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Tuesday, September 01, 2009
Daily Call - NHPC - Sep 1 2009
NHPC is on top of every investor’s mind today. We believe investors will do well to hold on to the share for the long term. After initial jig on listing day, if we have our say, it should stabilize beyond 42, and if you must sell, do it when it nears 44.
September is by far the worst month for the US markets. It has posted an average decline of 1.3 percent since 1929 in this surly month. For our markets the dubious distinction goes to October, a month where many markets have seen an average 2% decline and some of its worst crashes.
China is tossing and turning many asset classes like never before. China is down 25% from its recent high and experiencing a major market meltdown. It is remarkable to see our markets where they are, as the same set of cues could put sensex 10% lower from here and no one would ask, why? Metals and IT stocks have seen short build up, while NBFCs are finding favor. Mid-caps are partying, and that is where we are also focused. Music will stop if Nifty were to close below 4630.
Pre Session Commentary - Sep 1 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in green as a bounce back over yesterday’s losses. Majority of frontline stocks are already at their peak level and therefore any further northward movement is apprehensive. The day’s trade is likely to be range bound.
On Monday, the Indian market extended its losses towards the closing to end the session on negative note on sustained selling pressure during the trading. Unfavorable cues from the Asian markets along with negative European stocks took huge beating on the bourses. Chinese stocks plunged 6.74% on continued worries about the impact of fragile bank lending on the economy. Lower US Index futures also fueled the negative sentiments that off set the positive news from domestic arena that India’s economic growth accelerated for the first time since 2007. India’s gross domestic product expanded 6.1% in the first quarter ended June 30 2009 from 7.8% of the corresponding period of previous year. The BSE Sensex ended below 15,700 level and NSE Nifty closed below 4,700 mark.
The BSE Sensex closed lower by 255.70 or (1.61%) points at 15,666.64 and NSE Nifty ended down by 70.25 points or (1.48%) at 4,662.10. BSE Mid Caps and Small Caps closed with gains of 19.27 and 35.27 points at 5,882.97 and 6,997.03 respectively. The BSE Sensex touched intraday high of 15,821.35 and intraday low of 15,589.80.
On Monday, US stock markets closed lower. There was broad based selling across broader level as majority of Asian and European markets exuded huge selling pressure due to concerns over tighter lending in China that will most likely impede the flow of investment. The Shanghai Composite dropped 6.7% on Monday to hit a three-month closing low and log its second worst monthly performance in 15 years. However towards the end majority of stocks managed to pare off its early losses and closed marginally lower. Tuesday’s opening bell will be very crucial for the US markets as ISM manufacturing data for August, construction spending data for July, pending home sales data for July and also vehicle sales data are likely to provide some guidance to traders. US light crude oil futures for October delivery closed at $69.92 per barrel down by 3.9% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 47.92 points at 9,496.28, NASDAQ index closed lower by 19.71 points at 2,009.06 and the S&P 500 (SPX) also closed lower by 8.31 points at 1,020.62.
Indian ADRs ended in red barring Satyam Computers, which was up 21.53%. In the IT space, Infosys was down 2.26%, Wipro was down 1.13% and Patni Computers was down 0.81%. In the telecom space, Tata Communication was down 3.09% and MTNL was down 1.54%. In the banking space, ICICI Bank was down 1.61% and HDFC Bank was down 0.74%. In other sectors, Tata Motors was down 3.82%, Sterlite Industries was down 3.74% and Dr Reddy''s Labs was down 2.24%.
The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,574.30 Crore and gross debt purchased stood at Rs 387.80 Crore, while the gross equity sold stood at Rs 1,481.50 Crore and gross debt sold stood at Rs 307.80 Crore. Therefore, the net investment of equity and debt reported were Rs 1,092.70 Crore and Rs 80.00 Crore respectively.
On Monday, Indian Rupee closed at 48.83/84 per dollar, 0.4% weaker than its previous close at 48.65/66. The local lost strength due to correction in local stock market.
On BSE, total number of shares traded were 57.19 Crore and total turnover stood at Rs 6,650.52 Crore. On NSE, total number of shares traded were 113.56 Crore and total turnover was Rs 19,064.76 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 189851099 shares, followed by Suzlon Energy with 37167556, DLF with 14590713, Tata Steel with 13974491 and Cairn India with 7640662 shares.
On NSE Future and Options, total number of contracts traded in index futures was 741814 with a total turnover of Rs 16,282.66 Crore. Along with this total number of contracts traded in stock futures were 567261 with a total turnover of Rs 18,762.88 crore. Total numbers of contracts for index options were 950802 with a total turnover of Rs 22,498.64 Crore and total numbers of contracts for stock options were 52135 and notional turnover was Rs 1,871.46 Crore.
Today, Nifty would have a support at 4,622 and resistance at 4,732 and BSE Sensex has support at 15,512 and resistance at 15,756
Grey Market - Kostak - NHPC, Oil India, Jindal Cotex, Globus Spirits
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| NHPC | 36 | 4 to 6 | -- |
| Jindal Cotex | 70 to 75 | 5 to 5.50 | 1700 to 1800 |
| Globus Spirits Ltd. | 90 to 100 | 9 to 11 | 1800 to 1900 (+ 250 Form Commission) |
| Oil | 950 to 1050 | 120 to 125 | 2300 to 2400 (+ 250 Form Commission) |
Market may edge higher on positive Asia; NHPC lists today
The key benchmark indices may open higher tracking positive Asia as China's manufacturing showed improvement. Meanwhile, shares of state-run hydropower generator NHPC will debut on the bourses today, 1 September 2009. NHPC had raised Rs 6,048 crore through the recently concluded public issue, which were priced at the top end of the Rs 30- 36 band by the Indian government.
Auto stocks will be in action as Auto companies are set to announce sales figures for the month of August 2009 today.
Investors will also keenly watch the Export Import data for the month of July 2009 due to be announced by the government today.
The key benchmark indices took a breather on Monday, 31 August 2009 after strong gains in the past seven trading sessions as a setback in Chinese stocks offset optimism arising from India's strong Q1 GDP growth data. The BSE 30-share Sensex fell 255.70 points or 1.61% to 15,666.64 on Monday. The market had urged in the past seven days supported by positive global cues. The BSE Sensex jumped 1112.70 points or 7.51% in seven trading sessions to settle at 15,922.34 on Friday, 28 August 2009 from 14,809.64 on 19 August 2009.
India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%. Agriculture, forestry and fishing, by comparison, rose just 2.4% on year. Manufacturing was up 3.4% on year in the April-June 2009 quarter.
The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009. Planning Comission deputy chairman Montek Singh Ahluwalia the worst may be over for the economy. He said the economy is expected to improve in the coming quarters. Finance Secretary Ashok Chawla said the economy is slowly bouncing back.
Asian stocks rose today as China's manufacturing expanded at the fastest pace in 16 months.
China's Shanghai Composite Index, which yesterday fell by the most since June 2008, added 0.12 %. The official Purchasing Managers' Index rose to a seasonally adjusted 54 from 53.3 in July 2009, the Federation of Logistics and Purchasing said.
Other Asian stocks, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.41% to 1.6%.
The US markets ended lower on Monday, 31 August 2009 as market cut losses after broad-based selling following a steep sell-off in China's Shanghai Composite Index.
The Dow fell 47.92 points, or 0.5%, to 9,496.28. The S&P 500 index declined 8.31 points, or 0.8%, to 1,020.62, while the Nasdaq dropped 19.71 points, or 1%, to 2,009.06.
In economic news, the Chicago institute for supply management reported its gauge of business activity in the Midwest region rose to 50 from 43.3 in July, the highest reading since September 2008.
Crude plunges
Monday's losses erase almost all of crude's monthly gains for August
Crude prices ended substantially lower on Monday, 31 August, 2009. Drop in global indices yesterday once again dampened investor sentiments for overall global recovery and hence crude slipped.
On Monday, crude-oil futures for light sweet crude for October delivery closed at $69.96/barrel (lower by $2.78 or 3.8%). Last week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.
For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 45%.
In the currency market on Monday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended lower by 0.2%.
Among economic reports expected on Monday, manufacturing activity improved for the third straight month in the Chicago region in August. The Chicago purchasing managers index rose to 50% in August from 43.4% in July, 2009.
Also at the Nymex on Monday, September reformulated gasoline lost 7.23 cents, or 3.5%, to $1.9895 a gallon and September heating oil tumbled 8.11 cents, or 4.4%, to $1.7792 a gallon. Both contracts expired on Monday.
October natural gas fell 5.6 cents, or 1.8%, to $2.977 per million British thermal units. Natural gas is set to end the month down more than 20%.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for September delivery closed lower by Rs 121 (3.4%) at Rs 3,431/barrel. Natural gas for September delivery closed lower by Rs 1.1 (0.74%) at Rs 147.5/mmbtu.
Precious metals end mixed
Gold registers marginal while silver registers decent gains for August
Precious metal prices ended mixed on Monday, 31 August, 2009. Gold prices fell but silver rose. Prices ended mixed despite the somber dollar.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, gold for December delivery ended at $953.5, lower by $5.3 (0.6%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 8.8%.
Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.1%) since then.
On Monday, Comex silver futures for September delivery rose by 12.3 cents (0.8%) to $14.907 an ounce. Last week, silver ended higher by 4.3%.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 32.6% this year. For 2008, silver had lost 24%.
In the currency market on Monday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended lower by 0.2%.
Among economic reports expected on Monday, manufacturing activity improved for the third straight month in the Chicago region in August. The Chicago purchasing managers index rose to 50% in August from 43.4% in July, 2009.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 4 (0.02%) at Rs 15,125 per 10 grams. Prices rose to a high of Rs 15,156 per 10 grams and fell to a low of Rs 15,037 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 200 (0.83%) higher at Rs 24,245/Kg. Prices opened at Rs 23,996/kg and rose to a high of Rs 24,725/Kg during the day's trading.
Daily News Roundup - Sep 1 2009
Oil ministry seeks to form a new EGoM for allocation of next 40mmscmd of gas from Reliance Industries’ KG-D6 field. (ET)
Aircel and RCom are in the final stages of negotiations for US$300mn infra sharing deal. (BS)
RCom prepays term loan worth Rs50bn. (BS)
The Union Government to hand over the reins of management and promoter status of Maytas Infra to IL&FS. (BS)
NTPC plans to bid in the eighth round of NELP. (FE)
Tata Motors aims to reach full capacity utilization at its Pantnagar plant in Uttarakhand for Nano in near term. (FE)
Britannia Industries has is planning to hike biscuit prices in the near future. (FE)
Britannia Industries bought out Khimji Ramdas Group’s 30% stake in Dubai-based Strategic Food International Co LLC (SFIC), to make it a wholly-owned indirect subsidiary of the company. (BL)
Oil India plans to invest nearly Rs45bn in the next two years on exploration-related activities. (BL)
Oil India plans to add five more rigs to its kitty. (BS)
The first phase of the NTPC-BHEL power equipment project at Mannavaram in Chittoor district of Andhra Pradesh will be completed by 2011-12. (BL)
Tata Steel to spend Rs11bn to augment capacity of its iron ore mines at Joda (Orissa) and Noamundi (Jharkhand). (BL)
Oriental Green Power (OGP), promoted by Chennai-based Shriram EPC, would invest Rs7.3bn for setting up biomass-based power plants. (BS)
Crompton Greaves eyes another overseas acquisition in the next eight months. (BS)
Four Soft is exploring acquisition opportunities in Europe and the US. (BS)
US-based Intel Capital may emerge as one of the bidders for a stake in the factories owned by ITI Ltd, as part of its strategy to spread WiMax technology in India. (BL)
Kingfisher Airlines plans to raise Rs10bn via GDR, rights issue. (ET)
Jet Airways to raise US$400mn through various fund raising routes. (ET)
The Godrej Group is looking at selling its non-core businesses, including the food business. (BL)
Unity Infraprojects has bagged Rs3.2bn order from the Municipal Corporation of Mumbai. (BL)
Corporation Bank has raised Rs 100 crore through issue of tier-I bonds. (BL)
The proposed Godrej Properties IPO could be floated as early as November. (BL)
Supreme Infrastructure has secured Rs2.4bn contract for construction of a housing project at Gurgaon from Ramprastha Developers. (BL)
Corporation Bank has raised Rs1bn through issue of bonds. (FE)
India’s GDP growth stood at 6.1% in Q1 FY10, primarily due to expansion in manufacturing and services sectors. (BS)
Annual retail inflation as measured by CPI for industrial workers rose by 11.89% in July. (ET)
India’s fiscal deficit hits 40% of FY10 target in first four months. (ET)
Growth in bank credit to corporate sector dipped further to 14.89% for week ended August 14. (FE)
Government grants 6 more months to repay farm loan to farmers in view of drought in many parts of the country. (BS)
The petroleum ministry said it will ensure unfettered access to the accounts of private oil and gas contractors for the Comptroller and Auditor General (CAG). (BS)
The Insurance Regulatory and Development Authority (Irda) plans to cut Ulip approval time from 30 to just 3 days. (BS)
Tuesday Turnaround possible
The great thing in the world is not so much where we stand, as in what direction we are moving.
The world may be standing, sitting or sleeping but India sure is moving ahead. The Q1 GDP data revealed a resilient Indian economy. On a higher base and in the face of the global downturn, it was a commendable show. Given the trauma and turbulence the world economy has weathered, a GDP growth rate of 6% plus is acceptable. We expect a better opening on local bourses, as there is no China scare to haunt us today. Other Asian markets too are flashing the green light.
One also has to note that Monday’s sell-off was led more by the FIIs, and was restricted to the large caps. The broader market managed to hold its own. Today, the frontline counters may recover. As far as small- and mid-cap stocks are concerned, one should be careful in dealing with them. However, this space could still surprise on the positive side as these stocks had been under-performing the large caps lately.
In short, the outlook for today appears brighter, though overall things remain uncertain. Early gains may not sustain so one should be prepared for volatility at this juncture.
The shares of NHPC Ltd. will get listed today. A small premium is what the market observers are pricing in.
As on 27th August, rainfall as a whole was deficient by 24%, with 278 districts in 11 States being affected by drought. The Cabinet reviewed the prices of essential commodities. It noted that major areas of concern are prices of pulses and sugar.
The shortfall in kharif output will pose a few problems though, particularly on the inflation front. In fact, inflation, as measured by the various CPIs climbed in July over the previous month. The CPI for Industrial Workers for July is 11.89% compared to 9.29% in June. Inflation based on CPI for Agriculture Labourers rose from 11.52% in June to 12.9% in July, while the one based on CPI for Rural Labourers went up from 11.26% to 12.67% in July last year.
Global leaders are gathering in Los Cabos, Mexico today to discuss the next steps in a concerted campaign to counter tax evasion. The two-day meeting, organised by the OECD, will focus on improving transparency and exchange of banking and ownership information. Hopefully, even the Indian Government will be able to extract information on the billions of dollars of Black Money stashed away in Swiss accounts.
On Wall Street, US stocks closed lower after a big drop in Chinese shares heightened concerns that the world equity markets have risen too far, too fast. But August was a good month for Wall Street.
The Dow Jones Industrial Average shed 47 points, or 0.5%, on the last day of the month. The S&P 500 index lost 8 points, or 0.8%, while the Nasdaq Composite index slid 20 points, or 0.9%.
Despite Monday's weakness, the Dow and S&P turned in their best August performance since 2000. For the entire month, the Dow gained about 3.5% and the S&P added roughly 3.3%. The Nasdaq rose 1.5% in August.
Stocks opened sharply lower, following a 6.7% drop in the Shanghai Composite index. The selloff in China raised concerns about the global economy and prompted investors to shy away from risky assets.
Oil prices sank nearly 5%, falling below $70 a barrel. That dragged on shares of oil services firms. Industrial shares also fell sharply. Bank stocks, which have led the market higher in recent sessions, came under pressure.
The retreat came despite a pair of big corporate mergers and a stronger-than-expected regional manufacturing report. Wall Street analysts are of the view that the market is jittery heading into what is expected to be a volatile month.
September is historically the worst month for US stocks and market participants are bracing for a possible pullback following a surprisingly strong summer advance.
Between the March 9 lows and Friday's close, the S&P 500 gained 52%, as investors responded to stronger corporate results and improved economic data. For the year, stocks, as measured by the S&P 500 index, are up nearly 13%.
More concrete signs of economic growth are now necessary to keep the rally going. The fundamentals in the first week could set the tone for the entire month.
The ISM index of manufacturing activity and auto sales for August come out on Tuesday. On Friday, the Labor Department's monthly employment report is expected to show a slight increase in the nation's unemployment rate.
Walt Disney said it would acquire comic book publisher Marvel Entertainment for approximately $4 billion. Shares of Marvel surged 25%.
Oilfield services company Baker Hughes said that it would purchase rival BJ Services in a cash-and-stock deal worth approximately $5.5 billion.
A report showed manufacturing activity in the Midwest was stronger than expected during August. The Institute for Supply Management's Chicago PMI rose to 50 in August from 43.4 in July. Economists had forecast a reading of 47.2.
The report comes one day before the ISM releases its national manufacturing report, which is forecast to rise to a level signaling expansion for the first time since January 2008.
In currency trading, the dollar fell against the euro and retreated versus the yen.
Oil for October delivery was down $3.07 to settle at $69.68 a barrel in New York.
Bond prices rose, with the benchmark 10-year note gaining 9/32 to 101-23/32. Its yield, which moves inversely, was 3.41%.
After a strong rally of 1,100 points or 7.5%, the Indian markets decided to take a breather. The key indices fell for the first time in seven trading sessions, with the sentiment hurt by yet another steep fall in the Chinese market. The first-quarter GDP growth, which was in line with expectations and better than the previous quarter, could not arrest the slide.
The Shanghai SE Composite tumbled by 6.7%, the most in over 12 months. China has played a party pooper several times over the past few days amid worries over its banking system and its fallout on its fast-growing economy. There have been reports recently that the Chinese government is trying to curb bank lending and rapid growth in infrastructure projects. The Shanghai Composite has dropped by over 20% from the year’s peak.
Barring the Realty and the Auto stocks, all the other major sectors were under the bear attack. However, the Mid-Caps and the Small-Cap were in demand. Major offloading was seen in the IT, Telecom and the Metal stocks.
Technically, on Friday, it was the fifth time the NSE Nifty was unable to absorb the selling pressure at around the 4720-30 levels. In the recent past after hitting the 4,730 levels, the Nifty has corrected nearly 8% in merely 10 trading sessions. Are we again in for an 8-10% downfall? Only time will tell.
India’s Q1 GDP grew 6.1% as against 7.8% in the same period last year. Markets players expected economy to grow 6.2% last quarter. In the fourth quarter of FY09, the Indian economy had grown by 5.8%. Agriculture rose by 2.4% versus 3% in the year-ago period. Industry grew 5% as against 6.1% in the same quarter last year. Construction grew 7.1% versus 8.4% in the same period previous year. While, services grew by 7.8% as against 10.2% in Q1 FY09.
Meanwhile, selling was not only seen in China and India but all over the emerging countries. Even European equity markets opened with a negative bias.
The BSE Sensex lost by 263 points or 1.6% at 15,659 after touching a high of 15,821 and a low of 15,589. The index opened at 15,812 against the previous close of 15,922. The NSE Nifty lost 74 points to shut shop at 4,658.
In Asia, Shanghai index in China plummeted by 6.7% at 2,667 sliding over 20% from its years peak. The Nikkei in Japan ended lower by 0.5% at 10,492 while Australia's S&P/ASX ended lower by 0.3% at 4,479. The Hang Seng index in Hong Kong was fell 2% at 19,724.
In Europe, stocks were trading in the red. The FTSE in the UK was closed. The DAX in Germany was down 0.8% and the CAC 40 index in France was down 0.8%.
Coming back to India, among the BSE sectoral indices, the Metal index was the top loser, shedding 2.3%, followed by the IT index that was down 2.2%. The BSE Teck index down 2.1% and the BSE Oil & Gas index was down 2%.
However, among the major gainer was the BSE Realty index up 2.1% and BSE Auto index up 1.5%. Even the broader indices outperformed, BSE Mid-Cap index gained 0.2% and the BSE Small-Cap index gained by 0.4%.
Among the 30-components of Sensex, 22 stocks ended in the green and 8 ended in the negative terrain. Among the major laggards were Reliance Industries, Infosys, L&T, ICICI Bank, ITC and Bharti.
On the other hand, M&M, DLF, HDFC Bank and NTPC were among the major gainers.
Outside the frontline indices, the big losers in the broader market were Welspun Gujarat, Fortis Health, GE Ship, M&M Finance and Bharat Forge. On the other hand, gainers included Godrej Industries, Gujarat NRE Coke, Renuka Sugar and Ackruti City.
Shares of Tata Motors ended with a negative bias after the company announced that the Group has posted a net loss of Rs(3,287.8)mn for the quarter ended June 30, 2009 where as the same was net profit at Rs7,196.9mn for the quarter ended June 30, 2008.
Total Income is Rs16,7180.7mn for the quarter ended June 30, 2009 where as the same was at Rs14,7406.5mn for the quarter ended June 30, 2008.
Shares of Maytas Infra were locked at 5% upper circuit at Rs112.80 after the board of directors of the company received a proposal to substitute existing promoter, they also got proposal to acquire management control.
The board has referred the proposal for new promoter to the company Law board. Salman Khurshid the Union minister of corporate affairs said, that IL&FS will be promoter of Maytas Infrastructure. IL&FS is currently the largest holder in Maytas and wants two of the government nominees to continue on board.
Earlier in the day ~1.7mn shares, or 2.8% equity shares of the Maytas, changed hands in five transactions.
While, shares of IL& FS shot up by over 15% to Rs265. The stock opened at Rs228 and made an intra-day high of Rs275 and a low of Rs223. Total traded volumes stood at 1.9mn shares.
Shares of Kingfisher Airlines have gained by 1% to Rs48.20 after the company announced that the board of directors passed an enabling resolution for an additional fund raising through various instruments including GDRs, upto an amount of US$100mn, subject to the approval of the shareholders.
This is over and above the decision taken at the last board meeting held on July 28, 2009 for induction of capital for an amount not exceeding Rs5bn by way of rights issue of Equity shares, as already intimated.
Shares of Cairn India surged by over 2% to Rs265 after Cairn India on Saturday started production of crude oil from it's Mangala field in Rajasthan. Mangala is the largest of 25 discoveries made by Cairn in the Barmer Basin in Block RJ-ON-90/1.
The Mangala field was dedicated to the Nation by Prime Minister, Dr. Manmohan Singh, at the Mangala Processing Terminal, Barmer, Rajasthan today in an inauguration ceremony attended by Central and State Government officials.
Shares of ITI surged by over 4.5% to Rs39.15 after the company announced that it secured Rs1.67bn order from BSNL. The stock opened at Rs37.45 and made an intra-day high of Rs39.20 and a low of Rs36.75. Total traded volumes stood at 0.49mn shares.
Amtek Auto
We recommend a buy in the stock of Amtek Auto from a short-term perspective. It is evident from the charts of Amtek Auto that it has been on an intermediate-term uptrend since its November 2008 low of Rs 42, forming higher peaks and troughs. In July the stock took support around Rs 90 and bounced back, resuming its uptrend. Since then, the counter has been on a medium-term uptrend too. The stock penetrated its 50-day moving average in early August and is trading well above this average. We notice that there is an increase in volume over the past three trading sessions. The daily as well as weekly relative strength indices (RSI) are featuring in the bullish zone. Besides, daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook on the stock is bullish. We anticipate it to move up until it hits our price target of Rs 171. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 147.
via BL
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