Market Mantra:

Yesterday the Nifty moved along the expected lines. Initially taking clues from weak markets globally Nifty opened gap down and then fell to 5943, precisely in first hour of trade. However, the area of 5950-5965 provided strong support and market rallied strongly to 5073 during second half. Finally Nifty settled almost at the day's high at 5064, a gain of 47 points over its previous close.

Market is trading with a positive bias today, inspite of the blasts in Delhi (Which is a great news for the Bulls). I expect the markets to continue to trade in the same way through out the day.  Nifty seems ready for a further rally after a strong setup at 4950 levels. 

Smart rally from the oversold area below 4800 and a weekly close above 5000 market clearly shows END of the downtrend started from 5700 level. Rally is expected to continue in market. Long positions may hold on to with a stop of 4900.

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Buy Prakash Industries Ltd (BSE Code: 506022) today at Rs.50-50.50, for  a short to medium time target of Rs.77-78, SL--Rs.47.80 (strict--as the scrip is very volatile). Its Q1FY12 results are along the expected lines, I mean a tad better when compared on Q-o-Q basis. The total income of the company came out to be Rs.499.06 Cr in Q1FY12, as against Rs.466.24 Cr in the same period previous year. The Net Profit of the company came out to be Rs.71.10 Cr in Q1FY12, as against Rs.69.69 Cr in the same period previous year.  The Q1FY12, EPS of the company is whooping Rs.5.29 and this is on an expanded equity of Rs.134.49 Cr (Rs.124.49 in Q1FY11). So, this gives a yearly target of Rs.150 for the scrip, which mean 3x CMP, after giving all the discounts. In the charts also the scrip is showing some form of bottoming out at arround Rs.49.50.  It was earlier recommended by a number of brokerage houses. Prakash Industries Ltd was started in the year 1980m, with a focused vision in the core competence areas of Mining, Steel and Power. Prakash Industries Ltd is rapidly curving out as a niche player in the Indian steel space and has emerged as one of the key producers of value added steel products in the country. For highest value addition, company has always emphasized on forward & backward integration. Excellence in diverse range of products, rapid growth, strong financial foundations and a bright future outlook have all been the result of the Company’s ability to stay well aligned with the economic trends and the market needs in the country.  
Hence, Buy in Bulk (Please see the report at: www.sumanspeaksplus.blogspot.com) but keep the stop loss ready in case of any mishap. The steel and power stocks are expected to fire in the coming days as the construction activities picks up steam, after the completion of the monsoon. Also, the following news is positive for the steel companies: 

STEELMAKERS: A group of six Indian companies is among six bidders to mine Afghanistan’s richest iron-ore deposit, the Afghan government said.

Yesterday, profit booking was advised in both Shree Asthavinayak Cine Vision Ltd and Allied Digital Services Ltd, to the Paid Groups. I hope all of you booked full profits in Shree Asthavinayak Cine Vision Ltd and Allied Digital Services Ltd (we can again enter them later). Both the stocks are showing weakness on the daily charts and  hence we need to give them some time for the consolidation to complete before we can enter them again. 

In another positive devlopment: INDO COUNT (CMP--Rs.10.42), the cotton fabric- maker said it had lifted a lock-out at its factory in Kolhapur and restarted production from Sept. 2. This news is just for academic importance or for keeping the scrip in the watch list.  Moreover, positive news is flowing from SEL Manufacturing Ltd, except its huge interest cost......