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BEST BUY

BANK OF INDIA (BUY) 238.45 (Target1) 241 ( Target 2) 244 (Sl) 232

MOSER BAER (BUY) 306 (Target1) 309 ( Target 2) 313 (Sl) 299

INDIABULS REAL EST (BUY) 472 (Target1) 477 ( Target 2) 482 (Sl) 459

Gujarat Industries Power Co Ltd (GIPCL) is proposing to expand its lignite-fired power generating capacity with an investment of Rs 1300 crore by installing two units of 250 MW each.

The estimated investment covers the plants at Nani Naroli, a small village about 45 km from Surat in south Gujarat, and lignite mine expansion.

Company sources said the project would be financed by debt and internal accruals. While the debt portion would be around 70 per cent, about Rs 400 crore would come from internal accruals.

The Vadodara-based company already has two 125 MW units of lignite-fired power plants in Nani Naroli. Bharat Heavy Electricals Ltd (BHEL) is executing two more units, both of which are to be completed by 2008.

For the new expansion project, the company had invited technical bids for the EPC contractor. The last date for submission of the bids was Aug 16.

The additional units of 250 MW will use the eco-friendly circulating fluidised bed combustion (CFBC) steam generators technology. The company has the option to up the installed capacity by 20 percent taking advantage of the new facility.

GIPCL was promoted by Gujarat Urja Vikas Nigam Ltd (GUVNL - erstwhile Gujarat Electricity Board), Gujarat State Fertilizers and Chemicals Ltd (GSFC), Gujarat Alkalies and Chemicals Ltd (GACL) and Petrofils Cooperatives Ltd.

It commissioned its first power project, a 145 MW gas-based combined cycle power plant, in February 1992 at Vadodara. Power from this plant is distributed to its promoters in proportion to their original equity holding.

The company expanded its capacity and commissioned a 160 MW naphtha and gas-based combined cycle power plant here in November 1997 as independent power producer (IPP) with a power purchase agreement (PPA) with GUVNL. Later it commissioned the 250 MW lignite-based power plant

BEST BUY

GMR INFRA (BUY) 829 (Target1) 836 ( Target 2) 845 (Sl) 809

JUPIER BIO (BUY) 179 (Target1) 183 ( Target 2) 185 (Sl) 172

CINEMAX IND (BUY) 137 (Target1) 140 ( Target 2) 144 (Sl) 131

Ashok Leyland Ltd and Nissan Motor Co have formed a partnership to make light commercial vehicles, the two companies said on Wednesday.

The companies would form three ventures for vehicle manufacture, powertrain manufacture and technology development, they said in a joint statement.

The vehicle manufacturing venture will be majority-owned by Ashok Leyland and have an annual production capacity of more than 1,00,000 units in India, it said

Taking cues from the overseas markets, the Sensex opened with a huge negative gap of 268 points at 14,651 and dropped to a low of 14,592. However, fresh buying (mainly in Tata Steel) at lower levels saw the index recoup losses in early trades.

Buying spread to other counters as the day progressed, and the index rebounded by mid-noon trades. The index touched a high of 15,030 - up 438 points from the day's low. The Sensex finally ended with a gain of 74 points at 14,993.

The BSE Metal index surged over 4% to 11,204. The Oil & Gas index was up over 1% at 7937.

The market breadth was positive - out of 2,693 stocks traded, 1,533 advanced, 1,093 declined and 67 were unchanged today.

INDEX MOVERS...

Tata Steel soared 9% to Rs 660. ONGC surged 3% to Rs 834, and BHEL added 2.5% to Rs 1,851.

Hindalco and Reliance Energy rallied 2% each to Rs 157 and Rs 782, respectively. Tata Motors advanced 1.8% to Rs 675.

SBI and ACC gained 1.7% each at Rs 1,575 and Rs 1,044, respectively.

Larsen & Toubro, Ranbaxy and Grasim moved up around 1.5% each to Rs 2,588, Rs 372 and Rs 2,910, respectively. Bajaj Auto was up 1% at Rs 2,319.

Metal stocks witnessed huge buying today. SAIL surged 5% to Rs 161. Jindal Saw Pipes, Jindal Stainless, Jindal Steel, JSW Steel, National Aluminium, Sesa Goa, Sterlite and Shree Precoated were up 2-3% each.

...AND THE SHAKERS

Infosys shed 2.5% to Rs 1,834. NTPC dropped 1.3% to Rs 165.

HDFC and Satyam slipped around 1% each to Rs 1,957 and Rs 445, respectively.

MOST ACTIVE COUNTERS

Tata Steel topped the value chart with a turnover of Rs 212 crore followed by Reliance (Rs 175.70 crore), Everonn Systems (Rs 168 crore), ICICI Bank (Rs 134 crore) and Axis Bank (Rs 131.50 crore).

Ispat Industries led the volume chart with trades of around 3.64 crore shares followed by Tata Steel (3.25 crore), Nagarjuna Fertilisers (1.48 crore), UCO Bank (87.75 lakh) and IFCI (85.50 lakh).

DLF, the country's biggest realty firm, has bagged a deal to acquire
25 acres of land in Hyderabad from the state government for about Rs
450 crore.

The company is buying a 25-acre plot from the Andhra Pradesh
government at a rate of Rs 18.11 crore per acre, which means the total
cost is around Rs 452.75 crore. The land would be used for developing
IT premises, Rajeev Talwar, executive director, DLF told PTI here.

The deal comes days after the Delhi-based company agreed to buy 38
acre in the national capital for Rs 1,675 crore in the country's
biggest land deal.

BEST SELL

INDIABULLS REAL EST (SELL) 473 (Target1) 468 ( Target 2) 464 (Sl) 488

RCOM (SELL) 513 (Target1) 508 ( Target 2) 501 (Sl) 526

JSW STEEL (SELL) 604 (Target1) 599 ( Target 2) 592 (Sl) 614

BEST BUY

MOSER BAER (BUY) 285 (Target1) 289 ( Target 2) 293 (Sl) 276

CUMMINS (BUY) 366 (Target1) 370 ( Target 2) 375 (Sl) 357

REDINGTON (BUY) 263.5 (Target1) 268 ( Target 2) 271 (Sl) 258

BEST BUY

PRAJ IND (BUY) 177 (Target1) 179.9 ( Target 2) 183 (Sl) 173

IDEA CELL (BUY) 114 (Target1) 117 ( Target 2) 119 (Sl) 109

BANK OF INDIA (BUY) 224 (Target1) 227 ( Target 2) 231 (Sl) 219.8

BEST BUY

ORBIT CORP (BUY) 369 (Target1) 375 ( Target 2) 380 (Sl) 357

JUPITER BIO (BUY) 166 (Target1) 169 ( Target 2) 173 (Sl) 161

EVERONN (BUY) 512.1 (Target1) 519 ( Target 2) 525 (Sl) 502

[ 24.08.07] Market Forecast : Get the daily Market Review & Tips:

The political uncertainities made the market loose all its gains during the intraday. As the UPA givernment is stable till sept 14th, one must avoid going long and be positional in the trade.

Today, market may open flat or positive attached with high volatility and remain long only above 4145 with SL 4125 for a tgt of 4210-4310. If it remains below 4145 keep short with SL 4165 for tgt 4070-3995. dont short blindly. Play with the mood of the market and mint money will be the mantra for the day....

BEST BUY

JSW STEEL (BUY) 549 (Target1) 555 ( Target 2) 561 (Sl) 527

GMR INFRA (BUY) 729 (Target1) 736 ( Target 2) 743 (Sl) 707

EVERONN (BUY) 518 (Target1) 526 ( Target 2) 535 (Sl) 502

BEST SELL

VISHAL RETAIL (SELL) 615 (Target1) 609 ( Target 2) 603 (Sl) 633

EVERONN (SELL) 522 (Target1) 516 ( Target 2) 510 (Sl) 554

PFC (SELL) 173 (Target1) 170 ( Target 2) 168 (Sl) 177

BEST BUY

JSW STEEL (BUY) 581 (Target1) 587 ( Target 2) 591 (Sl) 572

RCOM (BUY) 510 (Target1) 516 ( Target 2) 521 (Sl) 502

DLF (BUY) 585 (Target1) 590 ( Target 2) 596 (Sl) 577

The indian markets again danced to the tune of global markets yesterday. As the dow has closed in green, the world markets are expected to trade in green only. But still, i am not convinced about the sustainability of this rally and i still advise all not to go long till the nifty closes above 4260+.

Today, market may open flat or positive attached with high volatility and remain long only above 4200 with SL 4185 for a tgt of 4280-4310. If it remains below 4195 keep short with SL 4215 for tgt 4120-3990. dont short blindly. Play with the mood of the market and mint money will be the mantra for the day.... Best wishes for a safe trading..

BEST BUY

IB REAL EST (BUY) 461 (Target1) 467 ( Target 2) 473 (Sl) 447

ORBIT CORP (BUY) 439.8 (Target1) 445 ( Target 2) 451 (Sl) 420

IDBI (BUY) 119 (Target1) 123 ( Target 2) 126 (Sl) 113

BEST BUY

MPHASIS (BUY) 284 (Target1) 288 ( Target 2) 292 (Sl) 277

EVERONN (BUY) 570 (Target1) 577 ( Target 2) 584 (Sl) 559

POLARIS (BUY) 115 (Target1) 118 ( Target 2) 121 (Sl) 112

Market as expected crashed in a brutal way yesterday. The dow closed in flat but in red today and the indian market is expected to rebound today. Bears will use every dead cat bounce to hammer the market again and the bulls will have to try hard to regain their lost glory...Use every rise to escape from the market.

Today, market may open flat or positive attached with high volatility and remain long only above 4225 with SL 4208 for a tgt of 4310-4360. If it remains below 4220 keep short with SL 4238 for tgt 4110-4050. dont short blindly. Play with the mood of the market and mint money will be the mantra for the day.... Best wishes for a safe trading..

BEST SELL

INDIABULLS (SELL) 531 (Target1) 526 ( Target 2) 521 (Sl) 544

TATA MOTORS (SELL) 684 (Target1) 678 ( Target 2) 673 (Sl) 695

MPHASIS BFL (SELL) 288 (Target1) 284 ( Target 2) 281 (Sl) 300

60 Years of Independence.....

HAPPY INDEPENDENCE DAY......

BEST BUY

SPICE COM (BUY) 55 (Target1) 56.7 ( Target 2) 58 (Sl) 52.5

EVERONN (BUY) 575 (Target1) 583 ( Target 2) 590 (Sl) 559

HCL TEC (BUY) 319 (Target1) 323.8 ( Target 2) 328 (Sl) 310

The indian market responded to the positive global cues and the Dow closed flat in red today and the indian markets to follow suit today. If the market closes above 4360 for two more days, the bulls will reign again provided the global cues are positive. Till then, think this rally due to a short receovery and exit all longs at every rise.

Today, market may open flat or positive attached with high volatility and remain long only above 4364 with SL 4348 for a tgt of 4405-4438. If it remains below 4360 keep short with SL 4375 for tgt 4335-4305. dont short blindly. Play with the mood of the market and mint money will be the mantra for the day.... Happy investing........

INDIABULLS reached a high of 563 zoomed nearly 4 % from our buy call

EVERONN is the stock of the day and it was up to 611 zoomed more than
18 % from our buy call

CINEMAX reached a high of 140 our target one up nearly 2 %

BEST BUY

INDIABULLS (BUY) 545 (Target1) 551 ( Target 2) 557 (Sl) 528

EVERONN (BUY) 522 (Target1) 528 ( Target 2) 532 (Sl) 503

CINEMAX (BUY) 137 (Target1) 140 ( Target 2) 142.5 (Sl) 133

The European melt down due to BNP Paribas issue rocked the indian market and it tanked heavily. The Dow is down by 387 points and the indian market is to follow suit today expect a carnage of 500-700 points today. Be cautious and avoid all longs for the time being....

Today, market may open flat or negative with gap down of 40-75 points attached with little volatility and remain long only above 4435 with SL 4418 for a tgt of 4485-4540. If it remains below 4430 keep short with SL 4450 for tgt 4350-4295. short and mint money will be the mantra for the day....

BEST SELL

LANCO INFRA(SELL) 285 (Target1) 281 ( Target 2) 278 (Sl) 294

BHARTI AIRTEL (SELL) 865 (Target1) 858 ( Target 2) 855 (Sl) 889

INDIABULL REAL EST (SELL) 502.2 (Target1) 498 ( Target 2) 495 (Sl) 518

The Indian markets followed global cues yesterday and markets receovered sharply with all round buying in index heavy weights were seen. If the global cues remains positive, the market may touch 4550-4600+ levels in the coming days. Before going long, it is advised to be cautious at these levels.

Today, market may open flat or positive with gap up of 25-38 points attached with some volatility due to profit booking at higher levels and remain long only above 4440 with SL 4425 for a tgt of 4500-4545. If it remains below 4435 keep short with SL 4450 for tgt 4410-4385. Dont carry overnight positions if the nifty closes below 4533.. Happy Investing

BEST BUY

RCOM (BUY) 535 (Target1) 541 ( Target 2) 546 (Sl) 527

CROMPTON (BUY) 295 (Target1) 299 ( Target 2)302 (Sl) 289

INDIABULLS (BUY) 575 (Target1) 581 ( Target 2) 586 (Sl) 565

UTV SOFTWARE Buy @ CMP Target 530 StopLoss 495

PETRONET LNG Buy @ CMP Target 66 StopLoss 60

BEST BUY

RCOM (BUY) 535 (Target1) 541 ( Target 2) 546 (Sl) 527

CROMPTON (BUY) 295 (Target1) 299 ( Target 2)302 (Sl) 289

INDIABULLS (BUY) 575 (Target1) 581 ( Target 2) 586 (Sl) 565

The Dow just managed to close in green amidst high volatility during the mid sessions. The indian markets will follow suit today. Since the market weakened in the closing hours, after remaining rangebound throughout the day, it is still not advisable to go long before the market closes above 4533. till then do intraday trade only..

Today, market may open flat or positive attached with high volatility and mixed bias and remain long only above 4370 with SL 4355 for a tgt of 4400-4435. If it remains below 4362 keep short with SL 4375 for tgt 4330-4305. Dont carry overnight positions till the nifty closes above 4533.. Till then,trade Intraday only....Mint Money..

BEST BUY

PUNJ LLOYD (BUY) 280 (Target1) 285 ( Target 2) 289 (Sl) 274

DLF (BUY) 583 (Target1) 591 ( Target 2) 596 (Sl) 572

CINEMAX (BUY) 140 (Target1) 143 ( Target 2) 157 (Sl) 135

Buy Andhrabank with sl 82.50 target 86.70---88.60

Asianelec with sl 918 target 950--980

sell Adaninet near 352 with sl 357 target 337--327

Start selling IFCI near 65-66.60 target 61--58

A relief rally or a technical bounceback is expected tomorrow if global cues are not extremely bearish. The expectation is based on a technical development that has place on Monday.

Though the index saw a huge slide on opening, the lows made in the first 15 minutes were not tested during the day. The Nifty also posted a new intra-day high of 4355, making the intra-day trend-day bullish. This, according to Kamalesh Langote, director VFMDirect.com, indicates that the markets may open on a firm note.

Trading volumes were marginally up from Friday’s level while the advance-decline ratio strongly favoured bears. Immediate support is seen at 4,300 levels while strong resistance is seen at 4,404 levels. The 50-day moving average (Nifty 4,348) and 20 day-swing (Nifty 4,340) are placed nearby.

The 13-week moving average is at 4,310. This indicates there may not be a major pullback in the near future. The put/call ratio of the Nifty open interest moved down to 1.36 from 1.42 as 12.82 lakh open interest was added in call options against 7.65 lakh in put options.

The support and resistance on the basis of the Nifty put/call ratio is at 4,400 as the open interest is evenly placed at 4,400 levels. The support is seen at 4,300 levels as 15 per cent of the total put open interest is seen at 4,300 levels.

The intra-day volatility saw the players squaring there positions during the last hour of trading. If the markets open with a strong upward gap, the mid-day profit booking will pull down early gains. On Monday, the short covering was seen at lower levels, which pulled the Nifty above the psychological levels.

According to analysts, we are into a strong bear market if Nifty sustains below 4321-26 for two days. Below it, Nifty will be clearly in a mid-term bear phase. Investors have to be cautious as a heavy selloff is not ruled out.

The AV Birla flagship Hindalco Industries and Tata Power Company (TPC) will jointly develop a coal block in Jharkhand that will feed both the companies’ upcoming power projects in the state.

According to sources close to the state government, the two companies will form a joint venture to develop the mines. “Hindalco will hold 70% of the venture, with TPC holding the rest,” said a senior state government official. The Jharkhand government had recently allotted the mines to the two companies.

The development, according to industry observers, is another instance of two corporate houses coming together to meet raw material needs at a time when demand is fast outstripping the supply. At present, Hindalco and Essar Power, through their JV firm Mahan Coal Company, are developing coal mines at the Mahan block of Sidhi-Singrauli fields in Madhya Pradesh.

Hindalco chairman Kumar Mangalam Birla made a mention of the Jharkhand project in his last week’s address at the company’s annual general meeting. Company spokesperson declined to give further details. A TPC spokesperson confirmed the allocation of the coal mines.

Shares of TPC were down 3.5% on the BSE at Rs 670 on Monday. Hindalco’s stock was down 3% at Rs 157.4. The Sensex had gone down by 1.55% on Monday. The mines allotted to Hindalco and TPC are located in Palamau, near Latehar, where the Birla company is setting up its greenfield project that includes a 350,000 tonne per annum aluminium smelter.

The company is also setting up a captive power plant of 750 mw, which will be fed from the coal mines. According to industry standards, the investment is estimated to be close to Rs 2,400 crore. The company has also filed an application for environmental clearance, water, construction, power and other necessary infrastructure for the project.

TPC is at present setting up a Rs 3,800-crore power project of 1,000 mw in the state under the Maithon Power joint venture it had signed with Damodar Valley Corporation in 2005.

According to company officials, the project already has a coal-linkage and the new allocation at Palamau will be used for a yet-to-be announced project in the state. In 2005, TPC had signed an agreement with the Jharkhand government to set up facilities to generate upto 3,000 mw over an unspecified time period.

Jharkhand has coal deposits of about 70 billion tonnes, 30% of the country’s total reserves of the mineral. Most of the reserves in the state is thermal coal, used in power generation. Coking coal is used in making steel.

The state government has signed memorandum of understanding with about 25 companies to set up plants to generate as much as 31,000 mw of power. The players include Arcelor-Mittal and the Jindal Group

The Dow syndrome worked perfectly with the india market today. Eventhough the market opened and fell sharply, it receovered in the late trade to minimise the losses for the day. The dow is now trading in green and we can see a relief rally tomorrow. If anybody is stuck badly in scrips, use this dead cat bounce as an oppurtunity to exit safely. I still advise all not to go long before the market closes above 4533. till then do intraday trade only

Tomorrow, market may open flat or positive with gap up of 30-40 points attached with high volatility and remain long only above 4340 with SL 4325 for a tgt of 4410-4454. If it remains below 4335 keep short with SL 4355 for tgt 4270-4245. Dont carry overnight positions till the nifty closes above 4533.. Till then,trade Intraday only....Mint Money..

Extreme Risky players may catch the rally with a tight & Strict stop losses.

stocks for sell.... Akruti, Jyotistruc, Redingtone, Uniphose, Bluestrco, Eracon, Indiacement, Centurytex, GTCindia.

BEST SELL

KOTAK MAHINDRA (SELL) 758 (Target1) 749 ( Target 2) 741 (Sl) 773

RANBAXY (SELL) 362 (Target1) 358 ( Target 2) 354 (Sl) 370

INDIABULLS (SELL) 579 (Target1) 572 ( Target 2) 567 (Sl) 591

The Dow syndrome catches the Indian markets and we are ready to face the carnage again...Global meltdowns is going to continue for some more days and only if we get a positive cue from the global market, one can expect of a bullish sentiment. I strongly advise every investor to be extra cautious in this kind of market and it will be safe for all to trade intraday only if one can take risk otherwise stay away from this kind of market...

Tomorrow, market may open flat or negative with gap down of 50-80 points attached with negative sentiments and remain long only above 4400 with SL 4385 for a tgt of 4430-4454. If it remains below 4395 keep short with SL 4410 for tgt 4360-4320. Dont carry overnight positions till the nifty closes above 4533.. Till then,trade Intraday only....

Tata Steel enters into pact with Riversdale

Tata Steel Ltd and Riversdale Mining Ltd, a company listed in Australian Stock Exchange announced on Saturday that they have entered into a Memorandum of Understanding, whereby Tata Steel will become a strategic investor in Riversdale's Mozam bique Coal Project by acquiring a 35% stake in it for a sum of A$100 million.

The Mozambique Coal Project includes the coal tenements of premium hard coking coal in Benga and Tete, located in the Tete province in Mozambique, which are fully owned by Riversdale through its subsidiary. The Benga and Tete tenements together cover an area of 24,960 hectares. The Riversdale management expects that the potential mineralisation of the area will be substantially high.

Riversdale is presently conducting a scoping study which is likely to be completed in August 2007. The Definitive Agreements are likely to be finalised and executed by November 30 2007.

The hard coking coal derived from this project will be supplied to the Corus facilities in the UK and Europe and also to the Company's enhanced requirement in India in the future.

Mr. B Muthuraman, Managing Director, Tata Steel said, "The Memorandum of Understanding with Riversdale is in the Tata Steel's strategy of progressing towards raw material security for its global business. This partnership gives Tata Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long term competitiveness of the global operations.

Mr. Michael O'Keeffe, the CEO and Chairman of Riversdale said, "The MoU with Tata Steel is a decisive corporate event for Riversdale and is a definitive recognition of the Moatize Coal Basin as a significant new source of supply of hard coking coal produ cts for the global steel industry

Apollo plans to set up hospitals in Mumbai, Chennai

Apollo Hospitals on Saturday said that it has chalked out a Rs 710-crore expansion plan to set up hospitals in Mumbai, besides a full-fledged orthopaedic hospital in Chennai soon.

"We have tied-up with Western Hospitals in Mumbai and will set up Centres of Excellence at various places. Each hospital will have 250-300 beds each,'' Apollo Hospitals Managing Director Preetha Reddy told reporters here. She said about Rs 600 crore has been allocated for the expansion in Mumbai and the process of finalising and acquiring land in Navi Mumbai, Thane, South Mumbai and Nasik has started. The orthopaedic hospital in North Chennai would have 200 beds at an investment of about Rs 110 crore, Ms Reddy said.

The consultancy division of Apollo would soon foray into Khazakhstan and Turkey, with details of the tie-up for the latter almost finalised. The company would soon start work on construction of their hospitals in Ahmedabad, Vishakapatnam and Bhubaneshwa r. "We expect our turnover to reach Rs 1,200 by the end of this year. We want to touch the 10,000-bed mark by 2010. Currently, we have about 8,000 beds, both through tie-ups and our own,'' the MD said.

Sanjivani launches new drug for Bird Flu

Pharmaceutical firm Sanjivani Paranteral said it has developed a new product for the treatment of contagious viral diseases, such as Bird Flu.

Apart from Bird flu the company's new product - Sancidal - can also be used in the treatment of other viruses such as Lassa Fever, HIV Virus, Hepatitis B and Yellow Fever, Sanjivani informed the Bombay Stock Exchange.

The product has a global market of $3 billion. It has been commercially launched in the domestic market and the company is in talks with various international players to launch the drug globally, it said

ItzCash targeting to double turnover this fiscal

Essel group company ItzCash Card Ltd said it is targeting to more than double its turnover to Rs 1,200 crore this fiscal.

"This year we had a revenue turnover of Rs 600 crore and we expect to double it by next year," Mr Shekher Shrivastava, Vice-President (Marketing), ItzCash said.

The company will be investing around Rs 12 crore this fiscal into its business, he said. Presently, there were one-lakh outlets of ItzCash and this was being proposed to be increased to 10-lakh outlets by 2010, Mr Shrivastava said.

There are 3,000 dedicated franchisees presently, which would be increased to 5,000 by FY-08, he added.

"ItzCash is a multi-purpose pre-paid card, easy to acquire and use at no additional cost. There are new payment options for transactions viz., Internet, SMS and telephone. It is used for transactions with affiliated merchants," he said.

"The only service tax to be paid by the customers is for railway tickets, around 1.5 per cent," he said. The company has tied-up with around 3,000 Web site merchants, he added.

The services offered and current merchants are for shopping, prepaid cards, travel, utility bills payments, mobile services, donations, insurance, matrimonials, entertainment, education, books and periodicals, gaming and others, he said

Madhucon Projects board recommends 30% dividend

Madhucon Projects Ltd has informed the BSE that the board at its meeting held on July 30 has recommended 30% dividend for the year 2006-2007 to the shareholders for consideration and approval

Texmaco to consider merger on Aug 14

Texmaco Ltd has informed the BSE that a meeting of the board of directors of the company will be held on August 14 to consider and approve the ratio of merger in respect of merger of three companies - Neora Hydro Ltd., Shree Export House Ltd., an d Evershine Merchants Pvt Ltd - with itself.

PLEASE TAKE POSITIVELY AT OPENING BELL OF MONDAY TO GET VERY SORT-TERM GAINS

1. GE SHIPPING CL-336, T-345/355
2.RELIANCE INDUSTRY CL-1801, T-1825/1850
3.AUROBINDO PHARMA CL-632, T-645/660

Market reacted to the good global cues yesterday and since the dow closed in positive today, indian markets to follow suit. Market may take some rest in the coming days with positive bias with less voilatility if the global cues are positive. Use dips to buy fresh longs preferably at lower levels.

Today, market may open flat or positive with less volatility and remain long only above 4360 with SL 4345 for a tgt of 4395-4430. If it remains below 4355 keep short with SL 4370 for tgt 4320-4285. Trade Intraday only....

Get the daily Market Review & Tips: Best call - Forbes.com: Business News

Research firm Sharekhan has maintained buy recommendation on Ceat with revised target price of Rs 216. At the current levels, the stock is trading at 8.4x its FY2009E earnings and at an EV/EBIDTA of 3.9x.

Result highlights

Ceat's Q1FY2008 results were in line with our expectations. The net sales have risen by 7.8% to Rs 536.4 crore, mainly driven by strong realisation growth due to price hikes and product mix changes. In line with the industry slowdown, the original equipment manufacturer (OEM ) sales declined by 11% year on year (yoy), but the effect of the same was mitigated because of strong growth in the replacement and the export markets.

The operating margins expanded 550 basis points to 9.2% during the quarter as a result of lower raw material cost, price hikes, improved product mix and other efficiencies. As a result, the operating profits grew by 166.3% to Rs 49.4 crore.

Adjusting for the impact of tax provisioning on the extraordinary gain, we estimate that the quarterly profits have grown to Rs 20.4 crore against Rs 0.2 crore same quarter last year. The quarter's results contain extraordinary items relating to refund from excise and income tax and reversal of export benefits granted in earlier years. Profit after tax (PAT) after extraordinary items have grown to Rs 30.4 crore.

Last few quarters have been pretty exciting for Ceat, as it has effected a smart turnaroud during the period and now its margins are comparable with the best in the industry. We expect this strong growth to continue, particularly driven by the replacement and the exports segment. We also expect the company to maintain its margins at these levels going forward. On the basis of strong performances by Ceat, we are raising our earnings estimate for Ceat by 6% to Rs16.9 for FY2008 and are introducing our FY2009 estimates of Rs 21.1.

The slowdown in the OEM segment is expected to continue for another couple of quarters. To counter the same, the company has already put in place strategies to concentrate more on the exports and the replacement markets.

The land sale is expected to be finalised by the third quarter of the current fiscal, while the demerger process is expected to be completed by the end of this fiscal.

At the current market price of Rs 177, the stock is trading at 8.4x its FY2009E earnings and at an enterprise value (EV)/earnings before interest depreciation and amortisation (EBIDTA) of 3.9x. We maintain our Buy recommendation on the stock with a revised price target of Rs 216.

Realisation growth fuels top line

The net sales of the company for the quarter grew by a 7.8% largely on account of realisation gains, while the growth in tonnage terms remained flat. The realisation growth was on the back of price hikes effected in the last one year and product mix changes.

Valuations and view

Considering the strong growth opportunities for the company (particularly in the in the specialty tyre segment), the smart turnaround and the improving productivity, we maintain our positive outlook on the company. The company is also raising its capacity in the off the road (OTR) segment to 45 tonnes a day from 25 tonnes a day by November 2007. The company has also announced to demerge the company into two.one to look the core business and the other, the investment portfolio. For every 100 shares held, the shareholder would get 75 shares of the core company and 25 shares of the new investment company. We believe the move is a positive one, and would lead to greater value unlocking for the shareholders. The de-merger is expected to be implemented during the current financial year. We continue to value the company on sum-of-parts basis. On the basis of strong performances rendered by Ceat in the recent times, we are raising our earnings estimate for Ceat by 6% to Rs16.9 for FY2008 and are introducing our FY2009 estimates of Rs 21.1. At the current levels, the stock is trading at 8.4x its FY2009E earnings and at an EV/EBIDTA of 3.9x. We believe the valuations are very attractive and maintain our Buy recommendation with a revised price target of Rs 216.

Best Buy

1. ABB
S/L - 1046
Target - 1106

2. BHEL
S/L - 1636
Target - 1699

3. Zee Enter.
S/L - 301
Target - 319 / 323

4. United Spirits (Mc Dowell)
S/L - 1298
Target - 1350 / 1360

5. NRB Bearing
S/L - 99
Target - 102 / 106

The market behaved exactly in tune with the global cues and for the time being check out for the global cues for the next day's trade. today's carnage was so brutal, that almost all the investors are trapped or have lost their hard earned money. if the market fails to hold on to 4339.75 in the coming day, we may see another carnage which may take nifty to a level of 4200+. so be cautious always...

Tomorrow, market may open flat or negative with a gap down of 50-75 points (only if the global cues are negative) with high volatility and remain long only above 4406 with SL 4395 for a tgt of 4465-4490. If it remains below 4400 keep short with SL 4412 for tgt 4280-4225. Avoid trading and play safe.......

since the dow is roaring now, please read the forecast as follows: " Tomorrow, market may open flat or positive with high volatility and remain long only above 4406 with SL 4395 for a tgt of 4465-4490. If it remains below 4400 keep short with SL 4412 for tgt 4280-4225."

BEARS TOOK OVER , SENSEX BELOW 15000

share prices suffered a severe setback today, 1 August 2007. After opening weak under the influence of the US markets, the market kept on declining on intense selling pressure. Weak Asian and European markets dampened the sentiment further. The BSE 30-share Sensex declined below the physcological 15,000 mark and the Nifty fell below 4,400.

All the sectoral indices on BSE tumbled with shares from the real-estate pack suffering the most. However, debutante Everonn systems india posted a strong show on day 1, settling at 242% premium over the issue price.

The fall in the market was accompanied by a surge in turnover on BSE. As per market talks, the fall has triggered margin calls,leading to more selling.

The Sensex lost 635.22 points, or 4.08%, to 14,915.77, as per provisional closing. It opened with a downward gap of 207 points at 15,344.02 and kept on falling to touch a low of 14,910.52 at 15:12 IST on intense selling pressure.

The NSE Nifty slumped 186.20 points, or 4.11%, to 4,342.90, as per provisional closing.

Turnover surged in the last hour of trades on BSE. The total turnover crossed Rs 6000 crore and was at Rs 6267 crore compared to Rs 5,075 crore at 14:30 IST.

The market breadth was weak on BSE with 2,147 shares declining as compared to 533 shares that advanced, while 41 remained unchanged.

All the 30-members of the Sensex pack ended in the red.

India’s second largest cement producer ACC plunged 9.62% to Rs 958 on 3.44 lakh shares. It was the top loser from the Sensex pack.

Reliance Energy (down 7.11% to Rs 737), Ranbaxy Laboratories (down 5.33% to Rs 369.10) and Mahindra & Mahindra (down 4.83% to Rs 693.90) were the other major losers from the Sensex pack.

India’s largest truck maker Tata Morors slipped 4.65% to Rs 666.80 after it reported a 22.2% rise in net profit to Rs 466.76 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 4.7% to Rs 6056.82 crore in Q1 June 2007 over Q1 June 2006.

Bajaj Auto, the country’s second biggest two-wheeler manufacturer, shed 2.76% to Rs 2295 after its vehicle sales fell 7% to 1,85,890 units in July 2007 over July 2006.

Reliance Industries, the country’s largest private sector enterprise, lost 5.25% to Rs 1793 on 15.84 lakh shares. As per reports, RIL is among the 11 winners for oil and gas exploration blocks announced by the Australian government. RIL won the bid for an exploration licence in part of the Bonaparte Basin, off northern Australia. It proposes to spend A$29.8 million over the next six years. This includes the cost of drilling one well. Australia awards oil and gas exploration permits depending on the amount of work bidders pledge to carry out.

India's largest aluminium maker Hindalco Industries tumbled 6.41% to Rs 159.20 after said its net profit in the first quarter remained flat at Rs 602.9 crore due to a sharp fall in alumina prices and a customs duty cut that made imported products cheaper. Hindalco’s revenue rose 9% to Rs 4,677.9 crore in Q1 June 2007 over Q1 June 2006. Hindalco is expected to invest Rs 30000 crore over the next five years in various greenfield and brownfield expansion projects, including the Utkal Alumina project in Orissa.

India’s top small-car maker Maruti Udyog lost 2.13% to Rs 825. The company today, 1 August 2007, reported an 18% rise in sales in domestic market to 52,839 units in July 2007 over July 2006. It exported 5,070 units, up from 1,755 units in July 2006.

Though FMCG and pharma shares, considered as defensive sectors in times of steep market correction, declined, the fall in their prices was relatively low. Dr Reddy’s (down 1.85% to Rs 621.80), ITC (down 2.17% to Rs 167), Hindustan Unilever (down 2.47% to Rs 201), and Cipla (down 3% to Rs 184) edged lower.

Even as the market corrected sharply, Everonn Systems India settled at Rs 478.45 on BSE, a 241.75% premium over the offer price of Rs 140. The huge premium on listing was due to 131.47 times subscription of the IPO. The issue received total bids for 52.58 crore shares compared to total issue of 40 lakh shares.

The Everonn Systems India scrip debuted at Rs 245 on BSE and touched a high of Rs 560 and a low of Rs 245 during the day. About 71.77 lakh shares were traded on the counter on BSE. Everonn Systems India is a fully integrated knowledge management, education and training company.

BUY

ABB sl 1125 tr 1172---1198

PFC sl 181 tr 190--194.50

Adaninet sl 326 tr 338--344

Adlab sl 507 tr 521.8---530.90

APIL sl 771 tr 799---822

BHEL sl 1715 tr 1777 --- 1826

Centurytex sl 724 tr 751.8 -- 775.7

EraCon sl 542 tr 559 ---571.8

Fortis sl 91.6 tr 95.8 --98.30

HCC sl 137 tr 142.50 --146

IDEA sl 127.50 tr 132.25 --134.90

HDFCBank sl 1195 tr 1218 --1236

Indiacem sl 217 tr 225 -- 231.50

IVRCL sl 381 tr 398 --409.60

Indiainfo sl 745 tr 768--781.6

Keep close watch on ... UNITECH, NDTV, KLGSYS, RIIL, KOTAKBK, JPASSO.

SELL

Corpbank sell near 364-370 sl 372 tr 358---354.80

IndianB sl 158 tr 147--143

JKLAXMICEM sl 156.50 tr 147.50---143.50

MSKPROJ sell near 109 sl 111 target 100--96

McDwel sell near 1400-1420 sl 1445 tr 1308----1240

BEST BUY

RCOM (BUY) 561 (Target1) 567 ( Target 2) 573 (Sl) 548

CINEMAX IND (BUY) 147 (Target1) 151 ( Target 2) 153 (Sl) 142

DLF (BUY) 609.5 (Target1) 614 ( Target 2) 620 (Sl) 598

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BEARS TOOK OVER , SENSEX BELOW 15000

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