Thursday, November 3, 2011

How to trade in Rel Com, Chambal Fertilisers, Bajaj Auto now? Source: IRIS (02-NOV-11)

Market Outlook: Indian markets are expected to open weak tracking mixed trend seen global market after FED Chairman Ben Bernanke said that the FED may look to reinvest in mortgage backed securities to provide additional support to the weak housing market while Asian markets slip on Europe woes; Hang Seng down 2%.

Key earnings to watch: SAIL, Ashok Leyland, TVS Motor, Sun TV Network, Tata Teleservices Maharashtra, Jubilant Foodworks, Welspun Corp, Prestige Estates, Whirlpool, Cronimet Alloys, Manappuram Finance, Asahi Songwon Colors, Gujarat Gas, Omkar Speciality Chemicals, Kesoram Industries, JSL Stainless, Vesuvius India, Thirumalai Chemicals, Vadilal Industries

US Market: The US markets recovered from their day's lows to close higher with more than 1% gains after FED Chairman Ben Bernanke said that the FED may look to reinvest in mortgage backed securities to provide additional support to the weak housing market. The FED leaves interest rates unchanged and announces that they are holding off on any new actions to aid the economy, but left open the possibility of taking further steps in the near future.

FED statement: The FED leaves interest rates unchanged and announces that they are holding off on any new actions to aid the economy, but left open the possibility of taking further steps in the near future. In addition, the FED cut its growth forecast to between 1.6 and 1.7% for 2011.

Global events to watch:

Þ Energy Information Administration releases weekly oil inventories.

Þ Jobless claims for the week is expected to come out today

Þ U.S. productivity and costs data for the third quarter is expected to come out today

Global indices Update @ 8:

Dow Jones : 11836 (+178.0)

NASDAQ : 2639 (+33.02)

Nikkei 225 : 8640 (-175.10)

Hang seng : 1923 (-497.10)

SGX CNX Nifty : 5234 (- 39.50)

Gold (USD/t oz.) : 1728

Nymex Crude (F) : 91.46

INR / 1 USD : 49.25

TECHOUTLOOK : Nifty support seen at 5208 with an resistance level at 5304.

Calls for the day:

ü BUY CenturyTex Sl 316 Target 335.

ü SELL Bharti Airtel Sl 391 Target 370.

Stocks in action for the day: Power Grid, SAIL, RIL, Zee Entertainment.

GAIL to invest $1 bn in shale gas: GAIL India has big plans for the fast-emerging shale gas sector. Its move in September to take a 20 per cent stake in Carrizo's Eagle Ford shale asset in America was part of a larger scheme to go deeper into the business.

Diesel, LPG prices are set to rise again, EGOM will decide later this month.

AV Birla group weighs USD 5 billion bid for Australia’s New Hope. The move may pit company against JSW Steel .

SAIL , POSCO have settled differences over Bokaro plant.

Steel companies are unlikely to hike prices this month.

HDFC Realty in talks to raise $600 mn: HDFC Realty, the private equity arm of Housing Development Finance Corporation, is engaged in talks with the world’s largest sovereign funds to raise its fourth real estate fund.

GAIL opens LNG trading desk in Singapore: GAIL (India) Ltd opened a liquefied natural gas (LNG) trading desk in Singapore on Wednesday. The company would be operating in Singapore through its subsidiary, GAIL Global (Singapore) Pte Ltd.

Subir Gokarn says -Food inflation growing source of structural price imbalances -Rapidly expanding supply only solution to rising inflation -Strategic restrictions can be lowered to help fund infra investment

British Petroleum: Sources -BP's views at today's MC meeting not taken on record -MC: Management Committee of Oil Ministry, DGH, operators -DGH said BP still not a signatory to PSC -PSC: Production Sharing Contract

DGH says -Current KG-D6 gas output at 42 mmscmd -RIL's D1, D3 fields producing 35 mmscmd -RIL's MA field producing 7 mmscmd gas -RIL's MA field producing 13,500 bpd of crude -Have approved commerciality of RIL's D34 gas discovery -RIL's D34 gas discovery has 1.2 tcf gas -Had a productive meeting with KG-D6 operators -Have resolved most issues with KG-D6 operators -Did not ask RIL to drill new wells in today's meet -Did not discuss KG-D6 FY12 capex in today's meet -RIL, BP, Niko studying locations for new wells

Kenneth Cole says Have signed licensing agreement with Reliance Brands -Kenneth Cole productions is US-based Fashion House

Diesel vehicles may attract higher tax; Oil Ministry pushing for higher pump price for the fuel (ET)

HT Media may take MCX to court over IPO dispute; alleges MCX violated agreement by excluding its stake in public offer (BS)

Zee-Star venture to hawk channels, under CCI probe (FE)

Power developers warn govt on import duty; move could increase power generation cost & deter private investment (FE)

IOC seeks govt guarantee on Air India dues to protect business interest (TOI)

UltraTech Cement October cement sales at 3.19 mt vs 3.42 mt (YoY)

De Nora India board to approve buy back of shares

Stock Split: Cronimet Alloys India from Rs 10/sh to Rs 2/sh

F&O Ban: Gitanjali Gems

How to trade in Rel Com, Chambal Fertilisers, Bajaj Auto now? Source: IRIS (02-NOV-11)

http://www.myiris.com/newsCentre/storyShow.php?fileR=20111102135859043&secID=fromnewsroom&secTitle=From%20the%20News%20Room&dir=2011/11/02

In an interview with myiris.com, Prashanth Tapse, AVP Research, Mehta Equities gave views on three stocks which were buzzing on Wednesday, November 02. The same is as follows

Reliance Communication:

The counter was in action, reacting to the media reports quoted that Reliance Industries (RIL) is planning to collaborate with Reliance Communications (RCom) to use towers and fibre optic cables for entry in the telecom sector. The likely JV between Anil Ambani’s Reliance Communication (RCom) is to plan to launch cheaper tablet devices for Rs. 6,000 a piece. The JV would give access to Reliance to use RCom`s towers and fiber optic cables to offer high-speed data services. This will be the first major collaboration between the brothers after their spilt in 2005. This deal, however, will not involve any equity investment by Reliance in RCom. Technically RCOM can be bought with stop loss of Rs 77.10, for a target of Rs 88 in the near term.

Chambal Fertilisers:

Fertiliser companies are in action after media reposted stated that the news on Decontrol of phosphatic and complex fertiliser prices which has triggered foreign investors` interest in fertiliser makers. Chambal Fertilisers, Coromandel International and Rallis are the leading players garnering the counter interest. Foreign institutional investors (FIIs) have increased their exposures to fertiliser stocks in the recent quarters. This is even as they have pruned their holdings in interest rate-sensitive sectors such as auto, capital goods and infrastructure among others. We are positive on Chambal as it is the largest manufacturer in the private sector. Technically one can BUY/HOLD with a target of Rs 104 acting on stop loss near Rs 91.40.

Bajaj Auto:

Leading two wheeler manufacturer Bajaj is in action on the back of decent sales growth in October. Sales in October rose 7% year-on-year to 3,95,274 units, its highest ever for any October. However, sequentially sales were down over 5% from the 4,17,686 units it sold in September. Exports surged 20% year-on-year to 1,31,948 units during October. Bajaj Auto has been seeing strong growth in its exports, especially to Africa. Over the April-October period, Bajaj Auto’s exports were up 33% year-on-year to 9,83,446 units. Its total sales were up 15% to 26,52,226 units over the same period. While motorcycle sales rose 15% to 23,41,491 units in April-October, commercial vehicle sales were up 20% to 3,10,735 units. We believe the above performance was mainly backed by the recent festival season. Technically the stock has strong resistance near Rs 1,801 is broken can test Rs 1,822, One can trade with a stop loss agent at Rs 1,706.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


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