Thursday, April 12, 2012

Market Mantra
Afternoon recommendation to the Paid Group members: (a) Buy GATI Ltd at Rs.32--32.5, T--Rs.37-38, SL--Rs.31.  
(b) Buy HINDALCO Ltd at Rs.127.50-128, T--Rs.132, SL--Rs.125.40. The bullishness in the scrip stems from surprise first-quarter profit of Alcoa Inc, the  world's third largest producer of ALUMINUM (Al), behind Rio Tinto Alcan and Rusal. The company said its business was better than anyone expected. Alcoa Inc reported a surprise profit for the first quarter. The company sold more aluminum as demand improved from automobile manufacturers, aerospace and commercial transportation. The largest U.S. aluminum maker reported net income of $94 million US, or nine cents a share. Analysts expected a loss of four cents per share. Alcoa reported net income of $308 million, or 27 cents a share, in the year-earlier quarter. Revenue totaled $5.96 billion. Analysts predicted revenue of $5.77 billion. Alcoa Inc said it saw strength in its industrial products, automotive, aerospace, packaging and commercial transportation markets. It raised its global growth forecast for the aerospace market by three percentage points to 13% to 14%. Therefore, Alcoa Inc's bullish outlook is built primarily on strong aerospace and automotive markets. Moreover, it sees aluminum supply deficits all year, Europe notwithstanding, and sees global demand for aluminum growing 7% this year on top of 11% growth in 2011.
Kohinoor Broadcasting Corporation Ltd hits the buyer freeze in the morning trade. The stock is moving towards the target of Rs.20-24 in the coming days. The company is now both a broadcaster and also a content producer. Its solar energy project is expected to kick start from next year.  
Prajay Engineers Syndicate Ltd  hit the buyer freeze before cooling down a bit. The stock should cross Rs.100 in the coming days, as the interest rate gets softened and as the company goes on completing one project after another.
With today's IIP numbers, the stage is set for a cut in the Repo rates by the RBI in the next policy meet on 17th April, 2012. So, go all out in the Banking counters: SBI, IFCI Ltd, Indian Overseas Bank, UCO Bank, etc. looks good. 
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