MKT NEWS

ONGC Videsh Ltd (OVL), 100% subsidiary of ONGC, has offered to acquire Imperial Energy Corp (IEC) for a sum of US$2.8bn. With 2P reserves for IEC pegged at 920mn barrels of oil equivalent (boe), the deal is valued at US$3.5/boe of 2P reserves. With almost 94% of the reserves being crude oil reserves, the valuations offered appear attractive. However, the taxation structure in Russia works as a big drag on realizations, which impacts net present value of the assets. In CY07, the realizations for IEC were about US$24/boe as compared to average WTI price of US$72.3/bbl…

 

ONGC_Acquisition_20Note - Get more Business Documents

Stock Update >> Ranbaxy Laboratories 

Stock Update >> Tourism Finance Corporation of India

 

• Daiichi Sankyo’s open offer for acquiring a 20% stake at Rs737 per share in Ranbaxy Laboratories (Ranbaxy) expired on September 4, 2008. Media reports suggest that around 18.4 crore shares were tendered in the open offer, as against the free float of Rs24.3 crore shares. This would cause the acceptance ratio to increase from around 32% to close to 50%. We expect the stock to stabilise around Rs400-425 post the expiration of the open offer….
• The financial year 2008 could be termed as a turnaround year for Tourism Finance Corporation of India (TFCI), which with a 5.8% growth in its loan book broke the previous four years’ trend of a negative growth in advances during the year. The industry witnessed a robust credit growth during the same period, riding on the consumption boom in the country. During the year, project related sanctions increased by 52.5% while disbursements increased by 67.4%.

Download nvestors+Eye-Sep05

Aban Offshore 

Bharti Airtel 

Glenmark Pharma 

HDFC 

Hindustan Unilever 

ITC 

Larsen & Toubro 

Punj Lloyd 

Reliance Industries 

Shiv-Vani Oil & Gas 

Sun Pharmaceuticals 

TCS

Sharekhan+Top+Picks+06+09+08 - Get more Business Documents 

( National Thermal Power Corporation, India ) NTPC is the largest thermal power generation company of India. It NSE Code NTPC is engaged in the business of engineering, construction and operation of power generating plants and also provides consultancy to power utilities in India and abroad. Of the company's installed capacity of 27350MW 86% is coal based and 14% is gas based.

Download from Anagram's+Research+Report+NTPC

Anagram's+Research+Report+NTPC - Get more Business Documents

Stock : Rolta

CMP : Rs 326

Rolta Shows a Inverted Hammer pattern in weekly charts  and here is a strategy about how to trade a Bullish 

Inverted hammer. Also Still on Daily and Weekly Charts Rolta Continues to trade bullish above 20 period EMA

How to trade a Bullish Hammer

If you are a regular Swing Trader reader, then the inverted hammer should seem very familiar. However, you may not be able to put your finger on exactly why it looks so familiar.

If you examine the inverted hammer carefully, it hardly looks like a bullish candle. Prices opened low and then rallied strongly. By the close of trading, however, the stock has given back almost all of the day's gains. That leaves a small real body and a very large upper shadow. If anything, the candle looks bearish. The bulls could not sustain a rally, so the bears took the stock back toward its lows for the day.

So, why should this candle potentially set up an important reversal? My theory is that the inverted hammer is a signal that shorts are beginning to cover their positions.

Here is my reasoning. Since the inverted hammer can only occur after a sustained downtrend, the stock is in all probability already oversold. Therefore, the inverted hammer may signify that shorts are beginning to cover. In addition, traders who have held long positions in the security, most of whom are now showing large losses, are often quick to dump their shares by selling into strength. This will also serve to drive the stock back down.

With this candle, it is imperative to watch the next day's trading action. If the stock opens stronglyand remains strong during the day, then a key reversal is likely in progress.So If Rolta starts trading above 340 range then you can expect an immdiate bounce upto 374-385 levels in short term

Learning without thinking begets ignorance.Thinking without learning is dangerous.

~ Confucius

********Technicals***** ~September 5~

Nifty,RSI and stochastics now in triangle and breakout will give direction.

As y’day NSG deal is signed I expect our markets to open gap up by at least 100-150 points in nifty, so nifty should open above 4450….

Now if 4522 is taken out on closing basis then we will be in uptrend with targets of 4640,4800.

***Nifty**** ~ September 5~

Nifty (September) future premium increased to 16 points and around 8 lakh shares were added in open interest with increase in the cost of carry, indicating new long at lower levels.

********Fund flow*** ~ September 4~

~FII index fut – 1337 cr!!!!!!!!!!!!!!!

~FII stock fut – 832 cr

~FII cash -399 cr

~Mut cash +134 cr

*******total fund flow -2434 cr today & nifty was down by 56 points.

****** so far net fund flow of +764 cr in September series. (nifty is up in September series).

***********Past fund flow**********

~ Net fund flow of +6474 cr in July series. (Nifty +18 in series, closed at 4333)

~ Net fund flow of -8071 cr in June series (Nifty -520 in series, closed at 4315)

~Net fund flow of -6641 cr in August series. (Nifty -119 in series, closed at 4214)

happy trading and investing.

MARKET WILL TAKE CUE FROM POLITICAL DEVELOPMENTS

Bse Sensex(14483.83) and Nifty(4352.30) closed approximately 0.6% and 0.2% down each last week . Inflation was at 12.34 v/s 12.40 and Crude fell to 106 $But market failed to recover due to weak global cues.. Market will take cue from Crude oil prices and developments on nuclear deal..Support for Sensex is 14150 and for Nifty 4240 Resistance level of for Sensex 14950 and 4490 for Nifty. Selective buying will be visible at every decline.

Nifty put-call ratio is 0.79 .Nifty 4500 call saw addition in open interest.BPCL and Jet Airways saw addition in open interest..

Strategy for Future & Option players

1)ONGC(1071.95) -Lot Size-225 Shares

Buy One Call Option September Month Price 1060@36.90 Rs.

Sell One Call Option September Month Price 1110@15 Rs.

Premium Paid=36.90*225=8302.75 Rs.

Premium Received =15*225=3375.00 Rs.

Net Premium Paid=8302.50-3375.00=4927.50. Rs.

Maximum Profit=1110-1060=50*225=11250.00-4927.50=6322.50 RS.

Maximum Loss=4927.50 Rs.

Break even point=1081.90 Rs

2)IDBI Future(89.50) Lot Size 1200 Shares

Buy One Lot IDBI September Future@89.50 Rs.

Sell Call Option IDBI September Month Strike Price 95@1.80 Rs.

Premium Received=1.80*1200=2160.00 Rs.

Maximum Profit=95-89.5=5.50+1.80=7.30*1200=8760.00 Rs.

Maximum Loss=Unlimited.

Trading Idea

1)Petronet(61.15)Buy this stock in decline and trade

2)RPower(163)Buy this stock in decline and trade

Sensex is expected to take sharp upmoves in coming weeks. I expect

fastest 5000 points to surpass 20000 points in next few days. Bears

should be extremely careful. My revised target for Sensex for end 2008

is 29000 points.

BREAKING NEWS...India gets clean waiver at NSG

 

The world may take a back seat as bulls may choose to celebrate the Nuclear Suppliers' Group decision to grant India a "clean waiver" from its existing rules. Earlier, nuclear trade was forbidden with a country which has not signed the Nuclear Non-Proliferation Treaty (NPT). Friday's fall was more due to global weakness rather than any particular domestic event. Recovery in index heavyweights could result in some temporary short squeeze. We had advised to catch Friday's falling stars if you have the money. After a strong start, the movement for the rest of the week will again depend more on global markets and oil prices. . Monday may well be an opportunity to pocket some quick gains. The temporary spurts are more of opportunities to exit or shift to better stocks. Keep some cash handy to take advantage of any fall later in the week.

ROCKET STOCK.... CELESTIAL LABS LTD at Rs.40/-; TARGET 125/-

CELESTIAL LABS LTD Trading in BSE & NSE at 40/- in B Group. Target

75/- for short term & 125/- for Long Term. Safe Investment at 40/-.

Market is stabilizing between 14,000 to 16,000;  Crude also

stabilizing. Inflation numbers also coming down. Right time to Enter

Good Fundamental Stocks.

CELESTIAL LABS Ltd at Rs.40/- is with Good Net Profit With EPS 12/-

for 2008-09. First Quarter Net profit was 2.724 Crores. Equity 11

Crores, Company Projected EPS for 2008-09 is 12/- with Net Profit 13

Crores. As per This PE only 3.5. Normally PharmaCompanies PE will be

minimum 10. If we take PE 10 It will come 120/-

Good Dividend Paying Company; For 2007 – 2008 year 10% Dividend

Declared.

The company has declared its 1st Quarter results for 2008-2009. Net

Sales at 5.2 Crores, Net profit at 2.724 Crores. EPS of 1st Quarter

was 2.43 (Annual EPS 9.8/-). And Company Projections of 2008-2009

Sales at 27 crores and NetProfit at 13 Crores. The Projection

Annualized Earning Per Share (EPS) at Rs 12/- for 2008 -2009 year.

Expansion profits will coming to Next Quarters.

For 2007 – 2008 year Sales at 19.9 crores and Net profit at 9.4 Crores

EPS at 8.4/-. This year 2008 -2009 projection EPS is 12/- Net Profit

13 Crores.

CELESTIAL LABS Ltd , Trading in BSE & NSE at 40/- in B Group.This is

10/- FaceValue share trading at 40/-. Celestial engaged in Drug

Discovery, CRM (Contract Research & Manufacturing), Industrial Enzymes

manufacturing, & IT division in ERP implementations, Bio Informatics.

Now Its available very cheep price at 40/- Companred to Company growth

and profits.  Based on this Daily grabbing with Mumbai BIG BIG Bulls,

and  A LOT OF FII interest is seen in celestial because of Now stock

is available at very very cheep price at 40/- EPS 12/- expecting for

this Annual financial, with PE 3.5 only. And Company Growth. Narmally

in worst condition also PE will at 8. But Now PE is only 3.5. If you

have already buy some more make average. This is company is doing very

very good. Slowly grab this stock. Fundamental is very very good.

Total Equity of  11 Crores . Promoters Holding 37.54%; Private

Corporate Bodies 8%; NRI’s 2.5%; Public 52%.

Book Value of this Share was Rs. 51/-

Company website :   http://www.celestiallabs.com

Small Equity 11 Crores; Public having very less (50%) But in this 50%

Big investors was 25%. So only 25% public; Lot of acquisition is going

on….So Don’t short this share.

Celestial Labs has been supporting Pharma, Bio-pharma and Biotech

manufacturing with customized ITsolutions and contract research. CLL

also involved in the R&D, commercial production and marketing of

enzymes, nutraceuticals.

Celestial Labs is setting up a biotechnology facility in Genome Valley

at Hyderabad, India to manufacture its own drug molecules, industrial

enzymes and to contract research activities.The business plan of

Celestial Labs is essentially based on the production and supply of

the biotechnological products which have very significant industrial

implications, especially in both Pharma and Bio-pharmaceutical

sectors. The plan is envisaged after a thorough ground-work in terms

of building up of a technology base through stake holders and

collaborators, further supported by market analysis and import-export

imperatives.

Celestial Labs Ltd has  acquired the channel partnership of Microsoft

to strengthen Celestial ERP business. The main promoter of the

Company, Dr. A N Singh is in the process transferring IPR rights worth

total 11 crore as valued to the Company. However, Dr. A N Singh

entitlement is 8.175 crore out of which he shall claim worth Rs 2.5

Crore shares not exceeding 5% on expended capital, balance will be

subsequently claimed.

This exercise shall immensely help the Company to increase the

business in the smaller and medium sectors of ERP business.

Celestial Labs Ltd has acquired the contract Research of Rational

Laboratories located at Nacharam, Hyderabad and Sandiego, USA. As a

part of the agreement Celestial Labs acquires laboratory space of

around 48000 sq.feet which substantially enhances the Celestial Labs

pitch in Contract Research and Drug Discovery business.

Just Buy at 40/- Hold 1 to 6 months time. You will get minimum 100% to

200% returns. Enter current price at 40/-Target 75/-  &  120/-  .

Just invest and get 100% to 200% profit.

Positive Points for this stock for Up moving:

1)      Company doing very good with EPS 12/- PE only 3.5; Available very

cheep at 40/-

2)      Company Expanding Results will share Next Quarters. So Net Profit

will Increase.

3)      Book Value was 51/-

4)      Company is in good field  Pharma, Bio-pharma and Biotech

manufacturing with customized ITsolutions and contract research. In

this field PE minimum 10; Now PE only 3.4. EPS 12/-.

5)      Good Dividend paying company. For 2007 -08 year 10% dividend given.

6)      Celestial Labs recommending by Famous Hyderabad Analyst KUTUMBA RAO

(in TV9) also. Many times he recommended at 45/- to 50/-.

7)      Small Equity 11 Crores; Public having very less (50%) But in this

50% Big investors was 25%. So only 25% public; Lot of acquiring is

going on….So Don’t short this share.

Enter current price at 40/- Short term Target 75/- Long Term Target

125/-

Strong Fundamentals. Just Buy at 40/- get 100% to 300% Profit.

Nifty CMP : 4352

Charts Showing Comparision of Sensex Vs USDINR Charts and the 20 day EMA

Crossover indicates a buy/sell signal. And this charts explain how forex markets are

related to Indian Stock Markets. I don't know how to explain since i was novice to 

forex markets. And the chart says that whenever a buy signal generated in rupee

there is a corresponding sell signal in Sensex. But i think the chart explanations

is quite easy to understand where we are moving.

NIfty CMP : 4352

The head and shoulders pattern is generally regarded as a reversal pattern and it is most often seen in uptrends. It is also most reliable when found in an uptrend as well. Eventually, the market begins to slow down and the forces of supply and demand are generally considered in balance. Sellers come in at the highs (left shoulder) and the downside is probed (beginning neckline.) Buyers soon return to the market and ultimately push through to new highs (head.) However, the new highs are quickly turned back and the downside is tested again (continuing neckline.) Tentative buying re-emerges and the market rallies once more, but fails to take out the previous high. (This last top is considered the right shoulder.) Buying dries up and the market tests the downside yet again. Your trendline for this pattern should be drawn from the beginning neckline to the continuing neckline. (Volume has a greater importance in the head and shoulders pattern in comparison to other patterns. Volume generally follows the price higher on the left shoulder. However, the head is formed on diminished volume indicating the buyers aren't as aggressive as they once were. And on the last rallying attempt-the left shoulder-volume is even lighter than on the head, signaling that the buyers may have exhausted themselves.) New selling comes in and previous buyers get out. The pattern is complete when the market breaks the neckline. (Volume should increase on the breakout.) 

Head and Shoulder Characteristics

A technical analysis term used to describe a chart formation in which a stock's price: 

1. Rises to a peak and subsequently declines.

2. Then, the price rises above the former peak and again declines.

3. And finally, rises again, but not to the second peak, and declines once more.

The first and third peaks are shoulders, and the second peak forms the head.

Example Chart from Investopedia.com

Nifty Head and shoulders pattern shows a ready made target of 3800 if breaking 4200 in downside

or even lower targets are possible

WTI Crude : CMP : 106.23

EOD Charts

Crude Broken the Major Support 200MA $111/Barrel and currenlty at oversold levels

and the downside resistance coming near $100 as shown

Inferece From Weekly Charts

Weekly Charts signals supports at $100 Few Bounce backs may expected as crude

is heavily oversold at this levels. Breaking the supports may expect $78 on the cards

When i try try to feed the recent high's and lows in the fibonacci calculator... iam getting these values. So 50% Fibo level(4362) got broken already and a support taken near 61.8% Fibo level(4325). And Now we Closed between the fibo levels.

Just Thinking What Next??

Download Both Fibonacci and Pivot Point Calculators Here. Useful one for day trading and guessing the 

Fibonacci retracement levels.

PRICE: RS.64 

RECOMMENDATION: BUY 

TARGET PRICE: RS.90 

FY09E P/CEPS: 10.2X

We remain positive and maintain BUY on GSPL with revised price target of Rs.90, (Rs.96 earlier) which provides 40% upside potential from current levels. We recommend BUY on GSPL…

GSPL+-+Kotal+PCG+-+September+05_+2008

GSPL+-+Kotal+PCG+-+September+05_+2008 -

Rating - Outperformer 

Price - Rs723 

Target Price - Rs921 

Implied Upside -  27.4%

Axis Bank has been one of the 

best performing new-age private sector banks over the last couple of 

years. However, the bank’s Q1FY09 financial performance, which was 

higher than street expectations, was marred by deterioration in asset 

quality levels mainly in the credit card portfolio. But deterioration in 

asset quality is a system-wide risk (emanating from higher interest rates 

and slowdown in the economy) and not specific to Axis Bank. The bank’s 

earnings trajectory is likely to remain the highest among its peers. It also 

has provision coverage of ~79% (including accumulated write-offs). Thus 

it makes Axis bank better placed than its peers in absorbing asset quality 

risks.

 

AxisBank-2-9-08-PL - 

Reco: HOLD

CMP - 1775 

Target Price – 1899

Infosys Technologies Limited (Infosys), started in 1981, is India’s second largest IT company in terms of revenues and the largest company in terms of earnings. It provides solutions that span the entire software life cycle encompassing consulting, development, maintenance, systems integration and package evaluation and 

implementation. Infosys, also offers software products for the banking industry and IT Enabled Services (ITES).

Infosys+Technologies+Ltd+ - Free Legal Forms 

Infosys+Technologies+Ltd+ -

Sadbhav Engineering (SEL), a mid-sized player in the Infrastructure space, is becoming a player to reckon with on account of moving up the value chain, from being a sub-contractor to an asset owner. Notably, SEL has also acquired mines in Mozambique to ride the 

current boom in the Mining segment. However, we have currently not accorded any value to it. But, we believe that going ahead, this business will add substantial value to SEL. We have valued SEL's core Construction business at 10x FY2010E EPS of Rs71.6. As per our 

DCF methodology, we have valued SEL’s BOT business at Rs320 per share. We Intiate Coverage on the stock, with a Buy recommendation and SOTP Target Price of Rs1,036.

Download - Sadbhav+Engineering+-+Initiating+Coverage+-01.09.08

Buy KEC International - Target 455 - Within One Month

Buy Axis Bank - Target 768 - Within Two Months

The 45-nation Nuclear Suppliers Group, NSG has approved a US plan to engage in nuclear trade with India.

The approval came after almost three days of meeting in Vienna on Saturday.

National Security Advisor MK Narayanan has confirmed to CNN-IBN that waiver has been clinched in Vienna. Congress has called it a historical moment for India.

Post this waiver, US will take the 123 Agreement to the US Congress; the Congress will be convened in September.

The NSG waiver will allow India civil nuclear trade

The week was moderate. Not much of harm done.

Inflation cooling down from couple of weeks. But the poor global cues was the reason behind the colour red.

More over Crude had an intra day fall of over 8$. This was certainly a good news.

Experts predicting crude to trade range bounded.

Inflation is now not a key concern according to major economists.

The key factor to influence the market next week is "THE N DEAL".

Yesterday U.S Markets ended flat to negative. So on Monday it depends on how Asia opens.

Technically speaking NIFTY can see some support at 4200 and 4050 levels.

Inflation will not spoil the markets sentiments until Thursday.

Short term pick.

Buy Rajesh Export for target of Rs 58/- (1 Month)

Rajesh Export was given at Rs 45. CMP - Rs. 49.20

Book profits in Karuturi Global at Rs 28/- call given at Rs 22/- One month back. CMP - Rs 25/-

Scrip: - Moser Baer Ltd.

CMP: - 110

BSE Code: - 517140

Market Cap: - 1884.09

52 week H /L: - 344.80 - 87.90

Summary: - 

Moser Baer India Limited is an India-based company that is principally engaged in the business of manufacture and sale of optical storage media. The Company also has presence in business areas, such as solar energy, entertainment, information technology (IT) peripherals and consumer electronics. In the home entertainment segment, the Company has commenced film production in multiple languages. The Company’s Photovoltaic domain commenced its commercial operations during the fiscal year ended March 31, 2008. In the home entertainment segment, the Company has commenced film production in multiple languages. As of March 31, 2008, it offers home video titles in Hindi, English, Tamil, Telugu, Malayalam, Kannada, Marathi, Gujarati, Bengali and non-film categories. Its products are sold in approximately 80 countries. As of March 31, 2008, it had introduced new products, such as BDR 1X-6X, DVDR 8X Dual Layer, Double sided recordable discs, Diamond CDR and Archival Media.

Key Financial: - 

EPS and PE both running negative making no financial sound.

The development will surely change the phase of the company.

This will be seen on the balance sheets of the company.

Development : -

Lots of development happening around. the recent 6.5% stake sale is a good tactic to raise funds.

I feel this will surely benefit. The amount raised would go towards capacity expansion of the firm’s crystalline silicon and thin film solar verticals, largely at its Greater Noida facility. While the crystalline silicon cell manufacturing capacity would go up from 80 mega watt (MW) to 180 MW, thin film capacity would be increased from 40 MW to 120 MW by next year.

The firm plans to spend about $400 million on capex this fiscal, which would be part funded by the amount raised. The PV business had earlier received Rs 400 crore in private equity funding in November 2007. The business reported revenues of $43 million in 2007-08. With the latest round of funding Moser Baer will holds 93.5% stake in the PV subsidiary.

Moser Baer’s thin film PV business comes under PV Technologies India, while the crystalline silicon business is operated by another arm, Moser Baer Photovoltaic Ltd. Though crystalline silicon is more widely used in PV market, Moser Baer is banking more on the thin film technology.

So, its thin film capacity would be ramped up to 600 MW by 2011-12, while crystalline silicon capacity would go up to 200 MW. “Thin film has the potential to capture 15-20% of the global PV market in the next three years. It has lower cost compared to crystalline silicon and efforts are on to increase its efficiency, which is currently lower than crystalline silicon,” said Moser Baer CFO Yogesh Mathur. The solar market has grown from $13 billion in 2005 to an estimated $40 billion this year. It is further expected to grow to $50-70 billion by 2010.

This stock is only for long term Investors.

One can expect good returns in long term.

India got first major achievement after 1971 in terms of foreign policy when it got clearance from NSG for the nuclear deal. It crossed a major huddle when NSG cleared the nuclear deal and it became a remarkable achievement for the Manmohan Singh government after a stiff opposition from various political parties.

 

Deal came after 3 days of debate between 45-nation Nuclear Suppliers’ Groups in Vienna, India wanted to trade in nuclear commerce without being part of Non-Proliferation treaty (NPT). NSG clearance is going to be a positive trigger for market and we may very well see a rally of 300 to 500 Points on Sensex on Monday. Stocks to watchout for Monday would be RELINFRA, NTPC, BHEL, L&T, ROLTA, ABB, TATAPOWER, GAMMONINDIA, ALSTOM PROJECTS INDIA, CROMPTON GREAVES, AREVA T&D, L&T, and HINDUSTAN CONSTRUCTION for short term.

 

Now only one huddle stands between India and NSG countries and that is US Congress, Once it is done then India’s needs for Power generation would be fulfilled.

USA

Dow Jones Industrial Average

The Dow broke medium-term support at 11300, signaling a test of primary support at 11000. Friday's long tail and slightly higher volume indicate some support, but this is unlikely to hold.

Long Term: Twiggs Money Flow (21-day) reversal below recent lows would warn of another primary down-swing. Penetration of support at 11000 would signal a test of support between 10000 and 9700.

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