Indian Stock Market may open Flat to positive and remains positive.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
BANK OF BARODA (228)
YES BANK (60)
GODREJ INDUSTRIES (72)
HDIL (136)
SATYAM COMPUTER (287)
MED TO LONG TERM DELIVERY BUY:
Buy Videocon Industries (511389) CMP Rs. 100/- for Med to Long term for 100% gain.
Buy Andhra Petro (500012) CMP Rs. 10/- For Med to Long Term Target Rs. 35+.
Buy Ansal Buildwell (523007) CMP Rs. 16/- For Med to Long Term Target Rs. 60+.
Buy Golden Tobacco Ltd (500151) CMP Rs. 50/- For Med to Long Term Target Rs. 150-200.
Good Luck
Tuesday, October 28, 2008
Monday, October 27, 2008
Intraday Trading Calls for 27th October
Indian Stock Market may open Flat to positive and remains the same with high volatility throughout the day today.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
BANK OF BARODA (245)
Buy Above 247.60 Target 254.50, 265.00
Sell Below 242.40 Target 238.15, 232.00
WIPRO (235)
Buy Above 237.80 Target 243.15, 250.00
Sell Below 233.05 Target 229.10, 225.00
SATYAM COMPUTER (287)
Buy Above 289.20 Target 295.40, 305.00
Sell Below 284.40 Target 280.05, 275.00
TECH MAHINDRA (336)
Buy Above 338.60 Target 345.35, 355.00
Sell Below 333.20 Target 328.40, 320.00
HDIL (137)
Buy Above 138.55 Target 142.35, 148.00
Sell Below 135.20 Target 131.15, 124.00
RCOM (193)
Buy Above 195.65 Target 201.55, 210.00
Sell Below 191.45 Target 187.10, 182.00
Buy Videocon Industries (511389) CMP Rs. 115/- for Med to Long term for 100% gain.
Good Luck
Sunday, October 26, 2008
Stock Idea: Sunil Hitech Ltd.
Sunil Hitech Ltd. (Code: 532711) (Rs.65.45) is engaged in the niche segment of fabrication, erection & testing and commissioning of bunkers, ESPs, boilers, TG sets in the power plants both in the private & public sectors. With a client list spanning BHEL, NTPC, Reliance Energy, Jindal Steel and Power, the SEBs of Maharashtra, Chhattisgarh and Madhya Pradesh, Sunil Hitech is also engaged in the overhaul and maintenance of plants to ensure proper functioning. The company also undertakes projects in the transmission and distribution segments. As of today, it has an all time high order book position of more than Rs.1300 cr., which is 4 times its FY08 turnover. Incidentally, the company has an under leveraged balance sheet with a low debt:equity ratio of 0.6 and can raise more debt comfortably. Despite the higher interest cost, it may end FY09 with a topline of Rs.500 cr. with PAT of Rs.20 cr. on a conservative basis. This translates into an EPS of Rs.16 on its current equity of Rs.12.30 cr. Secondly, it has huge reserves of Rs.145 cr. on its small equity leading to a healthy book value of Rs.128. Against the net current assets of Rs.120 cr., the stock is available at a market cap of less than Rs.100 cr., making it a steal.
Source: Moneytimes (internet)
Stock Idea: Aban Offshore Ltd.
Aban Offshore Ltd. (Code: 523204) (Rs.750.10) is engaged in providing oil field services for offshore exploration and production of hydrocarbons in India and abroad. With 21 offshore assets, it is among the top ten offshore drilling asset owners in the world. It possesses fifteen jack-up offshore drilling rigs, three drill ships, one floating production platform and a jack-up rig & drill ship each on bare boat charter. It is among the few global companies to facilitate oil exploration at water depths ranging from 250 ft to 7000 ft and drilling depths ranging between 20,000 ft and 30,000 ft. Having its footprint globally across 10 nations, the company boasts of serving leading global and domestic E&P companies such as ONGC, Shell Brunei, Shell Malaysia, Cairn Energy, Petronas Carigali, Exxon Mobil, Chevron, Hardy Exploration, Oriental Oil Dubai, ROC Oil China, and GSPC to name a few. Due to new vessel deployment and higher charter rate, it may clock a consolidated turnover of Rs.3250 cr. with NP of Rs.500 cr. This will translate into an EPS of Rs.129 cr. on its diluted equity of Rs.7.75 cr. Meanwhile due to likely distress selling by FIIs, its share price of company has tumbled down to Rs.1000 level from a high of Rs.5500 in January 2008. Hence the currently scrip is trading at a P/E multiple of merely 8, which is grossly cheap for a company of such calibre. Keep accumulating at sharp declines.
Source: Moneytimes (Internet)
Stock Idea: Navin Fluorine Ltd.
Navin Fluorine Ltd.
BSE Code: 532504/NSE
Last Close: Rs.133
Navin Fluorine is the largest integrated fluorochemicals complex in India since 1967. The company has an equity of just Rs.10.10 cr. but has huge reserves of over Rs.215 cr. The promoters hold 37.16%, corporate bodies hold 15.53%, government financial institutions hold 7.05% and the public holds 38.69% stake in the company. The company has posted excellent Q2FY09 results. Net sales jumped 73.57% while net profit was Rs.17.87 cr. against a loss of Rs.1.81 cr. in Q2FY08. In H1FY09, the company’s sales zoomed 75.45% to Rs.222.82 cr. while net profit was Rs.36.83 cr. against a loss of Rs.1.89 cr. in H1FY08. The company has recorded an EPS of Rs.17.69 in Q2FY09 while the H1FY09 EPS was Rs.36.47. After posting marvellous numbers, the company has declared 50% interim dividend as against FY08 full yaer dividend of 40% and the record date for dividend is 7th November 2008. Its 52-week high/low rate is Rs.455/Rs.130. At the current level, the stock is available at P/E ratio of just 2.9. Investors can buy this stock every decline. On the upper side, it can go up to Rs.175-201 levels in coming days.
BSE Code: 532504/NSE
Last Close: Rs.133
Navin Fluorine is the largest integrated fluorochemicals complex in India since 1967. The company has an equity of just Rs.10.10 cr. but has huge reserves of over Rs.215 cr. The promoters hold 37.16%, corporate bodies hold 15.53%, government financial institutions hold 7.05% and the public holds 38.69% stake in the company. The company has posted excellent Q2FY09 results. Net sales jumped 73.57% while net profit was Rs.17.87 cr. against a loss of Rs.1.81 cr. in Q2FY08. In H1FY09, the company’s sales zoomed 75.45% to Rs.222.82 cr. while net profit was Rs.36.83 cr. against a loss of Rs.1.89 cr. in H1FY08. The company has recorded an EPS of Rs.17.69 in Q2FY09 while the H1FY09 EPS was Rs.36.47. After posting marvellous numbers, the company has declared 50% interim dividend as against FY08 full yaer dividend of 40% and the record date for dividend is 7th November 2008. Its 52-week high/low rate is Rs.455/Rs.130. At the current level, the stock is available at P/E ratio of just 2.9. Investors can buy this stock every decline. On the upper side, it can go up to Rs.175-201 levels in coming days.
Source: Moneytimes (internet)
Friday, October 24, 2008
Intraday Trading Calls for 24th October
Indian Stock Market may open Nagetive with gap down but sharp recovery expected at mid session.
Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):
BANK OF BARODA (275)
Buy Above 276.80 Target 283.45, 290.00
Sell Below 273.20 Target 268.70, 262.00
WIPRO (272)
Buy Above 274.60 Target 280.15, 288.00
Sell Below 270.05 Target 265.30, 260.00
SATYAM COMPUTER (300)
Buy Above 302.40 Target 309.60, 320.00
Sell Below 297.10 Target 292.10, 285.00
TECH MAHINDRA (376)
TECH MAHINDRA (376)
Buy Above 378.50 Target 385.35, 395.00
Sell Below 373.40 Target 368.25, 360.00
HDIL (150)
Buy Above 151.25 Target 155.35, 160.00
Sell Below 148.60 Target 145.15, 140.00
RCOM (230)
Buy Above 232.65 Target 240.30, 250.00
Sell Below 227.20 Target 223.10, 218.00
GOOD LUCK
Thursday, October 23, 2008
Low Inflation – Liberal ECB
Inflation fell to 11.07% for week ended 11th October 08 against 11.44% of the previous week. The inflation was 3.07% for the corresponding week of the previous year. However, inflation for week ended 16-08-08 was revised upwards to 12.82% from 12.40%.
Looking to the steep fall in global commodity prices like crude, steel, non-ferrous metals as also due to food prices coming under control on the domestic front, due to ensuing kharif crop and liquidation of foodgrain stocks by the traders, we are expected to see inflation softening in single digit by end of November 08 itself. This was earlier expected or likely to happen by end of December or in the first week of January. With Indian crude basket now ruling at close to $ 61 per barrel, we may see reduction in oil prices by the government, which may also help us in seeing lower inflation. Also oil marketing companies, announce the price of non-administered oil products every 1st and 15th of the month, the data of next week’s inflation may be quite low, as effect of falling crude price is not reflected in these datas as they pertain for week ending 10th October 08.
Due to lower inflation figures, which are market friendly, the government has again started releasing them during market hours at 12 noon. When they were on rise, government have been releasing them in the evening, as rising figures were spoiling the market sentiments.
Inspite of a drop in inflation, stock market has not responded too well to these. Maybe, the present problem for the market is not of inflation but of liquidity. And as stated by us in our previous stories, RBI has been pro-active and have gone for CRR cut of 250 bps and Repo rate cut of 100 bps, to inject the liquidity in the system and to make borrowings bit cheaper.
One more step in this direction was taken by the government and RBI by easing the ECB norms, which will help Indian companies to borrow from overseas market to fund its projects.
The revised rules permit ECBs upto $ 500 million per borrower per financial year, for rupee or foreign currency expenditure for permissible end uses under the automatic route. The norm of a minimum average maturity period of seven years for ECB of more than $ 100 million for rupee capital expenditure by borrowers in the infrastructure sector has been dispensed with. Definition of infrastructure sector has also been widened to include mining and refining, henceforth.
Revised rules provide for companies to pay a higher interest of upto 500 bps over the six month LIBOR on ECBs. Borrowers can bring in the proceeds immediately and can also use dollar borrowings for rupee expenditure. Presently, ECB proceeds are required to be parked overseas until actual expenditure takes place. Telecom companies would also be allowed to use ECB for payment of licence/permit for 3G Spectrum. However, this will not be allowed for realty and inter-corporate loans.
This is with a view to ease liquidity in the domestic system as also to stop rupee weakening further, which is ruling close to 50 levels.
India would see short term debt redemption of $ 89 billion between July 08 to July 09 and this could put further pressure on the rupee. This redemption is equal to about 40% of country’s total external debt of $ 220 billion as on date.
So unless, we have huge forex inflow in the next 6 – 12 months, we may see huge imbalance and could see rupee falling to 53 – 54 levels..
The relaxation in ECB norms may not result in an immediate inflow of funds due to widening, spreads over LIBOR and huge credit crunch faced by global markets with huge financial turmoil in US and Europe. But, for the established Indian companies with good track record and good projects, would be able to source funding, as some lenders would also be forthcoming to lend, to keep its business running.
Though market is not responding to both these positive news, as they are driven by global sentiments, which are quite negative but would help in the medium to long term for the Indian economy.
Looking to the steep fall in global commodity prices like crude, steel, non-ferrous metals as also due to food prices coming under control on the domestic front, due to ensuing kharif crop and liquidation of foodgrain stocks by the traders, we are expected to see inflation softening in single digit by end of November 08 itself. This was earlier expected or likely to happen by end of December or in the first week of January. With Indian crude basket now ruling at close to $ 61 per barrel, we may see reduction in oil prices by the government, which may also help us in seeing lower inflation. Also oil marketing companies, announce the price of non-administered oil products every 1st and 15th of the month, the data of next week’s inflation may be quite low, as effect of falling crude price is not reflected in these datas as they pertain for week ending 10th October 08.
Due to lower inflation figures, which are market friendly, the government has again started releasing them during market hours at 12 noon. When they were on rise, government have been releasing them in the evening, as rising figures were spoiling the market sentiments.
Inspite of a drop in inflation, stock market has not responded too well to these. Maybe, the present problem for the market is not of inflation but of liquidity. And as stated by us in our previous stories, RBI has been pro-active and have gone for CRR cut of 250 bps and Repo rate cut of 100 bps, to inject the liquidity in the system and to make borrowings bit cheaper.
One more step in this direction was taken by the government and RBI by easing the ECB norms, which will help Indian companies to borrow from overseas market to fund its projects.
The revised rules permit ECBs upto $ 500 million per borrower per financial year, for rupee or foreign currency expenditure for permissible end uses under the automatic route. The norm of a minimum average maturity period of seven years for ECB of more than $ 100 million for rupee capital expenditure by borrowers in the infrastructure sector has been dispensed with. Definition of infrastructure sector has also been widened to include mining and refining, henceforth.
Revised rules provide for companies to pay a higher interest of upto 500 bps over the six month LIBOR on ECBs. Borrowers can bring in the proceeds immediately and can also use dollar borrowings for rupee expenditure. Presently, ECB proceeds are required to be parked overseas until actual expenditure takes place. Telecom companies would also be allowed to use ECB for payment of licence/permit for 3G Spectrum. However, this will not be allowed for realty and inter-corporate loans.
This is with a view to ease liquidity in the domestic system as also to stop rupee weakening further, which is ruling close to 50 levels.
India would see short term debt redemption of $ 89 billion between July 08 to July 09 and this could put further pressure on the rupee. This redemption is equal to about 40% of country’s total external debt of $ 220 billion as on date.
So unless, we have huge forex inflow in the next 6 – 12 months, we may see huge imbalance and could see rupee falling to 53 – 54 levels..
The relaxation in ECB norms may not result in an immediate inflow of funds due to widening, spreads over LIBOR and huge credit crunch faced by global markets with huge financial turmoil in US and Europe. But, for the established Indian companies with good track record and good projects, would be able to source funding, as some lenders would also be forthcoming to lend, to keep its business running.
Though market is not responding to both these positive news, as they are driven by global sentiments, which are quite negative but would help in the medium to long term for the Indian economy.
By SP Tulsian
source: sptulsian.com
Subscribe to:
Posts (Atom)
