IPO of Prakash Steelage Ltd - Subscription figures

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Gaurav Agarwal
Head Dealer - DENIP Consultants Pvt Ltd

Market Update - 10/8/2010 - Disclaimer Post Applies

The markets should open at lower levels tomorrow due to pressure from the global markets which should give us a decent buying opportunity for some stocks in the market. Following would be my top picks:

·         Buy Axis Bank around 1280 for a target of 1312; stop loss at 1250

·         Short Bharat Forge @ 343.5 for a target of 339; stop loss at 350

·         Buy HDFC Bank around 2095 for a target of 2109; stop loss at 2085

·         Buy L&T around 1826 for a target of 1850; stop loss at 1799

Most of these stocks could open near their stop loss levels which would tempt me to still buy them and set lower stop loss levels, so I would advise you’ll to do the same. Also, most of these longs are the ones I would like to carry forward to next week for a decent 2% - 6% gain from current levels.

Hope you make good money off these long calls and do not overtrade them.

Thanks,

Dewang K. Mehta

DENIP Consultants Private Limited

www.denip.in | http://twitter.com./denipconsultant

Tata Motors declares its Quarterly results

Tata Motors Q1 cons net profit at Rs 1989 cr.

India's largest commercial vehicle maker - Tata Motors has announced its results for the quarter ended June 2010. It has reported consolidated net profit of Rs 1,989 crore as against loss of Rs 328 crore.
Net sales jumped 64.25% to Rs 27,055 crore from Rs 16,472 crore.

Its standalone profit after tax stood at Rs 395.72 crore as against Rs 513.76 crore for the quarter ended June 30, 2009 and revenues for the same period came in at Rs 10,416.26 crore versus Rs 6,404.02 crore, a growth of 62.7% (YoY).

Its luxury brand Jaguar Land Rover (JLR) has reported profit before tax of GBP 233.82 million.
The company said, "With the positive market reception of the enhanced product range in an improved market environment as well as continued cost reduction efforts, the business was able to show sustained quarter on quarter improvement towards solid profitability in the quarter."

Tata Daewoo Commercial Vehicles Company reported a 20.9% growth in sales in the quarter. Tata Motors Finance, the company’s captive financing subsidiary, reported a net profit of Rs 23.52 crore and improved its NPA performance through better collection efficiency.

In the domestic market, the company’s commercial vehicles sales increased by 38.7% to 100,186 units, mainly supported by medium and heavy commercial vehicles which grew by 62.4% year-on-year. Its market share in commercial vehicles segment was at 61%.

Source - moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer - DENIP Consultants Pvt Ltd

SBI Mutual Fund Declares Dividend

Thanks,
Gaurav Agarwal
Dealer - DENIP Consultants Pvt Ltd

Markets Today - 9/8/2010 - Disclaimer Post Applies

We expect the markets to trade in a narrow range where the upside is capped at 5,500 and downside is limited to 5,400 on the Nifty. However, for range for August series on account of concentration is 5,600 and 5,300.

Option Analysis:

·         Call writing: In today’s trading session maximum shedding was witnessed at 5,400 strike of 1.66 lakh contracts and fresh writing was seen at 5,700 of 2.53 lakhs contracts. Concentration is observed at 5,600 CE of 85 lakh contracts.

·         Put Writing: On the other hand, fresh writing in puts was witnessed across strikes. Major addition was seen at 5,400 PE of 6.87 lakh contracts. Concentration is observed at 5,300 PE of 97 lakh contracts.

Implications: Call shedding at lower levels and strong put writing at 5,400 levels indicates limited downside for the markets but we do not expect major upside also on account of strong call concentration at 5,500. So expect market to trade in a narrow range of 5,500 and 5,400 for next few trading sessions and wide range of 5,600 and 5,300 for August expiry.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 6^th August, 2010 close at 17 which is 2.13% lower as compared to previous close, after touching an intraday high of 17.92 and low of 16.87.

Weekly Market Outlook - 2nd week of August 2010- Disclaimer Post Applies

We are witnessing the first signs of weakness in the markets and I believe that it might be prudent to go short in the market. However, we might just drift along on the upside if global cues support. In terms of stock picks following :

·         GAIL – Buy @ 437 for a target of 450; stop loss at 430 (3% gain)

·         Kotak Mahindra Bank – Sell@ 811 for a target of 798 ; stop loss at 817 (2% gain)

·         Reliance Industries – Buy @ 1000 for a target of 1020; stop loss at 990 (2% gain)

In terms of small cap / mid cap picks following are some ideas:

·          Resurgere mines – Buy at 108 for a target of 115; stop loss at 105 (6% gain)

·         NOCIL Ltd – Buy at 21.6 for a target of 22.5; stop loss at 21 (4% gain)

Buy a Nifty put to hedge these longs.

Dewang K. Mehta

www.denip.in | http://twitter.com./denipconsultant

DENIP Consultants Private Limited

Nifty Weekly Update (2 Aug - 6 Aug).

Source: DNA Money

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DENIP Consultants Pvt. Ltd.

Markets Today - 6/8/2010 - Disclaimer Post Applies

Nifty trading at premium to spot, maximum call concentration than puts at higher levels and major put concentration than calls at lower levels indicates Nifty to trade in a narrow range of 5,500 and 5,400 for near term. However, the range for August series is 5,600 and 5,300 on account of concentration.

Option Analysis:

·         Call writing: During the week, shedding was seen at lower strikes. Maximum writing was witnessed between 5,700 CE and 5,500 CE where the open interest added is 40.7 lakh shares with maximum at 5,600 CE of 18 lakh shares. Concentration is observed at 5,600 CE of 86 lakh shares.

·         Put Writing: On the other hand, fresh writing in puts was witnessed across strikes. Maximum writing was witnessed between 5,500 PE and 5,100 PE where the open interest added is ~109 lakh shares with maximum at 5,400 PE of 34 lakh shares. Concentration is observed at 5,300 PE of 99 lakh shares.

Implications: Maximum put writing witnessed during the week indicates Nifty taking strong support at lower levels with 5,400 acting for the intermediate term. On the other hand, upside is capped at 5,500 for near term on account of more call concentration than puts. However the wide range of Nifty for August series is 5,600 and 5,300 on account of concentration.

FIIs and DIIs activity in capital market segment

·         FIIs were net buyers of Rs 665 crore with Gross buyers of Rs 2,669 crore and Gross Sellers of Rs 2,004 crore.

·         DIIs were net sellers of Rs 340 crore with Gross buyers of Rs 954 crore and Gross sellers of Rs 1,295 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 6^th August, 2010 close at 17.37 which is 1.92% higher as compared to previous close, after touching an intraday high of 17.71 and low of 16.63.

Implications: Indian VIX traded in a range in today’s trading session and closed almost near the high. We expect it to move upwards and are Bullish on the same which would have negative effect on Nifty.

Markets Today - 5/8/2010 - Disclaimer Post Applies

Higher put writing at lower levels than calls indicates strong support at lower levels especially at 5,300. However, on other hand, major call writing at higher levels indicates less upside. So, we believe markets to trade in a narrow range where the upside is capped at 5,500 and 5,400 maintaining a strong support for near term and 5,300 at lower end for August series.

Option Analysis:

·         Call writing: In today’s trading session shedding was witnessed at in-the-money strikes whereas writing was seen at higher strikes. Major writing for consecutive second trading session was seen at 5,600 CE of 11.52 lakh shares. Concentration is observed at 5,600 CE of 90 lakh shares.

·         Put Writing: On the other hand, fresh writing in puts was witnessed across strikes. Major addition for consecutive second trading session was seen at 5,300 PE of 10 lakh shares. Concentration is observed at 5,300 PE of 101 lakh shares.

Implications: Concentration and strong put writing at 5,300 levels indicates this as to act as a strong support for August Series and 5,400 for the near term. Whereas major call writing at higher level indicates Nifty losing its current momentum and facing strong resistance. We expect market to trade between 5,600 and 5,300 for August series on account of concentration.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 5^th August, 2010 close at 17.71 which is 3.93% higher as compared to previous close, after touching an intraday high of 17.72 and low of 15.83.

Implications: Indian VIX moved upwards after making a new low in yesterday’s trading session. We expect it to move upwards and are Bullish on the same which would have negative effect on Nifty

SUBSCRIPTION FIGURE FOR BAJAJ CORP Limited IPO.

BAJAJ CORP Limited IPO Category over Subscription:

QIB 20.19

HNI 55.07

RET 5.96

Total 19.25

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DENIP Consultants Pvt. Ltd.