247 and resistance is at 4533-4632

Day Trading Ideas :

RNRL : Buy above 80 for targets of 81.50 and 83.25. SL of 78.90

MNM : Buy above 775 for targets of 782 and 790. SL of 771

LNT : Buy above 1490 for targets of 1500 and 1510. SL of 1485

Gujrat NRE Coke : Buy above 54 for targets of 55 and 56.25. SL of 53.10

Happy Investing !
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Add Sterlite Ind, target Rs 684: IIFL

2009-08-21T06:18:00.001+05:30

IIFL has recommended an add rating on Sterlite Industries with a 12-month price target of Rs 684 in its report dated August 20, 2009.

"Sterlite has raised its bid for ASARCO’s acquisition with the upfront cash component now at USD 2.1 billion along with an unchanged USD 207 million in staggered note payments. This bid would be value-neutral at long-term copper prices of USD 4,500/tonne. Current copper price is at USD 6,100/tonne, thereby leaving headroom for further increase in the bid-amount. ASARCO falls within the highest quartile in terms of cost of production. This acquisition would be a departure from the company’s strategy of being cost leader in all its businesses. Sterlite is already executing a number growth projects in India with potential of further expanding its capacity in power business which in our view could be more value accretive as compared to ASARCO’s acquisition. Add Sterlite Industries, with 12-month price target of Rs 684," says IIFL's report

Source: Money Control
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Add Housing Development Finance Corporation: IIFL

2009-08-21T06:13:00.001+05:30

IIFL has recommended an add rating on HDFC in its report dated August 20, 2009.

"Over the past few years, HDFC has transformed itself from a pure mortgage player to a financial services conglomerate that derives 44% of its value from non-mortgage businesses. HDFC has three distinct strengths that distinguish it from an average bank or NBFC. Firstly, it has a low-cost and diversified funding base. Its AAA credit rating and familiarity amongst retail depositors allow it to borrow at very competitive rates. Secondly, its operating costs are by far the lowest amongst all financial intermediaries in India and perhaps globally. And finally, its credit costs have consistently remained low and are also the lowest in the industry. Growth prospects remain bright for all businesses and investors can trust HDFC for flawless execution. This, in our view, justifies the stock’s premium valuation of 4.0x FY11ii P/B," says IIFL's report.

Source : Money Control
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Buy Bharti Airtel, target of Rs 453: Sharekhan

2009-08-21T06:09:00.001+05:30

Sharekhan has maintained its buy rating on Bharti Airtel with a target price of Rs 453 in its August 19, 2009 research report.

"For April-June 2009 quarter, Bharti Airtel (Bharti) has been successful in strengthening its gross revenue (GR) market share to 33.8% and maintaining its subscriber market share at 24%, despite the tough competition due to entry of new players. We maintain our 'Buy' recommendation and price target of Rs 453 for the stock," says Sharekhan's research report.

Source : Money Control
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Intraday Tips and Market Outlook for Aug 20th

2009-08-20T06:10:00.000+05:30

US markets ended in green.
Europe ended mixed.
Asia has opened flat.
Expect the Indian Markets to open flat to positive.

NIFTY Current Spot : 4394.1
Support:4284.25 & 4339.15
Resistance: 4463.25 & 4532.45

Adani Power is listing today. Grey Market premium is Rs 6 -8/-
Day Trading Ideas :

IFCI: Buy above 52 for targets of 53.10 and 54. SL of 50.95

NTPC:Buy above 203.10 for targets of 205 and 206.50. SL of 201.10

RPower: Buy above 156 for targets of 158 and 160. SL of 154.10

Intraday Tips and Market outlook for 19th Aug

2009-08-19T08:38:00.000+05:30

US Markets ended higher.
Europe ended higher.
Asia has opened flat to negative.
The logical target for the Sensex is 14731-14234 and the resistance is at 15256-15575
Nifty: (4559) the logical target for the Nifty is at 4325-4247 and resistance is at 4533-4632

Day trading Ideas :

Adlabs : Buy above 320 for targets of 326 and 335. SL of 314

RNRL : Buy above 82 for targets of 83 and 84. SL of 80.50

IFCI : Buy above 52 for targets of 53.50 and 54.25

Happy Investing.
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Intraday Tips and Market outlook for August 18th

2009-08-18T06:45:00.002+05:30

US markets ended in deep red.
Europe also ended in red.
Asia has opened Flat.
Expect the Indian Markets to open flat to positive.

NIFTY Technicals :
Current Spot : 4387.9
Supports : 4341.6 & 4295.4
Resistance : 4467 & 4546.2

Day Trading Ideas :

DLF : Buy above 368 for targets of 375 and 379. SL of 359

ICICI Bank : Buy above 705 for targets of 715 and 722. SL of 699

RNRL : Buy above 79 for targets of 81 and 83. SL of 77.50

Market outlook and Intraday Tips for August 17th.

2009-08-17T07:01:00.002+05:30

US markets ended lower.
Europe also ended in red.
Asia has opened in deep red.
Expect the Indian Markets to have a gap down opening.
The support for the Sensex is 15217 and the logical technical target is at 15621-15724-15880
Nifty: (4580) the support for the Nifty is at 4520 and logical technical target at 4622-4652-4594

Day trading Ideas :

Jet Airways : Buy above 265 for targets of 272 and 276. SL of 261

Bhushan Steel : Buy above 930 for targets of 940 and 950. SL of 922

IFCI : Buy above 51.50 for targets of 52.25 and 52.90. SL of 50.90

NIFTY Technicals and Weekly Free Stock Tips

2009-08-16T08:44:00.003+05:30

NIFTY had a relatively good run this week compared to last week.
The week ahead looks good.

NTFTY Trin : 2.294
Current spot : 4580.05
Support : 4425 and 4375
Resistance : 4641 and 4729

We have Adani Power Listing on Thursday i.e. 20th.

Weekly Stock Tips :

Bharti Airtel : Buy above 410 for targets of 430 and 455. SL of 395

Cairn India : Buy above 250 for targets of 260 and 270. SL of 242

GMR Infra : Buy above 135 for targets of 145 and 152. SL of 130

IndusInd Bank : Buy above 95 for targets of 103 and 110. SL of 89

NIFTY Autogenerated technical.

Intraday Tips and Market outlook for 14th August

2009-08-14T07:45:00.003+05:30

US markets end in green.
Europe ended higher.
Asia has opened higher.
Expect the Indian Markets to open higher.
The support for the Sensex is 15235 and the logical technical target is at 15724-15880
Nifty: (4605) the support for the Nifty is at 4550 and logical technical target at 4652-4594

Day Trading Ideas :

Adlabs : Buy above 330 for targets of 334 and 337. SL of 326

Cairn India : Buy above 244 for targets of 249 and 253. SL of 239

DLF : Buy above 402 for targets of 406 and 410. SL of 397.

City Union Bank an underperformer: Karvy

2009-08-14T07:43:00.001+05:30

Karvy Stock Broking has maintained its underperformer rating on City Union Bank with a target price of Rs 19 in its August 13, 2009 research report.

"In Q1FY10, City Union Bank (CUB) reported marginal de-growth of 0.7% (Y/Y) in net interest income to Rs 563 million compared to our estimates of Rs 604 million; deviation from our estimates was due to higher cost of deposits. We maintain our Under Performer rating on the stock with a price target of Rs 19 at 1.1x adjusted book value FY11. At current price, the stock quotes at 1.33x ABV FY11," says Karvy's research report.

Source : Money Control

Add Ambuja Cements, target of Rs 110: IIFL

2009-08-14T07:42:00.000+05:30

IIFL has maintained its add rating on Ambuja Cements with a target price of Rs 110 in its August 13, 2009 research report.

"We reiterate our positive view on Ambuja Cements (ACL), post our meeting with the management. The company’s 2.2mtpa Bhatapara clinker expansion is nearing completion and is likely to be commissioned in September 2009. Post stabilisation of this unit in 1QCY10, ACL will stop buying clinker for its Farakka unit. High-cost coal inventory was exhausted in 2QCY09 and ACL’s average price of imported coal is likely to be 25% lower in 3QCY09 compared to 2QCY09 (40% of the coal ACL uses is imported)."

Source : Money Control.

Hold Shree Cements, target of Rs 1750: Sharekhan

2009-08-14T07:36:00.000+05:30

Sharekhan has maintained its hold rating on Shree Cements with a target price of Rs 1750 in its August 12, 2009 research report.

"Despite the overall slowdown in the economy, the revenue of the company grew by a robust 29% in FY2009. We maintain our Hold recommendation on the stock with price target of Rs 1,750 (valued at EV/tonne of USD90)," says Sharekhan's research report.

Source : Money Control

Market Outlook and Intraday tips for 13th August.

2009-08-13T08:01:00.002+05:30

US markets ended higher.
Europe also ended in green.
Asia has opened positive with a gap up.
Expect the Indian markets to have a gap up opening.

NIFTY Current Spot : 4457.5
Support : 4391.45 & 4325.45
Resistance : 4491.4 & 4525.3

Day Trading Ideas :

MNM : Buy above 785 for targets of 786 and 798. SL of 777

LNT : Buy above 1434 for targets of 1450 and 1460. SL of 1428

RNRL : Buy above 78.10 for targets of 79.50 and 80.45. SL of 77.25

IFCI : Buy above 47 for targets of 48.15 and 49.35. SL of45.85

Intraday Tips and Market outlook for 12th August.

2009-08-12T05:53:00.003+05:30

US markets ended lower.
Europe also ended in red.
Asia has opened negative.
Expect the Indian Markets to open flat to negative.

NIFTY Current Spot : 4471.35
Support : 4409.9 & 4348.45
Resistance : 4521.8 & 4572.25

Day Trading ideas :

GVK Power & Infra : Buy above 47.10 for targets of 48.45 and 49.10. SL of 45.90

HDIL : Buy above 262 for targets of 265 and 269. SL of 258

Adlabs : Buy above 319 for targets of 325 and 331. SL of 315

Buy CMC, target of Rs 1084: Reliance Money

2009-08-12T05:38:00.001+05:30

Reliance Money has recommended a buy rating on CMC with a target price of Rs 1084 in its August 7, 2009 report.

"CMC is witnessing significant business traction and profitability in the last few years with its renewed business focus on high margins business coupled with “Joint-goto- Market” strategy with TCS is also playing a big role in the business transformation. In the last three fiscals over FY07-09, CMC has recorded EPS CAGR of 29%. We recommend a 'BUY' with 12 months target Rs 1084, at our target price stock will be valued at 11x FY11E," says Reliance Money's research report.

Source: Money Control.

Buy KSK Energy, target of Rs 225: IIFL

2009-08-12T05:36:00.000+05:30

IIFL has recommended a buy rating on KSK Energy with a 12-month target of Rs 225 in its August 11, 2009 report.

"KSK Energy (KSK) builds and operates power plants on the ‘group captive generation’ principle, making its revenue model a unique one in India. It currently has 144MW capacity operational, and is set to commission an additional 675MW through 3QFY10-1QFY11 in phases. Successful completion of these projects would showcase KSK’s ability to undertake 3.6GW projects at Chhattisgarh, and enhance visibility of projects for a further 6GW."

Source : Money Control.

Grasim an underperformer, target Rs 2303: Karvy

2009-08-12T05:35:00.001+05:30

Karvy Stock Broking has maintained its underperformer rating on Grasim Industries with a revised price target of Rs 2303 in its report dated August 11, 2009.

"We have revised our earning estimates and price target upward due to delay in cement price decline and cost reduction. However despite earning upgrade; the company is currently trading at PER multiple of 11.3x and EV/EBIDTA multiple of 5.3x on FY11E earning. Looking at bleak outlook for cement and VSF segment; we maintain our underperformer rating with revised target price of Rs 2,303 based on our SOTP valuation," says Karvy Stock Broking's report.

Source : Money Control.

Hold Sanwaria Agro Oils, target of Rs 72: KRChoksey

2009-08-12T05:31:00.001+05:30

KRChoksey has maintained its hold rating on Sanwaria Agro Oils with a price target of Rs 72 in its report dated August 10, 2009.

"The consumption of soy oils is outstripping the production and also use of oils for bio fuels will be a key bullish factor for increasing demand of soy oil. Also, margins for SAOL will improve with production of production of soyabean derivative products having higher margins. With this, we maintain our ‘HOLD’ recommendation on Sanwaria Agro Oils, with a target price of Rs 72 giving an upside potential of 10% from its current levels," says KRChoksey's report

Source: Money Control.

Cinemax India: Buy

2009-08-12T05:29:00.001+05:30

Investors with a two-year horizon can buy the shares of Cinemax India, considering that the worst may be over for the company and the multiplex industry, with a string of releases charted for the next few months, steep increases in footfalls, and occupancies and increases in food and beverage revenues.

At Rs 50.50, the stock trades at about 14 times its expected 2009-10 earnings and 11 times its next year's estimates; on very conservative assumptions. This is at a discount to Fame India, despite the company's larger scale of operation.

The past two-three quarters were exceptionally challenging for multiplexes with the Mumbai terror attacks reducing footfalls and occupancies, the IPL-2 keeping audience glued to the small screen and the standoff with distributors over quantum of revenue sharing, delaying fresh releases.

For the June quarter, the company's revenues fell by over 18 per cent over June 2008 to Rs 25.3 crore, while EBITDA fell by 88 per cent to Rs 0.53 crore.

Many other multiplex operators incurred losses even at the EBITDA-level.

But with these one-off challenges behind it, the prospects of improvements over the next few months are bright. Recent reports suggest that in July, after the multiplex-distributor tussle ended, there has been a doubling of monthly box-office earnings.

Cinemax, which has 74 screens across 24 locations and many in the lucrative Mumbai market, has benefited from recent releases. Multiplex players have benefited from the large draw such movies as New York, Kambakt Ishq and Love Aaj Kal have had. Over 50 movie releases are expected over the next two quarters (that were held back due to the tussle), starring some big names in Bollywood.

Some big-ticket ones such as Kaminey, 3 Idiots, London Dreams, and Kites are expected to set the box-office ringing. Surprisingly, even English movies such as Terminator Salvation and The Hangover are reportedly running at 60-70 per cent occupancy.

Cinemax has seen its average ticket price decline to Rs 114 in the June quarter from the Rs 125 levels earlier. But the average spends on food and beverages have witnessed an increase to Rs 31 from Rs 29. As occupancies increase to 25 per cent plus levels on the back of higher footfalls and hit movies, the ticket price is set to increase.

The company, despite the slump in the June quarter, hopes to achieve an EBITDA margin of 25 per cent for the full year and an occupancy level of 25-27 per cent.

Source : Hindu business Line.

Supreme Industries: Buy

2009-08-12T05:26:00.001+05:30

nvestors with a risk appetite for commodity stocks can buy the stock of plastic products maker Supreme Industries (Rs.295). The company’s diversified product profile — consisting of pipes, packaging and industrial products — makes it a beneficiary of spending in segments such as irrigation, housing and infrastructure.

A relatively stable outlook for raw material costs and demand, after several challenges last year, make this a reasonable time to pick up the stock. The company’s current market price discounts the trailing four quarter earnings by eight times, at a par with players such as Sintex Industries.
Product profile

Supreme Industries operates across four segments — plastic pipes, which contribute to 40 per cent of total turnover, packaging (27 per cent), industrial (21 per cent) and consumer products (12 per cent).

Pipes made by the company find extensive use in irrigation, bore-wells, portable water supply, plumbing, drainage, underground sewerage, rainwater harvesting and water management. A derived demand could come from the increase in rural irrigation as well infrastructure outlays. Replacement of metal pipes with plastic is also a positive factor for the company.

The packaging division caters to a wide spectrum of user industries, such as sports goods, electronics, food items, textiles, healthcare, toys, insulation and construction. Offerings in this segment range from packaging film to protective packaging material. The company also makes cross laminated films or tarpaulin sheets which have agricultural and industrial applications.

In the industrial products segment, Supreme Industries manufactures dashboards and other components for automobile companies (Tata Motors and Mahindra and Mahindra being some of the important customers) and equipments for consumer electronic goods such as LCD TVs and air-conditioners.

That apart, it also manufactures industrial craters for storage of textiles, fisheries, food items and soft-drinks. PepsiCo India and Coca Cola India are major customers. In the consumer products division, the company is a market leader in the moulded furniture segment, which offers scope for better margins.

Recently, the company expanded its production capacity of cross-laminated film and products, at its Halol, Silvassa, Gadegaon and Pondicherry plants, from 9000 TPA to 13000 TPA. It has also increased the capacity of injection moulding machines and ancillary equipments and has started a new factory at Jamshedpur for the ‘World Truck’ project of Tata Motors. Similarly, it has expanded plant capacities in Gadegaon and Jalgaon to launch varieties of plastics piping systems.
Financials

While operating profit margins from segments such as pipes and packaging are vulnerable to raw material cost increases, Supreme Industries has managed to hold its margins at a steady 11-12 per cent in recent years. Volume driven growth in the pipes segment has been complemented by reasonable pricing power in the industrial and consumer segments.

It has managed a compounded annual sales growth of 9 per cent and operating profits growth of 13 per cent in the last three years. However, performance in 2008-09 did take a brief knock from the ups and downs of the commodity cycle. The company ended 2008-09 with a sales growth of 26 per cent and net profits growth of 82 per cent, but slipped briefly into losses in the December 2008 quarter mainly due to unusual fluctuations in raw material prices — polypropylene prices fell steeply from $1800 a tonne in July 2008 to $625 by end of the year. (Major raw materials consumed are PVC resin, polyethylene and polypropylene and they account for nearly 80 per cent of the total raw materials cost.) That prompted order cancellations, as the company’s customers expected a further fall in the prices of plastic products and opted to wait before making fresh purchases.

With commodity prices improving along with the crude oil cycle, polypropylene prices have since moved back to $940 levels. Net sales and margins started improving from the March quarter as material prices began to stabilise and customers resumed their orders. The expansion in the past year, pick-up in demand and a tilt in product mix towards high margin products, point to stability in margins in the coming quarters.
Risk factors

Unlike its peers, such as Time Technoplast and Sintex Industries, Supreme Industries has negligible exposure to foreign currency fluctuations. More than 60 per cent of the raw materials are domestically procured and less than 10 per cent of its total turnover is through exports to countries such as the UK Australia and New Zealand.

However, another bout of volatility in crude oil and thus polymer prices could destabilise margins.

Source : Hindu Business Line.

Dhampur Sugar Mills (Rs 77.65): Buy

2009-08-12T05:23:00.001+05:30

We recommend a buy in Dhampur Sugar Mills from a short-term perspective. It is evident from the charts of the stock that it has been trending upwards since November 2008 low of Rs 19.50. Since then, it has been forming higher peaks and higher troughs. In mid-July, the stock took support around Rs 50 and bounced resuming its long-term uptrend. The stock surpassed a medium-term resistance around Rs 72last week and is currently trading well above 21- and 50-day moving averages. The intermediate-term uptrend from March low is intact. We notice that there is an increase in weekly volume over the past four weeks. Both daily and weekly relative strength index (RSI) are featuring in the bullish zone. The daily as well as weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook is bullish on the stock. We anticipate it to move up until it hits our price target of Rs 85. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 73.

Source : Hindu Business Line

Intraday Tips and Market outlook for 11th August.

2009-08-11T07:35:00.003+05:30

US markets ended lower.
Europe ended mixed.
Asia has opened mixed.
Expect the Indian Markets to open flat to positive.

NIFTY Current Spot : 4437.65
Support : 4370.75 and 4304
Resistance : 4533.4 and 4629.25

Day Trading Ideas :

RNRL : Buy above 77 for targets of 78.50 and 79.85. SL of 75.25

ICICI : Buy above 720 for targets of 726 and 734. SL of 712

IRB Infra : Buy above 176 for targets of 178 and 181. SL of 172