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