BUY LCC INFOTECH AT CMP

TARGETS: Short term: 4 rupees Mid term: 7 rupees Long Term: 15 rupees Driven by the passion and quality, LCC™ Infotech is amongst the top I.T. training & education organizations with a wide spread network of centers across the length and breadth of the country. Over two decades of quality management system, business expertise and sound strategies are responsible for this phenomenal growth of the company. At LCC™, it's a whole new way to work. Here an excellent team of professionals force the pace, challenge the limits of expansion. This uncompromising tenacity has helped LCC™ Infotech forge to the forefront as one of India's largest computer training networks and mirrors a global presence, stretching the business areas further and faster. In fact, LCC™ was the first to franchise education centers in India. Diversification has led LCC™ Infotech into wider spheres of Multimedia, Communications,Infrastructure and Software Development. The software training centers in towns, cities and metropolises are already spreading computer education to the masses, under the brand name LCC™ giving LCC™ Infotech a decisive edge and making it a total I.T. solutions provider in the I.T. industry. Training an average of 1,00,000 students a year, it has an alumni base of over 2.7 million students with a pan India network covering all corners of the country.

Intraday Call on 22-10-2010

• BUY HEROHONDA AT 1860 STOPLOSS 1845 TARGET 1882/1900 for intraday those client hold then target 1928/1944
• BUY EROS MEDIA AT 186 STOPLOSS 180 TARGET 197/201/207
• BUY PUNJLLOYD AT 131 STOPLOSS 125 TARGET 139/144 (1-2 DAYS)
• BUY SATYAMCOMP AT 82 STOPLOSS 80 TARGET 85-86 FOR INTRADAY AND HOLD FOR (1WEEK) TARGET 92-100

Investment Recommendation (6month to 12month) Target : 1415

Balmer Lawrie started its corporate journey as a Partnership Firm on 1st Februry 1867 at Kolkata, founded by two Scotmen - George Stephen Balmer and Alexander Lawrie. From Tea to Shipping, Insurance to Banking, Trading to Manufacturing - there was hardly any business, Balme Lawrie did not delve into in its formative years, growing stronger at every landmark of its remarkable corporate journey. Today, Balmer Lawrie has emerged as a multi-activity, multi-technology, multi-location conglomerate with global footprints - along with its joint Ventures, encompassing diverse interests in Manufacturing Sector viz, Industrial Packaging, Grease & Lubricants, Leather Chemicals and Travel & Tours, Logistics Infrastructure & Services and Engineering & Technology Services. In it’s existence of over 130 years, Balmer Lawrie has achieved several distinctions that attest the company’s market orientation, customer focus & quality consciousness. Presently the largest in India in: ◦Steel Barrels Manufacturing ◦Greases Manufacturing ◦Freight Containers Manufacturing ◦Fat Liquor Manufacturing ◦Travel Business Pioneer among Indian PSUs: ◦First to globalize operations through a joint venture in Dubai (1978) ◦First to offer equity shares to employees (1986) ◦First company in India to issue Commercial Paper in 1990 ◦Always made cash profits since inception in 1867 ◦President’s Award for Outstanding Export Performance of Packet Teas (1995/96) National Award winner for excellence in R&D (1994) - Patented the process for environment friendly ‘non-acid base used oil refining’. - Majority of the units are ISO certified. Other units are in the process of certification. Company has been showing good growth for the last 5 yrs and is likely to continue doing that in coming years. Business: This public sector behemoth offers a wide and diversified array of services, rendered under five broad segments namely Industrial Packaging, Logistics Infrastructure and Services, Travel and Tours, Greases and Lubricants and Others (Tea, Leather Chemicals and Refinery and Oil Field Services), of these segments the biggest revenue growth driver is the Travel and Tours segment followed by the Logistics Infrastructure and Services sector Industrial Packaging: Thought this segment contributes less than 1/5th to the company’s overall revenue, it has garnered a huge reputation within industrial circles, and is considered to be the largest manufacturer of industrial package containers. The firm manufactures 165, 200 and 210 ml steel drums that are utilized for safe packing, transport and storage of goods. Utilizing its strong R&D facilities and 6 manufacturing units (Mumbai, Kolkata, Chennai, Panipat , Silvassa and Asaoti) it is able to provide a comprehensive series of drums to its diversified client base that ranges from food companies to chemical companies. Logistics Infrastructure and Services: Balmer Lawrie offers seamless Logistics Solutions to it’s clients through a country-wide network of offices including all Major Airports & Ports in India,and a World-wide network of associates in more than fifty countries.The expertise of Balmer Lawrie in Logistics Services dates back to Nineteenth Century when it stated this activity and it has grown manifolds over the past decade. Highlights a. The only major PSU in the Arena of Complete Logistics Services and related solutions,with equal focus on Public and Private Sectors. b. Specialist in Air Import Consolidation,Ocean Impots, Air Chartering and Project Cargo Handling.. c. Having a Nation-wide and World-wide network with offices manned by Professionals and State-of-the-Art Communication facilities. d. Having ISO 9001-2000 Accreditation. e. Prividing clients with a Total Logistics Solution package. Services: Air Freight Services As an accredited IATA agent,we have been handing Inbound and Outbound cargo through our Consolidation Service,which include Standard and Over-Dimensioned Cargo,Perishable and Temperature-Controller consignments, Dangerous Cargo as defined by IATA,Door-to-Door Service to and from anywhere in the country to anywhere on the globe. Ocean Freight Services Containerized,Break-Bulk and LCL cargo on Door-toDoor basis, Out-sized / Heavy-Lift consignment and Specialized Project Cargo including carrier selection,documentation at India and Abroad,CHA and inland movement in the countries of Origin and Destination.Ably assisted through it’s own Container Fright Station at JNPT, Navi Mumbai, Chennai and Kolkata. Air Chartering Custom-Built Logistics Solution for movement of specific Consignment through Chartered Aircraft. This include selection of aircraft,positioning and movement of materials through route specified by client,Customs-Clearence at both Origin and Destination depending on Customer Requirement. Ship Chartering Selection of Carrier depending for customer requirement, both Domestic(Coastal) and International,Door-to-Door receipt and delivery of cargo as per Customer requirement. CHA Activities One of India’s oldest CHA licence holder, we provide CHA services to our clients at all Airports and Sea Port, CFS (Container Fright Station) and ICD (Inland Container Depot) as well. Project Logistics Management Starting from Project registration with Customs, Documentation, pickup from supplier’s doorstep, arranging Air/Ocean Freight as required, surface Transportation, Multimodal movements, warehousing, delivery to the site ,arranging Insurance Coverage, follow-up of Insurance Claims(if any)etc. Express Cargo Movement With it’s tie-up with DHL Express, provides world-wide movement of Express Cargo and Temperature Sensitive Cargo.. Travel and Tours: Nearly 40% of the firm’s revenue comes from this segment and much of the company’s overall fortunes will depend on this sector. This segment of Balmer Lawrie had the unique distinction of handling the Commonwealth Youth games in 2008. The firm has a large base of IATA approved agents (1500) and over 15000 non IATA approved agents to help it service this largely fragmented industry. Revenues and profits from this firm have grown at a healthy rate over the last 5 years (Revenue CAGR of 17.1% and profit CAGR of 19% from 2005-2009) and this is mainly due to the company’s widespread network all over India. Greases and Lubricants: This is another segment in which the company has a dominant position, being considered amongst the top 10 grease manufacturers in Asia and the largest in the country. In India 65% of the client base for grease and lubricants consists of automobile companies and the remaining 35% consists of industrial and marine companies. This unit generates sales by selling its flagship lubricant Balmerol and grease processing business and manufacturing services for other companies. Others (Tea, Leather Chemicals and Refinery and Oil Field Services): Tea: Tea is one of the oldest and traditional businesses of Balmer Lawrie. The company is engaged in the entire spectrum of tea operations from sourcing to exports (both in bulk and value added forms). The Company operates from all auction centers in India and owns modern warehousing, tasting, blending and packing facilities at Kolkata, Coimbatore and Bedford (UK). The company is a Government recognized ‘Export House’. The company is also the recipient of ‘Certificate of Merit’ awarded by the Government of India for ‘outstanding export performance in packet tea and tea bags’. The tea division and its factories at Kolkata and London are ISO9002 certified and IMO certified for blending & packing of organic tea. Work is in advanced stages with regard to HACCP and Safe Quality Food certifications. The Company enjoys a wide market base both in conventional and sophisticated tea markets of the World. It is one of the largest suppliers of bulk and packet tea from India to Russia & CIS, West Asia and North African countries. Teas packed by Balmer Lawrie, in own brands or in buyers’ brands, can be seen in chain stores and other outlets in UK, Germany, France, USA, Canada, Japan and Australia. Amongst others, the company is associated with the prestigious Harrods, Selfridges chains in UK, Mitsukoshi, Minami outlets in Japan. Private labelers, hotel chains and major airlines are among other prominent customers. Leather Chemicals Balmer Lawrie started manufacture of leather chemicals in the year 1983 after developing the technology indigenously in collaboration with the world renowned Central Leather Research Institute. Since then, through continuous interaction with customers and supply of products of consistent quality, the company has established leadership for its products in India. Today, the product range includes synthetic and semi-synthetic fatliquors, synthetic tanning agents and auxillaries. The manufacturing plant at Chennai is an ISO 9001 certified unit by BVQI Refinery and Oil Field Services The Refinery & Oilfield Services (ROFS), an integral part of the Engineering & Technology Services portfolio of the Company relates to services provided in the high technology oil & gas related areas. In this domain the focus is on providing environment friendly services centered around prevention & recovery of hydrocarbon wastes. This activity assumes greater significance with the all round concern on twin aspects of environment & safety. Present Activities of SBU ● Crude oil sludge cleaning & Hydrocarbon Recovery ► In-situ mechanized tank bottom sludge cleaning ► Lagoon/ pit sludge cleaning ● Vapour loss Prevention & Recovery ► Aluminum Internal floating Roof ► Aluminum Tank Dome ► Membrane based vapour Recovery ● Other Services ► Decontamination of Process Plants ► Composite Repair of pipelines & Tankages Share holding pattern: Promotor holding = 0% Public holding = 17% FII holding = 0.79% Others = 82.09% Company Stakes: Company name Balmer Lawrie’s stake Balmer Lawrie U.K. — 100% Avil Oil India ltd — 25% Balmer Lawrie (UAE) LCC — 49% Balmer Lawrie-Van Leer ltd — 40.12% Transafe Services Ltd — 50% The global financial slowdown hasn’t left Balmer Lawrie untouched, Its operating performance stagnated in FY09 and the net profit was propped up by a spurt in nonoperative income. Revenues went up 13.7% in FY09 at Rs 2,007 crore and profits grew by 9.3% to bring in Rs 109 crore. The services sector did well during the year with travels and tours posting 19% growth and logistics services growing at 21%. Both these businesses posted healthy improvement in profits as against a fall in profit for manufacturing businesses such as industrial packaging and lubricants. With established businesses and very low annual capex, the company has maintained its return on employed capital to beyond 40% for last four years.

M M FORGINGS LTD.

TARGET ACHIEVED AT 140 BUT STOCK MADE NEW HIGH AT 144.50 IN NSE ANDE 145.20 IN BSE

JSW Energy - Technical View

JSW Energy had made a triple top formation at 131 levels and is currently trading at 134. One can enter it for a short term target of 140-142.

Short Term Recommendation

BUY M M FORGINGS LTD. CMP TARGET 140 COMPANY INFO: The company is engaged in the manufacturing of steel forgings. The Company manufactures and exports steel forgings in raw, semi-machined and fully machined stages in various grades of carbon, alloy, micro alloy and stainless steels in the weight range of 0.20 kilogram to 60 kilograms. As of March 31, 2010, the Company's installed and production capacity (on 600 shift basis) was 38,820 and 33,320 metric tons of steel forgings, respectively. The Company has a wholly owned subsidiary, Srivatsa Electric & Electronic Limited

Intraday Calls 12 July 2010

• SELL JINDAL SAW FUT 209.60 STOPLOSS 211.45 TARGET 207.60/207.05(BOTH TARGET ACHIEVED)
• SELL JSW STEEL FUT 1104 STOPLOSS 1119 TARGET 1098/1087(BOTH TARGET ACHIEVED)
• POSITIONAL CALL : SELL HDFC FUT 3003 STOPLOSS 3048 TARGET 2978.90/2954.80/2949.90
• SELL AUROPHARMA FUT 942.50 STOPLOSS 953.80 TARGET 927.60/923.80
• SELL BANK NIFTY FUT 9730 STOPLOSS 9780 TARGET 9678.40/9616.10(SL TRIG)
• SELL GAIL FUT 471.40 STOPLOSS 473.35 TARGET 465.70(BOOK PROFIT AT 466.50)

Intraday Calls 09 July 2010

• SELL OBC FUT 241.50 STOPLOSS 343.35 TARGET 339.25/338.85/337
• POSITIONAL CALL : SELL NIFTY FUT 5355 STOPLOSS 5405.10 TARGET 5291.25/5253.30

Intraday Calls 08 July 2010

• SELL SBIN FUT 2342 STOPLOSS 2360 TARGET 2326.50/2316
• SELL ICICIBANK FUT 863 STOPLOSS 870.20 TARGET 858.30/844.10

Intraday Calls 07 July 2010

• SELL IBREALEST FUT 159 STOPLOSS 161.50 TARGET 155.70/154(MADE LOW AT 156)
• SELL BHUSHAN STEEL FUT 1472 STOPLOSS 1494 TARGET 1453.05/1426.10(1ST TARGET ACHIEVED AND MADE LOW 1441)

Intraday Calls 05 July 2010

• SELL LT FUT 1804 STOPLOSS 1815 TARGET 1795.40/1784.50
• SELL SESAGOA FUT 345 STOPLOSS 341.60 TARGET 353.80
• SELL MPHASIS FUT 606 STOPLOSS 610.30 TARGET 601

Intraday Calls 1 July 2010

• SELL GSPL FUT 103.50 STOPLOSS 104.10 TARGET 102.80/101.50(1ST TARGET ACHIEVED)
• SELL ABAN FUT 845 STOPLOSS 852.60 TARGET 840.40/833.80(SL TRIG)
• SELL FORTIS FUT 156.40 STOPLOSS 158.40 TARGET 152.95(MADE LOW 154.45)
• BUY TATAMOTORS FUT 772 STOPLOSS 765 TARGET 785(SL TRIG)
• BUY MARUTI FUT 1394 STOPLOSS 1381 TARGET 1421

Intraday Calls 29 June 2010

• SELL ZEEL FUT 295.65 STOPLOSS 298.25 TARGET 293.25/291.75(BOTH TARGET ACHIEVED)
• SELL LT FUT 1797 STOPLOSS 1810 TARGET 1781/1767.50
• POSITIONAL CALL : SELL BHUSHAN STEEL FUT 1439 STOPLOSS 1456.65 TARGET 1418/1380 (1ST TARGET ACHIEVED)
• POSITIONAL CALL:SELL ABAN FUT 819 STOPLOSS 834.30 TARGET 804.90/785.20
• BUY JINDAL SAW FUT 201.20 STOPLOSS 197.90 TARGET 204.45/208.80
• SELL RNRL BOTH TARGET ACHIEVED AT 65.50/65.20

OUR LAST POSITIONAL CALL ON 28 JUNE 2010 :

• SELL NIFTY BOTH TARGET ACHIEVED AT 5305 AND 5269
• SELL ONGC 1ST TARGET ACHIEVED AT 1295
• SELL RELIANCE BOTH TARGET ACHIEVED AT 1085 AND 1078.35
• SELL SUNPHARMA BOTH TARGET ACHIEVED AT 1785 AND 1768

Intraday Calls 28 June 2010

• SELL RNRL FUT 67 STOPLOSS 68.60 TARGET 65.50/65.20
• SELL ABAN FUT 765 STOPLOSS 770 TARGET 757.20/751.70(SL TRIG)
• SELL BANK NIFTY FUT 9495 STOPLOSS 9542 TARGET 9465/9441.40/9390.70(1ST TARGET ACHIEVED)
• SELL SUNPHARMA FUT 1805 STOPLOSS 1815.20 TARGET 1783.20/1768.60
• BUY SBIN FUT 2311 STOPLOS 2301 TARGET 2320/2334.10(1ST TARGET ACHIEVED)
• POSITIONAL CALL : SELL ONGC FUT 1310 STOPLOSS 1356.55 TARGET 1296.05/1254.10
• SELL RELIANCE FUT 1091 STOPLOSS 1102.55 TARGET 1085.90/1078.20
• POSITIONAL CALL : SELL NIFTY FUT 5335 STOPLOSS 5356.70 TARGET 5305.90/5269.40

Possible outcomes for fuel price reforms

NEW DELHI (Reuters) - The government on Friday will once again grapple with the political hot potato of deregulating fuel prices, seeking a way to improve its financial health as it tries to shield its 1.2 billion citizens from high prices. A panel of ministers, empowered by the cabinet to decide the country's fuel policy, will review the policy at 1 p.m. (0730 GMT). Earlier this month, the panel deferred the decision due to political concerns that the move would hurt voters already hit by high food prices. Asia's third-largest economy has been looking for new ways to reduce subsidies and set prices of motor and cooking fuel since the failure of its 2002 bid to get state-owned refiners to fix prices every two weeks in step with global rates. But this is a political minefield in a country where 410 million people live on less than $1.25 a day and any decision by the panel of ministers who debate the issue must have the approval of Sonia Gandhi, the left-leaning powerful chief of the Congress party that has led coalition governments since 2004. Analysts worry that maintaining the status quo could discourage private sector investment in India's under-developed energy sector and send a signal that the government would rather please its mostly poor and rural political base than push through pro-market reforms. B.M. Bansal, chairman of state-run Indian Oil Corp on Wednesday said the current petrol price, 47.93 rupees ($1.03) per litre, was 3.20 rupees, or nearly 7 percent, lower than market rates, while diesel rates were 9 percent lower. Shares of IOC (IOC.NS : 379.5 +38.1) and other state refiners Bharat Petroleum (BPCL.NS : 621.75 +71) Corp Ltd and Hindustan Petroleum Corp Ltd were up 1.1 percent to 1.2 percent, outperforming the benchmark index, which was down 0.5 percent at 0355 GMT on Friday. ELECTORAL RISKS * Raising fuel prices would stoke inflationary pressures, already at levels uncomfortable enough for voters to slam Congress in municipal elections this week in the swing state of West Bengal. * An economically sound decision may help India narrow its fiscal deficit, but could yield electoral losses for the Congress in the half-dozen state elections scheduled this year and next. * Many coalition allies would be unhappy with the unpopular measure, which is sure to be pounced upon by opposition parties including the communists who tried to unseat the government over a February hike in motor fuel prices. * Rival Asian giant China, with its own billion-plus population, abandoned similar fuel price subsidies from January 2009 to great effect for then-struggling refiners grappling with losses, as Indian state-owned refiners do now. * If India does reform its refined fuel policy during a window stretching from the end of the lawmakers' budget session in May until parliament gathers next for its monsoon session in August, here are the possibilities that could play out: ELIMINATING CONTROLS * Lifting subsidies would trigger spikes of up to 15 percent in retail prices of diesel and gasoline -- adding to the political pressure on a government already facing protests over rising prices of food and consumer goods. * This option looks even more difficult in the wake of two fuel price hikes since the end of February. * It could stoke inflation, forcing a tightening of monetary policy. The government's fiscal deficit, now projected at 5.5 percent of the budget for the year ending March 2011, would probably shrink, freeing up capital for other programmes. * In the fiscal year that ended March 31, India spent 149.5 billion rupees ($3.35 billion), or nearly 1.5 percent of all government expenditure, on oil subsidies, compared with initial estimates of 31.1 billion rupees. * Market rates would allow private firms Reliance Industries (RELIANCE.NS : 1062.75 +10.7) and Essar Oil (ESSAROIL.NS : 137.7 +8.35), that now mainly export fuel, to consider domestic retail sales. * Revenue would spike dramatically at retailer Indian Oil Corp, as well as Hindustan Petroleum and Bharat Petroleum, and upstream firms ONGC (ONGC.NS : 1265 +75.65), Oil India and GAIL (GAIL.NS : 482.4 +5.65) (India). * Higher retail prices could briefly dampen demand for fuel and vehicles. * Scrapping government intervention would hit poor consumers, who have no access to electricity and use kerosene for lighting and cooking. PARTIALLY LIFT CONTROLS * India may end pricing controls on petrol, viewed as the rich man's fuel, and gradually remove controls on diesel, which could spur higher inflation but ease its fiscal burden. * It would help cut losses at state oil firms, but fuel demand may be hit briefly and could draw some opposition from the automobile sector. * It may spur a change in fuel use. A large gap between diesel and kerosene prices may see the cheaper fuel being used to adulterate diesel. * Introduction of a Unique Identity/Smartcards framework may follow to ensure a transparent public distribution system of kerosene and domestic LPG. KEEP SUBSIDIES * The government may decide to continue with the populist mechanism of subsidising fuel prices but would then face the risk of a ballooning fiscal deficit, and jettison its plan to trim the deficit to 4.1 percent of GDP by the end of March 2013. * The finances of the public sector oil marketing companies would be hammered. Projected losses for the firms are estimated at $24.4 billion this year, based on an average crude price of $85 a barrel.

Intraday Calls 25 June 2010

• SELL RELINFRA FUT 1172 STOPLOSS 1180.05 TARGET 1161.75/1153.50(SL TRIG)
• BUY TULIP FUT 867 STOPLOSS 861 TARGET 880
• SELL DRREDDY FUT 1483 STOPLOSS 1500 TARGET 1450.20/1440.20
• SELL HEROHONDA FUT 2041 STOPLOSS 2053 TARGET 2031.60/2021.15

EGoM meet on fuel price on June 25

An empowered group of ministers (EGoM) will meet on June 25, 2010 to consider possibly freeing petrol prices from the government control and marginally hiking diesel prices.

Food inflation rises to 16.90%

The inflation for primary articles for the week ended June 12, 2010 stood at 17.60% as compared to 16.86% seen in the previous week. Fuel group inflation for week ended June 12 stood unchanged at 13.18%. Food inflation inched up to 16.90% for the week ended June 12, 2010 as compared to 16.12% in the previous week.

Intraday Calls 24 June 2010

• SELL HEROHONDA JULY FUT 2044 STOPLOSS 2055 TARGET 2034.50/2026(BOTH TARGET ACHIEVED)
• SELL AXIS BANK JULY FUT 1261 STOPLOSS 1269 TARGET 1251/1247
• SELL CENTURYTEXTILE FUT 472 STOPLOSS 476.JULY 80 TARGET 467.85/463.45(BOTH TARGET ACHIEVED)

Intraday Calls 23 June 2010

• SELL RELINFRA JULY FUT 1181 STOPLOSS 1191.55 TARGET 1164.30/1150(SL TRIG)
• BUY SESAGOA JULY FUT 361.50 STOPLOSS 357 TARGET 368.25/369.80(BOTH TARGET ACHIEVED)
• BUY HDFC JULY FUT 2951 STOPLOSS 2925 TARGET 2977/3003(1ST TARGET ACHIEVED)
• SELL GAIL JULY FUT 479 STOPLOSS 483 TARGET 476.10/471.60(1ST TARGET ACHIEVED)
• SELL IBREALEST JULY FUT 155 STOPLOSS 158 TARGET 152/149.90

Intraday calls 22 June 2010

• SELL RANBAXY JULY FUT 456.40 STOPLOSS 461.90 TARGET 450.65/444.50
• SELL SUNPHARMA JULY FUT 1760 STOPLOSS 1774.40 TARGET 1750/1742/1717.50(1ST TARGET ACHIEVED)
• SELL GSPL FUT 98.50 STOPLOSS 99.20 TARGET 97.35/96.90
• SELL CENTURYTEXTILE JULY FUT 470.70 STOPLOSS 478 TARGET 466.85/461.20(1ST TARGET ACHIEVED)

Intraday Calls 21 June 2010

• SELL RCOM 170 PA AND 190 CA AT 0.70 AND 2.40 GRAP 100 % PROFIT ON EXPIRY
• SELL EDUCOMP JULY FUT 525.50 STOPLOSS 534 TARGET 515.30/509
• SELL HDFC JULY FUT 2982 STOPLOSS 3005 TARGET 2953.60/2944/2893
• SELL AUROPHARMA JULY FUT 860 STOPLOSS 871 TARGET 849.30/847.85
• SELL INFOSYSTCH JULY FUT 2814 STOPLOSS 2833 TARGET 2783.40/2778

Intraday Calls 17 June 2010

• SELL ZEEL FUT 302.50 STOPLOSS 306 TARGET 299.15/298.55(BOTH TARGET ACHIEVED)
• SELL RCOM FUT 190.60 STOPLOSS 194.40 TARGET 185.70/183.60
• SELL MARUTI FUT 1368 STOPLOSS 1376.40 TARGET 1352.60/1336.20
• POSITIONAL CALL : SELL L&T FUT 1764 STOPLOSS 1790.30 TARGET 1730.75/1694.55

Intraday Calls 16 June 2010

• SELL L&T FUT 1722 STOPLOSS 1738.35 TARGET 1710/1692(1ST TARGET ACHIEVED)
• SELL HEROHONDA FUT 2024 STOLOSS 2033.30 TARGET 2015.30/2006.10(BOTH TARGET ACHIEVED)
• SELL SUZLON FUT 58 STOPLOSS 59.20 TARGET 57.25/56.60(1ST TARGET ACHIEVED)
• SELL HDFC FUT 2890 STOPLOSS 2916 TARGET 2847/2829.50
• SELL JINDALSTEL FUT OR CASH 662 STOPLOSS 670 TARGET 653.70/649.65 (BOTH TARGET ACHIEVED)
• SELL UNITECH FUT 71.40 STOPLOSS 72.40 TARGET 70.40/69.90(BOTH TARGET ACHIEVED)

THIS RECOMMENDATION ON 09 JUNE 2010

• POSITIONAL CALL : SELL ONGC FUT 1190 STOPLOSS 1220 TARGET 1152/1129(1ST TARGET ACHIEVED)

Intraday Calls 14 June 2010

• SELL L&T FUT OR CASH 1685 STOPLOSS 1695 TARGET 1677/1670(BOOK PROFIT AT 1678.90)
• SELL JINDAL SAW FUT 196 STOPLOSS 200.50 TARGET 191.05
• POSITIONAL CALL : SELL RELIANCE FUT 1066 STOPLOSS 1092 TARGET 1045/1024
• SELL ZEEL FUT 294 STOPLOSS 297.30 TARGET 291.60/288.30

OUR LAST RECOMMENDATION ON 11 JUNE 2010

• SELL DRREDDY IN CASH AND FUTURE 1476 AND 1482 STOPLOSS 1490 AND 1496 TARGET 1449/1411 AND 1455.90 /1421(BOTH TARGET ACHIEVED)

Intraday calls 11 June 2010

• POSITIONAL CALL : SELL MARUTI FUT 1346 STOPLOSS 1363.30 TARGET 1324/1305
• POSITIONAL CALL:SELL RELINFRA FUT 1130 STOPLOSS 1156 TARGET 1114/1096/1085(1ST TARGET ACHIEVED)
• SELL DRREDDY IN CASH AND FUTURE 1476 AND 1482 STOPLOSS 1490 AND 1496 TARGET 1449/1411 AND 1455.90 /1421
• POSITIONAL CALL:SELL TATAMOTORS FUT OR CASH 764 STOPLOSS 790 TARGET 680/650
• SELL GSPL FUT 97.30 STOPLOSS 98.5 TARGET 96.55/95.60(1ST TARGET ACHIEVED)
• POSITIONAL CALL : SELL HDIL FUT 235.50 STOPLOSS 249 TARGET 227/218
• SELL FORTIS FUT AND CASH ALSO 149.50 STOPLOSS 153.70 TARGET 146/144

Intraday Calls 10 June 2010

• SELL SAIL FUT 195 STOPLOSS 197.60 TARGET 192/190.80
• SELL SESAGOA FUT 345 STOPLOSS 351 TARGET 333.80
• POSITIONAL CALL : SELL SBIN FUT 2300 STOPLOSS 2332.60 TARGET 2280/2257.50
• SELL RELIANCE FUT 1013 STOPLOSS 1022 TARGET 1005.75/1000

Intraday Calls 09 June 2010

• BUY ICICIBANK FUT 811 STOPLOSS 804.55 TARGET 818/831(1ST TAREGT ACHIEVED AND MADE NEW HIGH AT 826)
• POSITIONAL CALL : SELL ONGC FUT 1190 STOPLOSS 1220 TARGET 1152/1129
• BUY HDFC 2701 STOPLOSS 2685 TARGET 2726/2756/2775 IN CASH ONLY(1ST TARGET ACHIEVED AND MADE HIGH AT 2750)
• POSITIONAL CALL : SELL SBIN FUT 2290 STOPLOSS 2338 TARGET 2251/2241.55(1ST TARGET ACHIEVED)
• SELL HDIL FUT 219 STOPLOSS 224 TARGET 210/204
• BUY SUZLON FUT 53.05 STOPLOSS 50 TARGET 55.75

Intraday Calls 08 June 2010

• SELL ZEEL FUT OR CASH 292 STOPLOSS 294.25 TARGET 289.45/286.85(1ST TARGET ACHIEVED)
• SELL DISHTV FUT OR CASH 41.15 STOPLOSS 42.35 TARGET 40.70/39.75(1ST TARGET ACHIEVED)
• SELL MARUTI FUT 1332 STOPLOSS 1347.60 TARGET 1312(TARGET ACHIEVED)
• POSITIONAL CALL : SELL RELINFRA FUT 1093 STOPLOSS 1126 TARGET 1075/1058(BOTH TARGET ACHIEVED)
• SELL M&M FUT 581 STOPLOSS 588.30 TARGET 572.40/564.50(BOTH TARGET ACHIEVED)
• BUY SUZLON FUT 53.90 STOPLOSS 52.80 TARGET 55.50/56.30(BOOK PROFIT AT 54.50)

Intraday Calls 07 June 2010

• BUY OIL INDIA 1310 STOPLOSS 1284 TARGET 1360(SL TRIG)
• RISKY TRADE SELL ONGC FUT 1194 STOPLOSS 1211.70 TARGET 1176/1157(1ST TARGET ACHIEVED)
• SELL BANKNIFTY FUT 9166 STOPLOSS 9216.30 TARGET 9122.30/9028.30
• SELL SBIN FUT 2273 STOPLOSS 2290 TARGET 2249.85

OUR LAST RECOMMENDATION ON 04 JUNE 2010:

• SELL SBIN,BHEL AND NIFTY BOTH ARE TARGET ACHIEVED

Markets tumble on weak jobs data:The Labor Department said 431,000 jobs were added to the U.S. economy, but of that total, 411,000 workers were hired

NEW YORK (Reuters) - Stocks fell sharply on Friday after the May payrolls report showed private hiring was much lower than expected, raising fears about the strength of the economic recovery. The Labor Department said 431,000 jobs were added to the U.S. economy, but of that total, 411,000 workers were hired for the U.S. Census. Wall Street looked for payrolls to rise by 513,000. "This shows that there's not much in the economy able to generate ongoing jobs growth, and that raises the question of the sustainability of the recovery," said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania. Wall Street tracked European equities, which fell on concerns about Societe Generale's derivatives business. Also, worries intensified that Europe's sovereign debt troubles could spread after a Hungarian official said the country was at risk of a Greek-style crisis. The euro fell to a four-year low against the dollar. Financial stocks were pressured by the jobs data and problems in Europe. The KBW Banks index and S&P Financial sector both fell almost 2 percent. JPMorgan Chase & Co shed 1.4 percent to $38.56, while Wells Fargo & Co slumped 2 percent to $28.33. The Dow Jones industrial average was down 180.24 points, or 1.76 percent, at 10,075.04. The Standard & Poor's 500 Index was down 18.55 points, or 1.68 percent, at 1,084.28. The Nasdaq Composite Index was down 33.40 points, or 1.45 percent, at 2,269.63. There have been nine days since 1998 when payrolls data was reported and the SPDR S&P 500 exchange-traded fund (ETF) opened down 1 percent or more, according to Bespoke Investment Group. On those days, the fund rose an average of 1.2 percent from open to close. The ETF was down 1.7 percent on Friday. Chris Burba, a short-term market technician at Standard & Poor's in New York, cited a support level for the S&P 500 at 1,070, a recent low for the index. If the S&P closes below that level, he said, "the risk of sustaining a decline beneath the February low would increase." avoided a decision on whether to pay its next quarterly dividend as it faced heavy political pressure to put the payout on hold while it fights the oil spill into the Gulf of Mexico. BP's U.S.-listed shares fell 3 percent to $38.13. Dow component McDonald's Corp fell almost 1 percent to $67.26 after it recalled 12 million "Shrek"-themed drinking glasses. U.S. officials warned consumers to stop using them because they contain the toxic metal cadmium. Decliners outnumbered advancers on the New York Stock Exchange by a ratio of more than 12-to-one, while about 20 stocks fell on the Nasdaq for every one that rose.

Minimum 25% public holding must for listed firms

The government on Friday made it mandatory for listed companies to raise public shareholding to 25 per cent, with at least 5 per cent dilution a year, a move that would attract more investors and check price share manipulation.In keeping with the Budgetary promise, the Finance Ministry amended the relevant regulations to the effect that "the minimum threshold level of public holding will be 25 per cent for all listed companies."Accordingly, all listed entities would have to dilute at least 5 per cent additional equity annually till they reach the threshold limit of 25 per cent. And fulfilment of this condition would be must to remain listed.The new rules were announced shortly after close of stock market today. Among the listed companies, there are 29 PSU companies and 179 other companies that have public shareholding below 25 per cent, according to CRISIL. There are over 4,500 listed companies in India. Some large companies that have to increase public shareholding include Wipro, NHPC, DLF, Power Grid and NMDC.For a company seeking listing, it would have to dilute 25 per cent in one go in case the issue size is just up to Rs 4,000 crore. However, those already in the process of going public and have filed draft prospectus could disinvest stipulated 10 per cent and later meet the condition notified on Friday. The government has made it mandatory for listed companies to raise public shareholding to 25% All listed entities would have to dilute at least 5% additional equity till they reach the 25% limit. Fulfillment of this condition would be must to remain listed. At present many companies dilute only 10% stake and their shares tend to trade at a premium The decision on mandatory increase in public exposure of a company to 25 per cent had been hanging fire for more than a year due to differences the market regulator Sebi had with the Finance Ministry. While Sebi's contention was that such broad-basing would require huge funds, which some estimates pegged at over Rs two lakh crore, the government was firm on enforcing the decision announced in the 2009-10 Budget as an effective means to check price manipulation by promoters.A top government adviser on financial sector and HDFC Chairman Deepak Parekh said last week that the increased public exposure was one of the effective ways to tackle the problem of over-pricing of public issues. “This step is a positive move. The good quality issues will attract a lot of FII flow. And higher public shareholding will force promoters to be more accountable to the investor community. This will also give a clear roadmap for disinvestment of PSUs," said Prateek Agarwal, head of equities at Bharti AXA Investment Managers. The Finance Ministry had come out with a discussion paper in February 2008 and was to complete the discussion in May that year, but the same could not happen on account of divergence of views. Thereafter, Finance Minister Pranab Mukherjee came out with the proposal while presenting the 2009-10 Budget in July 2009. The argument was that larger the number of shares and the number of shareholders, the less is the scope for price manipulation. At present, most companies dilute just 10 per cent stake and the shares tend to trade at a premium.The announcement further said that all listed companies will be required to maintain at least 25 per cent public shareholding for all times to come. "If the public shareholding in a listed company falls below 25 per cent at any time, such companies shall bring the public shareholding to 25 per cent within a maximum period of 12 months from the date of such fall", it added.Giving the rationale for the decision, the Finance Ministry said, "A disperse shareholding structure is essential for the sustenance of a continuous market for listed securities to provide liquidity to the investors and to discover fair prices."The decision, which was notified today, would see large number of companies hitting the capital market within a year.The move is in line with practices followed in developed economies globally. While the London Stock Exchange requires 25 per cent minimum public holding, the Singapore and Hong Kong Stock Exchanges also stipulate public share holding between 12 per cent and 25 per cent.The requirement to offload equity by large number of listed companies may have implications for the disinvestment programme of the government. The government proposed to raise Rs 40,000 crore during the current fiscal by selling equity of state-owned companies.

Intraday Calls 4 June 2010

• SELL GAIL CASH OR FUT 471 STOPLOSS 479.40 TARGET 465.80/459(1ST TARGET ACHIEVED)
• POSITIONAL CALL : SELL ONGC FUT 1226 STOPLOSS 1250 TARGET 1190(FULLY TARGET ACHIEVED)
• POSITIONAL CALL : SELL BHEL FUT 2339 STOPLOSS 2354 TARGET 2305
• SELL MARUTI FUT OR CASH 1303 STOPLOSS 1310 TARGET 1294.65/1282.80(SL TRIG)
• POSITIONAL CALL : SELL SBIN FUT 2303 STOPLOSS 2323.20 TARGET 2276/2247.40
• POSITIONAL CALL : SELL NIFTY FUT 5115 STOPLOSS 5142 TARGET 5095/5072.20

Intraday Calls 3 June 2010

• SELL JSWSTEEL FUT 1072 STOPLOSS 1083.05 TARGET 1061/1051(1ST TARGET ACHIEVED)
• SELL M&M FUT OR CASH 586 STOPLOSS 594 TARGET 575/569(BOOK PROFIT AT 578)
• POSITIONAL CALL:SELL RELINFRA FUT 1108 STOPLOSS 1127 TARGET 1089/1076(BOOK PROFIT AT 1096)
• POSITIONAL CALL:SELL L&T FUT 1657 STOPLOSS 1688 TARGET 1627/1600
• POSITIONAL CALL:SELL AXISBANK FUT 1222 STOPLOSS 1240 TARGET 1200/1194(SL TRIG)
• STBT: SELL TATASTEEL FUT 485 STOPLOSS 493 TARGET 475/462(BOOK PROFIT AT 479)

Intraday Calls 2 June 2010

• SELL LT CASH OR FUT 1603 STOPLOSS 1614 TARGET 1588/1584(BOTH TARGET ACHIEVED)
• SELL HDIL CASH OR FUT 222 STOPLOSS 226.5 TARGET 219/216(1ST TARGET ACHIEVED)
• SELL ONGC FUT 1166 STOPLOSS 1178 TARGET 1153/1141(SL TRIG)
• SELL RNRL FUT 53.70 STOPLOSS 54.40 TARGET 52.70/52.25(SL TRIG)

Intraday Calls 1 June 2010

• SELL GAIL FUT OR CASH 456 STOPLOSS 460 TARGET 452/447(BOTH TARGET ACHIEVED)
• SELL CENTURYTEX FUT OR CASH 455 STOPLOSS 458.60 TARGET 449.40(TARGET ACHIEVED)
• SELL BHUSHAN STEEL FUT 1385 STOPLOSS 1400 TARGET 1357(SL TRIG)
• POSITIONAL CALL: SELL JSWSTEEL FUT 1092 STOPLOSS 1110 TARGET 1055.55/1018.20(1ST TARGET ACHIEVED))
• SELL ONGC FUT OR CASH 1169 STOPLOSS 1082 TARGET 1155/1148(BOTH TARGET ACHIEVED)

ONGC Q4 net profit up 71% at Rs 3776 cr

Oil and Natural Gas Corporation

(ONGC) has announced its fourth quarter results of FY10. It has reported net profit of Rs 3,776 crore as against Rs 2,207 crore, a growth of 71.09% on year-on-year basis (YoY).

Net sales rose 7.36% to Rs 14,713 crore from Rs 13,704 crore (YoY).

Other operating income rose to Rs 1,289 crore from Rs 430 crore (YoY).

Subsidy payout in the fourth quarter was at Rs 4,999 crore as against Rs 852 crore in same period of last year.

Total costs declined to Rs 11,032 crore from Rs 12,168 crore.

Net realisation increased to USD 51.42 a barrel versus USD 43.40/bbl (YoY).

For FY10, the company has reported consolidated net profit of Rs 19,403.5 crore as against Rs 19,795.3 crore and net sales at Rs 1.01 lakh crore versus Rs 1.04 lakh crore.

In a press conference, the management said:

The company paid subsidy of USD 27.74 a barrel in Q4 as against USD 4.45/bbl (YoY).

FY10 net realisation also jumped to USD 55.94/bbl versus USD 47.70/bbl.

Intraday Calls 28 May 2010

• SELL SESAGOA FUT 354 STOPLOSS 360 TARGET 346/335(SL TRIG)
• SELL INFOSYSTCH FUT 2656 STOPLOSS 2670 TARGET 2641/2636(BOTH TAREGT ACHIEVED)
• POSITIONAL CALL: SELL HDFC FUT 2782 STOPLOSS 2820 TARGET 2740/2710
• POSITIONAL CALL: SELL RELIANCE FUT 1036 STOPLOSS 1060 TARGET 1025/1008(1ST TRAGET ACHIEVED)
• POSITIONAL CALL: SELL IBREALEST FUT 156.25 STOPLOSS 162 TARGET 150/148
• POSITIONAL CALL: SELL ONGC FUT 1138 STOPLOSS 1155 TARGET 1118/1091
• POSITIONAL CALL: SELL SBIN FUT 2214 STOPLOSS 2246.35 TARGET 2183/2164

Intraday Calls 27 May 2010

• BUY INFOSYSTCH JUNE FUT 2619 STOPLOSS 2605 TARGET 2633/2653(BOTH TARGET ACHIEVED)
• BUY SAIL JUNE FUT 194.50 STOPLOSS 191.55 TARGET 196.40/200.55(BOTH TARGET ACHIEVED)
• BUY AXIS BANK JUNE FUT 1164 STOPLOSS 1158 TARGET 1174/1190 (CASH & FUT BOTH)(BOTH TARGET ACHIEVED)
• SELL TATAMOTORS JUNE FUT 725 STOPLOSS 730 TARGET 715/701(SL TRIG)
• SELL SBIN JUNE FUT 2184 STOPLOSS 2200 TARGET 2175/2160/2142(SL TRIG)

Factory orders and new-home sales rise in April- IN USA

WASHINGTON (AP) -- The economic recovery got a lift in April as orders for large manufactured goods surged while sales of new homes benefited from homebuyer tax credits. Manufacturing is helping drive the rebound. But some economists worry about the threat posed to U.S. exports from the widening debt crisis in Europe. And some fear that home sales will falter in coming months because the tax breaks for buyers have expired. Still, economists found the two Commerce Department reports released Wednesday generally encouraging. "These are very strong numbers which suggests that the second quarter started off on a very solid note," said Mark Zandi, chief economist at Moody's Analytics. Demand for commercial aircraft lifted orders for durable goods 2.9 percent last month. That was the best showing in three months. Excluding transportation, orders fell 1 percent in April. But that came after the March figures were revised to show a 4.8 percent jump. A separate report showed sales of new single-family homes jumped 14.8 percent in April. That gain followed a 29.8 percent surge in March, the biggest monthly increase in 47 years. Home sales have surged this spring as buyers rushed to sign sales contracts before tax credits expired on April 30. Historically low mortgage rates also helped fuel purchases. But sales are expected to slump in the coming months as households deal with slow job growth and tight credit. Even with sales rising, the median price of a new home tumbled last month: It dropped 9.6 percent to $198,400. That indicates continued stress in the housing market. Manufacturing has held steady during the recovery. U.S. companies are benefiting from rising demand at home and in major export markets. But some fear the debt crisis in Europe could derail the global recovery and depress U.S. exports. The overall economy, as measured by the gross domestic product, grew at an annual rate of 3.2 percent in the January-March quarter. Economists thinks that figure will be revised slightly higher to 3.4 percent on Thursday. Zandi said he expected GDP growth to dip slightly to just below 3 percent in the second quarter, partly because he thinks Europe's debt problems will weigh on U.S. exports. Growth may slow further in the second half of the year to around 2.5 percent, he said. "I believe our recovery will be strong enough to weather the storm coming from Europe, but it will be a test," Zandi said. The rise in April orders was led by a 228 percent surge in demand for commercial aircraft, a volatile category. Boeing Co. booked orders for 34 new 777 planes, minus four cancellations. The orders included four freighters for FedEx, which has said it sees the economy improving. Last year, Boeing cut production rates. Now, with demand rising, Boeing has said it will speed up production of the 777 as well as its large 747 next year. It will also accelerate production of the smaller 737 in 2012. Orders for motor vehicles climbed 1.6 percent in April. Total transportation orders rose 16.1 percent. The 1 percent drop in orders excluding transportation resulted from declines in some sectors, such as heavy machinery, that had seen big gains in March. Analysts said the slight dip is a momentary pause and not a sign of weakness. The two months of big increases in new-home sales pushed activity to the highest level since May 2008. Sales remain well below the peaks set at the height of the housing boom. Still, luxury homebuilder Toll Brothers Inc. posted a narrower loss in its latest quarter and saw a surge in orders for new homes. Toll's new-home contracts jumped 41 percent in the February-April period. And the value of the builder's backlog increased for the first time in years, the company said. CEO Robert Toll said customers are becoming more confident in their job security, their ability to sell previous homes and the outlook for home prices. But he expects only a gradual recovery as homebuyers grapple with high unemployment and volatility in the financial markets. There are indications that the surge in overall home sales has slowed this month. The number of buyers applying for a mortgage last week fell to its lowest level in 13 years, the Mortgage Bankers Association said Wednesday. The trade group's purchase index dropped 3.3 percent even as rates on 30-year fixed loans hit their lowest point of this year. New-home sales showed strength in all areas of the country in April except the Northeast, where activity was unchanged. Sales rose 31.6 percent in the Midwest, 21.7 percent in the West and 10.8 percent in the South. AP Airlines Writer Joshua Freed in Minneapolis and AP Real Estate Writers J.W. Elphinstone in New York and Alex Veiga in Los Angeles contributed to this report. ("Factory orders and new-home sales rise in April"); Sources : yahoofinance.com

Intraday Calls 26 May 2010

OUR LAST RECOMMENDATION ON 25 MAY 2010: (ROCK WITH MARKET)

• BUY HDFC 2615 STOPLOSS 2590 TARGET 2642/2680(CASH ONLY)(BOTH TARGET ACHIEVED)
• POSITIONAL CALL : BUY SESAGOA JUNE FUT 311 STOPLOSS 300 TARGET 323/338(1ST TARGET ACHIEVED)
• BUY TATAMOTORS JUNE FUT 688 STOPLOSS 679 TARGET 694/708(1ST TARGET ACHIEVED)

Today's Calls 26 May 2010

• POSITIONAL RECOMMENDATION : BUY ICICIBANK JUNE FUT 827 STOPLOSS 815 TARGET 856/893 BUY IN CASH ICICIBANK 838 STOPLOSS 825 TARGET 866/903

Intraday Calls 25 May 2010

• BUY HDFC 2615 STOPLOSS 2590 TARGET 2642/2680(CASH ONLY)
• POSITIONAL CALL : BUY SESAGOA JUNE FUT 311 STOPLOSS 300 TARGET 323/338
• BUY TATAMOTORS JUNE FUT 688 STOPLOSS 679 TARGET 694/708

Intraday Calls 24 May 2010

• SELL AXIS BANK FUT 1226 STOPLOSS 1240 TARGET 1214/1197(1ST TARGET ACHIEVED)
• POSITIONAL CALL :SELL SBIN FUT 2285 STOPLOSS 2317 TARGET 2255/2212(1ST TARGET ACHIEVED AND MADE NEW LOW 2225 BOOK PROFIT)

BoR approves swap ratio at 1:4.72

The Board of Bank of Rajasthan (BoR) today approved the swap ratio of 1:4.72 as offered by ICICI Bank to merge the two entities. "The swap ratio of 1:4.72 has been approved by the board today," BoR's Director K N Bhandari told reporters here after the board meeting. ICICI Bank board also met today to discuss the merger proposal. With BoR board approving the swap ratio the proposal will now go to the Extraordinary General Meeting (EGM) slated on June 21, he said. Asked whether the merger will adversely impact BoR employees, Bhandari said, "All BoR employees will be retained and there will no job losses."

Intraday Calls 21 May 2010

OUR LAST RECOMMENDATION ON 20 MAY 2010:

• SELL ONGC FUT 1116 STOPLOSS 1154 TARGET 1090/1077(1ST TARGET ACHIEVED)

RECOMMENDATION ON 21 MAY 2010:

• BUY SESAGOA FUT 336 STOPLOSS 331 TARGET 349(BOOK PROFIT AT 341.75)
• POSITIONAL CALL : BUY RELIANCE FUT 985 STOPLOSS 970 TARGET 1016/1050
• BUY BHUSHAN STEEL 1378 STOPLOSS 1362 TARGET 1397/1420(CASH OR FUT BOTH)(BOTH TARGET ACHIEVED)
• BUY JSWSTEEL FUT 1043 STOPLOSS 1038 TARGET 1072(TARGET ACHIEVED)
• DO NOT MISS THIS RECOMMENDATION: BUY HDFC FUT 2690 STOPLOSS 2674 TARGET 2723/2740/2790 (CASH OR FUT BOTH)(1ST & 2ND TARGET ACHIEVED)
• SELL SAIL FUT 201 STOPLOSS 203 TARGET 196(SL TRIG)

Fed says Europe crisis threatens economy - Wall Street

By Pedro Nicolaci da Costa WASHINGTON (Reuters) - Europe’s debt crisis poses a “potentially serious” risk to the U.S. economic recovery because it threatens global credit markets and large American banks, a top Federal Reserve official said on Thursday. Fed Governor Daniel Tarullo said Europe’s debt woes, if not contained, could cause financial markets to freeze and spark a global crisis akin to the market meltdown of late 2008. Until last week, Fed officials had been playing down the possible impact to the United States from Europe’s turmoil. “The European sovereign debt problems are a potentially serious setback,” Tarullo said in testimony prepared for deliver to two congressional subcommittees. Thursday marked another turbulent day in global financial markets. U.S. stocks plunged about 2.5 percent and investors fled from risky assets around the world. The euro, which this week hit a four-year low, was again under pressure. Investors’ anxiety still centers on Greece, but fears have grown that even the roughly $1 trillion emergency fund put together by the Europe Union and the International Monetary will not be enough to solve Europe’s debt problems. “Investors are aware that this package cannot ultimately relieve the need for real, and likely painful, fiscal reforms in the euro area,” said Tarullo. The remarks were an unusually detailed pronouncement on economic matters from a Fed governor who tends to focus on regulatory issues. “If sovereign problems in peripheral Europe were to spill over to cause difficulties more broadly throughout Europe, U.S. banks would face larger losses on their considerable overall credit exposures,” Tarullo said. “In addition to imposing direct losses on U.S. institutions, a heightening of financial stresses in Europe could be transmitted to financial markets globally.” To some extent, financial markets are already showing signs of increased strain, buttressing the view of those who believe the Fed will likely leave U.S. interest rates near zero percent until sometime next year. The U.S. economy has been recovering relatively quickly since hitting a bottom in the summer of 2009. Gross domestic product, the broadest measure of total economic output, jumped at a 3.2 percent annual rate in the first quarter. But that recovery could be pressured by a reduction in global trade if the European outlook worsens, Tarullo said. Ted Truman, a former Treasury official who is now a senior fellow at the Peterson Institute, and who will testify to the congressional subcommittees following Tarullo, said the threat is very real. “The risk is that the European situation will spiral out of control, spread within Europe beyond Greece and push Europe back into recession, and further damage the U.S. and global economy and financial system,” he said in his prepared testimony. Sources: Yahoo finance

Intraday Calls 20 May 2010

• SELL ONGC FUT 1116 STOPLOSS 1154 TARGET 1090/1077
• SELL IBREALEST FUT 158 STOPLOSS 161.50 TARGET 155.30/152.75(1ST TARGET AVHIEVED)
• SELL GAIL 450 STOPLOSS 456 TARGET 444/440(IN CASH ONLY)(BOTH TARGET ACHIEVED)
• BUY TATAMOTORS FUT 720 STOPLOSS 716.10 TARGET 734.70(SL TRIG)

Intraday Calls 19 May 2010

• BUY SESAGOA FUT 364 STOPLOSS 359.65 TARGET 369/371(1ST TARGET ACHIEVED)
• BUY TATAMOTORS 750 STOPLOSS 744.50 TARGET 759/762(CASH & FUTURE)

Intraday Calls 18 May 2010

• SELL IBREALEST FUT 169.50 NO STOPLOSS TARGET 166/165(BOTH TARGET ACHIEVED)
• BUY BHEL 2292 STOPLOSS 2275 TARGET 2315/2350 (IN CASH ONLY)(1ST TARGET ACHIEVED&BOOK PROFIT 2332)
• POSITIONAL CALL : BUY ABAN 795 STOPLOSS 750 TARGET 874.50/914.25
• POSITIONAL CALL : SELL SBIN FUT 2267 STOPLOSS 2293 TARGET 2245/2220(SL TRIG)
• BUY SAIL FUT 208 STOPLOSS 205 TARGET 211.75/213.10(BOTH TARGET ACHIEVED)
• SELL LT FUT 1643 STOPLOSS 1659 TARGET 1632/1621(SL TRIG)

Intraday Calls 17 May 2010

• BUY SESAGOA FUT 368 STOPLOSS 363 TARGET 375/378/390(ALL TARGET ACHIEVED)
• BUY ULTRATECH CEMENT 912 STOPLOSS 905 TARGET 922/938 (IN CASH ONLY) (BOTH ACHIEVED AT 921)
• BUY BANKNIFTY FUT 9355 STOPLOSS 9300 TARGET 9455/9470(BOTH TARGET ACHIEVED)

Intraday Calls 14 May 2010

• OUR POSITIONAL CALL ON 11 MAY 2010 : SELL SESAGOA FUT 401 STOPLOSS 416 TARGET 377(BOOK PROFIT 385)
• OUR LAST RECOMMENDATION ON 13 MAY 2010: SELL MARUTI FUT 1280 STOPLOSS 1292 TARGET 1264/1260(1ST TARGET ACHIEVED)
• SELL ONGC FUT 1054 STOPLOSS 1062 TARGET 1042.40(TARGET ACHIEVED)

Live Trading Session on Sunday May 16, 2010 : Sources Nse India

This is with reference to circular no. 090 (Download Ref No.NSE/CMTR/14775) dated May 13, 2010 regarding the Special live trading session on Sunday May 16, 2010. In this regard, members may please note that the timings for files uploaded and downloaded by Clearing Corporation on May 16, 2010 will be the same as on a normal trading day. It may also be noted that the cut-off time for reporting/modifying institutional trades done on May 14, 2010 and May 16, 2010 will be 9:30 a.m on May 17, 2010. Kindly note that the Early Pay–in and Collateral Updation facility will not be available on May 16, 2010. Please read this CIRCULAR on NSEINDIA

Food inflation inches up to 16.44%

The annual food articles inflation inched up marginally to 16.44 per cent for the the week ended May 1 against 16.04 per cent in the previous week. The index for primary articles that also include food articles rose by 2.9 per cent to 299.5 (provisional) from 291.2 (provisional) for the previous week. The annual rate of inflation for primary articles, calculated on point to point basis, stood at 16.76 per cent (provisional) for the week ended 01/05/2010 over (02/05/2009) as compared to 13.93 percent (provisional) for the previous week (ended 24/04/2010) and 6.39 per cent during the corresponding week (ended 02/05/2009) of the previous year. The index for food articles group rose by 0.6 per cent to 294.0 (provisional) from 292.3 (provisional) for the previous week due to higher prices of tea (5%), fruits & vegetables and fish-inland (2% each) and urad, arhar, masur and condiments & spices (1% each). However, the prices of barley (2%) and maize, ragi and jowar (1% each) declined. The index for non-food articles group rose by 9.9 per cent to 283.1 (provisional) from 257.5 (provisional) for the previous week due to higher prices of sugarcane (50%), raw cotton (2%) and copra, sunflower, castor seed and linseed (1% each). However, the prices of raw rubber (2%) and tobacco (1%) declined. The index for the fuel group rose by 0.1 per cent to 365.3 (provisional) from 365.1 (provisional) for the previous week due to higher prices of lubricants (3%) and furnace oil (1%).

Intraday Calls 13 May 2010

• SELL SBIN FUT 2335 STOPLOSS 2352 TARGET 2318/2300(1ST TAREGT ACHIEVED)
• SELL LT FUT 1578 STOPLOSS 1589.50 TARGET 1557/1551(BOTH TARGET ACHIEVED)
• SELL MARUTI FUT 1280 STOPLOSS 1292 TARGET 1264/1260

Intraday Call 11 May 2010

• POSITIONAL CALL: SELL GRASIM FUT 2627 STOPLOSS 2680 TARGET 2580/2560(1ST TARGET ACHIEVED)
• POSITIONAL CALL: SELL SBIN FUT 2327 STOPLOSS 2358 TARGET 2296/2280(BOTH TARGET ACHIEVED)
• POSITIONAL CALL: SELL SESAGOA FUT 401 STOPLOSS 416 TARGET 377

Intraday calls 10 May 2010

• SELL NIFTY FUT 5090 STOPLOSS 5120 TARGET 5044/5019(SL TRIG)
• SELL BHUSHAN STEEL FUT 1621 STOPLOSS 1631 TARGET 1600/1590

Intraday Calls 07 May 2010

• BUY CNXIT FUT 5780 STOPLOSS 5746 TARGET 5808/5846.40

Verdict in Reliance gas dispute case tomorrow

The Supreme Court will pronounce on Friday its verdict on the nation’s most talked corporate battle over gas supply, outcome of which will shape the future of flagship energy firms run by brothers Mukesh and Anil Ambani. A three-judge bench headed by Chief Justice K G Balakrishnan, who demits office on Tuesday, will give its judgement on the gas pricing and supply dispute between Reliance Industries (RIL) and Reliance Natural Resources (RNRL) . The apex court will decide if RNRL is entitled to get 28 million cubic meters a day from RIL’s eastern offshore KG-D6 fields, at $2.34 per mmBtu, a price 44 per cent lower than government approved rates. RNRL claims at least one-third of the peak output from KG-D6 flows citing a 2005 family agreement that divided the Dhirubhai Ambani empire between the two brothers. RIL, already India’s largest firm by market cap, is on the verge of becoming the nation’s biggest firm by profit this year, but for a judgement where it would have to sell gas at lower rate while paying royalty and taxes at $4.2 per mmBtu. On the other hand, Anil, may have to rework plans for the ambitious 7,800 MW planned power project at Dadri in Uttar Pradesh if the apex court refuses to give it preferential treatment in supplies and price. Chief Justice K.G. Balakrishnan, who had after 26 days of hearing, reserved a judgement on lawsuits fought by high profile lawyers Harish Salve (for RIL) and Ram Jethmalani (for RNRL) on December 18, is due to demit office on May 11. Before coming to the Supreme Court, the Bombay High Court had ruled that RNRL was entitled to get gas at concessional rates as had been decided in the family agreement. However in the apex court, the government, through the Oil Ministry, impleaded in the case asserting that natural gas was a national property and it cannot be surreptitiously divided through private agreements. If the three-judge panel upholds the Bombay High Court verdict, RIL will have to supply gas to Anil Ambani group’s proposed Dadri power plant at $2.34 per mmBtu, 44 per cent lower than the government set price. That may not be a problem for RIL unless the court says the government fixed price of $4.2 per mmBtu for KG-D6 should be used for calculation for taxes and royalty. In such a scenario, RIL stands to lose huge revenues over the 17 year contract period. Also, RIL will have to find new source of gas to meet its obligation as KG-D6 field may not be producing 28 mmcmd for 17 year from the date Dadri is commissioned, which may be at least three years from now. If, however, the RIL contention that it cannot sell gas at price less than $4.20 per million British thermal unit as set by the government and to customers other than those identified in accordance with the Gas Utilisation Policy, is upheld, the Anil Ambani Group will have to rework plans for the 7,800 MW Dadri plant. RIL says it was robbed of its freedom to market gas after RNRL, in the run-up for fixation of price of KG-D6 in 2007, sought a GUP. The apex court heard the case for 26 days since it commenced on October 20. It also witnessed the recusal of Justice R.V. Raveendran from the Bench after hearing the matter for six days on the ground that he held shares of both RIL and RNRL Sources: THE HINDU

Intraday Call 06 May 2010

• SELL TATAMOTORS FUT 824 STOPLOSS 832 TARGET 809(TARGET ACHIEVED)
• SELL UNITECH FUT 77.60 STOPLOSS 78 TARGET 77.05/76.15(BOTH TARGET ACHIEVED)
• BUY HDFCBANK FUT 1899 STOPLOSS 1880 TARGET 1909.65/1926.95
• BUY LT FUT 1515 STOPLOSS 1503 TARGET 1525/1544(SL TRIG)

Temasek gets approval to buy 5 pc in NSE

Singapore’s state-owned investment house Temasek Holdings (Private) Ltd today said that it has received regulatory approvals to buy 5 per cent stake in the National Stock Exchange of India (NSE). Temasek is paying between USD 150 million and USD 180 million for the stake to be acquired from NYSE Euronext, according to financial experts. “Temasek continues to focus on investments in India and believes in its long—term potential,” said Manish Kejriwal, a senior managing director at Temasek, which manages some USD172 billion worth of assets. “We see our investment in NSE as a good proxy to India’s economic growth and the development of its capital markets,” Kajriwal said. This is Temasek’s second investment in India within the past month. It had reached an agreement to invest USD 200 million in India’s GMR Energy. In 2007, NYSE Euronext, together with General Atlantic and Softbank’s Asian infrastructure fund, had paid USD 490 million for a 20 per cent stake in NSE. NYSE Euronext share was USD 115 million. NSE is India’s leading multi—asset class exchange. Its current shareholders include Indian and global banks, insurance companies and investors. As at March 2010, there were 1,470 companies listed on the exchange with a combined market capitalisation of Rs 6,009,173 crores (approximately USD 1.3 trillion). In March 2010, the average daily trading turnover on the exchange was Rs 88,305 crores or approximately USD 19.6 billion, of which Rs 13,631 crores or approximately USD 3 billion is in cash equities and Rs 74,674 crores or approximately USD16.6 billion in derivatives.

Sources : THE HINDU

Greece debt fears push euro to 13-month low

The euro has continued its slide against the dollar, reflecting the continued loss of investor confidence in some European economies. The euro has fallen to $1.2954 - its lowest level for more than a year. Share markets in Asia also dropped after heavy falls in Europe on Tuesday. The Singapore market was down 1.5% and Hong Kong's Hang Seng index fell 2.1%. Investors remain concerned over the debt crisis in Greece, and the fear that it may spread to other economies. On Tuesday, the Spanish Prime Minister Luis Rodriguez Zapatero was forced to deny rumours that Spain would be next to seek financial rescue, following the agreement of a 110bn-euro ($143bn; £95bn) bail-out package for Greece over the weekend. Investors have cited Spain, along with Portugal, Ireland and Italy, as the eurozone economies with the most worrying debt problems next to Greece. Spain and Portugal's cost of borrowing on the bond markets rose again on Tuesday, reflecting investors' fears of default. There is also scepticism over the chances of success of the Greek rescue plan, with the necessary cost-cutting measures in Greece proving domestically unpopular. Wednesday sees the beginning of a huge general strike in Greece in protest at public sector cuts. Sources : BBC News

Intraday Calls 05 May 2010

• BUY ACC FUT 867.50 STOPLOSS 856.50 TARGET 875./881(1ST TARGET ACHIEVED)
• BUY RELIANCE FUT 1011.50 STOPLOSS 1000 TARGET 1019/1030(1ST TARGET ACHIEVED)
• BUY SESAGOA FUT 377 STOPLOSS 372.90 TARGET 383.55/390.45(BOTH TARGET ACHIEVED)
• BUY CNXIT 5800 STOPLOSS 5780 TARGET 5820/5852(BOTH TARGET ACHIEVED)
• BUY GRASIM IN CASH ONLY 2552 STOPLOSS 2527.85 TARGET 2597/2605.60(BOTH TARGET ACHIEVED)
• BUY BHUSHANSTEEL FUT 1588 STOPLOSS 1570 TARGET 1617(BOOK PROFIT AT 1613)
• SELL BANKNIFTY FUT 9475 STOPLOSS 9525 TARGET 9430/9390(STOPLOSS TRIG)
• BUY TATAPOWER FUT 1310 STOPLOSS 1299 TARGET 1334/1345(BOOK PROFIT AT 1319)
• BUY STER IN CASH ONLY 739 STOPLOSS 730 TARGET 752(TARGET ACHIEVED)

JSW Steel posts Rs 1,598-crore profit in FY10

MUMBAI: JSW Steel, India’s third-biggest steelmaker, on Monday said its board has agreed to allot warrants to promoters to reduce debts and part finance capex plans. The issue of the 1.75 crore warrants convertible into equity shares, will raise about Rs 2,100 crore, according to the pricing based on Sebi’s norms, said people connected with the development. The warrants will be convertible into equity shares within 18 months and will raise the promoter holding to 49.7% from the current 45%, said a JSW statement. The company said it has identified coking coal assets in the US, along with railway load out and barge facility. The company board has approved the acquisition of these assets which have resources totalling 123 million tonne. “While one of these mines is operating, the rest can be made operational over 24 months. The business plan envisages to commence production of coking coal of 1 million tonne in the first year, to be ramped up to 3 million tonne in the third year,” said the JSW statement. The company said increased demand from construction and automobile companies has helped it post a net profit of Rs 611 crore for the fourth quarter, while the sales stood at Rs 5,844 crore. For the full year, JSW Steel’s net profit stood at Rs 1,598 crore, with a revenue totalled Rs 20,211 crore. JSW Steel said its fourth quarter performance was aided by higher volumes and firm prices. The company’s crude steel volumes grew 66%, while saleable steel was up 43%, compared to the same period last year. The board has proposed a dividend of Rs 9.50 per share for the year ended March 31, 2010.

NYSE sells 5% stake in NSE to Temasek

MUMBAI: US-based stock exchange NYSE today announced selling its five per cent stake in India’s top bourse NSE to Singapore government’s investment arm Temasek. The deal marks exit of New York Stock Exchange from National Stock Exchange and Temasek’s entry as shareholder. The transaction has received the necessary regulatory approvals, NSE and Temasek said in a joint statement, but did not elaborate on the financial details.. NYSE had acquired 5 per cent of NSE in 2007 for 115 million dollars, valuing the bourse at about 2.3 billion dollars. However, in June last year, private equity firm Norwest Venture Partners bought a little over two per cent stake from IL&FS Securities Services in a secondary transaction for Rs 250 crore, thus valuing NSE at about 2.5 billion dollars. NSE’s current shareholders include Indian and global banks, insurance companies as also investment companies from India and abroad. Shares of close to 1,500 companies are traded on NSE with a combined market capitalisation of over Rs 60,00,000 crore. The average daily turnover at the exchange is close to 20 billion dollars (about Rs 88,000 crore). Commenting on the deal, NSE Managing Director Ravi Narain said: “Temasek is a well-respected investor and we welcome them as a shareholder.” Temasek Senior MD Manish Kejriwal said that the company sees its investment in NSE as a “good proxy” to India’s economic growth and development of its capital markets. source: Economictimes

Intraday calls 03 May 2010

• BTST : BUY SAIL FUT 218 STOPLOSS 214 TARGET 221/225( 1ST TARGET ACHIEVED)
• OUR LAST DAY RECOMMENDATION :SELL TITAN FUT 2142 STOPLOSS 2160 TARGET 2113.30/2106.65( 1ST TARGET ACHIEVED AND TODAY'S LOW 2110)
• BUY CNXIT FUT 5912 STOPLOSS 5890 TARGET 5940/5963(1ST TARGET ACHIEVED)
• BUY BHUSANSTEEL FUT 1750 STOPLOSS 1734.80 TARGET 1763.40/1773.65
• BUY SESAGOA FUT OR CASH 398 STOPLOSS 387.75 TARGET 405.20/413.60/431.05 ( U CAN HOLD ALSO)

Stocks turn lower after weaker-than-expected GDP - Wall Street

Disappointment over two economic reports and worries about a criminal investigation of Goldman Sachs sent stocks falling sharply. Investors lost some of their optimism about the economy Friday after the government’s weaker-than-expected gross domestic product report and news of a drop in consumer sentiment. Concerns surrounding financial regulation contributed to the selling, which took the Dow Jones industrial average down more than 100 points. “The market may just be a little bit tired,” said Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn. “A lot of good news is priced into the market.” Many analysts have said the stock market was poised for a pullback after it climbed steadily for nearly three months. In the last trading session of April, the Dow is still set to post its third straight monthly gain. However it looks like it will snap an eight-week winning streak. Friday’s pullback began after the Commerce Department said the GDP rose at a 3.2 percent annual pace in the January-March period. That was below the 3.4 percent rate economists polled by Thomson Reuters had forecast. While the GDP was up for the third straight quarter, it was down from the fourth quarter’s 5.6 percent, a rate that was inflated by government stimulus spending and companies restocking their depleted inventories. For the economy to show healthy growth, it would have to grow at a faster pace than it did the first three months of the year. Growth would have to equal 5 percent for all of 2010 just to lower the average jobless rate for the year by 1 percentage point. The Labor Department will release its April employment report next week. Economists predict the unemployment rate held steady at 9.7 percent. Analysts were relatively upbeat that the first-quarter growth rate, though slow, probably was good enough to help avoid a “double-dip” recession. “GDP was slightly lower than expectations, but shows the economic recovery is probably sustainable,” said Peter Cardillo, chief market economist at Avalon Partners Inc. in New York. Investors were disappointed by a separate report from Reuters and the University of Michigan that showed consumer sentiment rose to 72.2 in April from a preliminary April reading of 69.5. However, it was still lower than March’s 73.6. Economists had forecast a reading of 71. The consumer sentiment report shows the “consumer isn’t fully recovered,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. Investors want to see data that shows month-over-month improvement, Luschini added. Financial stocks were pulled down by Goldman Sachs Group Inc., which is now facing a criminal investigation for its dealings in subprime mortgage securities. A Standard & Poor’s equity analyst downgraded Goldman Sachs’s stock to a “sell” rating Friday morning. Its shares dropped more than 9 percent. In afternoon trading, the Dow fell 106.33, or 1 percent, to 11,060.99. The Standard & Poor’s 500 index fell 15.03, or 1.3 percent, to 1,191.75, while the Nasdaq composite index fell 37.11, or 1.5 percent, to 2,474.81. The Chicago Purchasing Managers Index rose this month, further evidence of a recovery in the manufacturing sector. The index, which reflects economic activity in the Midwest, jumped to 63.8 in April, from 58.8 last month. Economists expected the index to rise to 60. Investors were keeping an eye on the European debt problems. The biggest concerns are in Greece, where the country faces loan repayments in a couple of weeks. If it is unable to tap a joint European Union and International Monetary Fund bailout package before May 19, the country could default on its debt. Analysts fear that debt problems will spread across the continent and stunt a global economic recovery. Greece, Portugal and Spain all saw their debt ratings slashed by Standard & Poor’s earlier this week. Greece’s was cut to junk status. Lower ratings make it more expensive to borrow money, which would only add to debt burdens already facing some European nations. European markets fell. Britain’s FTSE 100 dropped 1.2 percent, Germany’s DAX index fell 0.2 percent, and France’s CAC-40 fell 0.8 percent. The euro rose against the dollar, but analysts remain cautious about its long-term future. Some have said that the debt problems could further drive down its value or lead to a split among the 16 countries that share the currency. Meanwhile, Goldman Sachs is again contending with negative headlines. The big Wall Street bank — which is already facing civil fraud charges for misrepresenting details about subprime mortgage securities — is now also facing a criminal investigation. “They’re really going after Goldman pretty hard,” said Ryan Detrick, senior technical analyst at Schaeffer’s Investment Research. “That’s got people on edge.” The Justice Department has opened a criminal investigation against the bank over mortgage securities deals it arranged. Many blame the credit crisis on the collapse of similar securities which were traded by many banks around the world. Detrick said that after all asset bubbles, regulators and politicians look for companies or executives to blame and Goldman is currently at the top of that list. Goldman shares tumbled $15.31, or 9.5 percent, to $144.93. Other big banks with trading operations like Morgan Stanley and JPMorgan Chase & Co. fell more than 3 percent. About two stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1 billion shares. Bond prices rose as stocks dipped. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.67 percent from 3.73 percent late Thursday. Gold and oil prices both rose. The Russell 2000 index of smaller companies fell 15.92, or 2.1 percent, to 721.82.

Intraday Calls 30 Apr. 2010

• YESTERDAY RECOMMENDATION: BUY HDIL MAY FUT 270.25 STOPLOSS 265.25 TARGET 274.95/280.65(1ST TARGET ACHIEVED)
• SELL UNITECH FUT 84.45 STOPLOSS 85.25 TARGET 83.95/82.90(1ST TARGET ACHIEVED)
• SELL TITAN FUT 2142 STOPLOSS 2160 TARGET 2113.30/2106.65
• OPTION STRATERGY : SELL 1 LOT RELIANCE 1120 CA AT RS 8 AND SELL 1 LOT RELIANCE 960 PA AT RS 8.50 "HOLD ON EXPIRY"
• SELL MCDOWELL FUT 1246 STOPLOSS 1258 TARGET 1236/1228(SL TRIG)
• BTST : BUY SAIL FUT 218 STOPLOSS 214 TARGET 221/225

Intraday Call 29 Apr. 2010

• STRATGEY CALL: SELL NIFTY 1 LOT 5400 CE AT 43.80 AND SELL NIFTY 1 LOT 5000 PE AT 44"HOLD ON EXPIRY"
• SELL JSWSTEEL FUT 1209 STOPLOSS 1217 TARGET 1202.15/1194(SL TRIG)
• BUY HEROHONDA MAY FUT 1843 NO STOPLOSS TARGET 1860/1890(1ST TARGET ACHIEVED)
• BUY HDIL MAY FUT 270.25 STOPLOSS 265.25 TARGET 274.95/280.65

Intraday Calls 28 Apr. 2010

• BUY JSWSTEEL FUT 1180 STOPLOSS 1176.15 TARGET 1191.05( BOOK PROFIT AT 1185 AND MADE NEW HIGH 1189.95)
• BUY BHEL FUT 2466 STOPLOSS 2457 TARGET 2486.80/2497.90

THIS RECOMMENDATION GAVE ON 26 APR.2010

• SELL AXISBANK FUT 1270 STOPLOSS 1285 TARGET 1251/1224(1ST TARGET ACHIEVED)

Maruti’s royalty to Suzuki rises 47% as it introduces new models

Maruti paid Rs1,000.93 cr in royalties to the Japanese firm in 2009-10, against Rs679 cr a year earlier. Mumbai: The royalty payments of Maruti Suzuki India Ltd to its Japanese parent have surged as India’s biggest car maker has stepped up the introduction of new models such as the Ritz and Eeco as it fights off competition to hold on to its top ranking. In the fiscal ended 31 March, royalty payments to Suzuki Motor Corp. rose 47% to Rs1,000.93 crore from Rs679 crore a year earlier. Maruti has been introducing at least one new model every year since 2003. Royalties are typically calculated as a percentage of net sales and derived from the use of an asset or a fixed price per unit sold of an item. Royalty as a percentage of net sales rose marginally to 3.5% from 3.3% a year ago. The upper limit on royalty as a percentage of net sales has been capped at 5% by the Reserve Bank of India. It’s factored in after reducing the value of the imported content. According to Ajay Seth, chief financial officer at Maruti, the company paid royalty on 86% of its total unit sales, 5% more than a year ago. In fiscal 2009-10, the company sold 1.18 million units in the domestic and export markets. While the number may rise in the next few years, analysts aren’t too perturbed by the increased payout. “In order to ensure that market share does not taper off, new model launches are a necessity and not a choice,” said Joseph George, analyst at BNP Paribas Securities India Pvt. Ltd. Royalty payments are a proxy for research and development expenses, he said. While Maruti launched eight new models in a span of 20 years from 1983 to 2003, it has introduced a similar number since that time, George said. Maruti needs to introduce new models as rivals try to capture market share with releases such as Ford India Pvt. Ltd’s Figo, Volkswagen India Pvt. Ltd’s Polo and General Motors India Ltd’s Beat. Meanwhile, the spiralling royalty costs may be reined in once Maruti’s in-house research and development centre at Rohtak in Haryana is set up. The company wants to produce a car designed and developed indigenously from this facility by 2012. “The India designed and developed car will help the company reduce their royalty bill gradually,” said Mahantesh Sabarad, analyst at Fortune Equity Brokers Pvt. Ltd. Royalty payments in the years ahead will be a function of a host of factors, said Maruti’s Seth. “It will depend on the kind of work we do there, and the use of technology,” he said. While there may be a reduction in the outgo, it’s premature to put a number to that, he said. Typically, new models attract a higher technical fee. As the model matures in its life cycle and the investment on fixed costs is amortized, royalty on the model diminishes, eventually exempting it from the fee. Seth said the Omni, 800 and Gypsy models do not attract any royalty. Maruti currently sells the 800 only in tier II and tier III cities, and will eventually discontinue its entry-level model. The phasing out of the 800, sales of which have been averaging 1,500-2,000 a month, will not have much impact on the royalty outgo. If the company phases out the Omni, which has been averaging 8,000 units a month or 10% of total sales, overall royalty outgo may rise as buyers switch to a new model. Maruti’s shares dropped 3.88% to close at Rs1,283.15 each on the Bombay Stock Exchange. A report released on Tuesday by Prabhudas Lilladher Pvt. Ltd showed that Ebidta (earnings before interest, taxes, depreciation and amortization) margins per car decreased to Rs34,000 in the fourth quarter of last fiscal compared with Rs39,000 in the previous quarter. “The aggressive pricing of the recently launched Wagon R and price cuts by other manufacturers make us believe that the industry’s profitability is in for a decline,” the report said. Sources : Live mint

Markets turn red as Greece, Portugal are downgraded

NEW YORK (AP) — U.S. stocks are following European markets lower after Portugal’s debt was downgraded, deepening fears that Europe’s debt problems are spreading. Standard & Poor’s slashed Portugal’s credit rating Tuesday, sending stocks sharply lower across Europe. S&P also downgraded Greece’s debt. Investors have been on edge about Greece’s fiscal crisis, and have worried that Portugal could be the next weak European economy to require help. That has undermined confidence in Europe’s shared currency, the euro. The Dow Jones industrial average is down 145.86, or 1.3 percent, at 11,059.17. The Standard & Poor’s 500 index is down 19.79, or 1.6 percent, at 1,192.26, while the Nasdaq composite index is down 35.91, or 1.4 percent, at 2,487.04. Stocks fell early in the day after European shares tumbled on new concerns about Greece’s ability to tap a bailout package to help relieve its debt troubles. Greece has to make a new round of payments on debt on May 19 and there are now questions about whether the country will get access to bailout money before then. The dollar rose against the euro as investors worry that debt problems in Greece and some of the 15 other countries that use the currency will upend an economic rebound on the continent. Most Asian markets fell on concerns that Chinese regulators will try to slow the country’s supercharged economic growth. The government has been trying to slow the country’s real estate market in hopes of avoiding a speculative bubble. source: Yahoo Finance