Market Today on 01.10.2008

The strong recovery from the new low after the statement of Finance Minister has regained confidence in the investors at least for the time being and the positive global cues combinedly will lead our market to open gap up of 40-50 points in Nifty we may witness a level of 4000 nifty in the first half itself and if it sustains there we may reach upto 4050 to 4080 mark. Ther may be some profit booking in the last hour but that may remain insignificant. If Asian market supports we may see Nifty even crossing 4200-4230 mark.
Total turnover traded was at 76,501.96 crore. This includes Rs 14,785.57 crore from NSE cash segment, Rs 56,549.63 crore from NSE F&O and balance Rs 5,166.76 crore from BSE cash segment.
3850 in Nifty and 12500 in now the important and key support level in nifty and Sensex respectively. If this support level is breeched again then next immediate support is at 3760 level. Next reisistance will be faced at 4250 in Nifty and 14400 at sensex. Market range whole day is expected to be between 3900-4200 in nifty and 12750-13500 in Sensex.

HOT NEWS
-US bailout rejected but not ruled out yet. FM said it is crucial for global market.
-As per FM Indian banks are financially sound and there is no need to panic.
-Goerge Bush called an urgent meeting to economy status and market crisis. US market reacted positive.
-Crude oil again touching 100$ per barrel mark.

Sectors to Watch-
On good global cues we may see buying in IT stocks, Telecom sectors and Banks, Realty will also gain and Metals may regain its shine. Fertilizers is expected to have a good day and Oil and Gas and Capital goods will also gain. HealthCare is expected to remain flat and so will be FMCG.
Stock to Watch-
On the upside we may see Reliance Capital, Jindal Steel and Power, Indiainfoline, Dabur India, Reliance Industries, Reliance Capital, Axis Bank and Adlabs
On down side we may see Tata Motors , Maruti Suzuki and NMDC.

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Calls for this week- 29 Sep-03.10.2008

Buy Reliance Infra @ 800 for a target of 905, 910.
Buy Adlabs @ 335-340 for a target of 385-390
Buy Indiainfoline @ 95 for a target of 107-110
Buy Jindal Steel and Power @ 1260-1275 for a target of 1400-1410
Buy Reliance Industries @ 1950-1960 for a target of 2100, 2125

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Stock Analysis- Dabur India Limited

In the current volatile market when after every recovery a new low is attained, this stock is a defensive one and can give a risk free profit in long term as well in near term.

FUNDAMENTAL ANALYSIS:-
The company has a market cap of more than7,700 crs with a P/E of 24.20 and EPS of 3.74. After gaining a strong presence in its core segments like hair oil and health supplements, DIL has successfully added new businesses like foods, oral care (toothpaste), international business and shampoos over the past five years. DIL has entered the organized retail market by setting up retail stores based on the health and beauty platform. Till date, DIL has opened 7 'new U' stores and plans to add 5-6 new stores during FY09. The retail venture is expected to generate revenues of ~Rs400mn in FY09 and to break even by FY11. DIL plans to invest ~Rs2.5bn over the next two years. Besides a ~Rs1.2bn brownfield expansion in FY09, DIL also plans to set up ~Rs1.5bn greenfield plant in FY10 in the tax free zone, which will enable it to take advantage of MAT till 2020.
TECHNICAL ANALYSIS:-
With strong growth momentum across segments, it is expected DIL to register revenue CAGR of 16% and a PAT CAGR of 17.1% over FY08-10. Technically the stock is above its 30 dma and 50 dma and a strong rally could easily lift it above its 150 dma. Days BSE NSE
30 90.76 90.83
50 90.85 90.89
150 95.75 95.84
200 98.66 98.71
ADVICE TO INVESTORS:-
It is recommended for short-term investors the stock at the current levels and on declines to support of Rs 84-85 levels. Targets are as mentioned below.
TARGET:-
Based on above analysis targets estimated are
i) Short term – 100-103 Rs. for positional traders with stop loss of 82 Rs.
ii) Medium term – 125-135 Rs. for investors, Once it crosses 110Rs.and sustain there.
iii) Long Term –180-200 Rs. for investors.
Note: - All above views are mine and before investing investors should apply their con sense and do it at their own risk.
HAPPY INVESTING

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Market Today on 26.09.2008

After the negative finish on F & O expiry we may see the start of a new chapter and the start is expected to be positive as the US market reacted very positively on call for emergency meeting by US President to take steps to solve the market crisis, India may also react positively and it is expected a gap up opening of 50-60 points in Nifty, buying may be seen all around and we may cross 4200 by the end of the day. 4250-4300 will be the level where profit booking may be seen again.
Total turnover crossed Rs 1-lakh crore mark due to F&O expiry. It stood at Rs 1,03,047.35 crore. This includes Rs 15,291.03 crore from NSE Cash segment, Rs 82,697.69 crore from NSE F&O and balance Rs 5,058.63 crore from BSE Cash segment.
4000 in Nifty and 13200 in now the important and key support level in nifty and Sensex respectively. If this support level is breeched again then next support is at 3850 level. Next reisistance will be faced at 4300 in Nifty and 14600 at sensex. Market range whole day is expected to be between 4050-4200 in nifty and 13250-14000 in Sensex.

HOT NEWS
Inflation remains to unchanged at 12.14, expectation was a bit higher.
Rupee ended further lower and bonds higher.
Goerge Bush called an urgent meeting to economy status and market crisis. US market reacted positive.
Sectors to Watch-
On good global cues we may see some buying in IT as US market reacted positively on Goerge Bush statement that no stone will be left unturned to overcome the crisis. Banks and Realty may recover further, Capital goods may gain, Health sector, FMCG and Auto will remain passive while Metals may regain its shine.
Stock to Watch-
On the upside we may see Sterlite Industries, Jindal Steel and Power, Reliance Petro, India Infoline, TCS, Infosys and HDFC
On down side we may see Tata Motors and Cairns India.

Lastly wishing you all a happy and earning trading day.

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Profit For Sure- Aban Offshore

Aban offshore an offshore company is on high demand on its new contract with Venture drilling. It is a fundamentally strong script present at very discounted rate.
FUNDAMENTAL ANALYSIS:-
The company has a market cap of more than 8,700 crs with a P/E of 43.36 and EPS of 53.19. Venture Drilling AS, a company in which a subsidiary of Aban Offshore Ltd (Aban) has a 50% shareholding, has signed a 18 month contract with Maersk Oil Angola, at an operating day rate of US$495,000 after withholding tax. Although about 100 rigs (jack-ups, semi-submersible and FPSO) are likely to be delivered in the next three years, we believe demand would be strong enough to absorb incremental supply. Aban has clocked the highest operating margins in the industry at a global scale. Further, the growth rate expected for Aban over the next couple of years is higher than most of its peers.

TECHNICAL ANALYSIS:-
The stock is trading at a steep discount of 40-45% compared to its global peers based on FY09E and FY10E P/E multiples. It is at present below its 30 dma and may look technically week, but offshore companies has a great future and can bounce back shortly. The stock has witnessed a high of 5,555 Rs and no at very discounted rate.

ADVICE TO INVESTORS:-
It is recommended for short-term investors the stock at the current levels and on declines for the target given below. Based on above analysis targets estimated arei) Short term – 2540-2560 Rs. for positional traders with stop loss of 2240 Rs. ii) Medium term – 3100-3150 Rs. for investors, Once it crosses 2700 Rs.and sustain there.iii) Long Term – 4200-4300 Rs. for investors.
Note: - All above views are mine and before investing investors should apply their con sense and do it at their own risk.
HAPPY INVESTING

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Market Today on 15th Sep 08

Last week was a bad week and it created a wave of panic among the investors and the market breeched its important support levels. All the good news were ignored. Now the first day of the week is the important day and to say a descesive day of bull and bears fight. News are positive, market has discounted more than enough and it is expected a good start of the week and the market may open 30-40 points gap up in Nifty. It is expected that market may hold its support of 4300 in nifty and 14300 in sensex by the end of the day.
Total turnover was very high in today’s trade, which stood at Rs 75,013.72 crore. This includes Rs 12,437.57 crore from NSE Cash segment, Rs 57,492.96 crore from NSE F&O and balance Rs 5083.19 crore from BSE Cash segment.
4300 in Nifty and 14300 in Sensex has been breeched and all depends on todays market, it is expected that on positive news market may hold its support again but if Nifty falls below 4200 then Bear may tighten its grip and we can see a fall below 4000. Market range whole day is expected to be between 4180-4310 in nifty and 13900-14350 in Sensex.
Sectors to Watch-
Market sentiments if remain positive then Metals and Banks will be the major gainer. IT can enjoy strengthening of dollar. Sugar is expected to be bitter yet another day. Realty may recover on releif rally. Reliance may decide Oil and Gas sectors movement.
Stock to Watch-
ICICI Bank, Indiabulls finance, Reliance infra, Thermax and Aban offshore. Reliance Industries is expected to bounce back.
To select stocks to accumulate for long term go to blogs of gujjubulls to have a overall view on the stocks.
For intraday traders it is advised to take proper position before going for short or long market may open. Book profit in small gains.
Lastly wishing you all a happy and earning trading day.

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Market Today on 08.09.08

Friday was a day of profit booking on the confusion about Nuclear deal, now as the deal is through and India got NSG waiver, market seems to react positively. Asian markets were beaten badly in last 2-3 sessions are also due for a recovery and this will all lead to a GREEN opening of market with an expected 50-60 points up in Nifty. Market may range at this level and may see some more upward movement in second half on cues of European markets which are also expecting a good recovery.

The market turnover stood at Rs 63,055.53 crore. This includes Rs 11,390.26 crore from NSE Cash segment, Rs 46,868.19 crore from NSE F&O and balance Rs 4,797.08 crore from BSE Cash segment.
4300 in Nifty and 14300 in Sensex is the strong support level in Nifty and Sensex respectively. Though these level doesn’t seems to get breeched in near term as the market will hold at 4300 right now Market range whole day is expected to be between 4300-4480 in nifty and 14200-15000 in Sensex.

Sectors to Watch-
Power and Energy, Infrastructures, Capital goods will be the major gainer, Banks and Realty may be positive on decreasing inflation, other sectors will be sedative with positive bias.
Stock to Watch-
Reliance Industries, Reliance Infra, NTPC, Rolta, Areva T & D, L&T, JP Associates and Suzlon Energy.

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