MARKET BY G.S.ROONGTA

MARKET REVIEW IN BRIEF

The Market continued to be quiet cautions on account of F&O expiry on 27^th Sept 2012. Bulls that are reported to have booked profit have carried forward small position to October expiry helping the market not to face much volatility.

          Global cues were seen positive with Asian, European & Dow Jones future continued to be in positive direction.

          Cement Stock have been out performer on 27/9/12 with almost majority of stocks gained between 10 – 20%.

          India Cement as observed by me in my yesterday recommendation also gained to high of Rs 98.

          The Market in general performed well as far as stock specific action was concerned.

KESHORAM INDUSTRIES LTD

The Company belongs to Mr. B.K.Birla group having large capacities in cement tyres & textile. The textile unit was demerged which is closed ever since a decade.

          Cement is doing well followed by Tyres unit the company’s cement & tyre performance in the year 2011-12 was not much impressive which resulted the stock price of keshoram Ind to fell from high of 400 two years back to below Rs 100 recently.

          Since cement companies are performing well and in-view of this keshoram Ind should also not lag behind as its share price is currently subdued as Rs 138 which looks highly underpriced and may spurt any time once investor’s attention is attracted towards this stock on it’s highly competition business in cement & tyres. 

Nifty snaps September F&O series with a massive gain of over 6%

S&P CNX Nifty finished the September F&O series with a massive gain of over 6%, though for the day, Nifty closed with a quarter percent of loss surrendering below 5,650 mark, as selling crept in the last hour of trade. The index started in green as the undertone was supported by steady inflow of overseas portfolio capital. However, the trade remained volatility throughout the session and caution sneaked in the last leg of trade where it drifted into red. The global cues too remained unsupportive as protests in Spain and Greece over euro zone austerity measures raised fresh concerns over Europe's ability to get its debt crisis under control. Besides, Asian markets ended mostly in red though decline in industrial profits in Chinese market has again raised speculation that its central bank will take measures to support economic growth.

Initially, market started the trade on a flat note and remained on the sidelines in early deals. The sentiments got some support after India made it mandatory for all foreigners to furnish a tax residency certificate of their home country to claim benefits under the double taxation avoidance agreement. The optimism started building up in the market in the late morning session with Benchmarks adding some gains after some sense of comfort was drawn by the investors pursuant to United Progressive Alliance (UPA) coordination committee extending its full support to Prime Minister Dr Manmohan Singh for taking bold initiatives to improve the economic situation in the country. However, investors started turning cautious as ratings agency Moody’s Investors Service anticipated that India’s fiscal deficit will exceed 5.1% despite the recent moves by the government to rein in deficit and has said that the recent reform measures won't improve India's credit profile and only serve as sentiment boosters, as the country is still constrained by its fiscal deficit. Finally the nervousness among traders ahead of the announcement of government’s borrowing calendar for the second-half of the fiscal year, a key indicator of its fiscal discipline, mainly led to the downturn of the bourses. Selling also got intensified in the final hours after the Supreme Court, delivering its opinion on the Presidential Reference moved by the Centre said that auction order must be restricted for the telecom spectrum only and opined that auction cannot be the only method for allocating natural resources.

Meanwhile, most of the sectoral indices on the NSE settled in the red, CNX Energy remained the major loser, down 1.39% followed by CNX PSE down 1.14% and CNX IT down by 1.00% while CNX Media and CNX FMCG rose 2.44% and 1.60% remained the top gainers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, declined 0.35% and reached 16.91.

The India VIX witnessed contraction of 0.35% at 16.91 as compared to its previous close of at 16.97 on Wednesday.

The 50-share S&P CNX Nifty lost 13.95 points or 0.25% to settle at 5,649.50.

Nifty October 2012 futures closed at 5684.30 on Thursday at a premium of 34.80 points over spot closing of 5,649.50, while Nifty November 2012 futures were at 5710.20 at a premium of 60.70 points over spot closing. Nifty October futures saw an addition of 5.45 million (mn) units taking the total outstanding open interest (OI) to 21.82 mn units. The near month October 2012 derivatives contract will expire on October 25, 2012.

From the most active contracts, Tata Motors October 2012 futures were trading at a premium of 1.15 at 261.55 compared with spot closing of 260.40. The number of contracts traded was 16,209.

Among Nifty calls, 5700 SP from the October month expiry was the most active call with an addition of 1.07 million open interest.

Among Nifty puts, 5300 SP from the October month expiry was the most active put with an addition of 2.33 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (4.49 mn) and that for Puts was at 5300 SP (5.07 mn).

The respective Support and Resistance levels are: Resistance 5682.23 -- Pivot Point 5660.96 --Support 5628.23.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.09 for October -month contract.

The top five scrips with highest PCR on OI were PNB 1.78, Central Bank 1.50, ITC 1.43, Asian Paint 1.36, and Wipro 1.04.

Among the most active underlying, IFCI witnessed an addition of 11.22 million of Open Interest in the October month futures contract followed by JP Associates, which witnessed an addition of 8.50 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 7.92 million in the October month futures. Also, Shree Renuka Sugars witnessed an addition of 8.88 million in Open Interest in the October month contract. Finally, Tata Motors witnessed an addition of 6.95 million of Open Interest in the near month futures contract.

MARKET BY G.S.ROONGTA

MARKET IN BRIEF

The market remained subdued on 26 Sept 2012 throughout the session because of F&O expiry on tomorrow as reported yesterday. European & Asian markets were also subdued after a steep rise in last fortnight. There was some stock specific action today specially in U.B group stocks on divestment of promoters stake to foreign based group entities. United breweries, kingfisher untied holding gained by 20 to 25% on stake sale. Aegis chemical shot up smartly from Rs 130 to Rs 152. Likewise there were several other stocks which gained between 10%-20% upper filter circuits.

CEMENT STOCKS RALLIED HIGHER

In our recently recommended stocks, ARVIND Ltd flared up from the level of Rs 68 – 70 to Rs 80. Similarly Elecon Engineering has also shot up to Rs 50.

          Cement stocks attracted renewed buying today. It was perhaps on account of monsoon season coming to end with which construction activities will start picking up.

          Almost all cement stocks rallied higher in all the segments like A – Group, Mid & Small Caps. ACC flared up, Gujarat Ambjua hit a new high so also India Cement, J.K.Laxmi cement also flared up to a new 52 weeks high.

          India Cement stock in mid cap category is still going cheap as Rs 90 compared to its peers because of its promoter group is reported to be entangled in 2G case as otherwise stock is rated to cross higher beyond Rs 100 mark.

          Investors may buy it either now or on a decline between Rs 80 – 85.

MARKET VIEW AND STOCK

MARKET REVIEW IN BRIEF

After a steep rise in stock prices in last two weeks the market has preferred to remain sideways in first two trading session i.e. on 24^th and 25^th Sept 2012.Higher levels attracted profit booking by few investors ahead of expiry of F&O contract for the month of Sept 2012 but it does not mean that the euphoria has ended. The new series of contracts for Oct 2012 will start now which may scale the indices for highest closing of 2011-12 in next couple of days.

THE GREAT EASTERN SHIPPING CO.LTD

This is a blue chip company under shipping sector but has been sluggish for over at least 2 yrs on account of economic slowdown globally. The three year downward cycle in shipping industry is close to end soon if the rise in Baltic index is any fair indication in last fortnight.

          G.E.Shipping which had clocked revenue earning of 3200 & 3400 Cr in 2007-08 and 2008-09 the highest in last 10 yrs with net profit of Rs 1350 and 1400 Cr respectively. The revenue earnings in 2009-10,       2010-11, and 2011-12 fell constantly at 2245 Cr and 1662 Cr and 2016 Cr.

          Correspondingly the net profit was also impacted heavily at 395 Cr, 266 Cr & 143 Cr as against mentioned prior is 2009-10.

          G.E.Shipping with highly professionally managed & due to strong fundamentals escaped itself falling into red like other shipping companies and managed to pay higher dividend @ 80% and again        @ 80 % in 2010-11 & 65% in 2011-12 which speaks the investors’ friendly management policy. At equity capital of Rs 152 Cr the reserve & surplus is as high as Rs 5000 Cr i.e. over 30 times, currently the market price of Rs 250 is highly underpriced looking to its book value, Debit equity (ratio at 0.75 & price earnings ratio being discounted for future earnings as most attractive).Hurry up to add this share in your portfolio.

Nifty ekes out small gains; held 5,650 mark

S&P CNX Nifty snapped the session off the day’s high, eking out small gains after trading lackluster on Tuesday, holding its crucial 5,650 mark. The market witnessed consolidation for second consecutive trading session in the F&O expiry week, as market participants closely awaited the government’s market borrowing calendar for second half of current fiscal scheduled to be released within this week. On the global front, Asian markets made a mixed closing on Tuesday, though the mood in the region remain subdued since morning but few of the indices showed good efforts to close in green in the dying hours. Moreover, European counters traded flat in the early deals as investors remain concerned about global growth and waited for Spain to unveil plans to resolve its fiscal problems. Back home, investors sentiments remained higher on reports suggesting that the PMO is all set to unleash measures aimed at boosting sectors such as industry, energy, finance and infrastructure.

Earlier, market made a decent starts with Nifty recapturing 5,700 level in the morning after government approved a bailout plan for the cash-strapped power utilities, which sent shares exposed to state-owned electricity distributors soaring. But, market failed to hold on to early gains and entered the red terrain as selling intensified in metal stocks. Scrips like Sterlite Industries, Tata Steel, SAIL, Sesa Goa, NMDC and Jindal Steel & Power all edged lower after LMEX, a gauge of six metals traded on the London Metal Exchange, dropped 1.24% on September 24, 2012. Selling in sugar stocks also dampened the sentiments on news that the government deferred a decision on scrapping subsidy on levy sugar under the public distribution system (PDS) quota ahead of the upcoming festive season demand. However, the index gained strength in the second half supported by renewed buying witnessed in FMCG space. Realty stocks too supported the sentiments, extending recent gains as investors bet that retail real estate will get a boost from the entry of foreign supermarket chains in the country, with the government allowing up to 51% foreign direct investment in multi-brand retail sector. In late trade, investors again started booking their profits as cues from global markets remain subdued. Finally, Nifty managed to negotiate a positive close.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX Realty remained the major gainer, up 2.13% followed by CNX FMCG up 1.86% and CNX Media up by 1.39% while CNX Metal and CNX Auto declined 1.39% and 0.79% remained the top losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, tumbled 9.13% and reached 17.11.

The India VIX witnessed contraction of 9.13% at 17.11 as compared to its previous close of at 18.83 on Monday.

The 50-share S&P CNX Nifty gained 4.30 points or 0.08% to settle at 5,673.90.

Nifty September 2012 futures closed at 5683.00 on Tuesday at a premium of 9.10 points over spot closing of 5,673.90, while Nifty October 2012 futures were at 5708.70 at a premium of 34.80 points over spot closing. Nifty September futures saw contraction of 2.33 million (mn) units taking the total outstanding open interest (OI) to 19.20 mn units. The near month September 2012 derivatives contract will expire on Thursday i.e. September 27, 2012.

From the most active contracts, Tata Motors September 2012 futures were trading at a premium of 0.70 at 269.60 compared with spot closing of 268.90. The number of contracts traded was 21,899.

Cairn India September 2012 futures were trading at a discount of 2.90 at 332.20 compared with spot closing of 335.10. The number of contracts traded was 26,490.

BHEL September 2012 futures were at a discount of 0.15 point at 254.40 compared with spot closing of 254.55. The number of contracts traded was 29,757.

Tata Steel September 2012 futures were at a premium of 2.00 point at 401.10 compared with spot closing of 399.10. The number of contracts traded was 16,013.

ICICI Bank September 2012 futures were at a premium of 1.60 point at 1069.45 compared with spot closing of 1067.85. The number of contracts traded was 25,130. 

Among Nifty calls, 5800 SP from the September month expiry was the most active call with an addition of 1.31 million open interest.

Among Nifty puts, 5600 SP from the September month expiry was the most active put with  an addition of 0.16 million open interest.

The maximum OI outstanding for Calls was at 5800 SP (8.95 mn) and that for Puts was at 5600 SP (7.71mn).

The respective Support and Resistance levels are: Resistance 5700.25 -- Pivot Point 5676.35 --Support 5650.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.61 for September-month contract.

The top five scrips with highest PCR on OI were India Infoline 5.33, Mphasis 3.00, Bhusan Steel 3.00, CESC 2.50, and Jindal Steel 2.25.

Among the most active underlying, Suzlon witnessed an addition of 24.80 million of Open Interest in the September month futures contract followed by IFCI, which witnessed contraction of 9.83 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed contraction of 20.52 million in the September month futures. Also, Unitech witnessed contraction of 2.60 million in Open Interest in the September month contract. Finally, Shree Renuka Sugars witnessed contraction of 6.72 million of Open Interest in the near month futures contract.

MARKET REVIEW

The market during this week will have to face large scale squaring up of outstanding position built up in F&O segment both in Call/Put and open position in nifty and stock specific futures.

          In – view of this the market is going to remain highly volatile till F&O position for the month of Sept which will expire on 29^th

September either to be squared up or carried forward to next month for October 2012.

The market is bullish & Sept month expiries of F&O contracts are going to be in favor of bulls.

SHRI DINESH MILLS LTD

The Company is 75 yrs old dealing in woolen textile & felt backed by highly strong fundamentals paying uninterrupted dividend since last several decades.

          Its equity capital which is hardly Rs 528 lacs despite of its old age of 75 yrs out of these Rs 528 lacs, the company has issued liberal bonus issues every after 10 yrs or 50 latest of two bonus issue was in the ratio of 1 : 1 Total bonus issue comprises of 477.54 lacs that means original shareholders are having nearly 8.5 bonus share against one share.

Yet, the company has huge reserves of Rs 91 Cr i.e. 18 times of equity capital which speaks possibility of further issue of bonus share any time by now.

          The book value of the company is nearly Rs 185 with latest EPS of Rs 10 while market price of the share is Rs 80 available at 50% discount is indeed very astonishing. Long term view in the stock aim be highly profitable.

SENSEX AND STOCKS

The Stock market as observed consistently under our newly recommended column flared up to a 14 month high amid all bearish outlooks forecasted by technical experts on time to time.

          BSE sensex hitting a new high near to 19K in intraday session on 21^st Sept gaining atleast by 403 points at 18,752 giving a sense of relaxation to investors. CNX Nifty which is scheduled to hit 5,800 shortly closed higher by 136 points at 5,691.

          Small & medium term investors are still looking confused as stated last week with several of small caps stocks yet not joined the bullish trend but will follow soon no sooner BSE & CNX Nifty crosses 19K and 5.8K margin.

          Readers who have taken position in my recommended stocks such as HindalCo, Tata Steel, SAIL, and ARVIND; stand to have been benefitted by nearly 15% on week on week basis.

SARDA ENERGY & MINERAL the company is listed in both BSE & NSE under CodeNo.946886 & SEML

The company deals in steel – having various plants right from iron ore and coal mining, pellets, sponge iron, bullets, wire rods, ferrous alloy with sufficient power generation of its own to meet the requirements.

          The company’s turnover of all these is Rs 1100 Cr & EBIDTA Profit Rs 238 Cr. Higher interest cost of Rs 45 Cr, Depreciation and taxation    Rs 63 Cr the net profit for the financial year ended 31-3-12 is Rs 115 Cr giving excellent EPS of Rs 32 to Rs 10 pad up share on equity capital of Rs 36 Cr is backed by hefty reserves of Rs 772 Cr. Book value is over Rs 215. Yet the share is traded at Rs.120 but investors have no knowledge of such blue chip pearls.

The stock had hit high of Rs 430 two years back and slided below Rs 100 despite no merit in the stock was not lost during this period except sentiments turned bearish.

Debt despite huge Cap-ex plan is over 0.64 & P/E ratio is most negligible viewers may buy the stock without any hitch to gain nearly 50% in short and 100% on long term basis.

THANKS TO ALL VIEWERS

Nifty scales 14-month high on reforms push

After witnessing a steep fall of about a percent in previous session, Indian benchmark Nifty exhibited fabulous performance through the day’s trade on Friday snapping the session at its 14-month high near crucial 5,700 mark after the government notified FDI in retail, aviation, broadcasting and power exchanges. The sentiments also got boost after government approved the operational features of the Rajiv Gandhi Equity Savings Scheme, allowing an income-tax waiver of 50% on new equity investments of up to Rs 50,000 by retail investors who have annual income of less than Rs 10 lakh. The global cues too remained supportive as most of the Asian counters ended in the positive as investors remained comforted by recent central bank steps to support the global economy in the face of weak data while, European counters too traded with traction in the early deals, supported by speculation that Spain could soon request a bailout and optimism that central bank action will revive growth.

Earlier, the benchmark made a gap-up opening after government on Thursday notified its decision to allow FDI in multi-brand retail, aviation and broadcasting sectors. Market continued gaining strength during first half supported by retail and aviation stocks, which picked up pace after the government braved intense political opposition to notify rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India on Thursday. Moreover, market touched its intraday high conquering psychological 5,700 level on reports that Samajwadi Party has pledged to continue support to the government on a day when Mamata Banerjee-led Trinamool Congress pulled out of UPA. The sentiments also remained bullish after government slashed the withholding tax on overseas borrowing by local companies to 5% from 20% at present. The reduction in tax will encourage Indian companies to raise funds from the overseas markets. The withholding tax liability on Indian companies was also reduced to 5%, which will apply to funds borrowed between July 2012 and June 2015. Moreover, investors continued piling up hefty positions across the board till end on reports indicating that the Centre could announce further reform-centric measures in the near term to counter the lingering impression of policy paralysis. Finally, Nifty ended the terrific session near its crucial 5,700 mark with a gain of about two and half a percent.

Meanwhile, most of the sectoral indices on the NSE were settled in the green, CNX PSU Bank remained the major gainer, up 4.25% followed by CNX Infra up 4.22% and CNX Metal up by 4.02% while CNX IT and CNX Media declined 0.67% and 0.26% remained the top losers in the trade. The India Volatility Index (VIX), a gauge for market’s short term expectation of volatility, rose 1.66% and reached 18.93.

The India VIX witnessed an addition of 1.66% at 18.93 as compared to its previous close of at 18.62 on Thursday.

The 50-share S&P CNX Nifty gained 136.90 points or 2.46% to settle at 5,691.15.

Nifty September 2012 futures closed at 5707.05 on Friday at a premium of 15.90 points over spot closing of 5,691.15, while Nifty October 2012 futures were at 5728.85 at a premium of 37.70 points over spot closing. Nifty September futures saw an addition of 0.26 million (mn) units taking the total outstanding open interest (OI) to 22.14 mn units. The near month September 2012 derivatives contract will expire on Thursday i.e. September 27, 2012.

From the most active contracts, Tata Motors September 2012 futures were trading at a premium of 0.65 at 275.75 compared with spot closing of 275.10. The number of contracts traded was 19,458.

BHEL September 2012 futures were trading flat compared with spot closing of 232.30. The number of contracts traded was 18,241.

Tata Steel September 2012 futures were at a premium of 0.80 point at 410.40 compared with spot closing of 409.60. The number of contracts traded was 17,651.

Reliance Industries September 2012 futures were at a discount of 0.50 point at 852.05 compared with spot closing of 852.55. The number of contracts traded was 16,423.

ICICI Bank September 2012 futures were at a premium of 2.35 point at 1068.90 compared with spot closing of 1066.55. The number of contracts traded was 28,834.

Among Nifty calls, 5700 SP from the September month expiry was the most active call with contraction of 0.68 million open interest.

Among Nifty puts, 5500 SP from the September month expiry was the most active put with  an addition of 0.84 million open interest.

The maximum OI outstanding for Calls was at 5700 SP (6.64 mn) and that for Puts was at 5400 SP (8.41 mn).

The respective Support and Resistance levels are: Resistance 5748.95 -- Pivot Point 5662.2 --Support 5604.4.

The Nifty Put Call Ratio (PCR) OI wise stood at 1.71 for September-month contract.

The top five scrips with highest PCR on OI were India Info 5.33, Mphasis 3.00, CESC 2.89, Jindal Steel 2.26, and Grasim 2.00.

Among the most active underlying, IFCI witnessed contraction of 2.96 million of Open Interest in the September month futures contract followed by JP Associates, which witnessed an addition of 0.39 million of Open Interest in the near month contract. Meanwhile, RCOM witnessed an addition of 1.30 million in the September month futures. Also, Unitech witnessed contraction of 6.22 million in Open Interest in the September month contract. Finally, Shree Renuka Sugar witnessed contraction of 0.56 million of Open Interest in the near month futures contract.

Nifty September 2012 futures closed at 5707.05 on Friday

Nifty September 2012 futures closed at 5707.05 on Friday at a premium of 15.90 points over spot closing of 5,691.15, while Nifty October 2012 futures were at 5728.85 at a premium of 37.70 points over spot closing. Nifty September futures saw an addition of 0.26 million (mn) units taking the total outstanding open interest (OI) to 22.14 mn units. The near month September 2012 derivatives contract will expire on Thursday i.e. September 27, 2012.

 

From the most active contracts, Tata Motors September 2012 futures were trading at a premium of 0.65 at 275.75 compared with spot closing of 275.10. The number of contracts traded was 19,458.

 

BHEL September 2012 futures were trading flat compared with spot closing of 232.30. The number of contracts traded was 18,241.

 

Tata Steel September 2012 futures were at a premium of 0.80 point at 410.40 compared with spot closing of 409.60. The number of contracts traded was 17,651.

 

Reliance Industries September 2012 futures were at a discount of 0.50 point at 852.05 compared with spot closing of 852.55. The number of contracts traded was 16,423.

ICICI Bank September 2012 futures were at a premium of 2.35 point at 1068.90 compared with spot closing of 1066.55. The number of contracts traded was 28,834.

MARKET VIEW AND STOCK

The market has reacted slightly on account of reverse political development against reform initiative taken by the government recently which is unlikely to sustain any longer because the parliament is not in session, which can upheaval govt.enstance.

Any impact of Mamta Banerjee withdrawing support may on the contrary help the UPA Govt. to think for an alternative strategy.

The Market in view of this will regain its strength after a short while.

ARVIND LTD : The stock of Arvind Ltd had made a high of Rs.114/- which was sharply corrected to a low of Rs.65/- on account of strike in one of its units in Ahmedabad for a short duration.

The stock is still highly under-priced looking its excellent future being the leader in denim and higher export. The company has started paying dividend after the break in last few years.

Arvind is also diversifying in real estate in collaboration with Tata on its vacant land which will further boost its bottom line. At current market price of Rs.72/- it is good to buy.

Ashok Leyland:- The company is a leader in manufacturing heavy vehicle sectors like bus and trucks which is in good demand.

The company has recently introduced light weight vehicle namelyDost which has received a good response.

The stock which had recently hit Rs.34/- was corrected by 40%. The stock @ Rs.21/- to Rs.22/- is a good buy for 50% gain in next few months.

 

FROM : G S Roongta (Senior Analyst)

HINDALCO IND LTD.

Earlier I had strongly observed that the Market which made a bottom on 20th dec,2011 is now going up systematically making higher top and higher bottom ever since.

On Friday, the Market burned back to a 14 months high with BSE Sensex closed higher at 18465 and CNX Nifty to hit close to 5600 despite technical analysts remain confused guiding bearish view whenever market experienced correction of a rise.

Several stocks on Friday had hit to a new 52wk high with signals for further rise. Bold reforms initiated by the government boosted the market sentiment which was followed by positive global clues such as US fed’s new stimulus package to buy $40Billion of mortgage assets every month till the unemployment outlook improves.

The stock market has now entered into higher orbit and the stock which has been most sluggish will start attracting value buying. Among such stocks there is one stock namely HindalcoInd Ltd.

My earlier eye recommended Tata Steel stock  @ Rs 385/- which has already spurted to a high of Rs.405/- on Friday,14^th Sep.2012.

HindalcoInd Ltd is a giant company belongs to  Aditya Birla Group with its interest in aluminium in domestic and outside with large integrated facilities right from mining to value added products.

The financial performance in 2011-12 has been outstanding both at the stand alone and consoledatedturnoverl was Rs 80820 Cr. and net profit was Rs.3397 Cr. On equity capital of Rs 192 Cr. With an EPS of Rs.17.74 on Rs 1/- paid up share is highly commendable with extra ordinary reserves of Rs.31300 Cr. Which translate into higher book value of Rs.165/- which is highly under priced. The company has however better prospects with a future capex plan of nearly Rs 20,000/-Cr. In hand to be completed in next two years. To sumup the stock looking to the strong fundamentals with a merit of blue chip company should be traded double the book value that is to over Rs 300/-, but sadly speaking the stock is available @Rs118/- as on Friday 14^thsep 2012.In my view the stock can hit Rs 200/- gaining 70% on year on year basis from the current market price of RS 110/-.

From: G S ROONGTA (SENIOR ANALYST)

TATA STEEL AND ELECON

Among such blue chip stocks in “A” group the stock namely Tata Steel is currently at 52 weeks low and looks good candidate to spurt significantly higher. Investors in view of this may keep in mind that Tata Steel is the top most company under Steel sector and the leader of Steel in the country and abroad with combined highest capacity of nearly 20 million tons in coming years and have all chances to give 40% to 50% gains to those investors who will hold this stock in their portfolio on YOY basis.



           Another stock which is very under price in capital goods sector is Elecon Engineering which had hit 225 as all time high for rupees to paid up 5 years before and is currently available at Rs 45 which has capacity to double in a year no longer the government takes initiative to spur investment in trade and industry with higher allocation of funds. This price of Rs 45 is despite of the company delivered year after year good results and paying higher dividend as pay out.



From­:-  G.S.Roongta

       (Senior analyst)

VIEW ON MARKET

             The Indian stock market which has exhibited side-ways fluctuation in range bound trading ever since September 2010 making bottom on 20^th December 2012 in an ongoing bullish trade.

             The market experts an technical analysts has since been mostly bearish giving their guidelines mostly towards lower closing expecting the market to visit to a low of March 2009 with BSE Sensex at 9500 but it has proved extremely night mare as Sensex has keep on moving between 15 to 18000 range during this period with which traders have got ample opportunity to consolidate their portfolios.

              The Stock market ever since 20^th December 2011 has given enough opportunity to consolidate itself giving clear signal to make higher top and higher bottom.

              The BSE Sensex has now crossed at its rock resistance of 18000 giving clear signal that it is now in mood to cross all its upper resistances till it hits all time high of January 2008.

             Several stocks both in blue chip and mid cap have achieved much lower prices and they all are now set to spurt significantly higher.

From­:-  G.S.Roongta

             Senior analyst

TODAYS PERFORMANCE - 12-09-2012

INTRADYA CALLS :

 BUY APOLLO TYRES IN (FO) WITH STOPLOSS 93 , CMP 98.30 AND TRG 101 .... FIRST TRG ACHIVE PROFIT : 10800

POSITIONAL CALLS:

WE RECOMMED ON 11-09-2012 BUY TATA MOTORS AND TATAMOTORS DVR WITH STOPLOSS OF 243 AND 143. CMP 250 AND 149.OUR TRAGET 260 AND 160 ONLY.            SEE TODAY 5% UP AND WE WILL CALCULATE AS PER ONLY 100 SHARES THAN PROFIT IN TATAMOTORS -1300 AND DVR - 1000 ONLY .

WE RECOMMED BUY APPAPER ONLY 100 SHARES AT CMP 342 WITH STOPLOSS 330 TRG 370 .....

AND SEE THE HIGH OF 372 BUT WE SAID TO BOOK PROFIT AT 368 ONLY.... PROFIT 2600 ONLY.

TOTAL PROFIT OF TODAYS: - 15700 ONLY...

OUR BTST CAL ARE BUY RCOM-51.60 AND MCX - 1392

BLISS GVS PHARMA LTD



AS WE SEE THAT DIVIDEN IS GROWING SO I THINK THAT ONE SHOULD BUY THIS STOCK FOR DELIVERY IN HIS PORTFOLIO FOR 2-3 MONTHS . AS IF STOCK IS NEAR 52 WEEK HIGH THAN ALSO ONE SHOULD BUY THIS STOCK AND MAKE SOME RISK FREE PROFIT.....

RAMANEWS PRINTS

:West Coast has 36% stake in Rama News.
: Rama News. book value 18

:Rama news mrkt cap 55 crs and loss making, debt 171 crs FV 10
- Rama has plant on 400 acres land 14 kms from surat and has close proximity to both Navasheva (Mumbai) & Magdalla Surat ports
- Rama also plans to unlock value thru real estate of 250 acres of land out of 400 acres

BUY RAMANEWS IN DEL ONLYYYYYYYYYY

NIFTY WHERE TO MOVE ....

     IN THIS MARKET WHAT ONE SHOULD DO.. WHERE THE MARKET WILL, ALL R HAVING SAME QUESTION BUT NO ONE HAVING ANSWER . AS PER MY THINK MARKET WILL REMAIN IN BULLISH ZONE .. IF YOU SEE FROM LAST MONTH THEIR IS NO RELATION REMAINS BETWEEN DOLLAR n NIFTY , CRUDE n NIFTY .. Y THIS IS HAPPENING , BECAUSE FROM GOVT. GDP AND INFLATION IS MENTAIN THAT IS Y THIR IS NO RELATION BETWEEN THEM . 

         SO AS PER MY VIEW NIFTY IN CASH ONLY ABOVE 5295 WILL CHANGE ITS TREND , SO ONE SHOULD WAIT FOR TRADING  AND INTRADAY TRADES HAVE SOME TO STOP FOR SOMETIME , TRY TO TRADE IN DEL ONLYYYYYYYYY.

         

US markets gain as Federal Reserve hints for QE3

The US markets edged higher on Friday, to notch a third month of gains that have largely priced in Federal Reserve Chairman Ben S. Bernanke statement that he wouldn't rule out more stimulus to lower jobless rate which he described it as a grave concern. In much-anticipated speech, delivered two weeks before the next Federal Open Market Committee meeting, the Fed chief reiterated prior comments that the central bank is ready to act, as needed. Bernanke's 24-page speech at the Kansas City symposium made the case for further monetary easing and concluded that the central bank's non-traditional policy tools such as bond purchases have been effective in boosting growth and improving financial conditions. He stated that declines in the unemployment rate would continue only if growth picks up above its longer term trend. Unless economic growth picks up more rapidly than it has recently, the unemployment rate would likely remain elevated, Bernanke stated. Bernanke left the door for a third round of quantitative easing wide open and the chairman's remarks about unemployment signaled the Fed is likely to act if the jobless rate increases even slightly. The rate setting committee is scheduled to meet for two days ending on September 13 and many Fed observers expect the next measures to be announced then.

Besides, the US economic reports came good, factory orders in July rose the most in a year, posting the biggest increase since July 2011 and rising for the second time in three months. The Commerce Department stated that new orders for manufactured goods rose 2.8 percent during July. Also, the confidence among US consumers in August rose more than projected to the highest level in three months, reinforcing signs the world's largest economy is improving. The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 74.3 from 72.3 the prior month. The gauge was projected to rise to 73.6. However, the Chicago Purchasing Managers' Index slipped to 53 in August, down from 53.7 in July, according to economic consulting firm Kingsbury International.

In Europe, the European Commission plans to give the European Central Bank supervisory powers over the euro-area banking sector. Besides, Euro area unemployment for July was unchanged from June, holding at a record-breaking 11.3%, according to the European Union's statistic office. At over 25%, Spain had the highest jobless rate in the region. The unemployment rate for EU27 nations was 10.4% in July. Separately, Euro-zone inflation climbed to 2.6% in August from 2.4% in July, flash estimate issued by Eurostat showed. The central bank aims to keep inflation below but close to, 2% over the medium term. The final report for August is due on September 14. Also, Germany's retail sales decreased 0.9% from a month ago in July, from the 0.5% rise in June, data released by the Federal Statistics Office showed. Annually, retail sales fell 1% in July, following the 3.7% gain in June.

The Dow Jones industrial average gained 90.13 points, or 0.69 percent, to 13,090.80. The S&P 500 Index gained 7.10 points or 0.51%, to 1,406.58, while the Nasdaq Composite was up by 18.25 points, or 0.60 percent, to 3,066.97.

The Indian ADRs closed mixed on Friday, Dr. Reddy's Lab was up 0.15%, Tata Motors was up 0.13% and Infosys was up 0.12%. On the other hand, HDFC Bank was down by 0.50% and Tata Communications was down 0.27%.