Strong Stocks
This is list of 10 Strong Stocks
EKC, Glaxo, Dena Bank, Ashok Ley, ABB, Tata Tea, UCO Bank, PFC, Titan & Vijaya Bank.
Weak Stocks
This is the list of 10 Weak Stocks
:Aban Off shore, RNRL, Punj Lloyd, Educomp, Tata Steel, MTNL, Bhushan Steel, Renuka, RCOM & JP Associates.
THE DAILY TREND OF NIFTY IS IN DOWN TREND
SPOT INDEX LEVELS TODAY
 | 5059.90 | ( -0.66 %) | -33.60 |  |
| 1 | 2 | 3 | ||
| Resistance | 5114.22 | 5168.53 | 5242.52 | |
| Support | 4985.92 | 4911.93 | 4857.62 | |
 | 16835.56 | ( -0.94 %) | -159.04 | | |
| 1 | 2 | 3 | |||
| Resistance | 17014.65 | 17193.75 | 17425.57 | ||
| Support | 16603.73 | 16371.91 | 16192.81 | ||
______________________________________________
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 17-May-2010 | 1653 | 2877.29 | -1224.29 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 17-May-2010 | 1406.98 | 1025.09 | 381.89 |
NIFTY FUTURES (F & O):
Above 5085 level, expect short covering up to 5099-5101 zone and thereafter expect a jump up to 5141-5143 zone by non-stop.
Support at 5037 & 5048 levels. Below these levels, selling may continue up to 5021-5023 zone and thereafter slide may continue up to 4978-4980 zone by non-stop.
Break below 4936-4938 zone, can create panic up to 4894-4896 zone by non-stop.
On Positive Side, cross above 5155-5157 zone can take it up to 5197-5199 zone by non-stop. Supply expected at around this zone and have caution.
Short-Term Investors:
Bearish Trend.
Down Side Target at 4706.40.
Stop Loss at 5218.00.
STOCK FUTURES (NSE):
ABAN FUTURES
The Aban Offshore scrip crashed on Friday after news broke out that its drillship,
Aban Pearl, had sunk in Venezuelan waters.
The drillship, its most lucrative asset, was contracted till January 2015 and earned
$358,000 per day. While the loss of this revenue flow can put a great pressure on
Aban Offshore's profitability and cashflows, there may be a possibility of the
company resuming the contract with one of its idle assets. The 32-year old vessel
was recently refurbished and was working on its maiden contract, post refurbishment.
The market is, however, assuming a worst-case scenario, where the company loses out on the contract and may take a big hit on its annual profits. The loss of profit from this single contract is estimated to shave off between Rs 49 and Rs 67 per share from the company's EPS estimated for FY11, according to various analysts.
Considering the average analyst consensus, which has pegged the company's FY11 EPS around Rs 210, the fall could be as high as 30%. Aban Offshore is likely to recover the full cost of the sunken vessel from insurance companies, which is estimated around $235 million — although the process may take a long time. This may enable the company to repay a part of its outstanding debt, which stood at $3.2 billion as on March 31, 2009.
The company has two idle vessels — Aban Abraham and Deep Venture — that could resume the contract on which Pearl was working. Such an arrangement can enable the company to plug the hole in its earnings created by this accident. However, with no details forthcoming from the company, this possibility remains speculative.
The unfortunate incident is a major blow for Aban Offshore as it had recently undertaken a major debt restructuring exercise and increased cash flows through new contracts. The company had recently infused nearly Rs 700 crore of equity and recast its debt obligations to spread out over 10 years, prompting industry analysts to take a favourable view on it.
Technicals:
Yesterday's fall was not a surprise. Do not worry about this fall & Bears manipulated.
Bear's eyeing a Target of 712.30 level on down side. That is a worry & too far on down side.
On Positive Side, if Start Recovers then expect a jump up to 867.80 level on upper side. Huge risk for short sellers and have caution.
KFA FUTURES (5 Trading Day's Holding)
State-run IDBI Bank has asked Kingfisher Airlines to repay loans worth Rs 900 crore
after the latter failed to stick to its repayment schedule.
IDBI Bank has recalled short-term loans worth Rs 150 crore and Rs 750 crore in long -term loans and asked the carrier to do so by the middle of this week.
The lender might invoke guarantees by holding firm United Breweries Holding and by the promoter Vijay Mallya if Kingfisher fails to make payment by the stipulated time, a letter from the bank said.
Technicals:
Selling taken place in last 5 trading days. Real Selling too.
Bear's eyeing a Target of 43.40 level on down side. Really shocking & will you sell for this small profit.
On Positive Side, if Start Recovers then expect a jump up to 48.50 level on upper side. Huge risk for short sellers too.
OPTIONS (NSE):
NIFTY 4900 PUT OPTION
Yesterday's rally was not a surprise. Do not get excited & Bulls rigged.
Bull's eyeing a Target of 113.25 level on upper side. It looks that, target is too far on upper side.
On Negative Side, if Profit Booking Starts then expect a slide up to 26.10 level and have caution.
RELIANCE 1040 CALL OPTION
Yesterday's fall was not a surprise. Real Selling too.
Bear's eyeing a Target of 1.75 level on down side. Huge down side risk is possible and have caution.
On Positive Side, if Start Recovers then expect a jump up to 18.45 level by non- stop.
Equity:
LT (NSE Cash)
Larsen & Toubro Ltd., India's biggest engineering company, reported a better-than- expected 44 percent gain in fourth-quarter profit as orders increased and raw material costs declined.
Net income in the three months ended March 31 rose to 14.4 billion rupees ($315 million) from 9.99 billion rupees a year earlier, Mumbai-based Larsen said. Profit beat the 11.6 billion rupee median estimate of 20 analysts surveyed by Bloomberg.
Investors will be paid a dividend of 12.5 rupees a share, the company said in a statement. Sales gained 28 percent to 133.7 billion rupees.
Larsen is benefiting as the government builds more roads, ports, bridges and power plants and as companies start new projects in a recovering global economy. India plans to spend 1.74 trillion rupees to enhance infrastructure this fiscal year.
The company, which had contracts worth 1 trillion rupees as of March 31, expects orders to increase by 25 percent this financial year, Chairman A. M. Naik told reporters yesterday in Mumbai. Orders are expected from oil and gas, construction, power and fertilizer companies, he said.
Larsen also aims to increase revenue by as much as 20 percent this financial year, he said. The company's full-year operating profit margin widened 1.4 percentage points to 13.1 percent, according to the statement. Engineering giant Larsen & Toubro today said its two group companies, L&T Finance
and L&T Infotech, are likely to enter the capital market with initial public offers. While L&T Finance may launch its IPO in the latter part of this year, L&T Infotech is likely to come out with initial share sale offer in the next fiscal.
"We are planning to float the initial public offering (IPO) of L&T Finance in the second-half of this year. We are likely to schedule L&T Infotech's IPO in FY12," L&T Chairman and Managing Director A M Naik told reporters here.
"We believe the move will unlock a lot of value for our shareholders," Naik said.
The company is keenly watching the market conditions and would launch IPOs when it is sure that it would get the right market valuations, he said.
The conglomerate also plans to float an infrastructure fund of $250 million in the Next 3-4-months, he said.
Technicals:
Yesterday's rally was a surprise. Real Buying too.
Bull's eyeing a Target of 1766.40 level on upper side. Too far on upper side & Bulls will have to work hard.
On Negative Side, if Profit Booking Starts then expect a slide up to 1475.10 level on down side. Huge risk involved.
DENABANK (NSE Cash)
Dena Bank, which had a lower PCR earlier, managed to reach the 70 per cent mark, thanks to technical write-offs and a lower growth in gross non-performing assets
(NPAs).
Technicals:
Yesterday's rally was not a surprise. Do not get excited & Bulls rigged.
Bull's eyeing a Target of 103.45 level on upper side. Over ambitious target from current levels.
On Negative Side, if Profit Booking Starts then expect a slide up to 85.55 level on down side. Huge risk involved.
SUJANATOW (NSE Cash)
The maker of lattice towers climbed yesterday after its quarterly profit, excluding a one-time cost, surged 87 percent to 97 million rupees from a year earlier.
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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
