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Monday, January 07, 2008
Reliance Power Grey Market premium soaring
Future Capital Holdings 700 to 765 550 to 560
Reliance Power 405 to 450 430 to 440
SVPCL 42 DISCOUNT
Aries Agro 130 25 to 30
Manaksia Ltd. 160 15 to 20
Porwal Autocomponents 75 DISCOUNT
Precision Pipes & Profiles 150 20 to 25
Morning Call - Jan 7 2008
Market Grape Wine :
In House :
Nifty at a supp of 6215 and 6200 and resis at 6317
Intra Day: Buy reliance above 2930 with a TGT of 3010 and a SL of 2910
Buy aloktext above 107 with a TGT of 117 and a SL of 103
F&O: Buy RCOM above 768 with a TGT of 785 and a SL of 761
Buy BEML above 1805 with a TGT of 1865 and a SL of 1780
Out House :
Markets at a support of 20341 & 20134 levels with resistance at 20786 & 20717 levels .
Buy : RIL
Buy : RNRL & REL at dips
Buy : JpAsso & Jphydro
Buy : YesBank at dips
Buy : TataPower & Suzlon at dips
Buy : IBUllsreal & IBullsFin
Buy : ISPAT at dips
Buy : SBIN at dips
Buy : Aban & RelCap at dips
Dark Horse : RIL , REL , Jphydro , RNRL , IBullReal , RPL , Adhunik & SBIN
Pre Open Market Commentary
The Indian market today is likely to have a negative opening, as the cues from the global markets are not in favor. On Friday, the Indian market closed on a strong note led by heavy buying across all the index heavyweights. The market opened firmly and keeps on marching forward throughout the trading session but pares some of its gains towards the end of the session. The Inflation based on the wholesale price index (WPI) rose to 3.50% for the week ended 22 December 2007 as compared to 3.45% in the week ended 15 December 2007. The BSE Sensex closed higher by 341.69 points at 20,686.39 and NSE Nifty closed up by 95.75 points at 6,274.30. We expect that the market may remain cautious during the trading session.
On Friday, the US market closed in red. The Dow Jones Industrial Average (DJIA) closed lower by 256.46 points at 12,800.26. Nasdaq fell by 98.03 points to close at 2,504.65 and S&P 500 index slipped by 35.53 points to close at 1,411.63
Indian ADRS closed in negative. In technology sector, Wipro declined by 5.86% along with Satyam by 5.43%, Infosys by 4.06% and Patni Computers by 3.51%. In banking sector, HDFC bank and ICICI bank fell by (5.33%) and (1.34%). VSNL and MTNL dropped by (4.65%) and (3.67%) respectively.
The major stock markets in Asia are trading weak. Hang Seng is trading lower by 720.60 points at 26,799.09. Taiwan Weighted declined by 270.19 points to trade at 7,950.91. Japan''s Nikkei slipped by 147.29 points to trade at 14,544.12.
On Friday, the FIIs stood as net buyer both in equity and debt. The gross equity purchased was Rs6,007.10 Crore and the gross debt purchased was Rs390.90 Crore while the gross equity sold stood at Rs5,281.90 Crore and gross debt sold stood at Rs3 Crore. Therefore, the net investment of equity reported was Rs725.10 Crore and net debt was Rs387.90Crore.
Today, Nifty has support at 6,159 and resistance at 6,329 and BSE Sensex has support at 20,231 and resistance at 20,853.
Daily Trading Calls - Jan 7 2008
Nifty (6274) Sup 6182 Res 6331
Buy Chennai Petro (422-430) SL 418 Tgt 438, 442
Buy Wockhadrt (423-431) SL 418 Tgt 440, 443
Buy GNFC (218-224) SL 214 Tgt 232, 236
Sell Mphasis (288-283) SL 292 Tgt 274, 271
Sell HCL Tech (312-307) SL 307 Tgt 299, 295
Morning blues after a weak end!
Don't wait for extraordinary opportunities. Seize common occasions and make them great. Weak men wait for opportunities; strong men make them.”
After new all-time peaks last week, the main indices could face resistance at today. Wall Street tumbled on Friday after weaker-than-expected jobs data sparked renewed concerns over a possible recession in the US. That triggered a world-wide sell-off and would most certainly hurt sentiment here as well, at least at the start of trading. But, with inflows from FIIs and Mutual Funds holding firm there is a chance of a rebound later in the day or tomorrow. The biggest trigger for India will be the quarterly results that will start kicking in from this week. IT shares will of course be the focus of attention amid a sharp fall in the Nasdaq on Friday and anxiety over their Q3 earnings and outlook.
Apart from the results, one will have to watch out for three other big events that will have a major bearing on the sentiment - the Fed announcement on Jan. 31, RBI's quarterly review and the Union Budget. Ideally speaking, the Indian economy should not be that affected by a recession in the US, though some export-driven sectors may take a hit. If rates fall further in the US, the overseas inflows into Indian stocks should increase further. Expect more volatility with a positive bias. Persistent bad news from the US and further declines on Wall Street could prove to be a potential party pooper for the Indian bulls.
Results Today: ABG Shipyard, Bilpower and Kohinoor Broadcasting.
State Bank of India (SBI) says that its Central Board will meet on January 14, to consider the Rights Issue.
Advanta India has acquired the business of Unicom Seeds, which has a strong presence in the domestic and export markets of vegetable seeds. Unicom also undertakes the custom production of vegetable seeds for the customers all around the globe.
MIC Electronics' Board will meet on January 12, to consider setting up of subsidiaries in Singapore, China, Taiwan, Korea and South Africa / Kenya. The Board will also discuss Separate Business Units (SBUs) for Digital Display Rental Business, Digital Bill Board Infrastructure and LED Lighting (grid & off grid) on Build-Operate-Transfer model. It will also consider finalization of acquisition of two companies.
US stocks sank on Friday after a grim jobs report heightened concerns that the housing sector mess and the subsequent strain in the credit markets would drag the world's biggest economy into a recession.
The Dow Jones Industrial Average suffered its worst start to a year since the Great Depression and the Nasdaq its worst since inception following a steep jump in the unemployment rate last month.
Technology shares were the worst performer in a broad-based decline with Intel slumping 8%.
The Dow dropped 256.54 points, or 1.96%, at 12,800.18. The Standard & Poor's 500 Index slid 35.53 points, or 2.46%, at 1,411.63. The Nasdaq Composite Index was down 98.03 points, or 3.77%, at 2,504.65.
It was the Nasdaq's biggest one-day point loss since Sept. 17, 2001, the day Wall Street resumed trading after having been shut in the aftermath of the 9/11 terror strikes in New York. On that day, the Nasdaq lost 115.83 points.
Market breadth was negative. Ten shares declined for every one that rose on the New York Stock Exchange.
US bonds rallied, as investors rushed for safe haven investments and the dollar fell further versus other major currencies. However, oil and gold prices declined from recent all-time highs.
The bleak jobs report reinforced a growing view on Wall Street that the US economy had slowed substantially and could slip into a recession following the housing sector meltdown and the stress in the credit markets.
At the same time, it raised hopes that the Federal Reserve this month might cut rates aggressively to prevent the impending recession. The FOMC, the Fed's policy panel, is holding a two-day meeting on January 29-30.
According to interest rate futures, traders and investors were pricing in a 68% chance that the Fed would cut rates by a half percentage point at its Jan. 31 meeting, up from 34%. The odds of a quarter point cut slipped to 32% from 66%.
Harvard University economist Martin Feldstein, head of the group that dates economic cycles in the US, says that the odds of a recession are more than 50% after a report showing the unemployment rate jumped. "We are now talking about more likely than not," Feldstein, President of the National Bureau of Economic Research, has been quoted as saying by a newswire agency. "I have been saying about 50%. This now pushes it up a bit above that."
Treasury prices rose, as investors sought safety in the relatively less risky government debt. The rise lowered the yield on the 10-year note to 3.84% from 3.89% late on Thursday. In currency trading, the dollar slipped versus the yen and the euro.
US light crude oil for February fell US$1.27 to settle at US$97.91 per barrel on the New York Mercantile Exchange, after hitting a record trading high above US$100 a barrel during Thursday's session.
COMEX gold for February delivery fell US$3.40 to settle at US$869.10 an ounce, pulling back from an all-time high hit Wednesday.
Asian markets were trading soft this morning following big losses in US shares on Friday amid mounting worries over the impending recession. The Nikkei was down 147 points or 1% at 14,544 while the Hang Seng in Hong Kong shed 710 points or 2.6% at 26,807.
The Kospi in Seoul fell 35 points or nearly 2% at 1828 while the Straits Times in Singapore dropped 81 points or 2.4% at 3556. The Taiex in Taiwan dived 270 points or 3.3% at 7950 while the Shanghai Composite in Singapore added 22 points or 0.4% at 5383.
Samsung Electronics and Nintendo declined on speculation that consumer spending in the US, Asia's largest export market, will slow. BHP Billiton led mining companies lower after metals prices dropped on concerns that the US housing slump and tighter credit conditions are hurting demand.
The MSCI Asia Pacific Index fell 2.1% to 152.81 as of 11:10 a.m. in Tokyo, adding to a two-day, 1.5% decline. About six stocks fell for each that gained on the benchmark, which is headed for its biggest drop since Dec. 17.
European stocks too crumbled on Friday. The pan-European Dow Jones Stoxx 600 index declined after early gains, falling 1.9% to 352.00. The UK's FTSE 100 closed down 2% at 6,348.50, while the French CAC 40 slipped 1.8% to 5,446.79, and the German DAX 30 lost 1.3% at 7,808.69.
The scene was similar in the emerging markets. The Bovespa in Brazil was down almost 3% at 61,036 while the IPC index in Mexico slid nearly 1.9% to 28,317, and the ISE National-30 index in Turkey lost 2% at 66,152.
Global weakness to dampen sentiment
It was a stellar session as sustained buying in the frontline stocks lifted the benchmark Sensex to hit all time high on Friday. The Capital Good, Banking and the Oil & Gas stocks led the rally. However, on the other side the IT, pharma and the Small-Cap stocks were the major laggards.
Better than expected Inflation figures coupled with positive cues form the Asian and the European markets kept the sentiments bullish. India Inflation was at 3.50% in the week ended Dec 22 against expectation of 3.43%. Finally, 30-share Sensex closed at 20,686 gaining 341 points and Nifty ended at 6,274 up 95 points.
NOCIL was locked at 5% lower circuit to Rs64.60 after the company clarified that the is not a part of Mukesh Ambani led Reliance Industries and NOCIL Petrochemicals is not a subsidiary of NOCIL and hence the question of shareholders of NOCIL getting new shares of NOCIL Petrochemicals does not arise at all. The scrip touched an intra-day high of Rs67.95 and a low of Rs64.60 and recorded volumes of over 17,00,000 shares on NSE.
JP Associates surged by over 2.5% to Rs485 after media reports stated that the company is looking to raise $1bn through its power arm. The scrip touched an intra-day high of Rs509 and a low of Rs480 and recorded volumes of over 1,00,00,000 shares on NSE.
Ramsarup Industries gained 1.3% to Rs286 after the company announced that they secured order worth Rs440mn. The scrip touched an intra-day high of Rs300 and a low of Rs282 and recorded volumes of over 18,000 shares on NSE.
BHEL gained 1.8% to Rs2544 after the company declared that they secured export order for transformers. The scrip touched an intra-day high of Rs2560 and a low of Rs2461 and recorded volumes of over 6,00,000 shares on NSE.
RCF was locked at 5% upper circuit to Rs143.25 after reports stated that the company diversifies in to Rapid wall production. Intends to manufacture 1.4mn sq.mt of wall panels annually. The scrip touched an intra-day high of Rs143.25 and a low of Rs143.25 and recorded volumes of over 1,00,000 shares on NSE.
Tulip IT marginally slipped 0.2% to Rs1114 the company announced that it secured a project worth Rs577mn from Assam state Wide Area Network. The scrip touched an intra-day high of Rs1166 and a low of Rs1140 and recorded volumes of over 25,000 shares on NSE.
Ahluwalia Contracts was down 1.2% to Rs353. The company announced that they secured order worth Rs3.87bn. The scrip touched an intra-day high of Rs376 and a low of Rs301 and recorded volumes of over 1,00,000 shares on NSE.
Rajesh Exports was flat at Rs881. Reports stated that they have launched diamond jewellery range. The scrip touched an intra-day high of Rs898 and a low of Rs878 and recorded volumes of over 1,00,000 shares on NSE.
Tata Motors was down 1.2% to Rs784. According to reports Ford selected the company as the preferred bidder for its Jaguar and Land Rover brands. The scrip touched an intra-day high of Rs812 and a low of Rs722 and recorded volumes of over 4,00,000 shares on NSE.
Flawless Diamond advanced 1.8% to Rs124 after the company declared that it received export order worth Rs321mn. The scrip touched an intra-day high of Rs128 and a low of Rs123 and recorded volumes of over 70,000 shares on NSE.
What the FIIs are doing
FIIs were net buyers of Rs160.1mn (provisional) in the cash segment on Friday while the local institutions pumped in Rs5.07bn. In the F&O segment, foreign funds were net sellers of Rs9.08bn.
On Thursday, FIIs were net buyers of Rs7.25bn in the cash segment. Mutual Funds were also net buyers of Rs4.9bn on the same day.
News Snippets:
Jet Airways to go for a private placement or QIP to dilute promoters stake by 5%. (BL)
M&M may pull out of the Rs40bn three way Chennai joint venture with Renault and Nissan. (FE)
Chrysler has initiated negotiations with M&M for a partnership in India. (ET)
ONGC seeks Rs160bn worth of incentives for its proposed 15mn ton pa refinery at Kakinada. (BS)
London based Caparo group to invest Rs35bn to set up an automotive and aerospace components park in Andhra Pradesh. (BL)
SBI, ICICI Bank, Bank of Baroda and Bank of India to book mark-to-market losses on the exposures of their foreign offices to credit derivatives. (BS)
Reliance Industries seeks a minimum supply of 3.6mn scmd of gas for its petrochemical plants from Panna-Mukta and Tapti fields. (TOI)
BSNL to form a separate tower company early this year; may lease out 40,000 towers to private companies. (Mint)
ADAG plans to bring all its proposed overseas power generation projects under Reliance Power; group evaluates options to make power equipment. (ET)
SAIL scouting for new iron ore mines; applies for prospecting and mining leases. (BL)
BHEL plans to boost exports six-fold by 2012. (DNA)
Gitanjali Gems on look out for more buy outs in US, the largest jewellery market in the world. (BS)
Reliance Power may invest in Ratnagiri Gas and Power if private companies allowed in the erstwhile Dabhol project. (Mint)
Indian Oil’s 330km Paradip-Haldia crude oil pipeline to go on stream in six weeks. (BS)
Reliance Industries may offer rigs to ONGC in two or three locations in 2008-09 on a sharing basis. (BL)
Gujarat Fluorochemicals will sell half the poly tetra fluoro ethane (PTFE) output of its Dahej plant to an European collaborator. (DNA)
HPCL has raised Rs2.9bn from sale of oil bonds. (DNA)
PE firm General Atlantic may buy 10% stake in Essar Power. (ET)
PE firm would pick up 15% equity stake in Mahindra Forgings. (ET)
PFC plans SPV to offer consultancy services across various sectors. (TOI)
Canara Bank may acquire a bank this year. (ET)
DoT doubts Spice Telecom’s eligibility for licenses in 20 circles on lack of the required net worth. (BS)
Indian Railways hikes iron ore freight, less than two months prior to railway budget. (BL)
Inflation rises to 3.5% for week ended December 22nd, as vegetables become costlier. (TOI)
Ethanol may get ‘declared goods’ status in Budget. (ET)
Fuel prices may rise after January 17th when PM’s ministerial panel on commodity prices meets to approve the hikes. (TOI)
Government expects investments worth Rs2tn in the aviation sector in the next 10 years. (ET)
Mandatory licensing requirement for Indian banks to open branches may be abolished. (BS)
Government plans to set up a national electricity fund with a corpus of Rs1tn for investment in the transmission and distribution sector. (FE)
Government to earn Rs70bn from spectrum fee in 2008-09, without impacting tariffs. (TOI)
Himachal Pradesh Government invites bids from domestic and global companies for 1,481MW hydel units. (BS)
Finance Minister asks public sector banks to cut deposit & lending rates by 50bps. (FE)
Crude slips on recession fears
Weak job data rekindle recession fears
Crude prices dropped more than $1 on Friday, 4 January, 2008 after a US report came up with much below-expected job data. The same raised concern of a recession that would curb energy demand.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
Crude-oil futures for light sweet crude for February delivery closed at $97.91/barrel (lower by $1.27/barrel or 1.3%) on the New York Mercantile Exchange. Earlier, during the trading hours, crude oil for February delivery fell to almost $97.1. At this close, prices ended $2 higher for the week.
As per Labor Department, U.S nonfarm payrolls rose by a seasonally adjusted 18,000 in December. It was the weakest growth seen since August 2003.
In the currency market, the dollar fell to a one-month low against the euro on speculation the Federal Reserve will cut borrowing costs by a half percentage point to bolster the economy.
Brent crude oil for February settlement on Friday fell 81 cents to $96.79 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas ends 5% higher for the week
Natural gas in New York advanced on forecasts that colder weather in some regions will increase demand to heat homes and businesses. Gas for February delivery rose 16.7 cents (2.2%) to settle at $7.841 per million British thermal units. It ended 4.8% higher this week. Prices are 27% higher on a yearly basis.
On Friday, the Energy department reported that natural gas supplies fell 87 billion cubic feet to 2.92 trillion cubic feet in the week ended 28 December.
Against this backdrop, February reformulated gasoline lost 3.04 cents to $2.511 a gallon and February heating oil fell 3.36 cents to $2.6855 a gallon.
At the MCX, crude oil for January delivery closed at Rs 3,836/barrel, lower by Rs 64 (1.6%) against previous day’s close. Natural gas for December delivery closed at Rs 306.3/mmtbu, higher by Rs0.7/mmtbu (0.23%).
Members of the OPEC left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world's oil, will review output at a 1 February, 2008 meeting in Vienna.
As per EIA, global oil markets will likely remain tight through 2008 and monthly average oil prices are expected to near $85 per barrel over the next year. The IEA, an adviser to 27 nations, said global demand in 2008 will rise 2.5% to 87.8 million barrels a day.
A disastrous week for US Market
Stocks suffer heavy loss for the week as job report disappoints and Intel is downgraded
New year did not take off very smoothly for investors in US Market. Stocks suffered heavy losses during the week when economic reports dominated. They were mixed in nature. Stocks began the week on an extremely shaky note and stocks plunged on first day of the week, which was also the last trading day of FY 2007. But Friday’s (4 January, 2008) weak job report from the Labor Department took maximum steam out of the market and market suffered huge losses for the week ending on Friday, 4 January, 2008.
The Dow Jones Industrial Average lost 565 points for the week. Tech - heavy Nasdaq lost 170 points. S&P 500 lost 67 points.
FY 2007’s star performer, Technology sector bled during the whole week. Percentage wise Nasdaq suffered the maximum losses.
After returning from the New Year break on Wednesday, 2 January, 2008, stocks were pressured due to a surprise contraction in manufacturing activity and surging oil prices, which hit $100 per barrel. Dow ended the day with a huge loss of 220 points. Nasdaq too shed 42 points.
The December Institute of Supply Management (ISM) Index, a national purchasing manager survey, disappointingly dropped to 47.7, compared to November's reading of 50.8. The number also came in short of the consensus estimate of 50.5, and is the lowest level seen since April 2003. Because the number is below 50, it indicated a contraction in manufacturing.
Due to some mildly positive initial claims and factory orders data, the market managed to end flat but mixed on Thursday, 3 January, 2008 with Dow registering a mere gain of 12 points. Nasdaq, however ended in the red.
The Department of Commerce reported that November factory orders rose by 1.5%. Market expected orders to rise by 1%. Also, the Labor Department showed that new claims for unemployment for the week ended 29 December fell to 336,000, from 357,000 in the previous week.
On Friday, 4 January, 2008, Labor Department reported that nonfarm payrolls rose by just 18,000 positions in December, after an upwardly revised 115,000 gain in November. At the same time, the unemployment rate bumped up to 5% from 4.7%. Market had been expecting a 70,000 gain in nonfarm payrolls and a 4.8% unemployment rate.
Dow and Nasdaq ended the day with a huge loss of 256 points and 98 points respectively. A downgrade of Intel by JP Morgan weighed heavily on the technology sector.
Among some positive stories for the week, the minutes from the Federal Reserve's 11 December meeting were released and the same suggested that the central bank sees more interest-rate cuts ahead.
In the automobile sector, Ford, Toyota and General Motors reported lower December sales. Chrysler and Honda Motor reported small gains.
Executive Summary
For the week, indices registered substantial losses. DJIx and S&P 500 closed down by 4.4% and 4.6% respectively. Technology sector was the most affected and Nasdaq went down by 6.3%. Economic reports dominated the week. But Friday’s job report affected the market most.
For the year, Dow, Nasdaq and S&P 500 are down by 3.5%, 5.6% and 3.9% respectively. A downgrade of Intel by JP Morgan weighed heavily on Nasdaq for the week.
It’s tough to say what the primary market drivers of FY 2008 will be. But it is for certain that the US stock market will continue to face a slew of threats - more adjustable mortgage resets, a still tight credit market and the possibility of accelerating inflation.
Weekly Technical Analysis
Nifty — The index traded positive during the opening sessions of the week after which it rallied toward 6300 toward the closing session of the week. It ended the week with gains of 194 points.
Moving Averages — The 50 dma = 5870, 20 dma = 6021 and 10 dma = 6089. The index is trading above its averages; declines during the week should find support around the averages.
Momentum Oscillators — On the daily chart, MACD is in buy mode. RSI (14) - Relative Strength Index is exhibiting a reading of 68.82 (reading above 70 signifiesoverbought and below 30 signifies oversold). Stochastic (5,3) is in sell mode and in overbought zone. Momentum Oscillators suggest the index can see intra-week choppy movement.
Support — The index has support around 6185-6089 band. The level of 6185 (high of 13 December 2007) and 6089 is the 10 dma. Lower support during the week is around 6021. Intra-week declines should find support around 6185-6089
band.
Resistance — The index faces resistance around 6300 levels.
Conclusion — Intra-week declines should find support around 6185-6089 band
Market outlook remains positive
| The target projection for Nifty is about 6550 around the Union Budget. |
| The market celebrated the new year by spurting to a new high despite a spike in crude prices and the continuing subprime crisis. The Nifty ended at 6274 after rising to touch 6300. |
| That was a gain of 3.19 per cent. The Sensex hit 20763 before easing down to close at 20686 for a gain of 2.37 per cent. The Defty underlined the dollar's importance by rising 3.46 per cent. The FIIs and mutuals were both net buyers. |
| Breadth was good throughout the week and volumes recovered strongly in the new year. The Nifty Junior continued to outperform its elder brother by rising a whopping 5.7 per cent. |
| The Midcaps was up 6.37 despite a sell off on Friday. The BSE 500 was ahead by 4.15 per cent – action was clearly concentrated in the more liquid stocks. |
| Outlook: The pattern looks very good with an apparent high-volume breakout from a very promising formation. The target projection would be about 6550 in a timeframe of about 6-8 weeks – that is, around the Budget. |
| Rationale: Between early November and last week, the Nifty and Sensex performed inverted head and shoulder (H&S) formations and completed breakouts on volume expansion. |
| The breakout was backed by breadth and there was apparent consolidation. The neckline of the reverse H&S would be around 6185 and that should act as a support on the next short-term correction. Target projections with reverse H&S generally tend to be reliable. |
| Counter-view: Inverted H&S failure occurs if there is a dip below the neckline. A couple of closes below 6150 would suggest the formation has failed. As of now, this appears unlikely due to the supporting volume and breadth. |
| Bulls & bears: Despite the strong breadth, there were few clearly positive sectorial trends. Realty stocks such as DLF and Parasvnath were outperformers. |
| RIL and RPL did well as did RNRL, RPL and REL. Otherwise winners were scattered and included Aban, Aditya Birla Nuvo, Adlabs, Axis Bank, Bombay Dyeing, Cairn, GTL, Hind Unilever, NDTV, ONGC, and Tata Power. |
| The IT sector continued to log losses with all the majors down. Cement also saw a bearish trend. There were mixed trends in banking where Allahabad Bank, Corporation Bank and J&K Bank were down. |
| Most auto stocks were down with Maruti and Mahindra losing a lot of ground and Tata Motors also seeing a sell-off. Essar Oil lost ground on large scale profit-booking that may spell the end of a spectacular bull run. |
| MICRO TECHNICALS |
| ADLABS Current Price: 1853 Target Price: NA |
| The stock went through the roof on Friday with a massive volume expansion backing a move from 1575 (open) to a high of 1880 and a close at 1853. It's impossible to project a target with this move. Keep a stop at 1825 and go long. Move the stop up by 25 for every 25 unit move. |
| DLF Current Price: 1112 Target Price: 1225 |
| The stock has just made a small breakout with a little volume expansion. It has a potential target in the 1250 range but the relatively light volumes make that difficult to achieve. Keep a stop at 1100 and go long. Book profits around 1225. |
| RNRL Current Price: 208.8 Target Price: NA |
| The stock has risen to yet another all time high on stable, high volumes. It is difficult to compute a target because the breakout has been quite steep and the past three sessions have established trendline with a 65 degree slope. Keep a trailing stop at 200, go long and move the stop up by 10 for every 10-unit move. |
| TATA POWER Current Price: 1629 Target Price: 1700 |
| The stock has made a sharp upwards move without the benefit of a volume expansion. It has a apparent target of 1750 but the lack of volumes makes it more likely that the move will peter out at about the 1700 level. Keep a stop at 1610 and go long. |
Sunday, January 06, 2008
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