Friday, August 28, 2009

Market outlook for 28/08/09

The settlement trading yesterday of nifty shows that bullishness prevailed further though the reports of RBI/FM/Drought, etc. and nifty closed at 4688 +7 points. FII data, F&O data, option writings are all shows green going further. US markets bounced from red and today's Asian markets green, SGX is just flat to positive.

Now, technical indicators are bullish but for the breakout of resistance level of 4731 nifty and that may happen today. The target for nifty in this month is 300 positive points with intermediate corrections. All the corrections are up to 4500-4600 only. Happy new settlement to all. There may not be a major fall in this settlement please.

Yesterday I had mentioned if not crosses 4703 and below 4680 will take to 4648 level. Just see it kissed 4655 & taken U-turn to kiss Intraday high of 4712 level.

Now, What to expect ?

Two Consecutive close above 4754 will take to 4902-4952 level in hrs only.

Hurdles for Day Traders :4730-4754.(Keep strict stop of 4754 go short around 4735-4740 )

Support exist at 4668, If breaks this level with volumes then watch panic selling upto 4619-4596 level.

NIFTY Technicals:
Current Spot: 4688.20
Pivot: 4680.40
Supports: 4653 & 4618
Resistance: 4716 & 4743

Stock Idea for the Day
Buy Orchid Buy Above 124.5 tgt 127.5,130.8 sl 11`9.8
Buy Sterlite Buy Above 702.1 tgt 709,729 sl 689
Buy PFC Buy Above 242.1 tgt 245.5,249.5 sl 237.5
Buy ABB Buy Above 753.1 tgt 756,765 sl 747.8
Buy CESC Buy Above 360.1 tgt 365,368 sl 356
UNITECH Buy above 93.3 tgt 94.15, 95.6, 97.05, 97.95 sl 91.8.
IBREALEST Buy Above 273.5 tgt 276.35, 279.8, 283.3, 285.45 sl 266.8.

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

Positional Stock for Short Term Delivery
Stock : Puravankara Projects Ltd.
CMP : 126.05, Target 140, SL 121
The net debt to equity ratio at 0.58:1 and currently the company has dent of over 500 cr.

It also plans to launch high-end villa project in 26-acre parcel in Colombo and to launch 4 lakh-sq ft apartment/office complex in a downtown area.
Expansion plans
Subsidiary Provident Housing in talks to acquire land in Mumbai
Plans to enter mumbai in affordable housing projects
Set to revive Lankan foray, post-civil war

Land acquisition plans
In advanced talks to buy land
Estimates land acquisition cost at Rs1500 cr
Estimates construction financing at Rs6500 cr for first phase
Coimbatore 37 acres
Hyderabad 50 acres
Banglore 50 acres
Kochi 28 acres
Mysore 61 acres

QIP Plans
To raise Rs750 cr Via QIP
Equity dilution around 20% at CMP

Results for Q1FY10 (QoQ) cons
Net sales down 18% at Rs55.97 cr vs Rs67.92 cr
Operating profit down 6% at Rs10.24cr vs RS14.58 cr
OPM up 200 bps at 17% vs 15%
Net profit down 30% at Rs10.24 vs Rs14.58 cr

Reliance Industries

Reliance is a stock that rocks the nation, and more than 1 million investors rock with it. Despite RIL and RNRL row, it is the favorite of the day traders. Thus the time the stock remain above the level of 2015, one is likely to see the stock touching the levels of 2079-2129 and these figures will act as resistance to the stock. As a strategy one should go long only in the stock when it starts trading above 2100 levels.

Thanks & Regard

Market Pulse S&P Team


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