Indian stock market calls-Nitin Gupta(05/Aug/09)

Categorized | sensex

Tags | nifty, sensex

Indian stock market calls-Nitin Gupta(05/Aug/09)

Posted on 04 August 2009 by Admin

Current Topics

: Market Guru

Full Name : Nitin Gupta

Designation: Managing Director

Company Name: Gupta Consultancy Services

Experience in stock market: 9 years

Company Profile: Portfolio Management Services

Today’s Call

Day of profit Booking

Yesterday was the day of profit booking in Nifty. Traders have started booking profits since morning. Metals have made smart gains in the morning but they also can not escape the selling pressure in the end. Alothough some amount of buying had happened in some of the mid cap stocks. Nifty has ended the day 30 points lower at 4680. Today can be a crucial day for the market and we have to wait and watch whether nifty will take the support at 4650 or not.

Buy Icici Bank

ICICI Bank’s 1QFY10 PAT growth of 21% YoY was driven by strong treasury gains and a 19% YoY cut in operating costs. We have raised our EPS estimates for FY10 and FY11 by 1-2%. We value the bank’s subsidiaries at Rs 208 per share (post 20% holding company discount) based on our FY11 estimates. The stock trades at 1.6x FY11E ABV (adjusted for investment in subsidiaries and net NPAs). While the stock is fairly priced currently, we would recommend buying on every correction, considering (a) expected improvement in core performance in the coming years, (b) strongest capitalization amongst the large private banks, and (c) value unlocking potential from various other business ventures. I would advise all of you to stay long for a 2 days target of 809.

Buy Renuka Sugars

The main trigger is the demand-supply mismatch in the sugar sector in general, if you see; India has demand of 23 million tonne of sugar annually and the supply right now is only about 14 million tonne. So there is a mismatch of about 7-8 million tonne in the sugar sector right there. Also, the sugar prices are increasing and the cost of production of sugar is still the same, it costs about Rs 21/kg to produce sugar and right now it is selling at about Rs 25/kg and the prices are continuing to go higher. So this extra profit comes to the realization because the sugar prices going up also goes to the company. I maintain a buy on this stock with a price target of 220 plus in short term.
Buy Reliance capital

Your Ad Here

Reliance Capital’s (RCFTs) Q1FY10 results were below expectation in both revenue and profits. Revenue declined 2.9% YoY (v/s 9.7% YoY growth as expected) and PAT declined 56.0% YoY (v/s 0.8% decline as expected).Though overall results were disappointing in Q1FY10, RCFT is expected to report better number in the quarter ahead from Asset Management, Financing and Life Insurance. Listing or stake sale in Life Insurance also remains a potential trigger, going forward. I would recommend allof you to buy this stock at every dip with a 15 days target of 1020.

Technical Call

Buy Jp Hydro above 86 for a 2 days target of 96 plus. The stock has finall managed to broke its important resistance level 86 with huge volumes. I would recommend all of you to buy this stock in bulk with a stoploss of 83.

Nifty Levels

A gap down opening is expected in nifty. Nifty has important support level at 4650 and a important resistance level at 4700. I would advise all of you to stay long with a stoploss of 4640 in nifty.

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Disclaimer : These Recommendations are based on technical analysis and Personal observations. Due care has been taken while preparing these comments, no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations.

Disclosure : The calls made herein are for informational purposes and are not recommendations to any person to buy or sell any securities. The information is derived from sources that are deemed to be reliable but its accuracy and completeness are not guaranteed. The above calls are based on the theory of technical analysis. The author does not accept any liability for the use of this site. Readers of this site who buy or sell securities based on the information in this site are solely responsible for their actions.