Wednesday, May 28, 2008

Stock Idea: Bhushan Steel

Hem Securities has recommended a buy rating on Bhushan Steel with a target of Rs 1016 in its May 27, 2008 research report. "The company has posted the compounded annual growth rate of 16.16% in top line and 38.92% in bottom line in last three years and is expected to maintain its growth in coming years. The company is spearheading a technological revolution in India’s Cold Rolled Steel industry and, in the spirit of a true leader, is ceaselessly striving to raise the bar, achieve new milestones and set new benchmarks in terms of quality of products and degrees of customer satisfaction."
"The stock at the current market price of Rs 769.45 is trading 7.95 times to its earnings of Rs 96.80 and 2 times to its book value of Rs 382.76. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 1016 in the medium to long-term investment horizon with an appreciation of 32%," says Hem's research report.

Markets Today

Markets Snapshot
Market end at day's high; recover in last hour of trade on back of short covering
Sensex ends up 250 pts at 16525; Nifty ends up 58.5 pts at 4918
Profit booking seen in midcap and smallcap stocks
CNX Midcap Index up 0.85%, BSE Small-cap Index up 0.33%
FMCG Index up 4.2%; ITC up 6.15% on report of cigarrate price hike by 5-10%
Cement stocks in focus after partial removal of export ban; Ambuja Cement up 6.5%, ACC up 2%, India Cement up 3.5%
Bank Index up 3%, PNB up 3.75%, SBI up 2.9%, HDFC Bank, ICICI Bank up 1.25% each
IT Index continous to gain; up 2.6%; TCS up 4.2%, Wipro up 3.4%, Satyam up 2.9%
BSE Cap Goods Index down 1.5%; BHEL down 2.8%, L&T down 1.3%Cairn India down 3.65% as crude cools off in internatinal market
Suzlon down 2.5%; CLSA & Citi had downgraded stock post result
Ferliser gainers; NFL up 20%, Chambal Fert up 16.2%, Nag Fert 10.5%, Madras Fert up 9.8%
NSE Advance Decline at 1:1
Total market turnover at Rs 75109 cr; FNO turnover at Rs 56334 cr
Buzzers
Bajaj Finserve up 15.5%; ((Listing day action: Bajaj Finserve ends at Rs 509 Vs listing price at Rs 545))
Apar Ind up 12%; looking to hike stake in Uniflex Cables, may result in an open offer
MphasiS up 10%; Axis Bank up 9.5%, Aptech up 6%, Kotak Mah Bank up 6%
Sita Shree Food down 7.3%, Crompton Greaves down 6.3%, Jyoti Structures down 6.2%
F&O Snapshot
Nifty rollover at 51% Vs 45.3% & Market wide rollover at 55% Vs 46% yesterday's trading session
Short covering seen in last hour of trade
Nifty May disocunt ends at premium; Nifty June discount ends at premium Vs discount of 15 pts
Momentum stocks see long rollover in second half of day: IFCI, TTML, RPL, Idea
Large Caps NTPC , SAIL see rollovers pick up : around 60% for each with short bias.
Cement, Banking stongest rolls
Fertilizer, Sugar see rollovers pick up after unwinding in the beginning of the day
RIL (43%), Punj Lloyd (44%), RNRL (47%) see low rollover
Options Data
JP Associates June 230 call add 10.86 lakh shares in OI
Chambal Fertt May 80 put add 6.4 lakh shares, 90 call add 5 lakh shares in OI
Nifty June 4600 put add 4 lakh shares in OI; June 4800 put add 3 lakh shares in OI
NIfty May 5000 call shed 8.6 lakh shares in OI
Strong Roll Over IOB 84% Ultratech Cem 80% India cement 80% Hindalco 78%
Union Bank 77% Syndicate bank 74% Ambuja Cement 72% Century Textile 72%
PNB 71% SBI 70%
Low Rollover Hind Zinc 35% Indian Bank 38% MphasiS 40% RIL 43%
Punj Lloyd 44% RNRL 47%
Source: moneycontrol.com

Intraday Trading Calls for 28th May

Market may open positive but remains very volatile. Market may see good rally as crude oil comes down to $128 and US Markets closed higher yesterday.
Today's Intraday Tips/ Trading Calls:
MERCATOR LINES
NEYVELI LIGNITE
IDBI
WELSPUN GUJARAT
HDIL
SATYAM COMPUTER
For Levels and Targets download the file by CLICK HERE.
Also keep watch on Deepak Fertilizers, Chambal Fert.
Economic News:
Fertilizer Ministry expects fertilizer subsidy to double in FY09 to Rs950bn. (ET)
The Government is considering an option of including cess or surcharge on income tax and corporate tax to bailout oil marketing companies. (BL)
The Government has eased the ban on cement export by allowing shipment through ports in Gujarat. (DNA)
India’s crude oil import bill jumps over 40% to US$68bn in FY08. (ET)
Corporate New:
RIL Australia, a subsidiary of Reliance Industries, pays US$3.45mn in cash to acquire 49% stake in 4 exploration licenses of Uranium Exploration Australia Ltd. (BL)
OVL, subsidiary of ONGC has established commerciality of its Iranian asset, which is estimated to have 22tcf (trillion cu ft) of gas. (ET)
BHEL and Italian company in race for a Rs13bn order for supplying boilers to Neyveli Lignite. (BL)
Tata Steel gets mineral concession approvals from ministry of mines for two large mines in Jharkhand and Manipur. (DNA)
Omaxe is planning to raise Rs15bn in FY09 for various projects; promoters may dilute 5-10% stake via QIP. (DNA)
EKC is planning to invest Rs1.75bn in expanding capacities across plants in US, Dubai, China and India. (DNA)
PNB is keen to take a 51% stake in the proposed JV for setting up a bank in Bhutan. (BL)
SRF to acquire Thailand based tyre cord company for Rs1bn. (DNA)
Gujarat NRE Coke to raise fresh equity to fund its operations and expansion plans in Australia. (DNA)
BK Modi promoter of Spice Tele may sell its stake to AT&T or Etisalat. (ET)
Repro India to invest US$50mn to buyout digital printing solution firms abroad. (DNA)
Tesco in talks with Wadias, Parsvnath and Kalpataru Properties to enter the Indian market. (ET)
IT Department issues notice to Sesa Goa seeking information on the Vedanta deal. (ET)
DE Shaw raises its stake in Orient Express Hotel by ~2% to 7.6%. (ET)
GVK group is looking for opportunities in overseas airport development projects. (ET)
Jindal Drilling Singapore JV may explore opportunities for raising funds and listing. (BS)
Maytas Infrastructure wins contract for washery reject coal based power project. (BS)
Kirloskar Brothers gets order worth ~Rs1bn form Nuclear Power Corporation. (BS)
Elecon Engineering may acquire a European company. (BS)
Godrej Appliances plans to foray into selling chillers, deep freezers and other cold storage appliances. (BS)
Educomp Solution forms a 50:50 JV with Raffles Education. (BS)
Good Luck

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The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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