Add Housing Development Finance Corporation: IIFL

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
Get Free SMS Update on your mobile phone Subscribe
Also Dont forget to subscribe to email news letter as you shouldn't miss any thing !

Read the full post...

Some good sctock Picks from : Banking, Insurance, Retail and Airlines Sector.

The Liberalisation Play
Government moves out, lets in private capital, it works more efficiently and delivers great returns. That’s liberalisation. The new government has the mandate to open up sectors like banking, insurance, retail and airlines to private investors. When it does, be there.

Strategy: Simply select the best performers in these sectors.

Crisil: The 800-pound gorilla of rating agencies, it rates 1,000 firms today. If the financial sector is liberalised, that number could go up to 10,000. Crisil has retained earnings of 75 percent with an ROCE of 42 percent. It is the fourth largest credit rating agency in the world.

ICRA: There is room for both Crisil and ICRA in the space. At Rs. 788, the company is getting close to its 52-week high of Rs. 900. But the number doesn’t capture the potential arising from RBI’s new rule that all debt products be rated.
HDFC Bank: A cautious and solid bank, it is safe because its government bond holdings are 3 percent over the statutory liquidity ratio (SLR) requirement.Fiscal liberalisation will benefit this bank because it is in a position to scale up quickly. At Rs. 1,569, the price looks steep based on 2009-10 P/E multiple of 4. This is very much the stock for those who like conservative growth.

Kingfisher Airlines: The company has a debt-equity ratio of 3:1. And it makes losses. If foreign capital is allowed, you can be sure of one thing: Vijay Mallya will make sure Kingfisher gets it. That will make life a lot easier for the airline.

Oracle Financial: It suffered when oreign banks went broke. But its earnings jumped 77 percent and revenues rose 23 percent in 2008-09. As its clients come off the ventilator, they will need to be rewired. Oracle Financial will be waiting.

Risk: The ambiguity of regulatory changes, however, gives them some additional risk. Given that US banks have behaved so badly, it is going to be hard for government to liberalise the financial sector.


Source : Forbes India.

Read the full post...

Intraday tips and market outlook for 6th April.

US markets ended flat.
Europe ended negative.
Asia has opended positive.
Expect Indian Markets to have a gap up opening.
The support for the Sensex is 10150 and the resistance to the up move is at 10708-11295
Nifty: (3211) the support for the Nifty is at 3150 and the resistance to the up move is at 3451

Day Trading Ideas -

IFCI
Buy above 22.10 for taregst of 23.45 and 24.05
Sell below 20.50 for taregst of 19.90 and 19.25

HDFC Bank
Buy above 1060 for targets of 1071 and 1084
Sell below 1010 for targets of 995 an 986

Sesa Goa
Buy above 106.10 for targets of 107.45 and 108.50
Sell below 103.25 for targets of 102.10 and 101.25

Happy Investing.

Read the full post...

Intraday tips and market outlook for 2nd April.

US markets rallied.
Europe also rallied.
Expect Asian markets to open flat to negative.
Indian markets may also follow the foot prints of Asian markets.
The support for the Sensex is 9520 and the resistance to the up move is at 10050-10201
Nifty: (3060) the support for the Nifty is at 2960 and the resistance to the up move is at 3108.

Day Trading Ideas -

Sesa Goa
Buy above 102.10 for targets of 104.25 and 106.50
Sell below 97.45 for targets of 95.20 and 93.45

HDFC
Buy above 1005 for targets of 1012 and 1019
Sell below 989 for targets of 982 and 976

TCS
Buy above 551 for targets of 558 and 563
Sell below 546 for targets of 541 and 536

Read the full post...

Market outlook and Intraday tips for 27th Jan.

US markets ended marginally higher.
Europe cheers on Indian Re-Public Day as it closed a higher note.
Asia is bonded to open flat to positive.
Expect Indian Markets to open in the same manner.

The target for the Sensex is 7850 and the resistance to the up move is at 8929-9020

Nifty: (2679) the target for the Nifty is at 2500 and the resistance to the up move is at 2741-2765

Expect markets to remain volatile throughout today.

Today we have a meet of Monetary policy so look out for Banking Stocks.

Day trading Ideas -

ICICI Bank

Buy above 367.55 fop targets of 372 and 377

Sell below 349 for targets of 345 and 340

HDFC bank

Buy above 879 for targets of 886 and 892

Sell below 865 for targets of 861 and 656

IFCI

Buy above 18.20 for targets of 18.90 and 19.30

Sell below 17.50 for targets of 16.95 and 16.50

Unitech

Buy above 27.50 for targets of 28.50 and 29.10

Sell below 26.10 for targets of 25.50 and 24.90

Happy Investing !

Read the full post...

Intraday Tips and Market Outlook for 8th Dec.

US markets had ended positive.

Asia has opened positive. 

Expect Indian markets to open a positive note. We can see a gap up opening of more than 200 points on Sensex.

Crude is at almost 4 years low so can this be a good news for few stocks ? Yes. 

Many stocks can benefit from this.

Levels on NIFTY are , support at 2650 and resistance for upmove at 2945 and 3150

Day Trading ideas.

SBI

Buy above 1145 for targets of 1152 and 1159

Sell below 1131 for targets of 1122 and 1113

ICICI Bank

Buy Above 362 for targets of 368 and 373

Sell Below 348 for targets of 342 and 339

HDFC Bank

Buy avove 898 for targets of 908 and 915

Sell below 871 for targets of 865 and 858

Reliance

Buy above 1126 for targets of 1131 and 1136

Sell below 1110 for targets of 1106 and 1100

Happy Investing!

Subscribe for free Email Updates - Click here.

Free SMS Updates subscribe - Click here.

Special Search for All Stock Tips.

Read the full post...

Mutual Funds to eye large cap stocks.

A Reuters poll says that mainly large caps stocks are a attraction of domestic Mutul Funds Companies.

Indian large caps and financial sector stocks are likely to attract them for next 3-4 months as they hope for stock market rebound.

Three-fourths of the respondents in the Reuters Asset Allocation Poll conducted between Nov. 21 and 25 said they would cut the amount of cash they hold because they expect local stocks will rise during the period. 

Three of the eight fund houses polled said Indian shares are fairly valued, while an equal number said they were undervalued. 

A fourth of bond fund managers are likely to cut cash levels as invest in bonds on hopes of more rate cuts, the poll showed.

Reading this I would eye on Banking and Financail stocks. The stocks which I would shop are SBI , Yes Bank , HDFC Bank , ICICI Bank and Indusind Bank.

Read the full post...