Tuesday, October 6, 2009

Market Outlook for 6th June 2009

NIFTY FUTURE LEVELSRESISTANCE
5020
5044
5066
5118
5140
SUPPORT
4998
4985
4961
4939
Buy ASHIANA ISPAT;AD-MANUM FINANCE

INTRADAY calls for 6th Oct 2009
BUY HDIL-334 for 343-350+ with sl 328
BUY Bajajfinsv-301 for 311-327+ with sl 289
BUY Koutons-379 for 417-423+ with sl 370
BUY UB Holding-219 for 277+ with sl 208 [positional]

stocks that are in news today:
-Reliance Communication says every local call at 50 paise, all SMS at 50 paise
-UltraTech board meet today to mull merger with Samrudhi
-HDFC arm buys 10% stake in Nitesh Real Estate for Rs 100 crore
-ACC raises Rs 300 crore via NCDs (non-convertible debentures) through private placement
-Rains may squeeze sugar suppliers, delay in crushing to push up prices – BL
-Ashok Leyland in talks for JV in Argentina – BL
-Zensar Tech board approves buyback up to 24.2 lakh shares at Rs 165/sh ((CMP Rs 222))
-Madhucon Projects JV bags $3.9 million order in Nepal
-Lok Housing board approves issue of 50 lakh convertible warrants to promoters

Milestone buys 49% in Godrej Properties SPV for Rs 110 crore
-Indiabulls Property Investment Trust rights issue opens today
-Indiabulls Power issue opens of Oct 12, closes in Oct 15
-BSE cuts transaction fees for cash segment from Wednesday

Strong & Weak futures
This is list of 10 strong futures:

IOB, Orchid Chem, Educomp, Sun Pharma, BEL, Zeel, KFA, Ranbaxy, DCHL & Mphasis.
And this is list of 10 Weak futures:
TV-18, Idea, Grasim, Suzlon, Dish TV, Finance Tech, MTNL, Unitech LTD, GVK Power & Bharti Artel.
Nifty is in Up trend

NIFTY FUTURES (F & O):
Above 5020 level, expect short covering up to 5042-5044 zone and thereafter expect a jump up to 5064-5066 zone by non-stop.
Support at 4998 level. Below this level, selling may continue up to 4985 level by non-stop.

Buy if touches 4961-4963 zone. Stop Loss at 4939-4941 zone.

On Positive Side, cross above 5116-5118 zone can take it up to 5138-5140 zone by non-stop. If crosses and sustains this zone then uptrend may continue.

Short-Term Investors:
Bullish Trend. 3 closes above 4790.00 level, it can zoom up to 5155.00 level by non-stop.
BSE SENSEX:
Higher opening expected. Profit booking should happen.
Short-Term Investors:

Short-Term trend is Bullish and target at around 17671.82 level on upper side.
Maintain a Stop Loss at 16613.22 level for your long positions too.
POSITIONAL BUY:
Buy ASHIANA ISPAT (BSE Cash)
Bulls may hold on gains today.
1 Week: Bullish, as per current indications.

1 Month: Bullish, as per current indications.

3 Months: Surprisingly going up, opposite to bearishness.

1 Year: Bullish, as per current indications.

Buy AD-MANUM FINANCE (BSE Cash)
Surprisingly gone up, but bulls may lose control today.
1 Week: Bullish, as per current indications.

1 Month: Bullish, as per current indications.

3 Months: Bullish, as per current indications.

1 Year: Bullish, as per current indications.
FUNDS DATA

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
CategoryDateBuy ValueSell ValueNet Value
FII05-Oct-20093735.954045.96-310.01

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
CategoryDateBuy ValueSell ValueNet Value
DII05-Oct-20091211.391779.14-567.75



SPOT LEVELS TODAY
NSE Nifty Index 5003.20( -1.58 %) -80.20
123
Resistance5055.52 5107.83 5139.62
Support 4971.42 4939.63 4887.32




BSE Sensex 16866.41( -1.56 %) -268.14
123
Resistance 17007.01 17147.62 17233.22
Support 16780.80 16695.20 16554.59

Global Cues & Rupee
The Dow Jones Industrial Average closed at 9,599.75. Up by 112.08 points.
The Broader S&P 500 closed at 1,040.46. Up by 15.25 points.
The Nasdaq Composite Index closed at 2,068.15. Up by 20.04 points.
The partially convertible rupee closed at 47.525/535 per dollar on yesterday, above its Thursday's close of 47.74/75 per dollar.

INVESTMENT VIEW
Basant Agro Tech-Feeding The Land, That Feeds The People


Basant Agro is engaged in manufacturing and marketing of Fertilizers, and research and development of Hybrid Seeds.

SEED DIVISION

The Seed Division of the Company is engaged in research and develop­ment of various hybrid seeds under the supervision and guidance of renowned Scientist Dr. B.G.Bathkal, Ex-Vice Chancellor of Dr. Punja­brao Deshmukh Krishi University. Dr.Bathkal is a distinguished Scientist and well known breeder who is credited with pioneer work on development of cytoplasm male sterility in cotton in the world and is associated with R&D besides other breeders.

The Company has got well equipped laboratory wherein the research is being carried on. The R & D Laboratory of the Company has been approved by Ministry of Science & Technology, New Delhi. The company has 300 acres fully equipped research farm, the laboratory as well as farms of the Company has been visited by delegations of Israel and other Euro­pean Countries as well as by World Bank Officials. They were impressed by the research undertaken and quality of the seeds developed by the Company particularly of colour Cotton, Sorghum, Sunflower, Maize, Groundnut, Urad, Chilly, and Sweet Corn etc. etc.

The Seed Division of the Company is expected to give good results in the years to come. The Company has got the Germ Plasm for many seeds like millet, Sorghum, Cotton, Sunflower, and Maize etc. It is associated with the advanced research on many seeds under association with the ICRISAT Hyderabad. The performance of the seed division will be reflected in the financial results for the year 2004-05 and seed division will contribute substantially to the turnover well as profitability of the company from the year 2005-06.

As many research products have been launch in market, and are market fancy today. The company is embarking in a seed business in a big way by giving contract farming for hybrid seeds productions and negotiating with foreign companies for tie-up for marketing of imported seeds.

FERTILISERS DIVISION

The Company is the manufacturer of Fertilizers having Plants located at Akola in the Vidarbha Region of Maharashtra. The Kaulkhed Plant which was installed in 1994 is having capacity to produce 60,000 T.P.A. of NPK Granulated Mixed Fertilizer of various types. The Company installed second Plant in Kanheri Village to manufacture Single Super Phosphate (SSP) Powder Fertilizers with 1,20,000 T.P.A. capacity and SSP Granules Fertilizers with 60,000 T.P.A. capacity.

The Fertilizers of the Company under brand name "KRISHI SANJIVANI" has been well accepted by Farmers and the Company is registering record performance year after year. The Company is well established in Maharashtra Madhya Pradesh, Chattisgarh and Andhra Pradesh. The company is now planning to market its Fertilizers in other States like Karnataka, Rajasthan and Western Maharashtra etc.

The company has acquired the NPK mixture granulated fertilizer plant at Sangli having installed capacity 30,000 TPA which makes the total production capacity of the company of NPK mixture granulated fertilizer to 90,000 TPA. The company will be substantially benefited with the said acquisition because of the strategic location of the said unit. The company will be able to market its product into highly potential fertilizer market of western Maharashtra which includes the most fertile and irrigated area of Krishna basin.
WIND POWER GENERATION UNIT

Recently the company has diversified into wind power generation. The wind turbine generator (WTG) plant of the company has started the power generation at Dhulia site. The technology for the said power generation plant was supplied by M/s Suzlon Energy Ltd. With the commencement of the activity of power generation the bottom line of the company is expected to improve. The said power generation activity is not only in commensurate with the national policy of the government of harnessing non conventional sources of energy but also helps in reducing the power deficit in the state of Maharashtra.

MARKET SCENARIO AND FUTURE PROSPECTS

There has been increased awareness in the Farmers for the use of Chemical Fertilizers to have better agricultural output and as a result of which the demand for Fertilizers is growing year after year. Basant Agro due to its locational advantage has an edge over its competitors. It is situated at consumption centre. Wide network of its distributors and maintenance of good quality of Fertilizers has resulted in increase in the sale of Fertilizers of the Company. Its continuous efforts to minimize the cost of production are the basic key for the success in the very competitive fertilisers market.

With the positive attitude of the central as well as state government towards the agricultural sector, it is expected that there will be substantial growth of agro-based industries in the years to come. The MRP of SSP has been increased by State Govt. after 5 years substantially. The subsidy on SSP fertilisers has also been raised by Central Government by Rs. 325 per MT. This will give big rise to top & Bottom line. There are 195 units producing 75 Lacs M.T. of SSP now there are only 50 to 60 units & demand is more. It is used in Basel dose in all crops like Cotton, Oil Seed, Sugarcane and Wheat etc. etc. It's only Fertiliser that has sulphur. It is Poor man's Fertiliser.

NPK mixture is better & cheaper than complexes. It has slow releasing nature & remains for long time in field. They are tailor made as per soil & weather condition.

CONCLUSION

Company has a strong presence in Agri Sector and is considered one of the leading players in Agro Based Industries. Agriculture has been and shall remain vital sector in Indian Economy and promises to have its dominant position in years to come. Basant Agro being part of this core sector shall be key contributor in the segment.

(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