 Corporate News Headline | |
| • | Lanco Infratech reported a whopping 68% jump in its profit after taxes, at Rs. 1.95 bn for the quarter ended June 30. The company posted a profit after tax of Rs. 1.16 bn in the corresponding quarter of the previous fiscal. (BS) |
| • | State Bank of India said it had raised its benchmark prime lending rate by 50 basis points to 12.25% effective Tuesday. (BS) |
| • | Tata Motors Ltd said its global vehicle sales in July rose 36% from a year earlier to 90,646 units. Jaguar and Land Rover sales in the month rose 30% to 19,386 units. (BS) |
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| Economic and Political Headline | |
| • | India's annual headline inflation slowed more sharply than expected to single digits after five months. The wholesale price index rose 9.97% from a year earlier. Data showed annual food inflation rate fell to 10.29% in July from 14.60% in the prior month, with prices of vegetables and sugar falling on the month. Manufacturing inflation cooled to 6.15% from 6.66% a month ago. Fuel inflation eased to 14.29% in the same month from 14.32% in June, on a high statistical base. (BS) |
| • | Builders in the US unexpectedly turned pessimistic in August, a sign the expiration of a government tax credit will keep depressing home construction. The National Association of Home Builders/Wells Fargo confidence index dropped to 13 this month, the lowest level since March 2009, from 14 in July, data from the group showed. (Bloomberg) |
| • | Japan's economy grew at less than a fifth of the pace economists estimated last quarter, pushing it into third place behind the US and China and adding to evidence the global recovery is faltering. Gross domestic product rose an annualized 0.4% in the three months ended June 30, the Cabinet Office said in Tokyo. (Bloomberg) |
This is list of 10 Strong Stocks:
Weak Stocks
This is the list of 10 Weak Stocks:
Daily trend of the market is up
Market is moving in a very small range between 5350 and 5500. A break either side will give further direction to the market. So it is better to remain cautious. And as the trend is still up, the readers who had created long positions in Nifty on 15th June may go on holding the longs.
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| *LTP stands for Last Traded Price as on Monday, August 16, 2010 4:04:09 PM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
#1R1 stands for Resistance level 1 @1S1 stands for Support level 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| #2R2 stands for Resistance level 2 @2S2 stands for Support level 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
#3R3 stands for Resistance level 3 @3S3 stands for Support level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The levels given above are with respect to previous closing price on the NSE / BSE. |
Jaihind Projects Ltd. (JPL), incorporated in 1985, is a growing EPC player mainly focusing on hydrocarbons, water and infrastructure segments. The Company has vast experience in the pipeline construction segment and has laid more than 14,000 kms of pipeline of which more than 5000 kms of pipeline is in the oil and gas space. The Company also has experience in city gas distribution projects.
Healthy order-book position: JPL has a healthy order-book position of ~Rs. 750 Crs, which is ~1.8 x FY10 revenue, thus providing strong revenue visibility over the next few years. These orders are executable over a period of 18-24 months. Of the total order-book position, ~47% is from Water segment while ~40% is from Hydrocarbon segment. Apart from above, the Company also has L1 position contracts worth Rs. 60 Crs and its outstanding bids are to the tune of almost Rs. 800 Crs. Also the Company would be bidding for Rs.1000 Crs pipeline project between Dabhol – Bangalore.
Huge fleet size: JPL has one of the largest pipeline equipment fleets in the country and has over the years invested a sizable amount in building up its equipment fleet comprising of key equipments like large cranes, excavators, HDD (Horizontal Directional Drilling) machines etc. Currently the Company has 5 spreads of equipments translating into a capacity to execute 750 km of pipeline construction projects. Owning such a large equipment fleet not only gives JPL an edge over other players but also enables timely execution of contracts. Also sizable equipment base is a pre-requisite for participation in tenders.
Strong Clientele base: JPL has an impressive clientele list and has executed projects for GAIL, ONGC, HPCL, IOCL, BPCL, Reliance, Cairn Energy, GSPL, Mahanagar Gas, Adani etc. The Company caters to both, government and private sector and has set high standards in meeting the special needs and demands of every project.
Technicals: Daily Chart not looking good & Trend should be choppy. Buy for 5 days. SL at 260.95. Target at 322.95.
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| Buy / Sell (Aug 16, 2010) | |||||||
| Buy | Sell | Net | |||||
| FII | 2753.66 | 2353.65 | + 400.01 | ||||
| DII | 1168.44 | 1602.35 | - 433.91 | ||||
| Market Snapshot
Weekly Open Interest Gainers
Weekly Open Interest Losers
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On 15 Minute intraday chart Nifty has formed ascending triangle pattern which is bullish breakout pattern if upper trend line breaks then Nifty could surge to new 52 week high and can test 5,540-5,560 mark else probability of correction upto 5,325 (50 Day SMA) level cannot rule out. Momentum technical indicators are currently giving mix signals. On end-of-day chart stochastic and RSI are currently trading in neutral territory on the brink of showing positive divergence suggesting an upward move but another momentum technical indicator MACD is currently trading in positive zone on the brink of showing negative divergence indicating correction. Derivative Outlook Nifty ended on positive note at 5,452.10 marks gaining 0.24% during the week. The Nifty August futures ended at 5,458.35 (LTP) with a premium of 6.25 points. If we look at the derivatives data we could see that Nifty future prices ended in the positive territory along with incline in open interest as well a incline in the cost of carry, this is an indication of long position is being built up at lower level and Nifty may take upside of 100 points in coming week. Nifty may face resistance at higher levels of 5,520 to 5,550 whereas on the downside support is seen at 5,300-5,350. Sector-wise Outlook This week, buying is expected in IT. Power, FMCG and Pharma sectors from lower supports of 5,400 levels. Short positions can be accumulated in Banking, Realty and Consumer Durable stocks if the Nifty fails to sustain above 5,400 levels. |
| Derivative Strategies for the week:
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*Disclosure: I don't have any positions in the above said scrips & NIFTY FUTURES.
Arvind Parekh
+ 91 98432 32381
