WINNING STROKES: THINK DIFFERENT:

Morning Call on Satyam Computers Ltd for the risk taking investors in the Paid Groups is giving good return to the investors. I have placed a target of Rs.225 in the next one month time frame. The management fooled everyone by coming up with an unnatural deal which tanked the stock of Satyam Computers Ltd, making way for the vested interest groups to pick up the stock at the price of penny.

All these talks of Satyam Computers Ltd not finding value in the IT business and moving to Infrastructure Sector have no meaning and is just a misnomer. An IT company buying an Infrastructure Company can happen at any time and it may or may not have any bearing with the present IT business of Satyam Computers. This is just too much nonsense which is being propogated by some vested interest groups in the market.

Satyam faced flak from investors for its decision yesterday to buy Maytas Infra and Maytas Properties for a total of $1.6 bln, proceeds of which would go to the companies' promoters--sons of Satyam Chairman B. Ramalinga Raju. Despite the company having called off the deal before market hours, the stock slumped amid Corporate Governance concerns.

English India Clays Ltd which is coming up with rights issue at Rs.1000 per share is giving wonderful returns to the shareholders. The company has purchased the land for the upcoming starch manufacturing projects. Its co-generation plant has also commenced opertion which could give it Carbon Credits. A wonderful story to unfold in the days to come.

Book some profits in Kamanwala Housing Construction Ltd. The stock was recommended some days back at Rs.20.2.

Unitech Ltd is doing extremely well, as the government is coming up with the next fiscal package.

Today's intra-day call on Tata Power Ltd at Rs.699 (The Call was given on Yahoo Messanger and by mistake it was mentioned in this blog as Rs.799 in the morning) for a target of Rs.712, gave good return to both the Free and Paid Members.

When the Baltic dry index is rising (10th Straight rise) and the fuel costs (read crude oil falling and crude derivative prices are falling) are falling can we stay away from the transportation sector. Buy Chowgule Steamship Ltd (BSE Code-->5018330) at the CMP of Rs.23 for a target of Rs.37.5--Rs.39 in the next one month time frame. This stock has always given good returns to the share holders.

The fall in inflation should trigger a rally going forward, as the RBI could go for another round of cutting of the interest rates. My recommended Marg Construction Ltd and VBC Ferro Alloys Ltd hit buyer freeze today.

Buy Vijay Shanti Builders Ltd and Srinivasa Shipping Property Developement Ltd. at the current market prices. Both the companies are doing well and have huge order book positions.

Educomp Solutions Ltd (The reseach report which was sent this Sunday to the Paid Groups will soon be tabled at www.sumanspeaksplus.blogspot.com)which was recommended around Rs.2060 in the latest Sunday Report gave wonderful returns to the shareholders in this week. For some months the Sunday report calls have given very good returns to the Paid Groups.

My morning BUY call to the Paid Groups on Oil Marketing Companies is giving good return to those in the group. The Nifty has a very strong support around 2900---2950 range which will be difficult to break with the current set of conditions with the US going all out for rate cut and the Governmement of India readying another FISCAL STIMULAS PACKAGE SHORTLY, which could include IT sector as well.

A sharp fall in inflation took the key benchmark indices to intraday high in early afternoon trade. Recovery in Asian stocks also aided the rebound on the domestic bourses. The BSE 30-share Sensex was up 103.93 points, or 1.07%, recovering 186.18 points from the day's low. IT pivotals surged as investors reshuffled portfolio.

The market was volatile. After a firm start, the market had weakened in morning trade. The market had recovered from the day's low in mid-morning trade on reports the government is working on a second stimulus package to pump prime the economy. The recovery gathered strength as a further fall in inflation added to expectations of a further cut in interest rates by the central bank. Lower rates may revive demand over a medium term.

Inflation based on the wholesale price index rose 6.84% in the 12 months to 6 December 2008, below the previous week's annual rise of 8%, data released by the government today, 18 December 2008, showed. Inflation had surged into double digits in early June this year after an increase in state-set retail fuel prices, and peaked at 12.91% on, 2 August 2008, the highest reading since annual numbers in the current data series became available in April 1995.

Meanwhile, in a second stimulus package to boost growth, the government is likely to provide sops to the automobile, housing and steel sectors. As per reports, the committee of secretaries (CoS) on economic crisis is examining proposals like increasing the limit for low interest-rate housing loans from Rs 20 lakh to Rs 30 lakh, increasing the tax rebate on home loans, reducing car and two-wheeler loan rates by 2% (from the current 12-14%), increasing depreciation and ensuring faster disbursal of central value added tax (Cenvat) credit for the steel sector.

The first stimulus package unveiled by the government on Sunday, 7 December 2008, involved Rs 20,000 crore in additional government expenditure, an across-the-board 4% excise duty cut amounting to Rs 8,700 crore and benefits worth Rs 2,000 crore for exporters.

The new package could also include monetary measures such as cuts in the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) by the Reserve Bank of India (RBI). CRR, down to 5.5% from 9% in August 2008, impounds cash with RBI while SLR mandates banks to keep a specified proportion of their deposits in government securities.

Moat of the Asian stocks were in positive zone, recovering from earlier fall, on hopes regional policy makers may be more aggressive after the cut in US rates on Tuesday, 16 December 2008. Key benchmark indices in Japan, South Korea, China, Singapore and Taiwan were up by between 0.48% to 1.38%. Hong Kong's Hang Seng was down 0.21%.

US stocks fell on Wednesday, 17 December 2008, as the government's effort to stave off a deep economic recession raised worries about mounting public debt and blunted optimism following the Fed's sharp rate cut on Tuesday. The Dow Jones industrial average shed 99.80 points, or 1.12%, to 8,824.34. The Standard & Poor's 500 Index fell 8.76 points, or 0.96%, to 904.42. The Nasdaq Composite Index fell 10.58 point, or 0.67%, to 1,579.31.

At 12:19 IST, the BSE 30-share Sensex was up 103.93 points, or 1.07%, to 9,819.22. At the day's low of 9,633.04, the Sensex fell 82.25 points in mid-morning trade. The Sensex rose 116.56 points at the day's high of 9,830.89 hit in early afternoon trade.

The S&P CNX Nifty up 26.05 points, or 0.95%, to 2,982.40.

The market breadth though it improved was still negative. On BSE, 971 shares rose as compared with 1,075 that declined. 75 shares remained unchanged.

ITC, Reliance Infrastrucutre, Reliance Communications and Bharat Heavy Electricals rose by between 3.22% to 4.9%.

Tata Power Company, Maruti Suzuki India and Bharti Airtel fell by between 0.23% to 0.81%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) slipped 2.46% to Rs 1,316 falling for the second straight day on profit taking after a recent solid surge. From the recent low of Rs 1,118.60 on 5 December 2008 the stock had jumped 10.68% to Rs 1,238.15 on 16 December 2008. The stock fell 2.64% to Rs 1,350.15 on 17 December 2008.

India's largest oil exploration firm by revenue ONGC slipped 2.57% on fall in crude oil prices dropped to their lowest in more than four years on Wednesday, 17 December 2008. But the oil price fall listed shares state-run oil marketing firms, which were up by 3.64% to 4.16%.

Oil extended its losses to below $40 a barrel on Thursday, 18 December 2008, near its lowest in more than four years, as rising US crude inventories and further evidence of slowing demand trumped the Organisation of Oil Exporting Countries (Opec)'s biggest ever production cut. Lower oil prices will reduce under-recoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Metal stocks declined on worries a weakening domestic and global economy will hit demand. Tata Steel, Hindalco Industries, Sterlite Industries, Steel Authority of India, Hindustan Zinc fell by between 1.55% to 5.07%.

Banking shares extended gains on hopes lower interest rates will boost lending growth. India's largest commercial bank State Bank of India (SBI) rose 3.35% as its advance tax payment rose 56% at Rs 1,700 crore in Q3 December 2008 over Q3 December 2007. India's largest private sector bank by net profit ICICI Bank rose 1.91% even even as its advance tax payment declined 6% to Rs 470 crore in Q3 December 2008 over Q3 December 2007.

India's second largest private sector bank by net profit HDFC Bank rose 0.59% even as its advance tax payment fell 10.7% to Rs 250 crore in Q3 December 2008 over Q3 December 2007.

The Reserve Bank of India (RBI) on 6 December 2008, announced a 100-basis point cut in the repo rate and the reverse repo rate each. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.

IT stocks extended gains on rise in American depository receipts (ADRs) and on recent reports President-elect Barack Obama's team is considering a plan to boost the recession-hit US economy that could be far larger than previous estimates and might reach $1 trillion over two years. Satyam Computer Services jumped 6.3% to Rs 168 on 60.17 lakh shares on reports the firm is looking at options like a share buyback and a special dividend payout to restore investor confidence. The stock had slumped 30.22% to Rs 158.05 on Wednesday 17 December 2008 after it called off a deal to buy Maytas Properties and Maytas Infra, the two firms promoted by the family of promoter and chairman Ramalinga Raju bowing to investor pressure.

Satyam's shares, which closed down $6.85, or 55%, at $5.70 on the New York Stock Exchange on Tuesday 16 December 2008, jumped 50% on Wednesday 17 December 2008.

India's fourth largest IT exporter by sales Wipro rose 5.33% as its ADR gained 2.73% on Wednesday. India's largest IT exporter by sales Tata Consultancy Services jumped 3.55%. India's second largest IT exporter by sales Infosys gained 3.15% as its American depository receipt (ADR) rose 3.49% on Wednesday. Infosys sees the Indian IT industry going through a slow phase of growth for some time, its chief executive said on Wednesday.

IT firms derive more than 50% of their revenues from the US, shrugged off a firmer rupee. The Indian rupee climbed towards a fresh one-month high on Thursday, following the dollar's weakness against some Asian currencies and a firmer stock market. The partially convertible rupee was at 47.34/35 per dollar, 0.7 % stronger than Wednesday's close of 47.67/69. On Tuesday, it hit an intraday high of 47.22, its highest since 10 November 2008. A stronger rupee affects IT firms negatively as they earn most of their revenues from exports.

India's largest commercial vehicle maker by sales, Tata Motors, fell 0.06% on reports the company is undertaking a block closure of its commercial vehicle plant in Pune for three days from 29 December 2008, as high interest rates and unavailability of finance had depressed demand.

Thomas Cook India surged 6.29% to Rs 49 after the company priced a rights issue of equity shares at Rs 35.50, a 27.55% discount to the ruling market price.

Glenmark Pharmaceuticals hit 10% lower circuit to Rs 294.20 after Nycomed US filed a patent infringement lawsuit in the United States against Glenmark Generics, a unit of Glenmark Pharmaceuticals.

MRF fell 1.63% after the firm said it has declared a lockout at its Tamil Nadu plant from 17-19 December 2008 due to labour unrest in the factory.