HBL Power Systems

HBL Power Systems

Weekly Technical Outlook

Weekly Technical Outlook

Post Market Commentary - Feb 18 2008

The market closed on a negative note as the profit booking across the counters prevailed. The market opened with hand some gains tracking the firm cues from the Asian markets but all of a sudden lost the momentum and fell to pare all its initial gains. The market From there on kept on hovering in the negative territory throughout the trading session. Reliance Power reported as the top turnover from the BSE as the company announced a bonus issue of shares. He company''s board will be meeting on February 24 to consider the ratio on issuing bonus shares. However, the Small Caps and Mid Caps remained in the limelight as most buying was seen from these baskets. From the sectoral front, the Realty index faced heavy selling pressures across the counters. The BSE Sensex closed lower by 67.20 points at 18,048.05 and NSE Nifty slipped by 26 points to close at 5,276.90. The BSE Mid Cap and Small Cap closed higher by 49.40 points and 134.22 points at 7,641.48 and 9,755.35 respectively.

BSE Metal index closed up by 80.04 points at 16,247.20 as Nalco (7.59%), Sesa Goa (5.87%), Ispat Inds (5.28%), Hindalco Inds (3.14%) closed in green.

BSE Bankex index closed higher by 60.43 points at 10,944.85. Gainers are BOB (3.86%), Axis bank (2.37%), Kotak bank (2.35%), IOB (2.08%), CentBOP (1.60%).

BSE Realty index fell by 290.32 points to close at 10,206.95. Major losers are Phoenix Mill (8.64%), Ansal Infra (7.63%), Mahindra Life (5.04%), Unitech (4%), Indiabull Real (3.09%).

BSE CG fell by 95.65 points to close at 16,322.65 as Alstom Projects (4.95%), BEML (3.28%), Suzlon Ener (2.65%), BHEL (2%), Thermax (1.66%) and L&T (0.80%) closed in red.

BSE Oil & Gas index fell by 96.18 points to close at 11,172.91. Losers are Essar Oil (2.17%), Reliance Inds (1.49%), ONGC (1.21%) and BPCL (0.53%).

BSE IT index decreased by 50.74 points to close at 3,829.24 as NIIT Techno (6.07%), Mosear Baer (4.49%), Karut Net (3.06%), Satyam (2.78%), TCS (2.24%) and Wipro (1.36%) closed lower.

Market Close: Profit booking grips in!

It was a choppy session for Indian markets, to end in flat. Taking cues from Asian markets India started with a gap up of around 100 odd points but could not sustain at days higher level and slipped in to negative zone. However, value buying was seen in small cap stocks which gave positive breath to the markets. Despite periodic attempts of recovery mid-way proceedings remained the indices in negative zone. The profit booking at every recovery under arrest the indices not to enter positive zone. The lack of investor interest was restricted to the frontline stocks to perform. IT, oil, metal and realty are among the top laggard while Reliance pack stocks are the most active stocks on the bourses. Rel power was in lime light on the back of board meet on Feb 24 to mull bonus issue to all shareholders. Investor?s interest was much seen in mid and small caps which outperformed the front line indices. Asian indices closed a mixed bag while the European is witnessing a positive trend currently.

Sensex ended down by 67 points at 18048.051. Weighing on the Sensex were losses in Satyam (426,-3 percent), Tata Motors (732.55,-2 percent), TCS (851.95,-2 percent), BHEL (2216.2,-2 percent) and SBI (2254.95,-2 percent). Losses were restricted by gains in ITC (209.6,+3 percent), Hindalco (184.1,+3 percent), HLL (216.6,+3 percent), ICICI Bk (1208.1,+1 percent) and Bajaj Auto (2199.8999,+1 percent.

India's biggest non- state iron ore exporter, Sesa Goa Ltd was the star for the day amid hope that the price increase agreed upon by Japanese steelmakers will lead to a hike in the domestic price as well. Asia's three biggest steelmakers agreed to pay 65% more for procuring iron ore from Brazilian mining major CIA. Vale do Rio Doce, setting a global benchmark for the key raw material. Iron ore prices will rise for a sixth year in a row to a record on the back of strong demand from China, boosting earnings. Sesa Goa is well positioned to ride the current boom in the iron-ore market on the back of an output of approx 10mtpa, which it is planning to increase to 15mtpa over the next three years. The company has access to resource & reserves of approx 207mnte (i.e. 20 years of mining life) of iron ore. Stock ended up 6.2%.

Leading automotive player Mahindra & Mahindra have reported that they have signed a memorandum of understanding for a joint venture with WASS for the manufacture of underwater defence systems in India. The Indian automaker will have a 74% stake in the joint venture with Whitehead Alenia Sistemi Subacquei (WASS) which will develop and make underwater mines, harbour defence systems and torpedoes. Mahindra intends to be a full-service provider to the defence services and the systems would initially be made in Mahindra's facility in Pune in western India, and production would be moved to the eastern city of Vishakhapatnam in two to three years. With this M&M are also in talks with the British defence contractor BAE Systems to jointly develop a mine-protected vehicle which is in pine line in negotiation. Stock ended up 3.5% on the back of news.

Technically Specking: Sensex traded in a narrow range of 200 odd points before ending down by 67 points at 18048. It made intraday high of 18257 and day?s low of 17901. Turnover stood low at Rs 4857 Cr. The breath has been in favor of Advances, where Advances stood at 1850 against the Declines of 878. Sensex Resistance is seen at 18400 while Support lies at 17900. We fell that market will be trading in this range for some more days.

A tame ending to highly volatile session

The market maintained a cautious trend for the straight session, as the Sensex eased marginally at close on selective selling. However, the market was extremely volatile as stocks gyrated sharply, leading to a swing of 357 points during intra-day trades. After resuming 113 points above at 18,228, the Sensex dropped 215 points in early trades on sustained selling to touch the day's low of 17,900. Languishing in negative territory thereafter in the first half, the Sensex steadily erased its losses and rebounded into positive territory in the afternoon trades to edge past the 18,250 mark and touch the intra-day high of 18,256. The Sensex failed to hold on to its steady gains and lost 67 points to close at 18,048, while the Nifty ended 26 points lower at 5,276.

Dragging the Sensex, Satyam lost 2.78% at Rs426, Tata Motors dropped 2.47% at Rs732.55, TCS fell 2.24% at Rs851.95, DLF lost 2.18% at Rs859.80 and BHEL declined 2% at Rs2,216. SBI, Reliance Industries, Wipro and ONGC were down nearly 1% each. However, M&M advanced 4.02% at Rs643.35, ITC scaled up 3.25% at Rs209.60, Hindalco added 3.14% at Rs184.10, Hind Utilites gained 2.56% at Rs216.60, ICICI Bank jumped 1.42% at Rs1,208 and Bajaj Auto was up nearly 1.16% at Rs2,199.

The breadth of the market was positive. Of the 2,772 stocks traded on the Bombay Stock Exchange (BSE), 1,848 stocks advanced, 876 stocks declined and 48 stocks ended unchanged. Of the 11 sectoral indices trading on the BSE, six indices ended in the green and seven slipped into the red. The BSE FMCG index was the major performer on the upside and gained 2.26% at 2,258, while the BSE Bankex index was up around 0.5% at 10,944. In the market which closed on a subdued note, FMCG stocks performed exceptionally well. REl Agro was frozen at the upper limit of 5% at Rs1,290.15, ITC surged 3.25% at Rs209.60 and Nestle shot up by 2.56% at Rs216.60.

Over 2.66 crore RNRL shares changed hands on the BSE followed by Ispat Industries (2.22 crore shares), Reliance Power (1.12 crore shares), Nagarjuna fertilisers (99.23 lakh shares) and HFCL (93.71 lakh shares).

Small-cap, mid-cap indices buck market fall

Breaking a three-day winning streak, the market edged lower today on profit taking. The market failed to sustain higher levels after a firm start. A firm opening was triggered by Reliance Power's surprise announcement on Sunday, 17 February 2008, that it would consider bonus issue. The market was down sharply in afternoon trade but managed to cut losses tracking firm European markets, which opened after Indian markets. The benchmark index, BSE Sensex, dipped below 18,000 mark only to regain that level in mid-afternoon trade.

Reliance Power soared on high volumes. Despite the market fall, the breadth was positive on buying in small-cap and mid-cap stocks. Asian markets were mixed.

The 30-share BSE Sensex was down 67.20 points or 0.37% at 18,048.05. Sensex lost 214.29 points at the day's low of 17,900.96, hit in afternoon trade. Sensex opened 112.96 points higher at 18,228.21 and advanced to hit a high of 18,256.82 in early trade. At the day's high, Sensex rose 141.57 points.

At current 18,048.05, Sensex trades at a PE multiple of 17.18 to 18.04, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

The broader based S&P CNX Nifty was down 26 points or 0.49% at 5,276.90. Nifty February 2008 futures were at 5280.10, a premium of 3.20 points as compared to sport closing

From 16,608.01 on 12 February 2008, Sensex had advanced 1507.24 points or 9.07% in three trading sessions to 18,115.25 o n Friday, 15 February 2008.

The market breadth was positive on BSE: 1,850 shares advanced as compared to 878 that declined. 46 shares remained unchanged. 19 out of 30 Sensex stocks declined.

The BSE Mid-Cap index was up 0.65% to 7,641.48 and the BSE Small-Cap index gained 1.40% to 9,755.35. Both these indices outperfomed the Sensex

The total turnover on BSE amounted to Rs 4857 crore as compared to Rs 6,415.18 on Friday, 15 February 2008

Turnover on NSE’s futures & options segment declined to Rs 32416.67 crore from Rs 42675.67 on Friday, 15 February 2008

Reliance Power surged 6.95% to Rs 411.45, off day’s high of Rs 429.60. The counter saw high volumes of 1.12 crore shares on BSE. The company said on Sunday, 17 February 2008, its board would meet on Sunday, 24 February 2008, to decide bonus ratio. The bonus shares will be issued to non-promoter shareholders to compensate the losses suffered by them when the company was listed last week. The stock has been consistently trading at a discount to IPO price of Rs 450, since its listing on 11 February 2008. Meanwhile, the company has also sought an enquiry by the Securities & Exchange Board of India, the market regulator, into the decline in shares.

Sectoral indices on BSE displayed mixed trend. The the BSE Consumer Durables index (up 0.04% to 4,708.56), the BSE PSU index (up 0.24% to 8,572.39), the BSE Auto (up 0.43% at 4,789.13), the BSE FMCG index (up 2.26% at 2,258.26), the BSE Health Care index (down 0.37% at 3,678.31), the BSE Metal index (up 0.50% to 16,247.20), and the BSE Bankex (up 0.56% at 10,944.85), outperformed the Sensex

The BSE Capital Goods index (down 0.58% at 16,322.65), BSE Oil & Gas index (down 0.85% to 11,172.91), the BSE Power (down 0.42% to 3,752.87), the BSE Realty index (down 2.77% at 10,206.95), the BSE IT (down 1.31% to 3,829.24), the BSE TecK index (down 0.56% to 3,332.73), underperformed the Sensex

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 1.65% to Rs 2548 on 4.51 lakh shares. The stock moved in a range of Rs 2537.40 and Rs 2650 so far during the day.

India’s top truck marker in terms of sales, Tata Motors slipped 2.56% to Rs 732.10 on 1.29 lakh shares. It was the top loser from Sensex pack.

India’s largest public sector engineering company in terms of profit, Bharat Heavy Electricals dropped 1.75% to Rs 2222 despite reports the company has bagged an order worth Rs 650 crore from General Electricity Company, Libya for setting up a 300 megatwatt gas turbine based power plant. The stock hit a high of Rs 2280 in intra-day trade.

India’s largest private sector engineering company in terms of outstanding order book position, Larsen & Toubro slipped 0.90% to Rs 3505. The company said on Monday, 18 February 2008, it has bagged an order worth Rs 1250 crore from Oil & Natural Gas Corporation.

State Bank of India (down 2.10% to Rs 2250), Reliance Energy (down 1.38% to Rs 1685.95), and DLF (down 2.38% to Rs 858), were the other losers from Sensex pack.

Mahindra & Mahindra, the country’s top tractor maker in terms of sales, extended gains in late trade. It advanced 3.48% to Rs 640. It was the top gainer from Sensex pack. Mahindra & Mahindra today said that Mahindra Defence Systems, a group company, is in talks with WASS for underwater defense joint venture. Mahindra Defence Systems (MDS) makes high mobility and light bullet proof vehicles to the armed forces, paramilitary and police forces.

India’s top cigarette manufacturer in terms of sales, ITC staged a sharp rally in late trade. The stock was down for most part of the day but settled with gain of 3.45% to Rs 210.

Bajaj Auto, the country’s second largest bike maker in terms of sales, gained 1.16% to Rs 2200 after the Madras High Court on Saturday, 16 February 2008, restrained TVS Motor Company from manufacturing and selling 125 cc ‘Flame’ motorcycle by using the technology/invention described in the patent granted to Bajaj Auto. TVS Motor Company was down 2.88% to Rs 38.85.

ICICI Bank (up 1.67% to Rs 1211), Hindustan Unilever (up 2.32% to Rs 216.10), and Hindalco Industries (up 3.08% to Rs 184) were the other gainers from Sensex pack.

IT pivotals were subdued. Infosys Technologies (down 0.95% to Rs 1550), TCS (down 2.46% to Rs 850.10), Wipro (down 0.94% to Rs 416.30), and Satyam Computers (down 2.51% to Rs 427), edged lower

Sugar stocks rose on fresh buying. Bajaj Hindustan rose 9.84% to Rs 264.60, Balrampur Chini Mills gained 7.52% to Rs 97.25 and Shree Renuka Sugars advanced 11.30% to Rs 1002.

Reliance Power topped the turnover chart with a turnover of Rs 472 crore followed by Reliance Natural Resources (Rs 376 crore), Essar Oil (Rs 166.50 crore), Reliance Capital (Rs 158.60 crore) and Reliance Petroleum (Rs 153.60 crore), in that order.

Reliance Natural Resources led the volume chart clocking volumes of 2.66 crore shares followed by Ispat Industries (2.22 crore shares), Reliance Power (1.13 crore shares), Nagarjuna Fertilisers (99.25 lakh shares) and Himachal Futuristic Communications (93.70 lakh shares), in that order.

Among the side counters, Panasonic Carbon (up 18.61% to Rs 137), J Kumar Infraprojects (up 18.38% to Rs 118.85), Dish TV (up 20% to Rs 19.95), Wire & Wireless India (up 14.53% to Rs 54), and Praj Industries (up 12.95% to Rs 191) surged.

Provogue India (down 13.02% to Rs 920), Phoenix Mills (down 8.18% to Rs 414.35), Geodesic Information Systems (down 9.35% to Rs 181.05), Ansal Infrastructure (down 7.97% to Rs 215.40) and Mastek (down 6.10% to Rs 248.90), slipped

KNR Constructions settled at Rs 154.35 on BSE, a discount of 9.20% over IPO price of Rs 170. The stock debuted at Rs 180, a premium of 5.8% over the IPO price. The stock hit a low of Rs 155.65 and high of Rs 199. On BSE, 57.56 lakh shares changed hands in the counter.

Disa India galloped 20% to Rs 1826.25 after the company’s board of directors at its meeting held on 16 February 2008 recommended a dividend of 2000% or Rs 200 per share in the year ended December 2007.

Unitech declined 4.14% to Rs 399.90 despite the West Bengal government giving possession of 12,500 acres of land at Nayachar Island, near Haldia, in the state to the developer PCR Chemicals.

Educomp Solutions slipped 2.30% to Rs 4068 on reports the company plans to invest up to Rs 800 crore to set up 150 schools in the next four years.

DMC International rose 4.81% to Rs 21.80 after a group company Swen Realty & Media entered into an agreement with Global Infocom to acquire an online portal.

Kalindee Rail Nirman Engineers rose 1.76% to Rs 425 after the company said its board will meet on 18 February 2008 to consider raising Rs 150 crore by issue of equity to qualified institutional buyers.

Ramco Systems gained 3.13% to Rs 145 after the company launch of India's first full-fledged Software-as-a-Service enterprise resources planning tool viz. Ramco OnDemand ERP.

European markets, which opened after Indian markets, extended early gains. Key benchmark indices in United Kingdom (up 1.89% to 5,896.70), Germany (up 1.70% to 6,948.61), and France (up 1.56% to 4,846.36), advanced.

Asian markets, which opened before Indian markets were mixed today, 18 February 2008. Japan's Nikkei (up 0.09% at 13,635.40), Taiwan's Taiwan Weighted index (up 0.18% at 7,890.90), South Korea's Seoul Composite index (up 0.09% at 1,696.24), and China’s Shanghai Composite index (up 1.58% to 4,568.51), edged higher. However, Hong Kong's Hang Seng (down 1.61% at 23,759.25) and Singapore's Straits Times index (down 0.78% at 3,064.65), declined.

US markets ended Friday’s, 15 February 2008 trade on mixed note after economic reports offered bleak views on everything from manufacturing to consumer sentiment. The Dow Jones industrial average declined 28.77 points, or 0.23%, to 12,348.21. The S&P 500 index gained 1.13 points, or 0.08%, to 1,349.99. The Nasdaq Composite index was down 10.74 points, or 0.46%, to 2,321.80.

India's wholesale price index rose 4.07% in the 12 months to 2 February 2008, marginally lower than the previous week's rise of 4.11%, government data released on Friday, 15 February 2008 showed

Shriram EPC Allotment Status

Shriram EPC Allotment Status can be checked here

EXCLUSIVE! - Cholamandalam DBS

EXCLUSIVE! - Cholamandalam DBS

Pre Market Watch - Feb 18 2008

The Indian Market is likely to have a positive opening due to favoring cues from the global markets. On Friday, the market closed on a firm note by posting good gains. The market opened on weak note but the market got the momentum towards the mid session to pare all its initial losses. The market also got the momentum as the India''s wholesale price index rose 4.07% in the 12 months to 2 February 2008, marginally lower than 4.11% last week. The BSE Sensex closed higher by 348.62 points at 18,115.25 and NSE Nifty grew by 100.9 points to close at 5,302.90. We expect that the market may trade higher during the trading session. From the stock specific, Reliance Power may gain investors confidence as the company is planning to come out with bonus issue of shares.

On Friday, the US market closed mixed. The Dow Jones Industrial Average (DJIA) closed lower by 28.77 points at 12,348.21. Nasdaq fell by 10.74 points to close at 2321.80 and S&P 500 index closed higher by 1.13 points to close at 1,349.99.

Indian ADRS ended mixed. In technology sector, Satyam grew by (2.75%) while Wipro fell by (2.12%) along with Infosys by (0.94%). In banking sector, ICICI bank and HDFC bank increased by (2.04%) and (0.60%) respectively.

The major stock markets in Asia are trading firm. Japan''s Nikkei is trading higher by 174.72 points at 13,797.28 along with Hang Seng is trading up by 152.01 points at 24,300.44 and Taiwan Weighted is trading at 7,924.54 up by 48.17 points.

The FIIs on Friday stood as net seller in equity while the net buyer in debt. The gross equity purchased was Rs2,572.30 Crore and the gross debt purchased was Rs4,513.50 Crore while the gross equity sold stood at Rs3,755.50 Crore and gross debt sold stood at Rs2,132.80 Crore. Therefore, the net investment of equity reported was (Rs1,183.10 Crore) and net debt was Rs2,380.70 Crore.

Today, Nifty has support at 5,226 and resistance at 5,407 and BSE Sensex has support at 17,912 and resistance at 18,513.

Market may head higher

The market may head higher as the sentiment may be boosted after Reliance Power,, on Sunday evening 17 February 2008, announced bonus issue for its shareholders to compensate the losses they suffered when the company was listed a week ago. The company’s board will meet on Sunday, 24 February 2008, to decide bonus ratio. Most Asian markets were trading higher today.

Most Asian markets were trading higher today, 18 February 2008. Japan's Nikkei (up 1.28% at 13,797.28), Hong Kong's Hang Seng (up 0.63% at 24,300.44), Taiwan's Taiwan Weighted index (up 0.61% at 7,924.54), Singapore's Straits Times index (up 0.46% at 3,103.01). However South Korea's Seoul Composite index slipped 0.06% at 1,693.75

US markets ended Friday’s, 15 February 2008 trade on mixed note after economic reports offered bleak views on everything from manufacturing to consumer sentiment. The Dow Jones industrial average declined 28.77 points, or 0.23%, to 12,348.21. The S&P 500 index gained 1.13 points, or 0.08%, to 1,349.99. The Nasdaq Composite index was down 10.74 points, or 0.46%, to 2,321.80.

Back home, the 30-share BSE Sensex jumped 348.62 points or 1.96% at 18,115.25 on Friday, 15 February 2008. The broader CNX S&P Nifty was up 100.90 points or 1.94% at 5302.90 for the day.

The market ended its four week loosing streak to posting gains for the week ended Friday, 15 February 2008 as global markets rallied following an unexpected rise in US retail sales in January 2008. The BSE Sensex surged 650.36 points or 3.72% to 18,115.25 in the week ended Friday, 15 February 2008. S&P CNX Nifty rose 182.55 points or 3.56% to 5,302.90 in the week.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 261.20 crore on Friday, 15 February 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 138.66 crore on that day.

FIIs were net buyers to the tune of Rs 174.42 crore in the futures & options segment on Friday, 15 February 2008. They were net buyers of index futures to the tune of Rs 205.57 crore and sold index options worth Rs 5.29 crore. They were net sellers of stock futures to the tune of Rs 40.30 crore and bought stock options worth Rs 14.44 crore.

India's wholesale price index rose 4.07% in the 12 months to 2 February 2008, marginally lower than the previous week's rise of 4.11%, government data released on Friday, 15 February 2008 showed.

Grey Market - V-Guard, Rural Electrification

Rural Electrification 90 to 105 24 to 26


GSS America InfoTech 400 to 440 Discount


On Mobile Global 440 20 to 25


Bang Overseas 207 7 to 10


Shri Ram EPC 300 Discount


IRB Infra 185 12 to 15


Manjushree Extrusion 45 5 to 7


Tulsi Extrusions 85 10 to 15


V. Guard Ind. 80 to 85 8 to 10

KNR Constructions Listing

KNR Constructions will list today. Grey Market Price is at a discount - However, looking at the firm market, it may recover on listing

Daily Call - Feb 18 2008

Daily Call - Feb 18 2008

Morning call - Feb 18 2008

Market Grape Wine :

Out House :

Markets at a support of 17786 & 17917 levels with resistance at 18282 & 18491 levels .

Buy : RIL & RelCap

Buy : JSW & Sail

Buy : SBIN & IciciBank

Buy : Titan & Neyvelli

Buy : MRPL & EssarOIL

Buy : IBullsReal & Ibulls

Buy : Hdfc & HdfcBank

Buy : Bharti & Adalbs

Dark Horse : RPower , RELCAP , Adlabs , EssarOIL , Neyvelli , RIL , Sbin , & Aban

Trading Calls - Feb 18 2008

Nifty 5303 Sup 5200 Res 5450

Buy Canara Bank (305) SL 300 Target 315, 317

Buy Gail (428) SL 423
Target 438, 441

Buy Sesa Goa (3153) SL 3130 Target 3190, 3200

Buy Bharat Forge (286) SL 282 Target 294, 297

Sell NIIT Tech (128) SL 132 Target 120, 118