|

It
was yet another listless session for the equities. Nifty failed to breakout on
either side as it traded between 5090 and 5135. Metals were sluggish from the
very beginning but heavyweights like Hero Honda, RIL and HDFC kept the indices
afloat. ITC, IDFC and cement counters also supported the indices. RIL was the
biggest gainer amongst the heavyweights as it gained almost 1.5% on improved
volumes. IT stocks were also under pressure and only TCS managed to close in
the positive territory amongst the heavyweights. Overall, most of the sectors
witnessed mixed trend with the exception of Cement. Finally, Nifty ended the
day at 5116, up almost 15 points.
In the short term, Nifty has clearly marked breakout
points at 5085 on the downside and 5140 on the upside. Above 5140 Nifty could
target 5220 in coming days. IDFC is again moving towards 166-167, the level
that has provided stiff resistance on past few occasions. Above 167 strong
breakout is expected that could take the stock higher to around 185-188.
Century Textiles is likely to target Rs 543-545 and the pattern breakout is
suggesting even higher levels of around 570-575. RIL is showing accumulation
pattern and is a strong buy on dips candidate. Short-term targets of around
1045-1050 are seen while positional trades could fetch much higher returns.
Others that look positive are McLeod Russell, DLF, Aban, APIL, Educomp and
Reliance Cap (above 818).

LOW RISK / LOW RETURN
NOTE : IN CASES WHERE CASH LEVELS ARE GIVEN, BUY/SELL FUTURES WHEN THE
CASH PRICE CROSSES THE BUY ABOVE/SELL BELOW LEVEL IN CASH
|
SCRIP |
STRATEGY |
STOP
LOSS |
TARGET
|
HOLDING
PERIOD |
ICICI
BANK CASH
|
SELL BELOW Rs.908 |
917.50 |
901/893 |
2-3 DAYS |
BHEL
CASH
|
BUY ABOVE Rs.2457 |
2419 |
2487/2520 |
6-7 DAYS |
BATA
CASH
|
BUY ABOVE Rs.244 |
- |
254/264 |
4-5 DAYS |

LOW RISK / HIGH RETURN
TIME FRAME – THREE to SIX MONTHS
JUBILIANT ORGANOSYS ( JOL)
Present Price – Rs.346.25
Projected Price – Rs.425
JOL has diversified businesses across
pharmaceutical and nutritional products, pharma
outsourcing services, industrial & agriculture chemicals and polymers. JOL
is well placed to address growth opportunities in each business segment.
Diversification, scale and vertical integration are JOL’s
key strengths.
The major growth driver is increased
traction in the contract manufacturing business through execution and signing
of new contracts, pick-up in radiopharmaceutical sales and disclosure on orderbook positions across the businesses.
JOL has a leadership position in
pyridine and its derivatives. The company has strong chemistry experience of
more than 25 years and offers a basket of 150 products, including various derivatives of
pyridine and picolines. In an effort to expand its
product offering, JOL acquired a 100% stake in Specialty Molecules in FY09 for
INR200mn. Speciality Molecule has a strong position
as the manufacturer of halogenated pyridine derivatives that uses the niche
technology of halogenation.
Jubilant’s acquisition of Hollister-Stier and Draxis has increased its presence in sterile injectables & non sterile products and has given it
entry into niche radiopharmaceutical segment.
Its CMO business of
Through diversification, we think JOL
has substantially de-risked its business model and seeded itself well for
growth opportunities across segments. Scale and vertical integration,
particularly in industrial chemicals and pyridines, have helped the company
attain cost Competitiveness.
JOL is a play on multiple themes:
On the technical front,
the chart pattern is looking very attractive and it can be bought at current
levels and at all declines.
|
FUTURES |
LTP |
S1 |
S2 |
S3 |
R1 |
R2 |
R3 |
STRATEGY |
|
NIFTY FUT |
5123 |
5089 |
5061 |
5035 |
5137 |
5161 |
5188 |
Buy above R1
|
|
BANK NIFTY |
9070 |
9019 |
8970 |
9166 |
9203 |
9245 |
Sell below S1
|
|
|
CNXIT |
5903 |
5880 |
5845 |
5810 |
5960 |
5995 |
6045 |
Trade both sides
|
|
Disclaimer: The recommendations made herein do not
constitute an offer to sell or a solicitation to buy any of the securities mentioned.
Readers using the information contained herein are solely responsible for
their actions. The information and views contained herein are believed to be
reliable but no responsibility or liability is accepted for errors of fact or
opinion. Editors may or may not have trading or investment positions in the
securities mentioned herein. |
