Market Outlook 23rd April 2010

Strong & Weak Stocks

This is list of 10 strong stocks

DCB, Pir Health, Zeel, Polaris, Uco Bank, Sintex, Nagarjuna Const, Indusind Bank, GE Shiping & Allahabad Bank.  

And this is list of 10 Weak Stocks

Triveni, Renuka, Bajaj Hind, McDowell, BEL, Punj Lloyd, Uniphos, Educomp, ONGC & Tech Mahindra.

The daily trend of nifty is in downtrend 

Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-23Apr2010.htm

SPOT / CASH INDEX LEVELS TODAY

	5269.35	( 0.47 %)	24.45
		1	2	3
Resistance		5327.07	5384.78	5437.77
Support		5216.37	5163.38	5105.67

	17573.99		( 0.58 %)	101.43
			1	2	3
Resistance			17765.55	17957.10	18135.87
Support			17395.23	17216.46	17024.91

Corporate News Headline
•	ACC's consolidated net profit for the quarter ended March 31, 2010 registered a marginal fall as its units faced dispatch constraints due to the absence of railway wagons. According to a stock exchange filing, the consoidated net profit for the quarter ended March 31, 2010, was pegged at Rs. 3.93 bn, down 1.6% compared to the corresponding quarter of the previous fiscal. (BS)
•	Bharat Forge said it has launched its USD 150 mn private placement issue on April 21. (BS)
•	NTPC is likely to sign contracts next week to buy an additional 1.51 million cubic meters a day of gas from Reliance Industries at government-approved price of USD 4.2 per mmBtu. (BS)
Economic and Political Headline
•	India's annual food and fuel inflation quickened in the week to April 10. The food price index rose 17.65% in the 12 months to April 10, marginally higher than an annual rise of 17.22% in the previous week. The fuel price index rose 12.45% in the 12 months to April 10, a tad higher than an annual rise of 12.43% in the previous week. (BS)
•	European consumer confidence improved to the highest in almost two years in April, suggesting an export-led recovery may start to feed into household spending. An index of consumer sentiment in the 16-nation euro region rose to minus 15.2 from a revised minus 17.3 in March, the European Commission said in an initial estimate. (Bloomberg)
•	Sales of US previously owned homes rose in March for the first time in four months as buyers took advantage of a government tax credit and the weather improved. Purchases climbed 6.8% to a 5.35 million annual rate, from a 5.01 million pace in February, figures from the National Association of Realtors showed in Washington. (Bloomberg)

NIFTY FUTURES (F & O): 

Above 5289 level, rally may continue up to 5305-5307 zone and thereafter expect a jump up to 5336-5338 zone by non-stop. 

Support at 5238 & 5255 levels. Below these levels, expect profit booking up to 5189-5191 zone and thereafter slide may continue up to 5158-5160 zone by non-stop. 

Buy if touches 5143-5145 zone. Stop Loss at 5112-5114 zone. 

On Positive Side, cross above 5352-5354 zone can take it up to 5383-5385 zone by non-stop. If crosses & sustains this zone then uptrend may continue.

Short-Term Investors: 

Bullish Trend. 

Up Side Target at 5367.70. 

Stop Loss at 5162.30.

STOCK FUTURES (NSE):

UCOBANK FUTURES: 

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 68.35 level by non-stop. If Profit Booking

Starts, then expect slide up to 59.65 level and have caution.

CHAMBLFERT FUTURES (5 Day's Holding): 

Real Buying taken place in last 5 Trading Days. If rally continues, then it can zoom up to 68.05 level by non-stop. If Profit Booking Starts, then expect slide up to 60.10 level and have caution.

OPTIONS (NSE):

NIFTY 5300 CALL OPTION: 

Yesterday's rally was speculative too. Do not get excited too. If rally continues, then it can zoom up to 73.95 level by non-stop. If Profit Booking Starts, then expect slide up to 18.00 level and have caution.

CHAMBLFERT 65 CALL OPTION: 

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 1.55 level by

non-stop. If Profit Booking Starts, then expect slide up to 0.45 level and have caution.

Equity:

SAIL (NSE Cash) 

State-owned SAIL is rationalising its 1.16 lakh workforce across the country to remain globally competitive, Minister of State for Steel A Sai Prathap informed Parliament today. 

"Rationalisation of manpower is a continual process in SAIL... Manpower rationalisation is being undertaken with the objective of remaining globally competitive, improving productivity and bringing down costs," he said in a written reply to Lok Sabha. 

Technicals: SAIL

Yesterday's rally was surprising. Speculative too & Do not get excited too. If rally continues, then it can zoom up to 229.20 level by non-stop. If Profit Booking Starts, then expect slide up to 218.00 level and have caution.

HCLTECH (NSE Cash) 

Revenues grew in tune with peers but rupee appreciation dims overall outlook. 

HCL Technologies reported a revenue growth of 21.4 per cent year-on-year (y-o-y) to $685.2 million (in constant currency terms) during the March quarter, up 5.1 per cent as compared to the previous quarter. Segment-wise, consolidated revenues from the information technology (IT) services grew nearly 25 per cent y-o-y and 6.6 per cent quarter-on-quarter (q-o-q). 

Technicals: HCLTECH

Speculative Buying taken place on yesterday & Do not get excited too. If rally continues, then it can zoom up to 403.90 level by non-stop. If Profit Booking Starts, then expect slide up to 369.10 level and have caution.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	22-Apr-2010	3288.38	2770.08	518.3

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	22-Apr-2010	1608.22	1426.36	181.86

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

Market Outlook 22nd April 2010

 Strong & Weak  Stocks

This is list of 10 strong stocks

Pir Health, DCB, Indusind Bank, Sintex, Polaris, Concor, GE Shiping, Zeel, Allahabad Bank & Titan

And this is list of 10 Weak stocks:

Triveni, Renuka, Sail Ltd, Bajaj Hind, BEL, Hind Petro, ONGC, McDowell, Dr Reddy & Uniphos.

The daily trend of nifty is in downtrend
 

Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-22Apr2010.htm Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-21-Apr-2010.htm   Corporate News Headline
•	TCS will provide Rolls-Royce with a range of engineering services across the entire product cycle. As part of the agreement, TCS will support and enable Rolls-Royce strategy to expand its engineering services footprint in India. TCS will set up an engineering centre to cater to Rolls-Royce design and engineering requirement in Bangalore. (BS)
•	HCL Technologies net profit rose 72% at Rs. 2.62 bn for the third quarter ended March 31, over the same period last year. The total income of the company rose to Rs. 12.87 bn from Rs. 10.48 bn in the same quarter previous fiscal. (BS)
•	Hindustan Zinc's net profit surged over two-fold to Rs. 12.39 bn for the fourth quarter ended March 31, 2010. (BS)
Economic and Political Headline
•	The RBI is looking to reverse its expansionary monetary policy stance over a period of time and cannot be certain that the reverse repo rate will remain its operative rate. "We can't assure reverse repo rate will be the operative rate. Ideally we will like the operative rate to be in the middle of the liquidity adjustment facility corridor, but that's difficult to maintain at that level," Subbarao said. (BS)
•	UK jobless claims fell more than forecast in March. The number of people collecting jobless benefits fell 32,900 from February to 1.54 million, the Office for National Statistics said in London. (Bloomberg)
•	The International Monetary Fund raised its forecast for global growth this year and cautioned that a failure of nations to contain soaring public debt might have "severe" consequences for the world economy. The IMF said the economy will expand 4.2% in 2010, the fastest pace since 2007, compared with a January projection of 3.9%. (Bloomberg)

 

NIFTY/CASH SPOT INDEX LEVELS TODAY

	5244.90	( 0.28 %)	14.80
		1	2	3
Resistance		5264.03	5283.17	5300.03
Support		5228.03	5211.17	5192.03

	17472.56		( 0.07 %)	11.98
			1	2	3
Resistance			17543.24	17613.91	17662.28
Support			17424.20	17375.83	17305.16

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	21-Apr-2010	2730.87	2647.91	82.96

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	21-Apr-2010	1181.12	1155.87	25.25

 

 NIFTY FUTURES (F & O):
Above 5253-5255 zone, rally may continue up to 5258 level and thereafter expect a jump up to 5266-5268 zone by non-stop.

Support at 5229 & 5235 levels. Below these levels, expect profit booking up to 5214-5216 zone and thereafter slide may continue up to 5201-5203 zone by non-stop.

Buy if touches 5196-5198 zone. Stop Loss at 5183-5185 zone.

On Positive Side, cross above 5271-5273 zone can take it up to 5284-5286 zone by non-stop. If crosses & sustains this zone then uptrend may continue.
 
Short-Term Investors: 
 Bullish Trend.

Up Side Target at 5367.70.

Stop Loss at 5162.30.
 
STOCK FUTURES (NSE):
YESBANK FUTURES:

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 290.20 level by non-stop. If Profit Booking Starts, then expect slide up to 257.05 level and have caution.
PANTALOONR FUTURES (5 Day's Holding):

Real Buying taken place in last 5 Trading Days. If rally continues, then it can zoom up to 470.00 level by non-stop. If Profit Booking Starts, then expect slide up to 407.10 level and have caution.

OPTIONS (NSE):
NIFTY 5300 CALL OPTION:

Yesterday's rally was speculative too. Do not get excited too. If rally continues, then it can zoom up to 34.80 level by
non-stop. If Profit Booking Starts, then expect slide up to 11.40 level and have caution.
 
RPOWER 160 CALL OPTION:

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 5.20 level by non-stop. If Profit Booking Starts, then expect slide up to 1.50 level and have caution.

Equity:
AXISBANK (NSE Cash)

Axis Bank again demonstrated its ability to grow at a faster pace than the industry. During the fourth quarter, the bank reported a growth of 28% in its loan book, significantly higher than the rate of 17% clocked by the industry, after loan growth had slipped to 12.5% in the quarter-to-December '09. 

Technicals:

Speculative Rally on yesterday. Do not get excited too. If rally continues, then it can zoom up to 1294.40 level by non-stop. If Profit Booking

Starts, then expect slide up to 1180.40 level and have caution.
 
IBREALEST (NSE Cash)

Many of key projects in Mumbai commenced sales, impact likely to start from current quarter. 

Technicals:

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 177.95 level by non-stop. If Profit Booking Starts, then expect slide up to 168.00 level and have caution
 

 

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

Market Outlook 21st April 2010

Strong & Weak Stocks

This is list of 10 strong Stocks: 

Pir Health, GE Shiping, Allahabad Bank, Titan, Andhra Bank, Ansal Infra, Indian Bank, TV-18, Polaris & Rel Infra. 

And this is list of 10 Weak Stocks: 

Triveni, Renuka, Sail Ltd, BEL, ONGC, Punj Lloyd, Tech Mahindra, Hind Petro, Uniphos & McDowell.

The daily trend of nifty is in downtrend 

Corporate News Headline
•	Suzlon Energy said its subsidiary, REpower Systems AG, has bagged a contract for supply of 44 wind turbines for a project in Turkey. (BS)
•	Axis Bank's net profit was up 32% in the quarter ended March 31, 2010. It stood at Rs. 7.65 bn this quarter as against Rs. 5.81 bn in the corresponding period a year before. (BS)
•	Sesa Goa said its net profit for the fourth quarter of the last fiscal surged to Rs. 12.15 bn on account of strong demand for the mineral from countries like China. (BS)
Economic and Political Headline
•	The RBI hiked short-term lending and borrowing rates and the portion of money banks deposit with it by 25 basis points each. The apex bank hiked its repo, reverse repo to 5.25% and 3.75%, respectively, while the Cash Reserve Ratio, or the portion of deposits banks park with RBI, to 6%. The hike in CRR, which will come into effect from April 24, will absorb Rs. 125 bn excess cash from the banking system. (BS)
•	The UK's inflation rate jumped more than economists forecast in March, breaching the government's upper limit for the second time this year after energy costs rose within weeks of the election. Consumer prices climbed 3.4% from a year earlier, compared with a 3% increase in February, the Office for National Statistics said in London. (Bloomberg)
•	China ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging "abnormally high" prices, stepping up efforts to prevent a property bubble. Developers must disclose to the public all apartments available and prices, and start selling within 10 days of getting pre-sale approval, the Ministry of Housing and Urban- Rural Development said. (Bloomberg) Derivatives EOD Report on http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-20-Apr-2010.htm Today Market Update on http://www.indiabulls.com/securities/mailermis/morning-brief/morning-brief-21Apr2010.htm SPOT / CASH INDEX LEVELS TODAY    5230.10 ( 0.51 %) 26.45          1 2 3 Resistance 5255.47 5280.83   5304.42   Support 5206.52 5182.93 5157.57 17460.58 ( 0.34 %) 59.90         1 2 3 Resistance 17548.89 17637.19 17714.30 Support 17383.48 17306.37 17218.07

NIFTY FUTURES (F & O):

 Above 5236-5238 zone, rally may continue up to 5242 level and thereafter expect a jump up to 5254-5256 zone by non-stop. 

Support at 5210 & 5217 levels. Below these levels, expect profit booking up to 5190-5192 zone and thereafter slide may continue up to 5172-5174 zone by non-stop. 

Buy if touches 5166-5168 zone. Stop Loss at 5148-5150 zone. 

On Positive Side, cross above 5260-5262 zone can take it up to 5277-5279 zone by non-stop. If crosses & sustains this zone then uptrend may continue.

Short-Term Investors: 

Bearish Trend. 

Down Side Target at 4947.10. 

Stop Loss at 5377.50.

STOCK FUTURES (NSE):

PIRHEALTH FUTURES: 

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 574.25 level by non-stop. If Profit Booking Starts, then expect slide up to 488.25 level and have caution.

GESHIP FUTURES (5 Day's Holding): 

Real Buying taken place in last 5 Trading Days. If rally continues, then it can zoom up to 363.70 level by non-stop. If Profit Booking Starts, then expect slide up to 307.10 level and have caution.

OPTIONS (NSE):

NIFTY 5300 CALL OPTION: 

Yesterday's fall was speculative too. If fall continues, then slide may continue up to 17.45 level by non-stop and have caution. If Short Covering Starts, then expect a jump up to 40.35 level by non-stop.

IDFC 170 CALL OPTION: 

Real Buying taken place on yesterday. If rally continues, then it can zoom up to 4.50 level by non-stop. If Profit Booking Starts, then expect slide up to 1.25 level and have caution.

Equity:

SBIN (NSE Cash) 

The SBI group has seen its market share in bank deposits fall 100 basis points to 23.4% for the quarter ending December 2009 over the same period a year ago as a result of its efforts to reduce high-cost deposits. However, the group's market share in credit rose marginally during the same period.  

 

Data from RBI's quarterly statistics on deposits and credit of scheduled commercial banks show that the SBI group now accounts for 23.8% of all bank lending, against 23.4% on December 2008. The market share of government-owned banks rose from 49% to 50.6%.  

 

Technicals: 

Yesterday's rally was surprising. Real Buying too. If rally continues, then it can zoom up to 2194.40 level by non-stop. If Profit Booking Starts, then expect slide up to 2021.00 level and have caution.

ICICIBANK (NSE Cash) 

Chanda Kochhar, managing director and chief executive officer, ICICI Bank, said, "The 25 bps increases in the repo and reverse repo rates and the CRR are broadly in line with market expectations given the strong economic growth and elevated level of inflation. At the same time, the RBI has also articulated as a priority the availability of credit to meet the growth needs of the Indian economy. Thus, the annual policy statement has balanced the twin objectives of growth and price stability."

Technicals:  ICICI BANK

Yesterday's rally was surprising. Speculative Buying too. If rally continues, then it can zoom up to 947.00 level by non-stop. If Profit Booking Starts, then expect slide up to 920.00 level and have caution.

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.

INVESTMENT VIEW

Sabero - Changing orbits   

CMP 78.75 

While lot has been circulated to our readers on this counter, Sabero organics is now in the process of delivering the unexpected, watch out for this one and accumulate with a four to six month view. We expect the stock to move into a new orbit, Purely on the valuation front.  The company is poised to grow at a CAGR of 32-35% over the next 2-3 years given its steady business model. 

The company is looking to introduce new products and obtain more and more registration of its products in various overseas markets to expand its footprint and grab a dominant share in the crop protection industry. There is a need to improve the agricultural production per hectare as population increases, which will lead to huge demand for plant protection products. 

At the CMP of Rs.78.75, the stock is trading at 5.6x and 4.4x its FY10E and FY11E EPS of Rs.14 and Rs.17.83 respectively which is at a huge discount to its peers.  Expect a healthy re-rating very soon. 

(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	20-Apr-2010	2418.67	2575.32	-156.65

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	20-Apr-2010	1345.12	1243.84	101.28

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

Market Outlook 20th April 2010

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