Archive for July 2011



BEST BUYING LEVELS FOR THE COMING WEEK

Written by HARIKRISHNAN.T
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Friends I think the major support zone of Nifty in the coming week will be 5400.

5390 will be a very crucial support level for Nifty. If trade stabilizes in this level, then it can go up to 5600. But if Nifty break that important 5390 level, then market may slip again to 5300.

So observe this level carefully and make a decision.

But I think the chances for breaking that support is less because the FIIs are on the buying side in the previous week. This is a positive note for the market. 

But the rate hike of RBI may affect the long term growth of economy also the Q1 results. So the investments of FIIs in the coming week will be mainly depend on these factors.

Q1 results of Sun TV, DLF, Powergrid Corporation, Bharti Airtel, Ranbaxy, Cipla etc will be announced this week. This also will be crucial for the market. So observe the Q1 results, watch the 5390 level of Nifty and make an intelligent decision.

This will be the perfect entry level and immediate resistances for the following stocks in the coming week.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



L&T FINANCE HOLDINGS IPO SUBSCRIBED 46% ON DAY 1

Written by HARIKRISHNAN.T
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The initial public offering of L&T Finance Holdings was subscribed 0.46 times or 45.78% till 1740 hours on the first day of the issue yesterday.

The company's IPO received bids worth 9.82 crore shares against 21.45 crore shares on offer, according to data available with the exchanges.

Of this 31% of the bids were at cut-off price.

L&T Finance Holdings, which plans to raise about Rs.1, 250 crore through the issue, has set the price band at Rs.51-59 a share.

The subscription will close on July 29.

The company offers a discount of Rs.2 for its employees.

The company had raised about Rs.153 crore from anchor investors at an average price of Rs.56 a share. (Anchor investor means a qualified institutional buyer making an application for a value of ten crore rupees or more in a public issue made through the book building process in accordance with ICDR Regulations. (Issue of Capital and Disclosure Requirements))

ANCHOR INVESTORS

The anchor investors, which subscribed to the IPO, are Malaysia's Tioman Investments (Khazanah), DSP Blackrock and Capital International.

L&T's stake in the company would come down to 83% from 95.94%

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



TECHNICAL ANALYSIS OF CROMPTON GREAVES

Written by HARIKRISHNAN.T
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Crompton Greaves announced its first quarter, 2011-12 results on Wednesday 20/07/2011. 

The company’s net profit decreased by 58.4 percent to Rs 79.47 crore in Q1, 2011-12, as compared with Rs 190.85 crore in the year ago period as profitability of all its segments registered a decline compared to the corresponding quarter of last year.

This affected the share price of the company and the price went down to Rs.171.1 very close to the 52 week's low price.

Today (25/07/2011) the price of the share closed at Rs.181.70 at NSE.

But since the management side is really strong and company has strong fundamentals and good quality products, we can make investments in these ranges without any fear.

When I observed the support levels of CG I found that the major support will be at Rs.171.

So when it reaches that level we can make investments. Even in these levels also long term investors can make investment.
Resistance level of CG (Courtesy www.moneycontrol.com ) 


Support level of CG (Courtesy www.moneycontrol.com )

The different resistance levels will be at Rs.251, Rs.275.2, Rs.297 etc.

But in order to reach that level we have to wait at least till the next quarter result.

So invest in these levels, wait patiently. You will get a good profit from the above stock.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "



L&T FINANCE HOLDINGS IPO

Written by HARIKRISHNAN.T
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L&T FinanceLimited (LTF) a subsidiary of Larsen and Toubro is one of the leading NBFCs (NBFC means Non-banking financial company. A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 of India and is engaged in the business of loans and advances) in the country and offers a wide spectrum of financial products and services for trade, industry and agriculture.

L&T Finance offers a Initial Public Offer.

Issue opens- 27-July-2011 (Wednesday)

Issue closes- 29-July-2011 (Friday)

Price band will be between Rs.51 to Rs.59.

IPO size will be Rs.1750 crore.

Bid lot will be in multiples of 100.

Face value Rs.10.

Listing at NSE & BSE.

Since Larsen & Toubro Ltd is a USD 9.8 billion technology, engineering and construction group with operations spread across the globe, I think the investment will be good especially in long term point of view.

For more details refer RHP at http://www.sebi.gov.in/dp/landtfindraft.pdf

Regards Hari " लोका समस्ता सुखिनो भवन्तु "












STOCKS I PREFER FOR THE NEXT CORRECTION

Written by HARIKRISHNAN.T
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Last Friday Nifty closed at 5660.65, 68.30 in red. But there was a positive rally throughout the week except in Friday.

From previous week onward FIIs are on the buying side. This is a positive note for Indian market.

So in this scenario I do not expect a sharp correction in the market. But there is a chance for small corrections. There is no chance for Nifty to settle below 5500 in this scenario.

This week the trigger of the market will mainly depend on the First Quarter Results. Infosys's result will be announced on July 12 and result of TCS will be announced on July 14.

So the further upward movement of the market is mainly depend on the Q1 result. Fund flow from FIIs to Indian market will mainly depend on the Q1 results. Monthly Inflation news and IIP data also affect the positive rally. (IIP( Index of Industrial Production) data is a simple index which provides information about the growth of different sectors of our economy like mining, electricity, Manufacturing & General.)

I think the major support level of Nifty is at 5600. If trade can stabilize in this level, it can go up to 5760, which is the 1st immediate resistance.

If Nifty breaks that level, the next immediate support will be at 5820.

The stocks that I prefer in this situation is

1)  IRB Infrastructure Developers Ltd.

The company is mainly focusing on constructions, real estate development etc. The clients are mainly Government agencies.

I advise buying the stock in the range of 155-160. The immediate resistance will be at 180.

2) IndusInd Bank Ltd. 

It is one of the major new generation bank in India. Now the stock is trading at 286 level. The best buying level will be at 250. Profit booking is advisable at 305.

3) LIC Housing Finance

LIC Housing Finance Ltd. is one of the largest Housing Finance company in India. Incorporated on 19th June 1989.The Authorized Capital of the Company is Rs.1500 Million (Rs.150 Crores) and its paid up Capital is Rs.950 Millions (Rs.95 Crores). 

The best buying level is at 196 level. The first support will be at 236 and if the economic situations are good, it can go up to 250. Profit booking is advisable in these ranges.

4) Tata Steel 

Tata steel is a global steel company pioneering in steel manufacturing. The safe entry level will be at 580. It can go up to 620 and if stock break that resistance level it can move to 640.

Regards Hari "  लोका समस्ता सुखिनो भवन्तु  "




BEST BUYING LEVELS FOR THIS WEEK

Written by HARIKRISHNAN.T
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The major support level of Nifty will be in the range 5530-5550.

If market gets support in this level it can go up to 5730 which is the 1st Resistance of Nifty in this scenario.

If trade stabilize in this range then it can go up to 5820 which is the 2nd Resistance of Nifty.

The important thing is that FIIs are in the Buying Side, but Domestic institutions are in the selling side.

The upward movement of market will depend on mainly 2 things

            1) Positive news about Monsoon. That will decrease the Inflation rate.
            2) First quarter results. If results are excellent, then it will positively affect the market

So I advise that watch the above 2 conditions when the market reaches 5730 level and take an intelligent decision. A profit booking is advisable in the 5730 level especially in the case of retail investors.

The buying levels various stocks of different sectors are given below.

Please click on the picture to get a clear view.

I advise to make investments only in these ranges.

Regards Hari " लोका समस्ता सुखिनो भवन्तु "