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GAMC No. :1703/2015-17. Issued by SSP Ahd. Valid up to 31-12-2017


VOL : 8

Issue No: 13

RNI No : GUJENG / 2008 / 24320

18th May to 24th May 2015

The stock market may witness


only one sided movement from Tuesday
The market seems to be settling down after witnessing two sided vola- Markets Outlook
tility on May 13. The market closed at 8261 after the market witnessed a
Bharat Dalal
narrow movement and the difference between spot and future nifty got (Chartist-Columnist) (M. 09930601288)
Bharat Dalal
vanished the market will witness only one sided movement. The moveis connected
ment may by 99% in favour of bull run because market has witnessed
with Stock marimprovement at lower level. It indicates that people are buying at low
kets since 1987.
He is regularly
level and planning for the bullish trend. PSU bank shares have also
contribution in
improved on optimism of rate cut, which also led bank nifty and nifty
towards improvement. Indian Rupee is also gaining strength against Dol- Gujarati Mid-Day & Divya
lar. Hike in petrol and diesel prices are likely to provide much needed Bhaskar News Papers
boost to index heavy weight Reliance and ONGC. Most important reason for improvement in the
market is that people are not ready to sell at current market rate.
The new week is 21st, in which high and low prices will work as stop loss for next seven years.
Therefore, market opening on Monday is very important. So trade on upper price than that and
consider stop-loss at 1% down the Monday opening.
BSE Sensex (27324):- On upward movement, beyond 27206 it may go up to 27370, 27660 and
27930. On downward movement, below 27252 it may go down to 27196, 27060. Working on 22nd

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SMART
INVESTMENT

18th May to 24th May 2015

will be important.
Nifty Future (8261) :- On upward movement, beyond 8238 it may go up to 8300, 8338 and
8380. On downward movement, below 8219 it may go down to 8176 and 8120.
Bank Nifty :- It may be in support zone between 18060 and 18110. Beyond 18170 it may go up
to 18360, 18425, 18670, 18060, 17962 and 17740.
BATA :- Beyond 1050 buy with stop-loss at 1041. On upward movement, beyond 1070 it may
go up to 1110.
Axis Bank :- Monday working will be important. Buy when it crosses 557 with stop-loss at 553.
On upward movement, beyond 576 it may go up to 590.
Aurobindo Pharma :- Hold buying with stop-loss at 1310. On upward movement, beyond 1340
it may go up to 1378 and 1409. Keep an eye on working on May 20.

SMART

18th May to 24th May 2015

INVESTMENT

Jatin Sanghavi

Market Scan

(Mumbai)
(M) 098205 26455
jatinsanghavi100@yahoo.com

Kissing the Neck-Line


8300-8355 : Immediate Resistance Zone

Just as was the case in the previous week, both the indices made a dash towards the neckline
(of the Bearish Head and Shoulders) on Monday; and fell on Tuesday making a big bearish candle
in line with the downtrend. This was the second time the indices went to kiss the neck-line and
made a lower top (Sensex 27544 and Nifty 8332). This is way of confirming the bearish pattern
breakout and it has been done twice. As things stand now the zone between Sensex 2754427603 and 8300-8355 will act as immediate Resistance zone.
Technically Speaking :- Sensex opened the week at 27249, made a high of 27544, low of
26750 and closed the week at 27324. Thus it closed the week with a gain of 219 points. At the
same time the Nifty opened the week at 8243, made a high of 8332, low of 8089 and closed the
week at 8262. Thus the Nifty closed the week with a gain of 71 points.
On the daily charts, both the indices have formed a small white body candle on Friday, which
seems to be a part of the Falling Three Methods as the small bodies of last three days are within
the trading range of the Tuesday's big black body candle. The pattern will get complete if a big
black body candle forms on Monday. On the weekly charts, once again a white body Spinning Top
has been completed which is a neutral formation. Thus last weeks Homing Pigeon required a
confirmation in the form of a real white body candle which did not happen this week, as a result the
Homing Pigeon could not get confirmed. Thus daily as well as weekly candlestick patterns point
towards further consolidation with a bearish bias.
Currently the market is witnessing a pull-back of the immediate fall from Sensex 29094 to
26423 and Nifty from 8844 to 7997 and the relevant pull-back levels are placed at Sensex 2744427759-28074 and Nifty 8320-8420-8521.
In last two weeks, the indices have twice tested the neckline of H&S pattern and retraced from
there. In the process two lower tops have been registered (Sensex 27544 as compared to 27603

:::: INDEX LEVELS ::::


NIFTY
SENSEX

S3
7961
26469

S2
8065
26776

S1
8167
27051

Close
8262
27324

Name
TCS
ACC
JSW St.
Havells
REC

CMP
2511
1472
876
271
295

SL
2565
1503
903
277
301

TGT-1 TGT-2
2430 2347
1426 1379
835
793
261
250
285
274

R2
8470
28044

R3
8574
28384

Last Weeks Recommondation

This Weeks Recommendations


Rec.
Sell
Sell
Sell
Sell
Sell

R1
8355
27703

Sell
Sell
Sell
Sell
Sell

Stocks
Grasim
TCS
M&M
IGL
PFC

Reco.Price
TGT Reached Lot Size
3493 3383 3456 125
2527 2460 2480 125
1180 1144 1170 250
398 383 395 1000
256 248 252 1000

Total

Profit
4625
5875
2500
3000
4000

20,000

SMART
INVESTMENT

18th May to 24th May 2015

and Nifty 8332 as compared to 8355); which are now coinciding with the 200dma (Sensex - 27588
and Nifty - 8300) along with 38.2% Retracement level i.e. Sensex 27444-27603 and Nifty 83008355 will act as resistance zone going forward.
This week both the indices managed to stay below the important long term average of 200dma
(Sensex - 27588 and Nifty - 8300), medium term average of 50dma (Sensex - 28100 and Nifty 8521) as well as the short term average of 20dma (Sensex - 27369 and Nifty - 8283). Thus the
trend in the short term, medium term and also the long term timeframe continues to remain down.
Both the indices are progressing towards target of Bearish Rising Wedge pattern which falls at
26049 for the Sensex and 7882 for the Nifty. Besides this, both the Sensex and Nifty had also
completed an Ascending Broadening pattern and the target for that pattern is at Sensex 25034
and Nifty 7533. Coupled with this, both the indices have also completed a Head and Shoulders
pattern and the target as per this pattern is at Sensex 24486 and Nifty 7425.
MACD has signaled a buy this week whereas Price ROC is negative and continues with its Sell
signal. RSI (46) has moved higher but still suggests bearish momentum. Stochastic Oscillator %K
(56) is above %D, thereby continuing with its Buy signal. MFI (54) has just gone above the equilibrium line suggesting positive money flow. OBV continues to make lower top lower bottom formation. ADX has increased to 25, suggesting that the current downtrend is gaining strength. Directional Indicators continue with its Sell signal as +DI remains below -DI. Thus Oscillators are giving
mixed signals thus suggesting consolidation with a bearish bias.
Options data indicates highest Call Open Interest buildup at the strike of 8500 and highest Put
build-up is at the strike of 8000. Thus Option data suggests a wide trading range with support
coming in at 8000 and resistance around 8500.

Sell Havells : 271 : SL 277 ; TGT : 261-250

SMART

18th May to 24th May 2015

INVESTMENT

Terrific Shots
SML Isuzu (Rs. 1170.00) (Code: 505192) :- The commercial manufacturer company
was incubated in 1983 as Swaraj Mazda and it was named as SML Isuzu in 2011. Sunimoto holds
44% and Isuzu Motors Japan hold 15% holding. It is considered pioneer in complete buses, ambulance and customized vehicles. The company inked a pact with SBI for vehicle finance across
the nation. It has obtained A-1+ rating from ICRA for short term borrowing. For some time the FIIs
are very bullish in this stock, increasing their stake from 0.25% in last quarter to 0.77% in this
quarter. The company recorded net profit of Rs12.77 crore on turnover of Rs321.54 crore thus
achieving EPS of Rs35.19 on equity of Rs14.48 crore. It may give handsome return in short term.

Bharat Forge (Rs. 1271.00) (Code: 500493) :- The Kalyani Group's stock has been
marching ahead uninterrupted. The stock prices went up to Rs1362.9 and down to Rs435 during
the year. Majority of the fund managers and FIIs are bullish in this stock. It manufactures automobile, power, oil and gas, rail, marine, aerospace, construction and mining sector products. It has its
plants in India, China and Europe. The company is ranked in the four largest forging companies of
the world with capacity of 7 crore TPA. In December quarter the company's income increased
from Rs857 crore to Rs1217 crore, while profit increased from Rs94 crore to Rs196.34 crore with
EPS of Rs8.43. It may cross Rs1500 level in coming days.

Sintex Ind (Rs. 109.00) (Code: 502742) :- The 'B' group company with face value of
Rs1 a share has witness 52 week high at Rs136.40 and a low at Rs59. In FY2015, the company's
income increased from Rs5864.47 crore to Rs7034.77 crore while profit increased from Rs364.70
crore to Rs528.81 crore with EPS of Rs14.43. The stock is being quoted at PE of 7.55. It is also
being traded at much below rate compared to its all-time high rate of Rs308. The company has
declared 70% dividend. It has witnessed record sales and profit in FY2015. The company has
gained a lot on export front. The stock can give good returns in long term.

Motheson Sumi (Rs. 495.00) (Code: 517334)

:- The biggest auto ancillary company supplies component modules and systems to automobiles sector. Its product portfolio includes encopresis electrical distribution system, polymer product and complete module system. It
has its presence in 25 countries with 124 plants. The company enjoys investor friendly status with
paying regular dividends. In FY 2015, the company's sales increased from Rs30721.01 crore to
Rs35031.89 crore, while profit increased from Rs764.97 crore to Rs862.47 crore. The stock is
being quoted at PE of 50. Based on the strong financial results the stock is achieving newer
heights and it may continue its strong performance on the bourse in coming days as well.

Buy... Buy...
Bank of Mah.

41.00

The Byke

166.00

A.B. Nuvo

Magma Fincorp.

93.00

INOX Wind

468.00

BPCL

Subros

60.00

Sharda Crop.

343.00

Ajanta Phamra

Mirc Electronics

16.00

Bharti Infra

409.00

NCC

96.00

Orient Cement

Kokuyo Camlin

92.00

Gabriel India

80.00

ADF Foods

70.00

Marg Ltd.

11.00

Crompton Greaves 170.00

Sell on High

Hold

Buy on Dips

1842.00

ABG Shipyard

178.00

765.00

Tata Power

1294.00

Dena Bank

51.00

Dr. Reddy

3491.00

JSW Steel

875.00

175.00

EMAMI

1029.00

HEG Ltd.

208.00

D-Link

215.00

Mahindra Life

Indian Bank

159.00

Talwalkars

340.00

Gillette

NTPC

136.00

Man Ind.

70.00

Grasim Ind.

465.00
43.00

72.00

3553.00

IOC

336.00

11874.00

DLF

124.00

Union Bank

164.00

Shree Cement

Oriental Bank

211.00

NBCC

772.00

IDEA Cellular

173.00

Zydus Wellness

971.00

Vedanta

210.00

Just Dial

1070.00

SMART

18th May to 24th May 2015

INVESTMENT

Chart Buster

By Talaksi Gosar
(Mumbai)

Sensex inches up in consecutive second week on rate-cut hopes


Uptrend likely to stay as negative factors have been factored in
Although reluctantly, the Indian stock markets continued to inch up in the second week in a row.
The BSE Sensex which had moved up by 94 points in the previous week, rose by another 219
points in this week, thus taking the total to 312 points in couple of weeks, only ten per cent of the
loss that it had suffered in the preceding four weeks.
Under the impact of the previous week's rallying mood and especially a jump of nearly 506
points on the BSE Sensex on Friday of that week, the Indian stock markets commenced trading
for the week under review, with a highly positive note and notched yet another gain of 402 points
on Monday.
It was such a swift rise in the markets that attracted selling in the form of booking profits by
short-term traders that sent the market barometer back by 630 points on Tuesday, its biggest fall
since March 26. On Tuesday, the markets plunged to close below 27000 mark. Prior to Tuesday's
fall, the Sensex had gained by over 900 points in the preceding two trading sessions.
In view of the ongoing Parliament session ending on Wednesday and the crucial bills such as
Goods and Service Tax Ammendment bill and Land Acquisition bill being once again stalled due
to strong opposition in both the houses, a general feeling was born that the Modi-led Government
would not be able to implement economic reforms and that could result in flight of foreign capital
from the markets. This also meant that the Government was compromising on these bills by
referring them to the Select Committee of Parliament and hence delaying the much talked about
economic reforms as promised by the NDA Government.
Correction in other Asian markets also had its toll on the Indian markets. On Tuesday, most
stock markets in Asia ended with a negative bias and overnight the Wall Street also ended lower
as investors fretted about Greece's precarious financial condition and slowing growth in China
while energy stocks fell on weaker oil prices.
The rupee which rose to a high of Rs 63.85 against US Dollar on Monday, again slipped back to
64.27, taking it closer to its yearly low of 64.28 hence raising worries that foreign portfolio outflow
may create a vicious cycle between rupee and domestic shares, fund managers feared.
Despite gains in the last two trading sessions, FIIs were net sellers in the equity markets to the
tune of Rs 270 crores in the last two trading sessions (ending Tuesday). And in the last 17 sessions they have sold shares worth over Rs 14,000 crore. A clarification issued by the Income Tax
Department on the MAT issue did not provide any solace to foreign institutional investors. FIIs
were not sure that the government would forgo the tax claims for ever. Caution also prevailed
ahead of factory output growth and retail inflation data due later in the day.
Corporate earnings so far have been below the street estimates. Analysts said corporate earnings need to catch up with the current market valuations as markets had already factored in
improved earnings, whereas earnings are not expected to improve by Setpember-December quarter
which weighed on the overall market sentiments.
US job growth rebounded in April and the unemplyment rate dropped to a near seven-year low
of 5.4 per cent, signs of a pick up in economic momentum that could keep the Federal Reserve
Bank on track to hike interest rate this year. Rate hike by the US central bank may lead to outflow
of capital from emerging markets like India into US bonds which give a higher risk free return.

SMART
INVESTMENT

18th May to 24th May 2015

All these negative factors including the spoiled market sentiments were fully reflected when the
markets fell by 630 points on Tuesday and therefore, they once again rallied by 374 points on
Wednesday. On Thursday a small decline of 45 points was registered in volatite trading but the
last day of trading brought a relief when the Sensex rose by 118 points.
Thus it turned out to be a second consecutive week in which the Sensex has gained. In the
meantime, the consumer price inflation eased to a four-month low of 4.87 per cent in April on
slower annual increase in food costs, government data showed on Tuesday after market hours.
The IIP numbers also showed decline thus raising hope of an interest rate cut by the Reserve
Bank of India on June 2, when it comes out with a fresh monetary policy. A few optimists also hope
that the banking regulator might come out with interest rate cut even before the pre-scheduled bimonthly review meeting. Meanwhile car sales rose by 18.14 per cent in April, the fastest rate of
growth in 30 months as the auto industry continued its journey on the road to recovery riding on
improved consumer sentiments, new models and favourable fuel prices. The Moody's rating agency
said India growth story remains intact as it will grow at a strong pace of 7.5 per cent in financial
year 2015-16-the highest among G20 nations helped by reforms drive and lower oil prices.
Thus the markets have already fully discounted whatever negative factors and have readied for
a fresh upmove. The FIIs are also expected to stop selling unabtedly as on one hand prices of
shares have gone down too low and on the other hand, their problem of MAT is being resolved as
the finance minister has already appointed a committee to look into the matter and when the
Government appoints such committee, it necessarily means that the outcome would be in favour
of the FIIs. The meteorology department has forecast that the Monsoon this year is going to
commence in time and would be satisfactory. It said that the Monsoon is expected to hit Kerala
coast by 30th May. This coupled with a likely rate cut in June 2 meeting of the RBI is sure to make
the markets go up and inspire shrewd long-term investors to mop up investment worthy scrips
from the new week onwards. So, it is likely to be a positive trend in the next week and therefore,
investors are suggested to adopt a buy and hold strategy if they wish to make sure and handsome
gains out of the markets.

State Bank of India :- State Bank of India's Re one paid up share had fallen to a low

of Rs 145.60 (adjusted on ex-split basis) in Mid-February, 2014, and then entered a bullish trend
to have risen up to a high of Rs 335.90 by January 28, 2015. After having risen so swiftly, the
share attracted selling and gradually slid to a low of Rs 255.25 by March 25. Since the share being
primarily bullish it attracted value buying at beaten down prices and started going up once again
on hopes of a interest rate-cut if not earlier then latest by June 2, when the Reserve Bank of India's
board of governors is scheduled to review monetary policy. The rate cut hope sent the share of
State Bank of India up to a high of Rs 288.10 on Friday before closing at Rs 287.35. The Reserve
Bank of India is expected to come out with a rate cut this time as the inflation rate at both levels,
retail and wholesale, has come down and the IIP numbers have declined, both being pre-requistite
for a rate cut decision by the banking regulator. Since State Bank of India is the biggest bank, it
would be the biggest beneficiary of a rate cut and therefore suggested to be picked up for medium
to long-term investing.

Indian Metals :- Indian Metals is a company engaged mainly in mining and metals and

doing well on financial front. The Rs 10 paid up share of Indian Metals had fallen to a low of Rs
137.60 in Auguist-September, 2013, when the markets also reached their final bottoms before
entering the latest unprecedented stock market boom. After having joined the general uptrend in
the markets, the share rose upto a high of Rs 260 by September 6, but failed to keep pace with the
market and instead faced selling pressure that kept it under check for a long time. The failure in
keeping pace with the markets, was transalated into a bearish phase in the scrip as a result of
which it once again resorted to a down trend and reached a low of Rs 144.10, a level that was just

SMART
INVESTMENT

18th May to 24th May 2015

close to the previous low of Rs 137.60 and thereby a double bottom pattern was formed on its
daily chart. The double bottom pattern in Indian metals worked wonders as the share then jumped
up and reached a high of Rs 269 in just 10 trading sessions. Such a swift and massive jump
attracted selling and pushed it down to a low of Rs 177.20 by Wednesday of the last week but it
basically being a bullish stock in technical terms, once again started rising and reached a high of
Rs 201.70 and closed there in a buying freeze. The share has thus indicated a possibility of going
further up and therefore recommended for buying for short-term trading gains.

Nilkamal Ltd :-

Nilkamal Ltd. is a leading plastic processing company whose Rs 10


paid up share had fallen to a low of Rs 94-95 level in August, 2013, in line with the general markets
and then entered into a bullish phase which is continuing to prevail even till the last trading day of
the week. After having entered into a rising trend, the share of Nilkamal Ltd. has continued to go
up, albeit, with small and short-spanned technical corrections. On Friday of the last week, the
share of Nilkamal Ltd. scaled to a new high of Rs 531.80 before closing at Rs 519.20 and thereby
displayed a distinctively strong uptrend. The underlying strength thus revealed is expected to take
it further up in the days to come and therefore the share is suggested to be picked up for meduimterm investing.

SMART
INVESTMENT

Stock Wave

18th May to 24th May 2015

Sarvesh Ashok Trivedi


(Mumbai) (Mob) 09820728124

www.chartsanketstock.com

Index may witness important support


at 26948 and Nifty Future at 8143
BSE Index (27324.00) :- It is moving downward from top of 29044.61. It shows neutral on daily
basis, oversold position on weekly and monthly basis. On upward movement, beyond 27380 it may go
up to 27425, 27545, 27604, 27760, 27930, 28100, 28430 and 28600. On downward movement, below
27160 it may go down to 26948 with 26750 showing weak condition.
Nifty Future (8261.20) :- From top of 8873.65, it is moving downward. It shows neutral position on daily basis, while oversold on weekly and monthly basis. On upward movement, beyond 8296
it may go up to 8333, 8375 as resisting level and beyond that it may go up to 8450, 8500, 8550, 8600
and 8660. On downward movement, below 8215 it may go down to 8143, 8096 with support at 8020.
Below 8143 level shows weak condition. 200 days' EMI is 8216.
Bank Nifty Future (18763.10) :- From bottom of 17286.10, it is on sidewave. It shows neutral
position on daily basis, while oversold on weekly and monthly basis. On upward movement, beyond
18268 it may witness resisting level at 18330 and beyond that it may go up to 18425, 18540 and
18650. On downward movement, below 18000 it may go down to 17970, 17850, 17740, 17586 as
weak position indicator.
Bharat Forge (1271.05) :- Having touched 1175 level on downward movement, the stock is
improving its position. It shows neutral position on daily and weekly basis, while overbought position
on monthly basis. On upward movement, beyond 1325 it may witness important resisting level at 1363
and beyond that it may go up to 1430. On downward movement, below 1265 it may get support at
1250.
M&M (1249.05) :- From bottom of 1137.70, it is going up. It shows overbought position on daily
basis and oversold position on weekly and monthly basis. On upward movement, beyond 1280 it may
go up to 1290. On downward movement, it may get support at 1200.
MRF (36552.00) :- From bottom of 34702 it is witnessing slow improvement. It shows neutral
position on daily basis, while oversold position on weekly and monthly basis. On upward movement,
beyond 36873 it may go up to 37000, 37440 and 38100. On downward movement, it may get support
at 35205.
SBI (287.45) :- It shows slow improvement from 259.65. it shows towards overbought position on
daily basis, while oversold position on weekly and monthly basis. On upward movement, beyond 286
it may be in range of Rs290 to Rs295. On downward movement, below 281 it may get support at 275.
Wockhardt (1309.20) :- It is on sidewave movement after touching 1194.40. It shows oversold position on daily and weekly basis, while overbought to neutral position on monthly basis. On
upward movement, beyond 1345 it witness resisting level at 1371 and beyond that it may be in range
of 1435 to 1468. Don't have bearish outlook.

Golden quote :It is during our darkest moments


that we must focus to see the light

SMART
INVESTMENT

Dilip Davda
e-mail
dilip_davda@rediffmail.com

18th May to 24th May 2015

10

Best Buy

Experts Eye

Relaxo Footwears
Camlin Fine
Motherson Sumi

Roller Coaster week end in green

It was a roller coaster week that finally managed to close in green. Positive trends were
largely attributed to rising hope for rate cut as CPI and WPI has eased and Rupee too firmed
up a bit and gave a sigh of relief. With both end movements high volatile trades took place that
tested higher lower bottom for the week. Although global worry continued, market is pinning
hope for speedy action for reforms as India has lost its most preferred destination and
underperformed amongst Asian markets. IIP remained negative and inflation eased that boosted
belief for rate cut from RBI in its June first week meet.
In the high volatile week BSE Sensex and NSE Nifty moved in the range of 27544.2426750.01 and 8332.75-8089.80 respectively.
Secondary Market :- With higher opening on Monday markets maintained gaining momentum for the first session of the week. BSE Sensex scored 401.91 points to end the day at
27507.30 and NSE Nifty gained 133.75 points to close at 8325.25. FII turning net buyers
helped market to score with surge in Metal, Pharma, Auto, Banking heavy weights counters
coupled with rate cut by China Bank reports and likely postponement of rate hike by US Federal Bank. Relaxo announcing 1 for 1 bonus with 100% dividend boosted it to mark upper
circuit. Sri Amarnath Fin got listed on BSE. Rasi Electrode turned ex-split (5 for 1). Relaxo
Footwear and SRS both announced liberal bonus in the ratio of 1 share for every 1 share held.
With divergent opening on Tuesday market nosedived post noon as the day progressed
and indices lost heavily. BSE Sensex lost 629.82 points to close at 26877.48 and NSE Nifty
mirrored similar trends with a deficit of 198.30 points to end the day at 8126.95. Rupee turning
week to market Rs. 64.20 a dollar punctured the sentiment and all out selling took place
amidst global concerns over Greece issue and uncertainty at domestic front over important bill
passage. Surge in Crude Oil prices added fuel to the fire. Metal, Banking, Auto, Capital Goods,
counters lead the doom. Mid and Small cap too lost the charm with heavy sellouts. FIIs net
buying status failed to charm the market.
On Wednesday markets opened higher with a gap and gained on short coverings. BSE
Sensex marked gain of 373.62 points to end the day at 27251.10 and NSE Nifty scored 108.50
points to close at 8235.45. Short coverings in fancy counters of Capital Goods, Auto and
Banking lead the rally and got support from select Mid and
Small cap counters. Market breadth turned positive. In last
three sessions, we marked roller coaster ride for indices.
Crescent Leasing got listed on BSE.
Bonus Announcement
With divergent opening on Thursday amidst volatile
Relaxo Footwear (1 : 1) trades, indices finally closed in red. BSE Sensex lost 45.04
points to close at 27206.06 and NSE Nifty marked deficit of
SRS (1 : 1)
mere 11.25 points to end the day at 8224.20. India emerged
Shivam Auto has convened as the under performer among BRICs countries. Auto
board meeting on 18.05.15 to counters surge failed against doom in IT counters and thus
market closed in red. However, Mid and Small cap counters
consider bonus issue.

Ex - Split
Rasi Electrode (5 for 1)

SMART
INVESTMENT

18th May to 24th May 2015

11

marked value buying from bulls even when FII remained net sellers. Banking counters marked
PSU v/s Private sector bank game of punters. UFO Moviez got listed on BSE and NSE and
closed at a discount of 4% plus and raised concern for primary market.
On Friday markets opened in green and week trader's short covering helped it to end the
day as well as the week in green. BSE Sensex gained 117.94 points to end the day at 27324.00
and NSE Nifty scored 38.15 points to close at 8262.35. Auto counters commanded rally and
got support from FMCG sector fancy scrip as IMD forecasted early rains. Metal and Mining
counters remained weak on profit bookings at every rise. Positive corporate reports boosted
counters like Take Solutions, KNR Constructions, Cadila Health, Nectar Life, Grindwell, Dhunseri
Petro, Stride Arco etc and negative trends dampen counters like HDIL, Zydus Wellness, HEG,
Apar Ind, Tata Steel etc. Index heavyweights gaining momentum helped indices to close in
green.
With high volatile trades during the week, indices marked net weekly GAIN of 218.61 and
70.85 points in Sensex and Nifty respectively.
Rupee moved around of Rs. 64. a dollar, and Crude Oil remained volatile amidst Greece
crisis. Failure of Land Acquisition Bill, GST passages dampen the sentiment and India lost
most preferred destination amongst BRICs countries and remained underperformer. Now unless speedy actions on reforms are not shaping out, market is not likely go gain momentum.
Well it marked green pasture only on two counters i.e. IMD's forecast of early monsoon and
rising hope for rate cut by RBI as CPI and WPI inflation cooled down.
Under the given scenario, BSE Sensex may move in the range of 28100-26200 and NSE
Nifty between 8450-7800.
Shivam Auto has convened board meeting on 18.05.15 to consider bonus issue.
Scrip Watch :- Keep a watch on the following scrip that may be considered for medium to
long term investments.
Relaxo Footwears (BSE Code 530517) :- This footwear and related product company has
posted net profit of Rs. 103.04 crore on a turnover of Rs. 1480.81 crore for the fiscal 2014-15
against net profit of Rs. 65.64 crore on a turnover of Rs. 1212.27 crore for corresponding
previous year. It has announced a dividend of 100% and also surprised stakeholders with a
bonus in the ratio of 1 for 1. As on 31.03.15, equity capital of Rs. 6.00 crore is supported by
free reserves of Rs. 361 crore plus. Scrip is worth considering at declined level for medium to
long term on cum-dividend/cum-bonus basis. It currently quotes around Rs. 805.75 against 52
week High/Low of Rs. 869/340, FV Re. 1.
Camlin Fine (BSE Code 532834) :- This fine chemical manufacturing company expanding
globally has (on a consolidated basis) posted net profit of Rs. 55.03 crore on a turnover of Rs.
558.27 crore for the fiscal ended on 31.03.15 against net profit of Rs. 28.71 crore on a turnover
of Rs. 508.67 crore for corresponding previous fiscal. It has announced a dividend of 45%. As
on 31.03.15, equity capital of Rs. 9.59 crore is supported by free reserves of Rs. 125 crore
plus. Scrip is worth considering at declined level for long term. It currently quotes around Rs.
94.90 against 52 week High/Low of Rs. 105/25, FV Re. 1.
Motherson Sumi (BSE Code 517334) :- This automotive sector company has (on consolidated basis) posted net profit of Rs. 862.47 crore on a turnover of Rs. 35031.89 crore for the
fiscal 2014-15 against net profit of Rs. 764.97 crore on a turnover of Rs. 30721.01 crore for
corresponding previous year. It has announced a dividend of Rs. 3 per share. As on 31.03.15,
equity capital of Rs. 88.19 crore is supported by free reserves of Rs. 3226 crore plus. Scrip is
worth considering at declined level for medium term investment. It currently quotes around Rs.
495.55 against 52 week High/Low of Rs. 534/257, FV Re. 1.

SMART
INVESTMENT

18th May to 24th May 2015

12

DISCLAIMER : No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter
published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.
Any reader taking decisions based on any information published here does so entirely at own risk.
Author has no holdings or plans to invest in any scrip referred in this article.
(Email: dilip_davda@rediffmail.com )

Dividend Announcements
ADC India (10%), APL Apollo (60%), Atul Auto (50%), Avanti Feeds (275%), BSL
(12%), Bank of Baroda (160%), Capital Trust (10%), Capri Global (15%), Ceejay Fin
(14%), Chokshi Imaging (5%), Deep Ind (10%), Elegant Marbles (20%), Eveready Ind
(40%), Havells India (300%), Jai Corp (50%), Kansai Nerolac (140%), Modern India (6%),
Nitta Gelatin (10%), OCL India (200%), Orient Paper (10%), Peninsula Land (15%),
Polychem (25%), Relaxo Footwears (100%), Rolcon Engg (15%), Sahyadri Ind (15%),
Simplex Realty (10%), Siyaram Silk (100%), Syndicate Bank (47%), Tips Ind (10%), TFCI
(8%), Unichem Lab (100%), Vardhman Text (100%), WH Brady (10%), Yuken India (15%),
Apollo Tyres (200%), Ashok Alco (10%), Ashok Leyland (45%), Automobile Corp of Goa
(125%), Bombay Cycle (40%), Camlin Fine (45%), Central Bank of India (5%), CARE
(80%), Dr Reddy's Lab (400%), Electrosteel Cast (65%), Finolex Cables (90%), Florence
Invest (15%), Ingersoll-Rand (30%), Jubilant Life (300%), La Opala (65%), Ludlow Jute
(5%), Maharashtra Scooter (300%), Mayur Uniq (16%), Motherson Sumi (300%), PTL
Enterprise (50%), Punjab & Sind Bank (6%), Poddar Develop (15%), Sobha Ltd (70%),
TV Today (30%), Torrent Power (15%), Tai Ind (7%), TBZ (10%), Uco Bank (20%), Union
Bank (60%), Vas Infra (7%), Vijaya Bank (15%), Aarti Ind (35%), Adani Enter (140%),
Aditya Birla Chem (50%), Advani Hotels (6%), Amrit Corp (50%), Ashoka Buildcon (14%),
Automotive Axles (10%), Capital First (22%), Dalmia Bharat (75%), Deepak Nitrite (50%),
Emami (300%), Jayant Agro (20%), Lupin (375%), Nilkamal (45%), SIL Invest (12.5%),
Salzer Electro (15%), Smartlink Network (100%), Suraj Ltd (15%), TT Ltd (10%), Tasty
Bite (10%), Umang Dairies (20%), Aditya Birla Nuvo (70%), Apar Ind (35%), Arvind Ltd
(25.5%), Balkrishna Ind (120%), Bank of Maharashtra (8%), Blue Star Info (40%), DB
Corp (42.5%), Dhunseri Petro (40%), Glance Fin (7.5%), Graphite India (100%), Grindwell
Norton (130%), GSFC (110%), HEG Ltd (30%), Hindustan Media Vent (12%), Indian
Bank (42%), IMFAL (15%), Indo Thai Secur (10%), JK Tyre (75%), Jubilant Foodworks
(25%), Kanco Tea (50%), MT Educare (20.5%), Manappuram Fin (22.5%), Monsanto
India (180%), NCC Ltd (20%), OBC (33%), Oriental Carbon (55%), Subros Ltd (35%),
VIP Ind (50%), Zydus Wellness (60%), Alkyl Amines (80%), Amrutanjan Health (120%),
Arman Fin (12%), Bhagiradha Chem (10%), Birla Ericsson (10%), Cadila Health (240%),
Dena Bank (9%), Edelweiss Fin (20%), HT Media (20%), IL&FS Trans (40%), JK Lakshmi
Cement (40%), JSW Steel (110%), Jain Irri (25%), Joonktollee Tea (30%), Jupiter Info
(1%), MCX (100%), Nestle (140%), Nile (30%), Oracle Fin (3600%), Oriental Hotels (40%),
PC Jeweller (32%), Puravankara Proj (31%), Safari Ind. (10%), Sona Koyo (65%), Take
Solu (40%), Tata Coffee (130%), Torrent Pharma (125%), Zuari Agro (20%), Zuari Global (10%) etc.

SMART

18th May to 24th May 2015

INVESTMENT

13

Scrip Watch
Alicon Castalloy (Rs. 290.00) (Code: 531147) :- Aluminum sector company's stock
prices witnessed 52 week high at Rs348 and low at Rs117. Based on the order inquiry, preparations for new product launching, merger with atlas cast alloy it can be said that the company's
future is bright. In the fourth quarter the top line was as per market expectations but bottom line
was poor. The company announced final dividend of Rs3 per share for FY2015. In the fourth
quarter the company's income increased by 24% to Rs144 crore. EBITDA margin also increased
by 12.9% at 14.2%. Net margin remained under pressure due to high depreciation, increasing
finance cost and high tax cost. It has got SEBI nod for merger with Atlas Cost Alloy. The company
may witness turnaround by next year. The stock is being traded at PE multiple of 17 and is likely
to cross Rs300 level in short term and Rs350 in long term.

Grasim (Rs. 3553.00) (Code : 500300) :

Amid difficult market conditions, Grasim


reported a 25 per cent drop in its consolidated net profit at Rs.507 crore for the fourth quarter
ended March 31, 2015, against Rs.679 crore in the corresponding period of the previous year.The
Aditya Birla group company reported a 5 per cent higher net revenue of Rs.8,820 crore against
Rs.8,418 crore. The board of directors has recommended a dividend of Rs.18 per share.Technically,
the stock looks good. It has been forming higher bottoms. In the month of August 2014, the bottom
was around Rs 3,200 then Rs 3,350 in December and now in the month of March it has formed
around Rs 3,600. So, technically also, the stock looks attractive. Buy. Buy more at decline.

Gillette India (Rs. 4378.00) (Code : 507815) :- Gillette India stock was firm strong
Q4. Its net profit rose 263% to Rs 31 crore on 9% growth in net sales to Rs 494 crore in Q3 March
2015 over Q3 March 2014.Driven by the company's focus on innovation, net sales increased with
robust growth across all segments. Net profit increased due to continued focus on operational
excellence, the company said in a statement. Sales in Grooming segment were up 9% versus
year ago, driven by strong brand fundamentals and product portfolio. Oral Care segment delivered sates growth of 6% versus last year driven by superior value propositions and strong mix.
Sales in the Portable Power business were up 4%, versus year ago behind strength of product
portfolio.The large-cap company has an equity capital of Rs 32.59 crore. Face value per share is
Rs 10. Accumulate.

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SMART

18th May to 24th May 2015

INVESTMENT

14

Market Tips
Mahindra Lifespace (Rs. 465.00) (Code : 532313) : Mahindra Lifespace Developer (MLD) is an integrated township and residential property builder. It will be a key beneficiary of
falling interest rates on home loans as it is one of the leading company active in affordable housing development. The companys geographically diverse presence, established position in the
growing affordable housing market, and good mix of residential and integrated business cities
hold it in good stead. Currently, 5.9 msf of residential real estate is under construction in five
locations, including Bengaluru, Chennai and Nagpur. In addition to middle income and luxury
homes, the company has also launched affordable housing projects in Chennai and Mumbai. The
company plans to launch 4.5 msf of projects. MLD holds land banks of over 12 msf to support
future project launches, primarily in Chennai. It also recently acquired land with saleable area of
0.32 msf under joint development in Mumbai. The stock currently trades at seven times its trailing
12-month earnings. Buy.
Bharti Infratel (Rs. 409.00) (Code : 534816) : Bharti Infratel owns 85,892 telecom
towers which included its 42 per cent stake in Indus Towers. The tenancies in its sites have risen
steadily from 1.5 levels three-four years ago to 2.12 currently. With Bhartis own operations along
with anchor tenants, such as Vodafone and Idea Cellular, the companys revenue has grown
steadily. These three operators command nearly 70 per cent of the telecom revenue market share
on a pan-India basis. The company also serves several other operators in many circles. Indus
Towers has an even better tenancy ratio of 2.17. With Reliance Jio signing tower sharing agreements with both Bharti Infratel and Indus Towers, there is scope for improving tenancies further.
According to a report from the telecom regulator, wireless penetration in rural areas is still only a
little over 45 per cent. This low tele-density in the hinterland presents a significant opportunity for
operators. So, a pan-India tower operator such as Bharti Infratel would benefit. Bharti Infratel has
reduced debt from Rs.3,342 crore in 2013-14 to Rs.2,582 crore currently. Interest costs have
reduced by 27 per cent in FY15 to Rs.290 crore. In an another development, Bharti Infratel has
been included in MSCI India index. The stock has more positives. Accumulate.
Ajanta Pharma (Rs. 1294.00) (Code : 532331) : Ajanta Pharma, a Rs. 1,450
crore plus Mumbai based pharma major, has posted satisfactory financial performance for the
fourth quarter ended March 2015 and its standalone net profit increased by 20.3 per cent to Rs.
84.31 crore from Rs. 70.09 crore in the corresponding period of last year. Its standalone net
sales moved up by 19.7 per cent to Rs. 360.36 crore from Rs. 301.14 crore. EBIDTA increased
by 22 per cent to Rs. 140.72 crore from Rs. 115.36 crore. Export contributed 67 per cent of the
revenue for the quarter. R&D expenditure increased to Rs. 24 crore from Rs. 11 crore in the
similar period of last year. The board of directors has recommended equity dividend of 300 per
cent or the year 2014-15.

SMART

18th May to 24th May 2015

INVESTMENT

15

SMART TIPS
Marksans Pharma (Rs. 58.00) (Code: 524404)

:- This B group listed pharma


company's shares have a face-value of Re. 1. The share touched a high of Rs. 75 and low of Rs.
20. Even amid uncertainty, pharma shares have given strong returns to investors. Company has
completed first phase of turnaround and has embarked on the second phase. Institutional investment in the company has gone up from 7.6% to 14.2% in two quarters. It derives 42% of revenues
from UK alone. Eleven of its applications are pending before US FDA authorities, of which it has
received approval for one. In the first nine months of the fiscal, company's US business has shot
up by 81% to Rs. 120 crores. For the same period, its consolidated income rose 53% to Rs. 626.3
crores, while net profit jumped 38% to Rs. 84.4 crores. EBIDTA margins have gone up by 450 bps
to 23.3%. The stock can show 25 to 30% growth in coming three to four quarters.

Suprajit Engg. (Rs. 122.00) (Code: 532509)

:- Shares of this B group listed auto


parts manufacturer have a face-value of Re. 1. In the last year, the share touched a high of Rs.
170 and low of Rs. 72. The company supplies cables to automotive and other sectors. It is the
leading cable player in the country and is among the top five in the world. Apart from mechanical
control cables used in vehicles, it also manufactures speedometers and other equipments. The
company aims to increase its capacity from 150 million cables to 225 million cables in two years
with an investment of Rs. 65 crores. Recently, the company's board approved the proposal to
acquire 51% to 61.88% stake in Phoenix Lamps from its promoters at Rs. 89 per share. It also
made an open offer to acquire 26% stake in the company at Rs. 100 per share. For the year ended
March 2015, company had turnover of Rs. 482 crores and net profit of Rs. 48 crores. The stock will
become attractive at every decline.

Pennar Industries (Rs. 47.00) (Code: 513228) :- The shares of this B Group listed
company have a face-value of Rs. 5. The company makes interim products of iron and steel. The
share touched a high of Rs. 68 and low of Rs. 26 in the last year. It is a leading industrial organisation
providing specialised and engineered steel solutions. It has presence in four crore business units
such as steel products, tubes, industrial components and systems & projects. Company recently
announced encouraging March quarter results. On a consolidated basis, net profit was up 116%
to Rs. 16 crores and sales were up 14% to Rs. 367 crores. EBIDTA rose 31% to Rs. 118 crores,
and EBIDTA margins improved 8% to 9.8%. Company has pending orders worth Rs. 76 crores,
which includes Hindustan Door Oliver, United Spinning, Sterling, Wilson, Integral Coach Factories, Southern Railway and East Railway. It also has solar power orders from Odisha and MP. The
company is expected to benefit the most because of the government's focus on railway, solar
power and environment segments.

SMART

18th May to 24th May 2015

INVESTMENT

16

Smart super duper


Shemaroo Entertainment (Rs. 216.00) (Code: 538685) :- The 'B' group stock
witnessed 52 week high at Rs295 and a low at Rs145.The company's market cap is Rs560 crore.
The promoters hold 65.82%, FII hold 9.59%, DII hold 6.85% and public hold 17.74% stake in the
company. The entertainment segment company was set up in 1962. The stock touched Rs300
level at one point of time but now it is being traded around Rs210 level. The promoters hold 65.825
stake, while FII hold 9.59%, DII hold 6.85% and public hold 17.74% stake. The company is active
in entertainment segment since 1962. It has rights of more than 2900 titles. In the March quarter,
the company's income was Rs86.72 crore while profit remained at Rs12.86 crore. In the FY 2015,
the company's income increased from Rs263.34 crore to Rs323.45 crore, while profit increased
from Rs29.75 crore to Rs41.81 crore with EPS of 17.73 crore. The company had raised Rs120
crore through IPO, which was used to develop own libraries across the country. The stock has
witnessed considerable correction so it seems to be a good candidate for investment as it may
give good returns in long term.
Finolex Cables (Rs. 250.00) (Code: 500144)

:- The stock is favourite among the


fund managers and the FIIs therefore it is making new highs. The company has its plants at Pune,
Goa and Uttarakhand. The stock witnessed 52 week high at Rs306.4 and low at Rs147.2. The
company has equity of Rs30.59 crore in which the promoters hold 35.86%, FII hold 9.66%, DII
hold 12.8% and public hold 41.68% stake. In FY 2015, the company's income increased from
Rs2359 crore to Rs2449 crore, while profit increased from Rs207.68 crore to Rs198.66 crore with
EPS of Rs13. The stock is being quoted at PE of 20 on current rate. The company paid 60%
dividend in 2013, 80% in 2014 and has declared 90% dividend for 2015. The company has also
entered into switch gears. It has become attractive after correction.

Federal Bank (Rs. 138.00) (Code: 500469)

:- The banking stock has been converted from face value of Rs10 a share to five shares with face value of Rs2 a share. In March
quarter the company's income increased from Rs1838.71 crore to Rs.1908.28 crore, while profit
increased from Rs277.29 crore to Rs280.52 crore with EPS of Rs3.27. The company's equity is
Rs171.33 crore. The bank has branch network of 1370 branches. It has witnessed sharp fall in its
gross NPA. The FIIs hold 37.65% stake in the bank, while DIIs hold 27.05% and public holds
35.05%. The company's market capital is 12758 at current valuation. The stock is being quoted at
lower valuation compared to its peers and after robust results the stock is likely to touch a new
high. The bank is looking for expansion which will improve its CASA. The bank has declared 10%
dividend and it is now about to declare bonus shares.

Magma Fincorp (Rs. 94.00) (Code: 524000) :-

Magma Fincorp is one of the leading NBFCs in the country. It is listed in 'B' group with face value of Rs2 a share. During the year,
the stock prices witnessed a high at Rs142 and a low at Rs75. At current market rate the market
cap is Rs1765 crore. The promoters hold 33.57%, FII hold 43.18%, DII hold 13.255 and public
hold only 10% stake in the company. In FY2015, the company's income increased from Rs2081.32
crore to Rs2353.63 crore, while profit increased from Rs151.83 crore to Rs180.67 crore with EPS
of Rs8.88. the stock is being quoted at lower PE of 10.2. As against equity of Rs38 crore the
company has reserves of Rs1616.83 crore. One of the leading brokerage houses has given target
of Rs164 in 24 months. Investors can consider it for investment in phased manner.

SMART

18th May to 24th May 2015

INVESTMENT

17

A.J. Diwan (Mumbai)


E-mail : divanconsultancy@rediffmail.com

Make in profit
The aim of investment or trading in stock markets is to make profit. After NDA government's one year
BSE Index has gone up by 3000 points. No doubt it touched 30,000 one time but at higher level there is
selling by FIIs.
FIIs are not happy with MAT out come as old noticed served will stay and whatever committee is formed
may decide about future action. FIIs are taking advantage of depreciating rupee and higher dollar. Over
and above market is up so profit booking is on card.
We are saved by Indian institutions as earlier they were sellers but with FIIs are selling; there is clear
instruction to buy.
Dollar is going strong with crude price also up in the world. Our government forced to increase Petrol /
Diesel l price by Rs.3.25 and 2.75 respectively
U.S. Employment data are very positive so Dow is going up but at the same time there is a risk of
increase in interest rate.
Nifty has closed at 8262 now 8225 and 8180 are support and resistance is 8350.
The trend of the market is depending on monsoon and corporate results. Monsoon may come early but
there is indication of short fall.
The corporate results are not that encouraging.
We so Lupin doubles in last one year and after last results it has fallen. We consider this as good
opportunity to accumulate slowly. In metal JSW steel Sesa are good short on rise. In IT sector Infosys and
TCS are attracting value buying at lower price.
Black money has nothing new only punishment and fine increased. This is harmful for stock markets as
it is believed that most of black money is generated in stock markets.
The loss of income from crude may harm infrastructure projects to the certain extent.

TIPS OF THE WEEK

BUY.... BUY....BUY
Co. Name
Pennar Ind.
S. I. Bank
Dhanlaxmi Bank
Marksans Ph.
GSFC
Virtual Glo.
Sintex
R.Com.
Suprajit Engg.
Federal Bank

Code
513228
532218
532180
524404
500690
534741
502742
532712
532509
500469

Price
51.00
24.00
35.00
58.00
74.00
15.00
109.00
65.00
128.00
138.00

Co. Name
Union Bank
Shemaroo Eng.
Motherson Su.
HSIL
Centum Ele.
SML Isuzu
HUL
Jubilant Food
Bajaj Auto
Nestle

Code
532477
538685
517334
500187
517544
505192
500696
533155
532977
500790

Price
164.00
216.00
495.00
383.00
761.00
1187.00
845.00
1747.00
2081.00
7012.00

SMART

18th May to 24th May 2015

INVESTMENT

Investment Ideas

18

- Pratit Patel (9998881112)


www.dkwealthadvisory.com

Nifty (8261) :- For next week nifty has strong support around 8210 level, break with volume
will take it to 8135---8090 level. On the upper side it has strong hurdle at 8335---8355 level, cross
over with volume will take it to 8500 levels

Chennai Petro (90.25) :- Stock is looking explosive for positional traders. One can buy
this stock on dips around Rs.90 keeping stop loss of Rs.87. On the upper side stock will zoom up
to Rs.95 level, cross over will take it to 98.5---105 levels in next 1 month
Sterlite Techno (63.30) :-

Huge consolidation is going on in this stock. Stock is looking


hot for positional traders. One can buy this stock around Rs.62 keeping stop loss of 58.25. On the
upper side stock will zoom up to 67.5 level, cross over will take it to 72---76.5 levels in coming
days

Redington India (118.15) :-

Chart is indicating that worst seem to be over for this stock.


Stock is looking strong for positional traders. One can buy this stock on dips around Rs.2095-2100
keeping stop loss of 2040. On the upper side stock will zoom up to 2155 level, cross over will take
it to 2210 levels in coming days

Ashoka Buildcon (168.80) :-

Weekly chart is looking explosive. One can buy this stock


around 162-166 keeping stop loss of 155. On the upper side stock will zoom up to 175level, cross
over will take it to 190-195 levels in next 4-6 weeks

Crompton Greaves (170.75) :-

Stock is ready for uptrend. One can buy this stock


around 168-170 keeping stop loss of 164. On the upper side stock will zoom up to 175.5 level,
cross over will take it to 180---186 levels in 2-3 weeks

HOT INVESTMENT IDEAS OF THE WEEK


Last week recommended GLOBAL VECTRA @ Rs.46, during the week it zoomed to Rs.55
levels. Also recommended CONART ENGINEERS @ 24.55, it zoomed to Rs.28.4 levels on
Monday itself.

Dhunseri Petrochem (Rs. 65.25) (Code : 523736 & NSE) :- Dhunseri Petrochem
Ltd. manufactures and sells polyethylene terephthalate (PET) resins in India and internationally.
The company's Petrochem division offers PET resins used for the manufacture of PET bottles that
are used in the packaging of mineral water, carbonated soft drinks, edible oil, cosmetics, toiletries,
milk, hot-fill drinks, and juices. This division offers PET resins under the ASPET brand. Company
has demerged its Tea division in Separate Company. It has also demerged its IT SEZ division to
Separate Company.
It has an equity base of just Rs.35.03crore that is supported by reserves of around
Rs.538.75crore. It has a share book value of Rs.240.
DPL has posted encouraging numbers in Q4FY15 as it notched net sales of Rs.644.35crore
with net profit of Rs.28.55crore posting an attractive EPS of Rs.8.15 from sales of Rs.978.89crore
with net profit of Rs.2.33crore in FY14. Remember after demerger of DHUNSERI PETROCHEM &
TEA LTD in three separate companies, DHUNSERI PETROCHEM (DPL) has posted Q4FY15
result as single entity. That's why company has reported lower sales.

SMART

18th May to 24th May 2015

INVESTMENT

19

For FY16, DPL can deliver net sales of Rs.3050crore and profit after tax of Rs.80crore translating into EPS of Rs.22.83. Script is trading at 6.06xFY15 EPS &2.9xFY16(E) EPS. It is regular
dividend paying company. After demerger company has maintain its healthy dividend payout policy.
With Q4FY15 Result Company has declares 40% dividend for FY15. At current share price, this
results in a dividend yield of 6.15% which is really very encouraging. Company has fix book closure date from 23rd July 2015.
Investors can buy this stock with stop loss of Rs.55. One the upper side it will zoom up to Rs.85-90 levels in medium term while it will zoom to Rs.125 levels in next 12 to 15 months.

Last Week Sensex, Nifty & Moves


Date
11/05/2015
12/05/2015
13/05/2015
14/05/2015
15/05/2015

Open
27,249.42
27,502.91
27,023.71
27,290.17
27,233.90

NSE - Nifty
11-May-15
12-May-15
13-May-15
14-May-15
15-May-15

Open
8243.2
8326.15
8181.55
8232.45
8240.3

High
27,544.24
27,502.91
27,299.80
27,293.99
27,379.57
Net
High
8332.75
8326.65
8254.95
8236.25
8279.2
Net

Low
27,231.28
26,837.39
26,750.01
26,948.62
27,159.76
Weekly
Low
8224.65
8115.3
8089.8
8137.3
8212.2
Weekly

Close
Diff
27,507.30 401.91
26,877.48 -629.82
27,251.10 373.62
27,206.06 -45.04
27,324.00 117.94
Gain 218.61
Close
Diff
8325.25 133.75
8126.95 -198.3
8235.45
108.5
8224.2 -11.25
8262.35
38.15
Gain
70.85

SMART

18th May to 24th May 2015

INVESTMENT

20

NIKHIL BHATT
(+919979380808)
WWW.INVESTMENTPOINT.IN

PERIOD : 18-5-2015 to 22-5-2015

Nifty F&O Range @ 8373 point in short term


Dear Friends,
NIFTY FO CLOSED @ 8260 AS ON 15.05.2015..!! NIFTY FO has resistance at 8282 - 8313
Level; above which other resistance levels are at 8330 - 8366 Level with highly Volatile Trend, In
Downside support levels are at 8230 - 8212 Level; below 8212 Level, other support levels are at
8188 - 8173 Levels. I am positive for next week above 8366 Level but be with the trend. Let the
market decide further moves. As we are saying from many days Buying is suggested in falls
only...and it's still a better strategy in the given Scenario...!!! Regarding long term positions, it is
preferable to remain cautious now...!!
If NIFTY crosses 8366 Level, again then the upper side target is quite high and it may touch
8373 Level in short term...!!!
Golden Stocks for the period : 4-5-2015 to 8-5-2015

1. Sun Pharma (946) : It is suggested to buy @ Rs 953 with SL of Rs 933 for the target of
Rs 966 - 977; below Rs 933 it can fall up to RS 913 - 903 levels. If it crosses Rs 977 level than
expect nonstop rally up to Rs 988...!!

2. Tata Steel (364) : Operator based Game start in this stock, Buy @ Rs 373 With SL of Rs
347 for the target of Rs 380 - 393 level below Rs 337 it can show further downfall up to Rs 327!!!

3. Andhra Bank (78) : Buy delivery of this stock near @ Rs 93 with SL of Rs

70 for the

target of Rs 86 - 93 level. It is very good for medium term position also!!!

4. SKS Micro (459) : This stock is looking very good to buy @ Rs 466 with SL of Rs 444 for
the target of Rs 481 - 490 Levels below Rs 430 is stock shall witness free fall!!!

5. M & M Fin. (274) : Buy @ Rs 283 levels considering minor support of Rs 366 and stop
loss of Rs 255 for an upper target of Rs 333 - 347 levels. Below Rs 255 it can slip up to RS 247 240 levels!!!
6. ICICI Bnak (312) : Operator based buying has been there in this stock. Buy @ Rs 323
with SL of Rs 290 for the target of Rs 330 - 344 levels it is very good for long term position also!!!

7. Bank of Baroda (160) : Trading point of view BUY @ Rs 171 With SL of Rs 147 for the
target of Rs 183 - 191 level below Rs 138 It can show further downfall up to Rs 130..!!!
8. Den Network (142) : Buy delivery of this stock near @ Rs 153 with SL Rs 137 for the
target of Rs 161 - 173 level. It's very good for long term position also!!!

9. PTC India (67) : For medium term buying is suggested @ Rs 73 with SL Rs 63 for the
target of Rs 78 - 90 level. Below Rs 58 it can show further downfall!!!

10. HCL Techno (913)

: It is suggested to SELL with SL Rs 921 for the target of Rs 903


- 890 below @ Rs 890 it can slip up to Rs 883 - 877 level. Above Rs 928 level will take the stock
to Rs 937 - 941!!!

SMART

18th May to 24th May 2015

INVESTMENT

Primary Market

21

- Dilip K. Shah

More than two dozen companies all set to raise Rs9300 crore from the market
However discounted IPOs, depressed secondary market and China effect are cause of concern

Funny Software's BSE-SME IPO with fixed price of Rs14 entered into the market
UFO Movies IPO got listed in discount affecting moral of the market
PNC Infra issue gets poor response in retail category:
Sail through with difficulties as it was managed by QIB
IOC and NTPC got cabinet approval to raise Rs13500 crore through disinvestment
Funny Software's IPO got 60% subscription on the first day
In PNC Infra refund/allotment may take place on 22/23, listing on 25/26
Cartel for taking up UFO Moviez share prices to Rs650 after poor listing
Dr. Lal Pathlabs appoints investment bankers for Rs1200 crore IPO
Narayana Health wmay come up with Rs 1500 crore IPO by end of current financial year
IPO rally in the primary market has taken a break. The steep correction in the secondary
market along with listing of IPOs at discounted rates has shaken faith of the investors resulting
into slow pace of new IPOs in the primary market. Still many companies are planning to enter
into the market with improvement in the overall sentiment in the share market along with the
government's planning to come up with a number of PSU disinvestment issues. It is believed
that more than a dozen companies are planning to raise nearly Rs9300 crore from the market.
However, it is also believed that during May 7 to May 12, IPOs worth 3.7 trillion yen means
$597 billion were to hit the bourse in the dragon land, which is nearly 11 times compared to
money raised by India companies in last decade. Moreover, India's Forex reserves is also
depleting. As Chinese companies are giving better returns the FIIs are pulling back their investment from India to pour money in Chinese market. The china effect is felt on the Indian
market.
Details of the companies which have obtained SEBI approval to come up with IPO is mentioned in the separate box.
* Last week's issues and listing :- PNC Infra was in the market and UFO Moviez got listed
during last week.
PNC Infratech :- Rs488 crore issue that opened on May
8 with offer price of Rs355 to Rs378 got closed on May 12.
Subscription :- IPO received poor response on the first
day and got only 0.01 times subscription. In this column of
Smart Investment, it was indicated that it will get poor response in HNI category and will be managed through QIB.

Grey Market Premium


IPOs Name Offer Price
PNC Infra

Premium

(Rs.)

(Rs.)

355 to 378

Discount

Don't subscribe IPO only on the basis of Grey Markets


premium. Before Investing check the fundamentals of IPO

BSE SME IPO


Sr Company
1.

Funny
Software Ltd.

Issue Open Dt.


Issue Close Dt.

Issue size
(Rs. Cr.)

Offer price
(Rs.)

Minimum Applications

Rating

Remark
%

14-5-2015

32,80,000 Eq.

Rs. 14

Minimum Application Size of

37 %

PRICY

20-5-2015

(Rs. 4.59 Cr.)

10,000 Eq. Shares (Rs. 1,40,000)

SMART

18th May to 24th May 2015

INVESTMENT

On the last day of subscription it got 4.51 IPOs Approved by SEBI


times subscription in QIB, 0.65 times in Co. Name
Issue Amt.
(Rs. Cr.)
HNI, 0.28 times in retail and 1.11 times in
Rashtriya
Ispat
Nigam
1500
employee quota taking overall subscripLavasa Corp.
750
tion to 1.56 times.
Sadbhav Infra
650
Discovery price :- As against price Manpasand Beverages 400
180
band of Rs355 t 378, the discovery price Power Mech Projects
Uniparts
India
155
could be around Rs355.
SMC Global
125
Allotment-refund :- Allotment may Shree Pushkar Chemicals 75
take place on May 22/25.
ABC (India
-Listing :- The issue may get listed on May 25/26 at discounted
rates.
UFO Moviez Listing (539141) :- The issue with offer price of
Rs600-625 got listed on May 14 at rate of Rs600 but it went down

22

IPOs awaiting approval


Co. Name

Issue Amt.
(Rs. Cr.)
AGS Transcat
1350
Dilip Buildcon
750
Nuziveedu Seeds
700
Navkar Corp.
600
Catholic Syrian Bank
400
Syngene International
400
Prabhat Dairy
275
Precision Camshafts
250
S H Kelkar & Co.
250
Shree Shubham Logistics 210
SSIPL Retail
95
Numero Uno Clothing
70
Amar Ujala Publications 60
Pennar Engineered
50

further to Rs623 and Rs586 and ultimately closed at rate of Rs598.80. On May 15, the stock
closed at Rs610.25. It is believed that the target is to take the stock at level of Rs650 provided
the market sentiments are favourable.
* This week's new issues :- Only one issue of BSE-SME platform is in the market.
Funny Software Ltd :- The issue with fixed price of Rs14 has entered into the market
offering 32.80 equity shares to raise Rs4.59 crore fund. It is believed that the issue got 60%
subscription on the first day. It will close on May 20. More details are given in a separate box.
Funny Software
Eq. Shares
Market Makers
1,80,000
Net Issue (Public)
31,00,000
Total Size
32,80,000
City : NEW DELHI
IPO Registrar : Skyline Services
Lead Manager : First Overseas Cap.

Listing Information of
UFO Moviez India
BSE Code
539141
Listing Date
14-5-2015
Offer Price
Rs. 625.00
Listing Price
Rs. 600.00
Listing Day High Rs. 623.00
Listing Day Low Rs. 586.00
Listing Day Close Rs. 598.80
CMP (15-5-15) Rs. 610.25

* PSU Disinvestment issues :- The central cabinet has granted


permission to NTPC and Indian Oil Corporation for disinvestment of
5% and 10% stake respectively. It will fetch around Rs13500 crore in
the government coffer. Currently, IOC's share price is Rs326.70 which
will fetch around Rs7915 crore to the company. NTPC's share price
is 134.80, which will help it to raise Rs5570 crore. The government
has fixed target of raising Rs41000 crore through disinvestment.
* New issues : Dr. Lal Pathlabs :- Diagnostics and Pathology services company Dr. Lal Pathlabs has appointed Kotak Investment Bank and City
Investment Bank as the investment bankers for Rs1000 to Rs1200
crore IPO. The issue may enter into the market in the last part of
financial year.
Narayana Health :- Backed by CDC and J.P.Morgan along with
other private equity players the multi-specialty and super specialty
hospital chain may come up with Rs1200-1500 crore IPO.

Subscription Figure of PNC Infratech


No. Shares
Issue Subscribed
Offered/ Reserved 8-5-2015 9-5-15 10-5-15
QIBs
25,74,342
0.00 0.21
4.51
HNI
19,30,757
0.00 0.23
0.65
Retail
45,05,098
0.02 0.06
0.28
Employee
50,000
0.06 0.95
1.11
Total
90,60,197
0.01 0.14
1.56

SPARC :- The company known as Sun Pharma Advance Research demerged from Sun Pharma. At the
board meeting on May 12, the company has decided to
come up with Rs250 crore rights issue. The record date
will be declared later on.

SMART
INVESTMENT

18th May to 24th May 2015

23

Funny Software IPO opens on 14th May & Closes on 20th May
Price band Fixed Rs. 14 : Listing on BSE - SME Platform
Funny Software Ltd (FSL) is engaged in the providing IT services, consulting and business solutions organization and delivering results to its valued clients. The company also operates as reseller
organization by a team of dynamic professionals with marketing, sales and technical know-how
spread across various industries. It predominantly caters to Delhi and nearby markets and act as IT
Distribution space. Going forward, FSL plan to increase its product portfolio and also plans to penetrate in new markets.
FSL has a comprehensive portfolio of product offerings covering desktop, laptops, servers, Hard
Disk Drives, Scanners, Memory Modules and Cards, USB Drives, Speakers, Optical Media, Casings, Electronic Copy boards, Clear One Audio Conferencing, Elmo Document Camera etc.
Advisors and consultants in respect of matters relating to Computer hardware software computer
aided Programmes.
To part finance acquisition of certain fixed assets and needs for incremental working capital as
well as general corpus funds, it is coming out with a maiden IPO of 3280000 equity share of Rs. 10
each at a fixed price of Rs. 14 per share to mobilize Rs. 4.59 crore. Issue opens for subscription on
14.05.15 and will close on 20.05.15. Minimum application is to be made for 10000 shares and in
multiples thereon, thereafter. Issue is lead managed by First Overseas Capital Ltd and Skyline
Financial Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE
SME platform. Issue is fully underwritten by two underwriters.
Financial Performance : On performance front, the company that started its operations in mid
2012-13 earned net profit of Rs. 0.003 crore on a turnover of Rs. 0.85 crore. For fiscal 2013-14 it
has marked net profit of Rs. 0.04 crore on a turnover of Rs. 3.38 crore and for first nine months
ended 31.12.14 it has earned net profit of Rs. 0.04 crore on a turnover of Rs. 2.76 crore.
Note : The company issued 86500 shares of Rs. 10 each at a price of Rs. 200 per share on
25.03.08 and then issued bonus shares in the ratio of 17 for 1 on 12.10.13. Thereafter it further
issued at par equity worth Rs. 7.33 crore plus on 25.10.13 and 02.09.14 to take it's paid up equity
capital to Rs. 9.07 crore.
If we annualized these earnings, then EPS for fiscal would be around Rs.0.06. And post issue its
equity of Rs. 9.07 crore will jump to Rs. 12.35 crore that will translate it in to an EPS of Rs. 0.04
indicating for its issue price at a P/E of 350.
Recommendation : We have witnessed erratic movements of SME IPOs post listings despite
market making that might have helped in listing gains, but later on regular trading remains a far cry.
Due to this and the entry barriers, broking community at large discourages investments in SME
IPOs.
Merchant Bankers Performance : Merchant banker has poor track record.
DISCLAIMER : No financial information whatsoever published anywhere here should be construed
as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published
here is purely for educational and information purposes only and under no circumstances should be
used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry
barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.

- By Dilip Davda (Email: dilip_davda@rediffmail.com)

SMART
INVESTMENT

18th May to 24th May 2015

24

IPO Greedy pricing set to play a spoil sport


- By Dilip Davda
Well, on one hand secondary market is heading for correction on MAT issue and poor Q4 numbers,
primary market operators are expecting hectic moments, but then, fancy pricing is likely to play a spoil sport
as has happened in the recent past. If we take faring of IPOs since December 2014 then disaster started
with Monte Carlo (7.83 times) but got listed at heavy discount. IPO of NCML stood withdrawn as it failed to
garner minimum subscription even after lowering the price band and extension for subscription. Then it
was Ortel Communication (0.76 times with modified price band and the size of offer) and Adlabs Entertainment (1.11 times with lowering of price band and extension of subscription period) and both failing to
perform post listings. But thereafter Inox Wind (18.60 times) and VRL Logistics (74.26 times) once again
attracted good response and even quoted at premium to offer price post listings that tempted merchant
bankers and promoters to resort to greedy pricing as usual and that has started taking toll once again. But
due to greedy pricing MEP Infra IPO just got scrapped through with just 1.11 times subscription and UFO
Moviez has received below expected response of just 2.04 times till 19.30 hrs as per NSE web. And then
PNC Infratech IPO that was also considered a pricy bet met with lukewarm response with just 1.56 times
subscription in which HNI and Retail quota remained undersubscribed. With this kind of atmosphere, will
primary market be able to mobilize the desired funds is a million dollar question.
Section of Merchant Bankers did boosted the sentiment citing examples of Coal India OFS and Sun
Pharma (Daiichi sale out) but they are forgetting that such offers went through only at heavy discount to its
market prices. In case of Coal India local DIIs and insurance companies helped it scrape through and for
Sun Pharma FII/DII supported the counter as it was being offered at a 10% plus discount and having strong
fundamentals.
But due to very high pricing UFO IPO suffered and was just managed with bunch of informed investors
to get it subscribed around 1 time in HNI and Retail category. QIBs did responded well, but according to
market pundits if this issue would have been priced at or below Rs. 500, perhaps it would have created
another record outperforming VRL Logistics as its revenue model was well digested by the investors across
the category. UFO Moviez too suffered due to its greedy pricing and on the debut day it closed at a discount
of 4.19% to its offer price. This has slapped on the face of merchant bankers who were boosting their
overconfidence on pricing of this IPO. PNC Infratech too is set to follow the footsteps with poor performance post listing, opine primary market observers.
So if merchant bankers and promoters continue to price their IPOs with greed, it is sure to play a spoil
sport and primary market may once again have lull season going forward. Let us hope that the lobby of
merchant bankers takes a lesson from disaster NCML Ind and then failure of of Monte Carlo, Ortel, Adlabs,
post listing and IPOs of MEP Infra managing to scrap through and UFO Moviez - PNC Infratech subscribing
just around 2 times. Although we had few exceptional cases like Inox Wind, VRL Logistics but there again
the fundamentals were supportive and issues were considered as reasonable priced. MEP failed to live up
to confidence of hurried bunch of Anchor Investors who having burnt their fingers in Monte Carlo, Ortel,
Adlabs and UFO Moviez did not learnt any lesson. Their act has now raised eyebrows amidst its class of
investors. According to market sources, some of investors are gearing for action against such Anchor
Investors with whom they parked their funds.
If merchant bankers play their role in reasonable pricing of IPO leaving something for the new entrants,
then it will a win-win situation for one and all. Let us hope that promoters and merchant bankers resort to
interest of investors at heart. And if they fail on this count, then let SEBI take the onus of rule framing the
pricing formula, which has remained unattended for quite long. It is high time for merchant bankers to take
investor friendly route for any IPO and leave something on table for the new investors. If they will continue
to stick to their greedy tactics, they will again burn their fingers and may not be able to mobilize Rs. 25000
crore plus funds from IPOs.
According to market sources, when an IPO is having offer for sale in full or part, there should be discount
offer for retail masses and where it is fresh issue in Toto, safety net should be implied once again till SEBI
comes out with a free pricing formula. Let there be discount to retail investors, grading of IPO and Safety
net be in place once again otherwise the primary market that has just started raising its head may nose dive
and we are back to square one.

SMART
INVESTMENT

Smart Best Buy

18th May to 24th May 2015

25

S. N. Zaveri

Centum Electronics jumps on better prospects


HUL reports much better Q4 numbers : Accumulate
Talwalkars Better Value Fitness : Better Value in the stock
Dr. Reddys Lab : Prescribed for your portfolio
Bajaj Auto will rally on new launches and export
Centum Electronics (Rs. 761.00) (Code : 517544) :- Centum Electronics has
received new orders worth Rs 1 billion from an Indian Defence Enterprise for the development and
delivery of mission critical subsystems. The deliveries are required to be completed over a period
of two years. Centum has rapidly grown into a diversified electronics company operating across
different industry segments and offering a broad range of products and services. It has continuously invested in strengthening its design & product development capabilities. Centum Groups
offers range from customized product design & development, manufacturing services and turnkey
solutions for mission-critical applications in the Defence, Aerospace, Space, Industrial, Medical
and Communications markets. Strategic Electronics Business Unit (SEBU) is responsible for design, development and manufacture of Electronic Modules, Subsystems and High End Microelectronic Circuits. The products designed and manufactured are primarily for the Defense, Aerospace and Space segments. Joint venture between Centum Electronics Ltd India and Rakon Ltd
New Zealand, is engaged in the design and manufacturing of high performance frequency control
products for the Telecommunications, Industrial, Defense, Aerospace and Space markets. The
stock has jumped more than 15 per cent in last five trading sessions. Grab this momentum stock.
HUL (Rs. 845.00) (Code : 500696) :- : Hindustan Unilever has reported much better
Q4 results. Aided by an exceptional gain of Rs 179.4 crore from the sale of properties, its net profit
rose 17 per cent year-on-year for the quarter ended March to Rs 1,018 crore. It was Rs 872 crore
in the year-ago period. Net sales grew 9 per cent to Rs 7,555 crore during the quarter, as volume
growth picked up for the period under review. Volume growth was 6 per cent for HUL during the
fourth quarter, the highest for the company in FY15.the last three quarters, HUL's volume growth
hovered between 3 per cent and 5 per cent as the company battled a consumer slowdown.HUL's
operating profit, interestingly, climbed 22.3 percent year-on-year to Rs 1,318 crore and margin
expanded by 200 basis points to 17.2 per cent despite higher advertising expenses. HUL has
identified 13 new segments like handwash, body wash, face wash, tea bags, soups, fabric conditioners, hair conditioners, etc as segements of the future. HUL stock has been in strong consolidation mode which might end soon and the stock will move further anytime soon. Accumulate.
Talwalkars Better Value Fitness (Rs. 340.00) (Code : 533200) :- Talwalkars
Better Value Fitness stock jumped almost 10% on strong Q4 numbers. Its consolidated net profit
rose 20% to Rs 18 crore on 17% rise in net sales to Rs 77 crore in Q4 March 2015 over Q4 March
2014. On a consolidated basis, Talwalkars Better Value Fitness' net profit rose 26% to Rs 46 crore
on 21% rise in net sales to Rs 253 crore in the year ended March 2015 over the year ended March
2014. Talwalkars Better Value Fitness is India's largest fitness chain with over 150 gyms across
78 cities, offering a diverse set of services including gyms, spas, aerobics and health counseling
under the brand 'Talwalkars' to an active member base of over 1,25,000 members. The small-cap
company has an equity capital of Rs 26.18 crore. Face value per share is Rs 10. Buy.

SMART

18th May to 24th May 2015

INVESTMENT

26

Dr. Reddys Lab (Rs. 3491.00) (Code : 500124)

: Dr. Reddy's Laboratories reported 8 per cent annual growth in its consolidated net profit for the January-March on the back of
strong growth in its revenues. Dr. Reddy's Laboratories reported a net profit of Rs 519 crore over
sales of Rs 3,870 crore in the quarter ended March 31, 2015. Dr. Reddy's net profit in the March
quarter was impacted by forex losses of Rs 84.3 crore high research & development (R&D) expenses which came in at Rs 514 crore against Rs 398 crore year-on-year. Operating profit (EBITDA)
was Rs 810 crore against Rs 781 crore year-on-year and operating margin declined 80 basis
points annually to 21 per cent. The company has declared a dividend of Rs 20 per share. The
stock is attractively valued at this level. Buy.
Bajaj Auto (Rs. 2181.00) (Code : 532977) : Two-wheeler major Bajaj Auto is looking at increasing its total market share in the segment to nearly 23 per cent over the next one year.
It currently has a market share of 17 per cent in the overall two-wheeler segment and competes
with the likes of Hero, Honda and TVS. The company has launched new Pulsar range AS 200,
AS 150 and RS 200. The company is considering offerings in the 350 to 400 cc category, but did
not reveal any time frame for a possible launch.Bajaj Auto may soon sell more motorcycles in
overseas markets than it does at home.Of the 2,76,000 bikes that the company sells on an average every month, it currently exports around 1,30,000 bikes. Given the sluggish growth in the
domestic market against the exports that have been growing at a fine clip. The expectation of
further rate cut will benefit the company. The stock is trading at Rs. 2165 which looks reasonable.
Buy.

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SMART

18th May to 24th May 2015

INVESTMENT

27

Dalal Street Whispers


Dhanlaxmi Bank (Rs. 36.00) (Code: 532180) :- This private sector bank has registered profit of Rs. 125 crore in the first nine months of the fiscal as against loss of Rs. 117 crore
last year. The bank has registered net profit in spite of rising bad loans. The bank's net NPA has
declined. Upward movement is likely to be seen in anticipation of strong Q4 numbers.
Crompton Greaves (Rs. 173.00) (Code: 500093) :- Trading volumes on the counter
have gone up in the last few days. However, the price has remained range-bound. It is believed
that some big players are taking long position on the counter. This can be a big trigger for short
term gain in the stock.

Pennar Ind. (Rs. 51.35) (Code: 513228) :- There was a good correction in the stock
in the recent past. Market players used this opportunity to buy the stock in large numbers and to
take long positions. The stock can deliver good returns in the short term.

Camlin Fine (Rs. 94.00) (Code: 532834)

:- This specialty chemicals producer is


planning to set up a new plant at Dahej at an investment of Rs. 193 crores. The plant will help the
company scale up its capacities.

Uniply Ind. (Rs. 19.00) (Code: 532646) :- The company's open offer to acquire up to
26% stake at Rs. 13.50 per share opened on Thursday and will close on May 27. Around 5,600
individual shareholders own 50% stake in the company. The stock will remain in focus due to the
open offer.

Virtual Global Education (Rs. 15.00) (Code: 534741) :- Asia Investment Corporation, Mauritius, acquired 25.35 lakh shares at Rs. 13.8 per share of this education sector company at the beginning of last week. It acquired 26 lakh more shares the next day. The check-in by
FIIs is expected to lead to follow-up buying in the stock.

Suzlon Energy (Rs. 25.00) (Code: 532667) :- Suzlon Energy has bagged a 90 MW
order from REPower. This is a repeat order, which indicates that Suzlon is regaining trust. The
stock can show some current.

Man Ind. (Rs. 70.00) (Code: 513269)

:- This saw-pipe manufacturer has reported


strong performance for the fourth quarter. Net profit has jumped 15 times to Rs. 45 crores. Company has also recently bagged a Rs. 510 crores order in oil & gas sector, taking its order book to
Rs. 1,300 crores. The stock can be seen consistently outperforming.

Subex (Rs. 13.00) (Code: 532348) :- This IT company's share was an underperformer
last year and declined to new lows due to poor performance. However, big changes in the management and the board has led to improved performance. For the March quarter, company reported net profit of Rs. 10.20 crores as against loss of Rs. 11.61 crores in the same quarter of last
year, thus achieving turnaround position. The stock can be seen bottoming out as its performance
improves in coming quarters.

Jubilant Ind. (Rs. 163.00) (Code: 533320) :- Recently, Aditya Birla Retail acquired
the hypermarket business of Jubilant Industries. As per the deal, AB Retail will acquire four
hypermarket stores in Bangalore. Experts believe the stock is still undervalued, and peg the worth
of the share at Rs. 600.

SMART

18th May to 24th May 2015

INVESTMENT

28

Voltas (Rs. 289.00) (Code: 500575)

:- The company has 25% share of AC market


and is launching new products to expand its portfolio. Leading fund managers are bullish on the
stock.

Kokuyo Camlin (Rs. 93.00) (Code: 523207) :- Promoter holding in this stationary
segment company is 75%. Japanese promoter holds controlling stake. The stock is on the radar
after registering turnaround results.
ADF Food (Rs. 71.00) (Code: 519183) :- This packaged foods company has a solid
business model. Promoters are increasing their stake. Recently, they acquired 2 lakh shares from
the open market.

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SMART

18th May to 24th May 2015

INVESTMENT

29

High Risk High Return Shares


Zydus Wellness (Rs. 971.00) (Code: 531335) :- According to a leading brokerage
house, this stock is a safe bet in these uncertain times. Aggressive buying has been seen on the
counter in the past few trading sessions.

GE Shipping (Rs. 354.00) (Code: 500620) :- The stock has been in a tight range in
spite of very good performance in the fourth quarter. A leading fund house has taken long position
on the counter. In spite of all the problems in the sector, the stock can be seen outperforming.

Sequent Scientific (Rs. 572.00) (Code: 512529) :- This company was known as
PI Drugs earlier. Company has increased FII investment limit to the tune of 32.46% of the paid-up
capital, putting it on investors' radar.
Glenmark Pharma (Rs. 907.00) (Code: 532296) :-

A leading foreign brokerage


house has given a buy rating to Glenmark Pharma, which has led to some movement on the stock.

Dalmia Bharat (Rs. 504.00) (Code: 533309) :- This Dalmia group cement company
has achieved turnaround position in the fourth quarter. This led to a nine times increase in trading
volumes and big jump in price. It registered net profit of Rs. 47 crores as against loss of Rs. 5
crores last year.

Adani Enterprises (Rs. 738.00) (Code: 512599)

:- The shares of this flagship


company of Adani group have been on the rise. The stock has crossed all resistance levels to
make a fresh 52-week high of Rs. 739. According to a leading chartist, it can be bought for a target
price of Rs. 775 with a stop-loss of Rs. 685.

Eicher Motors (Rs. 18,707.00) (Code: 505200) :- Some analysts are very positive
on the stock despite high valuation. The margins of Royal Enfield are at an all-time high of 26.1 per
cent. The company is expected to grow at a CAGR of 65% over next three years.

Motherson Sumi (Rs. 495.00) (Code: 517334)

:- The company is gearing up to


acquire three auto component companies in Europe. Company is targeting business of US $ 18
billion by 2020, of which 65% is expected from the current businesses and remaining from the new
acquisitions.

Jubilant Food (Rs. 1748.00) (Code: 533155) :- Company has reported 26% rise in
net profit and 25% in sales in the fourth quarter. Credit Suisse has upgraded the stock and revised
the target price from Rs. 1620 to Rs. 1820. The company plans to revise its prices, which would
also have a positive impact on the stock.

Suven Life (Rs. 305.00) (Code: 530239)

:- This biopharma company has recently


received patents for its two products in Europe and HK. This is expected to add some life to this
under-performing stock.

Just Dial (Rs. 1070.00) (Code: 535648) :- In the last year, the share fell from a high
of Rs. 1,900 to a low of Rs. 1,036 on March 28. The decline was mainly because of sale of their
stakes by PE investors. However, it is believed that some big players have acquired large number
of shares, which is expected to help the stock stabilise, and then spurt.

NBCC (Rs. 771.00) (Code: 534309) :- This PSU has corrected sharply from its highs.
Company recently bagged some orders in south India. The company is expected to bag big orders
in the smart city projects. The share can be seen touching Rs. 1000 levels in a year.

SMART
INVESTMENT

Outlook on Rupee

18th May to 24th May 2015

30

GLOBAL FX AUTHORITY

Dharmesh Makwana
Associate Director
at India Forex Advisors

Globally, the pound continued its upward journey after a comprehensive victory of the Conservative party under the leadership of David Cameron. The victory has cleared the political uncertainty, which has been a major pull back for the UKs economic recovery. The further gains in the
GBP/USD pair were muted as the Bank of England reduced its growth forecast for the end of the
year. The BoE is expecting that the UKs inflation might slow down to zero before heading upwards.
The short term upward movement in Euro restarted after the halting for a week due continued
downward surprise by US economic data. The EUR/USD pair surged to its four month high levels
after the release of improved GDP growth numbers from the Europe region. The European economy
grew 0.4% against the previous reading of 0.3%. On the other hand, the US economic data failed
to meet the estimates. The US retail sales number, which is a key indicator of consumer spending,
released at flat against the expected growth of 0.3%. The consumer sentiment released near its 7
month low levels of 88.6.
On the domestic front, Indias CPI inflation eases to four month low of 4.87% and WPI inflation
tumble to its life time low of -2.65%. The favorable crude oil prices continued to put downward
pressure on headline inflation. Interestingly the food inflation remained in control despite the untimed
rain. The industrial production numbers continued to paint ugly picture of economy. The Industrial
production grew by just 2% against previous reading of 5%.
Globally, the market participants will be closing the monitoring the selloff in the debt markets.
The German debt yield has surged from 0.06% to 0.70% in just matter of 2 weeks, the US bond
yield has also surged near its five month high levels of 2.36%. The declined spread between US
and German yield has resulted in carry trade unwinding and supported short term upward movement in the EUR/USD pair. The EUR/USD pair will take further cues from the Euro Area flash
manufacturing PMI numbers and Ifo Business Climate.
The US dollar, which has been trading with negative bias, will take further cues from the FOMC
meeting minutes. The US Fed has earlier maintained that the temporary halt in the recovery is due
to unfavorable transitory factory. The US CPI inflation is expected to release near 0.2% level. The
Japan yen, which has been trading in a range from last few months, will take further cues from the
monetary policy stance of Bank of Japan. The BoJ is expected to keep its monetary policy stance
unchanged to support the economy.
On the domestic front, the equity markets, which have been very volatile in last few weeks, will
take further cues from the global cues as the result session in its last phase. The Reserve Bank of
India had earlier rejected all bids for 364 days treasury bill auction, indicating that the central bank
is uncomfortable with the current yield of markets.
In the weekly chart of USDINR, we are observing that upward price momentum in the pair has
halted after taking resistance around 64.30 levels which is the top to top rising trendline. Weekly
RSI is exhibiting a negative divergence, where the prices have made a higher high but RSI has
made a lower high suggesting weakness. USDINR pair is currently trading near the crucial support of 63.40 which if breached could test the levels of 63.10 and 62.80. Resistance on the upside
is at 64.30 levels.

SMART

18th May to 24th May 2015

INVESTMENT

Astromoneyguru says

31

Lt Col Ajay
09414056705, 9887056704

Gold to see profit booking any time


Third week of May 2015 is represented by planet known as Sun and year 2015 is represented
by Ketu.
During week important planet Sun,Moon, Mars and Mercury will be in Venus's house while
Jupiter will be in Moon's house.
Our advance prediction for stock and commoditiesprovedcorrect. Hope all readers must have
enjoyed unique advance predictions on stock and commodities
You can read all these advance astrological predictions in my book Ajay market theory 2015-16
Gold and copper are global commodities now as per Astro economics gold may see sharp profit
booking during this week. Bullion traders need to careful
Following stocks should be kept under observations during second half of the week
(1)HPCL (2) Asian paints(3) SintexInd (4) Lic housing finance
Second half of the week may not be very positive for global stock market banking stocks may
see sharp profit booking. Stock traders need to careful
The above prediction is based on financial astrology and stars. Risk management is mandatory
tool in stock and commodity trading.

SMART
INVESTMENT

18th May to 24th May 2015

32

Senior Astrologer
Dharmesh Joshi
Mob. : 9909941816

E-mail :
stockmarket@ganeshaspeaks.com

Sensex Predictions : Dt. 18th May to 22nd May


" Please consider 10 minutes plus and minus in each prediction, and act accordingly. " Ganesha
advises you to compare every prediction with the prediction of the previous time slot. " You are
advised to collect your own copy of the Market Predictions 2015-16 book at the earliest. " There
are going to be three Zero Weightage days in this month. Trade accordingly.

18-05-2015, Monday :- " You must have seen the amazing effect of the zero weightage
on the markets on the last Wednesday, 13-05-2015. Nifty slid down by -199 points on Tuesday,
12-05-2015, whereas it moved up by 546 points on 13-05-2015. Overall, thus, the pattern remain
highly volatile and unexpected. " Our neighbour country Pakistan yet again witnessed fresh violence on Wednesday 13-05-2015. " Although the market was trading at a bullish trend, Ganesha
had foreseen and predicted in advance that the Opening shall be positive on 13-05-2015. This
was exactly as mentioned in Ganesha's 2015-16 Stock Market Prediction Book. " Although Nifty
seemed to have moved up and down considerably within the last week, the overall difference was
only by 13.15 points. " The Sun has changed Signs, and is now in conjunction with Mercury, Mars
and the Moon. " From Opening to 10:30, Nifty shall move around the surface. " From10:30 to
12:00, Nifty shall remain positive. " Between the period from12:00 to the closing bell, just buy and
sell Nifty stocks, i.e., do only jobbing.

19-05-2015 Tuesday :- " Ganesha advises you in advance to remain very cautious while
trading in the Nifty stocks today, due to the conjunction of four planets - the Moon, Mars, Sun and
Mercury. " Friends, Mercury has now turned retrograde, so there may be high volatility in Bank
Nifty as well as Bank Stocks. Hence, you should proceed ahead with caution, only as per your
delivery capacity. " Ganesha informs you a week in advance that the Opening on 21-5-2015 and
22-05-2015 might be negative. Thus, you must be ready to deal accordingly. " Friends, we would
like to remind you that tomorrow will be a Zero Weightage Day. " Do not depend on the Preopening; just expect a flat to negative trend till 10:30 at Nifty today. " From 10:30 to 12:00, Nifty
may move upwards, step by step. " Between 12:00 to 12.30, Nifty may witness a small correction.
" From 12:30 to 13:45, Nifty shall go up. " Between 13:45 to 14:15, be ready to book your profits
at Nifty. " From 14:15 to 15:15, there may be slight buying in the Nifty Stocks. " You may again
book your profits in Nifty, during the last 15 minutes of the trading day.

20-05-2015 Wednesday :-

Friends today is a Zero Weightage Day, and you already


know the history of such days. " Not making a loss during the Zero Weightage Days should be
considered as your profit. " Hence, it would be sensible to only do delivery based Intraday; else
just avoid doing anything today. " Today Nifty may be positive during the opening period, and then,
it may move downwards immediately. Thus, do not take high risks, till the time the market gets
stable. " Buy in Nifty at around 10:00, and at around 11:00, once again book your profits. " Buy
Nifty at around 12:10, and take an exit around 13:10. " If you wish to speculate, short sell at
around 13:15 and square off your deals, as soon as you book your profits.

21-05-2015, Thursday :- " Today Moon-Venus shall be in conjunction, and this planetary
combinations shall encourage you to create your portfolio. Do so, but proceed ahead after calculation of exiting in 2018. " Opening trend for today and tomorrow does not look set to be reliable

SMART
INVESTMENT

18th May to 24th May 2015

33

at all. Thus, you must wait for the first hour of the day, and let things settle down a bit. " 10:15 to
13:15, there may be strength at Nifty, owing to the expected buying trend in the A Group stocks. "
Nifty shall remain soft, though, during 13:15 to 14:00. " From 14:00 to 14:30, there shall be slight
buying in Nifty, but overall this may not be a very useful trend, feels Ganesha. " The last half an
hour of the trading day shall comprise the highest volatility time frame of the day. You will get to
see movement on both the sides; thus, it is the best time slot for Intraday.

22-05-2015, Friday :-

" Today is the last day of the trading week, and it is also the day of
settlement for Dabba Trading. Thus, Ganesha urges you to be extra cautious today. " Today, if
you combine the collective wisdom of Astrology, Technical and Fundamental analysis, and view
your trade strategy, you shall benefit vastly. " Friends, now Sun-Mars shall be in conjunction. You
shall be able to volume-based work in the Pharma stocks now. " From Opening to 12:00, Nifty
shall have movement on both the sides, and you would do well to follow the adage 'Trend is our
Friend'. This will also help you earn well. " Nifty shall be up during 12:00 to 13:00. " Nifty will be
down from 13:00 to 13:40. " Nifty shall again be up from 13:40 to 114:30, says Ganesha. " The
trend shall overall be soft in Nifty during 14:30 to 15:30.

SMART
INVESTMENT

18th May to 24th May 2015

34

News Track

Dena Bank declares 9% dividend


PSU bank Dena Bank suffered due to higher provisioning of NPAs and lower NIM . For the
fiscal 2014-15 it marked lower net profit of Rs. 265 crore against Rs. 552 crore for the previous
fiscal. Bank's business mix and deposits marked surge of 4.20% and 5.37% respectively. Its NIM
stood at 2.28%. However, for the current fiscal it hopes to attain NIM of around 2.50-2.75% and
hike in credit growth of 15% and deposit growth of 13%. For the fiscal 14-15 it has announced a
dividend of 9%.

CARE launched CDQI


Credit Rating and Research Ltd (CARE) has announced a dividend of 80% for the concluded
fiscal. For the year 2014-15 it clocked in total income of Rs. 257.21 crore with a net profit of Rs.
140.33 crore. CARE has also launched CDQI (CARE Debt Quality Index) with a base year 201112 that covers 1589 companies across the board. With major thrust on MSME ratings, CARE
hopes to turn out better performance for the current fiscal. CDQI that was at 100 as on 31.03.12
stands at around 95% at the end of April 2015. CARE will be announcing this index at the end of
every month that will help tracking the debt scenario of Indian corporate.

SMART

18th May to 24th May 2015

INVESTMENT

35

REVIEW OF SMART PLUS NEWS LETTER


Amazing 45% RETURN SMART
GAIN FOR SMART INVESTORS
Company

Reccom. Weekly
11-5-15
High
Mon.
Reliance
860
898
Adani Port
319
344
Cipla
640
696
IDBI
75
78
Genus Ovr.
26.5
29
Laxmi Ovr.
11
13
DCM
93
95
Styrolution ABS
622
655
DIC Inida
398
461
Shoppers Stop
374
389
A.B. Nuvo
1871
1913
Century Tex.
637
658
Kotak Bank
1327
1355
Merico Kaya
1585
1655
Claris Life
254
264
L&T
1597
1629
Sun Pharma Adv. 384
400
Sundram Clyton 1899
1958
Eicher Motors 15789 18460
KajariaCeramics
565
799
Asian Paints
760
801
Piramal Enter.
978
1019
Welspun India
498
551
Kirloskar Bro.
186
203
Sintex
108
112
UPL
505
524

4.42
7.84
8.8
4
9.4
18.2
2.2
5.3
15.8
4
2.2
3.3
2.1
4.4
3.9
2
4.2
3.1
16.9
41.4
5.4
4.2
10.6
9.1
3.7
3.8

Company

Reccom. Weekly
11-5-15
High
Mon.
SKS Micro
447
470
G.E. Shipping
355
364
Amtek India
123
133
Rajesh Exports
242
252
CIPLA
653
696
ICICI Bank
316
325
Hindalco
139
145
Tata Motors
513
530
International Comb.231
303
Amtek India
123
133
Jubilant Ind.
149
179
Pantaloon Fashion 170
202
Tirupati Tyres
114
132
Shameroo Enter. 203
234
Mandhana Ind.
253
264
Philips Carbon
106
121
Ashok Leyland
68
75
Pitti Lamination
62
67
Conart Engg.
24
28
Shivam Auto
117
127
Global Vectra
46
53
PTC India
53
69
Lancor Holding
93
97
First Source
30
31
Opto Circuits
20
22
Micr Ele.
11
16

5.1
2.5
8.1
4.1
6.6
2.8
4.3
3.3
31.2
8.1
20.1
18.8
15.8
15.3
4.3
14.2
10.3
8.1
16.7
8.5
15.2
30.2
4.3
3.3
10
45.5

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18th May to 24th May 2015

37

Editor : Dilip K. Shah

ARCHI PUBLICATIONS
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Disclaimer :- Investment recommendations made in Smart Investment are for information
purposes only and derived from source that are deemed to be reliable but their accuracy and
completeness are not guaranteed. Smart Investment or the analyst / writer do not accept any
liability for the use of this column for the buying or selling of securities. Readers of this column
who buy or sell securities based on the information in this column are soley responsible for their
actions. The author, his company or his acquaintance may / may not have positions in the scrips
featured herein

SMART
INVESTMENT

18th May to 24th May 2015

38

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