Indian stock market calls-Nitin Gupta(29/june/09)

Categorized | sensex

Tags | nifty, sensex

Indian stock market calls-Nitin Gupta(29/june/09)

Posted on 28 June 2009 by Admin

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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 Calls

All my calls are on Fire

I have recommended it. On Friday the stock market surged sharply. Tcs which was recommended by me achieved its target of 404, Ifci was on fire moving up by 7 percent, Chambal and Nagarjuna are both up 3 percent each. JP hydro is preparing for the upmove of its life. Hold long to all the above mentioned positions except TCS and enjoy minting money with us.

Buy Sun Tv

Sun TV Network is currently trading at 26.2x its FY09 EPS of Rs 9.4, which is premium to its peer and deserve the premium valuation because of its unique business model (time slot model), highest operating margin as compared to its peers, strong balance sheet which has an cash position of Rs 400 crore. I believe company has a better placed than its peers because of its less dependent of advertising on national front and strong movie pipeline for FY10. Thus, I recommend a “BUY” on the stock with a target price of Rs 304, which represents a potential upside of 28%.

Buy Unitech

Unitech has raised the size of its second qualified institutional placement (QIP) size. The realty major has stepped up the ante in its fund raising drive on witnessing the response to its QIP announcement yesterday. It will now dilute 15% to raise USD 575 million. It was supposed to be an equity dilution of 8% to raise USD 275 million, which however gpt a response of almost of a billion dollars. Unitech has closed the book at USD 575 million in its fund raising bid — a 15% equity dilution that results in the promoter’s stake will fall down to about 43%.
Some of the investors took part in the issue include TPG, Halbis, Farallon, DE Shaw and Prudential. Some of them like Prudential and Halbis are back in the second QIP — they were present during the first QIP issue too.
Sources say the company is going to be using most of the proceeds to retire debt. As per its last disclosure, the debt stood at Rs 7,800 crore and in the Q2 of this fiscal, the company will look to reduce this to about Rs 3,500 crore. However, after the fact that other realty companies like Sobha had to withdraw their QIPs, it is definitely a positive move for the industry.
I would maintain a buy on Unitech at 84 for a price tgt of 102 in short term.

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Buy Nitco

This sleeping giants was on fire since last three days. Expect some good news in the budget. I would maintain a buy on this stock for a tgt of 78 very soon. Stay long.

Buy Ifci in truck load

IFCI has been a momentum leader in the last month or two. If you look at the last couple of weeks when the market corrected it has gone just sideways, it really did not fall. That is a pretty good sign and today it looks like the breakout is building up. Once it has past Rs 60 then you could say it is back into another move, another leg of whatever move it is making so quite a strong stock. Once past Rs 60, you have the corrections over and the next rally has begun in the stock. Even today it has gone to the upper end of the range so I think it is pretty much on the verge of starting that move. I would still maintain a buy with a price tgt of 67 and 71

Buy Federal and Indusind Bank

Federal Bank is Kerala based bank having a network of 617 branches and business size of INR 550 billion (FY09). The bank is targeting a business of INR 1000 billion by FY11. SME and retail account for 65% of the loan book resulting in higher yield on loans. The bank had raised INR 21 billion via rights issue in FY08. Currently, Federal Bank is trading at 0.9x FY10 and 0.8x FY11 ABV. We have a target price of Rs 320 (1x FY11 ABV) and Buy recommendation on the stock. Indusind bank has given a technical breakout at 88. I would advise you all to buy this stock for a price tgt of 112.

Levels For Nifty

Nifty has given a sharp upmove on Friday. I would advise all our clients to stay long for a tgt of 4450 and 4500 with a stoploss of 4320

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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.