17 Feb 2010 Morning Updates

17 Feb 2010  08:50
Today all Asian markets are trading on higher side.Offcourse our market will continue yesterday's rally.Those who have bought Nifty Future above 4835 can book profits around 4920 to 4950 levels.It is advisable to trail stopswith upward rally.Nifty has a resistance at 4950 levels.One can watch Bank Nifty and switch long positions there cautiously.
Asian Markets :
Hang Seng : +375.36 (20644.05)
Nikkei : +210.37 (10244.62)
Recommendations :
Hold Nifty Fut Target 4895
Buy Banknifty Abv 8415
Hold Abb sl 797 Target 807
Hold Bhel sl 2365 Target
Buy Hindalco sl 143 Target 149
Buy Idea sl 58 Target 60
Buy M&M sl 1008 Target 1029
Buy Ranbaxy sl 432 Target 460 (Positional)
Buy Reliance sl 1009 Target 1040
Buy Tatamotors sl 694 Target 722
Buy Bankbaroda sl 565 Target 577
Buy Bharatforg sl 253 Target 260
Buy Cumminsind sl 460 Target 468 (Positional)
Conditional :
Buy Axisbank Abv 1031 sl 1026 Target 1041


Buy Hindunilvr Abv 238 sl 235 Target 242
Buy Maruti Abv 1366 sl 1356 Target 1384
Buy Rcom Abv 169 sl 166 Target 176
Buy Relcapital Abv 770 sl 759 Target 788
Buy Rpower Abv 143.50 sl 141.5 Target 146 / 149
Buy Sail Abv 210 sl 206 Target 214
Buy Suzlon Abv 74.5 sl 73.5 Target 76
Buy Tatasteel Abv 558 sl 550 Target 568
Buy Biocon Abv 265 sl 262 Target 269
Buy HDIL Abv 316.5 sl 312 Target 325
Buy LICHSGFIN Abv 759 sl 751 Target 768
Buy Jindalswhl Abv 1715 sl 1695 Target 1747
Buy Relmedia Abv 233 sl 230 Target 239


Buy ACC , TCS


Buy Gold above 1652


Sell Relinfra Below 1042 sl 1051 Target 1030


Sell IRB Below 250 sl 253.5 Target 245
Sell Jaicorpltd sl 264 Target 250


Tata Steel Result :
Tata Steel, the world's No. 8 steelmaker, posted its first consolidated quarterly profit in four quarters and said reviving global demand would further boost earnings in the three months to March.
Tata Steel Q3Activity at Corus, Europe's second-largest steelmaker, which contributes two-thirds of Tata Steel's total capacity of 30 million tonnes, has started to pick up as inventories have been run down around the world after struggling in the wake of the global downturn.

Consolidated net profit at Rs 472 crore versus Rs 814 crore (YoY)
Cons net sales at Rs 26,069 crore versus Rs 32,515 crore (YoY)
Cons other income at Rs 410 crore
Other operating income at Rs 133 crore
Cons turnover up on higher prices
Tata Steel Says :
Consolidated turnover up on higher prices
Some pressure from raw material suppliers to up price
Seeing some recovery in industrial activity in Europe
Europe sector recovering; construction weak
Product mix better, price higher, cost lower in October-December
Steel production at the Corus plant on Teesside will cease within a week; No Buyer found yet: exclusive
Mothballing of the Teesside Cast Products will begin on Friday

Tata Steel reported a net profit of Rs 472 crore ($101.9 million) in its fiscal third quarter ended December, compared with a consolidated net profit after minority interest and share of profit of associates of Rs 814 crore reported a year ago.
Consolidated net sales for October-December fell to Rs 26,069 crore from Rs 32,515 crore reported a year earlier.
A Reuters poll of brokerages had forecast a net profit of Rs 175 crore, on net sales of Rs 26,870 crore.
Consolidated operating margins were at 13% in the December quarter versus 9% a year earlier.
Stocks in News :
Bharti Airtel
Bharti plans USD 5 billion rights issue – TOIUS Markets :
Bharti Airtel Says:
Total payout in Zain Africa deal at USD 9 billion
Agreed with Zain Africa on break up fee of USD 150 million
Zain Africa has net debt of USD 1.7 billion
USD 9 billion Bharti payment including loan payable by operations company to Zain
Bharti-Zain Deal From Sources
Deal a smooth walk for Bharti as compared to MTN
Kharafi group in a hurry to conclude the deal
Kharafi stake in Zain may be sold to middle east buyer
Talks began post exclusivity ended with Vavasi group in January
EV reflects control premium & entry into EMs like Africa
Analysts not taking into A/c synergy due to lack of clarity
Deal expensive vis-a-vis MTN
Sudan out of transaction to prevent international objection to deal
Lyondell- Basell update:
Announces settlement of intercreditor dispute
Agreement clears path for Chapter 11 emergence
LB agreement setback for Reliance Industries
Texmo IPO (day 1 over)
Total subscription at 0.38 times (X)
QIB at 0.2X, NII at 0.92X, Retail at 0.414X
NSE adds 11 stocks in F&O from February 19
Adani enterprise, Apollo tyres, Areva T&D, BGR energy, Fortis healthcare, Godrej Ind, Jain Irrigation, Mc Leod Russel, Mundra Port, Onmobile global, Videocon
Bajaj Hindusthan says

May see sugar prices hardening by 10-15%
Problem in UP almost resolved
Do not foresee bumper crop in Brazil this year due to floods
Bumper crop in Brazil will not bring down prices
No point expanding given current scenario
Looking to retire all debt in next 18 months
Categorically deny being in talks with Balrampur Chini
Syndicate Bank - Exclusive From Sources
Syndicate Bank in talks with ING Vysya Life, DLF Pramerica
Syndicate Bank in talks with Metlife
Syndicate Bank in talks for 15-20% stake
Syndicate Bank already in talks with Bharti Axa Life
Syndicate Bank keen to buy stake in life insurance companies
Syndicate Bank:
To appoint consultant to evaluate proposals: Sources
Has to evaluate 3-4 proposals as per CVC Guidelines: Sources
Other stocks that are in news today:
SEBI agrees to change auction norm for REC FPO, to allow institutions lower bid – ET
Govt wants USD 2.7 million more from RIL as royalty, profit petroleum payments on gas from KG D6 – ET
Sources say govt to soon okay UP Mills' imported sugar sale outside UP
Centre rejects Adani application for coal mine in Tadoba
Wipro staffer guilty of fraud worth USD 4 million – ET
Abbott makes open offer for Solval Pharma India at Rs 3054.73/sh (CMP: 2854, ie 7% premium)
Tata Power inks deal with Korea East West Power to identify and execute operation and maintenance opportunities in power generation assets in Asia, the Middle-East and Africa.
Elder Pharma's Bulgarian arm commences operations
Golden Tobacco board approves MoU for the joint development of vila parle property
Man Infraconstrcution IPO opens tomorrow and REC floor price to be decided tomorrow
Ex-date of Jayshree Chemical 9:2 rights issue
No circuit filter of Chhattisgarh Industries
Market Cues :
FIIs were net buyers of USD 49.25 million and MFs were net sellers of Rs 299.7 crore in equities on February 15.

NSE F&O Open Int was up Rs 649 crore at Rs 1,18,205 crore.
As per provisional data of February 16 FIIs were net buyers of Rs 386 crore, while DIIs were net sellers of Rs 453 crore in cash markets. FIIs were net buyers of Rs 572 crore in F&O.
F&O Cues :
Futures Open Int up Rs 873 crore

Options Open Int down Rs 224 crore
Nifty Futures Open Int at 10-point premium
Nifty Open Int PCR at 1.09 versus 1.02
Nifty Puts add 19 lakh shares in Open Int
Nifty Calls shed 26 lakh shares in Open Int
Nifty 4900 Put adds 6 lakh shares in Open Int
Nifty 4800 Put adds 4 lakh shares in Open Int
Nifty 4800 Call sheds 12 lakh shares in Open Int
Nifty 4900 Call sheds 7.5 lakh shares in Open Int
Stock Futures add 0.8 crore shares in Open Int
FIIs in F&O on February 16
Net buy Rs 226 crore in Nifty Futures
Nifty Futures Open Int up 1700 contracts
Net buy Rs 344 crore in Nifty Options
Nifty Options Open Int down 10,944 contracts

On Wall Street stocks logged their best day in about 3 months. The Dow was up 170 pts, Nasdaq gained 31 pts and S&P 500 was up 19 pts at 1095. The dollar weakness boosted the commodity stocks. Energy stocks rallied as oil surged 4%. Gold surged 3%.

In earnings Kraft Foods report profit of 48 cents/sh, its revenue was higher by 3.2% at $11 billion. Kraft says Cadbury acquisition will help fuel long-term growth.
The Merck earnings is in line with estimates. Its revenue was at $10 bn versus $6 bn (YoY). Merck will cut 15,000 jobs in restructuring efforts. Obama pledges $8 bn to finance const of 2 new nuclear plants in Georgia.

Discalimer:This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by the recipient only as information. This document is not to be reported or copied or made available to others without prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein.Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Either iNTEGRITY or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.

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