Markets Today
Friday saw a huge upsurge in Indian markets. Nifty rose up 146 pts (3.46%) to 4360 pts and BSE also rose 3.67% to end up at 14564. This rise was due to ease in Inflation, fall in crude prices, unexpected rise in America GDP and some what due to derivative expiry a day before. This surge can at best be termed as a short term rally and is likely to continue only if oil prices cool off further.
Though, on Friday the crude prices again rose up and crude touched 118.56 $/barrel before retreating and close at 115.49 $/barrel. But U.S. market fell off sharply due to concerns over Hurricane Gustav and drop in personal income. Nasdaq fell 1.8% to close at 2367, Dow Jones also fell 1.5%.
Road Ahead
Market is expected to be range bound in near future to 10-15%. Market may see this rally continue subject to easing off crude but only for a short term. One cannot see a huge rally until it eases to 105$/barrel.
Also the most negative aspect in Indian Markets is the loss of interest of FII’s. FII’s net sell in equity markets in BSE and NSE since 1st Jan, 2008 is -69,222.12cr. Unless foreign institutional investor revives their interest in Indian markets road ahead is looking bleak.
Stocks for Long term investment
1. Scrip: - Hotel Leela.
Current market price- 31
Hotel Leela has four fully functional hotels all over India i.e. at Mumbai, Goa, Bangalore & Kerela.
It comes in a luxury Hotel segment. Its Bangalore property has been rated as one of the best business hotel.
It current market capital is 1200 crores with a PE ratio of 8 per share of face value of Rs.2/-.
The company is planing to double the capacity by 2010 and tripple by 2012 i.e 12 hotels in all..
Another key factor is the zooming land rates.
Development in economy and development in tourism will add to scrips hidden value.
So keeping the long term factor in mind one can accumulate this scrip at any rate within Rs.32/-.
I would keep a price target of Rs.150/- approx by the end of 2010
2. Unitech
CMP-158
Real estate prices have bear most of the brunt of the falling market. Now its has started consolidating a little. Given that it fallen 70% from its high of 546 on 2nd jan, it’s a stock to look out for in near future. One can pick it up for 6 mnts and its expected to touch 400.
Other stock to look out for are:-
DLF, Trigyn Technology
For Short Term:
1. Piramal Life Sciences
CMP- 168
It’s a stock to look out for short term period with target price of Rs 230.the current price of stock does not reflect the potential of the stock. We estimate it to be around 200-210 at this time around.
2. Larsen and Tubro
CMP:- 2593
Company has announced 1:1 bonus on its share of face value or Rs 2 on 25th May, 2008. The price of share is believed to rose to Rs3000 as the ex-date is announced and comes nearer. It’s a stock worth keeping for short time.
Other stocks to watch out are:-
Yes Bank
HDIL
DLF
Tata Steel
IDFC
IFCI
SBI
For futher queries and suggestions and other trading related work contact:
Head OfficeBuilding No.5,BN Block Market,Shalimar Bagh, Delhi-110088Phone No: 47031300, 47030001-47, 41530314-15Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com
Though, on Friday the crude prices again rose up and crude touched 118.56 $/barrel before retreating and close at 115.49 $/barrel. But U.S. market fell off sharply due to concerns over Hurricane Gustav and drop in personal income. Nasdaq fell 1.8% to close at 2367, Dow Jones also fell 1.5%.
Road Ahead
Market is expected to be range bound in near future to 10-15%. Market may see this rally continue subject to easing off crude but only for a short term. One cannot see a huge rally until it eases to 105$/barrel.
Also the most negative aspect in Indian Markets is the loss of interest of FII’s. FII’s net sell in equity markets in BSE and NSE since 1st Jan, 2008 is -69,222.12cr. Unless foreign institutional investor revives their interest in Indian markets road ahead is looking bleak.
Stocks for Long term investment
1. Scrip: - Hotel Leela.
Current market price- 31
Hotel Leela has four fully functional hotels all over India i.e. at Mumbai, Goa, Bangalore & Kerela.
It comes in a luxury Hotel segment. Its Bangalore property has been rated as one of the best business hotel.
It current market capital is 1200 crores with a PE ratio of 8 per share of face value of Rs.2/-.
The company is planing to double the capacity by 2010 and tripple by 2012 i.e 12 hotels in all..
Another key factor is the zooming land rates.
Development in economy and development in tourism will add to scrips hidden value.
So keeping the long term factor in mind one can accumulate this scrip at any rate within Rs.32/-.
I would keep a price target of Rs.150/- approx by the end of 2010
2. Unitech
CMP-158
Real estate prices have bear most of the brunt of the falling market. Now its has started consolidating a little. Given that it fallen 70% from its high of 546 on 2nd jan, it’s a stock to look out for in near future. One can pick it up for 6 mnts and its expected to touch 400.
Other stock to look out for are:-
DLF, Trigyn Technology
For Short Term:
1. Piramal Life Sciences
CMP- 168
It’s a stock to look out for short term period with target price of Rs 230.the current price of stock does not reflect the potential of the stock. We estimate it to be around 200-210 at this time around.
2. Larsen and Tubro
CMP:- 2593
Company has announced 1:1 bonus on its share of face value or Rs 2 on 25th May, 2008. The price of share is believed to rose to Rs3000 as the ex-date is announced and comes nearer. It’s a stock worth keeping for short time.
Other stocks to watch out are:-
Yes Bank
HDIL
DLF
Tata Steel
IDFC
IFCI
SBI
For futher queries and suggestions and other trading related work contact:
Head OfficeBuilding No.5,BN Block Market,Shalimar Bagh, Delhi-110088Phone No: 47031300, 47030001-47, 41530314-15Email : nikunjhelpdesk@nikunjonline.com
Website: nikunjonline.com
