We recommend a buy in Dish TV India from a short-term perspective. It is clearly visible from the charts of Dish TV India that it had been on a medium-term downtrend between April and July (from a high of Rs 66 to Rs 26). After recording a 52 week low at Rs 26 in early July, the stock reversed and began to trend upward.
This reversal was triggered by a positive divergence in the daily relative strength index. On August 4, the stock jumped 9 per cent breaking through the medium-term down trendline.
Subsequently, on August 7, the stock surged 11 per cent strengthening the up move. We observe heavy volume over the past four trading sessions. The daily RSI has entered into the bullish zone from the neutral region.
The moving average convergence and divergence is on the brink of entering the positive territory.
The stock is trading well above its 21- and 50-day moving averages. We are positive on the stock in the short-term.
We anticipate the stock to move up until it hits our price target of Rs 42 in the approaching trading sessions. Traders with short-term perspective can buy the stock, while maintaining a stop-loss at Rs 35.50.
Yoganand D.
BL Research Bureau

Thanks : business line

Mumbai, Aug. 6 After being battered for sometime now, cement company stocks in the BSE seem to have attracted investors’ fancy in the last one month. Expectations of a possible hike in cement prices post-monsoon and a marginal fall in prices of coal — one of the major raw material for cement production — have boosted investor sentiment.
On Wednesday, ACC rose 3.48 per cent to Rs 638, UltraTech gained 3.31 per cent at Rs 633, India Cement went up by 4.34 per cent to Rs 162, Shree Cement was up 3.05 per cent at Rs 646, Ambuja Cement gained 1.03 per cent at Rs 88 and Binani Cement was up 1.38 per cent to Rs 59.Buying opportunity
In fact, most of the cement stocks were hovering near the 52-week low, before investors spotted a value-buying opportunity. In last one month, ACC jumped 33 per cent, India Cements 24 per cent, Binani Cement 23 per cent, Shree Cement 22 per cent, besides Ambuja Cement and UltraTech are up 18 per cent each. Hit badly by the rising raw material cost, especially imported coal, companies have hinted that they will review the retail prices after the end of the monsoon, when the demand picks up.
However, earlier this month, international coal prices were down marginally, taking a cue from China, which capped prices at the July-level. “Prices in the major coal-producing province of Shanxi stabilised after the price limit were imposed last week. But there are chances that international prices may deviate from the trend in China and move up again,” said an analyst.
Investors have deserted cement companies’ stocks after profit margins were squeezed in the first quarter of fiscal ’09. Companies had voluntary agreed to hold prices as part of the Government measure to cool down the raging inflation.Strong demand
Buoyed by the strong demand, cement companies have embarked on a massive expansion plans. In the XIth plan period, the industry is expected to have an additional capacity of 118 million tonnes (mt) from the current 200 mt.
“Enthused by the industry performance in the last 15 months, additional capacities of about 90 mt have been announced by different manufacturers. These capacities, according to such announcements, are expected to be commissioned over three-year period, creating an imbalance in demand and supply, resulting in impact on realisation. However, impact be partially mitigated by increased volumes and improved cost efficiencies,” Grasim Industries said recently in its annual report.

Suresh P. Iyengar

We recommend a sell in Rolta India from a short-term perspective. From the charts of Rolta India, we observe that the stock has been on a medium-term uptrend from its early July low of Rs 224. This uptrend has reversed from the significant resistance at Rs 340. The stock had formed a medium term peak at this level in May too and declined more than 30 per cent from there. We notice a bearish engulfing candlestick pattern (a reversal pattern) in the daily chart on August 5. The oscillators in the daily chart are in the overbought region and are ripe for a correction. The daily relative strength index has entered into the neutral region from the bullish zone. Loss of momentum is evident in the short-term. Taking into consideration, the significant resistance and bearish engulfing candlestick pattern, we are negative on the stock in the short-term. We expect the stock to decline until it hits our price target of Rs 280 in the approaching trading sessions. Traders with short-term perspective can sell the stock, while maintaining a stop-loss at Rs 326.
Yoganand D.
BL Research Bureau

Thanks : Business line

We recommend a ‘buy’ in Triveni Engineering and Industries from a short-term perspective. It is evident from the charts that it was on an intermediate-term downtrend from its January 2008 high of Rs 195 to it July low of Rs 64. However, the stock reversed direction and has been on a short-term uptrend since early July. During this up move, the stock first crossed over 21-day moving average and later 50-day moving average as well.
On August 1, the stock conclusively penetrated its intermediate-term down trendline by surging almost 5 per cent, accompanied with extraordinary volume. The daily relative strength index has entered in to the bullish zone from the neutral region. Moreover, the daily moving average convergence and divergence has entered in to the positive territory. We are bullish on the stock in the short-term horizon.
We expect its current up move to prolong until it hits our price target of Rs 110 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 91.
Yoganand D.

Thanks : TheHinduBusinessLine

Bharat Heavy Electricals on Thursday said that its thermal sets generated over 100 billion units of electricity in the first quarter of the current financial year (2008-09).
“BHEL-manufactured thermal sets generated over 100 billion units (BU) of electricity in the first quarter of the current fiscal as against 97.1 BU in the same period last fiscal,'' the company release said.
As many as 23 company manufactured thermal sets registered a Plant Load Factor (PLF) of 100 per cent and 76 units operated at a PLF of 90 per cent in the first three months of 2008-09, it said.
BHEL has so far bagged orders for 69 sets of 500-600 MW capacity each, out of which 33 have been commissioned. The company plans to introduce 800 MW thermal sets.
The company recently bagged Rs 2,080 crore turnkey contracts to develop 400 MW thermal power project in Syria. The order has been placed by Public Establishment of Electricity for Generation and Transmission (PEEGT), Ministry of Electricity, Syria.
With this order, the company makes its maiden entry into the Syrian Power Sector. The company will design, manufacture, supply, erect and commission the main plant equipment with associated auxiliaries, balance of plant and electrical and civil works. - PTI