Weekly Stock Ideas

Buy Pantaloon at Rs517 with SL of Rs509 and Target of Rs540, 545Buy IDFC at Rs127 with SL of Rs122 Target of Rs135, 139Buy Renuka Sugars at Rs629 with SL of Rs620 and Target of Rs650, 655Buy Cummins at Rs381 with SL of Rs373 and Target of Rs395, 400 Buy Tata Power at Rs702 with SL of Rs686 and Target of Rs730, ...

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5 More Stocks to Avoid in the Short Term

When the stock market indices go up, some of the folks get excited. I have been asked a hundred times, “Ah! Market is on a roll, how about your portfolio?” Obviously the common man thinks that because the index moves upwards all the stock prices (or at least most of them) need to go up. This is simply not true. The stock market, like any other market just follows the principles of demand and supply gap. For example, if the Indian rupee appreciates, the IT companies will gain less. The market sentiment may turn negative against the software companies...

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Book Value Of A Company

Book Value of A Company is defined as the sum of all assets subtracted by the sum of all liabilities/obligations. In other words, this is what shareholders will get if the company is to cease operations immediately. The reality, however, is different from that. Book Value does not always reflect what shareholders will get in the event of liquidation. For example, inventory is stated at full cost (100% value). But, who would want to buy a bunch of Pentium IV chips if the company is not going to exist tomorrow?Therefore, we cannot rely on book value...

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Stock Market Myths

1. You can tell if a Stock is cheap or expensive by the Price to Earnings Ratio.False: PE ratios are easy to calculate, that is why they are listed in newspapers etc. But you cannot compare PE’s on companies from different industries, as the variables those companies and industries have are different. Even comparing within an industry, PE’s don’t tell you about many financial fundamentals and nothing about a stock’s value.2. To make Money in the Stock Market, you must assume High Risks.False: Tips to Lower your Risk:· Do not put more than 10% of...

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Stock Indexes: The Inside Story

Most of us have heard of stock indexes, but have only a fuzzy idea of them at best. This article aims to clarify some of the basics of stock indexes — what they are and how they work.What Is A Stock Index?A stock index is simply an average price for a large group of stocks, either those on a particular stock exchange or stocks across an entire investing sector. Indexes are formed from stocks with something in common: they are on the same exchange, from the same industry, or have the same company size or location. Stock indexes give us an overall...

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The Stock Trading Plan

1. That discipline contributed more to their success than their trading philosophy itself. Remember that the key to any plan is how well it holds over time.2. There is no "sure thing", and there is no trading system that is 100% accurate. Your goal, as a trader, is to usethe tools available and try to develop an edge. Base your trades on sound fundamental and technical reasoning, rather than on hunches and long shots. If you can develop an edge, however small, over time you will be successful.3. A trader must be able to admit they have made a mistake....

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Monetary and Credit Policy - Expectations

RBI would announce the monetary and credit policy on 31/Jul/07. What can we expect?RBI would hold all rates steadyThis is because inflation is under control - the inflation currently is around 4.27% as against 5.94% as of end of Mar/07. And the inflation is likely to remain around 5% because of the favourable base effect that would continue till second quarter of FY08. There are some pressures though - the main one being that of crude oil prices that have gone up significantly now (a round of fuel price hike in India cannot be ruled out - infact...

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Biggest scare since 2 April 2007

The BSE 30-share Sensex's 541.74-point, or 3.4%, decline to 15,234.57 is its biggest rout in a single trading session in nearly four months.The previous biggest point fall in Sensex had occurred in early April 2007. The Sensex had tumbled 617 points on 2 April 2007 following the Reserve Bank of India (RBI)'s surprise hike in interest rates announced after trading hours on 30 March 2007. RBI had raised its short-term lending rate, the repo rate, by 25 basis points (bps) to 7.75%. It had also raised its cash reserve ratio (CRR) by half a percentage...

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ZEE TV -Surges ahead

ZEE SURGES AH...

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RBI’s monetary policy review holds key

With most of the frontline companies having already declared their Q1 June 2007 results, the market will closely watch the monetary policy review of RBI due on Tuesday, 31 July 2007. RBI is likely to keep rates steady. However, it remains to be seen whether the central bank will raise cash reserve ratio (CRR) to suck out excess liquidity in the banking system. The 30-share BSE Sensex lost 330.98 points or 2.13% to 15,234.57 in the week ended 27 July 2007, on profit booking. The S&P CNX Nifty lost 120.85 points or 2.6% to 4,445.20 in the week....

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Assessing Your Personal Strengths

Assessing Your Personal Strengths: What They Mean for TradingBrett N. Steenbarger, Ph.D.A common perspective is that traders run into problems because of personal (or personality) flaws. My experience with successful traders in professional settings, however, finds that the successful traders often have as many of those shortcomings as other traders. The difference lies in their personal strengths--and how they bring these to bear in their trading.It's only been fairly recently--with the rise of "positive psychology"--that research has taken a...

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Sensex recovers on late buying

The market resumed in the green despite weak Asian cues and rallied sharply led by capital goods and auto stocks. Energy majors Reliance Industries and ONGC also supported indices. The Sensex came of its high as profit selling began in mid-morning trades and slipped into the red as investor confidence waned. The index majors ACC and Bharti Airtel led the slump and the Sensex touched the intra-day low of 15,654. The market remained subdued thereafter but recovered on a hectic buying in heavyweights, IT and pharma stocks towards the close. The Sensex...

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IVR Prime - IPO

MAX. ISSUE SIZE (Rs) : 849 croresPRICE BAND (Rs) : 510 - 600ISSUE OPENS/CLOSES : 23rd to 26th July, 2007LISTING : NSE, BSE.IVR Prime is a subsidiary of IVRCL Infrastructures, which will still hold around 62 per cent stake in the company post-IPO. At the outset itself, it is worth noting that it is the parent company that benefits in terms of inflows from two of the company’s IPO objectives, namely, repayment of loans and payments for development rights.In aggregate and percentage terms this works out to around Rs.362 crore and 40 per cent of the...

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Central Bank of India - IPO

MAX. ISSUE SIZE (Rs) : 816 croresPRICE BAND (Rs) : 85 - 105ISSUE OPENS/CLOSES : 24th July 2007 to 27th July, 2007LISTING : NSE, BSE.Sorabji Pochkanawala, the pioneer of Indian banking was one of the founder fathers of this bank. Sadly, his legacy does not seem to have inspired this bank in more recent times. Possibly the last to benefit from the ‘great Indian PSU banking trick’ of extinguishing accumulated losses against capital, Central Bank wrote off approximately Rs.680 crore of accumulated losses against capital in March 2002. What’s more,...

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Market Ended Weak

Market ended weak amid volatile trade on one day ahead of expiry. Sensex was down by 96 points at 15699, which swung 200 points during the day. Nifty was down by 32 points at 4588 and swung 65 points during the day. CNX Midcap, BSE Small-cap indices were down by 1.2% each. ITC was the stock of the day, which was up 9% on brokerage reports of re-rating. Cement stocks fall on MRTPC notice. Major losers were, ACC, down 4.5% and Ambuja Cement, down 4.1%. BSE Realty index was down by 2.9% while BSE Capital Goods index was down by 2.5%. BSE Auto index...

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Market snaps five-day rally

The market remained weak throughout the day’s trade, as correction set in after five straight days of rally. Weakness in global markets and unwinding of positions in derivatives ahead the expiry of July 2007 derivatives contracts tomorrow, 26 July 2007, played spoilsport. Volatility was high, which is likely to intensify tomorrow.Stocks from cement, real estate, auto, IT sector came under intense selling pressure. However buying was seen in FMCG, oil & gas and consumer durable stocks.Though most Asian and European markets were subdued to weak,...

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Broker's Recomendations

SAGAR CEMENTSRecommendation: BuyCurrent market price: Rs 161.90Target price: Rs 192Upside (%): 18.50Broking firm: ULJK SecuritiesSagar Cements, a small-cap cement company, manufactures clinker and ordinary Portland cement, which is marketed under the Sagar Priya brand. It has three plants in Andhra Pradesh. The company has planned a capex of Rs 300 crore, which would be part financed by a debt of $ 19 million sourced from the World Bank.This expansion will help the company to increase its clinker capacity from 0.65 tonne to 2.5 tonne in order to...

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Will Sensex cover 150 pts in 3 days to create HISTORY?

Sensex covered fastest 1000 mark in 16 days to reach 4K from 3K. The rally was majorliy bolstered by Harshad Mehta machinations and liberal export-import policies. Today is 12th day since Sensex hit 15000. So the question remains - will we cover remaining 150 points in next 3 days to create HISTORY?2007-07-24 16:58 Sensex covered fastest 1000 mark in 16 days to reach 4K from 3K. The rally was majorliy bolstered by Harshad Mehta machinations and liberal export-import policies. Today is 12th day since Sensex hit 15000. So the question remains - will...

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Markets @ lifetime closing highs

The market kept on surging as the day progressed, except for the odd hiccup in initial trade, which was due to weak global cues. Strong buying interest propelled the key indices to all time highs, with Sensex closing above the 15,700 mark and the Nifty above the 4,600 level.Shares from the auto, real estate, capital goods sectors were at the forefront of today's rally. However, shares from the pharma pack saw some profit booking. Asian and European markets were trading on a mixed note.The BSE 30-share Sensex surged 166.65 points or 1.07% to 15,732.20,...

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Investing in mutual funds? A checklist

I am a 42-year old government servant. I have an investment pool of Rs 650,000 in my provident fund and investments worth Rs 218,000 spread across 20 mutual funds. Unfortunately, about 40 per cent of this was invested just before market crash in May 2006. After that, I chose the SIP route for investments. I have opted for the dividend option to meet a portion of my annual expenditure. I would like to purchase a house in Hyderabad before retirement and wish to set aside money for my two children's education. I am willing to stay invested for the...

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IPO - "IVR Prime Urban Developers": Avoid

Investors can avoid the initial public offer of IVR Prime Urban Developers for now, given the steep asking price and the company’s limited track record as a developer.Though the company’ proposed projects may translate into higher earnings over a period, most of them are at a nascent stage, making for low earnings visibility.The price band of the IPO is Rs 510-600. The company’s earnings per share for 2006-07 stood at Rs 4.1 (on the pre-IPO equity base).Also, certain transactions suggest a conflict of interest with the parent. However, the backing...

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RECOMMENDATIONS FOR 23 July 2007

BSE SENSEXConsider 15591 as trend decider. Down sup.15499-15433-15341 Up Res.15658-15749. Buy near to stop loss levels, because market looks to set for CORRECTION. REDINGTON :Buy stop loss 272 Target 294-311. TISCO :Buy stop loss 705 Target 729-742. BONGAIGAON REFINERY:Buy stop loss 51 Target 56-57. ASAHI INDIA:Buy stop loss 105 Target 111-113. EXIDE:Buy stop loss 52 Target 58-62. EICHER MOTOR:Buy stop loss 367 Target 396-421. SHASUN CHEMICALS:Buy stop loss 130 Target 140-146. BALAJI TELE:Buy stop loss 266 Target 279-286. EASTERN SILK:Buy stop...

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TCS vs INFOSYS

Over the last three years, I have often said that, to my mind, and sooner rather than later, it is TCS that will outrun Infy as the premier Indian IT company at the bourses, notwithstanding the media fixation with the former. The addition of the words ‘at the bourses’ in the opening paragraph is particularly significant as there is no dearth of IT professionals I know, who rate TCS ahead of Infosys.Agreed, these are mere opinions, but with the latest...

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Is it time to sell your investments?

Now that the Sensex has scaled 15000, an absolutely new psychological barrier, the question running in everyone’s mind is whether to stay put or rush for the door. In one of my previous articles, we analyzed several reasons for selling stocks. This article attempts to address reasons for selling your mutual fund schemes.Before you consider exiting your mutual fund investment/s, one of the important questions to ask yourself is the reason for buying this particular scheme. I am sure there might be several reasons but for most people it is “High...

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Tata Teleservices (maharashtra) - BUY

Tata Tele (TTML) is a listed subsidiary of unlisted Tata Teleservices Ltd which has pan-India operations. The company provides fixed line, CDMA-based mobile and fixed wireless services in Mumbai and Maharashtra. TTML has efficiently managed to reduce its earlier losses, with strong improvement in EBIDTA margins in past few quarters during FY07. The company posted a Cash Profit of Rs 131 crore for FY07 against Cash Loss of Rs 21 crore in FY06. The ARPU during Q4 FY07 in mobile business stood at Rs 440, while the cost per subscriber was at Rs 340,...

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