Sensex Technical View ;
The view remains the same sustaining above 17200 implies a move to 17700.
Stocks to watchout for :
Rcap did a small move in morning then volatility in it killed the move. KKCL and Nilkamal hold. Bombay Dyeing wait for it to come down.
Allahabad Bank buy above 122 for a tgt of 130-135. BHEL buy above 2520 for tgt 2560-2600 stop 2490.
Sugar stocks have given fresh breakouts. Triveni and Renuka seem safer bets for 1-2 weeks buy on declines.
High risk traders can watchout for Energy Dev , Ramsarup Inds, Sundaram Multi Pap for 2-3 weeks.
Nagarjuna Fertilizers chart posted.
Long term INVESTMENT VIEW MAINTAINED ON ; Divis Labs, Sharyans Resources, Clutch Auto , Saraswati Ind , Tata Sponge , J K Agri , Revathi
Nifty :: Once again Nifty made an Belt Hold Line Body Gap up bullish candle with volume. From last too many days we see such kind of move, first day Nifty move up from strong support without volume and next day all retailer jump in supper fast running Rajdhani train and volume increase..!! As per today’s chart Nifty and Sensex both near short term turning date.. And as per various Elliott wave count too may target meets between 5100 to 5195..All indicator made an long bearish divergence. Be careful at higher level may be Nifty open gap up with support of all word market.. At that time watch strong resistance zone in between 5183 to 5209, if face resistance near this level our strategy for intraday only sell at high (S.L 5209) buy in deep (S.L 5053) If Nifty open above all resistance wait and watch for breakdown.. Resistance for up move at 5146/5163/5183/5209.. Supports at 5068/5053/5046..
The market did open flat to positive led by global cues and It was a fantastic closing for the market which closed above its major hurdle level of 5110 after a long time.Market has already closed above its triangle resistance zone as shown in the chart which was placed near 5020,Nifty has its immediate hurdles now at 5160 and I mentioned clearly that there is no problem as long as we are holding above 4920 and we are continuously above this hurdle points in every fall that came in last few days.Nifty will whos 5160-5170 in this week and from this level one can hope few selling or profit booking as overall market will be bullish until unless any major concern comes in news and nifty above 5160 we will see 18 months high again which is near 5300.Immediate supports are placed near 5100 and then 5065.
NIFTY (5118.2)
Resistance : 5145 / 5180
Support : 5075 / 5045 / 5020
SENSEX (17231.11)
Resistance : 17340 / 17425
Support : 17080 / 16925
NIFTY FUT (5114.85)
Resistance : 5135 / 5160 / 5190
Support : 5090 / 5065 / 5035
MKT COMMENTS
NIFTY FUT OI flat with 35% decreasing volumes indicating not only short covering plus forming of long positions too.
We expect NIFTY FUT to trade positive with volatility.
On Wednesday,Opening Is Flat To Positive,
Buy NIFTY Above 5115,Sl Below 5095,Tgt 5145/5170/5195
Sell NIFTY Below 5095,Sl Above 5115,Tgt 5065/5040/5015
BUY
BHARTI,Sl 330,Tgt 365/75/85
ICICIBNK Abv 935,Sl 920,Tgt 955/65/75+
SBIN (2272),Sl Below 2245,Tgt 2305/15
PTC India Surges 20% on Possible Increase in Trading Fees
PTC India Ltd., the state-run electricity trader, surged by a record after a regulator proposed higher fees for electricity transactions.
PTC, the best performer on the BSE500 Index today, jumped 21 percent to 105.15 rupees as of 3:04 p.m. local time after climbing as much as 23 percent, its biggest gain since the stock’s trading debut in 2004. The shares are poised for their highest close since May 2008.
The Central Electricity Regulatory Commission proposed increasing the fee on power trading to 0.07 rupee per kilowatt- hour, from 0.04 rupee, when the sale exceeds 3 rupees (6 cents) a kilowatt-hour, according to a circular dated Oct. 12 on its Web site.
“The proposed changes for increasing trading margins if approved will be a big boost for power trading companies,” Mumbai-based Harshawardhan Dole, an analyst with IIFL Ltd., said in a phone interview today.
The regulator said in a separate notice it sought feedback of the draft rules by Nov. 11.
PTC India Ltd., the state-run electricity trader, surged by a record after a regulator proposed higher fees for electricity transactions.
PTC, the best performer on the BSE500 Index today, jumped 21 percent to 105.15 rupees as of 3:04 p.m. local time after climbing as much as 23 percent, its biggest gain since the stock’s trading debut in 2004. The shares are poised for their highest close since May 2008.
The Central Electricity Regulatory Commission proposed increasing the fee on power trading to 0.07 rupee per kilowatt- hour, from 0.04 rupee, when the sale exceeds 3 rupees (6 cents) a kilowatt-hour, according to a circular dated Oct. 12 on its Web site.
“The proposed changes for increasing trading margins if approved will be a big boost for power trading companies,” Mumbai-based Harshawardhan Dole, an analyst with IIFL Ltd., said in a phone interview today.
The regulator said in a separate notice it sought feedback of the draft rules by Nov. 11.
Cap on trading margins may be raised 75% http://www.livemint.com/2009/10/15010257/Cap-on-trading-margins-may-be.html?h=B
http://www.dnaindia.com/money/report_cap-on-trading-margins-up-75pct-ptc-to-benefit_1299087
http://www.dnaindia.com/money/report_cap-on-trading-margins-up-75pct-ptc-to-benefit_1299087
If there is one company in India that really has the capability and that really does some kind of world class engineering, i would say that L and T. You name a broad vertical in engineering space and you will find L and T as the flag bearer out there. Also, the company has been good at foraying into new spaces, as and when the opportunities arise. Nuclear power, Defense, Ship building are the latest additions.
L and T has been a significant player in the Power space but they have mostly been concentrating on building power plants and manufacturing associated equipments. Now, the company seems to be drawing up plans to enter the power generation space. The story of Power is well known and this space is an attractive bet for the next decade. India has to go a long way in achieving self sufficiency and reaching the Power for All mandate.
MMS has pledged to spend around 56,000 crore to add power plants and transmission lines for the current fiscal. The government has plants to add around 78,000 MW of generation capacity in the current five year plan and more than 100,000 MW in the next five year plan.
The company could be investing in putting up power plants with capacities between 1000MW and 2000 MW. The CFO from the company has claimed that such power plants could be setup in the next one or 2 years. The company is also looking at expanding to 5000 MW category in the years after that.
The company already has a strong footing in this space but more on the engineering side. The company expects to get power relates orders of around 10,000 crore this fiscal year. The company has been actively looking at buying out mines globally and this is seen as a strategic step to secure coal supplies for the its power plant plans.
Larsen which already builds power plants for many Power generation majors has a strong presence in the transmission arena as well. The government has firmed up plans to invest around 40,000 crore to build transmission lines in the next five years. The company receives more than 70% of its revenues from the engineering and construction business. The company has more recently raised around 600 million USD to add railways, defense and shipbuilding to its main business.
Larsen has a JV with Mitsubishi Heavy industries through which it supplies equipments to power plants. The JV had recently won orders valued at around 4000 crore to supply equipment for a 1320 MW power plant in India. It looks quite natural for the company to enter power generation space since the company has been building power plants, has a presence in transmission and supplies critical equipments for the industry as well.
L and T has been a significant player in the Power space but they have mostly been concentrating on building power plants and manufacturing associated equipments. Now, the company seems to be drawing up plans to enter the power generation space. The story of Power is well known and this space is an attractive bet for the next decade. India has to go a long way in achieving self sufficiency and reaching the Power for All mandate.
MMS has pledged to spend around 56,000 crore to add power plants and transmission lines for the current fiscal. The government has plants to add around 78,000 MW of generation capacity in the current five year plan and more than 100,000 MW in the next five year plan.
The company could be investing in putting up power plants with capacities between 1000MW and 2000 MW. The CFO from the company has claimed that such power plants could be setup in the next one or 2 years. The company is also looking at expanding to 5000 MW category in the years after that.
The company already has a strong footing in this space but more on the engineering side. The company expects to get power relates orders of around 10,000 crore this fiscal year. The company has been actively looking at buying out mines globally and this is seen as a strategic step to secure coal supplies for the its power plant plans.
Larsen which already builds power plants for many Power generation majors has a strong presence in the transmission arena as well. The government has firmed up plans to invest around 40,000 crore to build transmission lines in the next five years. The company receives more than 70% of its revenues from the engineering and construction business. The company has more recently raised around 600 million USD to add railways, defense and shipbuilding to its main business.
Larsen has a JV with Mitsubishi Heavy industries through which it supplies equipments to power plants. The JV had recently won orders valued at around 4000 crore to supply equipment for a 1320 MW power plant in India. It looks quite natural for the company to enter power generation space since the company has been building power plants, has a presence in transmission and supplies critical equipments for the industry as well.
Stock Chart Pattern - SpiceJet
Before starting the technical analysis of the stock chart pattern of SpiceJet (a reincarnation of ModiLuft), I need to clarify why I'm writing about a stock from the airline sector that is in perennial doldrums worldwide.
The airline industry in India has been a tale of missed opportunities, poor service, government intervention, over-estimation of passenger traffic, hubris of owners with little or no experience in the travel industry and mounting losses.
What attracted me to the SpiceJet stock? Firstly, it is a low-cost airline. In the USA - the 'mecca' of air travel - only low-cost airlines like JetBlue and SouthWest make any money.
Secondly, its Jun '09 (Q1) results. 21% growth in passengers, that led to a 15% growth in revenues and a Rs 26 Crore net profit, compared with a Rs 129 Crore loss in Q1 '08. (Jet Airways posted a loss of Rs 225 Crore in Q1 '09 against a profit of Rs 143 Crore in Q1 '08.)
Most importantly, the company has got financial backing from billionaire Wilbur Ross, who has invested about Rs 350 Crores that has given the company financial stability and provided relief from cash flow problems.
Needless to say, the stock price has reacted very favourably, as the 2 years bar chart pattern of SpiceJet will show:-
After making a high of Rs 100 in Jan '08, the stock dropped more than 90% during the bear market. A sideways consolidation, followed by a bull rally, took the stock to the Rs 28 level in early Jun '09, above the 200 day EMA.
A strong correction quickly brought the stock below both the 50 day and 200 day EMA, to the Rs 17 mark, when the news of the positive Q1 '09 results were declared.
A sharp rally on good volumes followed, as the stock entered a bull market, moving above the medium term and long term averages to Rs 43. It is facing some resistance at the 38.2% Fibonacci retracement level of the entire bear market fall.
Notice the bullish saucer pattern that the stock has formed. That means it can reach its previous high in the medium term, giving it a 100% upside target. Provided that the Q2 '09 results are not too disappointing. The monsoon months are not the best period for air travel.
The RSI has slipped below the overbought zone. So has the slow stochastic. The MACD is mildly positive and just above the signal line. The clincher is the OBV. After steady accumulation by smart investors, volumes have perked up strongly for the past month.
Bottomline? The stock chart pattern of SpiceJet indicates that there is plenty of upside left. But the fundamentals have a long way to improve to reach investment-worthy levels. This one is for investors with large risk appetites. Can be bought on dips with strict stop-loss.
The airline industry in India has been a tale of missed opportunities, poor service, government intervention, over-estimation of passenger traffic, hubris of owners with little or no experience in the travel industry and mounting losses.
What attracted me to the SpiceJet stock? Firstly, it is a low-cost airline. In the USA - the 'mecca' of air travel - only low-cost airlines like JetBlue and SouthWest make any money.
Secondly, its Jun '09 (Q1) results. 21% growth in passengers, that led to a 15% growth in revenues and a Rs 26 Crore net profit, compared with a Rs 129 Crore loss in Q1 '08. (Jet Airways posted a loss of Rs 225 Crore in Q1 '09 against a profit of Rs 143 Crore in Q1 '08.)
Most importantly, the company has got financial backing from billionaire Wilbur Ross, who has invested about Rs 350 Crores that has given the company financial stability and provided relief from cash flow problems.
Needless to say, the stock price has reacted very favourably, as the 2 years bar chart pattern of SpiceJet will show:-
After making a high of Rs 100 in Jan '08, the stock dropped more than 90% during the bear market. A sideways consolidation, followed by a bull rally, took the stock to the Rs 28 level in early Jun '09, above the 200 day EMA.
A strong correction quickly brought the stock below both the 50 day and 200 day EMA, to the Rs 17 mark, when the news of the positive Q1 '09 results were declared.
A sharp rally on good volumes followed, as the stock entered a bull market, moving above the medium term and long term averages to Rs 43. It is facing some resistance at the 38.2% Fibonacci retracement level of the entire bear market fall.
Notice the bullish saucer pattern that the stock has formed. That means it can reach its previous high in the medium term, giving it a 100% upside target. Provided that the Q2 '09 results are not too disappointing. The monsoon months are not the best period for air travel.
The RSI has slipped below the overbought zone. So has the slow stochastic. The MACD is mildly positive and just above the signal line. The clincher is the OBV. After steady accumulation by smart investors, volumes have perked up strongly for the past month.
Bottomline? The stock chart pattern of SpiceJet indicates that there is plenty of upside left. But the fundamentals have a long way to improve to reach investment-worthy levels. This one is for investors with large risk appetites. Can be bought on dips with strict stop-loss.
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