Intraday Calls for 30th November

Market May open flat to positive and A Positive Rally Expected.

Sensex Support 18900, 18700 and Resistance 19100, 19220
Nifty Support 5580, 5500 and Resistance 5710.

Buy for Intraday:

Videocon Industries (420)
Essar Oil (207)
RPL (215)
Great Offshore (928)
Atlanta Ltd. (265)
Zee Entertainment (282)
PSTL (352)
Dish TV (82.7)
VSNL (558)
RCOM (665)
Gokaldas Exports (250)
Rajesh Exports (858)
Kajaria Ceramics (25)
GDL (139)

Others: Info Edge (Naukri), Mundra Port, Empee Distrilleries, Pondy Oxides, Prithvi Info, KPIT Cummins, HCL Tech, Ansal Buildwell.

*****Buy & Hold Sumeet Industries, Pondy Oxides & Ashok Leyland.

Good Luck

Intraday Calls for 28th November

Market may open flat to positive. Remain volatile with positive bias.

Buy for Intraday:

Mundra Port & SEZ (962)
IDFC (209)
IDBI (169)
Yes Bank (231)
PetroNet LNG (105)
Taneja Aerospace (164)
Inox Leisure (124)
Cinemax Ltd. (136)
Rolta India (684)
Ashok Leyland (47.6)
Hind Motors (41)
VSNL (534)
Praj Industries (205)
Pennar Industries (27.40)

Others: KPIT, Prithvi, Ricoh India, Hindustan Zinc, GE Shipping, Great Offshore.

Good Luck

Intraday Calls for 27th November

Market may open nagetive but recovers later and should trade flat to positively throughout the day.

Buy for Intraday:

New Listing : Mundra Port & SEZ may list around Rs. 1000 and can go up to Rs. 1100-1150/-.

Empee Distilleries (318) Target 335+ SL 315

Noida Toll (55) Target 58-60 SL 53

SREI Infra (190) Target 200 SL 186

IndiaBulls Financials (790) Target 825 SL 785

Jindal Stainless Steel (216) Target 225 SL 212

Ispat Industries (40.90) Target 42-44 SL 39

SAIL (265) Target 275 SL 260

GDL Ltd (145) Target 150+ SL 143

Mercator Lines (127) Target 135+ SL 125

NIIT Ltd. (134) Target 138-140 SL 132

Mphasis BFL (280) Target 290-295 SL 276

Ricoh Auto (39.5) Target 42-45 SL38

Others: Reliance Energy, RPL, JP Hydropower, Bhushan Steel, Sunflag Iron & Steel, Amara Raja.

***** Keep Accumulating Sumeet Industries, Pondy Oxides & Ashok Leyland.

Good Luck

Intraday Calls for 26th November

Market may see a strong rally at 1st half but may see some profit booking at the end.

Buy for Intraday:

RCOM (682)
Bharti Airtel (913)
India Infoline (1115)
Religare Enterprises (530)
JP Hydro (108)
NTPC (236)
PTC (150)
Gujarat NRE Coke (118)
DLF (868)
UNITECH (340)
ORBIT Corp (769)
Bank of Baroda (353)
UCO Bank (57.5)
Adani Enterprises (850)
Wipro (442)
Ispat Industries

Buy Ashok Leyland (40) For short term target of Rs. 55+

***** Accumulate Sumeet Industries & Pondy Oxides & Chemicals Ltd.
Hold Maximaa Systems.

Good Luck

IPO Talk: Jyothy Laboratories

Jyothy Laboratories is entering the capital market on 22nd November 07 with an Offer for Sale of 44.30 lakh equity shares, of Rs.5 each, in the band of Rs.620 to Rs.690 per share. Five, venture capitalists and PE investors, having acquired the shares of the company between 2000 and 2006, are now offloading their stake and completely exiting from the company. The cost of acquisition per share to these investors was at Rs.143 in 2000 and at Rs.291 in the year 2003.

The company has been struggling till FY 04, when it had stagnant topline and negative bottomline. In FY 05, though topline fell to Rs.271 crores from Rs.300 crores, PAT rose to Rs.33.27 crores, against net loss of Rs.23.08 crores, in FY 04.

The Offer for Sale is being made by five shareholders, of which ICICI Bank Canada and ICICI Bank UK, PLC is holding maximum number of shares, of about 28.66 lakh shares. These shares were acquired by them in the year 2006, from original allottees like Canzone Ltd., South Asia Regional Fund and CDC Investment Holdings.

The company is an FMCG player in fabric care, household insecticide, surface cleaning, personal care and air care segment with brands such as Ujala, Maxo, Exo, Jeeva and Maya.

Ujala Fabric Whitener, flagship brand of the company, has 57.5% market share (by volume) and 72.2% share (by value) as at 31st July 07. Maxo Coils has market share of 20.8% as on that date. Rest of the brands are either region based or have yet to catch on.

Since the proposed issue is Offer for Sale, no capacity increase is taking place or no new fund is coming to the company, hence only the normal growth would get achieved by the company. Though topline of the company rose by 19.25% from Rs.314.05 crores in FY 06 to Rs.374.52 crores in FY 07, PAT rose only by 3.33% from Rs.46.59 crores in FY 06 to Rs.48.14 crores in FY 07. This is due to fall in the EBITDA margin in FY 07 to 18.12% from 19.34% in FY 06. Due to huge cash surplus of about Rs.77 crores with the company, other income is quite high at Rs.12.63 crores for FY 07. EPS was at Rs.33.20 for FY 07.

FMCG sector presently is not a fancied sector and is likely to remain so for the next couple of years. Return on net worth of the company is also quite low at 16.51% when compared to its peers like Emami, which is at 40.5% and Marico at 49.7%. The share is being offered at a PE multiple of close to 21, at the upper band, of Rs.690 per share, thus leaving very low scope for appreciation in the medium to long term. The issue may give listing gains but looking at the pressure on margins of the company, the share may not be able to give decent returns in the long run.

Source:sptulsian.com

(*****Latest grey market premium is Rs. 350+ Apply for listing gain only.)

Intraday Calls for 22nd November

A Bounce Back Expected.

Buy for Intraday:

Religare Enterprises Ltd.
Cinemax Ltd.
Shringar Cinemas Ltd.
PSTL
House of Pearl Fashion Ltd. (HOPFL)
Polaris Lab
Prithvi Info
Great Offshore
Elecon Engineering
Purvankara Projects
IDFC
Wockhardt Ltd.
Novartis India Ltd.
Ansal Buildwell

*****Accumulate Pondy Oxides & Chemicals Ltd & Sumeet Industries.
Hold Maximaa Systems.

Good Luck

Intraday Calls for 21st November

Market may open flat to nagetive but after that a positive trading should starts and will remain positive whole the day.

Buy for Intraday:

New Listing Religare (185) can list around 525-575 and Target 650+
Great Offshore
Gulf Oils
Petronet LNG
Selan Exploration.
IDFC
JP Hydro
Omaxe Ltd.
GNFC
Welspun Gujarat
Welspun India
Ansal Buildwell
Parsvnath Developers
GDL

Others: TTML, Manugraph India, Cinemax Ltd, Kisan Moulding, Nagarjuna Fert., UCO Bank.

*****Maximaa Systems hits buyer freeze before cooling down.
CHD Developers hits Rs. 30 mark and achieve 1st target. Long term investor remain ivested for Rs. 50/- SL Rs. 22/-
Sumeet Industries Hits upper circuit at Rs. 14.72/-.
Pondy Oxides & Chemicals Ltd. starts moving up with good volumes.

Good Luck

Intraday Calls for 20th November

Market is likely to open with nagetive note as all global market trading very weak. But later recovery expected.

Buy for intraday at lower leveles (Trade in small qty today with Strict SL):

TTML (Ultimate Target 65+)
Ashok Layland
Lokesh Machine
GDL
Electrosteel casting.
Apollo Tyres
Manugraph India
Cinemax Ltd.
Mid-Day Multimedia
ITL Industries
UCO Bank
Gwalior Chemical

Others: Punj Llyod, IVRCL Infra, Ansal Buildwell, KPR Mills.

***** Maximaa Systems, CHD Developers and Sumeet Industries all were at upper curcuits.Enjoy
Accumulate Pondy Oxides & Chemicals Ltd.

Good Luck

Markets Today: Midcaps & Smallcaps Outperform

It started as a good day for markets but the frontliners failed to hold their gains at the higher levels and ended near the lowest point of the day. The rally in the midcaps and smallcaps continued and the market breadth was significantly positive.
Nifty Junior had blown out the lights and the index was up over 4%. Midcap index is up 2.7% and smallcap index is up 3%. The rally was seen despite some sell off seen in Asia markets.
Mukta Arts, Manugraph Ind, Rohit Ferro Tec, Gwalior Chem, Suryalakshmi Co were the smallcap performers locked in upper circuit each up 20%.
Among the block deals Centurion BoP, Reliance Infra and Suzlon Energy saw some block deal.
Auto, power, realty, cement and metal stocks were buzzing.
Gainers in the midcap space were Exide Industrie, Nirma, FDC, Sun Pharma Adv, Vijaya Bank, Centurion Bank, Alok Industries, Blue Dart, UB Holdings.
Midcap banking space was also very active and is trading with good gains. Centyrion BoP was up over 14% and Vijaya Bank up over 13%.
Among the frontliners Bajaj Auto, ONGC, Cipla, Siemens, Suzlon Energy were the top gainers.
Bank pivotals like ICICI Bank and HDFC Bank were seeing some profit booking along with the oil refinery duo of BPCL and HFCL. FMCG major ITC was also trading weak.
Sensex was down 65.00 points or 0.33% at 19633.36, and the Nifty up 0.80 points or 0.01% at 5907.65.
About 2305 shares have advanced, 715 shares declined, and 45 shares are unchanged.
The BSE Midcap Index ended at 8,730.82 up 2.6%.
The BSE Smallcap Index ended at 10,672.89 up 2.8%.
The BSE Bankex was down 1% at 10,920.67. Top losers were HDFC Bank, ICICI Bank and SBI. Midcap bank stocks were on fire with CBoP up 14%, Vijaya Bank up 13.8%.
The BSE Capital Goods Index was up 1% at 20,806.42. Triveni Engg, AIA Engineering, Siemens, Crompton Greave, Thermax, Punj Lloyd closed higher.
The BSE Auto Index closed at 5,413.24 up 2.5%. Apollo Tyres, Escorts, TVS Motor, Exide Ind, Ashok Leyland closed higher.TVS Motor up 12%, Escorts up 12%, Ashok Leyland up 6.7%, LML locked at 5%.
The BSE Metal Index closed at 17,668.86 up 1%. Jindal Steel, JindalStainless, Tata Steel, SAIL, Hind Zinc closed higher.
The BSE FMCG Index closed at 2,224.86 down 0.2%. ITC and GlaxoSmith Cons were each down over 3%.
BSE Oil and Gas Index closed flat at 12,467.50. HPCL, BPCL, IOC, Reliance Petro ended lower but Essar Oil up 6%, Chennai up 4.3%.
The BSE IT Index was at 4,634.64 up 0.4%. Tech Mahindra, I-Flex Solution, Patni Computer, HCL Tech closed higher.
Sugar stocks saw heavy buying; Balrampur was up 11%, Triveni up 19%, Bajaj Hindusthan up 6%
Total market turnover at Rs 78,490 crore Versus Rs 89,336 crore in last trading session.
Source:moneycontrol.com

Intraday Calls for 19th November

Market may open positive and remain positive whole day.

Buy for Intraday:

Escorts Ltd.
IDFC
Petronet LNG
Orchid Chemicals
Videocon Industries
Chambal Fert.
Nagarjuna Fert.
Vijaya Bank
Bank of Baroda
Gulf Oils
Prism Cement
Mysore Cement

Others: CHD Developers Ltd., Amforge, Pondy Oxide, Bongaigaon Ref., DLF.

*****Maximaa Systems Upper Curcuit at 4.66/-
CHD Developers also moves up smartly and hits the upper curcuit at 23.10.
Sumeet Ind is also starts moving up with good volumes. Accumulate.
Now Pondy Oxides Accumulate for Very Short Term gain.

Good Luck

Short-Med Term Delivery Pick: Pondy Oxides & Chemicals Ltd.

Pondy Oxides & Chemicals Ltd. (BSE: 532626)
CMP : Rs. 20.95/-
52 Week High : Rs. 35.85/-
52 Week Low : Rs. 3.54/-
Face Value : Rs. 10/-
EPS : Rs. 2.72/-
P.E.: 7.70
200 Days Simpal Moving Average : Rs. 19.86/-
Sept. Quarter Profit (Sep 07): Rs. 11.39 Million (Profit rises 322 % QOQ)
Year Profit (March 07): Rs. 26.80 Million (Profit rises 104% YOY)
Company Continuesly doing well and great future ahead.
Recommandation: Accumulate (Buy at current Level and at every fall)
Target : Rs. 35/- (Short - Med term) Rs. 60/- (Long Term)
(Before investing do your own research)

IPO Talk: Kolte Patil Developers

Kolte Patil Developers is entering the capital market on 19th November, 2007 with a public issue of 1.90 crore equity shares of Rs.10 each in the band of Rs.125 to Rs.145 per share. The issue size at the upper band is Rs.275 crores with 25% dilution of expanded equity base of Rs.75.25 crores.

The company is a leading realty player in Pune market and out of total saleable area of 39.78 million sq. ft., 92% is located in Pune while 8% is in Bangalore. Both are hot and rising market for realty where saleability of the property is fast with good demand from middle and upper class of users.

28 projects with saleable area of 17.80 million sq. ft., of which 24 are in Pune and 4 are in Bangalore, are under development, which includes 5 IT Parks, 11 commercial complexes, 10 residential complexes, 1 service apartment and 1 integrated township. Balance area of 21.58 million sq. ft. is held for development.

The company has joint venture agreement with ICICI Venture Fund Management for three of its projects with equity and equity linked financing for the projects. This shows that the project and the company has been duly checked and verified which instill confidence.

The company has agreed to acquire 24 million sq. ft. of land in Pune where the cost of acquisition ranges from Rs.750 per sq. ft. to Rs.7 per sq. ft. The total cost for these lands are Rs.287 crores, of which, Rs.110 crores has already been paid, while remaining Rs.176 crores is mobilized via this issue. Bavdhan 3, a residential project has saleable area of 9.75 lakh sq. ft., which is in the vicinity of Bavdhan 1 and 2, where the company is developing an IT Park, of about 4 lakh sq. ft. Due to this project, residential project would have good demand, from ownership and rental.

For FY 07, the company achieved a total income of Rs.252 crores and PAT of Rs.83.56 crores, resulting into an EPS of Rs.14.85. The debt of Rs.150 crores is also not very high, considering its land bank.

The expanded equity of Rs.75.25 crores translates into a valuation of Rs.1,100 crores at the upper band. Saleable area of 39 million sq. ft. translates into weighted average value per sq. ft. of Rs.282. The same looks quite reasonable and good profits can be made by the company after development. Even, amount to be mobilized, from the issue would get partly used for development and construction of Rs.149 crores and balance Rs.176 crores shall be usd for making payment, for acquiring development rights.

Considering all these, issue looks reasonably priced, even at the upper band and hence investment is recommended.

Source:sptulsian.com

*****Latest Grey Market Premium is Rs. 55-65/-

Intraday Calls for 16th November

Market is likely to open flat to nagetive and then can corrects more but again recovery expected from lower levels. Remains highly volatility.

Buy for Intraday:

Mahindra Gesco Corp (670)
DCB (126)
Hotel Leela (60)
Omaxe Ltd. (344)
BILT (147)
Gulf Oil (290)
Petronet LNG (112)
RPL (212)
Escorts (123)
Essar Shipping (55)
Great Offshore (865)
KS Oils (79)
Meghmani Organics Ltd. (28.65)

Others: CHD Developers, Nagarjuna Fert., Deepak Fert., Soma Textile, Amar Remedies, Andhra Petro.

***** Maximaa Systems again hits Upper Curcuit at Rs. 4.44/-
CHD Developers moves up with huge volumes & high delivery percentage.
Now accumulate Sumeet Industries @ 11.80/-
Good Luck

Short-Med Term Delivery Pick: Sumeet Industries

Sumeet Industries Ltd. (BSE: 514211)
CMP : Rs. 11.80/-
52 Week High : Rs. 34.25/-
52 Week Low : Rs. 4.31/-
Face Value : Rs. 10/-
EPS : Rs. 2.26/-
P.E.: 5.22
200 Days Simpal Moving Average : Rs. 17.15/-
Website: http://www.sumeetindustries.com/
Sept. Quarter Profit (Sep 07): Rs. 11.81 Million (Profit rises 96 % QOQ)
Year Profit (March 07): Rs. 34.76 Million (Profit rises 295% YOY)
Company Continuesly doing well and great future ahead as of great future expansion plans. (http://www.sumeetindustries.com/Future_Plans.htm)
Recommandation: Accumulate (Buy at current Level and at every fall)
Target : Rs. 22-25/- (Short - Med term) Rs. 50/- (Long Term)
(Before investing do your own research)

IPO Talk: Edelweiss Capital

Edelweiss Capital is entering the capital market on 15th November 07, with a public issue of 83.86 lakh equity shares of Rs.5 each in the band of Rs.725 to Rs.825 per share.

Edelweiss is a known name in the financial market and the company with its nine wholly owned subsidiaries and two subsidiaries, is offering integrated financial services and products, including, investment banking, institutional equities, private client brokerage, wealth management, asset management and investment advisory services, insurance brokerage and wholesale financing.

For FY 07 the total income, on consolidated basis, was at Rs.371.25 crores with PBT of Rs.173.77 crores and PAT of Rs.109.00 crores. Of this, trading and arbitrage income was at Rs.114.22 crores. For five months ending 31st August, 07, the total income of the company was at Rs.284.86 crores, of which trading and arbitrage income was at Rs.103.46 crores. This has resulted in PBT of Rs.127.89 crores and PAT of Rs.80.93 crores.

If we analyse results of FY 07, and results of five months ending August 07, employee costs have increased by about 100%, on an annualized basis, while finance cost increased by about 350%, on annualized basis. As against this, core income of the company, being fee brokerage and commission income improved by just 50%, on an annualized basis.

For any financial services company, especially for an investment and broking and wealth management company, the core business revenue is from fee, brokerage and commission income and not the trading and arbitrage income. However, in case of this company, the bottomline over the years viz. FY 04 to FY 08 (part) has largely come from trading and arbitrage income. Hence the question arises - how far would it be acceptable to capitalize such income component, while valuing the company?

Even the debt component of the company rose sharply from Rs.386 crores as at 31st March 07 to Rs.976 crores as at 31st August 07. On gross basis, it has resulted in a yield of 13% for five months or about 2.5% per month. This kind of yield is given by arbitrage plays, even on a fund size of Rs.1,000 crores. So, the business model of the company is relying more on trading and arbitrage income which may not be perceived to be very healthy, on a sustainable basis, while valuing a company.

On an annualised basis, for FY 08, the company may have a bottomline of Rs.250 crores, which may result in an EPS of about Rs.33, translating into a PE multiple of about 25 times, at the upper band of Rs.825 per share. The market capitalization of the company, post issue, at the upper band of Rs.825 per share, works out at Rs.6,200 crores.

If we consider grey market premium of Rs.500 per share, market cap on listing would be about Rs.10,000 crores, which makes the issue definitely expensive when compared to its peer like Indiabulls Securities, India Infoline and Motilal Oswal.

The revenue model of the company does not give absolute comfort and looking at the grey market activity and quote, the subscription levels would be very high, resulting in poor allotment ratio. Still if somebody wishes to ride the momentum, one can go for it.

Source:sptulsian.com

***** Latest Grey Market Premium is Rs. 725-750/-

Intraday Calls for 15th November

Market should open positive and may touch all time highs but remains volatile. It can see some profit booking at higher levels. Close above 20000 market can see 22000 by Jan-Feb' 08.

Buy for Intraday:

Bongaigaon Refinery (80.5)
RPL (215)
Gulf Oil (291)
Petronet LNG (102)
Selan Exploration (165)
JP Hydro Power (97)
GMR Infra (209)
Nagarjuna fert. (66)
RCF (72)
Essar Steel (49)
Navneet Publications (94)
Andhra Petrochem (28.35)

Others: DCW, Gujarat Alkali, National Alum Co. (NALCO), Nelcast, Gabriel Ltd, KPIT.

***** Maximaa Systems Hits another Upper Curcuits at Rs. 4.23/-.
CHD Developers slowly moving up. Accumulate.

Good Luck

Markets Today: Biggest Single Day Gain

The markets ended with monster gains on heavy buying in scrips across sectors. Sensex has gained over 900 points and Nifty has scored over a double century and was up over 250 points. It was the biggest single day absolute gain for Sensex. The cues from global markets have been robust with Asia closing higher and Europe opening strong.
Oil & gas, capital good, metal and banking stocks continue to be in the limelight today. Broader markets have also participated in the uptrend but the frontliners outperformed the midcap and smallcap indices. BSE Midcap index was up over 2% and the smallcap index was up over 2.4%.
ICICI Bank surged over 9%, Wipro and Hindalco were up over 7% followed by HDFC, HDFC Bank, Bharti Airtel, Rel Petro and PNB.
Sensex was up 893.58 points or 4.69% at 19929.06, and the Nifty up 242.50 points or 4.26% at 5937.90.
About 2135 shares have advanced, 852 shares declined, and 78 shares are unchanged.
The BSE Midcap Index ended at 8,285.63 up 2%.
The BSE Smallcap Index ended at 10,039.38 up 2.4%.
The BSE Bankex was up 7.2%. Top gainers were HDFC Bank up 11.3%, ICICI Bank up 8.9%, PNB up 9.7% followed by SBI, BOB, HDFC Bank, Union Bank, Axis Bank, Kotak Mahindra, Andhra Bank, Bank of India moved upwards.
The BSE Capital Goods Index was up 1% at 20,386.41. Siemens, Areva T&D, Kirloskar Oil, Bharat Bijlee, Triveni Engg closed higher.
The BSE Auto Index closed at 5,423.10 up 0.6%. Hind Motors, MICO, TVS Motor, Maruti Suzuki, Cummins closed higher.
The BSE Metal Index closed was up 4.2%. Among the top gainers were Nalco up 13.7%, Hindalco up 7.3%, SAIL up 6% Jindal Steel, JindalStainless, Tata Steel, SAIL, Hind Zinc closed higher.
The BSE FMCG Index closed at 2,062.04 up 1.2%. United Spirits, GlaxoSmith Con, ITC, Dabur India, Marico, ITC, Bata India closed higher.
BSE Oil and Gas Index closed up 7%. Heavies like Reliance up 7.2%, ONGC up 4.7% followed by Reliance Natura, Essar Oil, Reliance Petro, Petronet LNG ended higher.
The BSE IT Index was at 4,634.64 up 0.4%. Wipro, Satyam, Infosys, Financial Tech, TCS closed higher.
BSE Realty Index was up 3.1%; Unitech up 2.5%, Indiabulls Real up 7.5%.
The NSE cash turnover was at Rs 20698.46 crore and the NSE F&O turnover was at Rs 68270.99 crore. The BSE cash turnover was Rs 8791.8 crore. Total market wide turnover was at Rs 97761.25 crore.

Source:moneycontrol.com

Intraday Calls for 14th November

Market may open with gap up and a strong rally expected. Once close above 20000 for sensex 22000 levels can be seen by Jan-Feb 08.

Buy for Intraday:

Power Sector:
Reliance Energy,
Suzlon Energy,
Power Grid
NTPC
Torrent Power

Banking Sector:
Bank of Baroda
UCO Bank
Yes Bank
Syndicate Bank

Financial Sector:
India Infoline
India Bulls
IFCI
PFC
Tata Investment Corp (Trading very cheap at Rs. 690/- compare to its peers like Reliance Capital. Buy for Long Term Target of Rs. 2000+)

Others:
DCW, Teledata, Blue Bird, Paramount Communication, Genus Power, MTNL, Sail, Wipro.

***** Maximaa Systems hits the upper curcuit at Rs. 3.85/- and CHD Developers is also moving up.

Good Luck

Markets Today

The bulls staged a strong comeback helping markets close with hefty gains. The day started flat with buying seen in midcaps and smallcaps but moved ahead with heavy buying seen in frontline banking, power, capital good stocks. Sensex was up 350 points and the Nifty has scored almost a century ending near 5,700 mark.
On the macroeconomic front, the positive trigger being the Left has given the nod to government to proceed negotitations with IAEA on Nuke deal.
Power stocks surged Areva T&D was up 20%, Alstom Projects up 10%, Voltamp Transformers up 8%, NTPC was up 7%, L&T up 5.6%, BHEL 4.5% and Tata Power was up 4%.
Heavies like SBI, HDFC Bank, L&T, Tata Steel Reliance Ind, NTPC were helping the markets trading higher.
Broader markets have held out their gains and both midcap and smallcap indices were up 2% each. However, the IT stocks were still under pressure.
Among the frontliners HDFC Bank was up over 6%, MTNL up over 4%, HDFC, SBI, Suzlon each up over 4%. ICICI Bank, Tata Steel, Tata Motors, Maruti were up over 3% each.
Sensex was up 298.21 points or 1.59% at 19035.48, and the Nifty up 78.30 points or 1.39% at 5695.40.
About 1982 shares have advanced, 1001 shares declined, and 82 shares are unchanged.
The BSE Midcap Index ended at 8,113.72 up 2%.
The BSE Smallcap Index ended at 9,801.29 up 2%.
The BSE Bankex was up 3.5% at 10,538.05. HDFC Bank, Axis Bank, Bank of India, Bank of Baroda, IOB moved upwards.
The BSE Capital Goods Index was up 3.4% at 20,292.56. Areva T&D, Alstom Project, Bharat Bijlee, Bharat Elec, Gammon India closed higher.
The BSE Auto Index closed at 5,136.25 up 0.5%. Punj Tractors, Bharat Forge, Amtek Auto, Exide Industrie closed higher.
The BSE Metal Index closed at 17,046.73 up 1.6%. Mah Seamless, JindalStainless, Jindal Steel, SAIL, Tata Steel closed higher.
The BSE FMCG Index closed at 2,068.66 up 0.6%. Bata India, United Spirits, Colgate, Marico closed higher.
BSE Oil and Gas Index closed at 11,408.93 up 0.4%. Reliance Natura, BPCL, Reliance , Reliance Petro, Petronet LNG ended higher.
The BSE IT Index was at 4,095.73 down 1%. IT companies continue to hit 52 week lows; Infosys, TCS, Patni, Tech Mahindra, Hexaware hit 52 week low.
The NSE cash turnover was at Rs 19630.58 crore and the NSE F&O turnover was at Rs 67336.02 crore. The BSE cash turnover was Rs 7941.03 crore. Total market wide turnover was at Rs 94907.63 crore.

Source:moneycontrol.com

Intraday Calls for 13th November

Market may open with flat to positive. Remains very volatile.

Buy for Intraday:

Hindalco Industries,
Neyveli Lignite,
NTPC
PTC India,
RNRL
IDBI
Roman Tarmat
Koutons Retail
Graphite India,
SuryaChakra Power,
Bongaigoan Refinery

*****Maximaa Systems hits buyer freeze before cooling down a bit. Accumulate.
& Do not forget CHD Developers also.

Good Luck

Short Term Delivery Pick: CHD Developers Ltd.

CHD Developers Ltd. (BSE: 526917)
CMP : Rs. 17.50/-
52 Week High : Rs. 32.1/-
52 Week Low : Rs. 5.85/-
Face Value : Rs. 2/-
EPS : Rs. 2.96/-
P.E.: 5.91
200 Days Simpal Moving Average : Rs. 16.87/-
Trading very cheap at current level as compare to its peers which are trading at 10 to 50x P.E. Multiples. At least at 10x P.E. multiple it's price should be around Rs. 30/- as company continuesly doing well and can do well in future.
Website: http://www.chddevelopers.com/
Sept. Quarter Profit (Sep 07): Rs. 35.84 Million (Profit rises 631 % QOQ)
Year Profit (March 07): Rs. 91.23 Million (Profit rises 323% YOY)
Recommandation: Accumulate (Buy at current Level and at every fall)
Target : Rs. 28-32/- (Short - Med term) Rs. 50/- (Long Term)
(Before investing do your own research)

Markets Today

The markets showed smart recovery and ended the day with moderate losses outperforming its Asian peers. The markets have shown resilience despite some disappointing IIP numbers. The pullback was seen in the final hour of trade and Nifty ended above 5,600 levels and Sensex above 18,700 mark.
Sell off in equity markets was triggered by the weak cues from the global markets as US mkts ended in red on account of credit concern leading to the decline in the Asia.
Sensex was down 170.33 points or 0.90% at 18737.27, and the Nifty down 46.15 points or 0.81% at 5617.10.
About 1171 shares have advanced, 1817 shares declined, and 77 shares are unchanged.
The BSE Midcap Index ended at 8,013.63 down 1%.
The BSE Smallcap Index ended at 756 down 1.4%.
The BSE Bankex was up 0.3% at 10,186.32. Bank of India, Union Bank, HDFC Bank, Centurion Bank, Bank of Baroda moved downwards.
The BSE Capital Goods Index was down 0.2% at 19,624.60. Reliance Infra, Areva T&D, Bharat Bijlee, Thermax closed lower.
The BSE Auto Index closed at 5,109.95 down 2%. MRF, Tube Investment, Bharat Forge, Mah and Mah, Cummins closed lower.
The BSE Metal Index closed at 16,766.06 down 1%. Shree Precoated, Sterlite Ind, Hind Zinc, Mah Seamless closed lower.
The BSE FMCG Index closed at 2,057.01 up 2.5%. HUL, ITC, United Spirits, Tata Tea, United Brewerie, Colgate, HUL closed lower
BSE Oil and Gas Index closed at 11,369.24 down 2.3%. ONGC, GAIL, HPCL, Reliance Natura, Reliance Petro ended in red.
The BSE IT Index was down 3% at 4,135.14. Mphasis, Patni Computer, Tech Mahindra, Infosys, I-Flex Solution, TCS closed lower.
The NSE cash turnover was at Rs 17296.14 crore and the NSE F&O turnover was at Rs 56771.23 crore. The BSE cash turnover was Rs 6411.42 crore. Total market wide turnover was at Rs 80478.79 crore.

Intraday Calls for 12th November

Market may open gap down but later some recovery expected.

Sensex Support 18400 and Nifty Support 5540

Buy for intraday (At lower levels & Keep 2% Strict SL):

Cinemax (119)
PSTL (283)
Dish TV (56)
Zee News (61)
Sunflag Iron (27.55)
Infosys (1700)
HCL Tech (301)
Prithvi Info (266)
KPIT Cummins (103)
Lok Housing (177)
Ansal Properties (250)
Ansal Buildwell (85) (Buy for 1 Year Target 200+)

***** Do not forget Maximaa Systems (Rs. 3.20 Now)

Good Luck

DIWALI PICKS

WISH YOU ALL A VERY HAPPY DIWALI & HAPPY NEW YEAR

Buy Diwali to Diwali Stocks (1 Year Hold)

GMR Infra Target 350+
NTPC Target 500+
Nagarjuna Fertilizers Target 125+
Ansal Buildwell Target 200+
Binani Industries (BinaniZinc) Target 500+

Good Luck

Markets Today

It was yet another disappointing day for the markets wherein the markets opened on extremely weak notes taking cues from the global markets. The credit concerns in the US market once again struck the global markets. It traded under pressure through the day amid volaitility.
All the key BSE indices were in red led by the banking, metal and realty indices. IT stocks continued to crumble today also and Infosys, Polaris hit the 52 week low in todays trade. The volume was realatively lower today and the market breadth remained negative through the day.
Sensex closed down 230.90 points or 1.20% at 19058.93, and the Nifty closed down 83.60 points or 1.45% at 5698.75. On BSE about 1236 shares have advanced, 1734 shares declined, and 94 shares are unchanged.
BSE Auto index closed at 5,229.11 down 66.28 or 1.25%. Amtek Auto, Bharat Forge and Escorts were top losers.
BSE bankex ended at 10,353.19 down 267.03 or 2.51%. SBI, HDFC Bank and ICICI bank were the top losers.
BSE capital goods index closed at 19,646.57 down 91.79 or 0.47%. Kirloskar Oil, Reliance Infra and Gammon India were the top losers.
BSE FMCG index closed at 2,010.85 up 0.63 points or 0.03%. Nestle, Colgate, HUL and Dabur India were the top gainers.
BSE IT index closed at 4,298.86 down 44.56 or 1.03%. I-Flex Solution, Mphasis and Financial Tech were top losers.
BSE metal index ended at 17,049.52 down 318.20 or 1.83%. Jindal Stee, Sterlite Inds and Hind Zinc were the top losers.
BSE oil & gas index closed at 11,593.75 down 94.43 or 0.81%. ONGC, Petronet LNG and Reliance were the top losers. BSE realty index closed at 10,077.92 down 213.17 or 2.07%. Unitech, Peninsular Land and Omaxe were top losers.

Turnover:
NSE cash: Rs 16839.79 cr
NSE F&O: Rs 54391.37 cr
BSE cash: Rs 6737.56 cr
Total: Rs 77968.72 cr

Market Snapshot:
Renewed jitters of subprime crisis lead markets to trade weak
Indian markets outperform its Asian peers
Sensex down 231 pts at 19058; manages to close over 19000
Nifty ends down 83.6 pts at 5698
CNX Midcap Index down 1.13%, BSE Small-cap Index down 1.23%
All BSE indices end in the red
BSE Metals Index down 1.7%; Sterlite Industries down 4.7%, SAIL down 2.8%; Nalco up over 15%, Hindalco up over 9%
BSE Bank Index down over 2.6%; HDFC Bank down 3.9%, PNB & ICICI Bank down over 2.5%
BSE Realty index down over 1.7%; Unitech down 4.2%, DLF down about 2%
Infosys hits 52 wk low on NSE; down 1.8%
Other IT stocks that hit a 52 wk low: I-flex, Patni, 3i Infotech, MindTree, Polaris, Subex Azure, North Gate
Some media stocks buzz; Broadcast Initiatives up 14%, Shringar Cinemas up 9%, Adlabs up 5.3%
NSE Advance Decline ratio continues at 1:2
Total market turnover at Rs 77968 cr Vs 87,780 cr yesterday
Non-index gainers: WWIL up 11%, Rel Cap up 9.6%, Everonn Systems up 8%, Essar Oil up 9.4%
Non-index losers: Nocil, NFL & FACT continue to fall; all down over 8%, Jindal Steel down 10%;

Source:moneycontrol.com

Intraday Calls for 8th November

Market may open gap down and can see more correction but later a sharp recovery expected. Market will bounce back if 19000 on sensex and 5740 on nifty holds at closing.

Buy for intraday (At lower levels)

Triveni Eng. (134)
Bajaj Hindustan (213)
Ramsarup Industries (230)
Jindal Saw (790)
Dil Ltd. (311)
WWIL (40)
Kar Mobile (285)
GTC Industries (369)
GAIL (457)
Selan Exploration (163)
Gulf Oil (273)

Buy for Delivery for short term gain:

KPIT (103) Target 135+ SL below 100
Vivimed Labs (111) Target 150+ SL 102
Ansal Buildwell (80) Target 95-110 SL 75
Atlanta (233) Target 275+ SL 210

*Do not forget Maximaa Systems (3.15)*

Trade in very small quantity as market seems very volatile.

Good Luck

Penny Stock: Maximaa Systems

Maximaa Systems (BSE: 526538)
CMP : Rs. 3.15/-
52 Week High : Rs. 9.88/-
52 Week Low : Rs. 0.75/-
Face Value : Rs. 10/-
EPS : Rs. 0.31/-
P.E.: 10.16
200 Days Simpal Moving Average : Rs. 4.20/-
Website: http://www.maximaasystems.com
This Quarter Profit (Sep 07): Rs. 2.46 Million (Profit rises 402 % QOQ)
Year Profit (March 07): Rs. 4.32 Million (Profit rises 2985% YOY)
Recommandation: Accumulate (Buy at current and every fall)
Target : Rs. 6-8/- (Short - Med term)
(Before investing do your own research)

Markets Today

It was once again a day of consolidation on the bourses today where in the markets opened on bullish note taking strong cues from the global peers. The markets traded extremely volatile through the day and closed in red with significant cuts.
It was extremely bad for the IT stocks which got butchered on account of further strengthening of rupee and the banking and relaty stocks also lost some ground ground. However, the oil & gas, metal and capital good stocks were in focus today. BSE Oil & gas index closed with over 2% gain and Reliance Industries lead from the front.
The Sensex ended down 110.84 points or 0.57% at 19289.83, and the Nifty closed down 4.15 points or 0.07% at 5782.35. About 1180 shares have advanced, 1781 shares declined, and 102 shares are unchanged on BSE. On NSE 401 stocks advanced today and 786 stocks declined.
Top Sensex gainers were Reliance, BHEL, SBI and M&M. Top Sensex losers were Infosys, HDFC Bank, Satyam and ICICI Bank.
BSE midcap ended at 7,985.96 down 29.34 points or 0.37%. BSE smallcap closed at 9,695.13 down 107.90 points or 1.10%.
BSE auto index ended at 5,295.39 up 18.15 points or 0.34%. Amtek Auto, M&M and Maruti Suzuki were the top gainers in this counter.
BSE bankex ended at 10,620.22 down 166.29 points or 1.54%. HDFC Bank, Canara Bank and ICICI Bank were among the top losers in this space.
BSE capital goods index closed at 19,738.36 up 41.07 points or 0.21%. Triveni Eng, BHEL, Kirloskar were the top fliers in this space.
BSE FMCG index ended at 2,010.22 down 16.23 points or 0.80%. Marico, Bata India and HUL were the top losers.
BSE pharma index closed at 3,866.54 down 12.19 points or 0.31%. Panacea Biotech, Aurobindo Pharma, Novartis India and Divis Labs were the top losers.
BSE IT index ended at 4,343.42 down 197.27 points or 4.34%. Infosys, Tech mahindra and Mphasis were the top losers.
BSE metal index closed at 17,367.72 up 161.66 points or 0.94%. Sterlite, Jindal Saw and Sesa Goa were top gainers.
BSE oil & gas index ended at 11,688.18 up 298.97 points or 2.63%. GAIL, Reliance and HPCL were the top gainers.
BSE realty index closed at 10,291.09 down 109.99 points or 1.06%. Puravankara Project, Indiabulls Realestate, Sobha Developers were the top losers.

Market Snapshot

Market continue to witnesses volatile session with low turnover
Sensex down 110 pts at 19289; off nearly 400 pts from days high
Nifty ends almost flat at 5784; off nearly 80 pts from days high
CNX Midcap Index down 0.33%, BSE Small-cap Index down 1.1%
BSE IT Sector takes a severe beating after muted guidance from Cognizant; Index down 4.7%
Infosys down 5.7% at 1746; ends striking distance to its 52-week low of Rs 1715
Oil & Gas stocks buzz as crude oil futures hits $98/bbl for 1st time ever
BSE Oil & Gas Index up over 2.5%; RIL up 3.9%, DSPML says switch to RIL; GAIL up 6.4%
HPCL up 4.7%; on reports of issuance of further oil bond
Sterlite up 6.7% as board says to raise equity/debt via Sterlite Power
BSE Bank Index down 1.6%; HDFC Bank down 5.3%, ICICI down 3.3%
Allahabad HC may direct govt to reduce SAP on sugarcane: Srcs; Bajaj
Hindustan up 14%, Balrampur up 11.5%, Triveni up 7%
Fertilizer stocks see profit booking; Nagarjuna Fertilizer down 3%; NFL down 10%, FACT down 10%
NSE Advance Decline ratio weakening to 1:2 from 2:3 yesterday
Total market turnover at Rs 87780 cr Vs 1.16 lakh yesterday

F&O SNAPSHOT

Nifty witness some short covering during the day; nifty basis swings from 20 point premium to 17 point discount
Nifty futures add 14.6 lakh shares in OI
Nifty sheds OI in last hour of trade on account of profit booking
Sugar stocks witness huge long OI buildup
RPL and RNRL see volatile day of trade

Turnover today:
BSE cash - Rs 6839.5 cr
NSE cash - Rs 18263.03 cr
NSE f&o - Rs 62678.11 cr
Total - Rs 87780.64 cr

Source:moneycontrol.com

Intraday Calls for 7th November

Market is likely to open with gap up as all global (US & all) markets are in positive & May remain positive whole day.

Buy for intraday:

Bank of Baroda (358) Target 375 SL 355
DCB (114) Target 120-125 SL 112
Bank of India (367) Target 375-380 SL 364
IFCI (82) Target 85-88 SL 80
JP Hydro (88) Target 92-95 SL 86
Selan Exploration (166) Target 175 SL 164
Dhanus Tech. (216) Target 225-230 SL 212
Pratibha Industries (257) Target 270 SL 254
Prime Securities (174) Target 180 SL 172

Others: RCOM (750), Graphite India (64), Electrocast Steel (68) Century Textile (1050), GBN (945).

HAPPY DHANTERAS

GOOD LUCK

Markets Today

It was extremely volatile day of trade wherein the markets opened on firm note and proceeded to trade strong in the early trade. But it could not maintain the momentum and succumbed to profit booking seen across the sectors led by capital goods, banking and metal stocks. All the key BSE indices ended in red except realty index which could manage to keep its head above water.
Sensex ended down 190.11 points or 0.97% at 19400.67, and the Nifty closed down 60.80 points or 1.04% at 5786.50. On BSE about 1283 shares have advanced, 1694 shares declined, and 85 shares are unchanged. On NSE, the advance decline ratio was at 443:736. BSE Midcap ended down 60.51points or 0.75% at 7,986.58 and BSE smallcap was down 43.99 or 0.45% at 9,803.03.
BSE auto index ended at 5,277.24 down 51.45 points or 0.97%. MRF, Exide Inds, Amtek India and Escorts were the top losers.
BSE Bankex closed at 10,702.32 down 221.44 or 2.01%. Bank of Baroda, Centurion Bank, Bank of India and Axis Bank were the top losers. BSE Consumer Durables index was down at 5,169.76 down 19.22 or 0.37%. Gitanjali Gems, Titan Inds, Videocon, Rajesh Exports were among top losers.
BSE Capital Goods index ended at 19,697.29 down 354.99 or 1.77%. Punj Llyod, Reliance Infra, Siemens were the top losers.
BSE FMCG ended at 2,026.45 down 0.21 or 0.01%. Nestle, Marico, United Spirits, Tata Tea were top losers.
BSE pharma index closed at 3,878.73 down 0.38%. Matrix, Aventis, Divis Lab were top losers in this space.
BSE IT index ended at 4,540.69 down 26.44 or 0.58%. Tech Mahindra, I-Flex, Satyam, Patni were the top losers.
BSE metal index closed at 17,206.06 down 195.63 or 1.12%. Jindal Steel, Sesa Goa, Shree Precoated were the top losers.
BSE oil & gas index ended at 11,389.21 down 116.33 or 1.01%. Rel Petro, Reliance Natural and Petronet LNG were the top losers in this space.
BSE realty index closed at 10,401.08 up 52.75 or 0.51%. Mahindra Gesco, Indiabulls Realestate and DLF were the top gainers in the realty counter.

Market Snapshot
Market witnesses a choppy session; profit booking in late trade
Sensex down 190 pts at 19400; off over 500 pts from days high
Nifty down 61 pts at 5786; off 171 pts from days high
All BSE Sectoral Indices end in the red barring Realty Index which showed marginal gain
CNX Midcap Index down 0.6%, BSE Small-cap Index down 0.45%
Most buzzing stocks in FNO like RNRL, RPL, JP hydro sees profit booking;
Telecom stocks continue to slide; R Comm down 4.1%, MTNL down 2.7%, Bharti down 2.6%
Metal & oil & gas stocks continue to see selective action
GAIL up 7.2%, Hindalco up 4.4%, Nalco up 3.2%
Fertilizer stocks; Nocil up 10%, FACT up 10%, NFL up 10%, GSFC up 5.8%, Nagarjuna Fertilizer up 2.4%

NSE Advance Decline ratio at 2:3

Total market turnover at Rs 1.16 lakh cr Vs 1.09 lakh yesterday Turnover:
NSE cash - Rs 23737.41 cr
NSE F&O - Rs 82952.01 cr
BSE cash - Rs 9864.71 cr
Total - Rs 116554.13 cr

Intraday Calls for 6th November

Market is likely to open negative but after that recovery expected, Remains very volatile.

Small cap & Midcap stocks can do well now.

Buy for intraday: (Buy at lower levels as market may open negative)

Torrent Power (195) Target 210-215

Taneja Aerospace (139) Target 150

Repro India (120) Target 130

Neyveli Lignite (147) Target 150-152

PTC (158) Target 165-170

RCOM (780) Target 810-825 (Short Term Target 950+)

Electrocast Steel (67) Target 70-72

DCB (112) Target 120-122

Graphite India (66) Target 70-74

BioCon (563) Target 575-590

Petronet LNG (94) Target 100 (Short Term Target 125)

Mercator Lines (123) Target 130

Others: Bharat Forge (364), Gulf Oil (303), Sunil Hitech (300), OM Metal (72), Selan Exploration (164)

Good Luck

Markets Today

The markets ended in red on account of selling pressure in largecaps from bank, FMCG, IT and energy sector. Broader markets held out their gains and BSE midcap and smallcap outperformed the Sensex. The midcap index was up 1% and smallcap index is up 1.4%.
Cues from Asia were not very encouraging as most of the Asia closing in red. Hang Seng down 1450 points or 5%, Shanghai down 2.5%, Straits and Thailand were down nearly 2% each.
Top gainers on the indices were Ranbaxy, Bharti Airtel, Cipla, SBI, NTPC, Tata Power, PNB and HPCL.
Noida Toll Bridge, Jaiprakash Hydro, RNRL, HMT are among the other gainers from broader markets.
Top losers on the indices were ONGC & ICICI Bank down over 4% each, HDFC Bank down 3%, Infosys and GlaxoSmithKline.
Sensex was down 385.45 points or 1.93% at 19590.78, and the Nifty down 85.10 points or 1.43% at 5847.30.
About 1569 shares have advanced, 1418 shares declined, and 75 shares are unchanged.
The BSE Smallcap Index ended at 9,847.02 down 1.1%.
The BSE Bankex was down 2% at 11,007.95. Union Bank, IOB, ICICI Bank, Andhra Bank, Karnataka Bank, Kotak Mahindra, Bank of India moved downwards.
The BSE Capital Goods Index was down 2% at 20,052.28. Punj Lloyd, AIA Engineering, Areva T&D, ABB, BHEL closed lower.
The BSE Auto Index closed at 5,328.69 down 2%. Bharat Forge, Maruti, Escorts, MRF, Cummins, Tata Motors, Bajaj Auto closed lower.
The BSE Metal Index closed at 17,401.69 down 2%. Hindalco, Shree Precoated, NALCO, Hind Zinc, Mah Seamless closed lower.
The BSE FMCG Index closed at 2,026.66 down 4%. HUL, ITC, United Spirits, Tata Tea, United Brewerie, Colgate, HUL closed lower
BSE Oil and Gas Index closed down 2% at 11,505.54. ONGC down 4.9%, RIL down 1.9% ended in red.
The BSE IT Index was down 1.5% at 4,567.13. Mphasis, Patni Computer, Tech Mahindra, I-Flex Solution, TCS closed lower.
The NSE cash turnover was at Rs 22771.1 crore and the NSE F&O turnover was at Rs 77646.90 crore. The BSE cash turnover was Rs 9008.86 crore. Total market wide turnover was at Rs 109426.86 crore.

Source:moneycontrol.com

Intraday Calls for 5th November

Market is likely remain very volatile. A flat to positive opening then see some profit booking as global markets are trading weak and then some recovery again, that can be today's market.

Buy for Intraday:

Fert. & Chem. (28.5) Target 32 SL 27

RPL (270) Target 280 SL 265

Agro Dutch (30.60) Target 33-35 SL 29

Noida Toll Bridge (42.70) Target 45+ SL 41

Sunil Hi-Tech (300) Target 315-320 SL 294

Indowind Energy (165) Target 170-172 SL 163

Selan Exploration (160) Target 170-175 SL 158

Prime Securities (166) Target 175+ SL 162

Hinduja TMT (436) Target 450-460 SL 430

Graphite India (65) Target 70 SL 63

HEG Ltd. (310) Target 325 SL 305

Others: Nagarjuna Fert. (60) , Vivimed Labs (116), GTC Industries (304), Prithvi (286), DCB (105), KPIT (105).

Good Luck

Mundra Port IPO Flash

Click Here for Research Report by Sharekhan on Mundra Port & SEZ

Intraday Calls for 2nd November

Market is likely to open very weak (Gap down opening expected) as all weak global markets and Indian market is also want to take some rest.

It is better to stay away from the market today because of high volatility. Market can see some recovery after deep correction but overall market remains weak.

Buy for Intraday (Risky so keep tight SL & Buy at lower levels)

Power Grid

Neyveli Lignite

Cairn India

Ashapura Minechem

UNITECH

HCL Tech

RCOM

Prime Securities

DCB

Selan Exploration

National Fertilizers

Good Luck

IPO Talk: Empee Distilleries

Empee Distilleries is entering the capital market on 1st November, 2007 with a public issue of 48 lakh equity shares of Rs.10 each, in the band of Rs.350 to Rs.400 per share.

The company is presently engaged into manufacturing of various IMFL products with its distillery located at Kanchipuram, Tamil Nadu with an installed capacity of 30.24 lakh cases per annum and another distillery at Kerala with an installed capacity of 30 lakh cases per annum.

For 9 months ending 30-06-07, the total income of the company was at Rs.546 crores with EBITDA of Rs.32.73 crores, PBT of Rs.21.78 crores and PAT of Rs.16.42 crores, on equity of Rs.14.20 crores, which results in an annualized EPS of Rs.15.40. Presently, purchase and marketing of IMFL in the state of Tamil Nadu and Kerala are with the state government and hence no distilleries operating in those states can sell its products to any other buyers, except the state governments and also can’t produce beyond its rated capacity, which is based on monthly rated capacity. If any distillery reaches its levels, say on 25th of any month, it can’t operate for remaining 5 days of the month. Hence, capacity utilization is already capped and only improvement in the working can be made by change in product mix. Since, marketing is state subject, even distilleries can’t advertise and to push its brands of IMFL, they need to motivate to state distribution shops by offering them incentives in other forms, to enable them to push the company products, by which higher allocation of better brand is received by the distilleries, for better margin.

Realising this, company is expanding its Tamil Nadu distillery capacity as also setting up grain based distillery in Andhra Pradesh and relocating a distillery in Karnataka. Due to surplus land, held by the company, the same is also developed by the company at Shriperumber an I.T. hub, of about 2 lakh sq. ft. The total fund requirement is estimated at Rs.182 crores, which is financed by term loan of Rs.22 crores, internal accruals of Rs.9.50 crores and proposed IPO of Rs.192 crores, considering at the upper band of Rs.400 per share.

Considering an estimated EPS of Rs.16, for FY 07 and considering upper band of Rs.400, the share is being issued at a PE multiple of 25, which is in line with the valuation of existing IMFL manufacturers like Radico Khaitan, Jagatjit Industries etc. United Spirits and United Breweries are discounted dearly due to leadership and national presence.

Hence, considering present level of activity, share may seem fully priced at Rs.400 per share. However, capacity expansion in Tamil Nadu would add quickly to the financials while Andhra Pradesh and Karnataka would add to the financials from next year. The realty stock would also add good cash flow, in the next three years, to the financials. All this leaves scope for further appreciation in the share price. Due to 25% dilution to the public, low floating stock would also keep share price at respectable levels.

If you have no reservations for a wine stock, this could definitely give you decent returns, even if subscribed at the upper band of Rs.400.

Source:sptulsian.com

***** Latest Grey Market Premium: Rs. 130-140

Markets Today

The markets were seen consolidating at the higher levels and ended the day in red amid an extremely volatile session. The markets opened strong slipped in red, bounced back again but ended in red.

It opened today on strong note today and the Nifty breached the psychological level of 6,000 reacting to 25 bps cut by US Fed. But have failed to sustain at the higher levels. Sensex was 500 points down from the day's high and Nifty was down 150 points.

GSM operators in the telecom were the worst hit in todayĺs red on news of spectrum allocation to be made more stringent. Auto, FMCG and pharma stocks also dragged the markets.
Broader markets underperformed the benchmark indices and and ended in red. This gave markets weak breadth.
Top losers on the indices were Relaince, HUL, ITC, Bharti Airtel, MTNL, VSNL Nalco, HCL Tech .
L&T, HDFC Bank, ONGC, Sterlite Ind, Reliance Petroleum, Infosys were among the top gainers on the indices.
Sensex was down 113.64 points or 0.57% at 19724.35, and the Nifty down 34.20 points or 0.58% at 5866.45.
About 1089 shares have advanced, 1900 shares declined, and 71 shares are unchanged.
The BSE Midcap Index ended at 7,966.54 down 2%.
The BSE Smallcap Index ended at 9,646.61 down 1.5%.
The BSE Bankex was up 2% at 10,851.69. Bank of India, Oriental Bank, BOB, SBI, IOB, ICICI Bank, Bank of India moved upwards.
The BSE Capital Goods Index was up 2% at 20,141.19. L&T, Jyoti Structures, ABB, BHEL closed higher.
The BSE Auto Index closed at 5,391.37 down 2%. Bharat Forge, Maruti, Escorts, MRF, Cummins, Tata Motors, Bajaj Auto closed lower.
The BSE Metal Index closed at 17,582.54 down 2%. Hindalco, Shree Precoated, NALCO, Hind Zinc, Mah Seamless closed lower.
The BSE FMCG Index closed at 2,038.20 down 4%. HUL, ITC, United Spirits, Tata Tea, United Brewerie, Colgate, HUL closed lower
BSE Oil and Gas Index closed at 11,539.84 down 1%. Essar Oil, Reliance, HPCL, GAIL ended in red.
The BSE IT Index was flat at 4,615.44. Mphasis, Patni Computer, Tech Mahindra, I-Flex Solution, TCS closed lower.
The NSE cash turnover was at Rs 28448.79 crore and the NSE F&O turnover was at Rs 99734.01 crore. The BSE cash turnover was Rs 11436.95 crore. Total market wide turnover was at Rs 139619.75 crore.

Source:moneycontrol.com

Intraday Calls for 01st November

Market is likely to open with gap up but remain volatile and I think that market will remain rangebound this month and can consolidate near 20000 for some time.

Buy for intraday:

Keep an eye on Oil Exploration Stocks as crude oil is trading higher around $96 and heading for $ 100. Shiv-vani oil, ONGC, Selan Exploration, Hind Oil, Dolphin Offshore, Aban Offshore etc.

My favt. stock is Selan Exploration (157) Short term target 250+

RCOM (772) Target 800 SL 766

Reliance Industries (2782) Target 2875 SL 2770

Mercator Line (120) Target 125-128 SL 118

Videocon Industries (370) Target 395 SL 365

GMR Infra (177) Target 185 SL 175

Prithvi Information (299) Target 315-325 SL 295

Sterlite Optical (314) Target 325 SL 310

NTPC Ltd. (240) Target 250 SL 235

Others: Petronet LNG, Nagarjuna Fet, Ispat Industries, IDEA, IDBI, CIPLA, Engineers India, Philips Carban Black.

Good Luck