RESEARCH RECOMMENDATION ON SELECTED SCRIP

RAILWAY BUDGET 2009-10

Union Railway Minister Mamata Banerjee today presented the Railway Budget for
2009-2010. The budget focused clearly on upgrading the existing infrastructure and
providing better services to passengers.
Highlights of Railway Budget:
The major highlights of Railway budget is as follows:

Passenger Fares and freight rates kept unchanged
To set up 1000 MW power plant in alliance with NTPC

To acquire 18, 000 wagons in FY10 against 11,000 FY09. Wagon
manufacturers such as BEML, Titagarh wagons, Texmaco will be gained
from wagon orders.

To develop 50 stations as world class stations with international facility. To be
developed in Public private partnership (PPP) mode.

To develop air-conditioned double decker coaches.

To introduce non-stop train services in select cities.

To set up Cargo centers for perishable commodities.

To set up Expert committee for optic fiber cable networks.

The Railways will also set up a coach unit, with a capacity to produce 500
coaches per year via ppp mode.

Set up panel on financing unviable railway projects.

Plans to expand Kolkata metro.

Non-stop New Trains - fast services from point to point to be introduced.

Tatkal charges to be reduced from Rs 100 to Rs 50, to be percentage of fare.

Tatkal Scheme to be reduced from 5 days to 2days.

Monthly Ticket Of Rs. 25/- For Unorganized Sector/Poor Under ‘Izzat’
Scheme.

Seven nursing colleges to be set up on railway land in places including Delhi,
Kolkata and Mumbai.

Freight traffic target at 882 mt for FY10 vs. at 850mt in FY09.

Plan Outlay Of Rs.40,745 Cr proposed For 2009-2010. Out of this, Rs.2, 921
cr will be spent on new lines, Rs.1,750 cr on gauge conversion and Rs.1,102
cr on passenger amenities.

Government to provide additional budgetary support of Rs 5000 crore to
railways in 2009/10.
Overall the budget was positive for markets. Development of new stations,
improvement of infrastructure facilities and purchase of 18000 new Wagons in FY10
will benefit wagon manufacturers and infrastructure companies.

INVESTMENT STRATEGY

The Sensex having corrected close to 9% in the recent past (closing price from June 11th to
June 22 nd) shows that much of the negative news is already factored in.
Some of the key factors that investors must look at this point of time are:

The World Bank on Monday (22nd June 09) predicted that India's growth forecast for
2009 is 5.1% from earlier projection of 4%. It has projected an 8% growth for India in
2010, which will make it the fastest growing economy in the world in 2010, overtaking
China.

The U.S Fed Chief, Bernanke has predicted that the US recession will end later this
year. Some analysts say the economy will start growing in the July-September quarter
on the back of tax cuts and increased government spending. Further, U.S fed meet is
ending on 24th June 09. The interest rates are expected to be unchanged. But the
policymaker’s assessment of the economic situation will give a better direction to the
US stock market and the global markets as well.

There have been signs of some improvements in U.S: home sales have firmed:
construction activity has picked up – although from record-low levels; consumer
spending has stabilized following a massive cutback at the end of last year; layoffs are
slowing and some credit stresses have eased.

Further, the Indian Government is looking for disinvestments of the public sector units.
The amount raised through disinvestments would help the government to reduce the
fiscal deficit and also increase its infrastructure spending.

Also, the Union Budget on 6th July 09 is expected to be a pro reform budget with its
focus on infrastructure.

Considering the above factors, it is prudent to build a portfolio at lower levels.
We have listed below few stocks, which can be seen for Medium-term
investment perspective.

Scrip: ABB Ltd
Industry: Electric Equipment
CMP: Rs.737.40
52-W Range: Rs.944.40-343.35
Trailing PE: 30.2x
Target: Rs.780
Rationale: The company’s stand alone net sales increased by 15.3% (YoY) to
RS.6837.03 crores for CY08 and net profit increased by 11.30% (YoY) to Rs.547.41
crores. The company has bagged 425 crores order from power grid Corporation of
India and has also received an order worth Rs 550 million to provide the electrical
infrastructure for modernization of Kolkata airport.

Scrip: LIC Housing Finance Ltd
Industry: Finance- Housing
CMP: Rs. 647.70
52-W Range: Rs. 621-150.10
Trailing PE: 9.5x
Target: Rs.700
Rationale: The Company’s stand alone net sales increased by 31.8% (YoY) to
RS.754.43 crores for Q4FY09 and net profit increased by 33.40% (YoY) to Rs.157.56
crores. The company is targeting loan disbursement of up to Rs 13,000 crore in the
current financial year. The disbursements for the last fiscal stood at Rs 8,764 crores.
It has seen a 100% growth in loan approvals and sanctions so far this fiscal, and a
40% rise in the number of loan applications.

Scrip: CORPORATION BANK
Industry: Banking
CMP : Rs. 337
52-W Range: Rs.345-155
Trailing PE: 5.4x
Target: Rs. 370
Rationale: The Company has posted 39% increase in its standalone Net sales to
Rs.1706.39 crs for 4Q FY09 and 26.7% growth in its Net profit to Rs.260.49 crs
(YoY). The branch network of the Bank as on 31st Mar 2009 stood at 1054 as against
981 branches YoY. Further the Bank has plans to open 700 branches in the next five
years, which will increase its top line in the long run.

Scrip: BARTRONICS
Industry: Trading
CMP : Rs. 151.35
52-W Range: Rs. 202 - 47.40
Trailing PE: 5.6x
Target: Rs. 170
Rationale: For the full year FY09 the Company has reported 115% increase in its
topline to Rs.583.29 crs and 58% growth in its bottomline to Rs.75.11 crs (YoY) on
consolidated basis. The company had recently bagged a build-operate-transfer order
from the Municipal Corporation of Delhi for setting up 2,000 G2C kiosks. The
company is expecting Rs 5,000 crore through this project over the next nine years.
Further For FY10, the Company has guided for revenues at Rs 1000 crore with Net
Profit margins at about 15-18% i.e. Rs 150-180 crore.

Scrip REC LTD
Industry: Finance
CMP : Rs. 159.05
52-W Range: Rs.165-53
Trailing PE: 10.6x
Target: Rs.180
Rationale: REC reported 38% rise in its standalone net sales to Rs.1337 Crores and
65% jump in its net profit to Rs.388.04 crores for Q4 FY09.The Company is planning
to raise around Rs. 3000 crore by selling 20% equity stake either to QIP or through
follow on public issue for funding power projects.

Scrip BALRAMPUR CHINI
Industry: Sugar - integrated
CMP : Rs. 104
52-W Range: Rs. 110.45-29.30
Trailing PE: 17.13x
Target: Rs.115
Rationale: The company has recorded 15% growth in its standalone net sales to
Rs.355.06 crores for quarter ended Mar 09 on the back of higher sugar realization
though sales volumes were lower. The net profit of the company increased
marginally by 0.8% to Rs.66.19 crores(YoY). With sugar production is estimated to
be lower, we expect sugar prices to remain firm in the coming days, which in turn will
boost the revenues of the company.

Scrip: YES BANK
Industry: Banking
CMP: Rs.139.90
52-W Range: Rs.149-40.60
Trailing PE: 13.67x
Target: Rs.155
Rationale: The company’s interest income for the Q4FY09 is increased by 46.40%
(YoY) to RS.566.31 crores and net profit is increased by 24.20% (YoY) to Rs.80.11
crores. It has plans to enter into retail brokerage business, which would widen its feebased
income and mobilise low-cost deposits. Further it is it will raise USD 400 million
by means of equity through a follow-on public offer and debt.

Scrip: CANARA BANK
Industry: Banking
CMP: Rs. 255
52-W Range: Rs.298-136.45
Trailing PE: 5.21x
Target: Rs.293
Rationale: The company’s interest income for the Q4FY09 is increased by 22.90%
(YoY) to RS.4653.88 crores and net profit increased by 54.90% (YoY) to Rs.718.81
crores. Canara Bank is expecting a 21-22 % growth in advances this fiscal as against
29% in FY09 and hopes to maintain net interest margin of 2.8 % in 2009-10. Further
it is willing to acquire a bank in India to increase its size and presence.

Scrip: POLARIS SOFTWARE
Industry: Software
CMP: Rs.105.50
52-W Range: Rs.115.40-25.20
Trailing PE: 6.17x
Target: Rs.120
Rationale: The Company’s stand alone net sales increased by 18% (YoY) to
RS.337.25 crores for Q4FY09 and net profit increased by 156% (YoY) to Rs.48.81
crores. It is setting up a centre of excellence for insurance near Chennai with an
investment of around Rs 100 crore. The centre would help the company strengthen
the insurance business, which contributed Rs 95 crore to the turnover last year. The
company has set a target of Rs 250 crore over the next three years from this
segment.

Scrip: PUNJAB NATIONAL BANK
Industry: Banking
CMP: Rs.625
52W Range:Rs.425-286
Trailing PE: 6.6x
Target: Rs.670
Rationale: The Company’s interest income for the Q4FY09 is increased by 35.10%
(YoY) to RS.5242.57 crores and net profit is increased by 59.20% (YoY) to Rs.865.57
crores. It is collaborating with the US-based $1.3-billion MoneyGram International to
increase its business through remittance services. This will be offered from the bank’s
4,600 branches in the country and through partners such as UAE Exchange and
Financial Services and Thomas Cook India.


Strategy to be followed:
 Buy on every decline and sell on every rally.
 However, given the current high volatility of the markets, investors are
advised to take a long-term investment perspective.
 Investors are advised to book profit even when the stock reaches 60-70% of
the target
 Diversify your portfolio as it reduces the risk

Research - calls of the day

RESEARCH -Nifty (FUT) R- 4295/4345/4465 S- 4175/4105/3985; Sensex
(CASH) R- 14475/14620/15000 S- 14095/13870/13490; MARKET OUTLOOK:
RANGE BOUND (09.03A)

RESEARCH: MARKET OUTLOOK: Markets to remain rang bound between 4140 – 4350 levels. The NIFTY has resistance at 4265 and 4300. Above this level, it could test at 4352. On the downside, the support will be at 4175 and 4143. Below this level, it may test at 4115. Trade cautiously as volatility may remain high. Short covering can be expected in the later part of the day.

11:38 AM 6/24 RESEARCH: SHORT-TERM FUNDAMENTAL CALL : BUY ORCHID CHEM CMP 102 TGT 107 SL 99.50

12:24 PM 6/24 RESEARCH: INTRADAY CALL (CASH): REENTER APTECHT BUY ABOVE 155 TGT 161 SL 151

1:28 PM 6/24 RESEARCH: INTRADAY CALL (CASH): BUY TATA COMM ABOVE 460 TGT 474 SL 453

2:48 PM 6/24 RESEARCH: INTRADAY CALL (CASH): APTECHT TGT ACHIEVED

Fibonacci Support and Resistance_24062009

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Buy Suzlon Energy on dips: Bose

Technical Analyst, Rajat K Bose is of the view that one can buy Suzlon Energy on dips.

Bose told , "Suzlon Energy long term looks pretty bullish technically. If there is a dip then that would be a good buying opportunity because medium term target would be Rs 135-140 for a minimum. I do not expect it to really go below Rs 93-91 kind of range and if we get a dip further towards say double digit levels of Rs 99-98 that would be a good buying opportunity because you are actually placing a stop below Rs 90 and keeping a target of Rs 135-140. So maybe it is not a buy right now but somewhat at lower levels definitely I would like to consider buying it."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Fibonacci Support and Resistance_23062009

Fibonacci Support and Resistance_23062009

Download the Report here
http://www.4shared.com/file/113398383/237af38b/Fibonacci_Support_and_Resistance_23062009.html

Password for the file is http://dailytradereports.blogspot.com/

FIBONACCI LEVELS- 19-06-2009

ABOUT FIBONACCI LEVELS:
Fibonacci levels are basically Support and Resistance levels generated using 5-day’s chart (i.e) 5 day’s High, Low and Close. Hence they are more accurate than Pivot levels which are generated using previous day’s High, Low and Close.
Generally stocks look bullish above the previous day’s High and bearish below previous day’s Low. So Previous Day’s high is the minor resistance (MIR) for the scrip and the Previous Day’s low is the minor support (MIS) for the scrip.
Stocks look strong above the 5-day’s High and weak below 5-day’s Low. So Previous 5-day’s high is the major resistance (MR) for the scrip and the 5-day’s low is the major support (MS) for the scrip.
So,
MR INDICATES MAJOR RESISTANCE- 5 DAY’S HIGH
MS INDICATES MAJOR SUPPORT- 5 DAY’S LOW
MIR INDICATES MINOR RESISTANCE- PREVIOUS DAY’S HIGH
MIS INDICATES MINOR SUPPORT- PREVIOUS DAY’S LOW
SCRIP LOOKS BULLISH ABOVE PREVIOUS DAY’S HIGH
SCRIP LOOKS STRONG ABOVE 5 DAY’S HIGH
SCRIP LOOKS BEARISH BELOW PREVIOUS DAY’S LOW
SCRIP LOOKS WEAK BELOW 5 DAY’S LOW
LTP is the Last Traded Price for the scrip

CALL FOR THE DAY-18th june

SHORT ITC IN CASH IN NSE BELOW 191.90
WITH SL OF 196, TGTS 188.50/187/184.50

June USDOLLAR Buy @ 48.2700 SL 48.00 trg 48.50/48.65/48.75.

Money Morning 18-06-2009

MONEY MORNING
18 JUNE 2009


Following two days of steep losses, U.S stocks saw a lackluster outing
on Wednesday, with the major averages finishing on opposite sides of
the unchanged line as mixed trader sentiment regarding near-term
economic prospects and proposed financial system reforms from the
Obama administration weighted on the markets. While Dow Jones
dropped marginally by 0.09%, NASDAQ gained marginally by 0.66%.
Asian bourses are trading mixed with Nikkei down by 1.80%, Hang
Seng down by 1.23% and Singapore Nifty up by 20 points.

With mixed global cues, the domestic bourses might trade range bound
for the day. Technically spot nifty may take resistance at
4470/4585/4770 levels and support at 4285/4215/4035 levels.
POST-MARKET ANALYSIS:

Weak global cues and selling by foreign funds in last two days weighed
on investor sentiment, as the key benchmark indices tumbled recording
their steepest drop in seven weeks. While Sensex dropped 2.91%, Nifty
plunged 3.58%.

FIIs’ were net sellers both in equity and derivatives.

ADRs: Satyam Computers. (-8.16%), Tata Motors (-3.88%), Sterlite Ind.
(-2.74%) and Dr. Reddy’s Lab (+3.59%)

NEWS TO USE:
POSITIVE


FORTIS HEALTHCARE has emerged as the lead bidder to acquire a
part of Wockhardt Hospitals.

TATA ELXSI will aggressively pursue projects in the automotive and
aerospace sectors into fiscal 2010.

YES BANK would soon enter into retail brokerage business, which
would widen its fee-based income and mobilise low-cost deposits.

OMAXE has bagged a contract worth Rs 128.34 crore from UP Projects
Corporation Ltd for various construction related works.

BPCL has entered into an agreement with Engineers India Ltd for
commercializing the in-house technology developed by BPCL- Kochi
Refinery for removing hydrogen sulphide gas produced when crude oil
is heated to high temperature.

NEUTRAL
WOCKHARDT has sold its German subsidiary Esparma to another German company, Lindopharm
GmbH, a move that is in line with its plan to divest non-core businesses.

JET AIRWAYS and Kingfisher Airlines, have increased their fuel surcharge by Rs 400, as a result of
successive increases in the prices of Aviation Turbine Fuel (ATF).

M&M is betting its diesel pickup trucks can beat the Chinese to the US market.

The Ministry of Petroleum and Natural Gas has gone ahead and directed RIL to make additional
allocation of natural gas from its K-G basin find to nine power companies from the surplus available
because of no or low offtake by fertiliser units.

Daiichi Sankyo, the majority shareholder in Indian pharma major RANBAXY LABORATORIES, plans
to raise 100 billion yen through public issue of bonds.

SAIL has sought an increase in import duty on steel to discourage cheaper arrival of the commodity,
which has seen a surge in recent times, from countries like China and Ukraine.

JINDAL POWER is planning to launch an initial public offer (IPO) this financial year to part finance the
expansion programme of the parent firm.

Steel czar Lakhsmi N Mittal and partners OIL AND NATURAL GAS CORP (ONGC) and Total SA of
France will invest $150 million in exploration of oil in Nigeria.

MAN INDUSTRIES India is shelving its plan to build a $100-million plant in Arkansas, a year after
announcing the project that would have created over 250 jobs.

Textiles Minister Dayanidhi Maran pitched for a stimulus package for the textiles sector, which has
witnessed several job losses and negative growth owing to the slowdown in the major markets of the
US and EU.

SYNDICATE BANK has raised Rs 200 crore through issue of unsecured non-convertible sub-ordinated
debt (eligible for lower Tier-II capital).

HDFC and HDFC BANK are set to reduce interest rates on term deposits by up to 25 basis points

SBI is readying merger plans for two of its little-known subsidiaries, restarting a slow-moving and
controversial effort to consolidate its operations.

RCOM is in advanced with Franco American Alcatel-Lucent for a $500 million outsourcing deal to
manage its 70,000 – 80,000 kms of fibre optic cables across the country.

NALCO will take up after September the process of preparing a detailed project report for its proposed
2.5-lakh-tonne smelter unit in Indonesia, estimated to cost Rs 3,000 crore.

Reserch -Today view-18th june

9:48 AM 6/18 RESEARCH -Nifty (FUT) R-4475/4600/4795 S-4275/4200/4005 ; Sensex (CASH) R-14865/15205/15750 S-14315/14110/13560 ; MARKET OUTLOOK: RANGE BOUND

11:28 AM 6/18 RESEARCH: INTRADAY CALL(CASH): SHORT SELL PRISMCEM BELOW 36.90 TGT 35.70 SL 37.50

12:00 PM 6/18 RESEARCH - INTRADAY CALL (CASH) : SHORT SELL PUNJLLOYD BELOW 191.30 TGT 182 SL 195

in dips buy PTC,HDIL..........nifty fut looks bullish above 4365 below 4325 break

Reserch- Stocks For delivery

Buy Recomaddation for the Delivery-
GVKPIL
Axis BANK
Sun Pharma
Bharti

Research- Today view

FII's are continuous sellers for the past 3 days because there is a PROPOSAL to bring lock in period for FII investments in INDIA

9:46 AM 6/15 RESEARCH -Nifty (FUT) R-4625/4675/4755 S-4535/4485/4355 ; Sensex (CASH) R-15340/15500/15765 S-15075/14910/14485 ; MARKET OUTLOOK: RANGE BOUND
9:47 AM 6/15 RESEARCH-Global Market (in %): DOW JONES (+0.32%), S&P 500 (+0.14%), NASDAQ (-0.19%), FTSE (-0.45%), DAX (-0.74%), NIKKEI (-0.94%), HANG SENG (-1.57%) & SGX NIFTY (-56 POINTS)
9:47 AM 6/15 RESEARCH -ADRs: ADRs: Satyam Computers (-14.65%), MTNL (-7.54%), Wipro (-4.88%) and Tata Comm. (-4.04%)
10:39 AM 6/15 RESEARCH: SHORT-TERM FUNDAMENTAL CALL : JKLAKSHMI CMP 109.65 TGT 116 SL 107
10:46 AM 6/15 RESEARCH : INTRADAY CALL (CASH): BUY DLF ABOVE 371 TGT 385 SL 365
10:46 AM 6/15 RESEARCH : INTRADAY CALL ( CASH ) : BUY JSW STEEL ABOVE 694 TGT 718 SL 683
10:47 AM 6/15 RESEARCH: SHORT-TERM FUNDAMENTAL CALL : BUY RANBAXY CMP 291.5 TGT 308 SL 283
10:49 AM 6/15 RESEARCH : INTRADAY CALL ( CASH ) : BUY HDIL ABOVE 260 TGT 270 SL 255
10:54 AM 6/15 RESEARCH : INTRADAY CALL ( CASH ) : BUY LITL ABOVE 390 TGT 405 SL 382
10:56 AM 6/15 FUNDAMENTAL CALLUY JP ASSOCIATE CMP 215.60 TARGET 225 SL 205
10:57 AM 6/15 RESEARCH: SHORT-TERM FUNDAMENTAL CALL : BUY DEEPAK FERT ABOVE 95 TGT 99.75 SL 92.45
11:00 AM 6/15 RESEARCH : INTRADAY CALL (CASH): BUY ABAN ABOVE 1027 TGT 1058 SL 1011
11:03 AM 6/15 RESEARCH: SHORT-TERM FUNDAMENTAL CALL : BUY IOB CMP 84.20 TGT 89.4 SL 81.5
11:22 AM 6/15 RESEARCH : INTRADAY CALL (CASH): BUY RCOM ABOVE 339 TGT 354 SL 334