Debuting scrips in the green

Both IPOs listed in the week were trading in the green compared to their IPO prices.

Two scrips were listed on the BSE during the week ended 23 February 2007. One was a BPO firm, Firstsource Solution, while the other to the power sector public financial institute, Power Finance Corporation. By 23 February 2007, both were trading higher than their IPO prices.

Of the two newly-listed companies, Power Finance Corporation surged the most, 30.76% to Rs 111.15, by 23 February 2007 compared with the IPO price of Rs 85. The stock clocked an average daily volume of 4.06 crore shares since the day of debut. The scrip was listed on the BSE at Rs 104.

Firstsource Solution rose 22.46% to Rs 80.05 by 23 February 2007, compared with the IPO price of Rs 65 on 22 February 2007. The stock clocked an average daily volume of 1.99 crore shares from the date of debut. The IPO was listed on the BSE at Rs 75.10.

During the period under consideration, the market declined amid high volatility. Factors like the CRR-hike, rising inflation, concern over rising domestic interest rates, unwinding in derivatives ahead of expiry of February 2007 contracts on 22 February 2007, and fear that short-term capital gains tax may be hiked in the Union Budget 2007-08, were the major triggers for the fall. Caution was also partly due to worries of a possible interest rate hike by the Bank of Japan (BoJ), which was raised to 0.50% on 22 February 2007.

The BSE Sensex shed 723.02 points for the week ended 23 February 2007, to settle at 13,632.53 compared with the previous week’s closing of 14,355.55 on 15 February 2007. The S&P CNX Nifty lost 207.30 points, to settle at 3,938.90 compared with the previous week’s closing at 4,146.20.

Firstsource Solutions has highest average daily volume for week

Firstsource Solution posted the highest average daily volume for the week ended 23 February 2007.

The average daily volume for the BPO firm, which debuted at Rs 75.10 on the BSE on Thursday (22 February 2007), stands at 1.99 crore shares for the week ended 23 February 2007. The IPO price of the scrip was Rs 64, and had settled at Rs 79.60 on the day of debut.

IFCI, Zee News, Redington India, Cinemax India, Reliance Natural Resources, Pochiraju Industries, Global Broadcast News, Himachal Futuristic Company, Bellary Steels, Sail, and Aptech were the other average daily volume topper for the week ended 23 February 2007.

IFCI was the volume topper on most of the days during the week under consideration. The scrip dropped 4.63% for the week ended 23 February 2007, to close at Rs 27.80. The scrip’s average daily volume for the week ended 23 February 2007, stands at 1.86 crore shares, compared to the average daily volume of 65.58 lakh shares in the past 1 year.

The scrip with the third biggest average daily volume for the week ended 23 February 2007 was Zee News. The scrip surged 15.34% during the week, to close at Rs 41.35, on an average daily volume of 1.06 crore shares, compared with the company’s average daily volume of 27.60 lakh shares in the past 1 year.

Redington India stood fourth in the average daily volume toppers for the week ended 23 February 2006. The scrip dropped 11.61% to close at Rs 144.30 on 23 February 2007, compared to the closing price last weekend. The scrip, however, was traded heavily in the market. Its average daily volume for the week ended 23 February 2007 stands at 45.33 lakh shares compared to the average daily volume of 81.89 lakh shares during the past 1 year.

The other high average daily volume gainers were Cinemax India at 43.71 lakh shares (86.71 lakh shares was its average daily volume in the past 1 year), Reliance Natural Resources at 39.90 lakhs shares (41.25 lakh shares), Pochiraju Industries at 36.20 lakh shares (70.20 lakhs shares), Global Broadcast News at 33.57 lakh shares (40.60 lakh shares), Himachal Futuristic Company at 31.52 lakh shares (26.41 lakh shares), Bellary Steels at 31.47 lakh shares (18.35 lakh shares), SAIL at 28.97 lakh shares (33.69 lakh shares), and Aptech at 28.48 lakh shares (4.30 lakh shares).

The market had declined through the week amidst high volatility. Factors like the CRR-hike, rising inflation, concern over rising domestic interest rates, unwinding in derivatives ahead of expiry of February 2007 contracts on 22 February 2007, and fear that short-term capital gains tax may be hiked in the Union Budget 2007-08, were the major triggers for the fall. Caution was also partly due to worries of a possible interest rate hike by the Bank of Japan (BoJ), which was raised to 0.50% on 22 February 2007.

The BSE Sensex shed 723.02 points for the week ended 23 February 2007, to settle at 13,632.53 compared with the previous week’s closing of 14,355.55 on 15 February 2007. The S&P CNX Nifty lost 207.30 points, to settle at 3,938.90 compared with the previous week’s closing at 4,146.20.

Stock Updates

Mahindra & Mahindra Financial climbs up

At 3:06 pm, Mahindra & Mahindra Financial Services is quoting at Rs 268.80, up Rs 13.05, or 5.10%. It has touched an intraday high of Rs 270.90 and an intraday low of Rs 252.

It is trading with volumes of 57,893 shares. Yesterday the share closed down 0.04% at Rs 255.75.

EIH has resistance at Rs 117

Technical analyst, Rajat K Bose is of the view that East India Hotels has a resistance at Rs 117.

“East India Hotels did pretty well yesterday. Infact I have a feeling that East India Hotel is headed upwards in the short term, my target is something like Rs 123. If one wants to take a position here then put a stop loss of Rs 104 or Rs 103 and take a long position, expect something like Rs 123. In between, Rs 117 would be a resistance level.”

Buy XL Telecom at lower levels

Ambareesh Baliga of Karvy Stock Broking is of the view that one can buy XL Telecom at lower levels.

"The management of XL Telecom is saying if one is looking at Rs 18 EPS for FY07 it makes a decent buy at lower levels, it has already fallen below the issue price. If it falls more from here one can take a try."

Deccan Aviation can test Rs 148-153 in short term

Technical analyst, Rajat K Bose is of the opinion that Deccan Aviation could test Rs 148 to Rs 153 resistance levels in the short term.

“Deccan Aviation has shown a very positive technical set up. So chances are that atleast Rs 148 to Rs 153 resistance levels could well be tested in the short term.”

Hold Indiabulls with stoploss of Rs 640

Rahul Mohindar of Viratechindia is of the view that one can hold on Indiabulls Financial Services with stoploss of Rs 640.

"Indiabulls we had called for a target for Rs 660-670, which has very much been achieved and if stays past Rs 670 which was identified as resistance earlier on then one would look at further rally to Rs 710-720 levels. That is not too much from here so it doesn’t call for a fresh buy but if one is already invested into the stock then hold on with a Rs 640 stoploss. We are presently neutral on Century Textiles and Industries and haven’t taken a fresh call on that."

Worst is over for most of the sugar companies

Sajiv Dhawan of JV Capital Services is of the view that worst should be over from most of the sugar companies, so from that perspective enter the Bajaj Hindustan .

“Sugar is a sector, which is been talked about, it continues to disappoint for the last few months. If you are looking at fresh perspective now after the results well then the downside is probably limited the worst should be over of the sugar companies. But its one of the sector which time and time again has failed is sustain any levels, its not convincing the markets that the sector is going to perform and the results are going to start turning around.”

He further added, “So if you are a low risk investor then probably stay away from if you can take a bit of higher risk then maybe you could average out not really a strategy I normally condone but I think the worst should be over from most of these sugar companies, so from that perspective enter the Bajaj Hindustan. But still, as a whole sugar is not going to be a sector where will be aggressively invest in right now.”

McLeod Russel can add another 12-15%

Rahul Mohindar of Viratechindia is of the view that McLeod Russel can add another 12-15% in the short term.

"We do track McLeod Russel and the interesting thing with this stock is the previous lows at Rs 88, is where the stock took a nice bounce up couple of days back and one should hold on to the stock with a Rs 94 stoploss. I think the stock would comfortably move another 12-15% in the short-term but we don’t really see a long-term trigger coming in here. I would trade these counters more on the shorter term."

RNRL has target of Rs 29

Rahul Mohindar of Viratechindia is of the view that Reliance Natural Resources , RNRL has target of Rs 29.

"We have a price target on RNRL of Rs 29. There is some resistance towards Rs 26 but that seems to be short-term resistance. One could still go and buy this stock, or hold on to it and get a good return in short to medium-term.

Reliance Petroleum good long term play

Amarjeet Singh of Mangal Keshav Securities is of the opinion that Reliance Petroleum is a good long term stock.

“Reliance Petroleum has been moving in band of Rs 60-70. Until and unless it crosses Rs 70-71 with good volumes, it continues to move in sideways pattern. It is a good defensive stock; downside risk is less. It is a good long term stock.”

Enter ESS DEE Aluminium with 6-12 month time frame

Sajiv Dhawan of JV Capital Services is of the view that if one enter in ESS DEE Aluminium with six-twelve month time frame then he/she will get reasonable gains.

“ESS DEE Aluminium is not an IPO which from our side we saw much interest or response to but it has reasonably got listing on the first day. I think there will be some interest after the next 2-3 days. It takes time for these stocks to settle down especially when they don’t open with such a good cap on the upside. From the valuation’s perspective it’s reasonable, so it still got a good bit of headroom from that perspective. Next few days it might have to be on a higher risk side because there could be a bit of volatility."

He further added, "You could see the stock moving in sharp swings here and there. But if you got 6 months to 1-year timeframe then by all means enter at the current levels or if it does correct I think you will get reasonable gains. But there is not a lot of information from my, to offer on this particular stock position at the current time.”

Invest in Ansal; Mohindar

Rahul Mohindar of Viratechindia is of the view that one can invest in Ansal Properties.

"We like some of the realty stocks and we like specifically Ansal Properties, I think above Rs 960, it would give us a major breakout, which could even take the stock into new highs. So one can invest in it."

Jayshree Tea will do well for next few days

Sajiv Dhawan of JV Capital Services feels that Jayshree Tea will do well for next few days.

“Momentum has certainly come back today compare to sugar it’s obviously a much better sector, its not struggling as much. But I think Jayashree Tea going to be a market performer probably form current levels, Jayashree Tea is obviously in the export and plantation business, it has got some diversified products as well. It’s a part of a big group, BK Birla Group. So nothing wrong intrinsically with the stock, valuations are okay and the fact that the sector as a whole has done very well today."

He further added, "I think it will probably go well for this stock in the next few days. But if they do start to run up very sharply then a bit of profit taking is probably warranted and any aggressive position again I would not take until the results are out."

Media companies has good growth ahead

Neeraj Divan of Quantum Securities is of the view that media companies has good growth ahead.

"We are very positive on Media companies like Zee Entertainment Enterprises , New Delhi Television Ltd , NDTV or Television Eighteen , TV18. We feel there is a lot of potential for a media as whole because globally the companies are quite expensive. Our companies are not so expensive, so we feel TV18 is listed at good value and there is a good buying seen in the counter yesterday and going ahead also we see good growth for these kind of companies.