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Dec 3, 2009

BAJAJ AUTO BUY THE BREAKOUT

BAL crossed previous high of 1665 with very high volumes yesterday and maintained the breakout today by closing above 1665 and made a higher high and higher low indicating its bullish intentions. The stock has been showing good volumes earlier also and should show some very good up-move in the days to come. The medium term target of the stock as per fibonacci calculation is around 1830/1840.

Clutch Auto :

With a book value of double the current price and in the auto ancillary sector the stock looks excellent with a long term view.

Technical reasons given in the chart
Divis Labs :

The stock has been consistently recommended here since 530-560 levels. The view continues to remain strong with long term view.

Technically re-iterating the view with a long term target of 800/950.
Indra Prastha Medical Corporation:

The stock looks good in the medical sector.Investors can look to buy on declines with medium term view.

Technically a strong move could come on closing above 42.

MY CHART

Nifty :: Once again Doji star reversal spinning top candle pattern with Double top…. (Danger sign for bulls).. Already break yesterday first support 5111.. Now for 4th Dec. once Nifty break 5106 watch next two strong support 5075/5061 and last and final support 5038.. Our strategy for 4th Dec. Sell at high (S.L 5181) buy in deep (S.L 5038). Resistance for up move at 5160/5181/5203/5222.. Supports at 5106/5095/5075/5061/ 5038..

Honeywell Automation India Limited - HAIL is a leading provider of integrated automation and software solutions that looks at increasing productivity, enhancing comfort and ensuring safety and security. The company has around 2500 employees in India and is headquartered in Pune. It was setup in 1987 as a JV between TATA and Honeywell with manufacturing, design and engineering facility in Pune. In 2004, the parent company bought the stake of TATA. The company is today a leader in many of the business segments in which it operates in India.

The company has shown constant growth over the years in both topline and bottom line and stands far ahead of the other automation players in the country. It has a very strong footing in the hydrocarbons and processing industries space and the company is almost debt free. The company usually funds its expansion plans out of its internal accruals.

The company has presence in five major segments - in building solutions, environmental and combustion control, sensing and control systems, export divisions and processing solutions. The process solutions forms the major chunk of the revenues for the company and it accounts for more than 60% to the revenues. Honeywell has more than 20% market share in this space followed by ABB and Siemens.

However, companies like ABB and Siemens have a strong presence in power automation space and they are leaders in their own rights in equipments manufacture for power transmission and distribution. It is not that Honeywell will not be able to do them. Its just that it does not bids for contracts from power utilities and has been selective in taking up orders. However, with more and more private players jumping into the power generation space, Honeywell is expected to aggressively look into these segments.

In the hydrocarbon sector, the company has strong relationships with the majors like BPCL or IOC. Hydrocarbon industry is a key customer for various automation needs. Honeywell, apart from carrying out development and installation projects, plays an active role in maintenance as well.

One most well known category, when anybody thinks of Honeywell is the building solutions space, where has provided many successful products. The offering include fire automation, security solutions, energy conservation and building management systems. With the rebound in the real estate segment and with the growth of more and more office premises and Out of home gathering places, these products are expected to witnessed robust growth in the years to come.

The company has grown its revenues at a CAGR of around 25% over the last 3 years, while the net earnings grew at a CAGR of around 82 crore in the same period. For the first 9 months ending Sep 2009, the company has grown its earnings by more than 70% compared to the year ago period. 

 

FOR DATE 4-12-2009
SCRIP = HEXAWARE TECHNOLOGIES LIMITED. (NSE),
SCRIP CODE = HEXAWARE,
PREVIOUS CLOSE = 96.5,
STOP LOSS = 91,
TARGET = 119.
FOR INTRADAY MOVEMENT OF THE STOCKFILTER PLEASE Click Here!
(OR CLICK THE LINK ABOVE LIVE SENSEX WATCH.)

CHART AS ON 3-12-2009

WITH A CONSIDERABLE RISE IN VOLUMES, THE STOCK HAS GIVEN A FRESH BREAKOUT IN THE LAST TRADING SESSION. THE STOCK WAS IN CONSOLIDATION SINCE SEPTEMBER AND IS IN A STRONG UP TREND FROM JULY. CONSIDERING A SLIGHTLY LONG TERM VIEW, THE STOCK MIGHT RESET ITS TARGET TO A MUCH HIGHER LEVEL.
STOCHASTICS, RSI AND MACD ALL SHOW A POSITIVE CROSSOVER.
TECHNICAL ANALYSIS AND PORTFOLIO MANAGEMENT SUGGESTS THIS COUNTER GOOD FOR A SHORT TO MEDIUM TERM RANGE.
STRICTLY MAINTAIN AND FOLLOW THE STOP LOSS

Cement stocks which have been correcting since "Post Elections", have started to move up. Cement stocks generally give lead indications.
After a broader correction(Upward correction) for more than 3 months, Steel & other commodity stocks have started to trend higher and some in the process of doing so.
Reliance is also in the process of moving higher if it can break past 1120.
Bank stocks , after a brief correction, are on the verge of moving higher.
IT stocks continue to trend higher.
In Nifty, in the higher time frames such as Daily & Weekly, the prices continue to display higher high & higher lows. Highs are capped presently capped @ 5182. The moment that high is taken out, the bullishness will become obvious(Presently scores of stocks are outperforming..the big stocks are yet to do catching up).
Till a valid lower low is not done(and a subsequent lower high), no sustained fall is possible.
So stock pickers...have a blast of a time..