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The market reacted sharply towards the RBI credit policy but it recovered sharply to close the day in favour of the bulls. As i said in my earlier post for today, one should think to go long only if the nifty closes above 4515 and today the nifty closed at 4528.85. One can think of going long now but please be cautious since any negative global cues can take indian market down.

Tomorrow, market may open flat or positive with mixed bias attached with high volatility and remain long above 4510 with SL 4495 for a tgt of 4564-4599. If it breaks and sustain below 4505 keep short with SL 4520 for tgt 4463-4397. Trade intraday and mint money... go long with caution for the time being.....safe investing

Market stopped its carange but could not sustain pressure at higher levels and it fell sharply in the last hour. The market has stopped its carnage and is now in a consolidation mood. Now, selling pressure will remain at higher levels still the market closes above 4515. One should think of going long only after the market closes above the said level of 4515.

Tomorrow, market may open flat or negative with a huge gap down of 50-80 points, with mixed bias attached with high volatility and remain long above 4445 with SL 4430 for a tgt of 4487-4515. If it breaks and sustain below 4440 keep short with SL 4465 for tgt 4398-4356. Trade intraday and mint money... dont go long for the time being.....safe investing

Market remained under pressure from higher levels but as i have admitted earlier, i had not expected such a carnage in the market. More downslides are left but the reaction of the market towards RIL & SBI results may lift the market from another carnage. as of now, expect a carnage on monday too....

Tomorrow, market may open flat or negative with a huge gap down of 50-80 points, with mixed bias attached with high volatility and remain long above 4485 with SL 4465 for a tgt of 4540-4555. If it breaks and sustain below 4480 keep short with SL 4495 for tgt 4370-4345. wait for the market to stop the carnage....

POST-MARKET ANALYSIS - JUL 27 2007 :Get the daily Market Review & Tips

GLOBAL FALL TIRGGERS CORRECTION

The market was gripped with intense selling pressure throughout the day’s trading session, following sharp fall in US and Asian stocks. There was bloodbath on the street with all most sectoral indices on BSE posting sharp losses. Despite the sharp fall, the turnover was very high today, 27 July 2007.

All the Asian markets settled with sharp losses while most European markets were trading weak.

The BSE 30-share Sensex plunged 541.74-point, or 3.4%, to 15,234.57, its biggest rout in a single trading session in nearly four months. The Sensex had tumbled 617 points on 2 April 2007 following the Reserve Bank of India (RBI)’s surprise hike in interest rates announced after trading hours on 30 March 2007.

Sensex opened lower today, 27 July 2007 at 15,487.76 and recovered some ground to hit a high of 15,495.51. But the index was not able to sustain the recovery and succumbed to intense selling pressure. It slumped to a low of 15,159.68 at 12:24 IST. At day’s low, the index suffered a sharp fall of 616.63 points

The S&P CNX Nifty plunged 174.20 points or 3.78% at 4,445.20. The Nifty August 2007 futures was at 4,392.85, a sharp discount of 52.35 points as compared to spot closing

All the Asian indices settled with sharp losses. Japanese stocks led Asian markets lower in a broad-based retreat today, 27 July 2007, as export stocks such as Canon Inc. and Honda Motor Corp. were hit hard on concerns over the outlook for the US economy. Nikkei tumbled 2.36% at 17,283.81.

Hang Seng (down 2.76% at 22,572.95), Taiwan Weighted (down 4.22% at 9,162.28), Singapore's Straits Times (down 2.43% at 3,492.70) and South Korea's Seoul Composite (down 4.09% at 1,883.22) declined sharply.

Shanghai Composite was down 0.03% to 4,345.35

Wall Street suffered one of its worst losses in this year so far on Thursday, 26 July 2007, as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones plunged 311.50 points, or 2.26%, to 13,473.57. Broader market indicators also slid. The Nasdaq Composite index declined 48.83 points, or 1.84%, to 2,599.34, while the Standard & Poor's 500 slipped 35.43 points, or 2.33%, to 1,482.66.

The fall on the domestic bourses materialised after a recent solid surge as FIIs stepped up buying on strong Q1 June 2007 results and in anticipation of good results from companies which were yet to unveil their numbers. The Sensex has gained 5.5% in the past one month and nearly 42% in the past one year.

Small-cap and mid-cap shares lost ground. The BSE Mid-Cap index lost 192 points or 2.8% 6,598.32 to while the BSE Small-Cap index slipped 219 points or 2.7% to 7,926.45. The market breadth was weak on BSE with 630 shares advancing as compared to 1,991 that fell, while 62 remained unchanged.

Even as the markets declined, the turnover vaulted. The total turnover on BSE amounted to Rs 6,593 crore as against Rs 5,758 crore on Thursday, 26 July 2007.

The NSE F&O turnover was Rs 65,777.96 crore. The NSE F&O turnover was a record Rs 79,995.85 crore on Thursday, 26 July 2007, on the day of expiry of July 2007 derivative contracts.

Among the Sensex pack, 27 slumped, while three stood tall in the bloodbath.

India’s largest cigarette manufacturer ITC jumped 2.67% to Rs 171 after its net profit rose 20% to Rs 782.87 crore in Q1 June 2007 over Q1 June 2006, exceeding market expectation. ITC raised cigarette prices by about 20% in the first quarter due to tax increases. Sales were up 16.6% to Rs 3,325.23 crore in Q1 June 2007 over Q1 June 2006. Sales growth was within market expectations. It was the top gainer from the Sensex pack.

The BSE FMCG Index outperformed the market. It shed just 0.12% to 1,927.86, led by ITC. Tata Tea rose 0.64% to Rs 759.60, after it on Thursday, 26 July 2007, said it has become the number one domestic packet tea company in terms of volume. For the first time ever, Tata Tea outperformed its nearest competitor Hindustan Unilever (HUL) in June 2007 by garnering a volume share of 19.2%, compared to HUL’s 18.6%.

Ranbaxy Laboratories, India's largest pharma firm by sales, was up marginally by 0.16% to Rs 374. The stock rose for the second straight day after Ranbaxy yesterday, 26 July 2007, reached an agreement with GlaxoSmithKline (GSK) to end the litigation in the US on Valtrex (valacyclovir hydrochloride tablets) used in the treatment of herpes. The stock had jumped 9.95% to Rs 375 on Thursday, 26 July 2007, boosted by the announcement.

North India's largest-selling cement company Ambuja Cements rose 0.76% to Rs 125.35. Other cement stocks also recovered from their lows, still ending the day lower. UltraTech Cement Company (down 6.93% to Rs 865), India Cements (down 5.38% to Rs 195), and ACC (down 3.10% to Rs 990) slipped.

Metal stocks tumbled on intense selling pressure, with BSE Metal Index plunging 5.3% to 11,501.52. It was the biggest loser among the sectoral indices on BSE. India’s largest private sector steel producer Tata Steel slumped 7.92% to Rs 647.75 on 11.53 lakh shares. It was the top loser from the Sensex pack.

JSW Steel (down 2.82% to Rs 727), Hindustan Zinc (down 5.52% to Rs 704), Sterlite Industries (down 4.54% to Rs 628), Hindalco Industries (down 5.68% to Rs 172.55), and Sail (down 5.10% to Rs 147.70) were the other losers from metal pack.

The BSE Bankex lost 3.2% at 7,920.19. Canara Bank (down 6.34% to Rs 263), Bank of Baroda (down 3.74% to Rs 292), HDFC Bank (down 3.54% to Rs 1175.90), State Bank of India (down 3% to Rs 1504.10), and ICICI Bank (down 3.18% to Rs 915), all edged lower.

Capital goods duo, the recent favourites of the market, suffered steep losses. India’s largest power equipment maker Bhel lost 5.14% to Rs 1665 while L&T plunged 4.61% to Rs 2424.90. The BSE Capital Goods index was down 3.8% at 12,748.77.

India’s largest power generation firm National Thermal Power Corporation slipped 4% to Rs 161.10 after it signed a joint venture agreement with Rashtriya Ispat Nigam to set up a 150-MW power plant at Vishakapatnam, Andra Pradesh.

The BSE IT Index lost 2.5% at 4,876.34. Infosys (down 1.25% to Rs 2009.50), Satyam Computers (down 4.67% to Rs 471.50), Wipro (down 4.18% to Rs 490.25), and TCS (down 2.56% to Rs 1155), slipped.

Telecom stocks declined on fresh selling. Reliance Communications, the country’s second largest listed telecom company, plunged 5.40% to Rs 537 while Bharti Airtel, the country’s largest telecom company based on subscribers, slumped 3.61% to Rs 892.

The country’s second largest motorcycle maker Bajaj Auto declined 3.77% to Rs 2,310. French car maker Renault today confirmed that it is in talks with Bajaj Auto for producing a car for around Rs 1.20 lakh ($ 3000).

India’s largest truck maker Tata Motors slumped 4.06% to Rs 701, after it announced that its small car would hit the market in the first half of 2008.

India’s largest private sector company Reliance Industries (RIL) was down 4.12% to Rs 1861, on 21.90 lakh shares. RIL unveils its Q1 June 2007 results tomorrow, 28 July 2007.

The top losers from small-cap and mid-cap space were Sterling Biotech (down 11.8% to Rs 173.60), Tele Data Informatics (down 10.8% to Rs 61.45), NIIT Technologies (down 9.7% to Rs 491.10), Wire & Wireless India (down 8.2% to Rs 57.50), Bombay Rayon (down 8% to Rs 202.70), Emkay Share & Stock Brokers (down 9.5% to Rs 99), KS Oils (down 8.9% to Rs 52.70), Energy Development Corporation (down 7.9% to Rs 58.20) and Nectar Lifesciences (down 7.9% to Rs 227.65).

Select stocks, however, rose in an otherwise weak market: Timex Watches (up 10% to Rs 29.70), Triveni Engineering (up 9.7% to Rs 57.15), Assam Company (up 6.5% to Rs 17.80) and JK Tyres (up 5% to Rs 147.95), surged.

Shares from the real estate pack were hammered brutally, with the BSE Realty index declining 5.25% to 7,823.91. DLF (down 4.78% to Rs 602.55), Unitech (down 6.06% to Rs 557.60), Mahindra Gesco Developers (down 3.70% to Rs 572.95) and Sobha Developers (down 2.13% to Rs 893) declined from the real estate sector.

Venky's (India) jumped 14.31% to Rs 172.10 after its net profit jumped 197% to Rs 9.06 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 37.88% to Rs 124.07 crore in Q1 June 2007 over Q1 June 2006.

GlaxoSmithkline Consumer Healthcare rose 3.63% to Rs 595 after its net profit moved up 36.80% to Rs 42.30 crore in Q2 June 2007 over Q2 June 2006. Sales were up 17.41% to Rs 315.60 crore.

Tata Chemicals lost 2.76% to Rs 250. It posted a 60.79% rise in net profit to Rs 121.16 crore in Q1 June 2007 over Q1 June 2006. Total income decreased 10.4% to Rs 681 crore in Q1 June 2007 over Q1 June 2006.

Moser Baer India rose 1.97% to Rs 311 after the company said its photo voltaic unit has entered into a agreement with Norway's REC Group for sourcing silicon wafers over an eight-year period beginning from 2008.

Ballarpur Industries jumped 7.29% to Rs 131.65. With an aim to create a large asset base company overseas, the company will transfer ownership of its three units at Bhigwan, Ballarpur and Kamalapuram to an overseas subsidiary for Rs 1,950 crore.

Alok Industries gained 5.54% to Rs 67.60 as buying continued after the scrip's 10.81% rally yesterday, 26 July 2007. The company will declare its Q1 results on 31 July 2007.

Lanco Infratech rose 0.81% to Rs 211 after its consolidated net profit spurted 1,103% to Rs 51.28 crore over Q1 June 2006. Total income rose 136.89% to Rs 603.27 crore. The results were announced after market hours on Thursday, 26 July 2007.

Crompton Greaves rose 2.45% to Rs 285 after its net profit rose 89.1% to Rs 68.76 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 21% to Rs 896.07 crore. The diversified engineering company made the announcement after market hours yesterday, 26 July 2007.

India's third largest power generator and distributor in terms of revenue Tata Power Company dropped 0.86% to Rs 700 even as it reported a 56.09% rise in net profit in Q1 June 2007 to Rs 190.20 crore over Q1 June 2006. Sales rose 9.80% to Rs 1,511.48 crore.

Wholesale price-based inflation rate increased to 4.41% in the week ended 14 July 2007 from 4.27% in the previous week mainly on higher prices of fruits and vegetables, ragi, wheat, jowar, condiments and spices. The inflation numbers are still within the 5% annual target of the Reserve Bank of India, which is set to review the monetary policy on 31 July 2007. The annual rate of inflation was 4.62% in the corresponding week last year.

Meanwhile, a development that could increase domestic liquidity is the approval given by the Cabinet Committee on Economic Affairs on Thursday, 26 July 2007, to public sector companies enjoying Navratna and Miniratna status to invest up 30% of their surplus funds in equity mutual funds. The total surplus of central PSUs in 2005-06 was estimated at about Rs 2,39,500 crore, according to public enterprises survey. This means that about Rs 70,000 crore may flow to equity mutual funds. However, investments would be allowed only in public sector mutual funds.

A good rollover was witnessed to the August 2007 series from the July 2007 series when the July 2007 contracts expired on Thursday, 26 July 2007. According to one brokerage report, overall 83% positions have got rolled to August 2007 from July 2007. A good rollover of 73% was witnessed in index futures as well. Institutional investors rolled over short positions in Nifty following the hedging of their positions in the cash market.

Oil rose on Friday, 27 July 2007 holding firm above $75 a barrel as traders bet that fears of tight summer supplies would offset a fresh wave of risk aversion that struck US equities and dragged oil down a day ago. London Brent crude gained 41 cents to $75.59 a barrel. US crude rose 43 cents to $75.38

BEST SELL

RCOM (SELL) 571 (Target1) 565 ( Target 2) 559 (Sl) 581

GMR INFRA (SELL) 922 (Target1) 914 ( Target 2) 905 (Sl) 934

INDIABULLS (SELL) 626 (Target1) 618 ( Target 2) 613 (Sl) 638

The market remained above 4555 and as per my expectations, it closed above 4575. The F & O rollover was a whopping 78% and the market recovered in the late trade and the turnover touched record high of over 1 lakh crore. Since the global market is weak today and due to the inflation worries, the market may see yet another sluggish trade today. Dont be panic, if the market remains above 4555.

Today, market will open flat or negative with mixed bias attached with high volatility and remain long above 4604 with SL 4588 for a tgt of 4640-4658. If it breaks and sustain below 4590 keep short with SL 4608 for tgt 4580-4550. Be careful with the positions... Dont go long for the time being..wait for the clear market direction to emerge.. trade wisely...happy investing

AMID VOLATILITY MARKET ENDS IN GREEN

The market posted modest gains amid high volatility today, 26 July 2007, the day the July 2007 derivatives contracts expired. It was firm in the first half of the day following healthy rollover of derivative positions from the July 2007 series to the August 2007 series. But it weakend in mid-afternoon trade on profit booking, before bouncing back again in late trade.

Shares from auto, pharma and IT sectors were in demand, while cement, banking and capital goods stocks edged lower. Sugar stocks spiked at the fag end of the trading session. Global markets were subdued.

Meanwhile, the International Monetary Fund (IMF) on Wednesday, 25 July 2007, revised upwards its growth projections for the global economy, citing accelerating growth in China, India and Russia, while the United States appears to be regaining momentum. The IMF's updated World Economic Outlook forecast global growth of 5.2% for both calendar year 2007 and 2008, up from its earlier forecast of 4.9% growth for both years.

The BSE 30-share Sensex was up 56.63 points to 15,755.95, as per provisional trade. It opened higher at 15,768.28 and jumped to a high of 15,812.27. The index also slipped to a low of 15,654.40 at 13:01 IST

The S&P CNX Nifty was up 24.25 points to 4,612.95, as per provisional trade.

The market breadth, indicating the overall health of the market, held firm as small- and mid-cap stocks saw continued buying interest. On BSE, 1,558 shares advanced as compared to 1,100 that declined, while 73 remained unchanged

The total turnover on BSE amounted to Rs 5,719 crore as compared to Rs 4,276 crore by 14:30 IST

Among the 30-Sensex pack, 18 gained and the rest declined

India’s largest drug manufacturer by sales Ranbaxy Laboratories jumped 9.95% to Rs 375 on 19.34 lakh shares. It was the top gainer from the Sensex pack. The stock rose after Ranbaxy today, 26 July 2007, reached an agreement with GlaxoSmithKline (GSK) to end their litigation in the US on Valtrex (valacyclovir hydrochloride tablets) used in the treatment of herpes.

Other pharma stocks Cipla (up 4.16% to Rs 193.90) and Dr Reddy’s Laboratories (up 0.29% to Rs 667.40) also edged higher.

Auto stocks advanced on fresh buying interest in anticipation that sales will pick up after monsoon, generally a slack season. Bajaj Auto (up 1% to Rs 2378) and Mahindra & Mahindra (up 2.55% to Rs 802) advanced.

Maruti Udyog vaulted 3.38% to Rs 837 after India’s biggest small car maker today, 26 July 2007, reported a 35.1% growth to Rs 499.60 crore in net profit in Q1 June 2007 over Q1 June 2006. Net sales were up 26% at Rs 3,930.82 crore. Maruti Udyog will be renamed as Maruti Suzuki India.

IT pivotals rose on stock-specific buying despite the Indian rupee heading towards a nine-year high on Thursday, 26 July 2007, in anticipation of strong capital inflow.

India’s second largest software services exporter Infosys Technologies gained 1.81% to Rs 2,026 after it bagged a $250-million (around Rs 1,010 crore) contract from Royal Philips Electronics. It is one of the largest acquisition-cum-outsourcing deal by an Indian information technology firm.

TCS (up 3.13% to Rs 1185), Wipro (up 4.22% to Rs 520) and Satyam Computers (up 1.64% to Rs 494.90) gained in anticipation of further mergers and acquisitions activity in the IT sector. The BSE IT Index was up 1.41% to 4,976.13.

In early trade, the rupee was at 40.31/32 per dollar, strengthening from the previous close of 40.3500/3575 and inching towards from a nine-year high of 40.20 hit earlier this week.

Cement shares declined for the second straight day on fresh selling following reports that the goverment is easing cement import norms in an attempt to rein in prices. India’s second largest cement manufacturer ACC plunged 4.55% to Rs 1,021.80 on 3.82 lakh shares. It was the top loser from the Sensex pack.

Ambuja Cements (down 3% to Rs 124.50) and Shree Cement (down 2.86% to Rs 1,280) also slipped.

Cement scrips had fallen yesterday, Wednesday, 25 July 2007, following reports that the Monopolies and Restrictive Trade Practices Commission (MRTCP) had on Tuesday, 24 July 2007, ordered a probe into the business practices of 14 leading cement manufacturers.

The country’s biggest private sector company Reliance Industries (RIL) advanced 1.92% to Rs 1,940, after striking an all-time high of Rs 1,948. RIL's results are due on Saturday, 28 July 2007. The market expects surprise on the positive side.

Capital goods heavyweights Bhel (down 2.05% to Rs 1,753) and L&T (down 1.13% to Rs 2,544.50) declined on profit booking after a recent rally.

Top cellular services provider Bharti Airtel dropped 2.30% to Rs 925 on profit taking even as it reported robust Q1 June 2007 results. Bharti Airtel’s consolidated net profit as per US GAAP jumped 100% to Rs 1,511.60 crore in Q1 June 2007 over Q1 June 2006, exceeding market expectations. Revenue rose 53% to Rs 5,904.60 crore in Q1 June 2007 over Q1 June 2006. Revenue growth was within market expectation. The stock had hit an all-time high of Rs 960 in early trade.

Bank shares drifted lower on selling pressure. HDFC Bank (down 2.12% to Rs 1,215), State Bank of India (down 1.2% to Rs 1,549) and ICICI Bank (down 1.51% to Rs 945) slipped. With inflation under control, the Reserva Bank of India (RBI) is likely to keep rates steady when the monetary policy comes up for review on 31 July 2007. However, it remains to be seen whether the central bank will raise the cash reserve ratio (CRR) to suck out excess liquidity in the banking system.

India’s biggest cigarette maker ITC lost 0.21% to Rs 165.50. The stock had surged almost 9% on Wednesday, 25 July 2007, on market talks it may announce demerger of its agri business. ITC announces Q1 June 2007 results tomorrow, 27 July 2007.

Sugar stocks spurted at the fag end of the trading session. Shree Renuka Sugars (up 5.51% to Rs 635), Bajaj Hindustan (up 4.30% to Rs 160.20) and Balrampur Chini Mills (up 5.45% to Rs 70.65), galloped.

As per latest data, marketwide rollover from the July 2007 contracts to August 2007 contracts stood at 60%, while Nifty rollover was 61%.

The total open interest in NSE’s futures and option (F&O) segment vaulted to an all-time record of Rs 1,02,247.50 crore on 25 July 2007, from Rs 94,285.34 crore on the previous day.

Market remained under pressure from higher levels and it is still under pressure. If the market remains above the low made today (4555) which i feel is the rock support, the market may close tomorrow above 4575, depending upon the global cues.

Tomorrow, market will open flat or positive with mixed bias attached with high volatility and remain long above 4590 with SL 4575 for a tgt of 4620-4650. If it breaks and sustain below 4585 keep short with SL 4605 for tgt 4555-4525. Be careful with the positions... Dont go long for the time being..wait for the clear market direction to emerge.. trade wisely...happy investing

Buy Voltus with sl 142.4 Target 148.5---152.35

Buy NIITTECH with sl 528 target 551--563

BEST BUY

HCC (BUY) 141.5 (Target1) 144 ( Target 2) 146 (Sl) 136

ZEE TELE (BUY) 338 (Target1) 342 ( Target 2) 345 (Sl) 329

CINEMAX (BUY) 154 (Target1) 157 ( Target 2) 159 (Sl) 151

BEST BUY

BILT (BUY) 121.5 (Target1) 125 ( Target 2) 127 (Sl) 116

ALSTOM PROJECTS (BUY) 846 (Target1) 853 ( Target 2) 860 (Sl) 838

BEST SELL

DLF (SELL) 653 (Target1) 646 ( Target 2) 640 (Sl) 666

TV TODAY (SELL) 135.10 (Target1) 132 ( Target 2) 130 (Sl) 139

BEST BUY

ZEE ENT (BUY) 341.5 (Target1) 346 ( Target 2) 349 (Sl) 330.5

DLF (BUY) 675 (Target1) 681 ( Target 2) 685 (Sl) 663

INDIABULLS REAL (BUY) 582 (Target1) 588 ( Target 2) 593 (Sl) 573.2

BEST BUY

VOLTAS (BUY) 145 (Target1) 148 ( Target 2) 152 (Sl) 138

MRPL (BUY) 46 (Target1) 47.5 ( Target 2) 49 (Sl) 41

GMRINFRA (BUY) 877 (Target1) 885 ( Target 2) 891 (Sl) 856

Market seems to be overheated and the global cues are showing negative trends. So stay long with extra high caution as correction can set in any time. Most probably market will consolidate before any further upswing.

Tomorrow, market will open flat or negative with a gap down of 35-50 points and remain long above 4575 with SL 4560 for a tgt of 4595-4620. If it breaks and sustain below 4570 keep short with SL 4585 for tgt 4545-4525. Be careful with the positions... trade wisely...

BEST BUY

KIRLOSKAR BRO (BUY) 421.5 (Target1) 426 ( Target 2) 430 (Sl) 413

PUNJAB NATIONAL BANK (BUY) 582 (Target1) 587 ( Target 2) 593 (Sl) 571

NAGARJUNA FERT (BUY) 25 (Target1) 26 ( Target 2) 27.25 (Sl) 22

Eventhough my opening gap down prediction went wrong, the market behaved exactly as per my forecast and it kissed 4452.85 and returned back and touched 4510.80 and settled at 4499.55. It is a good sign that market closed above yesterday's close and the today's low is a very vital point to watch. The market is expected to consolidate and it may touch 4525 tomorrow. If the bulls manages to close it above this level, bears may have to wait longer for a correction.

Tomorrow, market will open flat or positive with mixed trends and remain long above 4490 with SL 4475 for a tgt of 4525-4542. If it breaks and sustain below 4485 keep short with SL 4502 for tgt 4467-4452. Be careful with the positions... trade safely..

BEST BUY

HEG (BUY) 234 (Target1) 238 ( Target 2) 241 (Sl) 223

GEMINI COM (BUY) 222.75 (Target1) 227 ( Target 2) 229 (Sl) 214

NAGARJUNA CONS (BUY) 197 (Target1) 201 ( Target 2) 203 (Sl) 191

BEST SELL

MPHASIS BFL (SELL) 280 (Target1) 276 ( Target 2) 273 (Sl) 289

3I INFO (SELL) 305 (Target1) 301 ( Target 2) 297 (Sl) 312

MOSER BAER (SELL) 490 (Target1) 486 ( Target 2) 483 (Sl) 501

BEST BUY

HANUNG TOYS (BUY) 141 (Target1) 144 ( Target 2) 147.4 (Sl) 136.70

CANARA BANK (BUY) 280.6 (Target1) 285 ( Target 2) 288 (Sl) 273

IDEA CELL (BUY) 120.75 (Target1) 123 ( Target 2) 125 (Sl) 117

Market Forecast for 16.07.07

The market as expected by me has touched 4500 and is now poised for 4550+ targets as the global market is also very enthusiastic. If the market stays is able to stay above 4490 and preferably above 4500, then we can see 4650 levels very soon...

On 16.07.07, market will open flat or positive and remain long above 4495 with SL 4480 for a tgt of 4530-4551. If it breaks and sustain below 4490 keep short with SL 4505 for tgt 4465-4450. Be careful with the positions and dont sell in panic. Trade wisely.... All traders, mint money.......

Buy REIAGRO with sl 208.50 target 217---221.80-----one can hold it for a target of 240 with in few sesson

buy UNITECH with sl 558 target 586---601

Buy REL with sl 658 target 684.5---700

BEST BUY

CINEMAX (BUY) 160 (Target1) 163.5 ( Target 2) 166 (Sl) 154

JET AIRWAYS (BUY) 799 (Target1) 805 ( Target 2) 812 (Sl) 784

REDINGTON (BUY) 273 (Target1) 277 ( Target 2) 279 (Sl) 264.5

MARKETS STRUCK ALL-TIME HIGHS

The market started on a strong note and gained strength with the progress of time, as buying momentum continued at higher levels. All the sectoral indices logged gains, with shares from auto, banking, real estate, capital goods and metal sector in forefront. However IT shares were subdued. Positive cues from global markets also supported the rally.
The 30-shares BSE Sensex surged 181.53 points to 15,092.15, as per provisional closing. This is an all time closing high for the Sensex. It opened higher at 14,963.53 tracking upbeat global markets and surged to an intra-day high of 15,112.22 by 15:15 IST, almost hitting an all time high of 15,114.95, which was hit on 10 July 2007. It oscillated in a range of 148 points. However, there was absence of volatility.
The S&P CNX Nifty struck an all-time high of 4,451.95. It was now trading with a gain of 65.65 points to 4,443.85, as per provisional closing. It also settled at all time closing high.
The market breath was strong on BSE with a little over 2 gainers for every loser: 1,820 shares advanced as compared to 894 that declined, while 61 remained unchanged.
The turnover on BSE vaulted in last hour of trade, as the market surged to Rs 6,080 crore as compared to Rs 4,641 crore at about 14:30 IST. Today’s high turnover indicates fresh buying momentum.
India's industrial production growth slowed for a second month in May 2007 as the highest interest rates in five years crimped demand and currency gains weakened exports. Output at factories, utilities and mines rose 11.1% from a year earlier, following a revised 12.4% increase in April 2007.
Manufacturing output rose 11.9% in May from a year earlier, the slowest pace in four months, while consumer goods output growth halved to 9.8%.
Among the Sensex stocks, 22 gained, while only five declined.
Aluminium and copper major Hindalco Industries galloped 6.94% to Rs 165.70 on high volumes of 55.31 lakh shares. it was the top gainer among Sensex stocks. The stock advanced on hopes of consolidation of global aluminum industry. It was boosted further by reports that Alcan Inc. was closer to arranging a friendly deal involving Rio Tinto as it fought a hostile $28.8-billion bid from Alcoa Inc.
Other metal shares, Tata Steel (up 2.35% to Rs 670.90), JSW Steel (up % to Rs ), Hindustan Zinc (up % to Rs ), Sterlite Industries (up % to Rs ), and Sail (up % to Rs ), edged higher.
Reliance Energy (REL) vaulted 6.50% to Rs 666.50 on its plans to invest Rs 60,000 crore to add 15,000 mega watts (MW) of power over the next five years. This will boost the company’s generation capacity almost 17 times from 941 MW now. The stock was also boosted by market rumors that promoters may hike their stake in REL by 5%, taking it around to 40%
Auto shares surged on renewed buying as fears of further interest rate hikes eased. Maruti Udyog (up 2.80% to Rs 828.40), Tata Motors (up 1.09% to Rs 740) and Mahindra & Mahindra (up 3.38% to Rs 807.25) gained.
Motorcycle maker Bajaj Auto advanced 3.30% to Rs 2,199 after the company said its profitability will increase in the second half of the fiscal year as it introduces new models to woo buyers deterred by higher borrowing costs.
The company reported during market hours today, 12 July 2007, a 21% decline in consolidated net profit at Rs 201.15 crore in the first quarter ended June 2007 when compared with Rs 255.77 crore in Q1 June 2006. Consolidated income from operations declined to Rs 2,206.43 crore, from Rs 2,294.28 crore.
Banks were in demand on a view that interest rates have peaked for the time being. State-run banking major State Bank of India advanced 0.76% to Rs 1,554, while private sector banks ICICI Bank (up 1.39% to Rs 967) and HDFC Bank (up 4.49% to Rs 1,202) also advanced.
Capital goods shares rallied on belief that these companies are expected to show robust growth in earning in the next couple of years on strong order book position. Stare-run engineering major Bhel surged 4.63% to Rs 1,649.50 after striking an all-time high of Rs 1,650.
Astra Microwave (up 14.27% to Rs 179.80), Bharat Bijlee (up 7.32% to Rs 2400), Alstom power (up 6.87% to Rs 880.50), Gammon India (up 4.29% to Rs 457), and Siemens India (up 3.68% to Rs 1459.90), also advanced from the capital goods space
IT pivotals underperformed in a strong market. Infosys (down 0.66% to Rs 1,917), and Satyam Computers (down 0.59% to Rs 478) and Wipro (down 0.02% to Rs 510.15) declined while while TCS rose 1.06% to Rs 1,159.
IT bellwether Infosys on Wednesday, 11 July 2007, cut its EPS and revenue guidance for FY 2008 in rupee terms following the rupee’s surge against the US dollar.
The Indian rupee fell 1% against the dollar on Thursday due to central bank intervention. At 12:52 IST, the partially convertible rupee was at 40.60/61 per dollar, after falling to the day's low of 40.75 from high of 40.33 earlier. The rupee hit a nine-year high of 40.28 per dollar in late May 2007.
GMR Infrastructure galloped 13.86% to Rs 954 on high volumes of 48.79 lakh shares. It also struck an all-time high of Rs 980 in intra-day trade on BSE. It was the top traded counter on BSE with turnover of Rs 458.54 crore.

Buy

Genusoverseas buy with sl 344 target 360---371

UTV soft buy with sl 536 target 553---562

Indiainfo buy with sl 735 target 764.6--781

BEST BUY

DLF (BUY) 592 (Target1) 598 ( Target 2) 601 (Sl) 581

SHREE RENUKA SUGARS (BUY) 645 (Target1) 651 ( Target 2) 654 (Sl) 633

NDTV (BUY) 436 (Target1) 440 ( Target 2) 443 (Sl) 429

BEST BUY

LANCO INFRA (BUY) 232 (Target1) 236 ( Target 2) 239 (Sl) 224

BEST SELL

RANBAXY (SELL) 359 (Target1) 355 ( Target 2) 351 (Sl) 367

STERLITE IND (SELL) 622 (Target1) 617 ( Target 2) 612 (Sl) 636

Profit booking and shorting at higher levels is seen yesterday ahead of the results of tech major infosys which will be declared today, in anticipation of a market crash. It is not safe to buy fresh longs now as the market is poised for a good correction at any moment. Also dont short blindly in the breakout scrips.

Today, market will open flat or positive and remain long above 4410 with SL 4395 for a tgt of 4430-4451. If it breaks and sustain below 4408 keep short with SL 4427 for tgt 43982-4365. Be careful with the positions and dont sell in panic. Trade wisely....

PROFIT TAKING MAY EMERGE IN THE SECOND HALF OF THE TRADING SESSION

The market may consolidate in the second half as some profit booking may emerge at the all-time high level. The BSE 30-share Sensex gained 81.61 points, or 0.55%, to 15,045.73, a lifetime closing high, on Monday 9 July 2007. It struck a record high of 15,085.22 in intra-day trades on that day.

As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 841.64 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 236.85 crore on Monday, 9 July 2007.

The Q1 June 2007 result of Infosys on Wednesday, 11 July 2007, will dictate the near-term trend on the bourses.

Asian indices were trading mixed today, 10 July 2007, with Japan's Nikkei 225 declining on banking stocks such as Mitsubishi UFJ Financial Group, while South Korea's Kospi and Singapore's Straits Times Index touched intra-day record highs. Nikkei slipped 0.22% to 18,221.36, while Taiwan's Taiwan Weighted slipped 0.10% to 9,360.68.

However, Hong Kong's Hang Seng (up 0.26% at 22,876.17), Singapore's Straits Times (up 0.30% or at 3,637.60) and South Korea's Seoul Composite (up 0.13% at 1,885.99) edged higher.

Wall Street edged higher in an erratic session on Monday, 10 July 2007, as investors were reassured by a drop in treasury bond yields. The Dow Jones industrials rose 38.29 points, or 0.28%, to 13,649.97. Broader market indexes also moved higher. The Standard & Poor's 500 index rose 1.41 points, or 0.09%, to 1,531.85, and the Nasdaq Composite index added 3.51 points, or 0.13%, to 2,670.02.

Brent crude oil eased on Tuesday, 10 July 2007 after a seven-day rally lifted prices to their highest in 11 months. London Brent crude fell 31 cents to $75.47 a barrel. US crude inched down 7 cents to $72.12 a barrel.

Investors shown fresh buying in some heavy weights and the market is now poised to touch 4450+ levels in a day or two. The major worry is that the volume in the market is drying up and any wrong news will affect the market badly. Every one has to be extra cautious in the market..Today, market will open flat or positive and remain long above 4413 with SL 4400 for a tgt of 4435-4451. If it breaks and sustain below 4408 keep short with SL 4427 for tgt 4390-4375. Be careful with the positions and dont sell in panic. It's better to trade intraday and mint money...

SENSEX CLOSES ABOVE 15000

The market settled with decent gains, as buying continued throughout the day’s trading session. Both the benchmark indices Sensex and S&P CNX Nifty struck record highs. Shares from capital goods, banking and IT sectors were in demand, while FMCG shares declined.

The BSE 30-share Sensex was rose 70.55 points to 15,034.67, as per provisional closing. It opened higher at 15,018.71 and surged to strike a record high of 15,085.22 at 14:47 IST, on buying interest tracking firm Asian and US bourses. The Sensex had slipped to a low of 15,005.47, at 10:34 IST.

It oscillated a mere 85 points throughout the day’s trading session, indicating the absence of volatility on the bourses.

The S&P CNX Nifty was up 34.55 points to 4419.40, as per provisional closing. It struck an all time high of 4,427.55 in intra-day trade.

The market breadth was strong on BSE, with 1,622 shares advancing as compared to 1047 that declined, while 75 remained unchanged.

The total turnover on BSE amounted to Rs 4,551 crore as compared to Rs 3,497 crore by 14:30 IST.

Among the Sensex pack, 20 gained, while the remaining declined.

Reliance Energy was the top gainer among the Sensex constituents. It advanced 2.52% to Rs 613, on 3.44 lakh shares. As per reports, a consortium led by Reliance Energy (REL) has emerged as the successful bidder for the Rs 6,400 crore business district project proposed in Hyderabad by the state-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The project is expected to be completed in five years. Reliance Energy will hold 66% equity in the project while its joint venture partner, Sobha Developers, will hold 23% stake. The remaining 11% equity will be held by APIIC towards the land component of the project.

Capital goods shares were in demand. State-run engineering major Bhel gained 1.40% to Rs 1,577.70, after striking an all time high of Rs 1594. Engineering and construction major Larsen and Toubro (L&T) advanced 2.26% to Rs 2417.90, after striking an all-time high of Rs 2,425. Both Bhel and L&T firms are sitting on robust order books that provide a strong visibility of revenue growth.

L&T is planning to take three more companies, operating in infratech, infotech and finance, to the primary market as part of its efforts to reorganise the corporate structure. As per reports, the infratech arm will be the first to tap the market in the next 12 to 18 months, while the other two companies will take about three years to hit the market.

Banking shares surged on rumours that the Reserve Bank of India may cut cash reserve ratio (CRR). State Bank of India (up 1.48% to Rs 1573.10), Union Bank of India (up 12.13% to Rs 145.60), HDFC Bank (up 1.55% to Rs 1171.25), Bank of India (up 3.58% to Rs 230.25) and Punjab National Bank (up 3.79% to Rs 544.10), edged higher.

IT stocks were in demand on renewed buying interest ahead of Q1 June 2007 results. A rally in their ADRs on Friday, 6 July 2007, aided gains in IT shares. Infosys Technologies (up 1% to Rs 1,990.90), Wipro (up 0.88% to Rs 524), and TCS (up 1.46% to Rs 1,176) advanced. Infosys declares its Q1 June 2007 results on Wednesday, 11 July 2007. Infosys ADR surged 4.8% to $52.59 and Wipro ADR gained 5% to $16.08 on Friday, 6 July 2007.

Meanwhile, the rupee climbed towards a nine-year peak on Monday, 9 July 2007, as traders built positions in the local unit in anticipation of strong foreign investment flows and on positive cues global equities. In early trade, the partially convertible rupee was at 40.39/40 per dollar, strengthening from Friday's (6 July 2007) 40.46/47, and moving towards a nine-year high of 40.28, hit in late May 2007.

Index heavyweight Reliance Industries was lacklustre today. It closed 0.03% lower at Rs 1,710.80, on 3.46 lakh shares. It moved in a range of Rs 1701.10 –1719.

FMCG major Hindustan Unilever lost 3% to Rs 194, on 9.58 lakh shares, and was the top loser from Sensex pack. The stock slipped on profit booking. IT also slipped 0.32% to Rs 155.

ICICI Bank continued to see selling pressure for the second straight day. It lost 1.23% to Rs 969.50, on 14.99 lakh shares. The 5.81-crore shares of ICICI Bank offered in its follow-on public offer (FPO) completed last month were listed on the bourses on Friday, 6 July 2007. The company had priced its FPO at Rs 940 per share. Retail investors were offered the shares at a discount of Rs 50, i.e., at Rs 890 per share. The issue was subscribed 11.5 times, with qualified institutional buyers bidding 21.6 times. It was open from 19 June 2007 to 22 June 2007.

The stock declined after it cut home loans rates under Rs 20 lakh for new customers by 50 basis points (100 bps is equal to 1%).

Cipla (down 0.65% to Rs 210.75), Maruti Udyog (down 0.61% to Rs 791), and Grasim (down 0.61% to Rs 2760), were the other losers.

Mahindra & Mahindra (M&M) dropped 0.30% to Rs 785 and Hero Honda Motors shed 1.55% to Rs 687. The former replaced the latter in BSE Sensex from today.

Roman Tarmat was hovering at Rs 319.85, a premium of 82.77% over the IPO price of Rs 175. The scrip debuted at Rs 295, and had touched a high of Rs 376.25 and a low of Rs 295 during the day. On BSE, 81.89 lakh shares of the scrip had changed hands. Roman Tarmat is a Mumbai-based infrastructure company constructing highways, runways and other civil work.

Buy Kesoramind Above 484 Rs( It Sould Stand Above That For 20 Min)... Target 492.. 500 Within 2 Days

Buy Lloydeeng Above 181 Target 186.. 195

Buy Murudcera Above 92.30 Rs Target 95 ... 100 Sl 88

Hanung Toys & Fabrics is being cornered by knowledgeable persons. Its EPS of Rs.11 is likely to go up to Rs.17 plus in FY08 and further to Rs.30 in FY09 on the back of massive expansion of Rs.172 cr. first target is Rs.230

Market men bet on sensex touching 15500

Infosys may shock the analysts with its results , No impact on rupee appreciation

Southern Online is being corned by HNIs , keep watch on the stock

Market touched life high with the help of tech stocks and market is currently inching towards 15400 /4450.. keep watching for wrong sentiments or bad news. till then, the bulls are in control of the situation..

Tommorrow, market will open flat or positive and remain long above 4377 with SL 4360 for a tgt of 4420-4435. If it breaks and sustain below 4369 keep short with SL 4385 for tgt 4320-4280. Be careful with the positions and dont sell in panic. Traders, trade intraday and mint money... keep smiling always

Everonn Systems India Ltd will enter the capital market with its initial public offer on July 5. The Chennai-based company plans to raise Rs 50 crore via 100% book building process, the price band for which is Rs 125-140 per share. The issue closes on July 11.

Everonn Systems is a fully integrated knowledge management, education and training company that offers services like creating globally relevant educational training content, designing and executing learning initiatives.

The company intends to use the proceeds of the issue for capital expenditure in its two strategic business units--institutional education & IT infrastructure services, and virtual & technical enabled learning solutions.

It will also utilise the proceeds for mergers & acquisitions, invest in the proposed subsidiary to retail educational aids, tools and other products.

The company has entered into an agreement with Hughes Communication India Ltd, earlier called Hughes Escorts Communication Ltd, as lead partner to help it in developing business for remote education and training through satellite broad band technologies.

India China Pre IPO Equity (Mauritius) Ltd., a fund management company, invested Rs 14.06 crore in Everonn last year by subscribing to 13,27,059 equity shares of Rs 10 each at a premium of Rs 96 per share.

The book running lead manager to the issue is Centrum Capital Limited and registrar to the issue is Cameo Corporate Services Limited.

Alpa Laboratories Limited has emerged as a leading force on the global healthcare horizon. The company manufactures and markets a wide range of products under its own brand and to a number of pharmaceutical companies of national & international repute.The Alpa product range includes ethical drugs, over the counter drugs (OTC) and veterinary products in various formulations.
Issue Price: 62-68
IPO Opens:12-07
IPO Closes:17-07

Buy
CANDC sl243 ter 262---272.90
Dr Reddy with sl 664 tr 677--681

Sell Pateleng with sl 443 ter 429--420

BEST BUY

IVRCL (BUY) 389 (Target1) 394 ( Target 2) 399 (Sl) 381

JP HYDRO (BUY) 37 (Target1) 38 ( Target 2) 39 (Sl) 35

POWER FINANCE (BUY) 162 (Target1) 165 ( Target 2) 166 (Sl) 155.6

Listing day of Mega IPO DLF made the markets highly volatile and it corrected heavily. But later, the bulls regained their lost ground and covered almost all losses. I still beleive that the market is in a rangebound stage and selling at lower level seems to be expensive for retail investors.. dont get panic is the mantra for the time being.

Today, market will open flat or positive and remain long above 4350 with SL 4335 for a tgt of 4385-4399. If it breaks and sustain below 4345 keep short with SL 4360 for tgt 4312-4302. Be careful with the positions and dont sell in panic. Traders, trade intraday and mint money... keep smiling

FIVE DAY RALLY ENDS

The market settled with nominal losses, after swinging sharply during the day. It staged a strong intra-day rebound. The market opened on a strong note tracking firm global equities, but immediately slipped sharply into the red after striking an all-time high. It later recovering on value buying and on short covering. Auto and capital goods shares were in demand, while IT pivotals were offloaded. Realty major DFL ended at 8.5% premium over IPO price.

The BSE 30-share Sensex settled with a decline of 18.35 points, or 0.12%, to 14,861.89. The barometer index had opened higher at 14,932.53 and surged to strike a record high of 14,963.26 at 09:58 IST as buying momentum intensified. But it had faltered later to touch a low of 14,731.22 by 11:35 IST --- a fall of 149.02 points for the day. The Sensex subsequently made a strong intra-day rebound.

The Sensex oscillated 242 points in the day in volatile trade.

The barometer index had gained 449 points, or 3.11%, in five trading sessions to 14,880.24 on Wednesday, 4 July 2007, from its close of 14,431.06 on 27 June 2007.

The S&P CNX Nifty lost 5.35 points, or 0.12%, today, 5 July 2007, to end at 4,353.95. The Nifty July 2007 futures contracts were quoting at 4,355, a marginal premium of 1.05 points to the spot closing

The BSE Mid-Cap Index settled, or 0.60%, lower to 6,605.85; and the BSE Small-Cap Index lost 0.80% to 7,796.02

Real-estate major DLF settled at Rs 570.05, a premium of 8.57% over the IPO price of Rs 525 per share. The scrip debuted at Rs 582, and touched a high of Rs 714.25 and a low of Rs 505.60 during the day on BSE. The counter saw high volumes of 3.42 crore shares on BSE.

The DLF IPO was subscribed 3.47 times. The IPO received total bids for 60.70 crore shares compared to issue size of 17.50 crore shares. Post-issue promoter holding in the company is 88.24%. The post-issue FII holding was 5.92%.

The market breadth remained weak on BSE: 1,656 shares declined as compared to 997 shares that advanced, while 71 remained unchanged. The breadth turned negative from positive in mid-morning trade.

The total turnover on BSE amounted to Rs 4,583 crore as against Rs 5624 crore on Wednesday, 4 July 2007. The NSE F&O turnover was Rs 41,247.62 crore as compared to Rs 34,125.16 on Wednesday, 4 July 2007.

Among the Sensex pack, 18 declined while the rest advanced.

Private sector banking major ICICI Bank rose 1.80% to Rs 1,003, on 11.77 lakh shares, after striking an all-time high of Rs 1,009.90 in intra-day trade. The stock rose for the second day in a row following reports that the department of industrial policy and promotion has approved ICICI Bank's plan to sell a 24% stake in ICICI Financial Services. ICICI Bank had recently said that its plant to sell stake in ICICI Financial Services to foreign investors was unlikely to get go ahead from the Foreign Investment Promotion Board (FIPB). It was the top gainer from the Sensex pack

Other banking stocks, UTI Bank (up 1.97% to Rs 630), Indian Bank (up 6.88% to Rs 140.50), Union Bank (up 0.40% to Rs 130.15), rose. The BSE Bankex was up 0.4% at 7,427.55.

Engineering and construction major L&T advanced 1.46% to Rs 2,325, on 3.26 lakh shares after striking an all-time high of Rs 2364. L&T will float five new companies to ensure better corporate governance as well as attracting talent. The companies will operate in L&T’s new business areas of power projects, boilers, turbines, water and shipbuilding.

State-run engineering major Bhel rose 1.28% to Rs 1564.95. The BSE Capital Goods Index was up 0.37% at 12,618.94.

Auto stocks extended recent gains on hopes that interest rates may soften. The BSE Auto Index gained 0.92% to 4,881.94, and was the top gainer among the sectoral indices on BSE. Car major Maruti Udyog advanced 1.74% to Rs 805, as buying continued after it recorded a 24% rise in sales in June 2007 on demand for its Swift hatchback and the new SX4 sedan. Maruti sold 59,917 cars, vans and sport-utility vehicles in India and overseas last month compared with 48,425 a year earlier.

Tata Motors rose 1.48% to Rs 708. The country's biggest truck and bus maker recorded 2% decline in sales in June 2007 as demand for commercial vehicles and cars fell. Tata Motors sold 44,317 commercial and passenger vehicles in India and overseas in June 2007.

Hero Honda Motors added 0.42% to Rs 688.50. TVS Motors Company jumped 3.39% to Rs 62.60. TVS Motors’ sales in June 2007 declined 15.2% to 1,07,117 units compared to 1,26,290 units in June 2006.

Index heavyweight Reliance Industries (RIL) recovered from a low of Rs 1,680.50, to settle at Rs 1710, on 5.90 lakh shares. The stock lost 0.33% for the day. The Committee of Secretaries (CoS), which met on 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007. No decision was taken in the meeting even as the petroleum ministry pitched for a market-determined price of gas produced from NELP blocks.

Reliance Energy was the top loser from the Sensex pack. It shed 3.25% to Rs 591.50, on volumes of 9.10 lakh shares. The stock slipped on profit booking.

Ranbaxy (down 2.28% to Rs 359.30), HDFC (down 1.93% to Rs 1941.50) and Hindlaco (down 1.25% to Rs 154.65) were the other losers

IT stocks remained subdued, with the BSE IT Index declining the most among the sectoral indices on BSE, by 1.03% at 4,791.99. Infosys Technologies (down 1.11% to Rs 1911.50), TCS (down 0.73% to Rs 1109.10), Satyam Computers (down 1.52% to Rs 464), and Wipro (down 0.95% to Rs 504.10) edged lower.

The rupee remained stable at 40.45/46 on Thursday, 5 July 2007, against the US currency on the back of suspected intervention by the Reserve Bank. On Wednesday, 4 July 2007, the rupee had closed at fresh nine-year closing peak of 40.45/46 a dollar

NTPC lost 1.51% to Rs 153 after large block deal of 39.19 lakh shares was executed in the counter on BSE at Rs 157.25 per share in opening trade.

Cement shares made a good intra-day rebound though many of them ended in the red. ACC (down 0.03% to Rs 1022.25), Ambuja Cements (down 1.12% to Rs 128.50), UltraTech Cement Company (down 4.37% to Rs 899) and India Cements (down 0.70% to Rs 213.60) edged lower while Grasim rose 0.34% to Rs 2749. Cement shares had surged recently on reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India effective from Wednesday, 4 July 2007.

Shares of construction firms and property developers were hammered today on profit booking after the recent surge. Era Construction (down 5.48% to Rs 428), Ansal Infrastructures (down 5.19% to Rs 294.10), Unitech (down 5.64% to Rs 522.10), Madhucon Projects (down 4.66% to Rs 228.90), Parsvnath Developers (down 4.61% to Rs 360.90), and Sobha Developers (down 4.46% to Rs 901.80) all edged lower.

Asian Electronics was locked at the 5% upper limit of Rs 953.40 after posting a 146% rise in net profit Q4 March 2007 to Rs 31.55 crore as against Rs 12.83 crore in Q4 March 2006. Sales surged 162.15% to Rs 150.21 crore in Q4 March 2007 (Rs 57.30 crore). Net profit spurted 164.93% to Rs 66.63 crore in the year ended March 2007 as against Rs 25.15 crore in FY 2006. Sales rose 134.72% to Rs 367.45 crore in FY 2007 (Rs 156.55 crore). The company’s board also approved a 2-for-1 stock-split.

BEST BUY

INDIABULLS REAL (BUY) 457.4 (Target1) 463 ( Target 2) 469 (Sl) 445

INDIA CEMENTS (BUY) 217.75 (Target1) 221 ( Target 2) 224 (Sl) 206

POWER FINANCE (BUY) 160 (Target1) 163 ( Target 2) 165(Sl) 155.6

The bulls and bears had their fight all day long and at the end of the day, the bulls won the battle for the day. Now the bulls will fight for a close above 4385+ to take the market to new highs above 4500+. The markets will consolidate in the coming days due to profit booking at higher levels and rising inflation.

Today, market will open flat or positive and remain long above 4362 with SL 4345 for a tgt of 4385-4399. If it breaks and sustain below 4354 keep short with SL 4370 for tgt 4335-4312. Be careful with the positions. it's not safe to take fresh longs at higher levels now.

NEW HIGHS FOR NIFTY & SENSEX

The market edged higher for the fifth straight trading session today, 4 July 2007, on firm global markets, steady progress of monsoon, and on lower inflation. Shares from the metal, cement and sugar sectors saw buying, while IT pivotals were offloaded.

The BSE 30-share Sensex rose 73.73 points or 0.50% at 14,880.24, an all time closing high. The barometer index opened higher at 14,848.16 and surged to strike a record high of 14,906.93 at 10:01 IST as buying intensified. But it came off the higher level to touch a low of 14,790.75 by 10:56 IST, a fall of 15.76 points for the day. It recovered later in volatile trade. The Sensex oscillated in a range of 116 points for the day.

The S&P CNX Nifty settled 1.75 points or 0.04% higher at 4,359.30, an all time closing peak. It hit an all-time high of 4,386.45 in intra-day trade. The index touched a low of 4,342.

The Nifty July 2007 futures settled at 4,356, a slight discount of 3.30 points as compared to spot closing.

Sensex has gained 449 points or 3.11% in 5 trading sessions at current 14,880.24, from its close of 14,431.06 on 27 June 2007. The barometer index is now just 119.76 points points away from the psychologically important 15000 mark.

The market breadth, which was strong in the opening session on BSE, turned negative by mid-morning trade: 1,445 shares declined as compared to 1,219 that advanced, while 68 remained unchanged.

The total turnover on BSE amounted to Rs 4742 crore, as against Rs 4948 crore on Tuesday, 3 July 2007. The NSE F&O turnover was at Rs 34,125.16 crore as compared to Rs 33917.80 crore on Tuesday, 3 July 2007.

The BSE Mid-Cap index was down 0.05% to 6,645.65, after striking an all-time high of 6,686.14. The BSE Small-Cap index also hit an all-time high of 7,895.65. It settled with gain of 0.12% to 7,855.66

Among the Sensex pack, 18 advanced while the rest declined.

Cement stocks surged ollowing reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India effective today. Cement major ACC surged 7% to Rs 1004, on 14.40 lakh shares, after striking an intra-day high of Rs 1047. It was the top gainer from the Sensex pack.

Ambuja Cements (up 4.50% to Rs 130), Grasim (up 1.45% to Rs 2742), UltraTech Cement Company (up 4.72 % to Rs 926), and India Cements (up 3.51% to Rs 215) were the other gainers from the cement sector.

The ongoing monsoon season, generally considered as slack season for cement companies, failed to dampen monthly sales of cement companies. ACC's cement dispatches stood at 1.70 million tonnes in June 2007, up 9.67% from 1.55 million tonnes in June 2006. It produced 1.70 million tonnes of cement compared to 1.53 tonnes last year, a rise of 11%.

Private sector banking major ICICI Bank rose 2.46% to Rs 989.95 following reports that the department of industrial policy and promotion has approved ICICI Bank's plan to sell a 24% stake in ICICI Financial Services. ICICI Bank had recently said that its plant to sell stake in ICICI Financial Services to foreign investors was unlikely to get go ahead from the Foreign Investment Promotion Board (FIPB).

Metal stocks gained on fresh buying. The BSE Metal Index rose 1.17% to 10,785.05, and was the top gainer among the sectoral indices on BSE. Tata Steel (up 2.74% to Rs 617.15), Sail (up 1.50% to Rs 132), and JSW Steel (up 3.23% to Rs 639.95) edged higher. JSW Steel registered a growth of 26% in crude steel production in Q1 June 2007.

Index heavyweight Reliance Industries (RIL) advanced from a low of Rs 1,705, to strike a high of Rs 1,731. It settled 0.43% higher to Rs 1,712.80, on 6.19 lakh shares. The Committee of Secretaries (CoS), which met on 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007. No decision was taken in the meeting even as the petroleum ministry pitched for a market-determined price of gas produced from NELP blocks.

Shares from the auto pack edged higher on hopes that interest rates may soften. Around 50-75% of the sales of auto companies are derived from loans given by banks and financial institutions. The BSE Auto Index rose 0.71% to 4,837.65.

Tata Motors (up 1.17% to Rs 696), Maruti Udyog (up 0.75% to Rs 790) and Bajaj Auto (up 0.80% to Rs 2115) edged higher from the auto pack.

Oil exploration major ONGC was the top loser from the Sensex pack. The stock was down 1.79% to Rs 872 on volume of 1.93 lakh shares

IT pivotals slipped as the rupee hovered near one-month high at 40.55/56 against the US currency in late morning deals on Wednesday, 4 July 2007. Wipro (down 1.30% to Rs 508.50), Infosys (down 0.62% to Rs 1935), and TCS (down 0.95% to Rs 1117.10) edged lower from the IT pack. The BSE IT Index declined 0.77% at 4,841.64

Vishal Retail settled at Rs 752.20, a huge premium of 178.51% over the IPO price of Rs 270. The scrip touched a high of Rs 809 and low of Rs 423.25. It debuted at Rs 472.50. On BSE, 1.14 crore shares were traded in the counter.

Indus Fila (up 13.51% to Rs 210.50), Madhucon Projects (up 13% to Rs 244), Nahar Spinning (up 10% to Rs 93), Ceat (up 8% to Rs 171.90), and Arvind Mills (up 6.99% to Rs 48.20) surged from the small-cap and mid-cap segments.

Shares from the sugar sector were in demand on recent reports that the goverment may announce sops for the sugar sector. Bajaj Hindusthan (up 2.26% to Rs 167.50), Sakthi Sugars (up 1.65% to Rs 86.15), Balrampur Chini Mills (up 2.63% to Rs 75.90) and Shree Renuka Sugars (up 1.19% to Rs 648) advanced.

Bharat Earth Movers (BEML) galloped 6.11% to Rs 1,240 following strong response to its follow-on public issue that closed on Tuesday, 3 July 2007. The FPO of BEML was subscribed 30 times, on the back of a whopping 63.33 times subscription in the qualified institutional buyers (QIB) segment.

Jyoti Structures jumped 3.88% to Rs 196.95 after 5 lakh shares changed hands in the counter in a block deal on BSE at Rs 190 each, in opening trade. The company’s equity capital is Rs 16.14 crore, with 8.07 crore outstanding shares of a face value of Rs 2 each.

Dabur Pharma lost 1.64% to Rs 75.10 after 50 lakh shares (constituting 3.19% of company’s equity), changed hands in a single block deal at Rs 76 each on NSE. The company’s equity capital is Rs 15.67 crore, with 15.97 crore outstanding shares of a face value of Rs 1 each.

IFCI slumped 4.93% to Rs 59.80 after the National Stock Exchange (NSE) banned building fresh positions in the derivatives contracts in IFCI as 95% of market wide limit had reached in the stock. Trading in IFCI derivatives contracts will only be allowed to reduce positions

Similarly, Nagarjuna Fertilizers & Chemicals slipped 2.74% to Rs 23 after the NSE banned building fresh positions in the derivatives contracts in the stock as 95% of market wide limit had reached in the stock.

Ansal Properties & Infrastructure declined 4% to Rs 310.20 after it signed an agreement with Fortis Healthcare for setting up medicity in Uttar Pradesh. The project is likely to be completed in about seven years. It will have an 800-bed ultra-modern hospital comprising medical, dental and nursing colleges along with other facilities for paramedical and technical training.

Ess Dee Aluminium rose 0.65% to Rs 484.60 after its board today, 4 July 2007, approved raising up to $150 million and increasing foreign institutional investment limit to 49%.

With the bellwether Sensex just within sniffing distance of its life-time high, mood for the week ahead is bullish. The market may extend last week’s gains following the smooth rollover of positions from the June 2007 series to the July 2007 series in the derivatives segment, and the build-up of fresh positions.

The steady progress of monsoon and falling inflation numbers are expected to continue to provide cheer to market participants. While the BSE Sensex is just about 73 points away from its all-time high of 14724 (struck on February 9, 2007), the S&P CNX Nifty is 45 points away from its all-time high of 4363, struck on June 4, 2007. IT bellwether, Infosys Technologies, is all set to kick off the earnings season on July 11, 2007.

“The indices have closed near the intra-day high of the session and surpassed the 4300 levels with a positive market breadth and above average volumes,” says Vijay L Bhambwani, CEO, BSPLindia.com. “Both indicate optimism, and the closing is the highest-ever. That shows a prevalence of bulls over bears and the outlook ahead being positive,” he says.

He feels that the coming session is likely to witness intra-day levels of 4349 on advances and 4293 on declines. “Watch the 4293 level on Monday, should this level not be violated, the strength will gain momentum,” he says.

The beast of inflation has been tamed, with the figures out on last Friday, the lowest since the end of April 2006. This should partly ease concerns on the interest rate front. In the US too, Americans spent less than forecast in May and the Federal Reserve’s preferred inflation gauge cooled, signs that a consumer slowdown is restraining price pressures.

Last week the action was mainly in the small-cap and mid-cap segments, with the BSE Midcap index hitting an all-time high. BSE Capital Goods index, BSE’s banking sector index Bankex and BSE Consumer Durables index also scaled all-time peaks.

While the Sensex gained only 1.2% over the past week, BSE Midcap index and BSE Smallcap index gained 2.4% and 2.9%, respectively. This trend of mid-caps outperforming the large-caps is expected to continue.

However, the only concern could be on the oil price front. Crude oil prices ruled above $70 per barrel mark in New York on Friday, closing at a 10-month high. Oil prices climbed above $70 for the first time since August 2006 after an energy department report showed that US gasoline supplies fell last week as refinery operations rose.

Buy Bharti tele @ 860. Target- 875/80. SL- 845.

Buy Dr Reddy if trades & sustain above 670. Target -677/85. SL- 664.

Buy Reliance Commn above 531.Target 540/45.SL-524.

Buy Reliance industries if trades above 1712. Target- 1735/50. SL - 1690.

Buy VSNL around 492. Target- 497/507. SL- 486

Buy Sterlite Optical @ 252/53 Target- 258/62/65. SL - 248

BEST BUY

STERLITE OPTICAL (BUY) 259(Target1) 264 ( Target 2) 270 (Sl) 252

UNITECH (BUY) 542.5 (Target1) 550 ( Target 2) 556 (Sl) 524

CINEMAX (BUY) 162 (Target1) 166 ( Target 2) 169 (Sl) 157

Reliance Equity Advantage Fund

Scheme Objective:-The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio predominately of equity & equity related instruments with investments generally in S & P CNX Nifty stocks and the secondary objective is to generate consistent returns by investing in debt and money market securities.

NFO Open From:- 12 /June/07
NFO Closes On :- 10/July/07

Fund Manager :- Ashwani Kumar/Shailesh Raj Bhan

Fund Class:- Equity Diversified
Fund Type :- Open Ended

Asset Allocation/Investment pattern
Under normal circumstances, the anticipated asset allocation would be

Instrument Indicative asset allocation Risk Profile
Equity and Equity related Securities 70% to 100% Medium to High
Debt and Money market securities
(including investments in securitised debt*) 0% to 30% Low to Medium

*Including up to 25% of the corpus in Securitised Debt. An overall limit of 100% of the portfolio value (i.e. net assets including cash) has been introduced for the purpose of equity derivatives in the scheme, however the same is the notional value and it will be seen that, the notional value of the net exposure to derivatives will not exceed the fund corpus at any point of time. Notional value shall mean value of Futures or notional value of the Options.

Options Available :
Retail Plan
Institutional Plan
Each of the above Plans will have Growth & Dividend Plans respectively as specified below

Growth Plan : Growth Option & Bonus Option
Dividend Plan : Dividend Payout Option & Dividend Reinvestment Option

Benchmark Index : S&P CNX Nifty

Application Amount :

Retail Plan - Rs. 5000 per plan per option and in multiples of Re. 1 thereafter
Institutional Plan - Rs. 5 crore per plan per option and in multiples of Re. 1 thereafter

Additional Purchase Amount
Retail Plan - Rs. 1000 per plan per option and in the multiples of Re. 1thereafter
Institutional Plan - Rs. 100,000 per plan per option and in the multiples of Re. 1 thereafter
Load Structure (During the New Fund Offer and continuous offer including SIP)

Entry Load

Plans Entry Load
Retail Plan 2.25%
Institutional Plan Nil

Exit Load

Retail Plan

1% if redeemed/switched on or before completion of 6 months from the date of allotment
0.5% if redeemed/switched between 6 months & before completion of 1 year from the date of allotment
Nil if redeemed/switched after completion of 1 year from the date of allotment.
Institutional Plan : Nil

SIP/Trigger/ STP/ SWP/ DTP/Switch/ Nomination : Available

Please read the offer document carefully before investing.
Mutual Funds investment refers to Market Risk.

SENSEX EYEYING 15000

The market settled at a new high, after staying strong throughout the day on continued buying interest. It rose for the fourth straight trading session today.

The market opened strong, tracking firm global equities. The sentiment was lifted by data on 29 June 2007 showing fall in inflation to a 14-month low. Banking, telecom, FMCG, and construction stocks led today's surge. All the sectoral indices on BSE settled with gains, except BSE Consumer Durables index.

The BSE 30-share Sensex gained 142.25 points,or 0.97%,to 14,806.51, an all-time closing high. The barometer index opened higher at 14,720 (also its low for the day) and surged to strike a record high of 14,828.39 at 15:06 IST as buying momentum intensified. It oscillated in a range of 108.39 points in the day.

The S&P CNX Nifty rose 43.80 points, or 1.02%, at 4,357.55, an all-time closing peak. It opened higher at 4,315.05 and surged to an all-time high of 4,363.35 in late-afternoon trade, surpassing its previous all-time high of 4,362.95 struck on 4 June 2007.

The Nifty July 2007 futures settled at 4354, a slight discount of 3.55 points compared to spot closing.

The market breadth was positive on BSE with 1,444 shares advancing as compared to 1,223 shares that declined, while 64 remained unchanged.

The total turnover on BSE amounted to Rs 4,893 crore as against Rs 4,327.39 crore on Monday, 2 July 2007. NSE F&O turnover was Rs 33917.8 crore, as against Rs 34061.14 crore on Monday, 2 July 2007.

The BSE Mid-Cap Index settled 0.87% higher at 6,649, after striking an all-time high of 6,655.34, while the BSE Small-Cap Index rose 0.81% to 7,846.13

Among the Sensex pack, 20 advanced while the rest declined.

Telecom pivotals advanced on fresh buying, in anticipation that these companies would announce robust subscriber additions for the month of June 2007. Bharti Airtel surged 3.31% to Rs 865.05, on 3.77 lakh shares. It was the top gainer from the Sensex pack. Reliance Communications gained 1.30% to Rs 537.10.

FMCG major Hindustan Unilever surged 2.91% to Rs 194.55, on 3.53 lakh shares. It was the top gainer from the Sensex pack. Other shares from the FMCG pack also edged higher on renewed buying. Britannia (up 1.48% to Rs 1598.25), ITC (up 1.49% to Rs 156.30), Tata Tea (up 0.80% to Rs 865), and Colgate Palmolive India (up 2.76% to Rs 382.30) advanced. The BSE FMCG Index rose 1.3% to 1,848.36. With inflation coming down to 4.03% levels, from a little over 6% in February 2007, the sector is expected to see higher sales.

BSE’s banking sectoral index Bankex surged the most among the sectoral indices on BSE. It rose 150.22 points, or 1.88%, to 8,140.70 on hopes that interest rates may soften due to lower inflation. The Bankex hit an all-time high of 8,176.33. Lower interest rate would lead to higher demand of funds from consumers.

State Bank of India (SBI), the country's largest commercial bank, advanced 3.03% to Rs 1,577.25. The scrip hit a high of Rs 1,590.95, which is a lifetime high for the counter. Nearly 10.01 lakh shares changed hands on the counter on BSE.

As per reports, SBI would soon enter seven new business streams including pension funds to tap emerging opportunities. The bank will float a subsidiary to manage pension funds under the New Pension Scheme (NPS) for government employees. The bank also proposes to launch financial planning and advisory services given the growing affluent class. This would be upgraded to wealth management at a later stage. In addition to the life insurance business, the bank, with its large branch network, is looking into the general insurance business.

Other banks ICICI Bank (up 1.50% to Rs 965), HDFC Bank (up 0.52% to Rs 1152), Bank of India (up 0.26% to Rs 228.20), UTI Bank (up 2.29% to Rs 621) edged higher. ICICI Bank, State Bank of India and HDFC bank have weightages of 40.36%, 17.12% and 13.83%, respectively, in the Bankex.

Index heavyweight Reliance Industries (RIL) was up 1.26% to Rs 1,705.80 on 6.69 lakh shares. The Committee of Secretaries (CoS), which met on Monday 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007. No decision was taken in the meeting even as the petroleum ministry pitched for a market-determined price of gas produced from NELP blocks.

Engineering & construction major Larsen and Toubro (L&T) advanced 0.95% to Rs 2,256.20, on reports it had formed separate companies for power projects and shipbuilding businesses. The stock struck an all- time high of Rs 2,297.30 in intra-day trade today. The company may also unlock value in power and shipbuilding businesses after five years. Meanwhile, L&T expects Rs 1,000-crore revenue per annum from railway modernisation in three years.

State-run engineering major Bhel also rose 1.12% to Rs 1,550.20. The BSE Capital Goods Index was up 0.9% at 12,536.91.

Reliance Energy (REL) slipped 2.04% to Rs 611.55, on 2.05 lakh shares, and it was the top loser from the Sensex pack. REL’s wholly owned subsidiary Rosa Power Supply, on 26 June 2007, tied up long-term loans of around Rs 2,000 crore for the first stage of its 600 meg watt (MW) power project.

Auto stocks saw mixed trend today. The BSE Auto Index moved 0.40% higher to 4,803.31. Bajaj Auto declined 1.89% to Rs 2,089. Bajaj Auto's sales dipped 12% in June 2007 over June 2006. The announcement was made by the company on Sunday, 1 July 2007.

Hero Honda Motors declined 0.98% to Rs 684 after it reported an 8.4% decline in sales to 2.55 lakh units in June 2007. The announcement was made by the company after trading hours on Monday, 2 July 2007

Car major Maruti Udyog advanced 1.33% to Rs 781.50. Maruti said during trading hours on Monday, 2 July 2007, it had sold 59,917 vehicles in June 2007, up 24% from 48,425 vehicles sold in June 2006. Maruti Udyog sold 56,000 units in the domestic market, up 25.5% from 44,626 units in June 2006.

Tata Motors rose 0.59% to Rs 688.85 despite reporting a 2% fall in vehicle sales to 44,317 units in June 2007.

Housing finance major HDFC recovered sharply from its low of Rs 1968, but it still ended 0.53% lower at Rs 2,020.

ONGC slipped 1.11% to Rs 886.15 as it sharply cut gas reserve estimates at one of its blocks in the Krishna Godavari Basin. Reportedly, ONGC has sharply cut gas reserve estimates at one of its blocks in the Krishna Godavari Basin. The block is estimated to have 2.38 trillion cubic feet (TCF) of in-place gas reserves, much lower than its earlier estimate of 21 TCF.

IT stocks stayed subdued on lack of buying interest. They have not participated in the recent market rally on concerns of rupee appreciating further. A rise in rupee impacts margins of IT companies, as they derive a lion's share of revenue from exports.

Wipro (down 0.44% to Rs 511.10), Infosys (down 0.15% to Rs 1940.50), and TCS (down 0.85% to 1124.90) edged lower. Infosys Technologies will announce its first quarter June 2007 results on 11 July 2007. The rupee on Tuesday, 3 July 2007, touched its highest level in nearly one month at 40.56/57.

Akruti Nirman (up 20% to Rs 402.20), Berger Paints (up 15.85% to Rs 55.55), Nicco Corporation (up 9.90% to Rs 31.10), Indus Fila (up 13.65% to Rs 191.60), Paramount Communications (up 14.25% to Rs 38.45), and Swaraj Engines (up 11.47% to Rs 205.05) surged from the small-cap and mid-cap segments.

Shares from construction firms and property developers rallied in the belief that interest rates are near their peaks. Also there was momentum buying ahead of listing of realty major DLF, which debuts on the bourses on Thursday, 5 July 2007. The company had priced its IPO at Rs 525 per share. At Rs 525 per share, the IPO was priced 159 times its year ended March 2007 EPS of Rs 3.30. Each DLF share has a face value of Rs 2.

Ansal Infrastructures (up 12.28% to Rs 321), Unitech (up 3.44% to Rs 538.25), Madhucon Projects (up 5.47% to Rs 217), Parsvnath Developers (up 9.56% to Rs 381), and Sobha Developers (up 3.95% to Rs 968) edged higher. Indiabulls Real Estate jumped 2.90% to Rs 429 on 36.39 lakh shares.

Subhash Projects & Marketing hit the 5% upper circuit of Rs 260.05 on bagging an order worth Rs 267 crore from PHED, Jodhpur, Rajasthan for work related to supply of water from Jawai & Hemawas Dams (Pali district) to Pali town.

Textile firm Himatsingka Seide rose 3.01% to Rs 121.50 on acquiring an 80% stake in US-based Divatex Home Fashions Inc for $53 million. The enterprise value of the transaction is $75 million, it said. Divatex is among the top three distributors of bed linen products in the US. Divatex reported revenue of $151 million in the year ended December 2006 with earnings before interest, tax, depreciation and amortization (EBITDA) of $14 million

Valecha Engineering jumped 7.85% to Rs 272 on its announcement that it will consider issue of bonus shares. The company's current equity is Rs 7.95 crore, with each share of a face value of Rs 10. The book value is Rs 203.80 per share

Patni Computer Systems rose 0.10% to Rs 514.65 on acquiring Europe-based Logan-Orviss International, a leading independent specialist telecommunications consulting services company. LOI ended with revenue of euro 11.8 million in 2006.

The next major trigger for the market is Q1 June 2007 result of IT bellwether Infosys on Wednesday, 11 July 2007. A Q1 results preview by Citigroup states that downward revision in EPS guidance for FY 2008 (year ending 31 March 2008) by Infosys cannot be ruled out given a surge in the rupee against the dollar in Q1 June 2007. Citigroup, however, expects an upward revision in revenue guidance in dollar terms from the IT bellwether.

BEST BUY

INDIABULLS REAL EST (BUY) 421(Target1) 426 ( Target 2) 432 TARGET ACHIEVED.

AIR DECCAN (BUY) 140.6 (Target1) 144 ( Target 2) 147 (Sl) 136

SOBHA DEV (BUY) 928 (Target1) 937 ( Target 2) 943 (Sl) 905 TARGET ACHIEVED

Stock ...................... Buy ......... Target1 . ........Target2 ........ Stop loss
Sagar Cement ....... 129 ............. 145 ............. ....154 ............... 122
IVRCL Infra .......350-355 ....... 370 .................. 382 . .............333 TARGET ACHIEVED

Market again witnessed selling at higher levels and for the time being, the market will be in a rangebound mode and a fresh upward rally may resume after a short break. The bulls are having their final say now and the bears may try to break the rule today.. so be extra cautious in the market.

Today, market will open flat or negative attached with volatility and mixed bias and remain long above 4322 with SL 4301 for a tgt of 4342-4352. If it breaks and sustain below 4315 keep short with SL 4330 for tgt 4298-4278. Be careful with the positions. it's not safe to take fresh longs at higher levels now. Traders, trade intraday and mint money............

Franklin ranklin India High Growth Companies Fund
NFO Period: May 31st, 2007 till June 29th, 2007.
Investment Objective: An open-end diversified equity fund that seeks
to achieve capital appreciation through investments in Indian companies/
sectors with high growth rates or potential.
Structure: Open Ended Equity Scheme with high growth focus
Asset Allocation Pattern
Instrument % Of Net Assets
Equity and Equity Related Securities 70 - 100
Debt & Money Market Securities/Instruments/Funds 0 - 30
Benchmark Index: S&P CNX 500
Entry Load: Application Amount less than Rs 5 Crores: 2.25%,
Application Amount of Rs 5 Crores & above: Nil
Exit Load: Application Amount less than Rs. 5 Crores - 0.50% for
redemption within 6 months of allotment. Application Amount of Rs.
5 Crores and above - 1% for redemption within 1 year of allotment)
Minimum Investment: Rs.5000 and in multiples of Re.1
Fund Manager: K.N. Sivasubramanian & Anand Radhakrishnan
Plans & Options: The Scheme offers Growth option and Dividend
option. The Dividend option offers Dividend Payout and Dividend
Reinvestment facilities.
Cheque Favoring: Franklin India High Growth Companies Fund
Highlights: An open ended equity oriented scheme with an objective
to invest predominantly in a diversified portfolio constituting equity
and equity related instruments. The investment style of the fund
manager will be a combination of 'growth' & Blend of top-down and
bottom-up approach of investing.
Reliance Equity Advantage Fund
NFO Period: June 12th, 2007 till July 10th, 2007
Investment Objective: The primary investment objective of the scheme
is to seek to generate capital appreciation & provide long-term growth
opportunities by investing in a portfolio predominantly of equity &
equity related instruments with investments generally in S&P CNX Nifty
stocks. The secondary objective is to generate consistent returns by
investing in debt and money market securities.
Structure: An open-ended diversified equity scheme
Asset Allocation Pattern
Instrument % Of Net Assets
Equity and Equity Related Securities 70 - 100
Debt and Money market securities
(including investments in securitised debt) 0 - 30
Benchmark Index: S&P CNX Nifty
Entry Load: 2.25% for Retail Plan & Nil for Institutional Plan.
Exit Load: Retail Plan: 1% if redeemed/switched on or before 6 months,
0.50% if redeemed/switched between 6 months & before completion
of 1 year, Nil if redeemed/switched after completion of 1 year from
the date of allotment. Institutional Plan: Nil
Minimum Investment: Rs.5,000/- per application, plus in multiples of
Re.1 thereof for Retail Plan & Rs.5 crores per application, plus in
multiples of Re.1 thereof for Institutional Plan.
Fund Manager: Ashwani Kumar
Plans & Options: The Scheme offers Growth option and Dividend
option. The Dividend option offers Dividend Payout and Dividend
Reinvestment facilities.
Cheque Favoring: Reliance Equity Advantage Fund

PERFORMANCE AS ON 31st MAY 2007
Information Risk Adjusted Returns
Scheme Name Launch AUM Expense Minimum Standard Sharpe
Date (Rs. in Cr.) Ratio Invest. (Rs.) Deviation
DEBT - LIQUID
TATA Liquidity Management Fund - G 1-Mar-06 168.35 0.29 10,000 0.00 1.26
DSP ML Liquidity Fund - Regular Plan - G 9-Mar-98 1,114.54 0.45 25,000 0.00 0.60
Reliance Liquidity Fund - G 16-Jun-05 10,031.22 0.40 50,000,000 0.00 0.90
HDFC Cash Mgmt Fund - Savings Plan - G 19-Nov-99 3,976.71* 0.36 100,000 0.00 1.13
Sundaram BNP Paribas Money Fund - G 6-Mar-00 1,690.25 0.60 10,000 0.00 0.66
ICICI Prudential Liquid Plan - G 19-Jun-98 19,620.51 0.90 15,000 0.00 0.75
DEBT - LONG TERM
PRINCIPAL Income Fund - G 25-Oct-00 310.73 1.50 5,000 0.05 0.01
SBI Magnum Income - G 5-Nov-98 70.42 1.51 2,000 0.06 -0.16
DEBT - SHORT TERM
Reliance Short Term Fund - G 17-Dec-02 238.43 0.64 50,000 0.01 0.52
ICICI Prudential STP - G 19-Oct-01 242.14 1.10 5,000 0.01 0.24
DEBT - FLOATERS
HDFC F R I F - STF - G 8-Jan-03 681.55* 0.24 100,000 0.00 1.15
Reliance FRF - G 27-Aug-04 1,379.31 0.55 25,000 0.01 0.76
DSP ML Floating Rate Fund - Regular Plan - G 12-May-03 268.21 0.74 25,000 0.06 -0.06
Templeton Floating Rate Income Fund ST - G 2-Feb-02 790.30* 0.75 5,000 0.00 0.63
MIP (MORE THAN 20%)
ICICI Pru. Income Multiplier Fund - Cum. 27-Feb-04 464.00 2.00 5,000 0.31 0.07
HDFC MIP - LTP - G 8-Dec-03 1,138.92* 1.77 5,000 0.31 0.09
MIP (LESS THAN 20%)
ICICI Prudential MIP - Cumulative 14-Oct-00 581.85 1.94 5,000 0.20 0.05
Reliance MIP - G 29-Dec-03 424.49 1.94 10,000 0.24 0.01

Results for the quarter ended March’07 were in line with our expectations. Net sales increased by 35.1% to Rs 4910.2 million. EBIDTA for the quarter increased by 49.2% to Rs 608.1 million while EBITDA margins increased YoY by 120 bps to 12.4% majorly on account of change in project mix on a YoY basis. Cost of construction as a percentage of sales declined by 330 bps to 79.3%. However, general & administrative expenses increased by 81.3% to Rs 408.6 million which as a percentage of net sales increased YoY by 210 bps to 8.3%. Other income declined by 30.6% to Rs 23.1 million.
Interest cost for the quarter declined by 9.7% to Rs 92.8 million due to repayment of debt from the IPO proceeds. Depreciation cost was up by 41.3% to Rs 108.1 million. Tax incidence (current+ deffered) increased YoY by 14.7% to Rs 39.7 million, which as a percentage of PBT increased by 300 bps to 13%. This resulted in 53% increase in Profit after tax to Rs 358.2million.

FY07 records healthy growth

FY07 results were in line with our estimation. Net sales for FY07 increased by 30.2% to Rs 13309.7 million while EBITDA margins increased by 60 bps to 13.5%. Interest cost for the period is down by 26% to Rs 193.2 million on account of repayment of debt to the tune of Rs 792.8 million from the IPO proceeds. Depreciation increased by 21.4% to Rs 378 million on increased capex during the period. Tax provisions increased by 119.8% to Rs 144.7 million. PAT for the full year period increased by 51.2% to Rs 1108.7 million.

Order book

The order book of the company as on 31st Mar’07 stands at Rs 50 billion (3.8xFY07 Revenues). Average ticket order size of the company is Rs 2-2.2 bn with an average execution period of about 4 years.The order book of the company grew in excess of Rs 2000 crores (higher than revenues). The company further expects a growth of 40% to 60% in its order book for the next 2 years. The company expects a higher contribution from hydro power projects thereby improving its margins. Going forward, Patel Engineering is moving into Independent Power Producer (IPP) & real estate sectors.

Foray into Independent Power Production

Patel Engineering Ltd. Has entered into an MOU with the Government of Gujarat for 1200 MW Thermal Power Project at Bhavnagar involving a total investment of Rs 50 bn. The project is to be implemented in 3 phases of 400 MW each (400MWx3). The company proposes to take up a strategic partner for Electro Mechanical Works. PEL expects to funds its own equity contribution through internal accruals.

The details of the Project are as follows:

The company is also looking for IPP projects in the Hydro Power segment. Patel Engineering’s foray into IPP’s would result in its going up the value chain thereby increasing the shareholders’ value in the long term.

A wholly owned subsidiary to be formed for Real Estate Business

• The company plans to form wholly owned subsidiary Patel Realities India Ltd. (PRIL) for its real estate ventures.

• The company has a total land bank of 507 acres spread across Mumbai (92 acres), Bangalore (32 acres), Chennai (29 acres) & Hyderabad (354 acres) which it plans to monitise. This would result in significant increase in shareholders’ value. The land bank has been acquired since the 1950’s &
thus the cost of land acquisition is insignificant. At the current market prices we have estimated the land bank at Rs 151 per share.

• The company plans to develop commercial complex, residential complex, IT parks, Corporate Offices, Malls etc. The first phase of development would cover Mumbai (750000 sq.ft of commercial development) & Bangalore (3-5 mn sq ft for development of IT Park & residential complex). First phase is expected to commence in FY08 & revenues there from are expected in FY09-FY10. The second phase would cover Hyderabad & Chennai.

• The company does not intend to raise funds for its real estate subsidiary going forward which according to us is positive for the stock.

Tax at MAT Rate

PEL has continued to provide tax rate at the MAT levels as it claims to be a developer & has filed litigation for the reversal of the order. Total Outflow from FY2000-FY2007 would entail to Rs 270 million. However, taking a conservative estimate we have provided for a cash outflow of Rs 270 million in FY08 & also provided for taxation levels at 33% for future years.

Business Outlook

Increased thrust on infrastructure development especially on transportation, irrigation, water projects and power with Patel Engineering’s impressive track record of executing hydro and irrigation projects gives it a competitive advantage. Further, the company plans to increase the share of hydro projects in its order book and also enter the power generation space and real estate business. We estimate a 28% CAGR increase in net revenues between FY07-09E to Rs 21755.3 million and an increase in EBITDA margins by 50 bps in FY08 & FY09 to 14%. We estimate a PAT of Rs 1224.7 million in FY08E & Rs 1536.4 million in FY09E translating into an EPS of Rs 20.5 & Rs 25.7 respectively.

Valuation

At the current price of Rs 406, the stock quotes at P/E of 20x FY08E and 16xFY09E. We believe the stock to be a good long-term investment in the construction space. We value the business of the company on Sum of the parts method. Looking at the robust business model of the company and good growth prospects in the construction sector we have our target price to Rs. 513 on SOTP method. At current market price of Rs. 406 the PEL stock is trading at a PE multiple of 20x & 16x on FY08E & FY09E earnings. We recommend a BUY with an increased target price at Rs. 513

MARKET ENDS WITH MARGINAL GAINS

The market which was firm till mid-afternoon trade, pared gains towards the later part of the trading session as some selling emerged at higher level. Sensex, in fact, slipped into the red at one point of time in late trade, before settling with small gains. The market rose for the third straight day today. Auto, capital goods, and healthcare shares saw buying interest, while cement and IT shares witnessed selling.

Asian markets which were subdued earlier during the day, recovered later.

The BSE 30-share Sensex rose 13.75 points to 14,664.25, an all time closing high. The barometer index opened higher at 14,685.16 and surged to strike a record high of 14,745.75 at 11:23 IST. It slipped to a low of 14,638.88 at 15:12 IST. It oscillated in a range of 108 points for the day.

Prior to this, the Sensex had struck a record high of 14,723.88 on 9 February 2007.

The Sensex had surged 146 points on Friday, 29 June 2007, boosted by latest data showing fall in inflation to a 14-month low.

The S&P CNX Nifty ended the day marginally in the red, declining 4.55 points to 4,313.75. The Nifty July futures settled at 4302.30, a discount of 11.45 points as compared to spot closing.

The total turnover on BSE amounted to Rs 4,303 crore compared to Friday (29 June 2007)'s Rs 4,855.07 crore. Turnover on NSE's futures & options (F&O) segment stood at Rs 34061.14 crore compared with Friday (29 June 2007)'s Rs 35,463.65 crore.

The market breadth was strong on BSE with 1,490 shares advancing as compared to 1,163 shares that declined. 64 remained unchanged.

The BSE Small-Cap Index rose 0.68% to 7,783.26. It struck an all time high of 7,819.30. The BSE Midcap Index gained 0.99% to 6,591.35. It scaled an all time high of 6,615.65. 6,615.65

Among the Sensex pack, 17 advanced while the rest declined.

Car major Maruti Udyog surged 4.29% to Rs 774.40, on 2.26 lakh shares, after it said on Monday, 2 July 2007, it had sold 59,917 vehicles in June 2007, up 24% from 48,425 vehicles sold in June 2006. Maruti Udyog sold 56,000 units in the domestic market, up 25.5% from 44,626 units in June 2006. It exported 3,917 units in June, up 3% from 3,799 units last year.

Tata Motors (up 2.20% to Rs 684.50), Hero Honda Motors (up 0.05% to Rs 689.20), Mahindra and Mahindra (up 1.82% to Rs 736) rose from the auto pack. The BSE Auto Index settled 0.99% higher at 4,791.06.

Bajaj Auto rose 0.10% to Rs 2,131. The company said on Sunday, 1 July 2007, said its sales in June 2007 fell 12% to 1,87,624 units, from 2,13,918 units in June 2006. The company said it will launch a new motorbike in September 2007, with an initial sales target of 50,000 units a month by January 2008.

Pharma shares advanced on renewed buying. Ranbaxy Laboratories (up 3.10% to Rs 365.95), Cipla (up 0.74% to Rs 210) and Dr Reddy’s (up 0.74% to Rs 660.80), edged higher. The BSE Healthcare Index was up 1.15% at 3,849.59. It was the top gainer among the sectoral indices on BSE

Shares from the capital goods space advanced on fresh buying. L&T (up 2.23% to Rs 2,245), Punj Lloyd (up 8.47% to Rs 278.65), Areva T&D (up 5.25% to Rs 1589) and Crompton Greaves (up 4.56% to Rs 264.75) advanced. However, Bhel slipped 0.41% to Rs 1,532 after striking an intra-day high of Rs 1582.70. L&T firmed up on reports that the government may select the engineering and construction firm as an additional supplier of equipment for power projects. The BSE Capital Goods index struck an all-time high of 12,586.12. It finished 1.06% higher to 12,429.15.

Cement stocks saw profit booking after two straight days of rally. Ambuja Cements shed 1.97% to Rs 122.10, on 5.54 lakh shares. It was the top loser from the Sensex pack. Grasim slipped 0.57% to Rs 2,622.90.

However, ACC gained 0.14% to Rs 935.10 after it reported 9.67% growth in cement despatches to 1.70 million tonnes in June 2007 from 1.55 million tonnes in June 2006.

IT stocks saw some unwinding as the Indian rupee opened at its highest level in over three weeks on Monday, 2 July 2007. Wipro (down 1.25% to Rs 512), Satyam Computers (down 0.21% to Rs 466), and TCS (down 1.07% to Rs 1136.90), edged lower.

However, Infosys Technologies was up 0.57% to Rs 1940.10, buoyed by rumors that the Indian IT major is mulling a bid to buy Europe’s largest IT services giant, Capgemini. Both Infosys Technologies and Capgemini have denied the takeover rumours which had first hit the market after trading hours on Thursday, 28 June 2007. Infosys Technologies will announce its first quarter June 2007 results on 11 July 2007. The BSE IT Index lost 0.07% to 4,867.27.

The Indian was at 40.645/655 per dollar in early trade, slightly off its opening of 40.60, its strongest start since 6 June 2007. The rupee rose as traders built positions in the local unit on positive cues from high-yielding Asian currencies, and expectations of foreign investment flows.

Index heavyweight Reliance Industries slipped 0.83% to Rs 1,686.20, on 6.07 lakh shares. It had hit a high of Rs 1709.80.

Reliance Energy (REL) gained 1.94% to Rs 626. REL’s wholly owned subsidiary Rosa Power Supply, on 26 June 2007, tied up long-term loans of around Rs 2,000 crore for the first stage of its 600 meg watt (MW) power project.

Hindalco Industries slipped 0.81% to Rs 158.85 on entering into a joint venture agreement with Mahanadi Coal (MCL), a subsidiary of Coal India, and with Neyveli Lignite Corporation (NLC) for coal mining. The joint venture company (JV) is expected to be formed in the next 3-6 months and the company will have 15% shareholding, with MCL holding 70% and NLC holding 15%.

Other metal stocks, Tata Steel (down 0.61% to Rs 593.55) and Sail (down 2.24% to Rs 128.30), also slipped. The BSE Metal index was down 0.42% to 10,560.32, and was the top loser among the sectoral indices on BSE.

IFCI galloped 7.87% to Rs 60.30 on high volume of 2.03 crore shares, after scheduling a board meet on 6 July 2007 to consider inviting bids for inducting a strategic investor in the firm. The company made the announcement after market hours on Friday, 29 June 2007. IFCI said it would also take on record its audited financial results for the quarter ended June 2007 on the same day.

Welspun Gujarat Stahl Rohren surged 7.19% to Rs 237.85 on announcing plan to build a manufacturing facility in the US.

Corporation Bank rose 1.79% to Rs 330.20 after it sold 0.26% stake in NSE for $6.625 million to Citigroup Strategic Holdings Mauritius. The company made the announcement during trading hours today, 2 July 2007.

Pratibha Industries rose 5% to Rs 242.60 on securing two contracts from Indore Municipal Corporation for two water supply schemes. The total value of the contracts is Rs 97.78 crore. The project is to be executed in 12 to 18 months.

Kernex Microsystems India was locked at the 5% lower limit at Rs 244.90 on BSE even as its board of directors approved issue of one bonus share for every 10 shares held in the company after trading hours on Friday 29 June 2007. The company's net profit rose 58.2% to Rs 0.87 crore in Q4 March 2007 as against Rs 0.55 crore in Q4 March 2006. Sales declined 50.4% to Rs 5.42 crore in Q4 March 2007 compared to Rs 10.93 crore in Q4 March 2006.

Spentex Industries rose 4.83% to Rs 40.15 on acquiring Schoeller Litvinov k.s. in Czech Republic. The company made this announcement before market hours on Monday, 2 July 2007. The acquisition of Schoeller was made for $25 million. The transaction will enhance the topline of the company by about euro 55 million and add another euro 6 million per year in cash flows.

GMR Infrastructure rose 2.29% to Rs 765 after the company said its board approved splitting each share of face value Rs 10 each into five shares of Rs 2 each. The company made the announcement on Saturday, 30 June 2007. GMR reported net profit of Rs 12.37 crore upon sales of Rs 22.75 crore in Q4 March 2007. Net profit plunged 91.89% to Rs 2.88 crore in the year ended March 2007 as against Rs 35.55 crore in FY 2006. Net sales declined 41.9% to Rs 33.39 crore in FY 2007 (Rs 57.44 crore).

Gujarat Alkalies & Chemicals jumped 6% to Rs 153 after signing an initial agreement with DowEurope GmbH for a long-term strategic business relationship for chlorinated organics.

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Finance News: India Business News

Tuesday, July 31, 2007

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GLOBAL FALL TIRGGERS CORRECTION

Thursday, July 26, 2007

AMID VOLATILITY MARKET ENDS IN GREEN

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PROFIT TAKING MAY EMERGE IN THE SECOND HALF OF THE TRADING SESSION

Tuesday, July 10, 2007

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SENSEX CLOSES ABOVE 15000

Sunday, July 8, 2007

Friday, July 6, 2007

FIVE DAY RALLY ENDS

Thursday, July 5, 2007

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NEW HIGHS FOR NIFTY & SENSEX

Tuesday, July 3, 2007

SENSEX EYEYING 15000

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MARKET ENDS WITH MARGINAL GAINS

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