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SHOOTING STAR
17 / 07 / 2010. form of a shooting star. showing a slower than their guidance the performance of The Sensex opened
The market gave a One more cause of expected growth rate upwards, the warning the company. the week at 17875,
breakout as the Nifty worry is the negative of 11.5%, followed by signals were clear However the market made a high of 18167,
crossed the previous divergence visible in the Infosys results when they warned rejoiced the TCS a low of 17855 and
high of 5399 and the oscillators. Hence results as it beat the closed the week at
clocked a new high of one needs to maintain street expectations by 17955. The Sensex
5453. But that joy was cautious stance. In a big margin. The gained 122 points on a
short lived as profit order to negate the market has held on to weekly basis. Similarly
booking set in, as is the bearish shooting star the gains for the past Nifty opened the
case whenever the reversal pattern, the week, but at higher week at 5352, made a
Nifty approaches the Nifty needs to close levels follow up high of 5453, a low of
supply trendline above the current high buying is missing and 5351 and closed the
which is acting as a top of 5453. as a result the market week at 5393. The Nifty
for the rising channel. FOLLOW UP continues its struggle too closed with the
In the process, Nifty BUYING NEEDED. which came in below about the global around 5400. week with a gain of 39
has made a bearish The week started expectations. Even uncertainty and how T E C H N I C A L LY points.
reversal pattern in the with the IIP numbers though they improved that might drag down SPEAKING. Continue on ........7
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ONLY RS.1000
ONLY
C ONSOLID
ONSOLIDAATION OR C ORRECTION –
CORRECTION
CA
CATT ON WALL THINKING WHICH W
WALL WAAY
TO MO VE? ZIG-
MOVE? ZA
ZIG-ZA
ZAGG T
TOO C ONTINUE
CONTINUE
Fireworks for the Finally, A positive 18183… This week 5407 & 5382 levels will de- R E S I S TA N C E S :
week 19 th JULY 2010 - signal from SEBI, re- NIFTY 5393 5382 will act as “KEY cide the trend of mar- 5407, 5469, 5518 &
23 th JULY 2010 duced exposure mar- TECHNICAL VIEW LEVELS” – if it main- ket in this week… 5571…
MARKET OUTLOOK gin for stock deriva- (Week 19.07.10 – tains above 5407 or SUPPORTS: 5382, NIFTY FOR THE
FOR THE WEEK tives by 5% – which 23.07.10): maintains below 5342, 5287 & 5223… Continue on ......8
CONSOLIDATION had given a support-
OR CORRECTION – ing hand to Give a Since our market gives wide gap up/down opening in past 2-3 weeks based on global
CAT ON WALL THINK- New top in this cues and then trading entire day in 15-20 points range - positional or carry forward
ING WHICH WAY TO week… Similar, their trade being an suitable one. The following table is a follow-up of what we had recom-
MOVE? ZIG-ZAG TO proposal for intro- mended to our clients in last week as positional trade (Written in our article too) and
CONTINUE - Global duction of physical what we did with those holdings in this week.
Cues, Monsoon & Q1 settlement in Deriva-
Numbers are sup- tives segment is an WHAT WE DID WITH LAST WEEK HOLDINGS (TABLE 1)
porting Actors in this big positive move
play… from the point of SCRIP ENTRY SL ENTRY TGT POSITION
Global Cues wit- traders – than play- CHAMBLFERT 70 CA 1.40 0.50 07-JUL 4-5 HOLDING
nessed a mixed run ing in market with DLF C/F 286 280 09-JUL 297-306 BOOKED 100% @ 304-306 ON 12-JUL
last – While U.S. and 100% cash settle- DLF 300 CA 4.50 2 09-JUL 9-10 BOOKED 100% @ 12 ON 12-JUL
Euor markets main- ment… EDUCOMP C/F 540 524 CB 09-JUL 575-590 BOOKED 100% @ 600 ON 13-JUL
tained a bit positive SENSEX 17955
note, Aisan markets TECHNICAL VIEW ESSAROIL C/F 142 139 09-JUL 147-150 BOOKED @ 145.5-146 ON 12-JUL
holded in a slight (Week 19.07.10 – ESSAROIL 150 CA 2.80 1.80 09-JUL 5-7 BOOKED 100% @ 4-4.20 ON 12-JUL
IDBI 120 CA 3 2 29-JUN 5-7 BOOKED 100% @ 5.75-6 ON 13-JUL
IDFC C/F 182 177 08-JUL 190-195 BOOKED 100% @ 191-192 ON 13-JUL
IDFC 190 CA 3 2 08-JUL 5-7 BOOKED 100% @ 6 ON 13-JUL
IFCI 55 CA 3 1 30-JUN 6-9 BOOKED 100% @ 7 ON 16-JUL
IVRCL 190 183 09-JUL 198-210 EXITED @ 194-195 ON 12-JUL
MARUTI FUT 1410 1390 09-JUL 1450-1475 SL HIT - HOLDING BASED ON A NEWS
NOIDATOLL 32.70 32 08-JUL 36-37 EXITED @ 33.50 ON 12-JUL
PETRONET C/F 79 77 02-JUL 82-85 BOOKED 50% 82
PETRONET 80 CA 2.5 1.50 02-JUL 5-6 BOOKED 50% 3.70
POWERGRID 110 CA 1 - 29-JUN 5-7 HOLDING
RIL 1080 CA 16-18 10 09-JUL 40-45 HOLDING
negative zone… So it 23.07.10):
gives a caution note This week 17986 & RENUKA C/F 69.50 67.50 09-JUL 72-75 BOOKED 50% 72.5
that If they doesn’t 17918 will act as “KEY SUZLON 60 CA 2 1 02-JUL 4-5 BOOKED 100% @ 3.3-3.5 ON 14-JUL
cross & hold above LEVELS” – if it main- VIDEOCON 214 211CB 07-JUL 221-226 HOLDING
their July High levels, tains above 17986 or
then all the markets maintains below
may give up atleast 17918 levels will de- WHAT WE TRADE & HOLD (TABLE 2 - CURRENT WEEK)
some of their recent cide the trend of mar- SCRIP ENTRY SL ENTRY TGT POSITION
gains… ket in next week… AXISBANK C/F 1275-1280 1265 12-JUL 1315-1320 BOOKED @ 1310 ON 14-JUL
Last week I.T. gi- SUPPORTS: 17918, BANKNIFTY SHORT10000-10010 10040 14-JUL 9930-9880 MADE LOW 9901 INTRADAY SHORT
ants INFOSYS & TCS 17787, 17605 &
given good set of Q1 17394… EKC C/F 137 132 13-JUL 145-150-153MADE TOP 141 ON 14-JUL NEW SL 135
numbers – same time R E S I S T A N C E S : HDIL C/F 255-257 250 12-JUL 270-275 BOOKED 100% @ 273 ON 14-JUL
they given cautious 17986, 18183, 18366 & HDIL 260 CA 6 3 12-JUL OPEN TGT BOOKED 100% @ 16 ON 12-JUL
outlook ahead of 18545… ICSA 150 CA 3 1.50 12-JUL 9-10 MADE TOP Rs.5 & STILL HOLDING
Euro issue… In this SENSEX FOR THE
M&M SHORT 635-638 642 13-JUL 624-615 MADE LOW 623 INTRADAY SHORT
week, major Auto, DAY 19.07.10:
Bank, Cement com- Today, if SENSEX NIFTY SHORT 5430-5435 5460 14-JUL 5392-5373 MADE LOW 5376 INTRADAY SHORT
panies to come out maintains above NIFTY 5400 PE 75 63CB 15-JUL 117-132 MADE TOP 90 & STILL HOLDING
with their numbers… 17986 will give up- PFC C/F 324 307 16-JUL 360 HOLDING
Need to watch… side target of 18112-
TULIP BTST 173 170 16-JUL 180-185 MET BOTH TARGETS ON SAMEDAY
Still Rainfall is be- 18183 levels… Or
low expected level – else it may slide up to YESBANK 293 288 16-JUL 303-306 MADE DAY HIGH 300
Monsoon must be 17787-17695 levels… WIPRO BTST 400-402 395 12-JUL 410-415 BOOKED 100% @ 412 ON 13-JUL
atleast in the level to SUPPORTS: 17918,
manage the current 17856, 17787 & Note: In the above tables C/F stands for, recommended both Cash
cultivations… If so it 17695…
may help to reduce R E S I S TA N C E S : and Fut based on client's trading choice…
food inflation… 17986, 18057, 18112 &
Trading Analysis
Technical analysis behind technical line, it is a bullish attached to the same However, it is technical analysts skip
trading is when analysis trading indicator, and set of indicators. I frequently not the weekends and public
investors attempt to § Pattern of conversely, it may be personally give no case. This results in holidays when
predict future price price movements can time to sell if it falls weight to technical errors. drawing charts. As a
trends by relying on be mathematically below. analysis but I think it Mistake 2 result of such loose
historic data. They use modeled onto charts. One of the more is important to Researchers cannot time treatment, the
statistics that reflect The probability is that famous examples of understand the understand the nature charts are often
philosophy behind it. of the market. Some distorted. Some at
Neglecting the of them consider this least disputable
essential contents of to be a natural, not an methods occur, too.
processes that take artificially created Mistake 4
place in the market object. This complex The logical
resulted in the worst of difficulties and consequence of the
mistakes in further errors caused a huge topic of how to show
development of amount of incorrect time in charts is the
prediction topic of how to
techniques. represent price and
Scripts on +ve side Rtried esearchers
to find a
volume, as well as a
larger topic of
investor behavior such an already identified technical analysis is Divislab, KEC, ZEE, perfect ordering composition and
as prices, volume, price pattern will the “sell in May and YesBank, where it does representation of
open interest, moving repeat itself. go away” investing not exist at all trade data.
averages and other § It is only strategy which looks Crompgreav and and cannot exist. The circular graph
at the fact that HCC For example, of V.I. Yeliseev given
historically the stock Elliot Waves and above is one of
Nifty for 19/07/ market hasn’t done all F i bonacci attempts to bust
2010 to 23/07/ that well between technical analysis. Sequence. On the stereotypes that have
2010: Nifty CMP-5393 [ Key May and October Mistake 1 other hand, some of firmed up for many
(when you are The same them tried to apply to dozens of years of the
for down trend is now 5350- supposed to buy indicators are used to the market analysis technical analysis
5330 then target 5220-5200. for up again). analyze very different the chaos theory and evolution.
move from here 5400-5420 A commonly used markets: for instance, the fractal geometry, Mistake 5
leading indicator is the Why do we all
then 5490-5525] - relative strength construct only straight
Trend FLAT/Bearish. index (RSI) which
measures the relative
Previous Week trend lines?
In many cases,
trading variables to concerned with the out performance of a performance however, movements
make investment price and volume stock against another, of highs and lows are
decisions. These data action in the market, or against a market Nifty for 12/07/2010 to 16/07/2010: approximated by a
are plotted onto not the reasons for index such as the S&P Nifty CMP-5352 [ Key for down trend curve! The matter here
charts. This sort of the moves Nifty. Some technical is now 5280-5250 then target 5150- seems to be in that
investing is not § I n v e s t o r analysts believe that 5120. for up move from here 5330- building of straight
suitable for beginning behavior is the higher the relative trend lines is easy
investors but it is predictable and performance, the 5360 then 5430-5450] - Trend FLAT/ even for a schoolchild,
important to know trading psychology more likely the Bearish – Some new high is possible whereas it is rather
that this field of stock does not change – uptrend will continue. Scripts for long for this week : difficult to construct
“study” exists. trading patterns Others believe a high curves. The latter
Technical analysis identified decades RSI could mean an
IVRCL, Ashokleyland[+1.4%], needs knowledge of
is applied to the ago are still valid overbought stock, Indiabullsfinancea, Unitech [+9%], higher mathematics,
broader markets, today. suggesting that it is IndianBank , Albk[+3.7%], which is often a weak
single stocks or a Trading Analysis about to fall. JindalSAW[-2%], Optocircuit[+11%] point of many
group of stock such as indicators Technical analysts chartists (there is still
pharmaceuticals. It The indicators used also use numbers and HDFCBank[1.8%] one more way: study
ignores stock are either lagging or theories such as the Result : EXACT High 5453 features of MS
fundamentals and leading indicators. A F ibonacci sequence [predicted 5450] Excel…).
studies only the typical lagging and the Elliot wave Mistake 6
impact of previous indicator is the MACD theory, the latter stock market and both not relating to the The undue
stock movements on or moving average suggesting a stock bond market, Forex market in any way concentration of
future trends, c o n v e r g e n c e trades on repetitive and commodity since they describe technical analysts on
whereas fundamental divergence which wave patterns. market. In some cases, absolutely different intraday events is
analysis studies the shows the As you can see, this approach is objects. astonishing:
causes that can affect relationship between technical analysis is authorized by the Mistake 3 “If the price breaks
a stock price. two moving averages not necessarily cut- situation: A “false Taking undue this level, then …”,”the
There are a few of prices. If the MACD and-dry and various bottom” is a “false freedoms with time. volume was extreme
basic principles break above a signal interpretations can be bottom” everywhere. For some reason, Continue on ......7
SUBSCRIBE TER, A MULTY ANALYST WEEKLY TO GET SUNDAY MIDNIGNT, SUBSCRIPTION IS ONLY RS. 1000 PER YEAR
20-07-2010 to 27-07-2010 11
I P O
INDUSTRIES capital market
on 19-07-10,
tries also undertakes
operational contracts
to its existing operational
contracts. The manage-
tion from Andhra Univer-
sity.
LIMITED with public is- for comprehensive
end-to-end packaging
ment expects exports to 2. Mrs. M Supraja, 49
The Hyderabad based sue of 45, contribute approximately years, is wife of Mr. M
packaging consumable 00,000 equity solutions at custom- 12% of revenue this finan- Madhu Mohan Reddy.
manufacturer Midfield In- shares of Rs 10 ers' locations, en- cial year once the Thane
126-133 through abling clients to focus on BUSINESS
plant in Maharashtra, with Midfield Industries
book building their core products and
MIDFIELD INDUSTRIES LIMITED an installed capacity
of 6,000 tonnes per
Limited (MIL) is one of the
organized players in pack-
Issue Open: Jul 05, 2010 to Jul 07, 2010 OBJECTS OF THE ISSUE: annum, starts opera- aging industry catering to
Issue Type: 100% Book Built Issue tion of low tensile the demand for Industrial
(Initial Public Offer IPO) The objects of the issue are: steel strapping, in packaging consumables in
Issue Size : 15,428,571 Equity Shares * Expansion of existing manufacturing facility at August 2010. 80% of India. Midfield provides
Rs. 270 Crore Hyderabad, by setting up PET Strap, Stretch the production from packaging consumables
Face value of the shar: Rs.10 Films, PP Strapping, Collated nails – nails the Thane plant will like high tensile steel strap-
Offer price : Rs. 162 - Rs. 175 Per Equity Share cater to the export ping in various dimensions
making machine, market, while the rest
Minimum Investment : Market Lot: 40Shares and strengths, Seals for
* Setting up new facility for manufacture of VCI will be used for cli- different applications, Col-
Manimum Subscription : Rs.7000 Paper at Hyderabad. ents in west India. lated Nails & Corner
Miximum Investment : 560 Shares
Maximum Subscription : Rs.98000 * Expansion at existing manufacturing facility at Currently, the com-
pany exports to the
boards being used for gen-
eral and the end of line
Promotors : The Promoters of The Company are: Mumbai, by setting up Angle Board, Col- USA, the UK, packaging of goods by
Hindustan Media Ventures Ltd lated Nails Seals and Heat Treatment Plant. Canada, South Af- varied industries. The
Registered Office : HINDUSTAN MEDIA VEN * Expansion at existing manufacturing facility at rica, Australia and company also provides
TURES LTD Middle East coun- comprehensive end to end
Roorkee, by setting up Angle Board and tries.
BUDH MARG, packaging solutions to
Collated Nails and Seals. The company in- customers at their loca-
PATNA - 800 001. tends to enter the
Tel : 911123704600 * Setting up new facility for manufacturing High tions which enable them to
Tensile Steel Strapping and seals. capital markets to focus on their core prod-
Fax : 911166561445 raise money in the
Email : hmvlipo@hindustantimes.com * Augmenting Long Term Working Capital Re- range of Rs 56.7 ucts and competencies.
Website: http://www.hmvl.in quirement crore to Rs 59.85 NEGATIVE FOR
Registrar crore by issuing INVESTMENT
p r o c e s s . competencies. The en- around 45 lakh equity 1. IPO GRADE -2 by
Karvy Computershare Private Limited Atherstone Capi- deavor is to position itself shares of face value of Rs
Karvy House, 46, Avenue 4, Street No. 1, BRICK WORKS. The grad-
tal Markets are as a one-stop shop for 10 each in a price range of ing is constrained by com-
Banjara Hills, Hyderabad - 500 034 the sole BRLM. complete packaging solu- Rs 126 to Rs 133 per share. petitive nature of the in-
Andhra Pradesh, India The issue will tions entailing supply of Rs 13.15 crore will be used dustry, volatility in the raw
Phone: +91-40-23312454 close on 21-07-10. steel strapping, seals, for expansion of its exist- material prices, low pricing
Fax: +91-40-23311968 All details is as angle boards, pneumatic ing Hyderabad manufac- power, weak second line of
Email: einward.ris@karvy.com follow... packaging tools, L-plates, turing facility to produce management and long
COMP ANY’S VCI paper, besides render- PET straps, stretch films, working capital cycle.
Website: http://karisma.karvy.com ing field engineering ser- PP strapping, collated nails 2. High working capital
Lead Managers: I N T R O -
vices. Essar Steel, Nalco, and seals, Rs 4.17 crore will intensive with average re-
1. Edelweiss Capital Limited DUCTION Vizag Steel Plant and Bhilai be used to set up manu- ceivable in the range of 155
2. Kotak Mahindra Capital Company Limited Incorporated Steel plant are some of the facturing units for VCI pa- – 207 days for past 3 years.
Cheque Drawn In Favour Of in 1991, Midfield key clients for such con- per in Hyderabad; Rs 6.27 Both the suppliers of raw
"Escrow Account - Hindustan Public Issue - R" For Retail Industries Ltd is tracts. crore for expansion of the material and its clients are
Bidders a leading manu- Thane manufacturing facil- relatively large companies
facturers of steel The company had an ity for production of angel leaving MIL with little bar-
Listing : BSE, NSE strapping sys- installed capacity of 12,000 board, collated nails, seals gaining power.
tems and provid- tonnes per annum of steel and heat treatment plant; 3. Joint Venture with
ers of packaging solu- strapping, 100 lakh meters Rs 1.6 crore for expansion M/s Centaur Equipos de
IPO GRADING / RATING tions. Midfield provide per annum of angel of the Roorkee plant for
packaging consumables boards, 2.5 crore per an- manufacturing angel board
Flejado of Spain to setup a
Company with the object
Brickwork Ratings (BWR) has assigned an IPO like high tensile steel strap- num of seals, 8.4 lakh coils and collated nails and of setting up a Steel Strap-
Grade 2 to Midfield Industries Ltd IPO. This ping in various dimensions per annum of nails in FY seals; RS 1.27 crore for ping manufacturing facility
means as per Brickwork Ratings company and strengths, Different 2010. It has production fa- manufacturing high tensile in India.
has 'Below Average Fundamentals'. Brick- Seals for different applica- cility in Hyderabad, steel strapping and seal 4. The Trade Marks of
work Ratings assigns IPO grading on a scale tions, Collated Nails & Andhra Pradesh, and production at Sharjah; and the Company is not regis-
of 5 to 1, with Grade 5 indicating strong fun- Corner boards being used Roorkee, Uttaranchal, and Rs 5.35 crore for augment- tered and in case the com-
for general and the end of serves more than 500 cus- ing long-term working pany does not receive the
damentals and Grade 1 indicating poor fun- line packaging of goods by tomers worldwide.
damentals. Click here to download the Brick- capital requirement of Rs registrations, it may affect
varied industries. Cur- 5.35 crore. the business goodwill.
work IPO Grading Document for Midfield rently, the company caters On an average, 90% of 5. Rapidly changing
Industries Ltd. to companies across wide revenue comes from the PROMOTORS
technology may render the
spectrum of in- domestic market and rest PROFILE business unviable if not
ISSUE ALLOCATION dustries like steel, from exports. In FY 2009, 1. Mr. M. Madhu adopted quickly.
aluminium, glass, exports contributed 10% Mohan Reddy, 51, years, 6. Majority of the regu-
Institutional HNI Retail Employee copper, paper, au-
of net sales. The figure is a Bachelor of Commerce latory approvals/registra-
2,250,000 675,000 1,575,000 000 tomobile, white dropped to 3% in FY2010 from Sri Venkateswara Uni- tions with regard to the
Continue on ....18