BEML CMP 525 SL 495 Target 575
Company Description
BEML (formerly Bharat Earth Movers) is a public sector undertaking manufacturing BEML Limited operates as a construction equipment company in India and internationally. The company offers a range of mining machinery for opencast and underground mines; and produces machines, such as electric rope shovels, hydraulic excavators, bulldozers, wheel loaders, wheel dozers, dump trucks, motor graders, pipe layers, tire handlers, water sprinklers, and backhoe loaders, as well as mammoth walking draglines for the opencast mines.
BEML's products are exported to more than 56 countries. As part of the company's globalisation strategy, it has expanded global reach by opening a local company in Indonesia and Brazil recently in addition to offices in Malaysia and China.
Technical Comments
Stock has made positive Island reversal where 8-12% target in 1-60days can be possible in the stock. Stock Gapped-down(506-501) on 18/10/2011 and today gapped-up(497-498) and if the stock holds Rs.495 on downside then 575 on higher side can be possible.
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Friday, October 28, 2011
BEML - Technofunda
Tech Mahindra - Technofunda
Company Description
Tech Mahindra Limited provides information technology (IT) services to the telecommunications industry worldwide. Its IT solutions comprise consulting services, such as strategy planning, assessment, procurement, and re-engineering solutions, as well as planning, audits, and practices; system integration and transformation services; managed services,including application management, infrastructure management,revenue management, and mobile virtual network enabler services; application development, maintenance, and support services; B/OSS solutions; and business intelligence and data management solutions.
The company also offers network solutions and services, including network lifecycle, network integration and testing, data quality management, managed network, and network solutions; and infrastructure management services comprising data centre, managed network, application support, and end user services. The company was founded in1986 and is based in Pune, India.
Technical Comments
Stock has Gapped-up(570-571) after making higher low and higher high should target Rs.640 on higher side 100DMA -673 & 200DMA Rs.678 can possibly be target for the stock in short term, while strong support comes around Rs.560. Traders can hold the stock with Rs.560 as strong stop loss.
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Daily Fundamental Snippets - 28 October 2011
OUTLOOK
Asian stocks rose, poised for their best week in nearly three years, as a long-awaited plan to resolve the European debt crisis encouraged investors to put money back in markets driving up prices of risky assets such as the euro and commodities.The dollar steadied after nursing heavy losses, having suffered its biggest decline in more than two years against a basket of major currencies, after a European debt deal sparked a massive relief rally. The deal in Europe calls for private banks and insurers to take 50 percent losses on their Greek debt as well as agreements on recapitalization of hard-hit European banks and a leveraging of the bloc's rescue fund.
On domestic front the RBI, which has raised key interest rates by a cumulative 375 basis points since March last year, has also signalled that chances of another rate increase when it reviews monetary policy again in December are "relatively low". Though data released by the government on Thursday showed food inflation rose to 11.43% year on year for the week to October 15, compared with 10.6% in the preceding week, driven by a 25% jump in vegetable prices even as prices of food articles increased 0.25%. It is now a wait and watch policy.
Result season is in full swing with results for the day are BEML, Bharat Electrical, Indian Hotels, NHPC, Tata Global, Tata Elxsi.
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Theme - Winter Picks
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First Morning Technical Call_28102011
Market Outlook:
Nifty View-
S&P CNX Nifty has breached the supply zone of 5170 and closed above 5200 and with very positive global markets 3-4% in Indian markets in opening trade is possible as Euro Zone has led to global rally in stock and commodities. Today Nifty Gap-up would become positive island reversal and target of 5500-5700 could become possible in near term if today's Gap-up sustain. Nifty Gapped-down (5323-5229) on 5/August/2011 and closing this Gap will lead to heavy short covering and fresh buying. Normally Diwali has been turning point for Indian market in 2010 Diwali day market made all time high on closing basis while in 2008 Diwali day Market made low of 6years. Nifty 100DMA 5241 & 200DMA 5411 are important levels to be crossed. RBI has hiked policy rate by 25basis points, deregulated saving rate with immediate effect and scaled down growth forecast.
Sensex- Sensex has made a high of 17350 Diwali day and above 17357 Sensex would make high in 55trading days, and target of 18300 become near term target which is trend line resistance made from high of November 2010. Few calculation suggest the correction in 2011 is likely over and fresh major correction would start only after March/April 2012, if no major global events negates the up-move. Outperformance would come from beaten down good mid-cap stocks like SINTEX, VOLTAS, BEML, JINDALSAW, HDIL, CROMPTONGREAVES, IDBI, CUMMINS, and IFCI.
Technical Calls:
INDIANHOTEL-Rs.69 Stock has been correcting from high of Rs.118 made in May/2010 made a low of Rs.66 in August/2011 after which in the last 45trading day's stock has consolidated well. Now stock moving above Rs.70.5 is a break-out above falling trend-line resistance, above which Rs.76-78 becomes target. Stock is a beneficiary of weak rupee.
JPASSOCIATE-72 Stock has made a triangle formation, if the stock can hold above Rs.70 then Rs.80-83 becomes near term target. Stock has closed above 100DMA Rs.71.9 and trades above 50DMA Rs.68 for long time, once 200DMA Rs.79.9 is breached then stock becomes very bullish. Weekly and monthly charts are suggesting stock can soon target Rs.100 above levels.
Technical View: INDUSINDBANK-277, SAVINGBANK deregulation Impact- RBI in its policy meet has with immediate effect deregulated saving rate which is very positive for Banks with low CASA namely YESBANK, INDUSINDBANK, IDBI and LASKMIVILASBANK, while move can be negative for SBIN, AXISBANK, ICICIBANK and HDFCBANK which has high CASA. INDUSINDBANK has made high 0f 58trading days and trades near all time high of Rs.309 and chances of 325 in near term looks very possible.
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