Todays' top five picks

Buy Orchid Chemicals with a target of Rs 202 per share and stop loss at Rs 183 per share.

It moved in a narrow range yesterday and broke out. We can buy this with a stop loss of about Rs 183 and target of Rs 202. The other reason to buy it is that the pharmaceutical tends to do well on choppy days.

Buy PNB with a target of Rs 950 per share and stop loss at Rs 925 per share.

PNB is one public sector undertaking (PSU) bank that is continuing to make fresh highs. So you can buy it with a stop of about Rs 925. It could move to levels of Rs 950 and then over the next few days even higher. So this is the strongest PSU bank.

Buy Mastek with a target of Rs 385 per share and stop loss at Rs 341 per share.

Mastek also made a fresh intermediate high. You could buy this with a stop of about Rs 341 and target of Rs 385. These are momentum trade breakouts happening. Some follow-through is expected today.

Buy Zensar Technologies with a target of Rs 323 per share and stop loss at Rs 293 per share.

Overall on the market, we are doing this narrow range of 5,050-5,110 on the Nifty. When you have these narrow ranges at the top of a move it is never a good sign. The correlation between equity and dollar index is breaking down. When this happens, things will change. Hence, people should keep close stops from here.

Buy KPIT Cummins with a target of Rs 120 per share and stop loss at Rs 102 per share.

KPIT Cummins moved in a very narrow range at Rs 100 levels. Yesterday, it suddenly moved up 8-10%. Small IT stocks like Mphasis, BFL and Patni have started doing well. So we could get targets of Rs 120 and keep a stop of about Rs 102. The market is right now a low conviction kind of market. So you have to take that on board when you look at these recommendations.

Stock Tips

Buy India Cement Target - 112-short term
Buy Orchid Chemical Target- 202 short term-stop loss 183

Wanna new business setup in India

If you wants to setup or expand your business in India at Delhi-NCR locations then feel free to contract for completed business solution:-

a) New Office Setup.
b) Investment in India.
c) Outsource your commercial office/work place setup.
d) Outsource your accounts and taxation works.
e) Investment in Real Estate.

Contact: Anil Garg
mobile no. +91-9971991197
Mail to: shivanil2000@yahoo.co.in or anilgarg9971991197@gmail.com

Todays Tip

Buy PSL on every dip- Fundamently good stock.
Buy Bharti @ 250 - Target 325-375-short term.

Buy Bharat Petroliem- Target 575- short term.
Buy Areva T&D India - Target 310 - short term.

IPO Corner

Kumar Urban Development to raise Rs 450cr via IPO

NTPC to launch follow-on public offer by Feb 2010: Sources

JSW Energy's Rs 2700 cr IPO to open on Dec 7

There's yet another power IPO ready to hit Dalal Street. JSW Energy, a part of JSW group, is coming out with an initial public offering (IPO) of Rs 2700 crore. The issue will open for subscription between December 7-9, 2009.
In a press conference, Managing Director Sajjan Jindal said, "We have operational capacity of 995 MW. We have not finalised anchor investors yet."
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It intends to utilise the issue proceeds to partially finance construction and development of the identified projects aggregating to 2,790 MW in capacity; 400 KV transmission project and mining venture, and for repayment of corporate debt.
For the year ended March 31, 2009, the company reported profit after tax of Rs 276.69 crore on total income of Rs 1,852.16 crore. It has debt of Rs 5,927.16 crore.
JSW Energy is an established energy company with 860 megawatts, or MW, of operational generating capacity and 2,790 MW of generating capacity in the construction or implementation phase, 135 MW of which has been commissioned. In addition, it has power generation projects at an early stage under development with a proposed combined installed capacity of 7,740 MW. It is one of the early entrants in the power trading business. Its goal and strategy is to become a leading full-service integrated power company in the Indian power sector with presence across the value chain.
The issue has been graded by CARE as CARE IPO Grade 4 indicating above average fundamentals.
The book running lead managers to the issue are JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IDFC – SSKI Limited, JP Morgan India Private Limited, SBI Capital Markets Limited, Morgan Stanley India Company Private Limited and IDBI Capital Market Services Limited. Karvy Computershare is the registrar.
In an interview with CNBC-TV18, Sajjan Jindal, spoke about the IPO plans and the road ahead for the company.

Here is a verbatim transcript of the exclusive interview with Sajjan Jindal on CNBC-TV18. Also watch the accompanying video.

Q: It's been a while since we saw an IPO from the Jindal stable. Why are you planning to list at this moment?

A: We have been operating this company JSW Energy for the last 10 years. But we didn’t have big plans and we were not building large projects and we also wanted to first have some real projects on the ground working, and only then come to the market to raise capital.

And that is why this is doing what we are doing right now. So you are right that we are coming after close to 14-15 years to the market. The basic reason for that is we have now a large project operational and the rest of it is in the pipeline.

Q: We understand it is a Rs 2,700 crore issue. Have you decided on the anchor investors in the IPO?

A: SEBI provides for having anchor investors. We are in discussions. But right now I can’t tell you who the anchor investors that we have are. But that provision is there and we are discussing.

Q: What is your current operational capacity? How much capacity do you intend to add with the money that you plan to raise through the IPO?

A: Right now we have 995 megawatt which has been commissioned and another 2,145 megawatt is under construction which is likely to get completed over the next 12 months. Therefore we will have 3,140 megawatts operationalised within the next 12 months. Beyond that more than 8,000 megawatt is in the development phase and it is in the pipeline for development.

Q: What is your assessment of energy demand and the potential for growth for the power sector?

A: The per capita consumption of electricity is one of the lowest in India. And as per the government records, a huge percentage of Indian population still doesn’t have access to electricity. So given all these things, there is a huge potential for electricity and a huge potential for power.

Power is one sector, which is the engine of growth for any economy. If we have to grow at 8-10% GDP then we must expand 10-12% in the power sector and that means close we have to add capacity of 18-20,000 megawatts every year.
So there is huge potential and I think what we saw with telecom in the ‘90s and early 2000s we are going to see in power in the coming years because it has great potential and our country really needs a large amount of power.

Source: www.Moneycontrol.com

Daily stock market information

Rashtriya Chemicals & Fertilizers Ltd.
Action: Hold, stop loss Rs 69
Date: Nov 24, 09
Target: 100
Source: Nititn Murarka (SMC Global Securities)

Market Live

Gujarat Mineral Development Corporation Ltd.
Action: Buy on dips
Date: Nov 24, 09
Target: 200
Source: Rajesh Agarwal (CD Equisearch)

Short term target

Buy Ultratech Cement - Target 820-Stop loss 790
Buy Allahabad Bank - Target 150-stop loss 136

Stock recommendations

Buy DLF - Target 400- short term
Buy Deepak Fertilizers- Target 143-short term

Free stock tips for Nov 23

Buy Varun Shipping - Short term target 65.
Buy Mercator Lines- Short term targer 85.

Short Term Recommendations - Nov 20
Sell Suzlon Energyy - Target 80

Buy J.P. Associates - Target 270-within one month - Stop loss - 200