Technical Analyst, Ashwani Gujral is of the view that Reliance Industries has support at Rs 1850.
Gujral told , "Rs 1,970-1,980 is sort of the place from where that big gap happened on that post election results day, it is right there at that point, it's filled up its gap. Now it is at a clear support, if it holds up and Reliance comes back, the market will come back. But chances are once something fills a gap, it tends to go down bit further and the next support could be Rs 1,850. And with so close to a key market support 4,100 that if something goes wrong, the market could try to fill up its gap and that becomes a very clear possibility so people should keep 4,100 stop on all positions."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the stocks/sectors discussed.
Hold Reliance Industries, says Choksey
Deven Choksey of KR Choksey Securities is of the view that one can hold Reliance Industries.
Choksey told , "In Reliance the news flow is negative and it is going to continue for some more time till Supreme Court (SC) judgement is out. If one wants to pick up the momentum this is not the right time. Probably one will have to wait for better news flows to come in and then start buying this particular counter. If you are an investor, already invested in this particular company, one shouldn’t be unduly worried about this particular company’s business future etc."
He further added, "My own take is that SC judgement would probably give lot of clarity on whatever the issues are. High Court (HC) judgement also is largely to do with the family settlement of this particular dispute. So maybe economic interest on this particular subject would be an area where SC is going to be throwing more light on. So I would stay invested with my long-term investment portfolio and for momentum to build up, I think I will wait for some better news flows to come in and then probably buy. As of now I think hold as far as buying decision is concerned."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.
Monday, June 22, 2009
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
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/
Decision on Future Ventures' IPO in 30 days: Kishore Biyani
Kishore Biyani, Managing Director of Pantaloon Retail (India) Limited, said the company was mulling an initial public offer for Future Ventures, and that a decison on the same would be taken in 30 days.
Biyani said he was looking to raise Rs 2,000 crore through the IPO and added he would put the money to use for new ideas.
“We are looking at reorganising the group business and consolidate retail under the financial business,” Biyani said, adding that the company would unfold plans to realign businesses in the next few weeks.
Q: Are you going to go ahead with the IPO and what is the exact quantum that you seek to raise?
A: I think we have started working on drawing board of how we can look at IPO of Future Ventures. So definitely something is on the cards but we will take a decision in the next 30 days and the original quantum will get reduced. We are still working on the final numbers. But we are looking at some form of IPO for Future Ventures because that is one of our largest dreams. Lot of people can participate in the growth of the consumption story. We have some big plans on Future Ventures but we will unfold it in the next few days.
Q: We hear that even if the trim down version of the IPO should be Rs 2,000 crore plus, what would you need to raise that kind of money for and will any of that money come into any of your group companies?
A: No, that is not the idea. The idea is to fund or be a mentor capitalist to a lot of consumption stories in the country. The idea is also to look at partnering with various partners in building up the consumption theme in India and also building up new projects. Maybe we might look at entry into our own brand of airtime along with somebody and they might be funded by this. So, we are looking at some big ideas to be funded out of this Future Ventures.
Biyani said he was looking to raise Rs 2,000 crore through the IPO and added he would put the money to use for new ideas.
“We are looking at reorganising the group business and consolidate retail under the financial business,” Biyani said, adding that the company would unfold plans to realign businesses in the next few weeks.
Q: Are you going to go ahead with the IPO and what is the exact quantum that you seek to raise?
A: I think we have started working on drawing board of how we can look at IPO of Future Ventures. So definitely something is on the cards but we will take a decision in the next 30 days and the original quantum will get reduced. We are still working on the final numbers. But we are looking at some form of IPO for Future Ventures because that is one of our largest dreams. Lot of people can participate in the growth of the consumption story. We have some big plans on Future Ventures but we will unfold it in the next few days.
Q: We hear that even if the trim down version of the IPO should be Rs 2,000 crore plus, what would you need to raise that kind of money for and will any of that money come into any of your group companies?
A: No, that is not the idea. The idea is to fund or be a mentor capitalist to a lot of consumption stories in the country. The idea is also to look at partnering with various partners in building up the consumption theme in India and also building up new projects. Maybe we might look at entry into our own brand of airtime along with somebody and they might be funded by this. So, we are looking at some big ideas to be funded out of this Future Ventures.
Nifty to reach 6000 if it crosses 4650: Rakesh Jhunjhunwala
n a candid interview with A news Channel, Rakesh Jhunjhunwala, one of India’s most respected equity investors, said the Sensex could go up to 20,000 and then slip into a trading range between 15,000 and 16,000. The benchmark index won’t hit 21,000 in a straight run though, the Big Bull said.
“If the Nifty breaks 4650 decisively and holds for a week or so, it could hit 5900-6000,” Jhunjhunwala said. The markets would consolidate between 4,000-5,000 for three-four years, he added.
The correction seen in the latter part of 2008, he said, was a part of a major bull run that continues and which started in September 2001. “The bull market started in September 2001. We had the first leg up to September 2002 after which there was a correction. Then it started from April 2003, that leg lasted till 21,000,” the ace investor said. “That gets corrected back now to 7,500-8,000 and now we have resumed that bull market. So we can go to 20,000 and again come back to 16,000-15,000, make a range and then make a move which goes above 21,000.”
“If the Nifty breaks 4650 decisively and holds for a week or so, it could hit 5900-6000,” Jhunjhunwala said. The markets would consolidate between 4,000-5,000 for three-four years, he added.
The correction seen in the latter part of 2008, he said, was a part of a major bull run that continues and which started in September 2001. “The bull market started in September 2001. We had the first leg up to September 2002 after which there was a correction. Then it started from April 2003, that leg lasted till 21,000,” the ace investor said. “That gets corrected back now to 7,500-8,000 and now we have resumed that bull market. So we can go to 20,000 and again come back to 16,000-15,000, make a range and then make a move which goes above 21,000.”
Saturday, June 20, 2009
FIBONACCI LEVELS for 22-06-2009
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
HOW TO USE IT:
For e.g. For Aban Offshore June Futures LTP is 3480 .MS is 3235 which is the major support below which the stock is extremely weak and MR is 3579 which is the major resistance above which the stock is extremely strong.
Suppose the stock currently trades at 3510, above 3512 long position can be built for the first target of 3579 and if it cuts 3579 it can go up to the second target of 3645 and the stop loss can be placed at 3473. Since the trend is sideways it becomes bullish after it cuts 3505(MIR) and becomes extremely strong after it cuts 3579(MR) levels.
Download Full File
http://www.4shared.com/file/113039427/af2fc4f7/Fibonacci_Support_and_Resistance_22062009.html
Password for the file is
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
HOW TO USE IT:
For e.g. For Aban Offshore June Futures LTP is 3480 .MS is 3235 which is the major support below which the stock is extremely weak and MR is 3579 which is the major resistance above which the stock is extremely strong.
Suppose the stock currently trades at 3510, above 3512 long position can be built for the first target of 3579 and if it cuts 3579 it can go up to the second target of 3645 and the stop loss can be placed at 3473. Since the trend is sideways it becomes bullish after it cuts 3505(MIR) and becomes extremely strong after it cuts 3579(MR) levels.
Download Full File
http://www.4shared.com/file/113039427/af2fc4f7/Fibonacci_Support_and_Resistance_22062009.html
Password for the file is
" http://dailytradereports.blogspot.com/ "
Mahindra Holidays & Resorts India Ltd- IPO (Subscribe)
Company Profile
Mahindra Holidays & Resorts India Ltd (MHRIL) is incorporaed in 1996. MHRIL is an
established player in the leisure hospitality segment, and provides holidays through
vacation ownership memberships. The members enrolled for the company’s
offerings can reside at resorts in a range of locations, for a pre-determined number
of days for a fixed period.
MHRIL’s flagship brand is Club Mahindra Holidays, which has been selected as
Superbrand 2009. MHRIL has also introduced new vacation ownership offerings such
as Zest and Club Mahindra Fundays, Mahindra Homestays, travel and holiday related
services through club mahindra.
The cumulative member base increased to 92,825 in fiscal 2009 from 38,691 in
fiscal 2006. As of May 31, 2009, MHRIL has 96,067 members and 27 resorts across
India and Thailand, of which it own 11 properties and others are leased. About
35.18% of new member additions in FY09 came from referrals by existing members.
Objects Of The Issue
Investment Rationale
Market leader: It is one of the leading leisure hospitality providers in
India. The Club Mahindra vacation ownership members increased to 96067
members in May 2009 from 38,691 members in 2006.
Domestic expansion: The Company is expanding its network by launching
seven new projects at Pondicherry, Kumbhalgarh (Rajasthan),
Kodambakkam (Tamil Nadu), Binsar (Uttaranchal), Theog (Himachal
Pradesh) and Tungi (Maharashtra), which will increase its top line in the
long run.
Expanding internationally: It is in the process of evaluating markets such
as South Africa and China, and it has also plans for investment in Austria.
This will increase its member base and resort inventory thus resulting in
increased revenues.
Investment Concern
The company’s revenues are highly dependent on the travel industry and
declines in or disruptions to the travel industry, such as those caused by
terrorism, natural disasters, financial instability or a downturn in economic
growth, may adversely affect its financial condition and results of
operation.
Industry Profile
The domestic trips are expected to grow at a CAGR of 11.7% over 2007-
2012, to reach approximately 871 million trips in 2012 from 527 million
domestic tourists in the year 2007.Further the domestic tourism
expenditure is expected to rise to Rs 2,621.1 billion, growing at a CAGR of
13.6% over 2007-2012.
Valuation
The company has priced its issue at 29.02x of its FY09 earnings. The issue seems to
be normally priced compared with its peer. Further its consistence financial
performance, growing Indian economy and increase in consumer spending looks
attractive for the company. So we recommend to “SUBSCRIBE” the issue for long
term perspective and listing gains.
Mahindra Holidays & Resorts India Ltd (MHRIL) is incorporaed in 1996. MHRIL is an
established player in the leisure hospitality segment, and provides holidays through
vacation ownership memberships. The members enrolled for the company’s
offerings can reside at resorts in a range of locations, for a pre-determined number
of days for a fixed period.
MHRIL’s flagship brand is Club Mahindra Holidays, which has been selected as
Superbrand 2009. MHRIL has also introduced new vacation ownership offerings such
as Zest and Club Mahindra Fundays, Mahindra Homestays, travel and holiday related
services through club mahindra.
The cumulative member base increased to 92,825 in fiscal 2009 from 38,691 in
fiscal 2006. As of May 31, 2009, MHRIL has 96,067 members and 27 resorts across
India and Thailand, of which it own 11 properties and others are leased. About
35.18% of new member additions in FY09 came from referrals by existing members.
Objects Of The Issue
Investment Rationale
Market leader: It is one of the leading leisure hospitality providers in
India. The Club Mahindra vacation ownership members increased to 96067
members in May 2009 from 38,691 members in 2006.
Domestic expansion: The Company is expanding its network by launching
seven new projects at Pondicherry, Kumbhalgarh (Rajasthan),
Kodambakkam (Tamil Nadu), Binsar (Uttaranchal), Theog (Himachal
Pradesh) and Tungi (Maharashtra), which will increase its top line in the
long run.
Expanding internationally: It is in the process of evaluating markets such
as South Africa and China, and it has also plans for investment in Austria.
This will increase its member base and resort inventory thus resulting in
increased revenues.
Investment Concern
The company’s revenues are highly dependent on the travel industry and
declines in or disruptions to the travel industry, such as those caused by
terrorism, natural disasters, financial instability or a downturn in economic
growth, may adversely affect its financial condition and results of
operation.
Industry Profile
The domestic trips are expected to grow at a CAGR of 11.7% over 2007-
2012, to reach approximately 871 million trips in 2012 from 527 million
domestic tourists in the year 2007.Further the domestic tourism
expenditure is expected to rise to Rs 2,621.1 billion, growing at a CAGR of
13.6% over 2007-2012.
Valuation
The company has priced its issue at 29.02x of its FY09 earnings. The issue seems to
be normally priced compared with its peer. Further its consistence financial
performance, growing Indian economy and increase in consumer spending looks
attractive for the company. So we recommend to “SUBSCRIBE” the issue for long
term perspective and listing gains.
WEEKLY MARKET OUTLOOK-19062009
NIFTY remains in bull mood.!!! Considering the bull has a lot of force …
In the previous weekly market outlook letter, as we mentioned that NIFTY may
continue its bullish trend, but it has to grab relax point…!!! Of course…NIFTY
exactly grabbed it.
Going on to the GLOBAL face, the Asian equity indices NIKKEI & HANG SENG are
drastically down by more than 3% against previous week, after having failed to produce
a meaningful rebound on Wall Street due to profit booking. The weekly chart of most
global equity indices are signaling that an uptrend can continue for few more weeks.
On the domestic wall, as of last week, the market shadow climate was characterized by
heavy selling by foreign institutional investors and profit booking by domestic investors.
Overall NIFTY is likely to remain in BULL mood and the short-term bull mood will face
resistance at 4601 and then 4693 levels. NIFTY technically created lower top lower
bottom formation over the last five trading sessions, which suggests pessimistic signal.
At the same time, the bull has a lot of force behind the bear when market is in uptrend.
So one can go fresh long if NIFTY trades above 4375 levels on expectations of short
covering. Above 4494 levels, NIFTY can move towards 4537 and 4601 levels. Looking
at the downside, the support zone for NIFTY is seen at 4206 and 4092 levels. If NIFTY
crosses this level, then the downtrend decider can be expected to capture the market.
What about Futures & Options market…!!! The fall in Nifty open interest put call ratio to
below one against last week denotes reduction in short positions in the market.
Generally if PC Ratio is below one, it indicates market is in oversold zone. Hence an
upside bounce back can be expected at any time on NIFTY due to short covering. The
INDEX open interest increased by 14.70% (WoW) while the June contract price was
down by roughly 5.73%, suggesting that short positions has build up in the NIFTY JUNE
contract. The weekly average cost of carry was positive and NIFTY June futures trading
at premium against spot market, suggest positive signs. The weekly average Implied
Volatility (IV) of all INDEX call and put options increased by 6.15% and 5.46%
respectively. This could be due to the expectations about a limited upside and downside
movement in the INDEX. Considering the above said F&O factors, investors are
advised to go fresh long if NIFTY trades above 4375, until then trade cautiously.
MARKET ANALYSIS
The investors seem to have booked profits after the recent solid surge in the stock
prices. The domestic stock market closed on a weak note for the week on back of
heavy selling pressures across the sectors. Weak global cues and Foreign Institutional
selling during the week weighed on the markets, bringing them down by about 5%.
Subscribe to:
Posts (Atom)
