Markets For 03/08/2009

The great Indian media battle has begun. The Raghav Bahl promoted TV18 Group that was expected to be Indian “ Dow Jones” has silently started giving space to the old behemoth Bennett Coleman and Co. With the advent of ET Now the prime space occupied by CNBC TV18 since a decade will have a serious challenger with deep pockets? The way Bennett Coleman & co. operates with its synergy and back end integrated process it will soon wipe out competition. Moreover Business channel is no more a cash-generating cow. Instead it has turned out to be a Glam model with inherent weakness unless cost structures are low. It’s high time that investors who have long been a “CNBC TV18“ loyalist turn cautious.

Even after two successive QIP and sale of non-core assets, Unitech has not been able to come out of deteriorating demand in real estate segment. When one looks at the cash flow statement of Dlf the outlook seems evenly worse. Company has a cash flow from net profits of 479 crs vs 5200 crs. Depreciation has reduced from 279 crs to 73 odd crs in a matter of one year. The only saving grace was inflow of 2450 odd crs from DAL. It seems that it was urgent for the company to reduce its unsecured loan by the same amount. Company had a decrease in cash balance of 449 crs for the quarter. Yes the stock price of almost all real estate companies can move up from here but the move will be technical in nature. Most of these companies are now being stripped of assets that could have helped them in eventual downturn. I personally believe that the mass housing projects with 20L tag price would turn out to be an illogical business proposition. Suddenly companies have started launching mass housing projects without understanding the depth of the model.

NIFTY (4635.45)

Resistance : 4670 / 4705 / 4740 / 4775

Suupport : 4580 / 4555 / 4520 / 4495 / 4435

SENSEX (15670.31)

Resistance : 15785 / 15900 / 16020 / 16125

Suupport : 15460 / 15350 / 15225 / 15065

NIFTY FUT (4636.05)

Resistance : 4650 / 4680 / 4730 / 4810

Suupport : 4605 / 4585 / 4535 / 4475 / 4405

On Monday,Opening Is Flat To Positive,

Buy NIFTY Above 4635,Sl Below 4620,Tgt 4665/80/4725/45

Sell NIFTY Below 4615,Sl Above 4630,Tgt 4585/55/35/05

BUY

VOLTAS Above 145,Sl 140

EDUCOMP Above 4050,Sl 4000,Tgt 4150/4200

NEYVELILIGNITE Above 140,Sl 135,Tgt 145/50

SBIN (1812),Sl Below 1790,Tgt 1830/45/60

GESHIPPING Above 245,Sl 235,Tgt 260/70/80+

NOIDA Above 35,Sl 30,Tgt 40/45/50 (Positional)

FUTURES

ICICI (759.05) : Buy Above 750,Sl 740,Tgt 765/70/75/80

INFY (2064) : Buy Around 2040/45,Sl 2015,Tgt 2075/85/95++

ONGC (1164) : Buy Above 1150,Sl 1130,Tgt 1180/90/1200/10

DENABANK : Buy Above 55,Sl 53.4,Tgt 57.4/58.5/59.1/59.8 [Lot Size : 5250]

JINDALSTEEL : Sell Below 2960,Sl 2990,Tgt 2940/25/10/2885/60/25++ [Lot Size : 160]