Strong & Weak Stocks
This is list of 10 strong Stocks:
Indian Bank, DCB, LITL, Bank of India, Bank of Baroda, Andhra Bank, Yes Bank, ALBK, Power Grid & GE Shiping.
And this is list of 10 Weak Stocks
Balrampur Chini, Renuka, Triveni, Bajaj Hind, Tech Mahindra, HDIL, Maruti, McDowell, Sail & Suzlon.
The daily trend of nifty is in downtrend
Derivatives EOD Report http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-28-Apr-2010.htm
Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-29Apr2010.htm
IPO Release Report on Jaypee http://www.indiabulls.com/securities/mailermis/special-reports/IPO_Note_Jaypee_Infratech_April_2010.htm
IPO Release Report on Satluj http://www.indiabulls.com/securities/mailermis/special-reports/IPO_Note_Satluj_Jal_Vidyut_Nigam_Ltd_April_2010.htm
 Corporate News Headline | |||||||||||||||||||||||||||||||||||||||||||||
| • | Bharti Airtel posted its first fall in earnings in three years as cut-throat competition dented margins leading to an 8% drop in net profit to Rs. 20.60 bn in the fourth quarter. (BS) | ||||||||||||||||||||||||||||||||||||||||||||
| • | Punj Lloyd said it has won a construction contract for the 6-million tonnes per year Cuddalore refinery in south India. The firm did not disclose the value of the order. (BS) | ||||||||||||||||||||||||||||||||||||||||||||
| • | Marico said its consolidated net profit rose by 15% to Rs. 510 mn for the quarter ended March 31, 2010. Total income rose to Rs. 6.07 bn for the quarter ended March 2010 from Rs. 5.69 bn in the same period in the previous fiscal. (BS) | ||||||||||||||||||||||||||||||||||||||||||||
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| Economic and Political Headline | |||||||||||||||||||||||||||||||||||||||||||||
| • | India's worryingly high inflation should ease as there are indications of a cooling in high food prices that have been driving it, Finance Minister said. (BS) | ||||||||||||||||||||||||||||||||||||||||||||
| • | South Africa's inflation rate fell in March to 5.1%, its lowest in almost four years, as a stronger rand and a bumper harvest helped to curb prices. Inflation slowed from 5.7% in February, reaching its lowest since July 2006, the Pretoria-based statistics office said. (Bloomberg) | ||||||||||||||||||||||||||||||||||||||||||||
| • | Federal Reserve officials restated their intention to keep the benchmark interest rate near zero for an "extended period" and saw signs of life in the job market. "The labor market is beginning to improve," the Federal Open Market Committee said in a statement, after last month saying it was "stabilizing." Officials also said growth in household spending has "picked up recently." (Bloomberg) SPOT / CASH INDEX LEVELS TODAY
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NIFTY FUTURES (F & O):
Above 5228 level, expect short covering up to 5257-5259 zone and thereafter expect a jump up to 5287-5289 zone by non-stop.
Support at 5207 level. Below this level, selling may continue up to 5188 level by non-stop.
Below 5156-5158 zone, expect panic up to 5127-5129 zone by non-stop.
On Positive Side, cross above 5356-5358 zone can take it up to 5386-5388 zone by non-stop. Supply expected at around this zone and have caution.
Short-Term Investors:
Bearish Trend.
Down Side Target at 5049.20.
Stop Loss at 5346.80.
STOCK FUTURES (NSE):
DABUR FUTURES
FMCG firm Dabur yesterday said it was looking at further hiking the prices of some of its products between 3-5 per cent to offset the surging input costs.
"We are watching right now ... If there is no ease in the inflation, we will look at increasing the prices of some of the categories," Dabur India Chief Executive Officer Sunil Duggal told PTI.
Asked by how much the company is likely to increase rates, he said the price change could vary between 3 per cent and 5 per cent.
Technicals: DABUR FUTURES
Went up yesterday & in line with the expectations. But do not get excited & it was speculative rally too.
If continue to rally, then expect a jump up to 190.90 level by non-stop. If goes down against expectations, then expect slide up to 174.50 level by non-stop.
BANKBARODA MAY FUTURES (5 Trading Day's Holding)
Bank of Baroda on Wednesday reported 20.41% growth in its net profit to Rs 906.28 crore in the fourth quarter of FY10, as against Rs 752.69 crore achieved in the corresponding quarter of the previous fiscal. The bank has declared a dividend of 150% for the year FY10.
The bank's total income rose to Rs 5,120.7 crore during the period as compared with Rs 4,992.41 crore recorded in the same period a year ago. Interest income grew 5.2% during the period to Rs 4,353.84 crore as against Rs 4138.78 crore.
However, other income of the bank dipped 10.16% to Rs 766.89 crore from Rs 853.63 crore as the bank's profit on sale of investment fell Rs 200 crore during the period. Net NPA of the bank declined marginally to 0.34% from 0.31%.
Technicals: BANKBARODA MAY FUTURES (5 Trading Day's Holding)
Real Buying taken place in last 5 trading days.
I am expecting further uptrend up to 743.00 level. If goes down against expectations, then expect slide up to 632.00 level and have caution. Risk is too high.
OPTIONS (NSE):
NIFTY 5200 PUT OPTION
Yesterday's rally was surprising. Technically Real Buying too.
I am expecting further uptrend & you can expect uptrend up to 34.45 level by non-stop. If goes down against expectations, then expect slide up to 6.70 level and have caution.
HINDALCO 180 PUT OPTION
Yesterday's rally was surprising. Technically Real Buying too.
I am expecting further uptrend & you can expect uptrend up to 4.10 level by non-stop. If goes down against expectations, then expect slide up to 1.50 level and have caution.
Equity:
TECHM (NSE Cash)
AT&T Inc. (T) Wednesday sold its entire 7% stake in Tech Mahindra Ltd. (532775.BY) through two block deals for about INR6.55 billion ($147 million), leaving analysts worried that this could hurt outsourcing business from the U.S. telecommunications major to the Indian software services provider.
The stake sale comes just a month after AT&T International Inc., a unit of AT&T, bought an 8.07% stake, or about 9.9 million shares, in Tech Mahindra from Mahindra-BT Investment Co. (Mauritius) Ltd. for $34.6 million as part of a 2005 agreement with the Indian company.
AT&T sold just over 1% stake earlier this month and the balance 8.6 million shares Wednesday at about INR762 apiece, two people familiar with the matter told Dow Jones Newswires.
"The buyers were more than one, but LIC (Life Insurance Corp.) bought 88% of the stake sold," one of the persons said, but didn't name the other buyers.
According to data on the Bombay Stock Exchange Web site, AT&T International sold 4.3 million shares and state-run LIC bought 3.76 million shares. The BSE data didn't give details of other buyers.
An equal number of shares were sold on the National Stock Exchange, according to FactSet data.
AT&T is Tech Mahindra's second-largest client after BT Group PLC, contributing 18% to 20% of total revenue. BT Group owns 30.83% of the Indian company.
"Our understanding is that AT&T was giving business to the company (Tech Mahindra) because of the stake. Now, Tech Mahindra's ability to win new business from AT&T in the future in a competitive market will be a concern," a Mumbai-based analyst, who didn't wish to be named, said.
Tech Mahindra competes with larger peers such as Infosys Technologies Ltd., Wipro Ltd. and Tata Consultancy Services Ltd. for contracts from AT&T and other global companies.
Technicals: TECHM (NSE Cash)
Fall expected on yesterday & fallen in line with the expectations. Fall may be restricted up to 750.30 level & if does not break & close this level then expect rebound too.
If rebounds, then expect short covering up to 797.80 level.
ICICIBANK (NSE Cash)
ICICI Bank, a leading private sector bank in India, has been ranked 45th among the top 100 most valuable global brands according to the BrandZ Top 100 Global Brands Report, becoming the first and only Indian brand to feature in this list, said an official release on Wednesday.
According to Chanda Kochhar, MD & CEO, ICICI Bank, "The BrandZ report is of special significance to us as it is a global recognition of the value of the ICICI brand based on customers' perceptions about the brand. It reaffirms our commitment towards deepening our relationship with our customers. "
Developed by the leading research agency Millward Brown, the BrandZ Top 100 Most Valuable Global Brands ranking is now in its fifth year.
It is the only study to combine measures of brand equity based on interviews with over a million consumers globally about thousands of global "consumer facing" and business-to-business brands with a rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Datamonitor) to separate the value that brand plays in driving business revenue and market capitalisation.
Technicals:ICICI BANK
Fall expected on yesterday & fallen in line with the expectations.
Fall may continue up to 883.85 level and have caution. If rebounds, then expect short covering up to 940.95 level. It looks that, risk is on higher side.
INVESTMENT VIEW
Welspun Gujarat
Higher realizations boost profit; maintain Buy
Pipe margin better than expected. Welspun's consolidated 4Q net profit at Rs1.7bn was higher than our expectation on higher realisation on pipes, amidst lower-than-expected sales volume. We expect accretion to its order book to accelerate going forward, given strong and growing international pipe demand.
Expect order book to strengthen. Welspun had an order book of Rs64.3bn at end-Mar '10. Though the order book might look lower in value terms, the tonnage at 790 kMT is comparable, and implies that earnings coverage is higher than that implied by the headline number.
Welspun planning to go closer to emerging demand centres. At the analyst meet, management reiterated that they plan to grow their presence near demand centres and are exploring various opportunities including the Middle East .
Capacity ramp-up, backward integration to boost earnings. Welspun is increasing pipe capacity from 1.5m tons now to 2.0m by FY12, with 0.4m tons addition expected by end FY11. In addition, its backward-integration strategy (plate-cum-coil mill) is likely to lead to a rise in margins with the commissioning of coil mills in 4Q. We estimate earnings CAGR of 19% over FY10-12e.
(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 | 28-Apr-2010 | 2566.17 | 2697.3 | -131.13 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 28-Apr-2010 | 1894.25 | 1570.15 | 324.1 |
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
+ 91 98432 32381
