Tuesday, August 26, 2008

Intraday Trading Calls for 26th August

Indian Stock Market may open Nagetive but it may recover from lower levels very fast and a flat to positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

CAIRN INDIA (244.70)
Buy Above 246.15 Target 250.00, 254.50
Sell Below 243.05 Target 239.45, 235.00
MERCATOR LINES (79)
Buy Above 80.20 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
CHAMBAL FERTILIZER (77.70)
Buy Above 78.60 Target 81.35, 84.00
Sell Below 76.50 Target 74.45, 71.65
SEL MANUFACTURING (287)
Buy Above 290.55 Target 298.75, 310.00
Sell Below 284.20 Target 277.05, 265.00
SASKEN COMMUNICATION (153)
Buy Above 154.40 Target 157.80, 162.00
Sell Below 151.75 Target 148.25, 144.00
PRAJ INDUSTRIES (175)
Buy Above 176.65 Target 180.45, 185.00
Sell Below 173.70 Target 170.15, 166.00

Others for Intraday: INFOSYS TECH, SATYAM COMPUTER, TECH MAHINDRA, HCL TECH, MPHASIS BFL, ROLTA INDIA, RPL.

GOOD LUCK

Monday, August 25, 2008

Intraday Trading Calls for 25th August

Indian Stock Market may open gap up and remains positive for the day today. A smart & Strong rally expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
CAIRN INDIA (247)
Buy Above 248.45 Target 252.35, 256.00
Sell Below 245.50 Target 241.25, 237.00
MERCATOR LINES (79)
Buy Above 80.20 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
ADHUNIK METALIKS (112)
Buy Above 113.60 Target 116.40, 120.00
Sell Below 110.55 Target 108.45, 104.00
SEL MANUFACTURING (285)
Buy Above 288.55 Target 296.75, 305.00
Sell Below 281.80 Target 275.05, 267.00
INDIABULLS (251.50)
Buy Above 253.65 Target 258.80, 265.00
Sell Below 249.50 Target 245.25, 240.00
YES BANK (128)
Buy Above 130.00Target 134.25, 138.00
Sell Below 127.05 Target 124.15, 120.00

Others for Intraday: RPL. REL INFRA, AXIS BANK, KOTAK BANK, PUNJAB NATIONAL BANK, BANK OF BARODA, BANK OF INDIA.

Good Luck

Friday, August 22, 2008

Intraday Trading Calls for 22nd August

Indian Stock Market may Negative and remains the same for the day today. A small recovery expected in mid-session from lower levels.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
CAIRN INDIA (243)
Buy Above 244.75 Target 250.35, 256.00
Sell Below 241.55 Target 238.05, 234.00
MERCATOR LINES (79)
Buy Above 80.10 Target 82.75, 86.05
Sell Below 77.80 Target 75.45, 72.00
HIND OIL EXPLORATION (125)
Buy Above 126.20 Target 129.30, 133.00
Sell Below 124.30 Target 121.45, 118.00
VIDEOCON INDUSTRIES (275)
Buy Above 277.55 Target 282.65, 288.00
Sell Below 272.80 Target 268.05, 262.00
PETRONET LNG (61.50)
Buy Above 62.45 Target 64.75, 67.00
Sell Below 60.50 Target 58.25, 56.00
HINDALCO (129)
Buy Above 130.40 Target 133.25, 136.00
Sell Below 128.05 Target 125.55, 122.00

Others for Intraday: ASIAN OILFIELD, SHIV VANI OIL, SELAN EXPLORATION, GREAT OFFSHORE, SEL MANUFACTURING.
Good Luck

Thursday, August 21, 2008

Fertiliser Companies: Good Time Ahead

The centre has agreed to release Rs.22,000 crores, in cash, to the fertilizer companies against subsidies due to them, by availing loan from SBI and interest on such loan would be paid by the Centre. Another subsidy of Rs.31,000 crores shall be paid within the next three months. Fertiliser Ministry is estimating a total subsidy of Rs.1,15,000 crores for 2008-09, against Rs.30,986 crores, provided for it, in the budget.

In view of sharp rise in crude prices in the year 2008, the prices of feedstock of fertilizer being Furnace Oil and Naptha as well as Natural Gas, have also increased. The cost of production has thus increased with domestic cost of Urea at around Rs.13,000 per MT while imported cost at Rs.31,000 per MT.

The first tranche of subsidy of Rs.30,986 crores, provided in the budget, already got exhausted in first four months. An eyebrow by the industry experts were raised at the time of budget provision of Rs.30,986 crores, considering the fact that it was inclusive of a backlog of about Rs.8,000 crores and against a subsidy of Rs.45,000 crores of year 2007-08.

In view of administered selling price of fertilizers, presently subsidy component is almost 80% of the cost of production, and for the first time, the subsidy payment was made by the government last year by issuing Fertiliser Bonds, for the first time, of Rs.7,500 crores last year. Obviously, issuing bonds helps the government to curtail its deficit as these items are appearing below the line.

Finance Minister, while presenting his Budget for 2008-09, has given a separate para for “Revisiting the Roadmap for Fiscal Adjustment, which reads as under :--

“I acknowledge that significant Liabilities of the Government on account of oil, food and fertiliser bonds are currently below the line. This accounting arrangement is consistent with past practice. Nevertheless, our fiscal and revenue deficit are understated to that extent. There is a need to bring these Liabilities into our fiscal accounting. As a first step I have shown these liabilities clearly in “Budget at a Glance”. I intend to request the Thirteenth Finance Commission to revisit the roadmap for fiscal adjustment and suggest a suitably revised roadmap.”

Inspite of having realized the flaws of understating the fiscal deficit by issuing bonds, finance ministry, this time, were also keen to issue bonds only. All the bonds received by fertiliser company were discounted by them and the present discount rate on such bonds are as high as 15 per cent. Since these bonds are not having SLR status, even banks are not too keen to buy them.

Sometime back, the government had cleared the Urea pricing policy. Out of the estimated demand of 40 million MT of fertilisers in the country, Urea demand constitutes about 27 million tonnes while domestic production is close to 20.5 million tonnes only. The gap of over 6 million tonnes is purely met by the imports, on which, subsidy burden alone comes to over Rs.15,000 crores. In 06 – 07 the total demand of Urea was at 25 million tonnes against production of 20.3 million tonnes while that of DAP at 8 million tonnes against production of 4.86 million tonnes.

With Urea pricing now in place for incremental production by the domestic companies, which is linked to Import Parity Price within a band of 85% to 95% with a floor and cap of $ 250 per MT to $ 425 per MT, would encourage the companies to expand. The present cost of production of Urea by a domestic company is at $ 300 per MT while imported Urea cost about $ 710 per MT. Considering new investments on capacity expansions or de-bottle necking, the companies would be able to realize about $ 360 per MT (85% of cap price of Urea of $ 425 per MT). But these companies were wary of receiving subsidy reimbursement by way of bonds as it was putting about 10% loss to them on redeeming these bonds.

In India, prominent Urea manufacturers are Chambal Fertilisers, RCF, (Thal Plant) National Fertilisers, (2 Plants) Indo Gulf Ferilisers, GSFC, Nagarjuna Fertilisers and Tata Chemicals all are gas based, while GNFC, National Fertilisers (3 Plants), Zuari are either FO or Naptha based urea plants. Some of the DAP makers are Coromandal Fertilisers, RCF, and Deepak Fertilisers.

With dust having settled on payment of subsidy by the government in cash as also on Urea pricing, fertiliser companies would be encouraged to go for expansion, which should result in higher production after 12 months. But let’s hope that government does not revert back, to issue of fertiliser bonds, as this time, it has not happened due to PM’s intervention in the matter.

If we have assured supply on Natural Gas and payment of subsidy by the government in cash, fertiliser companies have good time ahead.

Intraday Trading Calls for 21st August

Indian Stock Market may open flat. A small rangebound trading expected today.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

BALAJI TELEFILMS (164)
Buy Above 165.60 Target 169.35, 174.00
Sell Below 162.50 Target 159.05, 155.00
MERCATOR LINES (83)
Buy Above 83.70 Target 86.45, 89.05
Sell Below 81.60 Target 78.75, 75.
INDIABULLS (272)
Buy Above 274.60 Target 280.00, 288.00
Sell Below 269.30 Target 265.15, 260.00
SEL MANUFACTURING (314)
Buy Above 318.75 Target 326.45, 336.00
Sell Below 310.00 Target 300.05, 290
RCOM (415)
Buy Above 417.65 Target 423.85, 430.00
Sell Below 412.40 Target 406.05, 398.00
HCC (100)
Buy Above 101.60 Target 105.40, 109.00
Sell Below 99.25 Target 96.05, 92.00

Others for Intraday: CAIRN INDIA, SELAN EXPLORATION, HIND OIL EXPLORATION.

Good Luck

Wednesday, August 20, 2008

STOCK IDEA: HCC

Hindustan Construction Company or HCC as it is popularly known, is a well known civil engineering company. This is the company which built the Mumbai-Pune expressway, built India’s first underground metro at Kolkata and the second one in New Delhi, made the world’s longest barrage at Farakka in West Bengal, built the unique double curvature arch dam at Idukki in Kerala and also made one of Asia’s largest breakwaters at Ennore Port in Tamil Nadu. It would thus be wrong call it as a mere realty company.

The financial performance of the company for the first quarter ended 30th June 2008, like all in the sector, has been affected but mainly on account of a forex loss which, to a large extent was nullified on account of sale of one of its property.

The turnover of the company rose 22.5% on a YoY at Rs.895 crore. Its EBITDA margin was up 16% at Rs.91 crore. PBT stood at Rs.39 crore as against Rs.56 crore in the previous year same quarter owing to decline in other income (Rs 13 crores this quarter as against Rs 32 crores last year).

But what is also significant to note is that its other income includes a capital gain on sale of its land at Vikhroli (East) of Rs 61.9 crore. It also has a forex MTM loss of Rs.50.6 crore. So if both these are taken into account, the other income has increased by Rs.11.30 crore.

There is no doubt, going by the trend in the industry that there will be a slowdown in the orders. Apart from the soaring costs, being a civil engineering company, where most of the projects are dependent largely on debt, the higher interest rates at the moment would be an impediment. HCC has a well diversified order backlog of Rs 10,196 crore. It is currently executing 37 projects including the two projects it recently bagged in this quarter. HCC is the lowest bidder in four projects worth Rs 4924 crore (HCC share) and is awaiting award of the contracts. Further, it has several tenders under submission worth Rs.11,174 crore.

This means, that to a large extent, HCC will be insulated from taking a turn for the worse. It will be able to maintain its growth but rising above it would be a challenge.

Its wholly owned real estate subsidiary, HREL, is developing LEED certified, state-of-the-art, 1.8 million sq ft multi-tenanted IT Park located at Vikhroli, Mumbai. It is also developing India’s largest Hill Station, Lavasa, spread across a picturesque landscape of 12,500 acres, located 45 minutes away from Pune. Axis Bank has invested Rs.250 crore in this project in the form of convertible preferential shares and debentures. That places the valuation of Lavasa at about Rs 10,000 crore. In terms of direct sales, its June tranche of sales was sold out in about 5-6 days and till date its registered revenue from sales is about Rs.550 crore in Lavasa.

Currently quoted at Rs.97, stay invested and it makes an attractive buy if it falls below Rs.80.

Source: sptulsian.com

Intraday Trading Calls for 20th August

Indian Stock Market may open positive. Smart rally expected today in Stock Market India.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

BALAJI TELEFILMS (169)

Buy Above 170.60 Target 174.55, 179.00
Sell Below 167.70 Target 164.05, 160.00
MERCATOR LINES (80)
Buy Above 80.80 Target 83.95, 88.05
Sell Below 79.00 Target 76.15, 73.
PUNJ LLOYD (281)
Buy Above 283.50 Target 288.25, 295.00
Sell Below 279.10 Target 274.75, 270.00
SEL MANUFACTURING (310)
Buy Above 313.85 Target 322.40, 335.00
Sell Below 307.20 Target 300.05, 290
INDIABULLS REALEST (311)
Buy Above 314.20 Target 320.10, 328.00
Sell Below 308.80 Target 302.05, 295.00
ESSAR OIL (221)
Buy Above 222.75 Target 227.45, 232.00
Sell Below 219.45 Target 215.35, 210.00

Others for Intraday: RPL, RCOM, REL Infra, RPOWER, CAIRN INDIA.

Short Term Delivery Buy SELMCL 532886 (310) Target 450+
Very Short Term Delivery Buy SCI 523598 (215) Target 260+

Good Luck

Disclaimer

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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