Dec 9 News Round up

Im bearish on the markets, A good  healthy correction is  happening which I mentioned last week. Risky traders can buy Anuh Pharma Above 326 tomorrow with a target of 342-350-361.

Can buy L&T Futures for short term. Target 40+

Sebi has allowed analyst till may, so i will continue recommending with targets.

News Round-up:
*India may at worst correct 5-10%, PSU banks good: Geosphere
*Year 2015 will be goldilocks period for India: Nomura
*Indian rupee to outperform Asian peers in 2015: HSBC
*Mkt looks well supported for 3-5 yrs; overweight on banks: Axis Cap
*Mkt read a lot into Infosys owners stake sale: Phillip Cap

*PMs shouldn't go abroad for entertainment value: Kejriwal
*CITU-led union threatens strike as govt likely to introduce coal bill tomorrow
*Clear understanding between partners key to success of JV, says Venu Srinivasan
*Case registered against Uber driver for forging certificates, says Bassi
*Uber, Ola, TaxiForSure continue to operate in Delhi despite ban
*Maha Assembly adjourned twice amid ruckus by Cong, NCP
*Swamy says PMK should also quit NDA-alliance
*Efforts on to resolve EU ban on import of Indian mangoes: Govt
*India's current account deficit not alarming: Jaitley
*Fin Min declines to share details on black money probe

*Cairn, ONGC slump; Macquarie cuts target on oil price fall
*Asian stocks drop; Shanghai sinks in volatile trading
*Carlyle buys Newgen KnowledgeWorks for Rs $33 mn
*New Call Telecom buys WaveCrest

*No NPA accounts, all delayed payments made: Diamond Power
*Pune, Chennai lead Naukri's hiring index nos
*India Cements proposes fund raising of Rs 500 cr to re-finance debt
*Bosch concludes wage settlement in Bengaluru plant
*Marans capable of funding SpiceJet deficiencies: Ajay Singh
*See Sun-Ranbaxy divesting 7 brands by Mar: Surajit Pal
*CCI rider likely to have insignificant impact on Sun-Ranbaxy
*IRB receives shareholder approval to raise Rs1,500cr
*Cisco, IL&FS Tech to jointly develop digital solutions for smart cities
*Expect 12-13% growth in auto industry by FY15-end: SIAM
*Sensex tanks 322 pts, Nifty ends at 8341; midcaps & metals bleed
*Password, SMS stealing virus hits Android phones
*SAT to hear DLF plea against Sebi order on Wed
*HCL Technologies signs 30-month contract with Washington Gas

[09/12 16:44] ‪+91 98694 75700‬: Cabinet clear 5 % stake sale in pfc & rec ltd.
[09/12 16:44] ‪+91 98694 75700‬: SAT adjourns appeal over regulator for MF distributors

Metal shares under pressure; CNX Metal index down 3%

Sensex, Nifty down 1%; ONGC loses over 4%

Delivery volumes up in 2014 as markets rise

ONGC hits seven-month low

Sensex drops over 200 points; Nifty tanks below 8,400

SPML Infra hits 52-week high on new orders, fund raising plan

Gold futures surge by 0.6% on global cues

Cairn India slips after Macquarie downgrades the stock

FDI in Insurance: Max India gains 4%

Sun Pharma, Ranbaxy gain on CCI approval of merger

Equity MF units worth Rs 6,000 crore redeemed in November

India's current account deficit not alarming: Jaitley

Indian rupee to outperform Asian peers in 2015: HSBC

Fin Min declines to share details on black money probe

Company registrations decline by half in Apr-Aug 2014

Carlyle buys Newgen KnowledgeWorks for Rs $33 mn

CCI rider likely to have insignificant impact on Sun Pharma-Ranbaxy

India Cements proposes fund raising of Rs 500 cr to re-finance debt

Bosch concludes wage settlement in Bengaluru plant

Uber, Ola, TaxiForSure continue to operate in Delhi despite ban

Domestic car sales up 9.5% in November
[09/12 17:06] ‪+91 98694 75700‬: 9-Dec:
*Stk OI chg: (by highest %)
-Fresh Longs:  DRRD, HCLT, MM, UBBL, TECHM.
-Fresh Shorts: BPCL, CESC, EIM, ACC, BHARTI, JUST, ITC, NTPC, TATA, TPWR, HDIL.
-Short Cover:  HAVL, NMDC, IOCL, HPCL, RBXY, MTCL, SUNP, DIVI, EXID, GMRI.
-Long u/w's:   SUNTV, SHTF, HZ, INFO, LICHF, ALBK, IDEA, DITV, SAIL, CLGT, BIOS

*Top OI Gainers:
BPCL(+19%, -2.4%), CESC(+15%, -4.2%), EIM(+12.7%, -4%), ACC(+10.4%, -3%), BHART(+7.5%, -4.3%), JUST(+7.4%, -4.3%), ITC(+6.7%, -0.8%)

*Top OI Losers:
HAVL(-17%, +3.4%), SUNTV(-8.6%, -2.6%), SHTF(-5.5%, -2.8%), HZ(-5.3%, -2.7%), NMDC(-4.7%, +0.1%), INFO(-4.7%, -0.5%), IOCL(-4.5%, +1.1%)

*Nifty fut OI +9.54lk shs(+4.2%); Prem +53 vs 52
*BkNifty OI -1.41lk shs(-6.5%)
*IndiaVix @ 12.50 (+2.4%); ATM IVs @ 12.1% vs 11.5%
*Nifty Dec Opt OI Chg: in lks:
8000PE:-3.11
8100PE:+4.47
8200PE:+4.27
8300PE:+8.48
8500PE:-9.12

8800CE:-4.48
8700CE:-4.20
8300CE:+3.06
8400CE:+10.36
8500CE:+12.34
*Highest OI @ 8400PE:54.47 & 8500CE:60.98
[09/12 17:06] ‪+91 98694 75700‬: Changes in Open Interest(OI) : 9th DECEMBER 2014

Nifty Spot : 8340.70 (- 1.16%)
Bank Nifty Fut : 18404.35 (- 1.13%)
INDIA VIX : 12.4950 (+ 2.36%)
PCR : 0.93
Premium : 53 VS 52
Nifty Fut OI : + 9.54L shs (+ 4.18%)
Bank Nifty Fut OI : - 1.41L shs (- 6.54%)

Major Changes in Nifty December Options OI :
Calls :
8300 : + 3.06L(11.81L)
8400 : +10.36L(23.85L)
8500 : +12.34L(60.98L)
8600 : - 2.13L(60.82L)
8700 : - 4.20L(56.02L)
8800 : - 4.48L(40.38L)
8900 : - 2.65L(11.27L)

Puts :
8000 : - 3.11L(31.65L)
8100 : + 4.47L(31.65L)
8200 : + 4.27L(32.86L)
8300 : + 8.48L(51.69L)
8400 : - 2.98L(54.47L)
8500 : - 9.12L(38.85L)
8600 : - 4.72L(15.46L)
8700 : - 2.69L( 5.10L)

Highest OI Nifty : Calls 8500 : 60.98L - Puts 8400 : 54.47L

Highest OI Bank Nifty : Calls 19000 : 7.39L - Puts 18000 : 6.17L

Change in Stock OI :

Long Buildup : AMTK, DRRD, HCLT, MM, UBBL

Short Buildup : BPCL, CESC, EIM, ACC, BHART, JUST, ITC, NTPC, TATA, TPWR, HDIL, LT, HDFC, BJAUT, WPRO, HMCL, HUVR, ARVND, ICEM, TTMT, BOI

Short Covering : NMDC, IOCL, HPCL, RBXY, MTCL, SUNP, EXID

Long Unwinding : SUNTV, SHTF, HZ, IHFL, INFO, LICHF, ALBK, IDEA, DITV, SAIL, CLGT, BIOS, UNBK, AXSB, MRF, PLNG, PNB, JSP
[09/12 18:31] ‪+91 98694 75700‬: News Round-up: 

*India may at worst correct 5-10%, PSU banks good: Geosphere
*Year 2015 will be goldilocks period for India: Nomura
*Indian rupee to outperform Asian peers in 2015: HSBC
*Mkt looks well supported for 3-5 yrs; overweight on banks: Axis Cap
*Mkt read a lot into Infosys owners stake sale: Phillip Cap

*PMs shouldn't go abroad for entertainment value: Kejriwal
*CITU-led union threatens strike as govt likely to introduce coal bill tomorrow
*Clear understanding between partners key to success of JV, says Venu Srinivasan
*Case registered against Uber driver for forging certificates, says Bassi
*Uber, Ola, TaxiForSure continue to operate in Delhi despite ban
*Maha Assembly adjourned twice amid ruckus by Cong, NCP
*Swamy says PMK should also quit NDA-alliance
*Efforts on to resolve EU ban on import of Indian mangoes: Govt
*India's current account deficit not alarming: Jaitley
*Fin Min declines to share details on black money probe

*Cairn, ONGC slump; Macquarie cuts target on oil price fall
*Asian stocks drop; Shanghai sinks in volatile trading
*Carlyle buys Newgen KnowledgeWorks for Rs $33 mn
*New Call Telecom buys WaveCrest

[09/12 18:31] ‪+91 98694 75700‬: Japan Ratings May be Cut by Fitch :
Ratings watch negative follows
Japanese government’s decision to delay consumption tax increase until April 2017..
  * Fitch believes delay implies impossibility to achieve government’s previously-stated plan to cut primary budget deficit to 3.3% of GDP by fiscal year April 2015-March 2016
  * Fitch will resolve ratings watch negative during 1H 2015
  * A+ long-term foreign and local currency issuer default
    ratings on rating watch negative
  * F1+ short-term IDR also placed on rating watch negative
  * Country ceiling affirmed at AA+
(Bloomberg)

Positional + futures 8 December

Cash -

Can buy Kolte Patil Above 199, it may test 220.

Can buy Jindal Poly films Above 305. It will test 315+

Can buy  Gsfc above 107.  -  It may test 115

Can buy  SPML Infra - They got a new order worth 275cr.
 ( 9 dec - BOOK PROFITS# 87-102 IN A DAY) 

9th dec

Can try prima plastics for intraday. sell after 10-12% profit.
( Booked profit 58-63)

Futures
Can buy Maruti 1325+ It may test 1370__ 1390

Can short sell Lic Housing @ 435, more at 440 ( Risky) 
9 dec ( Safe traders book profit at 434 )

9 Dec -Can buy GAIL. BTST 

Capital Market - The week ahead

Capital market's market outlook:Trend in global markets, wholesale and consume' price inflation data for November 2014 and industrial output data for October 2014, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar, and crude oil price movement will dictate near term trend on the bourses.

Among macro-economic data, the government will unveil industrial production data for October 2014 on Friday, 12 December 2014. Industrial production growth improved to 2.5% in September 2014, from a revised 0.5% growth in August 2014.The government will release annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India for November 2014 on Friday, 12 December 2014.

 CPI for urban and rural India eased to 5.52% in October 2014, from 6.46% in September 2014.The government will release the inflation data based on wholesale price index (WPI) for November 201, on Monday, 15 December 2014. WPI eased to 127% in October from 2.38% in September 2014.

Investors' focus will remain on further policy announcements, if any, by the government. The Indian government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the winter session of parliament which began on 24 November 2014. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament.

State run oil marketing companies (PSU OMCs) will review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.

On global front, on Monday, 8 December 2014, Asian stocks will react to the influential US non-farm payrolls report for November, which will be out in the US on Friday, 5 December 2014. Weekly jobless claims data in US will be announced on Thursday, u December 2014, to show the number of individuals who filed for unemployment insurance for the first time.

Data on retail sales in November will also be announced on Thursday,  December 2014, which measure the total receipts at stores that sell merchandise and related services to final consumers. The University of Michigan's Consumer Survey will show preliminary estimates of consumer sentiment for the month of December on Friday, 12 December 2014.

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As per new sebi regulations, I will not be posting any given targets or time frame until there is further clarification.  Everything mentioned on this blog is a stock Idea and solely for education purposes. 

PLEASE DO NOT ALLOCATE MORE THEN 5% IN THE ONCE STOCK. 


Sometimes people who want more than they can handle end up losing everything altogether. Greed and selfishness will get you nowhere in Life.

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Cash -

Can buy Kolte Patil Above 199, it may test 220.

Can buy Jindal Poly films Above 305. It will test 315+

Can buy Gsfc Above 107 -  It may test 115

Can buy  SPML Infra - They got a new order worth 275cr.


Futures -

Can short sell Lic Housing  ( Risky)

R SYSTEMS - Strong performance ( Potential Multibgger )

Stock Ideas -  R Systems International: High Dividends, Strong performance






R Systems, founded in 1993, is a specialised IT and ITeS solutions provider, spanning five verticals which include telecom & digital media, banking & finance, healthcare services, manufacturing & logistics and government services. It serves customers worldwide using a global delivery model, 2,500+ expert associates and multi-language support capability. It has the industry’s highest quality certifications and standards, including SEI CMMI Level 5, PCMM Level 5, ISO 27001:2005 and ISO 9001:2008.

R Systems is a strong player providing software solutions for the banking & finance sector under the brand name Indus Solutions. According to the company’s annual report, “One of the leading Swiss banks offering a wide range of products including loans, leasing, credit cards and savings products has selected R Systems to implement a project to upgrade its key front-end applications.”





For the quarter ended September 2014, R Systems’ quarterly revenues were Rs79.65 crore (Rs73.41 crore), up 8.5%, and its quarterly profits were Rs26.42 crore (Rs12.73 crore), up 107.54%. For the year ended December 2013, R Systems’ annual revenues were Rs269.80 crore (Rs228.93 crore), a rise of 17.85%, and its annual profits were Rs36.55 crore (Rs20.53 crore), a stupendous jump of 78.03%.

The promoters of the company hold 50.59% shares and 49.41% is with retail investors and the general public. R Systems is a small company that has not yet appeared on the radar of domestic fund managers and institutional investors.

The board members of R Systems have excellent academic backgrounds. Satinder Singh Rekhi, who is the managing director, founded R Systems in 1993. He graduated with a BTech degree from IIT, Kharagpur, and has a MBA from California State University, Sacramento. Over the past five quarters, the average growth in revenues of R Systems was 19% and the average growth in operating profit was 117%. The average operating margin is a healthy 24%. The return on net worth was 19% and return on capital employed was 27%.





R Systems distributed dividend of 235% for January-December 2014. For the two previous financial years, the dividends distributed were 205% and 235%, respectively. On 26 February 2014, there was a stock split—from Rs10 to Re1. The book value is Rs14.66. Valuation is reasonable. Its market-capitalisation is 2.21 times sales and 9.03 times operating profit.

From a 52-week low of Rs32.11 on 6 November 2013, the share price had risen to a 52-week high of Rs68  on 24 December 2014. The share was trading at around Rs68  on 7th December  2014 and is an attractive buy for the long term at this price.

Postional /Future Calls for 05.12.2014

Cash Market

Kopran @ 62.65 |  Target : 65-69-72 | SL 58( SL hit )
Pipavav defence @ 38  |  Target 39-42-45 + ( went on uc, booked at 45-47)

Commodities:

N-gas- Buy @ 229 & add More 227 More. TARGET 256 until Tuesday.
( Booked at 232.5)



Futures: 

ARVIND-MILL  Above 298 SL 291 Target  305 - 312 ( SL HIT)

Postional + Futures for 03.12.2014

Cash Short term Calls :

Tata Elxsi @ 624 |   Target:650-670-700| SL 590

Excel Industries @ 390 | Target: 407-460-480| SL 380

Futures  Calls :

Ranbaxy, is over sold. Can gain 10+ tomorrow 

Ill update further in the morning 

Ive book tvs motors profit and Canara Bank.

Bank of India - Above 292 Target 320___350 ( Short term ) 
----------------------------------------------------
04.12.2014
 9:33 am
Buy Sanghvi forging fastttttttttt. Big order coming in for them. ( booked profit at 53 - 17% gain intraday)
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Can buy mindtek for short term to medium term target of 90.

Mcleod Russel - The world's largest producer of Tea ( Stock Analysis )

India wakes up with tea every morning. It is the drink that enlivens, energises and rejuvenates the mind and the body. It is the drink that binds people across cultures. This is why Eveready has lined up a wide range of tea blends to match the needs of a diverse tea-drinking nation and the different "tea cultures" that are an integral part of the country’s socio-cultural fabric.








Eveready, the group Company of the largest bulk tea producer in the world, McLeod Russel India Limited,  A member of The Williamson Magor Group, markets and distributes packaged tea across the nation.
From the valleys of Assam to the hills of Darjeeling, our promise of bringing the freshness and strength to each cup of tea can be experienced in the brew of all our brands.
The superior quality is a result of meticulous process that involves skilled selection of tea leaves based on expertise in tea tasting and understanding of Consumer needs. Eveready today has offerings worthy of the name of Williamson and Magor as well as Eveready Industries India Ltd. - Eveready Premium Gold, Eveready Tez Premium, Eveready Tez Red  and Eveready Jaago. Brands, which satisfy the diverse moods of the tea drinker.






McLeod Russel India Ltd. is a Tea company having 53 Tea Estates in India (58 in Assam and 5 in West Bengal) and several other tea estates in Vietnam, Uganda and Rwanda. The company including its subsidiaries had produced 112.23 Million KG’s of Tea in FY 2014 and on a stand-alone basis the company had produced 87.1 million KG’s of Tea in FY 2014. Mcleod Russell (India) Ltd. happens to be one of the largest listed Tea companies in India.

Employee costs are the single largest cost component in a Tea business in India and makes up for nearly 1/3 of a company’s revenue. The number of employees’s are significant in Tea industry and usually companies enter into Labour agreements with respect to wages and are revised periodically. The company had mentioned in its annual report that wage revision is due in the State of Assam in January 2015 and on 1st April 2014 in West Bengal.  If the wages are raised significantly without corresponding increase in Tea prices (Due to global supply demand factors), it could have an adverse impact on the margin’s of the company.

In spite of various ups and downs in Tea prices in the past several years, the company has been able to maintain its EBITDA in the range of Rs. 300-330+ crores range. However increased finance costs seems to have eaten much into the profits of the company. The increase in finance costs is surprising given the fact that the Debt figures have been at near  stable levels for the past several years. The company continues to maintain comfortable debt to equity ratio. The dividend payout has been excellent so far.



The company is one of the largest exporters of black tea from India and it has consistently exported nearly 30% of its production in the past few years. This had helped the company capitalize on higher export realisations when the global tea markets are tight.

At current market capitalisation the stock is trading at a trailing around of  PE of 20,  Even assuming better profits for FY 2015, I find the current valuation to be fairly valued for an agricultural commodity company . The recent surge in tea prices along with bullish market mood , should keep up the momentum in the stock for sometime


McLeod Russel India Ltd. is a Tea company and is one of the largest producer and exporter of black tea in India . As the North Indian tea auction prices have moved closer to record levels and with the current stock market mood being bullish , the momentum have propped up the stock price . However for long-term investment the stock offers little valuation discount at current market price . This is certainly one of the best Tea companies to own.