Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-20Apr2010.htm
Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-19-Apr-2010.htm
 Corporate News Headline | |
| • | BHEL has bagged a Rs. 63 bn order for setting up an energy-efficient power plant in Karnataka. (BS) |
| • | ABB Limited said it has won orders worth around Rs. 1.45 bn from the Bharathiya Rail Bijlee Company Limited. (BS) |
| • | Reliance Industries plans to shutdown 100,000 barrels per day vacuum gas oil hydrotreater at its old refinery for about a month later this week, an industry source said. (BS) |
 | |
| Economic and Political Headline | |
| • | Direct tax collections fell Rs. 120.00 bn short of the Rs 3.87 tn target last fiscal, largely owing to lower realization from corporate tax payers. The collection from corporate income tax and personal income tax, however, was 13.1% up from the 2008-09 level. (BS) |
| • | The index of US leading indicators rose in March by the most in 10 months, a sign the economy will keep growing into the second half of the year. The 1.4% increase in the New York-based Conference Board's measure of the outlook for three to six months was more than anticipated and followed a revised 0.4% gain in February. (Bloomberg) |
| • | Japan's household sentiment rose to the highest level in more than two years in March, adding to evidence that households are reaping the benefits of the nation's export-led rebound. The confidence index climbed to 40.9 last month from 39.8 in February, the highest since October 2007, the Cabinet Office said in Tokyo. (Bloomberg) |
SPOT/CASH INDEX LEVELS TODAY
 | 5203.65 | ( -1.12 %) | -58.95 |  |
| 1 | 2 | 3 | ||
| Resistance | 5268.17 | 5332.68 | 5386.32 | |
| Support | 5150.02 | 5096.38 | 5031.87 | |
 | 17400.68 | ( -1.08 %) | -190.50 | | |
| 1 | 2 | 3 | |||
| Resistance | 17564.76 | 17728.84 | 17872.82 | ||
| Support | 17256.70 | 17112.72 | 16948.64 | ||
Strong & Weak Stocks
This is list of 10 strong stocks:
Pir Health, Titan, Zeel, Sintex, Allahabad Bank, Patni, Indusind Bank, Bharat Forg, TV-18 & Glaxo.
And this is list of 10 Weak stocks:
Triveni, Renuka, McDowell, BEL, Punj Llyod, Sail Ltd, Bajaj Hind, ICSA, India Info & Educomp.
The daily trend of nifty is in downtrend
NIFTY FUTURES (F & O):
Above 5220 level, expect short covering up to 5244-5246 zone and thereafter expect a
jump up to 5268-5270 zone by non-stop.
Support at 5198-5200 zone. Below this zone, selling may continue up to 5197 level and thereafter slide may continue up to 5184 level by non-stop.
Below 5158-5160 zone, expect panic up to 5134-5136 zone by non-stop.
On Positive Side, cross above 5308-5310 zone can take it up to 5332-5334 zone by non-stop. Supply expected at around this zone and have caution.
Short-Term Investors:
Bearish Trend.
Down Side Target at 4947.10.
Stop Loss at 5377.50.
NIFTY FUTURES (Weekly & Valid up to 23.04.2010)
Last Week's fall was speculative too. Do not worry about this fall.
If Fall Continues, then slide may continue up to 5112.20 level by non-stop and have caution.
If Short Covering Starts, then it can zoom up to 5377.80 level by non-stop.
STOCK FUTURES (NSE):
GMRINFRA FUTURES:
Yesterday's Selling should be considered as a Real Selling too. If fall continues, then slide may continue up to 56.25 level by non-stop. If short covering starts, then it can zoom up to 62.45 level and have caution.
JSWSTEEL FUTURES (5 Day's Holding):
Yesterday's selling should be considered as a Speculative Selling. If fall continues, then slide may continue up to 1135.50 level by non-stop. If short covering starts, then it can zoom up to 1322.95 level and have caution.
OPTIONS (NSE):
NIFTY 5200 PUT OPTION:
Yesterday's rally should be considered as a speculative rally too. Do not get excited. If rally continues, then rally may continue up to 93.80 level by non-stop. If Profit Booking starts, then expect slide up to 49.15 level by non-stop and have caution.
RENUKA 65 PUT OPTION:
Yesterday's rally should be considered as a Real Buying too. If rally continues, then rally may continue up to 2.70 level
by non-stop. If Profit Booking starts, then expect slide up to 0.55 level by non-stop and have caution.
Equity:
UNITECH (NSE Cash)
Unitech Group, which runs the country's second-largest developer, Unitech Ltd, launched a Rs 300-crore venture capital fund to raise funds for its slum redevelopment projects in Mumbai, a top group executive said.
Called Mumbai Redevelopment Fund I, the fund will have an initial target of Rs 200 crore and a greenshoe option of Rs 100 crore, the executive said. The group had promised a fixed coupon rate of eight per cent and overall returns of 20 per cent to investors, he said.
Technicals:
Yesterday's selling should be considered as a speculative selling. If fall continues, then slide may continue up to 76.85 level and have caution. If Short Covering Starts, then this scrip can zoom up to 81.95 level by non-stop.
TCS (NSE Cash)
India's Tata Consultancy Services (TCS.BO) posted its best quarterly growth in three years on a rebound in technology spending and expects fees to rise this year, galvanising hopes of a recovery in the sector.
India's top software services exporter said it was seeing demand for outsourcing growth across its key industrial sectors including financial services, retail and manufacturing, but a rising rupee was a concern.
"It's been a good quarter which marks the turning around of all the verticals we operate in," CEO N. Chandrasekaran told a news conference on Monday.
Technicals:
Yesterday's selling should be considered as a speculative selling. If fall continues, then slide may continue up to 783.75 level and have caution. If Short Covering Starts, then this scrip can zoom up to 834.25 level by non-stop.
INVESTMENT VIEW
Parekh Aluminex BSE 523204
p-;04
Company manufacturers Aluminum foil containers & Rolls, which are used in hygienic food products packaging. Its facilities are fully automatic and meets health / safety standards of European nations.
· With increasing awareness of masses about cleanliness and hygiene of food consumed during out of home situations, the demand for this kind of packaging is just zooming up.
· Company is trebling it capacity at the cost of Rs 240 Crs, which is completing in April'10 and thus growth potential is huge in coming years.
· Co. is also expanding the range of products to cater to the needs of different set of consumers and focusing on brand building, which will improve realizations and thus margins.
· Company's fundamentals are quite robust, with estimated EPS for current year, over Rs 37-38/- and Cash EPS 55-56. With present BV of Rs 205, and estimated BV of Rs 240 after March'10 results.
The expansion of Rs 240 Crs which is almost complete was funded earlier in 2007-08. At that time company raised about Rs 125 Crs through QIP route [placement to select institutional investors in Jan'08 at Rs 225 to 260 around]. So whereas most of the equity dilution has already happened, the fruits of this mega expansion [which will triple the capacity] will be visible from 2010-11.
The management confidence in outlook of company is visible from sustained rise in promoter's holding from 28.96% in March 09 to around 37% as of today. [after latest 3.09% stake acquisition in April'10].
Further even at current price you are getting shares at about Rs 100/- lower then QIP investors, who bought in Jan'08.
Looking to the robust demand of these products, significant ramp up in capacities and strong fundamentals, the valuations are looking too attractive.
(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 | 19-Apr-2010 | 1606.27 | 2361.78 | -755.51 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 19-Apr-2010 | 1380 | 810.36 | 569.64 |
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
