Headlines : 23 June 2009
Corporate News Headline
• Jindal Saw has secured orders worth Rs. 10 bn for supplying pipes in both domestic as well as international markets. (BS)
• BHEL has bagged a Rs. 1.05 bn order from IOC for setting up a captive power plant at the latter's Barauni Refinery Complex. (BS)
• ABB India bagged orders worth Rs. 550 mn to provide electrical infrastructure for modernisation of Kolkata airport. (BS)
Economic and Political Headline
• The government is planning to hike the price of natural gas produced by ONGC and Oil India by over 17% and index it to inflation rate to help the two firms cut losses on selling fuel below cost. (BS)
• The UK home sellers lowered asking prices in June for the first time in five months as banks scaled back lending and required buyers to stump up bigger deposits. (Bloomberg)
• European Central Bank President Jean-Claude Trichet said that there's still a risk that renewed financial turmoil could hamper an economic recovery. (Bloomberg)
Corporate News Headline
• Jindal Saw has secured orders worth Rs. 10 bn for supplying pipes in both domestic as well as international markets. (BS)
• BHEL has bagged a Rs. 1.05 bn order from IOC for setting up a captive power plant at the latter's Barauni Refinery Complex. (BS)
• ABB India bagged orders worth Rs. 550 mn to provide electrical infrastructure for modernisation of Kolkata airport. (BS)
Economic and Political Headline
• The government is planning to hike the price of natural gas produced by ONGC and Oil India by over 17% and index it to inflation rate to help the two firms cut losses on selling fuel below cost. (BS)
• The UK home sellers lowered asking prices in June for the first time in five months as banks scaled back lending and required buyers to stump up bigger deposits. (Bloomberg)
• European Central Bank President Jean-Claude Trichet said that there's still a risk that renewed financial turmoil could hamper an economic recovery. (Bloomberg)
Strong & Weak futures
This is list of 10 strong futures:
This is list of 10 strong futures:
Bajaj Hind, M Phasis, Tech M, Indus Ind Bank, Central Bank, Voltas, IDBI, MRPL, Patni & Aurobindo Pharma.
And this is list of 10 Weak future:
Sterlin Bio, RPL, India Info, H Dil, Orchid Chem, Jet Airways, TCS, BRFL, Reliance & NTDV.
Nifty is in Down Trend.
Nifty is in Down Trend.
NIFTY FUTURES (F & O):
Selling may continue up to 4213-4215 zone for time being.
Selling may continue up to 4213-4215 zone for time being.
Hurdles at 4246 & 4268 levels. Above these levels, expect short covering up to 4317-4319 zone and thereafter expect a jump up to 4365-4367 zone by non-stop.
Cross above 4414-4416 zone, can take it up to 4463-4465 zone. Supply expected at around this zone and have caution.
On Negative Side, rebound expected at around 4164-4166 zone. Stop Loss at 4115-4117 zone.
Short-Term Investors:
Bullish Trend. 3 closes above 4270 level, it can zoom up to 4830 level by non-stop.
Already SL triggered. 3 closes below 4270 level, it can tumble up to 3990 level by non-stop.
BSE SENSEX:
Lower opening expected. Recovery should start.
Short-Term Investors:
Short-Term trend is Bearish and target at around 12478 level on down side.
Maintain a Stop Loss at 14931 level for your short positions too.
Already SL triggered.
POSITIONAL TRADERS ONLY
Sell MRPL (NSE Cash)
Lower opening expected. Profit booking should start.
POSITIONAL TRADERS ONLY
Sell MRPL (NSE Cash)
Lower opening expected. Profit booking should start.
If trades below 89 level, then profit booking may start up to 85 level. Below 82 level, expect free fall too.
If crosses 89 level, then traders can expect further buying up to 92 level.
Sell BANK OF BARODA (NSE Cash)
Lower opening expected. Profit booking should start.
If trades below 451 level, then profit booking may start up to 429 level. Below 416 level, expect free fall too.
If crosses 451 level, then traders can expect further buying up to 465 level.
Sell DABUR (I) (NSE Cash)
Lower opening expected. Profit booking should start.
If trades below 120 level, then profit booking may start up to 114 level. Below 111 level, expect free fall too.
If crosses 120 level, then traders can expect further buying up to 124 level.
Sell CHENNAI PETROLEUM FUTURES (NSE)
Lower opening expected. Profit booking should start.
If trades below 184 level, then profit booking may start up to 175 level. Below 170 level, expect free fall too.
If crosses 184 level, then traders can expect further buying up to 190 level.
Sell WOCKHARDT FUTURES (NSE)
Lower opening expected. Profit booking should start.
If trades below 137 level, then profit booking may start up to 130 level. Below 126 level, expect free fall too.
If crosses 137 level, then traders can expect further buying up to 141 level.
Global Cues & Rupee
The Dow Jones Industrial Average closed at 8,339.01. Down by 200.72 points.
The Broader S&P 500 closed at 893.04. Down by 28.19 points.
The Nasdaq Composite Index closed at 1,766.19. Down by 61.78 points.
The partially convertible rupee ended at 48.62/63 per dollar on yesterday, lower than Friday's close of 48.09/10.
SPOT LEVELS TODAY
 | 4235.25 | ( -1.82 %) | -78.35 |  |
| 1 | 2 | 3 | ||
| Resistance | 4317.70 | 4400.15 | 4448.05 | |
| Support | 4187.35 | 4139.45 | 4057.00 | |
 | 14326.22 | ( -1.35 %) | -195.67 | | |
| 1 | 2 | 3 | |||
| Resistance | 14573.16 | 14820.09 | 14971.79 | ||
| Support | 14174.53 | 14022.83 | 13775.90 | ||
PSL Limited: Inefficient Management
BSE 526801; Sell
After a recent inter-action with analysts, the consensus view is the management at PSL Limited, is inefficient, backward looking and unable to foresee problems.
This is apparent from Q4 FY09 numbers:
While Revenues showed a quantum jump, net margins declined to roughly 1 per cent making building pipes another trading type of a business with no downward protection for any business exigencies or shaky trading conditions.
The management cast the blame for a poor Q4 on currency losses, the INR Vs Dollar cross and huge rise in Steel costs, suggesting that it built steel sheet inventories at the highest possible point in time.
The management has been unable to spell a clear vision for its Sharjah operations where orders are soft, as also the newly commissioned pipe mill in the USA. Plans for China are unknown as yet.
The corporate carries a sizeable debt of Rs 1000 crore on a Equity of Rs 42 crore.
The Debt is now to be swapped with Equity through a Rs 300 crore QIP which could raise Equity to over Rs 50 crore, another massive dilution.
If current trends persist, PSL FY10 PAT could fall to Rs 60 crore on an even higher Revenue base, with EPS post dilution dropping down to Rs 10-12 from the present Rs 20 per share.
The share can easily halve down from here over the next six months, and investors should seek better stocks to invest in. A clear thumbs down for the management.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
--
Arvind Parekh
+ 91 98432 32381
