Intraday Trading Calls for 23rd May

A small but good rally expected today in Stock Market India. A positive closing expected.

Today's Intraday Trading Tips:

PRAJ INDUSTRIES
IDFC
GMR INFRA
Indiabulls Securities
HCC
NIIT TECH

For Levels and Targets download the file by CLICK HERE.

Others: Ispat Industries, Voltas & 3i Infotech.
Good Luck

Reliance Power Bonus

A unique opportunity is just a few days ahead but to grab it we haveto apply our sense. As per our past experience in stock market, we hadbeen seeing that if bonus is 1:1 than price is reduced to 50%, ifbonus is 1:2 than price is reduced to 33%. So on the same pattern, inrel power 3:5 bonus, price should be reduced to 5/8x100=62.5% , but itis not so in case of Rel Power. Dear all in all historical bonusexcept in Rel power, this bonus ratio is applied to Total Shares ofcompany Including Promoter. Anyone can check in bonus history that ifbonus is 1:1, than on ex date total shares of company become double soprice adjusted to 50%.

Take a example that if a company have 100 crore share, price of eachis 1000, so total market capital of company is 100x1000=1,00, 000 (1lack ) crore. Suppose bonus is issued 1:1 ratio than on ex date in themarket total shares are 200 crore, if we apply our sense than it isdefinitely not possible that with same price 200x1000= 2,00,000 (2lack crore) just over one night, So on ex date price will be 500 andmarket capital is same 200x500=1,00, 000 (1 lack) crore. Onlydifference is that before bonus company has liability of 100 croreshare of face value 10 each, so total face value(called as Paid upcapital) is 100x10=1000 crore. If company announce bonus of 1:1, thanface value (paid up capital) 200x10=2000 crore. Dividend is given onface value, if company announce dividend of 20% before bonus, thancompany liability is 1000x20/100= 200 crore dividend, And if companyannounce same dividens after bonus company has liability of2000x20/100= 400 crore.

So practically after bonus total market capital of company remain samebut total face value is increased proportionally and we get moredividend if announced after bonus.

Now come to Rel power. Here total share are 226 crore before bonus(anyone can check at NSE site). So paid up capital is 226x10(facevalue)=2260 crore . Bonus is 3:5 for non-promoter only(which arehaving only 22.8 crore share out of 226 crore), so after bonus totalshare are not 226x8/5=361. 6 crore but 203.2 crore(promoter) + 22.8(nonpromoter) + 22.8x3/5(=13. 68)(bonus) = 239.7 crore total. Plz gothrough 25.02.08 Rel Power NSE announcement on second page 17th line,that paid up equity shares are increase to 239.7 crore.

So, before bonus and after bonus company capital should be same(if nobig fall in market on ex date). Currently Rel power is quoting around400, so total market capital is 226 crore x 400=90,400 crore. Afterbonus total share are 239.7 crore, so keeping the same market capitalreduced price is 90,400/239.7= 377 which in other way 400x226/239. 7=377. Here scene is that Only 10% non promoter are given bonus and out of10% non promoter, if we leave FII, DII etc general public( retailinvestor, HNI )are 4.28%. And this 4.28% common public is unable todigest this opportunity that how 400x5=2000 can be 377x8=3016 just infew days. Did anyone see that FII, DII(MF) are crying on this issue,they are waiting for the opportunity when this common public willrelease their bonus share (which they are unable to digest) on ex dateat lower price and they will grab it. Dear investor compare the priceon the basis of total market capital before and after bonus. Some bigfish will try to low the price on and after ex date to compel smallinvestor to release their stake. Many are creating panic in marketthat ex bonus price will be around 300 or even less Than think in waythat 239.7 crore x 300=71,910 crore market capital. Did Anil announcebonus that company which was of 90,000 crore would become of 70,000crore. Believe on him he will take care for that but u all have tokeep patience for some time. Controlling price is also in public hand,if we all don't sell on ex date how price will come down, than onlyFII and DII will left and they are enough sensing the situation.

If u all can wait for three-six month than price will come around 500as project progress happen than imagine 400x5=2000 will be 500x8=4000,100% return in around 4 month. So don't think of selling but digestthe opportunity with sense(total market capital of company before andafter bonus). Best of luck.

Source: Internet

Markets Today

Markets Snapshot
Market closes near day's low on back of cues from US markets
Fed cuts GDP growth forecast, raises inflation and unemployment outlook
Sensex ends down 336 pts at 16907; NIfty down 92.2 pts at 5025NIfty finds constant support around 5020 during the day
CNX Midcap Index down 1.7%, BSE Small-cap Index down 1.4%
All BSE Sectoral Indiced end in the red
BSE Bank Index down 3% ahead of inflation data tomorrow; PNB down 3.7%, ICICI bank down 3.4%, SBI down 3.3%
BSE Realty Index down 2.7%; Unitech down 3%, DLF down 1.7%
BSE Cap Goods Index down 2.4%; BHEL down 1.3%, L&T down 2.5%
Index losers; Suzlon down 6%, Tata Motors down 4%, Idea down 3.9%, Rel Infra down 3.9%
Profit booking seen in tea and petro-related stocks
Tea Stock: Williamson Magor down 9%, McLeod Russel down 6.4%, Assam Co down 3.5%
Petro-related stock: Andhra Petro down 8.2%, Supreme Petro down 8.3%, Sah Petro down 7.6%
Profit booking; Videocon Appliance down 9%, MIC Elec down 7%, Lanco down 7%
Re-listing: Sylph Tech ends at Rs 200 Vs re-listing price at Rs 152 (hits a high of 800 during the day)
Buzzers: Manali Petro up 7.8%, Gujarat Siddhe up 10%, Shree Digivijay up 9.2%, Ispat up 4.4%
NSE Advance Decline ratio at 1:3
Total market turnover at Rs 64678 cr Vs Rs 61843 cr on Wednesday
Total NSE F&O turnover at Rs 45076 cr Vs Rs 39481 cr on Wednesday
F&O Snapshot
Nifty futures end at 2 pts premium after trading around 5-10 pts discount through out day
Fresh sohrts seen in Nifty futures; add 38 lakh shares in OI
Hugh Unwinding seen in Nifty Put options
Short Positions seen in Real Estate, Banking & Fmcg Sector
Nifty 5100 put shed 3 lakh shares in OI
Nifty 5000 put shed 2.65 lakh shares in OI
Nifty 5200 put shed 1.4 lakh shares in OI
Nifty 4800 put add 2.65 lakh shares in OI
Momemtum Stocks Unwinding :
HOEC down 5.7%; sheds 9.7 lakh shares in OI
Chambal Fert down 5.3%; sheds 37 lakh shares in OI
RNRL down 3.5%; sheds 13.5 lakh shares in OI
Praj Ind down 3%; sheds 5.5 lakh shares in OI
JP Hydro 3.4%; sheds 4.3 lakh shares in OI
Fresh Shorts:
IDFC down 4.5%; adds 16.4 lakh shares in OI
Suzlon down 5.8%; adds 14.4 lakh shares in OI
SBI down 3.6%; adds 5.1 lakh shares in OI
Short Built up Continues :
GMR Infra down 5%; adds 15.1 lakh shares in OI
Unitech down 3.5%; adds 5.3 lakh shares in OI
ICICI Bank down 3.9% ; adds 3.9 lakh shares in OI
NTPC down 2.2%; adds 3.9 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 22nd May

Indian Stock Market may open nagetive and see some selling presure as all global markets are trading lower and US Markets closed dip in red yesterday. But Indian stock market can recover again from lower levels and a flat to nagetive closing expected.

Today's Intraday Trading Tips:

PRAJ INDUSTRIES
IFCI
VOLTAS
HDIL
NEYVELI LIGNITE
RENUKA SUGAR

For Levels and Targets download the file by CLICK HERE.

Others: Keep an eye on Hind Oil Exploration, Selan Exploration, Videocon Industries, Essar Oil etc. as crude is trading very high at $135.

Good Luck

Stock Idea: CEAT Ltd., Titan Industries

Sharekhan has maintained its buy rating on Ceat with a revised price target of Rs 196 in its May 20, 2008 research report. "Ceat's Q4FY2008 results are ahead of our expectations, mainly on the sales front. The net sales of the company grew by 14.8% to Rs 646.2 crore in the quarter. The original equipment (OE) sales continued to decline whereas the replacement sales grew strongly by 28.2% in Q4FY2008. The operating profit margin (OPM) declined by 180 basis points to 6.0% as a result of a higher raw material cost. Consequently, the operating profit declined by 12.3% to Rs 38.5 crore."
"We maintain our positive view on Ceat, as the stock is trading at very cheap valuations. The volume growth could be higher than our expectations in view of the improvement in the OE volumes, the company's ability to pass on any further rise in input prices to its customers and the cooling off of the key raw material prices. At the current market price of Rs119 the stock is trading at 5.2x its FY2010 earnings of Rs24.5 and enterprise value (EV/earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.8x. We maintain our Buy recommendation on Ceat with a revised price target of Rs 196," says Sharekhan's research report.

Hem Securities has recommended a buy rating on Titan Industries with a target price of Rs 1630 in its May 20, 2008 research report. "The company has posted excellent results in the year 2008. Net sales have surged to Rs 3046 million showing a growth of 42.57%. The revenues from the jewellery and watches segment have been on a continuous uptrend. Net profit margins have been under pressure but the ongoing expansion plans of the company will enhance the profitability too. EPS for the year ended March 2008 comes out to Rs 33.24 against Rs 22.50 in 2007." "The company has posted a CAGR of 39.02% in the topline and 91.74% in the bottomline over a period of 3 years. The diversified range of products and strong brand presence in the market are expected to leverage its growth. New ventures like Titan eye+ and Gold plus are targeted to tap opportunities in the unexplored segments. The company’s foray into Precision engineering is also expected to become a significant contributor to the revenues in the coming years. Presently, the stock is trading at Rs 1212 which is at 36.46 times to its earnings and 12.07 times to its book value. Keeping in mind the prospects offered by the company, we initiate a ‘BUY’ signal on the stock with a target price of Rs 1630 in the medium to long term investment horizon, expecting an appreciation of 34%," says Hem's research report.

Markets Today

Markets Snapshot
Markets recover from days low in line with Asian markets
Sensex ends up 13 pts at 17243; recovers nearly 200 pts from days low
Nifty ends up 12.7 pts at 5118; recovers nearly 70 pts from days low
Midcap and small cap continue to outperform major indices
CNX Midcap Index up 0.78%; BSE Small-cap Index up 1.5%
BSE Oil & Gas Index up 2.36%; Nymex July crude hits new high of $ 130.28/bbl
Oil & Gas stocks; RIL up 2.5%, RPL up 3.8%, BPCL up 2.25%
BSE Metal Index up 1.24%; Metal stocks; Nalco up 5.2%, Tata Steel up 3%
BSE Bank Index down 1.4%; HDFC Bank down 3.5%, ICICI Bank down 1.7%, PNB down 1.5%
Tea and petro stocks buzz in midcap and small cap space
Tea stocks; Harrison Malayam, Duncans up 20%, Jay Shree Tea up 17%
Petro stocks; Manali Petro up 20%, Andhra Petro up 17%, Supreme Petro up 16%
Other buzzers; Videocon Appliances up 20% for 2nd day runinng
Relisting: KGN Ind shares suspended during the day; ends at Rs 15000 Vs relisting price of Rs 72, volumes traded at 827 shares
NSE Advance Decline at 2:1
Total market turnover at Rs 61843 cr Vs Rs 52860 cr on Tuesday
Total NSE F&O turnover at Rs 39481 cr Vs Rs 33290 cr on Tuesday
F&O Snapshot
Nifty futures prem at 7 pts Vs 8 pts discount yesterday; add 19.3 lakh shares in OI
Some p[rofit booking seen in the last half an hour of trade; Nifty OI addition came down to 19.3 from 29 lakh shares
5000 put add 1.85 lakh shares in OI; 4800 put shed 1.5 lakh shares in OI
5000 call add 1 lakh shares in OI
Momentums stosk witness long additions like Chambal Fert, RPL, Nag fett, Ispat, Praj, RNRL, HOEC, Essar Oil
Short covering seen in Rel Power, IDBI, lanco, India cement, BHEL, DRL
Fresh shorts seen in NTPC, HUL, ICICI Bank
Buzzers in F&O
Praj up 11%; add 10.3 lakh shares in OI
Aptech up 9.3%; add 71 thousand shares in OI
IFCI up 7.8%; add 64 lakh shares in OI
HOEC up 7%; add 14 lakh shares in OI
Chambal fert up 6%; add 29 lakh shares in OI
source: moneycontrol.com

Intraday Trading Calls for 21st May

Indian Stock Market may open with gap down. A smart recovery expected from lower levels. Flat to nagetive closing expected.

Today's Intraday Trading Tips:

CAIRN INDIA
VOLTAS
STERLITE INDUSTRIES
VIDEOCON INDUSTRIES
PFC
RENUKA SUGAR

For Levels and Targets download the file by CLICK HERE.

Others: GMR Infra, TTML, Adlabs & NTPC all these stocks may recover very fast from day's low.
Good Luck