Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-06-Apr-2010.htm
Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-07Apr2010.htm
 Corporate News Headline | |
| • | Punj Lloyd has bagged two orders worth Rs. 2.35 bn for a processing unit and setting up offsite facilities at Mangalore Refinery. (BS) |
| • | Suzlon Energy has bagged a contract from Gujarat State Fertilisers & Chemicals (GSFC) for setting up a wind energy project in Gujarat. (BS) |
| • | RIL is unable to hit peak gas production at its D6 block off the east coast due to customers not buying allocated volumes and a lack of pipeline infrastructure, a top official at the energy major said. (BS) |
 | |
| Economic and Political Headline | |
| • | India asked US investors to participate in its USD 600 bn-infrastructure programme in the next five years. Deepening our ties with India is critical to the broader global effort to develop a framework for strong and balanced growth and will facilitate more trade, investment and job creation in our two countries," US Treasury Secretary Timothy Geithner said after meeting Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee. (BS) |
| • | Job openings in the US fell in February for the first time in three months, a sign employers will be slow to expand staff even as firings subside. Openings decreased by 131,000 to 2.72 million, the Labor Department said in Washington. Fewer people were hired and the number of workers fired also decreased, the report also showed. (Bloomberg) |
| • | Japan's broadest indicator of economic health rose for an 11th month, extending the longest streak since 1997, as the nation sustained an economic recovery amid deflation. The coincident index, a composite of 11 indicators including factory production and retail sales, climbed to 100.7 in February from 100.3 a month earlier, the Cabinet Office said in Tokyo. (Bloomberg) |
This is list of 10 strong future:
Andhra Bank, Allahabad Bank, Sintex, Tata Steel, GE Shiping, IOB, Concor, Ispat Industries, Pir Health & Orient Bank.
And this is list of 10 Weak futures:
Bajaj Hind, Balrampur Chini, BEL, Hind Petro, HCL Tech, Tech Mahindra, BPCL, Mphasis, KFA & Maruti.,
The daily trend of nifty is in Up trend since 16th February
CASH/SPOT INDEX LEVELS TODAY
CASH/SPOT INDEX LEVELS TODAY
 | 5366.00 | ( -0.04 %) | -2.40 |  |
| 1 | 2 | 3 | ||
| Resistance | 5400.17 | 5431.93 | 5486.32 | |
| Support | 5314.02 | 5259.63 | 5227.87 | |
 | 17941.37 | ( 0.03 %) | 5.69 |  | |
| 1 | 2 | 3 | |||
| Resistance | 18024.93 | 18114.17 | 18279.81 | ||
| Support | 17770.05 | 17604.41 | 17515.17 | ||
NIFTY FUTURES (F & O):
Below 5351 level, expect profit booking up to 5345-5347 zone and thereafter slide may continue up to 5336-5338 zone by non-stop.
Hurdles at 5377 & 5380 levels. Above these levels, rally may continue up to 5393-5395 zone and thereafter expect a jump up to 5401-5403 zone by non-stop.
Cross above 5406-5408 zone, can take it up to 5414-5416 zone by non-stop. Supply expected at around this zone and have caution.
On Negative Side, break below 5332-5334 zone can create panic up to 5323-5325 zone by non-stop.
Short-Term Investors:
Bullish Trend.
Up Side Target at 5429.95.
Stop Loss at 5106.55.
INVESTMENT VIEW
Swaraj Engines-BUY, Tgt Rs 500
Swaraj Engines Ltd. (SEL) is now part of the M&M group (33.2% stake). SEL's principal activity is to manufacture and supply of engines and hitech engine components for tractors and other commercial vehicles. The products include internal combustion diesel engines, diesel engine components and spare parts.
Though SEL was originally set up to manufacture engines for PTL, in recent years SEL has also been a supplier of hi-tech engine components to Swaraj Mazda Ltd. (SML). Since start of commercial operations in 1989-90, SEL has supplied around ~320,000 engines for fitment into "Swaraj" tractors.
SEL has only two customers; (i) PTL to whom they supply tractor engines (supplies 5 types of engines from 20 horse power (HP) to 50 HP) and (ii) SML to whom they supply hi-tech engine components for their commercial vehicles. The resultant positive outcome is low levels of marketing expenses which otherwise the company would have to incur. The management also benefits from lower inventory costs.
SEL's engine business currently constitutes ~93% of company's product revenue and balance ~7% represents value of hi-tech engine components being supplied to SML for assembly of commercial vehicle engines.
'Swaraj Division' of M&M helped SEL to record its highest ever despatches of 28,539 engines in FY'09 as compared to 16,408 engines despatched in FY'08. We expect the company to sell ~38000 units this fiscal. By undergoing debottlenecking, rebalancing and capital infusion, SEL can increase its installed capacity which is currently at 36000 engines (on double shift basis) to achieve the projected volume targets.
SEL is a zero debt company with cash and investments of about Rs.61 per share as on March'09. We expect the debt-free status quo likely to be maintained as capital expenditure to be funded through internal accruals.
Investors with a long-term perspective can BUY the stock as the prospects of both tractor and commercial vehicle industry are upgraded. The improving economic outlook and rising farm income is a positive for the tractor industry. Most agricultural crops have seen substantial hike in support and market prices over the last two years which will boost agricultural incomes.
The government is also focused on improving credit supplies to the rural sector at reasonable rates. We expect the company to register a CAGR of 28.4% in sales and 45.4% in profits for FY'09-11e.
At the CMP Rs.315.10, the scrip trades at 10x FY'2010e EPS of Rs.30.2 and 8.5x FY'2011e EPS of Rs.36.3.
(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.)
Fedders LLoyd-BUY
Fedders Lloyd Corporation Ltd. promoted by Punj Family started the trading business of AC Units and subsequently commenced the manufacturing of AC Units in India. The company has posted a phenomenal increase in net profit for the period Q3 (ending Dec 09) of the current fiscal (FY10). During the said quarter, net profit zooms 6.13 times to Rs 7.54 crores in comparison to the Rs 1.23 crores of Q3 (ending Dec 08) of previous year (FY09).
The company informed the market (BSE) that the net sales too surged 99.26% to Rs 140.42 crores in Q3 FY10 when compared with the same quarter Q3 FY09 of previous year. Net sales was Rs 69.49 crores in last year's quarter.
(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.)
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 06-Apr-2010 | 2361.15 | 2099.45 | 261.7 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 06-Apr-2010 | 1400.46 | 1319.39 | 81.07 |
Disclosure: I don't have any positions in the above said scrips & NIFTY FUTURES.
Disclaimer:
"I do not make any warranties, express or implied, as to results to be obtained from using the information in this e-letter. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report."
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Arvind Parekh
+ 91 98432 32381
Arvind Parekh
+ 91 98432 32381
