SumanSpeaks: The Information Super Highway

RBI hikes CRR by 0.5%, leaves other rates unchanged: Please use the buoyancy in the markets to exit or cut ur positions in the places where you are making profits, as the market looks choppy and wobbly; in the short term. The Nifty could tests 4200 in the near term....and worst case scenario could be 3800...Hence be cautious. Today's rise in the indices seems to be due to short covering, only: W S Industries Ltd (recommended to the Premium Group at Rs.52) hits the buyer freeze: Book Profits in Southern Online Bio Technologies Ltd at Rs.19.5: Reserve Bank on Tuesday hiked by half a per cent, the amount of depositors money commercial banks need to park with the central bank to curb money supply but left other benchmark interest rates unchanged. With inflation hovering within its medium-term target of 4-4.5 per cent, the central bank pressed the pause button on any hike in key rates, barring the hike in Cash Reserve Ratio by 0.5 per cent to 7 per cent to suck out excess liquidity. re...

Market takes CRR hike in stride: The market held firm in afternoon trade after it had undergone a bout of volatility in early afternoon trade when the Reserve Bank of India (RBI) today, 31 July 2007, raised the cash reserve ratio (CRR), the proportion of cash banks have to keep with it on deposit, by 50 basis points to 7% from 4 August 2007. The CRR hike spooked interest-rate sensitive auto shares. Profit taking was also witnessed in a number of PSU banks and in select real-estate scrips. But housing finance major HDFC surged. Index heavyweight Reliance Industries (RIL) came off lower level after it had slipped in the red soon after the RBI’s announcement. The market breadth was quite strong: 1,605 shares rose on BSE as compared to 960 that declined, while 75 shares were unchanged. Stocks rose in Europe tracking recovery in Asian and US stocks. Key benchmark indices in London, Germany and France were up 1% each. In Asia, key indices in Hong, Singapore, South Korea, China and Taiwan w...

Market Update: [UPdated at 8 P.M] Sree Rayalaseema Alkalies and Allied Chemicals Ltd came out with wonderful set of numbers for the June, 2007, quarter; inspite of Rupee Appreciation. This is a wonderful achievement for the company, which is is moving at a lightening pace. I have already mentioned in my earlier write up about the details of the company. But the two/three points needs to be highlighted. i) One of its group companies, which is less stable Sree Rayalaseema Hi-Strength Hypochorite Ltd is at a much higher price than this company ii) The company is having the capacity to produce 30 MW of power for commercial production, which is sold to Karnataka State Electricity Board. Moreover, its captive power Unit is reducing the power cost for the overall running of the planning and which is power intensive. This is a great advantage for the company ii) Since the rupee has more or less stabilised against dollar, the company could get benefits of this in the subsequent quarters. Also,...

Some scrip buckled the trend in the Friday's fall: My recently recommended Chandra Prabhu International Ltd, Simmonds Marshall Ltd and Sree Rayalaseema Alkalies & Allied Chemicals Ltd closed with minor losses when the markets were down by more than 500 points: Srinivasa Hatcheries Ltd recommended at Rs.62 to the Premium Group members, infact marched ahead to Rs.71.85:Southern Online Bio Technologies Ltd also closed with gains of 3.11% at 19.37:Sree Rayalaseema Alkalies & Allied Chemicals Ltd with good book value and Power Generation capacity of 37.5 MW for both captive and commercial use, is the best bet at the present conditions. The stock is heading towards Rs.50 mark. One time its average price was Rs.40 and that too with less encouraging fundamentals, then now...Now with the improving fundamentals and with it getting a readymade customer to sell electricity woth more than 30 MW to Banagalore State Electricity Board alone, the stock should cross Rs.50 soon. The demand f...

Global economy: The lost world: The Dow Jones Industrial Average, representing in the US what the Sensex is for Indian stock markets, touched a record high of 14,000 last Thursday. However, the very next day saw the index dropping by over 1%, or 150 points to 13,850 levels. Lacklustre quarterly performance reported by some large corporations and fears of a slowing housing market seem to have rattled investors in US equities. If that is not all, the dollar is also dropping on its knees against the Euro and most of the other major currencies. Oil remains at its historically high levels, bringing to light fears that the world is indeed moving towards an 'oil shock' as supplies decline while demand shows no signs of cooling off. In the meanwhile, the US Federal Reserve, alongwith its other global central bank peers, remain focused on controlling the demon of rising prices of consumer items - foods prices are rising, oil for cooking and traveling and heating is all going up, globa...

Cement stocks lose ground:Jamna Auto Industries Ltd hits the buyer freeze. Those who are holding Jai Parabolic Springs Ltd must be rejoicing: Ranbaxy Laboratoreis Ltd was asked to accumulate at around Rs.340-Rs.355, only some days back, the stock moved more than 7% today in the early trade, on the news of some important developments in the company: Today, I recommend a scrip in dying hours of the market, in the chemical space, at around Rs.12.8--Rs.13, range and which shot up more than 4%: Keep adding Ansal Builwell Ltd on all declines, as this is a gem, in the construction/engineering/real estate, space:Those who are holding RTS Power Ltd from Rs.92--Rs.98, range should book some profits at the current price:Those who are holding Sanguine Media Ltd, should continue to hold with a SL of Rs.39: Those who are holding Cummins (I) Ltd from Rs.169--Rs.172, range should book 80% of the profits and keep holding the rest with a SL of Rs.350 : MSK Projects Ltd recommended to the Premium Group...

Cement stocks hammered: Chandra Prabhu International Ltd is in talks with the World Famous Rio Tinto Ltd or have signed a secret deal (It is to be remembered that Rio Tinto Ltd, one of the world;s largest mining comanies, went for a major acquisition only some weeks back) for drilling and exploration of its coal mines. Besides, this international coal prices have started to move up and this is positve for the company as the company is into coal. It supplies coal to major factories in Northern India and Central India. It also exports coal and has tied up with some US and South Korean Companies for the export of Synthetic Rubber and allied chemicals. The company is a major in, Jatropha Plantation, will start bearing fruits from this fiscal. Please understand, this now we have a plant which manufactures oil from Jatropha, which means they have ready made customers. Also, if IKF Technollogies Ltd, which has only land and has started Jatropha Plantations,only can command such astronomical ...

Hindustan Dorr Oliver Ltd was recommended at around Rs.65--Rs.70, range in last February(2007); it is still going strong:Ditto happened for Zigma Software Ltd, which is hitting circuits after circuit: This is what happens if you go for delivery based calls based on fundamenal calls and that too for the medium to long term: Always try to avoid playing for too short term, I know this is very difficult as the temptation is too large....and also please note that Technical Analysis is just one of the many methods to predict the share price movement over a period of time; it is neither sufficient nor absolute. There are 100s of instances where people had to sell their last straw, investing on Technical Calls. So please be careful and invest only when both the Fundamental and Technical analysis concurr...: Hindustan Dorr Oliver shares rose over 4% on getting an order worth Rs 30 crore from Vedanta Alumina. At 11:04 AM, the Hindustan Dorr Oliver stock was up 4.32% at Rs 131.50 with volume trad...

Sensex exhibits strength, eyeing all time high: Chandra Prabhu International Ltd hits another buyer freeze: Keep holding Zigma Software Ltd: Simmonds Marshall Ltd, a great stock in the auto ancilliary space, should do well in future as it would gain from the appreciation of Indian rupee as it imports more than it exports...Besides good book value, EPS, Management, etc, what more is necessary for a scrip to move ahead???!!!! It should reach Rs.90--Rs.120, within 3 months to 6 months: The market was showing strength at higher levels in mid-afternoon trade, after initial weakness as buying continued for index pivotals. The benchmark BSE 30-share Sensex was confortably trading above the 15,600 mark. At 12:34 IST, the Sensex was up 68.18 points to 15,632.78. It opened lower at 15,560.57 and slipped to a low of 15,477.91 in early trade tracking weak global equities. But it started advancing from here to hit a high of 15,638.01 at 12:01 IST as buying resumed. It is very near to its all time...

Sensex exhibits strength, eyeing all time high: Chandra Prabhu International Ltd hits the buyer freeze: Simmonds Marshall Ltd should gain from the appreciation of Indian rupee as it imports more than exports. The company's share at the CMP is trading at attractive valuations. WIth EPS of more than Rs.9, and book value of around Rs.31, where can u find an auto-ancilliary company with such fundamentals?? The market was showing strength at higher levels in mid-afternoon trade, after initial weakness as buying continued for index pivotals. The benchmark BSE 30-share Sensex was confortably trading above the 15,600 mark. At 12:34 IST, the Sensex was up 68.18 points to 15,632.78. It opened lower at 15,560.57 and slipped to a low of 15,477.91 in early trade tracking weak global equities. But it started advancing from here to hit a high of 15,638.01 at 12:01 IST as buying resumed. It is very near to its all time high of 15,683.03 hit on 20 July 2007. The total turnover on BSE amounted to ...

Today's Recommendation: Buy: 1. Chandra Prabhu International Ltd at Rs.9.5--Rs.10, for a target of Rs.24--Rs.30, as the company has started drilling and exploration, for coal. The company is also a pioneer in Jatropha Plantation as it is going to bear fruits from the end of this year, and will continue for the next 50 odd years. the company last quarter came out with wonderful set of numbers. There are more news in the offing in the counter. Hence buy the stock with a SL of Rs.7......for some decent gains...... 2. Simmonds Marshall Ltd ---Buy at the current price for some decent gains. The company has been moving at a great speed. From a net loss only some years back due to unsympathetic bankers, the company made huge strides and is n ow net positive. The company has huge book value and huge EPS. It should cross Rs.90--Rs.120, within few months as the company has onlhy one major competitor, Sundaram Fastner Ltd. Even Sundaram is not concerned with the space in which it operate...

Sensex slips into the red; BSE Realty index hits all time high, but heavy buying took place in the small, mid and micro-cap counters in the early trade: Realty Stocks fired all cylinders in the early trade: Ansal Buildwell Ltd rose up with huge volume. Keep accumulating this "Gem of the real estate and construction sector" whose FY07, EPS became almost 4 times that of FY-05-06 (Please check the report at www.sumanspeaksplus.blogspot.com ): Book some profits in Southern Online Bio Technologies Ltd and keep the rest for any further upmove. The has to pass through lot of resistances in its upward march. The company management now has to prove to the investors/shareholders as how they will fare in the long run:My Gem Noida Toll Bridge, raced ahead with huge volume to hit the circuits at Rs.33.05.The company came out with superb numbers for the June, 2007 quarter. Keep holding with a stop losss mentioned to the Premium Group Members: My Call on Modern Steel Ltd to the Premium Gro...