Coal India,IOC,RIL and Lanco Infratech may grab investor's attention today.

Coal India (CIL), the world's biggest miner, will miss its production target for 2012/13 by 5-6 million tonnes, but will meet its supply target of 470 million tonnes by drawing down from stocks. The production target is 464 million tonnes for the current fiscal year that ends in March. The state-run miner, which produces about 80 percent of India's total coal output, has a stockpile of 47 million tonnes as of today, nearly 24 million tonnes lower than its opening stocks at the beginning of this financial year. Besides, taking forward the process to assess reserves of its mines in Mozambique, the company has invited bids for taking up drilling at the blocks. The development comes at a time when the coal producer is facing problems in enhancing coal production and the country is facing shortage of the fossil fuel.

Indian Oil Corporation (IOC) is expanding its network and will invest Rs 10,000-11,000 crore during the 2013-14 fiscal. IOC would spend Rs 56,000 crore over the next five years on constant price basis in the 12th Plan period. Additionally the company would spend Rs 3,500-Rs 4,000 crore a year on non-plan areas like changing pumps. Meanwhile, IOC has implemented 80-85 of the MB Lal committee's recommendation on safety while it was 72 percent for the entire industry. The company is also planning to engage an independent external agency for handholding support to promote safety culture in the organization.

Lanco Infratech is in talks with strategic and financial investors to sell stake in three power projects separately to raise over Rs 2,500 crore after attempts to sell stake in its arm that owns all the units failed. The shift in strategy comes after almost a year of attempts by Lanco to raise up to Rs 4,150 crore by selling a minority stake in its power holding company to private equity funds or strategic investors. Now, the company aims to raise over Rs 1,500 crore by selling 50-75 % stake in its 1,200 mw coal-fired Udupi power plant. It is also talking to investors to sell stake in its operational 600-mw Amarkantak and under-construction 1,320-mw Babandh power projects to raise a total of Rs 1,000 crore. Lanco Infratech has been struggling to stay afloat as it deals with a staggering debt of Rs 35,500 crore, its inability to recover almost Rs 3,000 crore of receivables from state discoms even as it is forced to run plants at low capacity due to paucity of fossil fuel.

As differences simmer over scope of CAG audit of its flagging KG-D6 fields, Reliance Industries (RIL) has stated that it is not obliged to provide full access to documents relating to years that are not under audit. Disagreements over scope of audit cropped up on the very first day the Comptroller and Auditor General of India (CAG) began the second round of audit of spending on eastern offshore KG-D6 fields with RIL alleging that the auditor was not confirming if the accounts scrutiny would be as per the provisions enshrined in the Production Sharing Contact.

India Cements plans to expand its capacity in Rajasthan with the possible investment of around Rs 650-700 crore to cater to increasing demand in Gujarat and Madhya Pradesh. The present capacity of the plant in Rajasthan is over one million tonnes, and plans are afoot to add one more line with similar capacity. The expansion would help the company cater to the Gujarat and Madhya Pradesh markets. With a total capacity of 15.5 million tonnes, the company has plants in Tamil Nadu, Andhra Pradesh and Rajasthan. The company has been facing challenges operationally, especially on the cost front. Despite of higher power tariff in Andhra Pradesh and Tamil Nadu, hefty power holidays and subdued cement demand, the company was able to post healthy growth numbers.

Auto major Mahindra & Mahindra (M&M) will invest 80 billion Korean Won (about $ 73.73 million) on its Korean subsidiary Ssangyong Motor Company (SMC), through subscription of a preferential allotment. The said preferential offer would result in an increase in the paid-up capital of SMC by 11.9 percent and increase in M&M's stake in SMC to 72.85 percent from 69.63 percent. The said issue would facilitate improvement of the financial structure of SMC and proceeds of the issue would be utilized by SMC for new product development and strengthen its competitiveness. Mahindra had invested a total of KRW 522.5 billion in March 2011 (new paid-in capital increase of KRW 427.1 billion and 95.4 billion in corporate bonds) to acquire 69.63 percent of the equity in SMC.

Homegrown home textile company Welspun India (WIL), part of the $3.5 billion Welspun Group, is looking at raising revenues from the domestic market to 20%, from the current 5%, by 2020. The company is keen to expand to tier II and III cities and towns of India apart from getting to urban markets through shop-in-shops and a strong distribution network, apart from institutional sales to hotels. Welspun has set a target to have 100 shop-in-shops under the brand Spaces every year. Having shot to fame by manufacturing towels for the iconic Wimbledon Championships, the company is keen to associate with events in India. Besides, aspiring to be a $1 billion entity in four years, the company has forayed into new territories. Welspun's major markets are US and EU.

INTRADAY CALLS FOR 13-02-2013

BUY NIFTY ABOVE 5948 SL 5929 TGT1-5964 TGT2-5984 TGT3-6003
SELL NIFTY BELOW 5929 SL 5948 TGT1- 5913 TGT2-5893.50 TGT3-5874

 

BUY BANKNIFTY ABOVE 12460 SL 12430 TGT1-12482 TGT2-12510 TGT3-12537
SELL BANKNIFTY BELOW 12430 SL 12460 TGT1-12410 TGT2-12382 TGT3-12355

 

BUY HPCL ABOVE 329 SL 324 TGT1-333 TGT2-337 TGT3-342

 

BUY MCDOWELL ABOVE 1970 SL 1958 TGT1-1990 TGT2-2002 TGT3-2015

ZEE ENTERTAINMENT ENT LTD

          FROM LAST FEW DAYS I HAVE SEEN CHART OF ZEE ENTERTAINMENT  AND I COME TO KNOW THAT SOME GOOD PROFIT CAN BE GERATED FROM THE STOCK . HERE IS THE CHART OF ZEE THAT I HAVE STUDY,

               IN THIS CHART WE CAN SEE THAT STOCK IS MOVING UP BUT UPTO ONLY THE LEVEL OF 210 AND THE STOCK AGAIN COME UPTO 175 LEVELS. SO AS PER MY THINK ABOUT CHART IS THAT STOCK TOUCH 1ST HIGH AND THAN COME DOWN UPTO 175 TO 180 LEVELS AND AGAIN MOVE UPTO 210 LEVELS. BUT KNOW THE STOCK IS OVING IN THE LEVEL OF 190 TO 200 AND I THINK THAT ONCE STOCK CROSSOVER 210 LEVELS THAT IT WILL TOUCH 250-260 LEVELS IN SHORT TIME .BECAUSE ITS DOUBLE TOP CROSS.

                 AS PER THE CHART ONE SHOULD BUY AT THE LEVEL OF 190 TO 195 LEVEL FOR THE TGT OF 250-260 IN MONTH AND WITH THE STOPLOSS OF 175 AS SHOWN IN CHART RED LINE.

AFTER A LONG BREAK WE ARE BACK !!!!

         EVERYONE IS WAITING THAT WHAT HAPPENS WHY THERE IS NO POST BUT I HAVE MY SOME PERSONAL WORK THAT 'S Y I WAS NOT AVAILABLE BUT WE ARE BACK. AND IN THIS TIME OF VACATION I HAVE SEEN THAT MARKET IS MOVING UP AND DOLLAR IS GOING UP ALSO. THAN WHAT WILL HAPPEN IN MARKET , LET SEE ONE SHOULD WAIT AND TRADE SLOWLY IN MARKET UPTO PARLAMENT SESSIONS ONLY.

    BUT ON CAN BUY TV18 BRODCAST CMP 35 TGT ?????      FOR A MONTHS.

MARKET BY G.S.ROONGTA

MARKET REVIEW IN BRIEF

BSE Sensex & CNX Nifty rises slowly and gradually inching up towards 19k and 5800 for the time being. There is a stock specific action.

Those stocks which have already rose substantially under cement, AUTO, FMCG, Pharmacy and Banking have sidelined now.

While other sectoral stocks are being fancied. Tata Global was star performer on 3^rd October to hit Rs 154.

          On 3^rd October I had recommended GULSHN POLYO as Rs 68 which hit Rs 78, yesterday gaining Rs 9 or 15% in a single day which speaks the liking & worthiness in my recommendation being viewed by the view of this site.

Cement stocks rally have slowed down after a good rise, yes India cement and keshoram stock going dirt cheap even at current market price.

STEEL AUTHORTIY OF INDIA LIMITED (S.A.I.L)

SAIL is a world class corporation and a leader of Indian Steel business boil in productivity & quality and inspiring to match in profitability too in year to come.

          SAIL is having several steel plants mainly in eastern parts of the country such as bhilai, IISCO, Rourkels, Bokaro, Durgapur and Jamshedpur with backward integration of ore & coal mining power etc. Its product profile is numerous which is used in construction/infrastructure/industry and in every walk of human life.

SAIL hit a life time higher sales target of over Rs.50, 000 Cr followed by with net Profit of Rs 3543 Cr slightly lower than its previous yr due to global and domestic recession in 2011-12.

          SAIL has ambitious CAP EX plan of over Rs 40, 000 Cr including Rs 14500 Cr already spent till 2011-12 and rest of which to be spent in next 2 yrs without much borrowing. Most of the funds is targeted to come out of internal accruals & equity route which is quite evident from its comfortable debt/equity ratio.

          Imagine what would be the SAIL outlook after 2 yrs once its  CAP EX plans will be completed. It would really be mind boggling which is difficult to express in words now.

          SAIL stock is currently traded at Rs 87 below its book value and is worth to buy and have this precious jewel in your cap from long term point of view.

          When, MRF the largest in tyre segment can hit over Rs 10, 000 Cr & Asian pain can be traded at Rs 4000 why SAIL should not cross 500 in 2 yrs and Rs 1000 in 5 yrs.

          Lastly, It may be recalled that SAIL stock had hit Rs 250 mark in 2009-10.

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.