Market Mantra

United Breweries Ltd recommended around Rs.732-733, today touched Rs.851.70. The scrip was recommended a couple of weeks back on some positive development in the company. 

HDIL and JP Associates Ltd which were recommended reached their respective 2nd targets of Rs.39. It is time to book at least 80% profits in both and wait for the ultimate targeta of Rs.42 in both the scrips. Meanwhile if HDIL closes above Rs.44, then we could see a rally upto Rs.51. 

Today's Call: Buy Dena Bank Ltd at Rs.48.30, T--Rs.62, SL-Rs.41.80. Among the public sector banks, this is one of the best banks. In the June, 2013 quarter its EPS is Rs.5.40, which gives a natural target of Rs.110-115 for the scrip in the short term. The scrip of SAIL is not performing even through INR is doing fine. Hence, if one wants to interchange it with Dena Bank Ltd, they can do it. 
Manappuram Finance Ltd today touched Rs.17.85 and is now trading at Rs.17.50. As long as the gold price does not crash, this stock is expected to move up slowly. Moreover, there is around only 2% delinquencies, and hence, there is much safety in the counter. My close sources, the company is expected to post better results in Q2FY13, compared sequentially. According to a marketman, when gold prices move up, 1stly, the NPL of the gold loan companies, start to come down, i.e  the recovery rates start to move up. 2ndly, the amount which one can disclose on a similar quantum of gold, starts to move up. So overall gold prices moving up is positive and that is what the market is trying to price in.
Karnataka Bank Ltd which was recommended around Rs.78-79, today touched the 2nd target of Rs.88. In a similar way, B F Utilities Ltd touched its first target of Rs.139 (intra-day high of Rs.141)

WINNING STROKES: THINK DIFFERENT 

B F Utilities Ltd reached the 1st target of Rs.139, as it touched Rs.140.70 intra-day. The scrip was recommended last week around Rs.127-128. 

MCX Ltd hit another buyer freeze, even though the market tanked. I however, feel that it is time to book some profits. The stock closed at Rs.411.10.

Manappuram Finance Ltd unexpectedly hit the lower circuits today, though the price of gold rose due to tensions in the middle east. Safe-haven buying lifted the price of gold on Tuesday after an Israeli missile test ahead of a possible U.S. strike on Syria. This fall in the price of the share of Manppuram Fiance Ltd, seems to be artificial as it lacked the required volume and sales mostly came through delivery based trading. I would basically consider it profit booking and ask you all to accumulate the scrip at the CMP of Rs.18. Muthoot Finance however closed flat at Rs.112.50. CLICK HERE. 
Geometric Ltd recommended some days back at Rs.76-77.50, today touched Rs.80.50. This is tune with the over-all buoyancy seen in the IT counters. 
DLF Ltd today touched its first target of Rs.139, as it rose to Rs.139.75 intra-day. The scrip however closed at Rs.127.40, due to massive speculative selling in the Indian bourses. 
Join my recommended BROKERAGE HOUSE and get assistant during the market hours. If you are interested then do send me a mail at suman2005s@rediffmail.com. 

Mid Market Chart Check

[Excerpts of my mid-day inputs to the clients]

Market experienced buying at lower levels. A gap down opening took the Nifty to a low of  5118.85 during first few hours of trade. However, strong buying at lower levels pulled it to a high of 5317.70. Finally it settled almost flat. 
Due to over sold situation in short term and subsequent short cover, the  F&O expiry is expected to be closed in the positive today.  Since the morning, there has been relentless buying in the Indian bourses, after the INR appreciated against the USD. However, what is to be noted is that till now the rallies are proving to be short lived and are getting exhausted quickly. On the other hand lower level is attracting buying interest also. This has resulted into extreme volatility on the either side of the spectrum. However, it seems there are now some hope of Nifty going to 5700 levels by the end of September, which is normally a good month for the BULLS. 

Resistance: 5425 / 5475
Support: 5350 / 5300.

Today' Call: Buy J P Associates Ltd (BSE Code: 5325322) at Rs.33-33.40, T--Rs.39, Sl-Rs.29. The news is that Aditya Birla Group is close to concluding a deal to buy out the company's cement plant in Gujarat for close to 35 bln rupees (Rs.3500 Cr), which could be announced anytime from now. Please remember, last time on such a news, the scrip rallied from Rs.51 to around Rs.90 plus. Those who wants to take  a small risk then they can try Rs.40 Call of J P Associates Ltd at Rs.1.40, for a target of Rs.3-4 in the next 30 days. But do keep a SL of Rs.0.80 paise for any down move.  CLICK HERE & CLICK HERE. 
MCX Ltd which was recommended around Rs.255 and Rs.272, last week is today locked at the Upper Circuits at Rs.256.15. The is near the first target. 
Those who have earlier taken B F Utilities Ltd at Rs.128-128, or later, bought it around Rs.118-120, when it fell can continue to add on to their positions and wait for the scrip to cross Rs.200. Today, I am told that an advisory service has recommended the scrip, as a buy for a target of Rs.163.Today the scrip already touched Rs.134.40.
Those who have entered VIP Industries Ltd yesterday, are suggested to exit the counter at around Rs.47.80-48 or either with small profits, or with cost price, because the stock is not performing as expected, even as the INR appreciated against the USD. It was recommended yesterday, on the two premises: 
(i) Ace investor, Rakesh Jhunjhunwala has increased his holdings, mostly probably banking on the revival of sales from the CSD business of the company. 
(i) Any appreciation of the INR against the USD would be positive for the company as it imports around 80-85 % of its products. 
However, the stock did not react too much on the positive side, may be because the price of crude has risen, on the fear of another war in the middle-east. 

AFTER MARKET OPENING CHART CHECK

Photo, Courtesy: Faking News

In an extremely bearish move following the passing of the FSB, the Nifty, it fell down to 5274 and closed with a huge loss of 189 points. A gap down opening was followed by sustained selling till end, with no respite, with a total absence of any intra-day upward correction.
Market is in confirmed down trend and scary target of 4800-4900 are talked about in sundry analyst circles. Shares are making new lows every day and even BLUE CHIPS are now spared. Rallies are  generally short lived and get exhausted quickly. The pace of fall is much higher than rise the rise.  3-4 days of rally had been corrected by single day of fall. Much of the fall is due to self-inflicted pain created by our "Tughlak-ian" UPA Government and its anti--people policies. The main opposition BJP only gave Lip-opposition to the FSB (Ironically called, "Vote Security Bill"), which clearly indicates, what each political entity, ultimately espouses, internally--much of what we see outside is only their masks. However, the voters have to choose the lesser evil among them. In such a scenario it is puerile to take long positions in Nifty_Futures, except playing on the range 5120--5165. What the investors/traders can do now, is to go for staggered buying in some of blue chips, like BHEL (Rs.107-108), L & T (Rs.686-687), B F Utilities Ltd (Rs.120), VIP Industries Ltd (Rs.46-47), etc.

Resistance: 5220 / 5250

Support: 5150 / 5110.

MCX Ltd hit another buyer freeze in the opening trade. The scrip was recommended last week at Rs.255-256 and Rs.271-275, when it came out of the circuits.

Manappuram Finance Ltd today touched the first target of Rs.17 (touched Rs.17.73) and is now going for usual correction. The investors/ traders who have purchased earlier should book profits.

Today's call: Buy VIP Industries Ltd at Rs.46-47, for a price target of Rs.52-57-62, SL--Rs.41. VIP Industries has reported a standalone sales turnover of Rs.326.90 crore and a net profit of Rs.23.00 crore for the quarter ended June '13. Other income for the quarter was Rs.0.60 crore. For the quarter ended June 2012 the standalone sales turnover was Rs.302.60 crore and net profit was Rs.23.50 crore, and other income Rs.0.30 crore. Please use stop losses strictly, because in this market, one never knows where a scrip can go on the downside. VIP Industries is engaged in manufacturing of moulded luggage (from high-density polyethylene), soft luggage (from nylon, polyester, jupolene, printed polyester) and ABS luggage (from acrylonitrile butadiene styrene plastic) including briefcases, suitcases, handbags, carry bags and vanity cases. VIP Industries, Asia’s No. 1 luggage manufacturer, had earlier announced the appointment of McCann Erickson as its creative agency for VIP brand. The company also said that it is currently scouting for a creative partner for its Skybags brand. The business has moved both its brands, VIP and Skybags, from its incumbent agency, Ogilvy & Mather. Established in 1971, VIP Industries sells nearly five million pieces of luggage a year. The state-of-the-art VIP Design Lab is credited with multiple international patents and design registrations. The company’s latest launch, VIP Verve, is a stylish, lightweight polycarbonate luggage, and was awarded the prestigious ‘Product of the Year’ Award for 2011-12. CLICK HERE.

Those who are holding Manappuram Finance Ltd at around Rs.14-80-15, are suggested to book profits and wait for the scrip to cross the bottle-neck area of Rs.17.70-17.80.

WINNING STROKES: THINK DIFFERENT

Please Click on the Chart to Expand

MCX Ltd hits the buyer freeze in the opening trade. Those who have taken risk yesterday, must be happy. But, safe investors, should be very careful playing these kinds of counters. Today, the stock got locked in the UC, at Rs.293.05 in the  NSE.

Manappuram Finance Ltd recommended yesterday at Rs.14.80-15, today broke out its long term chart pattern and is moving towards the next intermediate target of Rs.17.50-17.70, before touching Rs.21, in the next few trading sessions. With import restrictions on, the price of Gold is not expected to come down very quickly. In such a scenario, the companies like Manappurram Finance Ltd is expected do well. The scrip today closed at Rs.15.30. CLICK HERE & CLICK HERE.

B F Utilities Ltd confirmed the break-out today, in the daily charts. It seems on Monday it will open a gap up and try to move towards the next target of Rs.145-147, and then subsequently cross Rs.200, in the next few trading sessions. Buoyancy in the wind power sector and the government's thrust in the infrastructure, is positive for the company. Moreover, the new government in Karanataka could also, help solve some of its pending matters. 

BF Utilities Ltd: Buy

BF Utilities Ltd posts profit of Rs.2.61 crore for the period ended June 30, 2013.

BF Utilities Ltd has announced the Financial Results for the period ended June 30, 2013.

The company has reported Net Sales / Income from Operations of Rs.7.62 crores for the quarter ended June 30, 2013 against Rs.6.77 crores for the quarter ended June 30, 2012.

The Net Profit / (Loss) was at Rs.2.61 crores for the quarter ended June 30, 2013 against Rs.2.01 crores
for the quarter ended June 30, 2012.

The company has reported an EPS of Rs.0.69 for the quarter ended June 30, 2013 as compared to Rs.0.53 for the quarter ended June 30, 2012.

Sequentially speaking the results of the company were superb for the quarter ended June 30, 2013. In March, 2013, quarter the company came out with net sales of Rs.3.71 Cr and net LOSS of Rs.1.48 Cr. CLICK HERE. 

Buy the scrip at Rs.129-130, for a target of Rs.145-147. Keep a tight stop loss of Rs.117. The change in stance of the RBI policy, will help such companies. Also, new government in Karnataka, could be positive for the company.
Note: The Scrip was recommended yesterday, to the Paid Group members and this is yesterdays' report. It has already moved to Rs.135.90 and could cross Rs.200, within the next few days.

Market Mantra

Reliance Mediaworks Ltd(Rs.51.90) hits the buyer freeze in the mid afternoon trade. The scrip was recommended repeatedly in this group. Reliance Broadcast Network Ltd (Rs.28) could also hit the buyer freeze today, as most of the ADA Group (Anil Ambani Group) stocks are moving up in high speed. 
The construction companies are moving up today, in anticipation of the RBI going for another round of rate cuts in the next policy meet. Some of my favourite counters like IVRCL Ltd (Rs.20.70), B F Utilities Ltd (Rs.260), Punj Lloyd Ltd (Rs.53.50), etc are doing well today.
Tulip Telecom Ltd hits another consecutive buyer freeze in the opening trade. It is now locked at the Upper Circuits at Rs.16.13 in the BSE. This scrip was also very strongly recommended in this blog, repeatedly. 
Today Kingfisher Airlines Ltd moved to Rs.7.20, before cooling down a bit. It is only time that the airlines would start operation once again. A section media is sending all sorts of make believe news in public domain. The media reports are manufactured and punctuated with "If", "May be", kinds of words, for the reasons best known to all. When the debts have actually come down from Rs.7000 Cr plus and the funding from the U B Group is about to happen, these kinds of negative news only points that some vested groups want to enter the scrip at a lower price before the company announces the good news. Paid Media, is being used by vested groups for their own interest...!! "I seriously wonder what motivates the bank chairmen to constantly speak to the media on loan recovery from Kingfisher Airlines. What about others?" ~~Kingfisher Airlines Chairman Dr.Vijay Mallya, shot this message sometime back on the Twitter.

B F Utilities Ltd

CMP: Rs.260.25

• The two cities, Mysore and Bangalore are developing economically on the lines of Mumbai-Pune, with excellent growth and synergies. The Mumbai Pune corridor is a highly industrialised affluent region, powered by an excellent Expressway. The 143 km BMIC distance is part of State Highway 17, and is a key connection from Bangalore to West Karnataka, North Kerala and north and west Tamil Nadu.
• The Bangalore Mysore corridor has tremendous development potential. It is also badly required, for the necessary growth of South Bangalore and Mysore, as well as potentially the entire corridor.
• Even though the B F Utilities Ltd financials are in negative for the December, 2012 quarter, the business is well managed, and the expectation is that if the pending land is handed over to B F Utilities in the next quarter, it may be possible for the management to complete the highway and a fair proportion of the townships by end 2013.
• On legal issues, it is likely that the GoK authorities have, under SC duress, no option but to handover the promised lands, and allow the BMIC executives to proceed on the infrastructure project. According to some reports available on the Internet: the current BJP government have not opposed it, unlike other governments.
• The current State highway has just two lanes each way and is quite congested with travel taking around 3-4 hours. Current data is about 1,00,000 vehicles take this route every day. This indicates that good demand/ potential exists for this new highway by itself. A ballpark estimate of 50% of this traffic attracted to the BMIC, paying a conservative Rs.100 each way indicates Rs.182 Cr annual revenue.
• Most good infra projects attract and stimulate growth. In addition the new townships as well as a new constructions planned will by themselves attract customers from Bangalore, and generate independent revenues and profits.
• Valuation of Real estate firms is difficult. The project has been valued in the past in a wide range, from as low as Rs.4000 – 15,000 Cr. But even this range is higher than current market cap of around Rs.981.24 Cr.
• Much of the value is dependent upon a successful handover of committed lands, followed by execution, commissioning, launch and success of sub-projects.
• But from a risk return perspective, the share has fallen almost 85% from its peak levels, which means the downside looks limited. On the up side, the peak has been more than  6 times the CMP, so there is a significant upside potential.
• The project is showing signs of overcoming teething hurdles and progressing on legal, land acquisition and financial closure aspects.
• The management believes in investing in road assets as soon as they have clear titles, as construction costs today are lesser than those in the future. So many sections are already operational and revenue generating.
• For the High Risk, High Gain investor, this investment can be looked at from a 2-year perspective for a gain of 200 – 300%. In the short term the scrip could move towards Rs.450--500 in the current days as the infrastructure stocks move up in anticipation of a rate cut by the RBI.

B F Utilities Ltd: Should Perk Up Based On Improved Fundamentals

Company Background: BF Utilities Ltd. (BFUL) is a part of  the reputed Kalyani Group. It earlier operated in two business segments –Infrastructure Business and Investment Business. BFUL has undergone a major restructuring where the Infrastructure Business has remained within the BFUL while the Investment Business has been transferred to BF Investment Ltd.
The projects:
1) Nandi infrastructure Corridor Enterprise (NICE) (74.5% holding). Project – BMIC – Bangalore Mysore Infrastructure Corridor Project.
2) Nandi Highway Developers Ltd (NHDL) (69% holding). Project – Hubli -Dharwad Bypass road. - The Hubli-Dharwar bypass in Karnataka is a 30 km road on NH4 that lets highway traffic bypass the two cities, speeding up traffic. NH4 connects Mumbai/ Pune with Bangalore/ Chennai. Operational since 2000.
3) Project – Wind energy, over 300 acres in Satara, Maharashtra is 100% owned. Despite the continued dismal state of US economy, it managed to add 13 GW of windmill capacities in the year 2012, just a whisker below China. However, the much awaited extension of Kyoto Protocol upto the year 2020 has not been able to bring cheer to the global carbon market. The buyers (designated nations) of carbon credits are required to declare by year 2015 their GHG (Green House Gases) reduction commitments for the period upto 2020. Due to the economic crisis in the EU, most of these buyers are reluctant to make commitments and this has led to uncertainty in the markets and has resulted in steep fall in the carbon prices."Despite much talk by world leaders," said IEA executive director, Maria van der Hoeven, "and despite a boom in renewable energy over the last decade, the average unit of energy produced today is basically as dirty as it was 20 years ago."  The IEA uses a complex calculation called the carbon intensity index to show how much CO2 is emitted to provide a given unit of energy. The index stood at 2.39 tonnes of CO2 per tonne of oil in 1990. By 2010, it has shrunk fractionally to 2.37 tonnes. This has led to a growing concern in the world and hence the things could be  looking better from here.
According to IEA report, the major reason for such a small reduction of that period, was due to the resurgence of coal. And, the coal demand continues to grow. Globally, coal-fired electricity generation rose by an estimated 6% from 2010 to 2012 , faster than non-fossil energy. The major growth in coal came from developing economies, with China accounting for 46% of global coal demand in 2011. However, it is not all bad news for the green sector. Renewables such as solar and wind have boomed in 2011 and 2012, perhaps driven by government spending. They accounted for 19% of global electricity generation in 2011 which according to a report is "broadly on track to meet a 2C scenario by 2020" for a globally altered climate.
The Kyoto Protocol’s Clean Development Mechanism was supposedly created to help finance sustainable development projects in the world’s poorest countries. Many of its supporters argued that it would make it possible for these countries to ‘leapfrog’ or skip the process of industrialization to a more sustainable economic model. But most of the money is going to the largest and most industrialized emerging economies. Over two-thirds of Clean Development Mechanism projects are initiated from just 3 countries: The Netherlands (35.59%), Britain (20.34%), and Japan (15.25%). So, when the name of Japan is there we can be optimistic considering the current set of events there.
Event: – The key asset for the company is the project BMIC (Bangalore Mysore Infrastructure Corridor Project) – A 164 km tolled expressway connecting the cities Bangalore and Mysore. It includes a peripheral road in Bangalore, 5 New Townships along the Expressway (the first Section A involves 7,290 acres land), a Town Planning Authority status, and a Concession period for the toll of 40 years. The BMIC is 75% owned by BF utilities. It has a single planning authority – Bangalore Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) for the entire project.
The project is partly operational with the rest held up due to pending handover of land by the government of Karnataka. This high potential project has been stuck for over a decade due to land handover issues, and the firm is making losses. However recent reports indicate that now it may be close to resolving the issue as the Supreme Court has asked Karnataka to handover the Nandi project land to the company. PE fund raising plans are also in discussion who will invest in the development in the project.
This project has immense potential and is also very important for the growth of the South Bangalore and Mysore. Much of the value is dependent upon a successful handover of committed lands, followed by execution, commissioning, launch and success of sub-projects. This would further help the company to create value for itself as well the shareholders. This would further help the stock to re rate.
Interest Rate Cut: Any fall in the interest rate is positive for the company, as it is into infrastructure development as mentioned above. 
Concerns: Though during the last fiscal the windmill projects of the company performed satisfactorily and the trading of (RECs) generated by the projects helped the company to earn additional revenues, but the income from RECs this year is expected to be subdued due to lower rates owing to oversupply of RECs in the market. The CDM market has also witnessed a free fall in the last few months. However, on the issue of grant of open access for wheeling of windpower to third parties within the state, the Regulatory Commission, in an  order, had clarified certain aspects which will pave the way for open access for wind power projects in the state. This is expected to provide the much needed boost for the windmill projects in the state. Moreover, introduction of the Generation Based Incentive (GBI) for FY14 (Union Budget) and setting aside a sum of Rs.800 crore for this purpose augurs well for the company.
Chartical Analysis: 
The stock is in a positive trend and with technical attributes at 3 or more. The attributes show that the stock is displaying good relative strength. There is resistance at Rs.276.00 and support at Rs.244.00.

Market Mantra

Tulip Telecom Ltd hits another buyer freeze in the opening trade. Today on the NSE, there are more than 1 million buyers while there are no sellers. 

Some of the infrastructure companies, like IVRCL Ltd (Rs.20.30), B F Utilities Ltd (Rs.260), Jai Corp Ltd (Rs.64) are doing well today, due to fall in the cement prices (Prices of cement bags fell 3-6% this month across most markets in the country) and also due to optimism that RBI might go in for an aggressive rate cut, as both the Retail inflation and WPI inflation has fallen. 
Excepts of my mid-market inputs to the Paid Group Members: Inability to break 5475 (Nifty_Spot) and a rise above 5615 has turned the market trend upwards. Nifty has re-entered the zone above 200 DMA. Shares from almost all sectors are participating in the up move setting an immediate target of 5850 for Nifty. It seems that intermediate correction started in February has come to an end and uptrend is likely to get resumed. The traders are suggested to hold on to their longs with a Nifty_Spot target of 5850. Nifty_Spot is now trading around 5700 (at the time of sending the report to the Paid Members). Fundamentally speaking, today, the market is expected to continue to trade strong, after a lot of positive macro--economic factors gave the bulls the necessary bulwark, like lowering of trade deficit, increase of exports, lowering of imports, falling of crude oil price, falling of inflation trajectory, and so on. . 
Today, the stock of Kingfisher Airlines Ltd is doing well and hit the upper circuits in the morning trade before cooling down a bit. There were media reports that: "Kingfisher management sources claimed to have got a nod from the Director General of Civil Aviation (DGCA) to go ahead with its pilot training programme ahead of the airline's re-launch". CLICK HERE. Also, a fall in the crude price is positive for the aviation sector, as the ATF prices will come down. The stock should slowly move towards Rs.14-15,  in the coming days. Today it is moving up with good volume; already 26, 59,699 (more than 2.6 million) shares have been traded in the BSE. CMP: Rs.6.95. 
In the media space, while Reliance Mediaworks Ltd (CMP: Rs.50) is up more than 1%, the other ADA Group comcpany Reliance Broadcast Network Ltd is trading flat at Rs.26.35. Both the scrips should be purchased, as a sea change is expected to take place, post the completion of the 2nd phase  of digitization.

B F Utilities Ltd: Rs.255.20

BF Utilities Ltd. (BFUL) is a part of USD 2.4 billion Kalyani Group. BFUL earlier operated in two business segments – Infrastructure Business and Investment Business. BFUL has undergone business restructuring by way of a Composite Scheme of Arrangement. Under the said business restructuring, the Infrastructure Business has remained with BFUL and Investment Business has been transferred to BF Investment Ltd.

Highlights:

(i) The Railway Minister Pawan Kumar Bansal, granted a veritable boon to the beleaguered wind turbine sector by announcing a proposal for setting up 75 MW windmill units, in the railway budget for 2013-14. Mr.Bansal announced "setting up of 75 MW windmill plants and energising 1,000 level crossings with solar power". He said that as a measure to protect the environment and to promote sustainable development, a railway energy management company will be set up to harness the potential of wind and solar power. The railways have pan-India presence and can put up the windmills across the country. This is positive for the wind power generation companies.

(ii) With the scrapping of accelerated depreciation and Generation-Based Incentive (GBI) schemes, the Indian wind power sector received a jolt in the last year's budget.  But, introduction of  generation based incentive to wind power developers, in FY13-14 budget,  is expected to help the wind power industry in a big way. With a generation-based incentive of 50 paise per unit being introduced in the Union Budget, India's wind power capacity is poised to grow from 18,000 megawatts (MW) to 27,000 MW in the next two years, according to turbine makers and wind power producers. The withdrawal of accelerated depreciation for wind energy projects last year led to drastic fall in capacity expansion as only around 1,800 MW new wind capacity was added in 2012-13 against 3,000 MW in 2011-12. Ramesh Kymal, chairman, Indian Wind Turbine Manufacturers’ Association (IWTMA) had said that the reintroduction of GBI scheme by the government would help the wind industry get back to its high growth trajectory and the industry may cross annual capacity addition of 5,000 mw soon. Also, the government  has recognized the contribution of wind power and clean energy fund  will be made available to help wind power.  Wind power accounts for 11% of installed capacity and 6% of total generation in India, he said. The government targets to increase the share of wind power to 15% by 2020 under its national action plan for climate change.

(iii)  Despite the continued dismal state of US economy, B F Utilities Ltd, managed to add 13 GW of windmill capacities in the year 2012, just a whisker below China. Chinese aggregate windmill capacities surpassed 75 GW whereas that of US crossed 60 GW. India's grid-connected renewable energy deployment, mainly solar and wind, has reached 27 gigawatt (GW), according to a top official of the ministry of new and renewable energy.

(iii) Increasing diesel cost will also work to the advantage of wind energy sector as many industrialists may replace diesel generator sets with wind turbines. The government has set a target to add 30,000 mw of power from renewable energy sources during the 12th Plan period (2012-17) and of which 15,000 mw of power is to come from wind sector. As per current government estimates and targets, renewable energy is expected to account for 16-17 per cent of total power capacity in the country by the end of 12th Plan. B F Utilities Ltd's windmill projects are performing satisfactorily during the year.

(iv) Since, the company is into infrastructure development any cut in the repo rate by the RBI, will have sentimental effect on the share price of the company.  Name of Subsidiaries:

a. The company holds 74.52% in Nandi Infrastructure Corridor Enterprises Limited India as of 31/3/2012
b. The company holds 48.27% in Nandi Economic Corridor Enterprises Limited India  as of 31/3/2012
c. The company holds 69.53% in Nandi Highway Developers Limited India 69.53% as of 31/3/2012.

Looking from all angles, I feel the stock has the chance to go to Rs.450, in the medium term. 

Market Mantra

Tulip Telecom Ltd hits the buyer Freeze in the opening trade. The scrip is flying since the last few days. CMP: Rs.14.40.

When most of the infrastructure companies are moving up, we can expect B F Utilities Ltd (CMP: Rs.256.50) also to be moving up in the next few hours. The company is doing lot of projects and at the same time, it has wind power projects, which are going to get benefited from the recent announcement from the government. Also, the infrastructure stocks are moving up today, on the rate cut optimism by the RBI in the next policy meet.
Kingfisher Airlines Ltd is out of the lower circuits and is currently trying to move above Rs.7, on the new found optimism, that the required funding for the airlines would come from the UB Group and also the debt of the company has come down substantially during the last few days, due to the selling of the shares by the Banks (which were kept as collateral against the loans taken by the KFA Ltd). This will also have a positive effect on the interest cost on the company. It has already clocked in huge volume and this rise shows that there is an appetite for the scrip in the market. I think the retail investors are picking up the scrip of this once reputed airline for some positive development in the coming days. It seems the competitors of the Kingfisher Airlines Ltd tried to use the media to their own benefit, for the reasons best known to all. One of its group company UB Holding Ltd has already hit the upper circuits at Rs.40.60. CMP: Rs.6.80.
Yesterday, the markets performed better than expected. A reasonably flat opening was followed by sustained buying which took Nifty to around 5700 mark. The bulls were in full charge of the things and there was total absence of intraday correction---Nifty_Spot closed with a gain of 121 points. Inability of the bears to break 5475 (Nifty_Spot) level and a rise above 5615 has turned the market trend upwards. Nifty has reentered the zone above 200 DMA. Shares from almost all sectors are participating in the up-move setting an immediate target of 5850 for Nifty. It seems that intermediate correction that started in February has come to an end and uptrend is likely to get resumed. The Investor can continue to hold with their Nifty longs, for a target of 5850 (spot), in the coming days. There could be intra-day correction, which should be used to build up long positions. Nifty_Spot is now trading at 5680, which I am sure will improve in the coming hours.
Resistance: 5750 / 5790
Support: 5670/ 5645
US Equities ended up 1% on Tuesday, after hitting five-month lows on Monday, buoyed by robust earnings by index majors and positive economic data.
In Asia most indices rose as robust earnings by select companies in the US and positive economic data triggered bargain buying. However, the Asian markets are now showing mixed trend.
Fundamentally speaking, the stock indices may trade with a positive bias as the Nifty closed above its crucial resistance of 5650 on Tuesday & higher then estimated profit reported by Reliance and HCL Tech. However, profit booking at higher levels may cap the upside.
Today, Reliance Mediaworks Ltd moved to Rs.51.80 and Reliance Broadcast Network Ltd to Rs.27.80. In case of Reliance Broadcast Network Ltd, there is a positive news: BIG CBS Prime has inked deals with distribution platform providers to expand its reach to 30 mln households.

Positive Developments in the Infrastructure Sector

NHAI (National Highways Authority Of India) is considering measures that could potentially ease the burden on developers and revive several stalled projects. Work on 3,265 km of road projects worth 286.63 bln rupees stalled for about two years will restart soon with the environment ministry delinking environment and forest clearance.  
Now this is expected to help the companies like IVRCL Ltd (CMP: Rs.18.40) and BF Utilities Ltd (CMP: Rs.193.50). I think you also already know that IVRCL Ltd has a humongous order book of Rs.22, 500 Cr and it was yesterday recommended by a marketman for a target of Rs.22-23. 

Now coming to B F Utility Ltd, let me say that it belongs to reputed Kalyani group which is basically into wind power, and which will benefit from the provisions of the Union Budget-2013-14 on Wind Power. However, the real value lies in the Nandi Economic Corridor Enterprises Ltd, (NECE), - implementation of Phase I of the Bangalore Mysore Infrastructure Corridor Project which is a indirect subsidiary of the Company. I am expecting that in the short term the scrip could touch Rs.205--207. Upon crossing Rs.208 and closing above it, it could touch Rs.217-218. 
The company is having a board meeting on 30th of March, 2013. CLICK HERE.
Brief Report: B F Utility Ltd is into wind power. In the latest Union Budget, the FM has again introduced Generation-based incentives, for wind energy projects and Rs.800 Cr has been allocated for this purpose, which augurs well for the company. Also, the "Eligible Date" for projects in the power sector to avail benefit under Section 80-IA extended from 31.3.2013 to 31.3.2014, in the Union Budget for FY14.
The company managed to add 13 GW of windmill capacities in the year 2012, just a whisker below China. Chinese aggregate windmill capacities surpassed 75 GW whereas that of US crossed 60 GW. Europe led the race for offshore windmill capacities with a total of 1,166 MW contributing 90% of the global additions. UK topped the list with 854 MW additions. In Europe, the onshore capacities are also being installed in the eastern and central regions like Bulgaria, Poland and Romania. 
The much awaited extension of Kyoto Protocol upto the year 2020 is expected to bring in cheer to the global carbon market--though still now it is absent. The buyers (designated nations) of carbon credits are required to declare by year 2015 their GHG reduction commitments for the period upto 2020. However, due to the economic crisis in the EU, most of these buyers are reluctant to make commitments and this has led to uncertainty in the markets and has resulted in steep fall in the carbon prices. Having said, that, since the situation of the world economy is improving it is pertinent to note that the things are expected to improve from here. The prices are expected to remain in this range for some time to come, before breaking out. .
Wind Power Development - Domestic Scenario:
In India, the aggregate windmill capacity touched 18.4 GW with the help of 2.3 GW of new capacities during the CY2012.
But this is expected to see a sea change in the positive direction as, the FM has again introduced Generation-based incentives, for wind energy projects and Rs.800 Cr has been allocated, as mentioned earlier.   CLICK HERE.
BF Utilities Ltd. (BFUL) is a part of USD 2.4 billion Kalyani Group. BFUL earlier operated in two business segments – Infrastructure Business and Investment Business. BFUL has undergone business restructuring by way of a Composite Scheme of Arrangement. Under the said business restructuring, the Infrastructure Business has remained with BFUL and Investment Business has been transferred to BF Investment Ltd.

B F Utilities Ltd: Steady Upmove Expected

Union Finance Minister P Chidambaram’s budget sought to breathe life into the wind power sector with reintroduction of generation based incentive (GBI). Presenting the union budget for 2013-14 in the parliament, Chidambaram said: “The non-conventional wind energy sector deserves incentives. Hence, I propose to reintroduce generation-based incentive for wind energy projects and provide Rs.800 crore to the ministry of non renewable energy for the purpose.” 

The government has also decided to provide low interest bearing funds from the National Clean Energy Fund to Indian Renewable Energy Development Agency Ltd (IREDA) to lend to renewable power project developers. Declaring clean and green energy as government’s priority, Chidambaram also said a scheme to encourage cities and municipalities to take up waste-to-energy projects in public-private-partnership (PPP) mode which would be neutral to different technologies would be evolved. The announcement has brought cheers to the players in the sector. They had been demanding this ever since the GBI was withdrawn on April 1 last year. Sources said there was a fall in new installations in the last 10 months. The approximate investment for one MW is Rs.6 crore and the country lost about Rs.10,000 crore in wind turbine installations this year. The company is a major player in the wind energy sector.
The company has a good presence in the infrastructure space mainly in the roads and highway segment as well as the wind energy segment. Given the fact that this company has a very strong presence in Bangalore and moreover the company is part of the Kalyani Group which is a very well respected  with high credibility, we can be fairly bullish on the counter.
It has fallen from a peak of Rs.2,977 in July ’07 to a low of 207.55 on 4th March, 2013. There is an interesting take on the company at CLICK HERE. 

Note: This note was sent to the Paid Members and to those who are having accounts with my recommended brokerage house/s on 6th Mach, 2012.

MARKET MANTRA

Reliance Communications Ltd recommended some days back around Rs.61-62, today touched Rs.65.65. The first target if you remember was at Rs.66.
Glodyne Tech Ltd hits the buyer freeze due to positive conditioned mentioned a couple of weeks back. The bad days are probably over for the company and it should now steadily move up. 

Buy B F Utilities Ltd at Rs.225, T--Rs.285, SL---Rs.217 (exit)...B F Utility Ltd is into wind power. In the latest Union Budget, the FM has again introduced Generation-based incentives, for wind energy projects and Rs.800 Cr has been allocated for this purpose, which augurs well for the company. Also, the "Eligible Date" for projects in the power sector to avail benefit under Section 80-IA extended from 31.3.2013 to 31.3.2014, in the Union Budget for FY14. 
The company managed to add 13 GW of windmill capacities in the year 2012, just a whisker below China. Chinese aggregate windmill capacities surpassed 75 GW whereas that of US crossed 60 GW. Europe led the race for offshore windmill capacities with a total of 1,166 MW contributing 90% of the global additions. UK topped the list with 854 MW additions. In Europe, the onshore capacities are also being installed in the eastern and central regions like Bulgaria, Poland and Romania. Although commercial banks are active in financing windmill projects in these regions, these projects are facing challenges from regulatory risks and inadequate grid capacities.
The much awaited extension of Kyoto Protocol upto the year 2020 is expected to bring in cheer to the global carbon market--though still now it is absent. The buyers (designated nations) of carbon credits are required to declare by year 2015 their GHG reduction commitments for the period upto 2020. However, due to the economic crisis in the EU, most of these buyers are reluctant to make commitments and this has led to uncertainty in the markets and has resulted in steep fall in the carbon prices. Having said, that, since the situation of the world economy is improving it is pertinent to note that the things are expected to improve from here. The prices are expected to remain in this range for some time to come, before breaking out. .
Wind Power Development - Domestic Scenario:
In India, the aggregate windmill capacity touched 18.4 GW with the help of 2.3 GW of new capacities during the CY2012. 
But this is expected to see a sea change in the positive direction as, the FM has again introduced Generation-based incentives, for wind energy projects and Rs.800 Cr has been allocated, as mentioned earlier.   CLICK HERE.
BF Utilities Ltd. (BFUL) is a part of USD 2.4 billion Kalyani Group. BFUL earlier operated in two business segments – Infrastructure Business and Investment Business. BFUL has undergone business restructuring by way of a Composite Scheme of Arrangement. Under the said business restructuring, the Infrastructure Business has remained with BFUL and Investment Business has been transferred to BF Investment Ltd.  CLICK HERE.
Tulip Telecom Ltd hit the buyer freeze in the opening trade. The Paid Members were specifically asked to buy the scrip, from today, as the company's debt restructuring is expected to get completed by the end of this month. 

Voltas Ltd recommeded at Rs.82-83 yesterday, today touched Rs.84.25. The company is doing exceptionally well.

CNI Publication: Weekly Pattern

Nifty opened week in the morning hence the hope of gap up till 5360 receded but it gave good chance to spark many stocks like B F, BGR, Adani, Raymonds,

Century, B Dyeing IFCI etc. Had the market opened at 5360 gap up then certainly we could have seen deeper correction of 200 odd points on Sensex. Thanks God this did not happen.

Praj Pnj, Renuka, IVRCL and JP all fired. The correction now could be short lived and every dip should be a great buying opportunity. B Dyeing will be

the stock of this month as co will post super dooper nos due to realty possession. Co will also exit its old poly biz. Stock may fire till 750. BBTC too will fire in synch. Century will certainly blast as many cement merger deals are happening soon which will set benchmark price of cement. Century’s 50 pc valuations come from cement which cannot be ignored. It will consolidate slowly till 385 to 395 as it was its previous high thereafter it will board super fast train till Rs 550.

Nifty has huge resistance at 5360 though it will certainly break for sure but not before catching traders on wrong foot. Nifty may find support at 5200..

It was flat day for Nifty but many stocks showed strength and character. Traders were hesitant to extent commitment and stocks kept on riding pyramid wave. E g The JET stock was certain to test 500 as I mentioned when it was at Rs 225 and the same stock is now climbing a new high every day. Even ABAN is falling in that category. Whatever is the debt due to sharp depreciation of RE, the same will get corrected as and when RE improves. Soon RE will be at 52 and ABAN at 450 plus. Then the sell of power BIZ will come for Rs 550 600 crs and ABAN will fly to Rs 500. Then the restructuring of FCCB will come and stock will show heaven to you ALL FIRUNG brokers had given target of USD 60 plus and USD took U turn proving that what they say never happens. Most of the stocks which were downgraded are shining today whether it is HDFC, RIL, SBI, DLF, RENUKA or IVRCL.

Just before settlement Nifty was consolidating at 5150 giving comfort to short sellers that 5180 is big resistance and it will never be breached easily. Then came the came the MONSOON First day First Show (HORROR Friday) which showered 450 point rally crossing all the barriers. Nifty crossed 5300 and once again tiny chartist community tried to break the Nifty rhythm for the last 2 days but Nifty seems have some different plans.

Traders still going short in Nifty at every level under the bonafide belief that 5360 will never be crossed. Once again we may see GAP UP crossing over 5360 which will open the door of 5700 which is near the FEB high. This will be called DOUBLE TOP like they say DOUBLE BOTTOM.

Congestion zone continued for Nifty as it is shying to cross 5360. The big game in under planning. Most of the street players are going short every day thinking that market is tired and will now re test 5150. But at the end they cut short in Nifty.

But this view of correction has made them go short in many stocks which are in fact firing due to short trapping. The hungry bulls wants that you should short and they are just allowing the accumulation of shorts to make big games.

I had given buy in PRAJ at 53 cmp 63 and now the order buzz of Rs 600 crs was floated in the market. This has happened only because the drivers could catch many street guys short on the counter. Street guys include the FII where they too are shorting and getting trapped.

The patience will get over tomorrow for bears and the expected news flow will make them cut short and go long in Nifty and chances of gap up not ruled out. Any time we may see 5500 now hence selling would never be a wiser course for street players. Still if you wish to short then sell weak stocks like pantaloon and VIP as ideally best hedge short. If market tanks these stocks will correct more than 20%.

My sources say that P M has cleared GAAR with specific directions. It says all P notes and FII will be tax free if they are covered by treaty country else all other trades will be taxed. This could be a right step in right direction and can open gates in inflow for at least 10 bn usd. That means Re will at 52 or even 50.

EU may not be reducing interest rates today but China has cut interest rate. This will be good for Indian markets too. Ruling party has announced that they will go for Fdi in retail in congress ruled state as they are getting opposition from OPP parties. It means this is a face saving act. The GAAR clarification too is a face saving act. These 2 acts suggest that the ruling party is seriously considering taking some major steps which will boost FII inflow. This also suggests MADAM was fully aware the EX FM failed to keep the mood good and went with wrong notions even against MADAM which facilitated for his promotion. This always is protocol in the Govt to give promotion and transfer when somebody fails

Montek Singh could have taken over as new FM but considering the current state of economy it was given to the Hon’ble PM only. The first thing he did is that GAAR is going away from P notes. FDI is coming in retail as well as C A sector. Hopefully even the rate cut will come soon.

Monsoon is not failed in India. Last several years we are getting deficient water in June thanks to global warming and change of cycle by one month. Earlier we used see end of winter on 14th Jan now a days till March end. Media unnecessarily making hype out of it and retail investors are unnecessary reacting.

I had told you that B gr rally will start and all B gr shares have moved up by 10 to30 pc in last 4 days. This will continue. Nifty can just blast if it cross 5370 and can crash if break 5280 so keep this range. Once again repeating for your benefit does not fall in the trap of charts and small bear corrections as market is ready to blast. Any correction should be used to buy only. Trade only at 50 pc of your capacity and conserve 50 pc for correction even though it will not come. Correction has a thumb rule when desired never comes. Right now since nobody is able to participate and if participating getting out at every 2% profit and looking to short, I feel market will not correct.

B F Utilities won in the S C ( order flashed on CNI site ) could open doors to Rs 800 as uncertainly is over once for all. Though this had tested Rs 2000 earlier on this news only. We were aware of the order hence generated buy at 379 and again at 400. 

But street has 2 kinds of people one always negative saying that this will not happen and we will buy only on news. Now they will come for buying tomorrow at 475 Rs 100 premiums. This is what stock market is known for.

WINNING STROKES: THINK DIFFERENT

The Nifty touched my target of 5000 given last week as it closed at 5018, up 62.60 points from  yesterday's close. I congratulate all those blog visitors who made money from my Nifty call. Now most of the doomsday predictors  have mud on their faces--this is for all those bookish "Chartical Masters", who gives a damn to the fundamental analysis. With rupee appreciating, inflation decreasing, election round the corner, etc---does any need to be a rocket scientist to understand that the market would move up??!! Now the next target is 5200, which I think the bulls would amble past easily.  It is now given that in the next RBI meet, it would either cut CRR or go for status quo---hence there is as such no negative  news in the markets. 
But yes, I sympathize with those who say, that: with the kind of Finance Minister we have and a "blind and half dead", Prime Minister at our disposal, the BULLS really have some concern!! The bull run of 2008 was due to the hard work of the previous NDA regime, which these people reaped without doing much. In the next tenure, what the UPA did till now is known to all and how they  went on destroying businesses and Industry in the name of controlling inflation!! Now these fellows are asking for people to vote them in Power---Huh!! Strange are the ways of life......you do nothing and then go to people and beg for votes....!!

My recommended Aban Offshore Ltd recommended at Rs.388, this week, almost reached its target today, as it touched Rs.446.15.

Allied Digital Services Ltd recommended at around Rs.28--28.5 today touched Rs.30.85 before cooling down a bit. The long term investors should use every dip to buy this jewel. The stock is expected to move above Rs.50, within a short time. Therefore, keep  holding and accumulating the scrip.

Today, B F Utilities Ltd touched Rs.377, I have new target for the scrip as Rs.700. Investors should use every dip to accumulate the scrip.  If anyone, wants to marry within the next one year and is running short of cash, then they should buy this scrip and keep accumulating--Rs.5 lakhs invested now would give them another Rs.3-4 lakhs after one year. 

Market Mantra
[Updated]

It was in line with expectations yesterday, as the bulls took a natural breather, after a long run. This kind of profit booking as good for any market to form a base to move to the  next higher levels as fresh money enters the markets which were generally looking for opportunities to enter.
Market remains strong above 4900 level and yesterday's small profit booking has given the bulls to come back with vengeance once again. Today, after crossing the psychological barrier of 5000, the chances of Nifty breaking up the 5200 mark on the upside looks more pronounced. Thus my first target of 5000 has been achieved. Strong pullback from 4700 level supported by sustained trade above resistance area of 4800 shows end of intermediate correction and beginning of short term uptrend in the market. The traders are once again suggested to exit your short positions and be long on Nifty. Those who had done that in my earlier call must be laughing their way to the bank, as the Nifty crossed 5000. Therefore, this is not the time to sell shares but accumulate with 3-6 months perspective.
The Price of the Paid Services is going to increase from 1st February, 2012. Hence, those who want to renew or take fresh subscriptions, should do it before  this stipulated date. Also, some seats are open for Profit PMS; if anyone has a portfolio size of more than Rs.5 lakhs (for NRIs it is 15 lakhs), they can send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. Those who have sent me mails for fresh subscription, should give me a couple of days to respond.
US markets closed up by almost 1% on the back of better than estimated results from banks like Goldman Sachs & Wells fargo. Apart from better earnings Euro also supported the upmove on news that IMF will fund $ 500 Mn to aid EU.
Asian stocks rose for a third day after confidence among U.S. home-builders beat estimates and the International Monetary Fund said it plans to expand its lending resources to counter Europe’s debt crisis.
Stocks to watch out for in today’s trading session are:
• (+VE) DEN NETWORKS: Reliance Strategic Investments, a subsidiary of Reliance Industries, has bought 1.14% stake in the company.
• (+VE) KINGFISHER AIRLINES: Is in talk with Hong Kong's SC Lowy, which may invest around $280 mln in the airline.
• (-VE) BHARTI AIRTEL: Says it has not flouted any norms pertaining to tax on payments made to international operators and will take legal action on a 10.67-bln-rupee demand notice sent by the income tax department.
Those who could buy Allied Digital Services Ltd (ADSL) yesterday, can try today at around Rs.27.70--28, the stock is will give fantastic returns going forward. The company has ventured into new line of business where the margins are much higher and the competition is much less.Going forward, with change in customer's demand more towards value added services for their business, ADSL is in process of transforming itself in terms of systems & processes, people and the business mix targeted to address new opportunities & challenges, and expects its FY13 Revenues growth & EBITDA margins to improve due its initiative to shift its focus with changing market environment. It had also last year announced a share Buy Back plan to boost investors' confidence. Also, it has been observed that the core business of IMS/MSS is intact with the JV with e-Cop being a case in point. Company also indicated of no further write-offs in the foreseeable future. Moreover, growth expectations have now been set right with a more achievable guidance and pragmatic commentary. Last year an IT survey was misconstrued as IT Raid and hence there was minimal impact. To elaborate on the issue, it is learnt from the sources that an income tax team, as a part of its routine survey, had visited the official premises of ADSL in 2011, to check its books of accounts on concern of expenditure manipulation. According to the management, this survey, misconstrued as ‘raid’, concluded the same day with no prima facie evidence and no documents seized. Even the Company later re-assured of minimal impact of the IT Survey on its financials. Hence I am expecting it to cross Rs.45--50 in the next 3-4 months time frame. Also, if anyone has still not averaged the scrip having purchased at higher price, they should to it immediately.
Those who are holding  B F Utilities Ltd can continue to hold as the scrip is showing strong momentum on the upside. With the Crude Oil threatening to cross $100 per  barrel this scrip offers great opportunity for the bulls. I have now given a fresh target of Rs.425--450 for the scrip.
Those who are holding Northgate Technologies Ltd at higher levels should complete the accumulation of the scrip, as the company is going to finish the amalgamation of its entities within the next 3 months time frame, according to my close sources. This restructuring of the company's subsidiaries is positive for the shareholders. The scrip is trading now at Rs.8.80 and it gives enough room to make good money in the next 6 months time frame if averaged at the CMP.
Today a brokerage house has recommended a buy on INFOTECH ENTERPRISES Ltd at the CMP of Rs.125, T--Rs.163.  Meanwhile the company is planning to set up a 700-seater development centre at a special economic zone in Hyderabad by March.
Yesterday, a brokerage house recommended HDIL for a target of Rs.77. Those who are holding the scrip should look at the opportunities to average. 
 Investors can start accumulating IFCI Ltd around Rs.25.5--26, for a target of Rs.32. The scrip has long consolidated in the price range of Rs.24.5--25.
I had mentioned in my earlier mails that the generally after a huge market crash, some form of sanity for the bulls generally starts from the 4th year. Therefore, I hoping that 2012 would be much better than 2011 and it would herald the beginning of a new BULL phase in Dalal Street. We  have already decoupled from the rest of the world, having performed the worst against the world average. Now it is our turn, but then we need  a pragmatic government at the centre to take stock of the things and act fast.