Intraday calls for 20 May

BEST BUY

GMR INFRA (BUY) 151.5- 152.8 (Target1) 155 ( Target 2) 158.7 (Sl) 146

PVR LTD (BUY) 192- 193 (Target1) 196 ( Target 2) 201 (Sl) 184.6

SAIL (BUY) 186- 186.5 (Target1)191.5 ( Target 2) 193 (Sl) 178.6

Tuesday, 13th May, 2008 Closing...

Tuesday, 13th May, 2008
Closing
All fall down...

The broader markets had a smooth first half but then the rug was pulled from beneath their feet as the indices tumbled sharply. Banking heavyweights aided the indices, while software majors faced the brunt of the selling activity. As regards global markets, while the Asian indices closed in the green, the European indices are witnessing a positive trend currently.

The BSE Sensex closed at 16,753 (down 108 points) while the NSE Nifty closed at 4,958 (down 55 points). The rupee was trading at 42.01 to the dollar.

The markets opened firm today and had a smooth sailing till noon. However, the afternoon session witnessed a steep decline, which wiped out the earlier gains and pushed the indices below yesterday's closing levels. While the BSE midcap index ended marginally higher, the BSE smallcap index ended marginally lower. The overall market breadth was negative with losers outnumbering gainers by a ratio of 2:1 on the broader BSE. Hindalco (up 3%) and Jaiprakash Associates (up 2%) led the pack of gainers, while TCS and ONGC (down 3%) led the pack of losers.

As per a leading business daily, Arvind Mills plans to invest around Rs 4 bn towards expanding its retail presence in India. The company intends to enhance its own brands as well as its global licenced brands by increasing its presence across customer segments. It also wants to carry out a debt reduction exercise by using the cash flows of its fabric business, capital infusion of Rs 1.9 bn from promoters and unlocking of value in its non-strategic assets. The company owns three pockets of land in Ahmedabad, all of which are currently being evaluated by consultants. Arvind Mills closed lower by 2%, while Raymond ended 1% lower.

As per a leading business daily, the Indian railways may soon offer around 4,800 hectares of land to companies from the retail as well as logistics sectors to set up retail outlets, agri-retail infrastructure and warehouses. RIL, ITC, the Tatas and GE Logistics are said to be interested in the development. Around 3,000 sites have been identified by the railways across India for the purpose. The companies would in turn have to provide minimum traffic guarantee to the railways. The land is likely to be given on a 10-year lease to the companies. The retailers would also get preferential freight rates compared with other customers, which is likely to help the price that farmers get for their produce. A refrigerated rail link between non-metro agriculture hubs to transport perishable agri commodities is also being considered. The Indian Railways has a total of 4.23 lakh hectares of surplus land. Of which, 43,000 hectares are vacant. RIL ended lower by 2%, while ITC ended higher by 1%.

Share Market Tips of The Day 12 - May, 2008

TRIVENI Action - Sell Price - Below 122 Stop Loss - 124.50 Target - 118-116

Pre Market Watch - 12th May 2008

Pre-Open
Market worries, business hopes & more

What’s worrying the markets?
There’s no stopping the spectre of rising inflation as it continues to cast its spell on Indian stock markets. Rising prices of fuel and food and now a sharp depreciation in the currency has led to enhanced fears regarding inflation touching even higher levels. And even then, it is important to note, the inflation figures (measured by wholesale and consumer price indices) outlined by the RBI and other statistical organisations remain understated, for facts like the rising crude prices that have not been passed on to the consumers by way of higher prices for petrol, diesel and kerosene.

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What's keeping policymakers worried?

In this scenario, stocks from the oil and gas and rate sensitive sectors have been particularly hit. Pressure on stocks of companies that require high levels of capital investment is also showing no signs of abating. And then there is the fear of the economy slowing down on the back of high interest rates that have curbed money demand, both for consumption and investment. Without trying to sound overtly unnerved about these issues that dog sentiments, we believe that the pain is here to stay for the short to medium term.

Oil’s boiling over
As experts at Goldman Sachs, the US investment banker, discuss the ‘super spike’ that crude prices can take en route to the US$ 200 per barrel mark over the next 6 to 24 months, the commodity is showing no signs of costing any lesser than its current highs. Factors that have kept oil at the current high levels (of nearly US$ 120 per barrel) include – continued strong demand from guzzlers like India and China, supply side issues from oil’s largest producers, and of course, the US Federal Reserve induced dollar hammering that has led to speculative buying in crude and other commodities.

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Will the boiling oil spill over?

To make things simpler, since most of the world commodities are traded in US dollar terms, depreciation of the greenback makes its cheaper to buy these commodities, even when the users are finding it difficult to bear the ‘rising’ prices. Not only crude, you name a key commodity and it has witnessed a sharp spike in prices over the past few months – steel, copper and aluminium to name a few.

Taking the India model abroad
The news concerning Indian telecom major, Bharti acquiring a major stake in its South African counterpart, MTN, is heating up. The fact that the Indian company is aiming to replicate its low cost model across other geographies with similar income levels as India, is a rationale that carries much weight. As a matter of fact, India is adding 3 mobile subscribers every second. This is up from 1.5 four years back.

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Understand fundamentals of identifying a telecom stock

Unlike most of the consumption stories doing rounds in India and which show huge potential in the untapped rural markets, home to two-thirds of the country’s one billion-plus population, the increasing penetration of mobile telecom services is being acted out in reality. In rural India, carrying a US$ 20 mobile phone can be something of a status symbol. This is clearly indicative of the much-larger drama unfolding in the Indian telecom market, once considered a backwater and now the fastest growing in the world.

Weekly Tips [may 12 - may18]

Intraday calls for 09 May

BEST BUY

IFCI (BUY) 60- 61 (Target1) 63 ( Target 2) 65 (Sl) 57

CHAMBAL FERT (BUY) 66.5-67 (Target1) 69.5 ( Target 2) 71(Sl) 63.6

PRAJ INDS (BUY) 194.5-195 (Target1)198.5 ( Target 2) 204 (Sl) 190.6

Intraday call for 6th May 2008

BEST BUY

INDIABULLS SECURITIES (BUY) 121- 123 (Target1) 128.5 ( Target 2) 131 (Sl) 117

CHAMBAL FERT (BUY) 71-72 (Target1) 74.5 ( Target 2) 77 (Sl) 68

TTML (BUY) 37-37.3 (Target1) 38.5 ( Target 2) 39.8 (Sl) 35.6