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Markets snap dream run

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SI Team Mumbai
Last Updated : Jan 28 2013 | 2:26 AM IST
 The tailspin continued, with the quantum of the falls being huge for most part of the week, apart from a 15-point fall on Wednesday.

 However, the markets took a breather on Friday which saw upsides in select tech stocks spread some cheer ahead of 'Mahurat' trading on Saturday, marking the auspicious beginning of the Samvat year 2060. Down by nearly 50 points at one point, the BSE Sensex ended the day with a gain of 108.96 points.

 However, despite Friday's recovery, the Sensex ended the week with a loss of 173.16 points (3.5 per cent) at 4,757.37. The Nifty, meanwhile, ended 64.4 points (4.10 per cent) lower at 1505.05.

 TATA STEEL

 Last week's close (Rs) 337.63

 Prev. week's close (Rs) 355.88

 Week's high (Rs) 358.98

 Week's low (Rs) 328.70

 Last week's ave. daily turnover (Rs cr) 748.09

 Prev. week's ave. daily turnover (Rs cr) 728.99

 Futures close NT

 Number of up/down moves 1/3

 Tata Steel saw considerable selling on the counter last week, registering a decrease of about 4 per cent. According to market sources, there will be a lot of buying coming in at the current levels.

 "Tisco should see levels of Rs 400 soon and results are also expected to be good," says Pradip Doshi, CEO, PC Doshi Stock Broking.

 There were some concerns regarding US imposing anti-dumping and countervailing duties on import of Indian steel. Steel exports dropped 22.75 per cent in the first half of the calendar year.

 "Tisco is in for a short-term correction. However, there is a clear upside trend in the long-term with a price target of Rs 370 on the upside and support at Rs 339 levels," says Hemen Kapadia, technical analyst and partner, Morpheus Inc, an investment advisory firm.

 ACC

 Last week's close (Rs) 197.00

 Prev. week's close (Rs) 217.03

 Week's high (Rs) 220.55

 Week's low (Rs) 195.50

 Last week's ave. daily turnover (Rs cr) 145.01

 Prev. week's ave. daily turnover (Rs cr) 124.38

 Futures close NT

 Number of up/down moves 1/3

 ACC took a beating on the bourses last week, registering a decrease of 8.15 per cent. Market sources are of the opinion that after the LIC bid, the stock has lost lustre.

 "ACC does not seem attractive now," says Doshi. The stock is expected to remain flat throughout this week.

 "Though the long-term trend is up, the stock is in for an intermediate correction in the short to medium term," says Kapadia. The stock has support at Rs 180 and Rs 176 levels.

 On the upside, the price targets are Rs 219 and Rs 237. ACC's net profit increased 444.53 per cent to Rs 27.88 crore in the quarter ended September 30, 2003, compared to the corresponding quarter last year, mainly because of reversal of tax to the tune of Rs 20.95 crore.

 SHIPPING CORP

 Last week's close (Rs) 113.68

 Prev. week's close (Rs) 123.25

 Week's high (Rs) 119.95

 Week's low (Rs) 106.13

 Last week's ave. daily turnover (Rs cr) 38.39

 Prev. week's ave. daily turnover (Rs cr) 79.94

 Futures close NT

 Number of up/down moves 2/2

 Shipping Corp dipped 7.18 per cent on the exchanges last week. The Delhi High Court deferred the hearing until this week on a petition that challenged the government's decision to divest its stake in the state-owned shipping major.

 "SCI has lost its charm with issues surrounding the divestment plans and also due to lack of bidders," says Doshi. The government seems to have spoilt things for the stock.

 However, market players believe that there are medium- to long-term opportunities in the stock. "There can be a recovery after levels of Rs 125 and Rs 140," says Kapadia.

 GRASIM

 Last week's close (Rs) 699.13

 Prev. week's close (Rs) 785.80

 Week's high (Rs) 793.50

 Week's low (Rs) 691.98

 Last week's ave. daily turnover (Rs cr) 48.39

 Prev. week's ave. daily turnover (Rs cr) 53.18

 Futures close NT

 Number of up/down moves 0/4

 Grasim slipped 6.3 per cent amidst selling on the counter and a lot of volatility. Buying will increase this week with investors expecting the company to announce a bonus.

 "The market is bullish on the stock. We expect to see levels of Rs 1,000 in the medium term (two-three months)," says Doshi.

 The A V Birla group cement major posted an increase of 58 per cent in net profits to Rs 202.9 crore against that in the corresponding previous quarter.

 "Grasim is now in a corrective phase. Rs 795 is a good resistance," says Kapadia. He adds that in the short-term the stock will remain range bound.

 SATYAM

 Last week's close (Rs) 270.05

 Prev. week's close (Rs) 309.20

 Week's high (Rs) 314.80

 Week's low (Rs) 268.43

 Last week's ave. daily turnover (Rs cr) 629.04

 Prev. week's ave. daily turnover (Rs cr) 604.39

 Futures close NT

 Number of up/down moves 0/4

 Satyam Computer had a whirlwind week, in the course of which it posted its second-quarter results which were well received by the markets. The stock witnessed declines amid the selling pressure prevalent in the markets.

 However, the scrip staged a beautiful comeback on Friday, rising 10 per cent over its Thursday closing (a 3.8 per cent loss over its previous weekly close).

 On Thursday, the company announced its second-quarter results, beating street expectations. It posted a net profit of Rs 147.59 crore for the quarter ended September 30, 2003, compared to Rs 118.15 crore for the quarter ended September 30, 2002, up 24.91 per cent.

 The company also revised its earnings-per-share guidance to the Rs 16.69-16.94 range for the current financial year.

 "Satyam is looking poised to touch the Rs 350 levels within a span of 15-20 days", says Hitendra Vasudeo, technical analyst at stockwhizo.com.

 RANBAXY

 Last week's close (Rs) 948.48

 Prev. week's close (Rs) 1053.90

 Week's high (Rs) 1064.50

 Week's low (Rs) 939.13

 Last week's ave. daily turnover (Rs cr) 172.07

 Prev. week's ave. daily turnover (Rs cr) 149.38

 Futures close NT

 Number of up/down moves 0/4

 Ranbaxy Laboratories had a bad week on the bourses, slipping over 8.6 per cent over its previous weekly close.

 The company announced its third-quarter results on Wednesday, which showed a decline in its consolidated topline growth.

 On a consolidated basis, the group posted a net profit of Rs 186.3 crore for the quarter ended September 30, 2003, compared to Rs 148.8 crore for the quarter ended September 30, 2002, a 25.20 per cent rise.

 Total income increased to Rs 1236.7 crore from Rs 1067.4 crore. The company declared an interim dividend at Rs 5 per share for the year ended December 31, 2003.

 Dealers, however, are very positive on the scrip and expect it to pierce the Rs 1300 plus levels in a span of 1-2 months.

 WIPRO

 Last week's close (Rs) 1232.80

 Prev. week's close (Rs) 1420.10

 Week's high (Rs) 1430.00

 Week's low (Rs) 1224.25

 Last week's ave. daily turnover (Rs cr) 129.48

 Prev. week's ave. daily turnover (Rs cr) 166.22

 Futures close NT

 Number of up/down moves 0/4

 Wipro was caught in the tailspin that was prevalent among technology stocks last week. The scrip ended 9.34 per cent lower than its previous weekly close. Dealers say domestic mutual funds were dumping the stock.

 The company declared its second-quarter results last week, reporting a 6.17 per cent rise in its net profit for the half year ended September 2003 over the same period last year.

 The performance was led by volume growth in all IT segments, lowering pricing pressure and higher utilisation rates.

 The company saw a 1 per cent improvement in billing rates offshore, while onsite billing rates improved 3.4 per cent on a sequential basis.

 DIGITAL GLOBALSOFT

 Last week's close (Rs) 496.53

 Prev. week's close (Rs) 588.25

 Week's high (Rs) 603.65

 Week's low (Rs) 480.05

 Last week's ave. daily turnover (Rs cr) 218.40

 Prev. week's ave. daily turnover (Rs cr) 187.90

 Futures close NT

 Number of up/down moves 0/4

 Digital Global was at the receiving end of selling pressure last week and ended 10.27 per cent lower than its previous weekly close.

 However, the scrip saw huge upsides on Friday. The company announced its second-quarter results on Monday, which were in line with expectations.

 It posted a net profit of Rs 31.89 crore for the quarter ended September 30, 2003, compared to Rs 21.37 crore for the quarter ended September 30, 2002, an increase of 49.22 per cent.

 However, analysts were sceptical on the margins front and feel that the company's integration with HP ISO would see more pressure on billing rates.

 "Friday's strong showing shows the resilience in the scrip and it looks to test the Rs 650-660 levels in the next two months", says Vasudeo.

 Stock of the week

 INDIAN HOTELS

 Last week's close (Rs) 349.95

 Prev. week's close (Rs) 336.20

 Week's high (Rs) 355.00

 Week's low (Rs) 336.55

 Last week's ave. daily turnover (Rs cr) 3.68

 Prev. week's ave. daily turnover (Rs cr) 6.70

 Futures close NT

 Number of up/down moves 3/1

 Indian Hotels, one of the few gainers in last week's correction in the markets, rose around 3 per cent. Service sectors remain a market favourite and analysts expect the hospitality segment to outperform the markets like in the past.

 "We expect the scrip to cross Rs 400 in the near term," says Doshi. Players are extremely bullish on the stock and feel that there is opportunity in the short, medium and long term.

 "The stock gave a brilliant breakout at Rs 280 levels and will appreciate by more than 50 per cent in the long term," says Kapadia.

 The support levels for the stock are Rs 334 and Rs 350. The company's net profit grew 31.32 per cent to Rs 3.48 crore against that in the corresponding quarter last year.

 RECAP: TATA STEEL

 The scrip slipped about 4 per cent in the course of the week.

 Stock to watch

 TATA POWER

 Last week's close (Rs) 210.85

 Prev. week's close (Rs) 223.78

 Week's high (Rs) 231.85

 Week's low (Rs) 209.68

 Last week's ave. daily turnover (Rs cr) 104.55

 Prev. week's ave. daily turnover (Rs cr) 73.78

 Futures close NT

 Number of up/down moves 1/3

 The markets had been eagerly waiting for the news of the company acquiring a 330 mw plant in Uttaranchal from the promoters Voith Siemens, which would significantly augment electricity supply to the northern region.

 "It was good news at a bad time," says Doshi. However, he adds that there is a lot of bullishness surrounding the stock, with power reforms on the horizon, and may reach levels of Rs 500.

 "The trend is upwards. Rs 200 levels are a good support though one has to be cautiously optimistic. Short-term levels of Rs 242 can be expected," says Kapadia.

 Tata Power released its second-quarter results last week posting a net profit gain of 26.57 per cent to Rs 170.81 crore compared to that in the corresponding quarter last year.

 RECAP: RELIANCE

 The scrip was depressed amid the all round selling and ended the week 3.7 per cent lower at Rs 471.65.

 Mid-cap mover

 INFOTECH ENTERPRISES

 Last week's close (Rs) 115.90

 Prev. week's close (Rs) 144.63

 Week's high (Rs) 146.30

 Week's low (Rs) 110.05

 Last week's ave. daily turnover (Rs cr) 9.05

 Prev. week's ave. daily turnover (Rs cr) 9.91

 Futures close NT

 Number of up/down moves 1/3

 Infotech Enterprises was depressed on the bourses last week after posting disappointing results for the second-quarter on Wednesday.

 Although the scrip rebounded by 6.3 per cent on Friday, the magnitude of selling pressure saw the scrip closing almost 15 per cent lower than its previous weekly close.

 The company posted a net profit of Rs 3.04 crore for the September quarter of 2003, compared to Rs 6.52 crore for the quarter ended September 30, 2002, a decline of 53.37 per cent. Total income increased to Rs 32.15 crore from Rs 30.64 crore.

 RECAP: ALLAHABAD BANK

 The scrip continued to be buoyant and ended the week 3.9 per cent higher at Rs 23.50.

 Small-cap mover

 NEULAND LABS

 Last week's close (Rs) 136.60

 Prev. week's close (Rs) 132.10

 Week's high (Rs) 151.90

 Week's low (Rs) 132.25

 Last week's ave. daily turnover (Rs cr) 0.93

 Prev. week's ave. daily turnover (Rs cr) 0.32

 Futures close NT

 Number of up/down moves 2/2

 Neuland Labs gained 4.5 per cent last week over its previous weekly close after the company bounced into the black on Thursday.

 For the second quarter of the current fiscal, the company posted a net profit of Rs 1.95 crore on sales of Rs 34.48 crore, compared to a net loss of Rs 71 lakh and sales of Rs 24.41 crore.

 Exports contributed Rs 21 crore to the company's turnover for the quarter. For the half year ended September 30, 2003, the company's net loss stood at Rs 3.97 crore on sales of Rs 56.48 crore.

 RECAP: LINCOLN PHARMA

 The scrip slipped on the bourses and ended the week with a 7.3 per cent loss at Rs 29.30.

 Week

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First Published: Oct 27 2003 | 12:00 AM IST

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