Future outlook of Satyam Computer

Yesterday the badly beaten up stock Satyam which was down over 35% is up today 10% odd.

It had announced to buy Maytas Infra day before yesterday (the day when Satyams ADR was down over 55%). But yesterday it plans to cancel the deal.

Why did they do so? (Canceled the deal off)

Satyam didn’t expect the investors to have this kind of reaction, investors sentiments turned out to be negative. So they had to cancel the deal off.

What was the cost to Satyam?

Satyam actually lost 590 crores from its market cap. in just one day.

Why did Satyam want to acquire a stake in a Real Estate company?

Actually the answer is that Ramalinga Raju, a cofounder of SATYAM and his family had 31% stake in Maytas Infra. They wanted to diversify and expand their business line.

Actually if the deal would have happened Satyam would be at a loss as the condition of the real estate in India is worst. See Unitech & HDIL for example.

The future of the stock looks bright if available within 152 – 158 range now.

Happy Investing.

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Intraday tips and Market outlook for 18th Dec.

US markets ended volatile in red.

Europe was trading mixed. Asia opened weak but now has picked up.

Expect Indian markets to have a flat to negative opening.

Satyam takes a U turn by canceling the deal with Maytas Infra.

Markets can go either ways depends on FII’s buying and profit booking.

The support for the Sensex is 9600-9460 and the resistance to the up move is at 9800

Nifty: (2954) the support for the Nifty is at 2902-2883-2795 and the resistance to the up move is at 3000

Day Trading Ideas.

Satyam

Buy Above 162.90 for targets of 168.50 and 173.90

Sell below 155 for targets of 151 and 148.50

Punj Llyod

Buy Above 161 for targets of 164 and 168

Sell below 154 for targets of 151 and 149

LNT

Buy above 791 for targets of 796 and 801

Sell below 770 for targets of 765 and 761

RNRL

Buy Above 49.50 for targets of 50.90 and 52.40

Sell below 47.60 for targets of 46.50 and 45.80

Happy Investing.

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Intraday tips and Market outlook for 17th Dec.

US markets ended a positive note.

Europe ended flat. Asia has opened a bit higher on an average of 1%.

Indian markets are bonded to open higher.

Satyam Computers acquires 51% stake in Maytas Infra and 100% stake in its property. The deal is of whooping 1.6 Billion USD.

Yesterday Satyam’s ADR was down over 35%. This is a stock which can give maximum movement in todays market.

The support for the Sensex is 9750 and the resistance to the up move is at 10000-10324

Nifty: the support for the Nifty is at 2920 and the resistance to the up move is at 3210

Day Trading Ideas.

Satyam Computers

Buy above 201 for targets of 209 and 219

Sell below 196 for targets of 184 and 179

Maytas Infra – (This Scrip generally doesn’t have much volume be careful before trading. Yesterdays volume is 275 shares)

Buy above 475 for targets of 482 and 486

Sell below 460 for targets of 456 and 449

HDIL

Buy above 148 for targets of 151 and 153

Sell below 140 for targets of 136 and 132

IRB Infra

Buy above 107 for targets of 109 and 111

Sell below 102 for targets of 99 and 97

Happy Investing.

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