Strategies for the Day

Date Company View Strategies Action Risk Reward

05-10-2009 RCOM BULLISH BUY CALL BUY 330 CA @ 10.00 2800 5600

OCT. EXPIRY

SL: 6.00 TGT: 18.00

DailY Tips

ABAN OFFSHORE

Execution Price Range Stop Loss Target

Buy Between Rs 1630 to 1650 1620 1680

INFOSYSTCH

Execution Price Range Stop Loss Target

Buy Between Rs 2300 to 2330 2290 2365

HINDUNILVR

Execution Price Range Stop Loss Target

Buy Between Rs 262 to 266 260 272

IDFC

Execution Price Range Stop Loss Target

Buy Between Rs 148 to 152 145 160

BHEL

Execution Price Range Stop Loss Target

Buy Between Rs 2300 to 2330 2280 2380

First Call

Buy UltraTech Cement with targets of Rs 920-950 and stop loss of Rs 809. The stock is currently trading at Rs 861.80, up 1.5% on the BSE.

Sell RIL with target of Rs 2074 and stop loss of Rs 2184. The stock last traded at Rs 2150, down 0.9% on the BSE

Buy 5000 Call with Nifty finding support at 4900.

UltraTech Cement has received a consolidation proposal from Samruddhi Cement Ltd, The company will hold a board meeting tomorrow to consider the consolidation proposal.

Sell Grasim with target of Rs 2550 and stop loss of Rs 2775, The stock last traded at Rs 2700.80, down 2.4% on the BSE.

Sell Unitech with target of Rs 97-98 and stop loss of Rs 107.75, The stock last traded at Rs 105.55, down 1.8% on the BSE.

MOMENTUM PICK

JBF IND

CMP Rs 97.5

• Company has largest capacity of Textile grade PET chips [4.32Lakh MTs]. It also manufactures Bottle grade PET chips, POY [1 Lakh MTs], FDY [25,000 MTs] and Speciality yarns [25,000 MTs] etc.
• Its subsidiary JBF RRK LLC, in UAE is in tax free zone and manufactures PET Grade Chips [1.5 Lakh MTs] and BOPET Films [75,000 MTs].
• All the products are high margin products, with stable crude prices and improved demand, the outlook for current year is quite robust, as can be seen from Q-1 results.
• Company is expanding capacity of FDY further by 72,000 MTs, at Silvassa at a cost of Rs 210 Crs.
• Company in a prudent move bought back own FCCBs worth $ 14.3 mill [out of 21.3 mill.] at 32.3% discount, last year.
• Consolidated sales and profits of the company are quite robust for even March'09. The current year working appears to be excellent.
• Promoters have increased the holding in latest quarter.
• Valuations of the company appear quite attractive with Market cap at just 2.4 times of cash profits of last year and 2 times of expected cash profits. PE is just 3.2X historically and 2.5 X for expected consolidated EPS of Rs 40/-.
• Look for the Target price of 150/-.

Currency Market forcast for 5th Oct

Dollar pair fell on Thursday even as equity bound bullish economic data . opened down by paisa to open the day below 48 levels and then went to make a low at Rs.47.77/USD before closing the day at 47.85. The markets remained

closed on Friday on account of Public Holiday in the country.

The Trade data which was released on Thursday showed a decline in export on y‐o‐y basis as Merchandise shipments dropped 19.4% in

august from a year earlier after sliding 28.4% in July. However the data was better than the previous months data which provided hope of

full recovery in coming months. Imports also showed considerable improvement from that of previous month with imports falling by

32.4% in August from 37.1% in July. Inflation continued to remain positive with WPI rising by 0.83% against expectation of 0.70%.

In the international markets Dollar index rose to 77.5 levels after release of Unemployment rate figures which rose to 9.8% from 9.7%

previous. However on Monday morning the index was quoting around 76.75 levels.

With Nifty quoting 75 points down in Singapore exchanges we expect a gap up opening for the dollar. However in medium term we expect a

range bound movement for the currency pair between 47.50 and 48.50.