18 Nov 2010 Daily Recommendations

18 Nov 2010 Morning Market Updates  08:52
Buy Axisbank sl 1427 Bounceback expected
Buy Bel Abv 1711 sl 1693 T 1729
Buy BEML sl 1082 Bounceback expected
Buy BRFL Abv 221 sl 217 T 227
Buy Cipla sl 336 T 344
Buy Colpal Abv 887 sl 881 T 894
Buy Educomp sl 548 T 561
Buy in dips IDFC sl 186
Buy Litl sl 63.5 T 66
Sell Nifty Fut Bel 5965 sl 6040 T 5855
Sell ACC Fut sl 1053 T 1032
Sell Albk sl 260 T 254
Sell Canbk Bel 772 sl 783 T 752 P
Sell Finantech sl 1068 T 1030
Hold Short Hindunilvr sl 302 T 294
Sell on Rise Lupin
Sell Relinfra sl 1003 T 980
Sell Titan sl 3825 T 3735
Stocks that are in news today:

RPP Infra Projects IPO opens today; price band at Rs 68-75 (to raise Rs 44.2 – 48.75 crore)
Aurionpro Solutions Q2
Sales up at Rs 104.6 crore versus Rs 78.7 crore
PAT up at Rs 11.6 crore versus Rs 10.2 crore
Axis Bank announces acquisition of ENAM Institutional Broking biz
Axis Bank-ENAM deal to be all-stock deal
5.7 shares of Axis for 1 share of ENAM
ENAM deal to create a 100% subsidiary of Axis Bank
ENAM Sec brand to continue for 24-36 months
Jagdish Master to join board of new subsidiary
Manish Chokani will be CEO of new subsidiary
Vallabh Bhanshali says - CNBC-TV18 Exclusive
Rare to see kind of synergy tried to strike a win win deal
Not looking to cash out, Axis Bank is a fabulous investment
ENAM not comparable with commoditised players
Some of our consideration will be shared with our people
Deal is unprecedented in character
ENAM will not do life insurance distribution
Enam's AMC biz not a part of this deal
We will need SEBI, RBI & SE clearance
Total income from April 1-October 20 at Rs 182 crore
PBT from April 1-October 22 is at Rs 77 crore
Absolutely incorrect to call this deal an acquisition
Entire management of ENAM migrating to Axis
Regulators will decide statutory lock in period
5 years non-compete with Axis for all biz being transferred
ENAM Sec 100% owned by 4 families
Merging with Axis is zero overlapping of business
Anil Singhvi was advisor to the deal
Shikha Sharma says
Deal will be EPS accretive & not RoE dilutive
Not strategically looking at acquisitions
This transaction is a great strategic fit
Will have a very strong corporate banking franchise
We would expect to see better fee income
By paying in stock we make this deal market neutral
Would not have done a cash deal
A complete suite of solutions important in marketplace
ENAM saw benefit in being part of a larger banking franchise
We don't care if we are number one, two or three'
Axis board has approved setting up online broking platform
This transaction came to us; we have not sought any deal
Don't know if the industry as whole will manage 20% growth
Very difficult to build equity capital markets biz
JSW-Severfield JV opens Bellary unit
JV has so far invested over £25 million in the Bellary production lines
Will have an annual capacity of 35,000 tonnes of fabricated steel
The new plant will serve requirements of Severfield-Rowen’s production lines in Northern Yorkshire
The project is said to have been financed on a 2:1 debt-equity ratio
Project is expected to generate annual revenues of around Rs 400 crore
The target market will initially be commercial structures and simple highway bridges
Alert: Severfield-Rowen has four production facilities in the north of England and Ireland.
Alert: Severfield-Rowen has order book of £244 m with a 20-23 % share of the UK market as of August 2010
Reliance Communications says
Group had no shareholding in Swan Tele at time of license grant
Group had no shareholding in Swan Tele post license grant too
Swan Telecom is now Etisalat DB
Reliance Communications says
Never violated 10% crossholding norm
SC asks govt to explain Swan Telecom License
SKS stock dips by 11.55% on Tuesday on BSE;
Banks worried about repayment by MFIs;
Banks approach government;
Sources: ICICI, Andhra Bank, BNP Paribas have huge exposure to MFIs
Other stocks and sectors that are in news today:
Finance ministry for freeing urea prices
Securities in ban period: Core Project, Orchid Chem and Power Grid
Dr Reddy's gets tentative USFDA okay for Allegra-D generic
F&O cues:

Total Futures Open Int down Rs 1,961 crore
Total Options Open Int up by Rs 3,410 crore

Stock Futures net shed 3.36 cr shrs in Open Int
Nifty futures net add 4.1 lk shrs in Open Int
Nifty Futures down to 6 pts from 20 pts
Nifty Open Int PCR down to 1.05 versus 1.15
Nifty Puts shed 4 shrs, Calls add 57.7 lk shrs in Open Int
Nifty Nov 6100 Put shed 16 lk shrs in Open Int
Nifty Nov 6500 Call sheds 10.7 lk shrs in Open Int
Nifty Nov 6000 Put sheds 8.3 lk shrs in Open Int
Nifty Nov 6200 Put sheds 8.1 lk shrs in Open Int
Nifty Nov 6300 Put sheds 5.4 lk shrs in Open Int
Nifty Nov 6000 Call adds 27.8 lk shrs in Open Int
Nifty Nov 6200 Call adds 14.1 lk shrs in Open Int
FIIs in F&O on November 16
Net buy Rs 301 crore in Nifty futures
Nifty futures Open Int down 14,372 contracts
Net buy Rs 449.7 crore in Nifty options
Nifty options Open Int down 2,285 contracts
Net buy Rs 386 crore in Stock Futures
Stock futures Open Int down 7,342 contracts
Market cues:

US markets ended flat yesterday; down 1.5-2% on Tuesday
Ireland Debt Woes

European Commission, IMF, ECB to send team
Team will start work on Thursday
ENAM-Axis Bank Deal
Brokerage stocks in focus post deal
NSE F&O Open Int was up by Rs 1,449 crore at Rs 1.70 lakh crore
As per provisional data of November 16, FIIs were net sellers of Rs 197 crore; DIIs were net buyers of Rs 449.6 crore in cash markets. FIIs were net buyers of Rs 1,154 crore in F&O.
US Markets:
On Wall Street- stocks settled mixed after a listless session with a narrow range. Continued uncertainties with the global economy weighed on investors, ahead of General Motors listing. The issue has been priced at USD 33 a share.

Dow Jones Industrial Average was down 0.14% or 15.62 points at 11007.88. Nasdaq Composite was up 0.25% or 6.17 points at 2476.01. Standard & Poor's 500 was up 0.02% or 0.25 points at 1178.59.
In economic data, the consumer price index for October increased 0.2% after a 0.1% increase in the prior month. It had been expected to increase 0.3% month-over-month. Core consumer prices for were flat for the second month in a row.

In economic data expected later today, the initial jobless claims are expected to come at four hundred and forty five thousand. The Philadelphia Fed survey index for November is expected to come at 5.6. The reading for October rose to plus one point zero from minus zero point seven, the month before.
In the currency space- the dollar lost ground versus the euro as tepid US inflation data and weak housing starts supported the Federal Reserve's quantitative easing and provided a signal for investors to resume selling the greenback.
In commodities, oil prices slumped to a four-week low as worries persists that China would raise interest rates to cool down inflation, curbing demand from the world's biggest growth engine.