KEC Int - KEC forays into water business; Wins first order worth Rs 31 crore

Published on Fri, Apr 08, 2011 at 15:47   |  Source : Moneycontrol.com


KEC International Ltd has informed BSE regarding a Press Release dated April 07, 2011 titled "KEC forays into Water business; Wins first order worth Rs. 31 crore."Source : BSE

Buy Biocon; target of Rs 390: IIFL

IIFL is bullish on Biocon and has recommended buy rating on the stock with a target of Rs 390 in its April 8, 2011 research report.

“Biocon (On the daily chart ) has formed a rounding bottom pattern. After a three month consolidation period the stock has now turned bullish. A move above 100-DMA and 200-DMA in yesterday’s session accompanied by higher-than-average volumes suggests an uptrend. Since rounded bottom formation occurs at the end of downtrend, this suggests the stock is ready for an upmove. The daily momentum indicators suggest a positive divergence. We expect the stock to touch Rs 390 in the near term. Traders are advised to buy the stock above Rs 377 with stop loss of Rs 372 for target of Rs 390,” says IIFL research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sell Welspun Corp; target of Rs 185/180: Aditya Birla Money

Aditya Birla Money is bearish on Welspun Corp and has recommended sell rating on the stock with a target of Rs 185/180 in its March 8, 2011 research report.

"Welspun Corp has been trading mixed holding below the resistance level of Rs 210 over the last one week. The 14-day RSI and Stochastic (14/3/3) are moving sideways near the overbought territory and are exhibiting potential negative divergence. Also the said resistance is formed by the confluence of Fibonacci retracement, 200-day EMA and 200-week EMA. This coupled with negative divergence on daily indicators indicates that prices could see a downside correction in the near-term, however, a break below the support at Rs 201.45 is required to confirm the same and turn the sentiments weak towards Rs 192 and lower subsequently. Until then the sentiment would remain mixed and finds stiff resistance near Rs 210/212 levels on any gains."

"Sell Welspun Corp initially below Rs 201.40 and then on any rise to Rs 204 with a target of Rs 185/180 and a closing stop of Rs 210,” says Aditya Birla Money research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

News

Economy News
Food inflation fell to a four-month low of 9.18% for the week ended
March 26 from 9.5% in the previous week and 21.15% a year ago (ET).

The finance ministry has said that it is holding consultations with the RBI
and will approve the draft guidelines for granting new banking licences
within 15 to 20 days (ET).

India has asked Switzerland to expeditiously ratify the amended double
taxation avoidance agreement (DTAA) to facilitate exchange of
information on funds parked in Swiss banks by Indian nationals (ET).

Nifty--- 08042011

The Nifty opened on a positive note but soon started to slip forming lower tops and lower bottoms. On the hourly charts the Nifty has broken down the bearish head-andshoulders pattern and is now targetting 5787 with reversal placed at 5930. The Nifty is finding resistance around 5940 from the trendline drawn from the high of 6335 and lower top of 6181, which now remains a key hurdle going forward. On the daily as well as hourly charts the Nifty has taken off the trendline drawn from the previous two peaks which was placed at the 5620 area, which should now act as the strongest support in any short-term correction.

On the hourly charts, the momentum indicator is in sell mode and is trading below the zero line. The Nifty is trading below its 20-hourly moving average (HMA) and its 40-HMA, ie 5889 and 5871 respectively. The market breadth is negative with 349 advances and 1,036 declines.

Hold NTPC; target of Rs 216: PINC Research

http://www.moneycontrol.com/news_html_files/news_attachment/2011/NTPC_PINC_070411.pdfPublished on Fri, Apr 08, 2011 at 10:13   |  Updated at Fri, Apr 08, 2011 at 11:20   |  Source : Moneycontrol.com

PINC Research has recommended hold rating on NTPC with a target of Rs 216, in its April 7, 2011 research report.

“NTPC grossed up its RoE by corporate tax rate against MAT during 9M FY11, thus translating into 18% and 16% improvement in average realisation for Q4FY11 and FY11 to Rs 2.50/unit and Rs 2.44/unit respectively. This aided 17% and 24% YoY growth in Q4FY11 revenues and PAT to Rs 145 billion and Rs 25 billion respectively. Although NTPC’s PLF contracted to 88.3% during FY11 from 90.9% in the corresponding period last year, its PAF improved marginally to 91.6% from 91.4% last year.”

“During FY11 NTPC commissioned 2,490MW against its revised target of 3,150MW – in line with CEA’s estimate. During Q4FY11 the company commercialised 500MW each at Jhajjar and Korba, commissioned 500MW each at Farakka and Simhadri and synchronized 660MW at Sipat. With the commissioning of these projects, NTPC’s installed capacity increased to 34.2GW. NTPC plans to add 4,320MW during FY12. Contrary to NTPC’s target addition of 4,320MW during FY12, CEA’s latest document suggests NTPC shall be able to add only 3,000MW. NTPC plans to commission 1,320MW at Sipat, 1,000MW each at Jhajjar and Vallur and 500MW each at Simhadri and Mouda during the year. As of now we factor in an addition of 4,320MW, in line with the company’s target. NTPC currently has 14.7GW under construction which is expected to commission during the XIIth Plan.”

“With NTPC missing its capacity addition target yet again in FY11, we remain skeptical on its capacity addition plan for FY12. However, we continue to build in its targeted addition for the year and will review it when the audited results will be declared in May. Despite this, we believe it offers better safety and steady returns vis-à-vis its private IPPs like JSW Energy. NTPC has tied up 100GW under long term PPAs thus providing steady returns. At the current price, NTPC trades at 2.2x FY12E book. We value the stock at 2.1x FY13E book to arrive at our target price of Rs 216, maintain HOLD,” says PINC Research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.