SHARE TRADING TIPS

for the Week beginning from 08.07.2009

Sector Watch: Sugar, Insurance Related & Agri Related Stocks

Sector Update

Auto sales volume performance firmed up in June 2009 with most players recording healthy growth. Lower interest rates and reduction in Excise duty rates early this year, aided recovery in industry volumes. Hero Honda and Maruti extended their good performance in June 2009, with volumes growing 23.7% and 22.6% yoy respectively, indicating strength of their market reach and better performance by the Rural segment. M&M volumes also recorded better-thanexpected growth for the month aided by 56.1% yoy jump in UV (Utility Vehicle) sales. Tata Motors however reported 3.9% yoy decline in Total volume for June 2009. However, Tata Motors registered an increase of 12.9% on mom basis in June 2009. Overall, the Auto Industry has exhibited a positive trend in Volume growth over the last four-five months. We believe that the upward trend will be confirmed with the Auto companies reporting a gradual positive trend in volumes over the next couple of months.

 

MARKET RESEARCH REPORTS:

1. Alfa Transformers Ltd Rs 40/: In last 2 months, share prices of companies in power-proxy sector have gone up by 100%-300% as such companies will continue to grow due to assured growth of power sector. Alfa is engaged in the production of transformers for power stations. Last year, company had expanded its production capacity. For 08-09, company has achieved turnover of Rs 33 crs and PAT stands at 3.50 crs. On small equity of 5.36 crs, EPS works out to Rs 6.53. Profits would have been higher but for higher price inventory of raw material as copper prices had crashed. Company has secured some big orders and may grow 40-45% in 09-10 with more than proportionate increase in its bottomline. On full capacity, ALFA has potential to achive turnover of nearly 125 crs. Share price can appreciate 50% in next 3-4 months. If investors can hold on for 1 year, return on their investment may exceed 100%. Promoters have bought shares from open market to increase their stake. A good low-priced pick in fast growing sector.

2. Indage Vintners Ltd Rs 110: This Mumbai based wine company has become the most famous wine company in India with some very well-known brands. Company reportedly holds 2000 acrs of land for grape growing purpose. Equity is 15.27 crs. In 2007, its share price had crossed even Rs 800/ as company was growing rapidly and had chalked out ambitious global plans. For 08-09, company had reported PAT of 39 crs translating into EPS of 25.20. Company has not yet declared results for Q4.However, EPS for trailing 12 months is 20. It share price had crashed as some FIIs started selling desparately and its overseas forays were proving big burden on company's financials. Now, company may either drop or go slow on overseas expansion plans. It has also done cost cutting in domestic market by closing down some of the offices. It is reliably learnt that some big investor or a foreign firm may acquire 50% stake at extremely high valuations. Current market is just 165 crs. Investors can buy this scrip immediately. Dont be surprised if share prices regains its past glory and crosses Rs 300/ mark in next 6 -8 months. A strong buy.

3. Essar Oil Ltd Rs 180/: This Essar group company recently expanded its production capacity from 12 mn tonnes to 14 mn tonnes. For 08-09, company had reported loss of 455 crs, mainly due to 1200 cr forex loss in 1st 9 months. Subsequently, in Q4 alone, company reported EPS of 5.53 crs on equity of 1202 crs. Recently, block deal of 3 cr shares has taken place. As per our reliable sources, these shares have been sold by promoters to certain FIIs to create more liquidity as promoters had been holding close to 90% equity. For 09-10, company may report EPS of 14-15. Company is also likely to make QIP in July 09 at price of Rs 275-300/. Although, promoters have not been investor friendly anddont hold good track record, yet Essar Oil appears a good buy as share price can be Rs 300/ in next 2-6 months.

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S.No                 Company                           Buy                   Target                    Stoploss

 1        Navneet Publications India Ltd.  Above 83              88-92                             82

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BSE India Report for the next trading day after 03 July 2009
 

Security Name	Close	10 day %	60 day %	Idx Rel%
CCAP LTD.	32.65	58.11	271.02	55
SAM INDUS.	21.10	54.35	33.71	52
STERL.ENTER	53.30	49.30	285.39	47
JEYPORESUGAR	184.10	45.53	130.13	43

NSE India Report for the next trading day after 03 July 2009

Security Name	Close	10 day %	60 day %	Idx Rel%
EDUCOMP SOLUTIONS LTD	4463.85	53.19	111.04	52
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Emco Ltd.	Recco Price : 81.00	Target price : 111
All powered up A leading EPC player in the power T&D space Emco has a robust order book of Rs1,563 crore.

 

IDBI Bank Ltd.	Recco Price : 106.00	Target price : 169
At an inflexion point IDBI Bank’s operating performance is expected to improve in FY2010 even in the face of challenges like low CASA and weak margins.

 

Balrampur Chini Mills Ltd.	Recco Price : 98.00	Target price : 148
In a sweet spot Being the second largest sugar producer in the country Balrampur Chini Mills will be a key beneficiary of the surge in sugar prices.

 

Godrej Consumer Products Ltd	Recco Price : 145.00	Target price : 185
The soap opera GCPL to continue to gain market share in soap segment.

 

Sintex Industries Ltd.	Recco Price : 286.00	Target price : 400
Sintex back on the buying list We are re-initiating coverage on Sintex Industries because at the current market price the stock is attractive.

 

	Union Bank of India	| Buy Price: 46.00 | TargetPrice: 278 | Date: 03/07/2009

 

	Hindustan Lever Ltd.	| Buy Price: 172.00 | TargetPrice: 271 | Date: 02/07/2009

 

	Mold-Tek Technologies Ltd.	| Buy Price: 155.00 | TargetPrice: 112 | Date: 02/07/2009

 

	Orchid Chemicals & Pharmaceuticals Ltd	| Buy Price: 254.00 | TargetPrice: 163 | Date: 01/07/2009

 

India Cement Ltd.

| Buy Price: 220.00 | TargetPrice: 160 | Date: 30/06/2009

 

What other Brokers Recommend

Source                     Company                                                ActionTip                                   Target Price(Rs.) Simi Bhaumik  Larsen & Toubro Ltd.                     stop loss Rs 1545                                 1,600.00

Anil Singhvi+  Reliance Power Ltd.                          stop loss Rs 172                                   180.00

 Simi Bhaumik+  Bharat Heavy Electric...         Sell, stop loss Rs 2170                             2,117.00

 Anil Singhvi+  Lanco Infratech Ltd.                  Buy, stop loss Rs 357-                                368.00

 Anil Singhvi+  Tata Steel Ltd.Sell, stop loss                 Rs 423-                                          400.00

      Anil Singhvi+  Pantaloon Retail (Ind..., stop loss Rs 310- 295.00

Simi Bhaumik+  Nagarjuna Fertilisers...           Buy, stop loss Rs 34                                      55.00 Devangshu Dutta+  Oil & Natural Gas Cor...   Buy, stop loss Rs 1100                               1,225.00

 Mitesh Thacker+  NIIT Ltd.                             Buy for good returns- 0.00

Simi Bhaumik+  Chambal Fertilisers &...         Buy, stop loss Rs 55                                        85.00

Ashu Madan (Religa...+  IRB Infrastructure De... Buy on dips- 200.00

 Simi Bhaumik+  Jyoti Structures Ltd.               Hold, stop loss below Rs 125                         170.00 Mitesh Thacker+  Reliance Industries L...         Hold, support at                                       Rs 1950- 2,120.00 Salil Sharma+  Tata Consultancy Serv...           Hold, stop loss Rs 340- 455.00

Rajesh Jain (SMC G...+  Titagarh Wagons Ltd Hold, trailing stop loss Rs 400- 0.00

Salil Sharma+  Kalindee Rail Nirman ...           Book profits- 235.00

Gaurang Shah (Geoj...+  Reliance Industries L... Buy on dips- 2,450.00

 Prakash Gaba+  Tata Steel Ltd.                         Hold, in uptrend- 450.00

Ashu Bagri (SBICAP...+  Prism Cement Ltd.   Hold, stop loss Rs 35                                         46.00

Rajesh Jain (SMC G...+  Educomp Solutions Ltd... Buy at Rs 3400-3500

Sudarshan Sukhani+  Oil & Natural Gas Cor... Hold- 0.00

 Mitesh Thacker+         ITI Ltd.                         Hold- 46.00

Salil Sharma+              Hindustan Zinc Ltd.      Hold- 685.00 Ashu Bagri

(SBICAP...+                      GAIL (India) Ltd.         Hold, stop loss Rs 284- 368.00

 Prasad Kushe+  Sesa Goa Ltd.                          Buy, stop loss Rs 175-                                        220.00 Rahul Mohinder+  Nagarjuna Fertilisers...        Buy, stop loss Rs 38 ( in 31 Days)                        46.00 Prasad Kushe+  Bartronics India Ltd.                Buy, stop loss Rs 170-                                         215.00 Sudarshan Sukahni+  Tech Mahindra Ltd.        Buy- 800.00

 Ashu Bagri (SBICAP...+  GVK Power & Infrastru...  Hold, stop loss Rs 37                                  56.00 Rahul Mohinder+  India Cements Ltd.              Hold, support Rs 125-130                                   155.00 Rahul Mohinder+  ACC Ltd.                        Hold- 850.00

Gaurang Shah    Power Grid Corporatio...         Buy more on dips- 0.00

 Salil Sharma+  Nagarjuna Fertilisers...             Hold, stop loss Rs 39.50

 Gaurang Shah of Ge...+  Patel Engineering Ltd... Buy- 0.00

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Financial Astrology

1. As per financial astrology 3rd day of July month represented by Jupiter and Year 2009 is also represented by Moon Therefore combinations Moon and Jupiter made GajKesari yoga which may bring down prices of crude oil in spot and future

2. Indian stock market is expected to show volatile movement. Profit booking is expected in Cairn India and certain railways connected stocks like kalandiee rail nirman, Titagarh wagons at higher levels Traders may keep eyes on Gail , M&M, HMT, HPCL, BPCL, and IOC for short term trading

3. Natural Gas may show weak movement in spot and future market

4. Crude oil may show negative trend in spot market

5. Jute may show strength in spot market and future market

6. Indian rupee may show strength against US dollars in spot and future market

7. Today fortune is waiting Varashik Rashi alert for Tula Rashi in big trading

8. Predictions are base on financial astrology. Investors may go through their personal horoscope before taking any decisions.

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Disclaimer :

Stock Market is not a place for claiming guaranteed income -

The information contained herein is based on our associates analysis and we consider them reliable. We, however, do not vouch for the accuracy or the completeness of the material on this page. This material is for personal information and we are not responsible for any loss incurred based upon it.

The investments discussed or recommended in this report may not be suitable for all investors. Investors must make there own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. The information and analysis is based on various statistical reports which are dependent on high volatile market condition. The prediction is based on personal views and experience. These can't be taken as the final and accurate to invest in the market. The risk of profit and loss is 100% based on your who is our customer, as many factors affect the analysis i.e. government policies, natural calamities, international market and prices which are beyond our control.

This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, investors are advised to satisfy themselves before making any investments. We do not bear any responsibility for the authentication of the information contained in the reports and consequently, are not liable for any decisions taken based on the same. Further, our Research Reports only provide information updates and analysis

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-from sharestradingclass@yahoo.com