 Corporate News Headline | |
| • | Sun Pharma received approval from the US health regulator for generic version of anti-allergic product Prometh syrup. (BS) |
| • | Idea Cellular has alloted 19.91 crore shares to the shareholders of Spice Communications that has been merged with the Company. (BS) |
| • | Fedders Lloyd Corporation said the company in a consortium with Spain's Cobra Instalaciones bagged a power distribution project worth Rs. 2.57 bn from Madhya Pradesh Kshetra Vidyut Vitaran. (BS) |
 | |
| Economic and Political Headline | |
| • | India's food price inflation eased in early March but fuel inflation continued to rise, adding upward pressure on headline inflation and maintaining the case for the Reserve Bank to raise rates at its April policy review. Data released showed the food price index rose 16.30% in the year to March 6, lower than an annual rise of 17.81% in the previous week, continuing a downward trend for the second straight week. (BS) |
| • | The cost of living in the US was unchanged in February, underscoring the Federal Reserve's forecast that inflation will remain low. The consumer-price index didn't increase for the first time since a decrease in March 2009, and followed a 0.2% gain in January, Labor Department figures showed. Excluding food and energy costs, the so-called core index increased 0.1%. (Bloomberg) |
| • | The index of US leading indicators rose 0.1% in February, pointing to an economy that may expand at a slower pace in the second half of 2010. The increase in the New York-based Conference Board's measure of the outlook for three to six months matched expectations and followed a 0.3% rise in January. (Bloomberg) |
SPOT INDEX LEVELS TODAY
 | 5245.90 | ( 0.27 %) | 14.00 |  |
| 1 | 2 | 3 | ||
| Resistance | 5262.90 | 5279.90 | 5304.15 | |
| Support | 5221.65 | 5197.40 | 5180.40 | |
 | 17519.26 | ( 0.17 %) | 29.18 | | |
| 1 | 2 | 3 | |||
| Resistance | 17572.39 | 17625.52 | 17702.91 | ||
| Support | 17441.87 | 17364.48 | 17311.35 | ||
Strong & Weak stocks
This is list of 10 strong stocks:
Chennai Petro, India Hotels, Idea, JSW Steel, Hindalco, Triveni, ICICI Bank, Sail Ltd, Indusind Bank & Polaris Software.
And this is list of 10 Weak stocks:
Renuka, Balrampur Chini, Bajaj Hind, Nagarjuna Fertil, Tulip, ICSA, Chambal Fert, Hind Petro, Dish TV, IOB.
Nifty is in Up trend
NIFTY FUTURES (F & O):
Above 5268-5270 zone, rally may continue up to 5274 level and thereafter expect a jump up to 5284-5286 zone by non-stop.
Support at 5243 & 5244 levels. Below these levels, expect profit booking up to 5225-5227 zone and thereafter slide may continue up to 5209-5211 zone by non-stop.
Buy if touches 5204-5206 zone. Stop Loss at 5188-5190 zone.
On Positive Side, cross above 5290-5292 zone can take it up to 5305-5307 zone by non-stop. If crosses & sustains this zone then uptrend may continue.
Short-Term Investors:
Bullish Trend.
Up Side Target at 5438.30.
Stop Loss at 5105.50.
Equity:
ICICIBANK (NSE Cash)
Rallied on yesterday & rally was disappointing. Bulls fell short of expectations. Buying should continue today also.
If rally continues, then it can touch 992.00 level during intra-day trades. It should close above this level for further uptrend.
If profit booking starts, then expect a surprise fall up to 949.00 level and have caution.
INFOSYSTCH (NSE Cash)
Rallied on yesterday & rally was disappointing. Bulls fell short of expectations. Buying should continue today also.
If rally continues, then it can touch 2897.40 level during intra-day trades. It should close above this level for further uptrend.
If profit booking starts, then expect a surprise fall up to 2733.70 level and have caution.
SBIN (NSE Cash)
Rallied on yesterday & rally was disappointing. Bulls fell short of expectations. Buying should continue today also.
If rally continues, then it can touch 2111.65 level during intra-day trades. It should close above this level for further uptrend.
If profit booking starts, then expect a surprise fall up to 1948.00 level and have caution.
HINDCOPPER (NSE Cash)
Fallen on yesterday & it was a surprise. Bulls fell short of expectations & that too, this scrip closed negatively. Selling should be considered as a speculative selling too.
If fall continues, then it can tumble up to 440.45 level during intra-day trades. It should close below this level for further downtrend.
If short covering starts, then it can zoom up to 591.75 level by non-stop and have caution.
OPTIONS (NSE):
NIFTY 5200 CALL OPTION
Rallied on yesterday & Bulls fell short of expectations. Uptrend should continue & Rally should be considered as a speculative buying too.
If rally continues, then it can zoom up to 111.80 level by non-stop.
If profit booking starts, then it can tumble up to 55.30 level by non-stop and have caution.
TATASTEEL 640 CALL OPTION
Rallied on yesterday & Bulls fell short of expectations. Uptrend should continue & Rally should be considered as a speculative buying too.
If rally continues, then it can zoom up to 14.25 level by non-stop.
If profit booking starts, then it can tumble up to 5.55 level by non-stop and have caution.
STOCK FUTURES (NSE):
WELGUJ FUTURES
Rallied on yesterday & Bulls beaten expectations. Uptrend should continue today also & Rally should be considered as a speculative rally.
If rally continues, then it can touch 294.60 level during intra-day trades. It should close this level for further uptrend.
If profit booking starts, then expect a surprise fall up to 269.80 level and have caution.
POLARIS FUTURES (4 Days Holding)
Bullish Trend expected in next 4 trading days & Bulls should not get panic at lower levels. Uptrend should continue today & Bulls should not get panic today.
Buy with a Stop Loss of 165.65 level with a Target of 185.05 level today. It may zoom even up to 197.60 level in next 4 trading days.
Stop Loss for next 4 trading days can be kept at 153.70 level.
INVESTMENT VIEW
Heidelberg Cement-Undervalued, should trade upto Rs 100-Rs 125
BSE 500292; CMP Rs 52.10
Heidelberg Cement- Substantial Undervaluation
At CMP of INR 52.10, the stock is trading at an EV/tonne of USD 41 (on current capacity of 3.1 mtpa), which is a steep discount to large-sized pan India companies (which are trading at USD 110-135/tonne) and other similar sized companies within the sector.
Vision to reach 15-20 mtpa by 2014
The company aims to achieve 15-20 mtpa of capacity by 2014. It is looking at both organic growth and inorganic opportunities to achieve this target. India remains a focus market for Heidelberg (Global); hence, the parent is likely to continue to fund its subsidiary's domestic expansion initiatives.
Capacity to expand to 6.0 mtpa from 3.1 mtpa currently by March 2012
HCIL currently has a capacity of 3.1 mtpa and is working on a 2.9 mtpa brownfield expansion that is likely to come on-stream by March 2012. Total expansion cost is pegged at ~INR 9.0-9.5 bn, which is estimated to be funded through a mix of internal accruals and debt.
The company is also considering a few options for acquisitions in West India for clinker support (at present, it purchases clinker for the ~1 mtpa Raigad grinding unit in Maharashtra).
Accumulated losses wiped off; net cash at INR 4.9 bn
Heidelberg (Global) infused ~INR 3.6 bn in August 2006 in HCIL (erstwhile Mysore Cement; MCL), which helped the company repay total outstanding debt of ~INR 3 bn.
During Q1CY09, HCIL had absorbed all its accumulated losses (at the time of acquisition, MCL's unabsorbed losses stood at INR 3.5 bn). As on December 31,2009, HCIL had net cash of INR 4.9 bn.
Favourable regional exposure with 70% of current sales in central India
HCIL sells ~70% of its output in central India (55% - UP, 35% - MP) that has witnessed healthy YTD demand growth (UP – 20.8%, MP – 13.7%). Demand supply balance is likely to be less impacted in central and eastern India vis-à-vis South and West.
(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 | 18-Mar-2010 | 2458.17 | 1973.5 | 484.67 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 18-Mar-2010 | 1152.47 | 1205.62 | -53.15 |
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."
--
Arvind Parekh
+ 91 98432 32381
+ 91 98432 32381
