Precision Pipes and Profiles Company

Precision Pipes and Profiles Company (PPAP) is engaged in the business of manufacturing automobile sealing systems and exterior products. PPAP’s product range includes weather strips, trim door opening, windshield molding, roof molding, quarter window seal, A-pillar garnish, B-pillar garnish, skirt air damper, body side molding, among others. Additionally, it manufactures PVC based customised profiles for white goods and other industries. PPAP has five manufacturing facilities, which are located in New Delhi and Noida, Uttar Pradesh.

PPAP is an OEM supplier to the automobile industry and its client list includes Maruti Udyog, Honda SIEL, General Motors and Toyota Kirloskar. In the white goods industry, PPAP supplies customised profiles to Godrej, Voltas, Videocon and Carrier Refrigerators. PPAP derives around 90% of turnover from automobile customers, nearly 5% from white goods products and the remaining from other segments including electrical and construction.

The company has consistently been receiving various awards from its clients for the quality products and services provided to its clients. All its plants are TS 16949, ISO 14001 and OHSAS 18001 certified. PPAP has obtained ISO 14001:2004 certificate from BSI Management System, London for its unit 54-56, Okhla Industrial Estate, Delhi.

The company has chalked out capacity expansion plan at a project cost of Rs 106 crore. At present, PPAP has five manufacturing facilities in the National Capital Region (NCR) region of Delhi, with an aggregate capacity of 4.75 million kg. It has proposed a capital expenditure of Rs 95.80 crore to increase its capacity. The company plans to increase its capacity from 4.75 million kg currently to 7 million kg by March 2008, to 9.15 million kg by March 2009 and to 11.26 million kg by March 2010. The balance Rs 10.2 crore would be spent on General Corporate expense and Public Issue expense. PPAP plans to fund its expansion initiatives through term loans of Rs 25 crore and internal accruals of Rs 6 crore. The balance amount of Rs 75 crore will be met through this IPO. This expansion will be undertaken to set up a new plant in Surajpur to manufacture automobile profiles, expand the capacity of its existing facility at Noida, upgrade in-house tool manufacturing and designing capability, and set up a new plant at Badarpur dedicated to electrical outlet system products to be manufactured under the agreement with Power and Data Corporation, Australia.

Strengths

PPAP has a technical agreement with Tokai Kogyo Co (TKCL), Japan, which is a manufacturer of specialised profile sand extrusions for automobile industry. This agreement helped PPAP in diversifying into specialised products for the automobile industry.

PPAP has also entered into an Automotive Parts Licensing agreement with Nissen Chemitec Corporation, Japan. Nissen would provide PPAP new product technology in order to manufacture and deliver products in connection with automotive interior parts and related products to Honda SIEL Cars India and its affiliated companies. The company also has entered into an agreement with Power and Data Corporation, Australia for the manufacturing of electrical outlet systems for supply to the authorised distributors of PDC.

Weaknesses

PPAP’s top five customers collectively contributed approximately 83% of sales in FY 2006-07 out of which about 53% is contributed by a single customer (Maruti Suzuki). Thus like other auto ancillaries, PPAP is also vulnerable to these large clients.

Valuation

At a price band of Rs 140– 150, PPAP’s P/E works out to 14.5 – 15.1 times FY 2007 earning and 10.2-10.6 times there-months FY 2008 annualised earning on post-IPO equity. Peer group companies such as Setco Automotive, JBM Auto, ANG Auto and Lumax Automotive are trading at TTM P/E of 13.1, 6.4, 9.4 and 18.5, respectively.

Sensex, Nifty strike record high

The market surged in the week ended Friday 14 December 2007 boosted by steady buying for index pivotals. Both the niche indices – BSE Sensex and S&P CNX Nifty struck lifetime highs during the week. Small and mid-cap shares surged on momentum buying. Strong Index of Industrial Production (IIP) and a 25 basis points rate cut by US Federal Reserve in US boosted the sentiment.

Global markets though were subdued during the week on disappointment that the US Federal Reserve cut interest rates a 25 basis point, not the more aggressive 50 basis point that some had hoped for.

The 30-share BSE Sensex rose 64.83 points or 0.32% to 20,030.83 in the week ended 14 December 2007. The S&P CNX Nifty gained 73.40 points or 1.22% to 6047.70 in the week.

The BSE Small-Cap index surged 853.23 points or 7.52% to 12,195.50 in the week. The BSE Mid-Cap index rose 449.98 points or 4.99% to 9,471.94 in the week. Both these indices outperformed the Sensex.

On 10 December 2007, the market edged lower as the political concerns resurfaced after communist allies warned the government against going ahead with a civilian US nuclear deal. The 30-share BSE Sensex shed 35.32 points or 0.18% to 19,930.68. The broader S&P CNX Nifty lost 13.7 points or 0.23% at 5,960.60.

On 11 December 2007, the market surged on renewed buying in blue chips in anticipation of the United States Fed rate cut. The 30-share BSE Sensex jumped 360.21 points or 1.81% to 20,290.89. The broader S&P CNX Nifty jumped 136.65 points or 2.29% at 6,097.25.

On 12 December 2007, the market surged on steady buying for index pivotals. The 30-share BSE Sensex rose 84.98 points or 0.42% to 20,375.87, a record closing high. The broader S&P CNX Nifty closed at an all time high of 6175.65 on that day.

On 13 December 2007, the market tumbled in the late trade following a sudden sell-off in blue-chip stocks, in sync with other markets across the globe. The 30-share BSE Sensex slumped 271.48 points or 1.33% to 20,104.39. It struck an all time high of 20,498.11 in early trade. The S&P CNX Nifty declined 101.2 points to 6,058.10. It also hit a record high of 6,185.40 in early trade.

On 14 December 2007, the market ended slightly lower in what was a highly volatile trading session, seeing series of gyrations in either direction. The 30-share BSE Sensex declined 73.56 points or 0.37% to 20,030.83. The S&P CNX Nifty declined 10.4 points or 0.17% to 6,047.70.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries gained 1.67% to Rs 2889.05. As per reports, Reliance Industries (RIL) has struck a deal to explore uranium in Australia, as soaring demand and prices turn the heavy radioactive metal into a lucrative commodity. RIL, through its subsidiary RIL (Australia), has signed an agreement with Uranium Exploration Australia (UXA) to buy 49% in eight exploration blocks owned by the company in South Australia and Northern Territory, reports suggest.

Anil Dhirubhai Ambani Group (ADAG) led Reliance Energy (REL) fell 1.17% to Rs 1909.45 in the week. As per reports, ADAG will invest Rs 8,000 crore in REL that would help the company to double its net worth and increase its borrowing limit. The infusion is proposed through a preferential offer of shares to Reliance-Anil Dhirubhai Ambani Group. The preferential offer will be made at Rs 1,812 per share. After the equity infusion, the promoter’s stake will increase to 43-45% from the current 35.89%.

India’s largest listed cellular service provider by market share Bharti Airtel fell 0.74% to Rs 952.55 in the week after the telecom minister rejected its Rs 2,650 crore offer for 4.4 megahertz of additional spectrum.

Maruti Suzuki India rose 0.01% to Rs 1042.35 in the week. The company's domestic sales rose 24% to 65,216 units in November 2007 over November 2006. This is its highest ever monthly domestic sales.

ONGC rose 4.09% to Rs 1238.80 on reports that the overseas arm of the company and the Hinduja group were in talks to form a partnership with Switzerland-registered NICO, a unit of National Iranian Oil Company.

India's top tractor maker by sales Mahindra & Mahindra rose 1.37% to Rs 790.70 in the week. As per reports Mahindra & Mahindra’s (M&M’s) all-Indian utility vehicle, Scorpio, will enter the quality-conscious US market, which is also the largest in the world with 15 million vehicles in annual sales. The company already has firm orders for 45,000 units of Scorpio for the first year, which is more than the 40,000 it sold in India in the last financial year. More importantly, 285 US dealers have signed up to sell the vehicle and are investing $178 million in setting up sales and service outlets.

Diversified firm Videocon Industries spurted 17.06% to Rs 648.85. The scrip rallied on reports that the company is spinning off its energy business. According to reports, Videocon Industries plans to spin off its energy business, including coal fields in Indonesia and oil and gas blocks in Brazil, into a separate company called Videocon Natural Resources, and retain a substantial stake in the new firm.

Power producer and distributor Tata Power declined 1.72% to Rs 1300.95 in the week. The company is reportedly eyeing a bid for Singapore electricity companies Tuas Power, PowerSeraya and Senoko. The report suggests that Singapore's state investor Temasek Holdings is selling its interests in the three firms and Tata Power was evaluating the opportunity.

India’s second largest real estate firm by market capitalisation Unitech rose 11.52% to Rs 478.35 in the week. As per reports, Unitech has major plans, which look beyond real estate. After announcing its plans of entering the telecom business, Unitech now wants to concentrate on positioning itself as a full fledged infrastructure development company with interests in power, roads, airports and also in other areas wherever it sees an opportunity. Besides, it also plans to enter the international market.

India’s third largest real estate firm by market capitalisation Indiabulls Real Estate rose 7.69% to Rs 740.40 in the week. The company said on 10 December 2007, its wholly owned subsidiary, Indiabulls Wholesale Services (IWSL), is proposing to make an open offer for Piramyd Retail, a retail company.

The Index of Industrial Production (IIP) jumped 11.8% in October 2007 from 4.5% in October 2006. IIP stood at 9.7% in April-October 2007 compared with 10.1% in April-October 2006. Industrial output data for September 2007 was revised upwards to 6.8% from 6.4%.

Indian inflation jumped to its highest in 3 months as food and energy prices rose. The central bank is likely to keep its tight monetary stance with a possible hike in fuel prices to come. Annual inflation, based on the wholesale price index (WPI), climbed up 3.75% in the week ended 1 December 2007 from 3.01% in the week ended 24 November 2007.

Market to see volatility

The market may turn volatile in the coming week as the FII selling may continue in the near term as they may resort to year-end profit taking. FIIs follow calendar year as their accounting year. FIIs had been the key drivers of the recent rally. They had pumped Rs 66,079.70 crore in the Indian equity market for the calendar year 2007 till on 13 December. So far, till 13 December 2007, FIIs have been net buyers to the tune of Rs 4573.50 crore.

The 30-share BSE Sensex rose 64.83 points or 0.32% to 20,030.83 in the week ended 14 December 2007. The S&P CNX Nifty gained 73.40 points or 1.22% to 6047.70 in the week.

However small and mid-cap stocks may continue their rally on momentum buying, as indicated by strong market breadth in the past few days. The BSE Small-Cap index surged 853.23 points or 7.52% to 12,195.50 in the week. The BSE Mid-Cap index rose 449.98 points or 4.99% to 9,471.94 in the week. Both these indices outperformed the Sensex.

Reemergence of political concern arising from the Indo-US nuclear deal may impact the market. Prime Minister Manmohan Singh brushed aside on Tuesday, 11 December 2007, a new threat from his communist allies to force early elections over a controversial nuclear deal with the United States.

Off late, global markets have come under selling pressure on concerns that credit market crisis may intensify further. Any majot sell-off there may cast its shadow here as well.

The Index of Industrial Production (IIP) jumped 11.8% in October 2007 from 4.5% in October 2006. IIP stood at 9.7% in April-October 2007 compared with 10.1% in April-October 2006. Industrial output data for September 2007 was revised upwards to 6.8% from 6.4%. The government released the IIP data early afternoon today, 12 December 2007.

Meanwhile, the Government of India has reportedly allowed the Postal Life Insurance Fund (POLIF) and Rural Postal Life Insurance Fund (RPOLIF) to enter the stock markets through investments in public sector mutual funds. The Union Cabinet on Thursday, 13 December 2007 appointed UTI MF and SBI MF as managers for the over Rs 10,000-crore corpus of these two funds.

20,000 level still holds good for Sensex

The market ended slightly lower in what was a highly volatile trading session, seeing series of gyrations in either direction. Global cues were negative. The BSE Sensex cracked below the physcological 20,000 level at one point of in mid-afternoon trade, but managed to crawl back on buying support at lower levels.

Most of the European markets which opened after Indian market were subdued after strong opening while Asian markets which opened before Indian market also edged lower. US markets settled on a mixed note yesterday, 13 December 2007.

Despite the fall, there was plenty of action outside the index stocks, visible from the strong market breadth on BSE. BSE Mid-Cap and BSE Small-Cap indices struck fresh lifetime highs in afternoon trade.

Shares from FMCG, consumer durables, and Healthcare stocks rose while those of capital goods, IT, power and banking stocks declined. Annual inflation, based on the wholesale price index (WPI), climbed up 3.75% in the week ended 1 December 2007 from 3.01% in the week ended 24 November 2007.

The 30-share BSE Sensex declined 73.56 points or 0.37% to 20,030.83. It hit a high of 20,171.57 and a low of 19,936.49 during the day.

The S&P CNX Nifty declined 10.4 points or 0.17% to 6,047.70.

BSE clocked a turnover of Rs 9,122 crore in cash market today compared to yesterday’s 10,212 crore.

Nifty December 2007 futures settled at 6074.25, a premium of 26.55 points as compared to the spot closing of 6047.70.

The NSE futures & options (F&O) segment turnover declined to Rs 61,326.39 crore as compared to Rs 70,156.51 crore on Thursday, 13 December 2007.

Market breadth was strong on BSE. On BSE, 2,048 stocks advanced, 827 stocks declined and 27 stocks remained unchanged. 15 out of 30 stocks from the Sensex pack advanced.

BSE Mid-Cap index rose 1.02% to 9,471.94. It hit an all time high of 9,518.86. BSE Small-Cap index rose 1.57% to 12,195.50. It struck all time high of 12,262.12. Both these indices outperformed Sensex.

Sectoral indices displayed mixed trend. BSE PSU index (down 0.04% to 10,079.08), BSE Metal index (down 0.02% to 19,763),BSE Oil & Gas index (up 0.88% to 12,980.95), BSE FMCG index (up 1.44% to 2,263.93), BSE Consumer Durables index (up 2.51% to 6,204.25) and BSE Health Care index (up 2.52% to 4,308.27) outperformed Sensex.

BSE Auto index (down 0.38% to 5,743.80), BSE IT index (down 0.57% to 4,259.76), BSE Power index (down 0.76% to 4,435.53), BSE Capital Goods index (down 0.99% to 19,862.51) ,BSE Bankex (down 1.39% to 11,335.47) underperformed Sensex.

Banking stocks showed mixed trend. ICICI Bank (down 2.87% to Rs 1,206.85), HDFC Bank (down 1.65% to Rs 1,728.60). However State Bank of India rose 0.68% to Rs 2,410.55.

Power stocks paused after the recent rally. Reliance Energy (down 0.11% to Rs 1,909.45), Power Grid Corporation (down 1.09% to Rs 145.65), Neyveli Lignite (down 1.5% to Rs 248.85) and Tata Power Company (down 0.49% to Rs 1,301) edged lower.

IT stocks declined weighed by firm rupee against the US dollar. Infosys (down 0.72% to Rs 1,646.80), Satyam Computer Services (down 2.36% to Rs 411.10) and Wipro (down 1% to Rs 495.20) edged lower.However Tata Consultancy Services rose 1.43% to Rs 1,044.45.

Capital goods stocks declined. Bharat Heavy Electricals (down 1.16% to Rs 2,561.45), Larsen & Toubro (down 1.44% to Rs 4,174.10) and Bharat Earth Movers (down 2.75% to Rs 1,672.15) edged higher.

India’s largest private sector firm by market capitalization & oil refiner Reliance Industries rose 1.99% to Rs 2,889.05. Oil refining major is reportedly exploring ways to sell its petroleum products directly in the US and Europe. At present, the company sells its petroleum products through traders. Mulls setting up retail outlets in US.

Healthcare stocks rose. Fortis Healthcare (up 20% to Rs 104.30), Wockhardt (up 5.37% to Rs 429.65), Cadila Healthcare (up 5.01% to Rs 335.10), Cipla (up 2.65% to Rs 209.15), Dr. Reddy’s Laboratories (up 1.03% to Rs 717.90), Ranbaxy Laboratories (up 2.69% to Rs 422.20) edged higher.

FMCG majors rose. Marico Industries (up 2.66% to Rs 71.40),ITC (up 1.88% to Rs 200.60) and Hindustan Unilever (up 2.22% to 216.70) edged lower.

Consumer durable stocks rose. Videocon industries (up 6.75% to Rs 648.85), Blue Star (up 0.66% to Rs 488.25) and Gitanjali Gems (up 4.59% to Rs 416.75) edged higher.

Hindalco Industries rose 2.35% to Rs 213.80.

Tata Motors (down 2.03% to Rs 744.45),HDFC (down 0.26% to 3,058.80) and Bharti Airtel (down 3.57% to Rs 952.55) edged lower.

Sun TV Network clocked the highest turnover of Rs 482.36 crore on BSE. Kolte Patil Developers (Rs 246.7 crore), Jaiprakash Hydro Power (Rs 207.97 crore),IFCI (Rs 207.08 crore) and Lanco Infratech (Rs 179.01 crore) were the other major turnover grossers on BSE in that order.

Debutant Kaushalya Infrastructure Development Corporation settled with 37.08% premium at Rs 82.25 over issue price of Rs 60 per share on huge volumes of 3.21 crore shares on BSE.

Most of the European markets were weak. France’s CAC 40 (down 0.26% to 5,575.79) ,UK’s FTSE 100 (down 0.04% to 6,361.80) edged lower. Germany’s DAX (up 0.06% to 7,929) edged higher.

Asian markets were trading lower today, 14 December 2007. Hong Kong's Hang Seng (down 0.65% at 27,563.64), Taiwan's Taiwan Weighted (down 0.85% at 8,118.82), Singapore's Straits Times (down 0.37% at 3,466.38), South Korea's Seoul Composite (down 1.09% at 1,895.05), Japan’s Nikkei (down 0.14% to 15,514.51) edged lower. However Shanghai Composite rose 1.01% to 5,007.91.

US markets finished on a mixed note yesterday, 14 December 2007 as worries about a weakening economy and credit crunch continued. The Dow Jones Industrial Average gained 44.06 points, or 0.33%, to 13,517.96. The Standard & Poor's 500 index rose marginally by 1.82 points, or 0.12%, to 1,488.41, while the Nasdaq Composite index slipped 2.65 points, or 0.10%, to 2,668.49.

Meanwhile, the Government of India has reportedly allowed the Postal Life Insurance Fund (POLIF) and Rural Postal Life Insurance Fund (RPOLIF) to enter the stock markets through investments in public sector mutual funds. The Union Cabinet on Thursday, 13 December 2007 appointed UTI MF and SBI MF as managers for the over Rs 10,000-crore corpus of these two funds.

Market may move sideways

The market is currently driven by the movement in international market. The mood of the market is likely to remain subdued after witnessing the fall in yesterday's trades and on concerns that the move by the central banks to bailout the seized credit markets is going to help. However, fall in the oil prices and FIIs remaining net buyers in equities may help the sentiment to remain positive. Among the indices, the Nifty could test higher levels around 6200 and 6400 while on the downside the index has a strong support at 5995-5895 levels. The Sensex has a likely support at 19833 and may face resistance at 21000.

US indices staged recovery in a late session on Thursday, driven by worries about the economy after a report showed a big jump in wholesale prices. While the Dow Jones gained by 44 points at 13518, the Nasdaq slipped three points to close at 2668.

The Indian ADRs had a mixed outing on the US bourses. HDFC tumbled nearly 3% and Infosys slipped 2.43% while Infosys, Satyam, Tata Motors, ICICI Bank and HDFC Bank lost over 1% each. However, Wipro, Dr Reddy's and VSNL gained over1% each.

Crude oil prices in the global market slipped marginally, with the Nymex light crude oil for January series slipping by $2.14 at $92.25 a barrel. In the commodity space, the Comex gold for February delivery tumbled $14.80 to settle at $804 a troy ounce.

Market may come under pressure

The markets opened on a positive note, but yielded to the weak Asian cues. Sensing weakness, the bears pressed sales and caused technical stop losses to be triggered en masse.

The market breadth was positive as combined exchange figures were 2454:1631. The capitalisation of breadth was also positive as the commensurate figures were Rs 16898 crore:Rs 14430 crore.

The indices have closed at the lower end of the intraday range and that too on steady volumes, on higher end of the 10 day average.

The positive market breadth is a minor plus as the Nifty closed below the 6105 pivot.

The coming session is likely to witness a range of 6150 on advances and 5965 on declines. That indicates a falling daily range and some profit taking bias on declines. Watch the 6095 bearish pivot below which the Nifty may continue to remain under pressure in the absolute short term.

The number of trades have risen accompanied with a decline in the average ticket size, indicating a lack of institutional support.

The outlook for the markets on Friday is that of continued caution as the weekend factor coupled with overseas cues will dominate the near term sentiment.

Vijay L. Bhambwani
Via Business Standard

Jubilant Organosys

Jubilant Organosys

Trading Calls

Buy Bhushan Steel with a stop loss of Rs 1300 for target of Rs 2010.

Buy Ispat Industries with a stop loss of Rs 66 for target of Rs 106.

Buy Sical Logistics with a stop loss of Rs 229 for short-term targets of Rs 270-290.

Market may remain choppy

The market is expected to stay sideways in absence of major positive trigger in near term. However high volatility may be seen as the market consolidates at higher levels. Overseas cues will also to some extent dictate the near term sentiment. However small and mid-cap stocks may continue their rally on momentum buying, as indicated by strong market breadth in the past few days.

The 30-share BSE Sensex slumped 271.48 points or 1.33% to 20,104.39, yesterday 13 December 2007 after striking an all time high of 20,498.11 in early trade. The S&P CNX Nifty declined 101.2 points or 1.64% to 6,058.10. It had also hit a record high of 6,185.40 in early trade.

Asian markets were trading lower today, 14 December 2007. Hong Kong's Hang Seng (down 0.19% at 27,692.63), Taiwan's Taiwan Weighted (down 0.80% at 8,122.54), Singapore's Straits Times (down 0.30% at 3,468.85), South Korea's Seoul Composite (down 0.53% at 1,905.82) declined. However, Japan's Nikkei gained 0.62% at 15,632.72.

US markets finished on a mixed note yesterday, 14 December 2007 as worries about a weakening economy and credit crunch continued. The Dow Jones Industrial Average gained 44.06 points, or 0.33%, to 13,517.96. The Standard & Poor's 500 index rose marginally by 1.82 points, or 0.12%, to 1,488.41, while the Nasdaq Composite index slipped 2.65 points, or 0.10%, to 2,668.49.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 401.76 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 226.65 crore on Thursday, 13 December 2007.

FIIs were net sellers of Rs 1,127 crore in the futures & options (F&O) market on Thursday, 13 December 2007. They were net sellers of Rs 1,170 crore in index futures, and Rs 291 crore in stock futures. However they bought Rs 334 crore worth index options.

Oil rose marginally in thin trade on Friday, 14 December 2007. U.S. light sweet crude futures for January delivery rose 36 cents to $92.61 a barrel. London Brent crude rose 41 cents to $92.53.

Pre Market Watch

The Market is likely to have positive opening, as the US market closed mixed. The market yesterday closed lower as it tumbled towards the end of the trading session on the back of profit booking by the investors across the counters. Though the market opened on a strong note to touch its all time high but all of a sudden lost the grip to pare all its initial gains on the back of heavy selling pressure. On Thursday, the BSE Sensex closed lower by 271.48 points at 20,104.39 and NSE Nifty fell by 101.2 points to close at 6,058.10. We expect the market to remain range bound during the trading session.

On Thursday, the US market closed mixed. The DJIA closed higher by 44.06 points at 13,517.96 along with S&P 500 index grew marginally by 1.82 points to close at 1,488.41 while NASDAQ slipped by 2.65 points to close at 2,668.49.

Indian ADRs ended in mixed territory. In technology sector, Infosys dropped 2.43% along with Satyam (0.26%) while Wipro and Patni Computers dropped by (0.73%) and (0.29%) respectively. In banking sector, HDFC bank and ICICI bank slipped by (2.98%) and (1.59%) respectively. In telecommunication sector, VSNL grew by 1.68% while MTNL decreased by (1.85%). Sterlite industries fell (2.80%).

The major stock markets in Asia are trading weak. Hang Seng is trading lower by 51.82 points at 27,692.63. Taiwan weighted is trading down by 65.41 points at 8,122.54 Singapore Strait Times is down by 10.46 points to trade at 3,468.85. While Japan''s Nikkei is trading up by 96.20 points at 15,632.72.

Today, Nifty has support at 5,946 and resistance at 6,143 and BSE Sensex has support at 19,829 and resistance at 20,319.

Morning Call

Market Grape Wine :

In House :

Nifty at a supp of 6000 with resistance at 6125 .

Sell: ACC below 1055 target of 1015 s/l of 1072

Buy : IDBI above 174.45 target 184 s/l of 170

Buy : IVRPRIME in F&O above 497 target 515 s/l of 490

Buy : AXIS Bank above 977 target 1005 s/l of 965

Out House :

Markets at a support of 19786 & 20012 levels with resistance at 20292 & 20351 levels .

Buy : RIL & RNRL

Buy : Praj & Lupin

Buy : JpAsso & Jphydro bullet

Buy : EssarOil , ISPAT & Nagarfert

Buy : Centextile

Buy : IBUllsreal

Buy : Neyvelli & Geshipping bullet

Buy : PNB , Kotak & SBIN at dips

Buy : IOlBroad & Primesecurities

Dark Horse : JpAsso , IBullReal , PNB , GeShipping , RIL & SBIN

TGIF : Thank God its Friday : markets at all time high keep strict stop loss for your trades .

Bullet for the day : JpHydro , GEship & ISPAT

Morning Notes - Dec 14 2007

Morning Notes - Dec 14 2007

US Market manages a comeback in final hour

Dow and S&P 500 manage to eke out gains as Honeywell provides bullish guidance

US Market remained under pressure for the most part of the day today, Thursday, 13 December, 2007 but at the end ended mixed with Dow and S&P 500 managing to eke out some gains. Mixed economic data ruled the market momentum for most part of the day. . Six out of ten sectors ended higher today led by utilities and industrials. Financials continued to be under pressure for the fourth consecutive day. A good guidance from Honeywell was the main reason for this turnaround. An analyst upgrade on Microsoft also contributed to the same.

Market was down by almost 85 points in the morning hours. Indices lingered in the red for almost entire day. But one hour before closing bell was to ring, indices made a turnaround. The Dow Jones industrial Average ended the day with a gain of 44 points at 13,517.96. The Nasdaq Composite Index, finished lower by 2.65 points at 2,668.49. S&P 500 finished higher by 1.82 points at 1,488.41.

Seventeen out of thirty Dow stocks ended in green today. Honeywell shares climbed almost 5% today after the manufacturer said it expects to meet or beat its earnings target for next year. Financial stocks continued to be the laggards for the day, namely Citigroup, American Express and JP Morgan.

November Producer Price Index (PPI) surged 3.2% caused by a 14% spike in energy prices. The core rate was also up more than expected at 0.4%. This is the largest jump in PPI since 1973. The reading was well above the expected 1.5% gain. The data reflected the inflation issues that the Fed noted in their last policy statement.

Among other economic data, that hit the wires today, new claims for unemployment for the week ended 8 December fell to 333,000 from 340,000 the prior week. The number remains below recessionary levels.

November retail sales were strong across the board. Total sales were up 1.2% and excluding autos the gain was 1.8%.

Crude eases a bit after yesterday’s whopping gains

Barring VSNL and Dr Reddys Laboratories, all Indian ADRs ended in the red today. HDFC Bank and Infosys Technologies were the main two losers shedding 2.9% and 2.4% respectively.

Crude prices eased partly today after traders speculated that recession in the US is avoidable as Federal Reserve will inject cash in the system. Profit booking was another reason as to why prices eased today after rallying by almost 5% yesterday. Crude-oil futures for light sweet crude for January delivery closed at $92.62/barrel (lower by $1.8/barrel or 1.9%) on the New York Mercantile Exchange. Price earlier slipped by more than $2/barrel during the day.

Volume on the New York Stock Exchange hit 1.4 million and losing stocks outran those advancing 2 to 1. On the Nasdaq, more than 2.1 billion shares traded hands, and declining issues ran ahead of advancers about 3 to 1.

Tomorrow, investors will focus on economic reports to set the tone of trading. The Labor Department's influential Consumer Price Index report is expected to hit the wires at 8:30 ET, and will be followed by Industrial Production and Capacity Utilization reports, all before opening bell rings.

Grey Market - Precision Pipes, Porwal, Manaksia, Aries Agro

eClerx Services 270 to 315 40 to 42


BGR Energy 425 to 480 390 to 400


Transformers & Rectifiers 425 to 465 330 to 350


Brigade Enterprises 351 to 390 40 to 50


Jyothy Lab. 690 180 to 200


Burnpur Cement Ltd. 12 4 to 5


Kaushalya Infra 60 10 to 12


SVPCL 42 - 5 to -7


Aries Agro 120 to 130 30 to 35


Manaksia Ltd. 140 to 160 40 to 45


Porwal Auto Components 68 to 75 15 to 20


Precision Pipes & Profiles 140 to 150 45 to 48

Brigade Enterprises IPO Allotment Status

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