Thursday, May 12, 2011

Stocks in Action for the day: Fin Tech, Coal India, Deccan Chronicle

Market Outlook: Indian markets are expected to open in a negative terrain mainly on the back of weak sentiments from the global counters. We expect indices to consolidate more at the current levels before taking fresh moves on either side of the markets. On the global space US stocks faltered on Wednesday after a three-day rally as a strengthening dollar and data showing a rise in US fuel supplies sent crude oil prices lower, hurting energy stocks and Asia trading lower; Hang Seng, Seoul Composite slip. Overall outlook for the markets today is that of cautious optimism with 5500 levels as a major support and key resistance near 5610.

Results today: Coal India, Siemens, Lupin, Jindal saw, MTNL, Titagarh Wagons, Tulip telecom, Gammon India, Talwalkars, Adani Enterprise, Jubilant Foodworks, Lanco Infratech, Electrosteel Casting, Kinetic Motor, Kale Consultants, Monnet Ispat, Syndicate Bank, Future Capital Holdings, Moser Baer, Karuturi Global, Great Offshore, Peninsula Land, Viceroy Hotels

Global events to watch:

Þ Producer Price Index.

Þ Jobless Claims.

Þ Retail Sales.

Þ Bloomberg Consumer Comfort Index.

Global indices Update @ 8:

Dow Jones : 12630 (-130.33)

NASDAQ : 2845 (-26.83)

Nikkei 225 : 9786 (-77.74)

Hang seng : 23083 (-208.13)

SGX CNX Nifty : 5525 (-38.00)

Gold (USD/t oz.) : 1504 (+03.00)

Nymex Crude (F) : 99.45 (+01.24)

INR / 1 USD : 44.69

TECHNICAL OUTLOOK: Bears maintian their hold....

We had a decline early in the day but that only succeeded in creating yet another higher bottom on intra day charts. But on the higher end the market failed to exceed much above the resistance shown around 5565 either. So that kept matters very much within bounds. The daily chart still shows that matters are in the same area that they have been restricted for the past 5 sessions. As it grinds out more and more, the chances for a breakout increase. Yesterday the index has closed above the daily pivot so we go in for the day with a slight bullish bias.

IIP numbers will roll out today. Election results will start trickling in soon too. Looks like this is what the market has been waiting for and why it has been so limited perhaps in its movement. The day's pivot is at 5550 and as already mentioned, the weekly pivot is at 5615. This needs to be exceeded for uptrends to sustain.

30 min chart shown today displays the daily, weekly and monthly pivots. The stochastic indicator shown in the bottom panel of the chart is a bit neutral as it moves in a range. but note that recent dips have not carried into the oversold and that brings in a positive bias. Problem is that we can bring in all kind of biases based on all sorts of indicators but unless the market moves sufficiently, monetizing these biases becomes quite a difficulty. This is why there will always be a large gap between analysis and actual trading results. That of course does not mean that analysis is not worthwhile- for, without analysis, it is not possible to take a trade at all. Ultimately, we have to follow a market adage that says: If not the Gods, at least get the Odds on your side! With analysis backing up your actions, you will increase the odds of succeeding in the market. We at Chartadvise try our level best to keep giving you deeper insights into the market to ease your difficult journey in the market every day.

STRATEGY FOR THE DAY: Today should be a news based day and hence keep track of what is happening on the IIP and election results front. Also look at the results and market reaction to news and numbers to see where there can be some opportunities. As in the previous days stock specific moves will dominate. But moves are not lasting so lock in profits when you see them and avoid chasing down stocks that have already moved some distance.

Stocks to buy if market is strong:


This counter witnessed a sharp rally last session, bouncing up from strong supports and ending on a positive note. The rise was backed by very good volumes and the momentum has started to climb up as well. With a fresh buying opportunity here, go long.




Buy above 62

1.5 points

64 / 65

Dips to 60.5-60

1.5 points


TV 18

This media counter was seen moving up smartly on renewed buying action. On the daily chart we see that after having held support at 200-EMA last few sessions, prices yesterday finally launched higher and also managed to breakout successfully from descending Gann line resistance. Consider going long here.




Buy above 82.50

1 point

85 / 86

Or dip near 81.50

1 point

83 / 84

Stocks to sell if market is weak:


Prices of this pharma counter have been crashing sharply in the last couple of weeks. Yesterdays massive fall has broken supports along the way and closed below the same. RSI has broken support at 40. Trend remains quite weak, go short.




Sell below 271

2.5 points

267-66 / 263

Rally near 162

1.5 points

159 / 158


Buy Nifty above 5565 stop 5540 for rise to 5609.

Sell Nifty below 5510 stop 5530 for fall to 5465.


Buy Fortis above 158 stop 156 target 162

Sell NTPC around 177-180 stop 181 target 173

Stocks in Action for the day: Fin Tech, Coal India, Deccan Chronicle

Cabinet Panel -Okays USD 200 million FDI infusion in GMR Airport -Okays FDI in limited liabilty partnerships -No FDI in limited liability partnership in print media -No FDI in limited liability partnership in farm, realty companies

DoT - -DoT to issue notices to Reliance Communications, Tata Tele for rollout delay -DoT notices for delayed rollout of dual-tech licenses

Nagarjuna Aghrichem Q4 FY 11 standalone (YoY) (cr - crore, vs - versus) -Net sales down 20% at Rs 113 cr vs Rs 141 cr -Net loss at Rs 13 cr vs net profit at Rs 13 cr -EBITDA margin at 1.8% vs 19.9%

Venky's India FY 11 standalone (YoY) -Net sales up 21% at Rs 852 cr vs Rs 705 cr -PAT up 35% at Rs 73 cr vs Rs 54 cr -EBITDA margin 13.4% vs 12.9%

Usha Martin Q4 FY 11 standalone (YoY) -Revenue up 39% at Rs 726 cr vs Rs 524 cr -PAT down 28% at Rs 33 cr vs Rs 46 cr -EBITDA margin at 17.6% vs 18.3%

Shah Alloy Q4 FY 11 standalone (YoY) Revenue up 2% at Rs 207 cr vs Rs 203 cr PAT up 36% at Rs 38 cr vs Rs 28 cr

Ruchi Infra Q4 FY 11 provisional (YoY) -Net sales up 90% at Rs 770 cr vs Rs 406 cr -PAT doubled at Rs 10 cr vs Rs 5 cr

Sal Steel Q4 FY 11 standalone (YoY) -Revenue down 12% at Rs 74 cr vs Rs 84 cr -Net loss at Rs 94 lakh vs Rs 2 cr -EBITDA margin 10.8% vs 17.9%

Mundra Port, Adani Power challenge imposition of MAT on SEZs

Deccan Chronicle announces buy-back at max Rs 180share for up to Rs 270 crore ((CMP: 79))

Jubilant Industries board approves issue of 38 lakh shares to promoters of Enpro Oil as consideration of demerger

Servalakshmi Paper lists today

F&O Ban: Orchid chemicals, Power Finance Corp

FT in focus, MCX-SX closer to getting approval for equities trading – Mint

NTPC raises its coal import target for this fiscal by four million tonnes (ET)

Slowdown at the Alang shipyard has pushed up the scarp steel prices by Rs 1000 per tonne in two weeks (ET)

Hindalco has received the final forest clearance for its proposed 1.5 million tonne Rs 6,000 crore alumina refinery project in Orissa’s Rayagada district (BS)

HDFC Bank to raise its lending rates by 55 basis points & deposit rates by up to 125 basis points (BS)

Jet Airways to do a sale & leaseback transaction for 10 boeing 737 aircraft freeing up around Rs 600 cr for the airline (FE)

I&B ministry to vacate 700 MHz band spectrum to allocate to mobile operators for providing 4G telecom services

Fertiliser subsidy may rise to Rs 80,000-90,000 crore in the current financial year from an estimated budget of around Rs 50,000 crore due to rising global urea prices (FE)

Tata Comm to invest Rs 1670 crore over the next four years in its Singapore operations (FE)

Aanjaneya Lifecare IPO closes today QIB: 0.07 times NII: 1.56 times Retail: 0.08 times

Talwalkars Better Value Fitness has opened its new health club in the city of Agra. The company has now 102 health clubs in 52 towns across India on a consolidated basis.

Black Rose Industries has recommended dividend of 10 per cent on par value of Re 1 per share for the year ended March 31, 2011. It has also recommended bonus shares in the ratio of 1:1.

ABB reported standalone net profit of Rs 59.54 crores for the quarter ended March 2011 against Rs 6.63 crores a year ago. Net sales were at Rs 1781.30 crores as compared to Rs 1455.85 crores.

Apollo Tyres reported consolidated net profit of Rs 440.16 crores for the year ended March 2011 against Rs 653.35 crores a year ago. Net sales were at Rs 8867.71 crores from as compared to Rs 8120.74 crores.

Asahi Infrastructure & Projects has received work order worth Rs 11 crores for infrastructure development for Nagar Parishad Pawani under Integrated Housing and Slum Development Programme. The company has also received two work orders worth Rs 2.52 crores for 129 houses & infrastructure.

Hinduja Ventures reported consolidated net profit of Rs 86.57 crores for year ended March 2011 as against Rs 60.57 crores in the corresponding period previous fiscal. Consolidated total income was at Rs 472.77 crores as compared to Rs 398 crores.

Puravankara Projects has launched its Rs 650 crores luxury property Purva Bluemont in Coimbatore.

Marico Industries has ended talks to take a majority stake in Australian cookie maker Unibic Biscuits' India arm, shelving its plans to enter the Rs 11,000-crore biscuits market.

BF Utilities posted net loss of Rs 2.92 crores for the quarter ended March 31, 2011 as compared to net loss of Rs 5.04 crores in the same quarter a year ago. Total income increased to Rs 1.93 crores from Rs 1.05 crore.


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