Fertilisers - High distributor inventory dents volume; sector update :Edelweiss PDF link

Fertiliser sales volume declined in Q1FY13, as expected, owing to high inventory at distributors’ end (on account of inventory push from companies during Q4FY12) and delay in monsoon. While the inventory issue will be eliminated Q2FY13 onwards, progress of monsoon and exchange rate movement will be primary parameters which will determine fertiliser sales volume. In the domestic fertiliser space, we are positive on Coromandel International (Coromandel).

Vivek Patil Weekly Technical Analysis: Week of 16th July 2012 ICICI sec link

http://content.icicidirect.com/ULFiles/UploadFile_2012716102447.asp

Technical Report- 17.07.2012 -Angel Broking - PDF link

Technical Report

Market Outlook- 17.07.2012 -Angel Broking - PDF link

Market Outlook

Market Summary- 17.07.2012 -Angel Broking - PDF link

 

Market Summary

Derivatives Report- 17.07.2012 -Angel Broking - PDF link

Derivatives Report

FII & DII trading activity across NSE and BSE 17-07-2012

`	Buy	Sell	Net
	Value	Value	Value
FII	2088.27	1613.32	474.95
DII	777.45	1043.66	-266.21

 

-- 

FII DERIVATIVES STATISTICS FOR 17-Jul-2012

FII DERIVATIVES STATISTICS FOR 17-Jul-2012
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	49714	1271.58	44091	1142.23	611002	15376.54	129.35
INDEX OPTIONS	344660	8974.91	347557	9062.45	1668284	43326.38	-87.54
STOCK FUTURES	56704	1538.42	72134	1949.74	1003171	26382.23	-411.32
STOCK OPTIONS	42027	1173.36	43783	1220.57	70288	1946.99	-47.21
						Total	-416.72

-- 

Edelweiss Technical Reflection (ETR) 17 July

Edelweiss Technical Reflection (ETR)

Indian markets suffered its fourth consecutive daily loss with Nifty diving below the 5200 mark on a volatile day with low volumes. Unable to break past its 21 and 50 hourly EMAs, the bears helped pushed the index lower in the second half of the session, close to the height of the earlier ‘bullish gap’ of 5189. Even the 21-day EMA of 5212 has been violated on a closing basis indicating acceleration on the downside should follow. Breadth continues to drop in favour of declines suggesting widespread profit taking. Momentum has clearly shifted in the bearish camp in the short-term with daily and hourly oscillators rolling over. We maintain our downside target of 5125 (38.2% retracement of the up move from 4770 to 5330) and a possible test of the 200 DMA at 5094 which is also a cluster of earlier swing lows. Stop-losses can be trailed from 5300 to 5255 levels.

Barring the gains in Healthcare (+0.94%) index and Oil & Gas index (+0.07%), all other secotral indices ended lower. Among the notable losers of the day were IT (-2.34%), Metals (-1.98%) and Realty (-1.61%) sectors. Broader market Mid-cap and Small-cap indices traded in line with their frontline peer losing 0.60% each.

Bullish Setups: CNXBANK, BHEL, ITC, HMCL, BHARTI, IDEA

Bearish Setups: TTMT/A, JETIN, WPRO, ADE, SESA

Regards,

Stocks in News: 17 Jul ::Edelweiss

 Stocks in News

Profit-Sharing in oil set to be overhauled (ET)

RBI allows QFI’s to invest in Indian corporate bonds (ET)

Tata Steel to sell stake in Dutch Recycler HKS scrap (ET)

Godrej Properties to develop township in Panvel (ET)

Ess Dee’s plan to restart IFL’s Kolkata plant hits a hurdle (ET)

Finmin bans PSU banks from taking over loan accounts (ET)

Adani group eyes coal assets in Mozambique for $400 mn (BS)

Aban Offshore bags INR 1.02 bn contract (BS)

Gujarat Pipavav port raises INR 3.5-bn (BS)

Govt to impose 10% import duty on Sugar (M INT)

South Indian bank to raise INR 5-bn via QIP (MINT)

Reliance Industries in talks to sell Iraq assets to Chevron (DNA)

BSE, Bulk deals, 17/7/2012

Deal Date	Scrip Code	Company	Client Name	Deal Type *	Quantity	Price **
17/7/2012	532022	Filatex Fash	VSL SECURITIES PRIVATE LIMITED	B	100000	6.10
17/7/2012	532022	Filatex Fash	VENKATA KRISHNA SASTRY PILLALAMARRI	S	102022	6.10
17/7/2012	531820	Finalysis Cred	PANKAJ JAYANTILAL DAVE	B	32700	67.68
17/7/2012	531820	Finalysis Cred	ARVINDBHAI GORDHANBHAI KAKADIYA	S	30600	67.15
17/7/2012	514394	Gee El Woollens	UTKARSH PRINTING PRESS PRIVATE LIMITED	B	40472	18.75
17/7/2012	514394	Gee El Woollens	SUNDEEP CREDITS PVT LTD	B	40000	18.74
17/7/2012	514394	Gee El Woollens	ASHOK KANKUMAR AGARWAL	S	65000	18.75
17/7/2012	505720	Hercules Hoist	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	125900	152.74
17/7/2012	505720	Hercules Hoist	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	125900	152.94
17/7/2012	533506	Inventure Growth	JAYNEEL SECURITIES PRIVATE LIMITED	B	117074	36.01
17/7/2012	533506	Inventure Growth	EPOCH SYNTHETICS PRIVATE LIMITED	B	225000	35.99
17/7/2012	533506	Inventure Growth	D.J. SHAH SECURITIES PVT.LTD.	S	138936	36.00
17/7/2012	514312	Jaihind Syn	NARENDRA RAJA	B	24450	14.69
17/7/2012	531206	Kwality Cred	KISHAN KUMAR JAJODIA	S	27000	59.20
17/7/2012	531206	Kwality Cred	AJIT KUMAR SURANA & SONS (HUF)	S	25000	59.20
17/7/2012	511638	Madhur Capital	SATISH PURUSHOTTAM PASEBAND	B	60000	15.44
17/7/2012	531453	Mohit Inds-$	PRATIK PRABHUDAS JAJAL	B	87379	63.62
17/7/2012	531453	Mohit Inds-$	MEGHA MAHESH KHANDELWAL	B	74353	64.30
17/7/2012	531453	Mohit Inds-$	MEGHA MAHESH KHANDELWAL	S	74353	64.23
17/7/2012	531617	Osian Inds	JITENDRA RAMNARAYAN SINGH	S	56000	160.96
17/7/2012	505525	Parichay Invest	ASHLESH GUNVANTBHAI SHAH HUF	B	11579	236.89
17/7/2012	505525	Parichay Invest	VIPIN KUMAR GARG	S	8200	236.63
17/7/2012	533605	Prakash Constrowell	EPOCH SYNTHETICS PRIVATE LIMITED	S	75000	100.00
17/7/2012	526247	Premier Expl	SOLAR INDUSTRIES INDIA LIMITED	S	45658	71.82
17/7/2012	530111	Raj Packaging	MADANCHAND PRASANCHAND	B	45591	20.98
17/7/2012	530111	Raj Packaging	MADANCHAND PRASANCHAND	S	41042	21.15
17/7/2012	531207	Raymed Labs	UTKARSH PRINTING PRESS PRIVATE LIMITED	B	22000	24.20
17/7/2012	531886	SCOPE IND	SRIHARI DAMARAJU	S	53449	16.50
17/7/2012	511754	Shalibhadra Fin	JIGNESHKUMAR HARSHVADAN GANDHI	B	35500	53.56
17/7/2012	511754	Shalibhadra Fin	ROMESH ANILBHAI SHAH	S	43000	53.66
17/7/2012	505650	Skyline Millars	MILLARS MACHINERY COMPANY PVT. LTD.	B	771000	4.91
17/7/2012	505650	Skyline Millars	JETHABHAI V PATEL & CO FINANCE	S	771000	4.91
17/7/2012	500412	Thirumalai Chem	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	55924	95.76
17/7/2012	500412	Thirumalai Chem	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	55924	95.89
17/7/2012	531390	Upsurge Invest	PRIME HOUSING & FINANCE PRIVATE LIMITED	B	300000	53.74
17/7/2012	590111	VAISHNAVI	PARVATHANENI VENKATA SIVA GANGADHARA RAO	B	124838	5.25
17/7/2012	590111	VAISHNAVI	KANAKAVALLI TAYARAMMA MIKKILENENI	B	164328	5.30
17/7/2012	590111	VAISHNAVI	SREE LAKSHMI MIKKILINENI	S	118720	5.26
17/7/2012	590111	VAISHNAVI	SAI NITHISHA PARVATHANENI	S	132781	5.31
17/7/2012	507410	Walchandnagar	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	B	269086	96.14
17/7/2012	507410	Walchandnagar	CROSSEAS CAPITAL SERVICES PRIVATE LIMITED	S	269036	96.44
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price

NSE, Bulk deals, 17-Jul-2012

Date	Symbol	Security Name	Client Name	Buy / Sell	Quantity Traded	Trade Price / Wght. Avg. Price	Remarks
17-Jul-2012	ARSSINFRA	ARSS Infra Proj. Ltd	SURESH KUMAR ASHKARAN	BUY	44,726	45.14	-
17-Jul-2012	ARSSINFRA	ARSS Infra Proj. Ltd	SURESH KUMAR ASHKARAN	SELL	89,726	44.09	-
17-Jul-2012	HERCULES	Hercules Hoists Limited	CROSSEAS CAPITAL SERVICES PVT. LTD.	BUY	1,26,011	152.85	-
17-Jul-2012	HERCULES	Hercules Hoists Limited	CROSSEAS CAPITAL SERVICES PVT. LTD.	SELL	1,26,011	152.79	-
17-Jul-2012	KFA	Kingfisher Airlines Ltd.	TRANSGLOBAL SECURITIES LTD.	BUY	48,88,276	9.82	-
17-Jul-2012	KFA	Kingfisher Airlines Ltd.	TRANSGLOBAL SECURITIES LTD.	SELL	48,87,276	9.82	-
17-Jul-2012	RPGLIFE	RPG Life Sciences Limited	SUMMIT SECURITIES LIMITED	BUY	4,05,574	84.01	-
17-Jul-2012	SANGHVIFOR	Sanghvi For & Eng Ltd	AARAV FINANCIAL SERVICES PVT.LTD	BUY	82,664	71.47	-
17-Jul-2012	SANGHVIFOR	Sanghvi For & Eng Ltd	AARAV FINANCIAL SERVICES PVT.LTD	SELL	68,693	72.75	-
17-Jul-2012	TIRUMALCHM	Thirumalai Chemicals Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	BUY	55,021	95.73	-
17-Jul-2012	TIRUMALCHM	Thirumalai Chemicals Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	SELL	55,021	95.74	-
17-Jul-2012	WALCHANNAG	Walchandnagar Ind. Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	BUY	2,69,037	96.37	-
17-Jul-2012	WALCHANNAG	Walchandnagar Ind. Ltd	CROSSEAS CAPITAL SERVICES PVT. LTD.	SELL	2,68,399	96.16	-

Deepak Fertilisers and Petrochemicals Corporation - Gaining muscle; visit note; Buy :Edelweiss, PDF link

Deepak Fertilisers and Petrochemicals Corporation (DFPC IN, INR 130, Buy)

We recently visited the manufacturing facilities of Deepak Fertilisers and Petrochemicals Corporation (DFPCL) at Taloja (Maharashtra). Production ramp up at the new Technical Ammonium Nitrate (TAN) plant is underway at a brisk pace, which is currently running at a capacity utilisation of close to 50% (management has been guiding for FY13 exit capacity utilisation of ~75%); the older TAN facility continues to operate at 100% capacity utilisation. Its manufacturing facilities are well integrated to take advantage of most of the by-products and have minimal wastage. Over the years, the company had mastered the technology used for various products, which has substantially improved efficiencies. Maintain ‘BUY’.

Larsen & Toubro-Strong Q1 orders; sustainability a key concern :Nomura research

L&T has announced orders worth INR157bn in 1QFY13 so far (excluding
an order from Sadara Chemical Company, Saudi Arabia, for which the
order value has not been disclosed). Historically, disclosed order
proportion has been 60-80% of a total quarter’s inflows, and thus the
company could potentially end 1QFY13 with INR200-250bn worth of
overall inflows. The risk, though, remains that the share of disclosed
orders in 1QFY13 is higher than in prior quarters. Nevertheless, even with
L&T ending up in excess of INR160bn for 1QFY13 inflows, it would be
seen positively by the markets in our view. In the recent past, 1QFY13
orders have been ~23-24% of reported full-year inflows for the company;
however, this year, we believe, 1QFY13 has witnessed higher order
activity due to a carry-over of orders delayed from the previous year. As
such, the adjusted full-year run-rate seems to be between INR670-800bn,
which is higher than our current FY13 estimate of INR694bn.
Over the past few quarters and especially in 1QFY13, we note that order
inflow has been primarily driven by sectors such as building and
factories, roads and power T&D.

Magma Fincorp - Q1FY13 Result Update - Centrum

Magma Fincorp

Buy

Target Price: Rs101

CMP: Rs66          

Upside: 53%

In line with estimates

Magma’s Q1FY13 numbers, reflect a turn in fortunes with disbursement growth picking up and spreads expanding by 20bps QoQ (led by shift in loan mix). However, collection efficiency dipped to 98.3% (though still quite healthy) and write offs inched up to 0.35%. New products (housing, gold and general insurance) should bring in further diversification and improve profitability over the medium term. We retain Buy rating on attractive valuations and price target of Rs101.

JSW Steel -Better days ahead ::Espirito Santo,

JSW Steel
Better days ahead
Our on the ground and industry checks indicate swift progress on
approvals for category A/B leases with final go-ahead for the mines
expected, once the Forest bench at the Supreme Court of India
resumes court hearings, from the second week of July onwards. We
think JSW Steel is poised to enter a sweet spot with low raw material
costs and higher volume growth, once category A/B iron ore mines in
Karnataka are opened. The shift from the current e-auction pricing
mechanism towards leaseholder determined base/floor prices should
result in falling fines’ prices. Interestingly, with the impending MMDR
bill, we think JSWS is well insulated on earnings impact, given its nonintegrated
nature. Factoring in concerns over ongoing CBI
investigations, we value JSWS at a 15% discount to its historical
average EV/EBITDA and have a FV of Rs755/share. JSWS now trades
at a 26% discount (4.9x FY13E EV/EBITDA) to its historical 5-year
average EV/EBITDA and we see value in the stock. Reiterate BUY.

Is your fund batting for you? :: Business Line

Fund houses take the path of least resistance when voting on proposals of companies in which they have invested.

A company decides to treble pay for its top personnel after its profits fall. A pharma major wants to sink millions into real-estate development.

As a small shareholder, you may not be able to do much to stall such ill-considered company moves. But can your mutual fund do something about it? It can; the question is whether it will.

In a bid to raise governance standards, the Securities Exchange Board of India (SEBI) has been pushing funds to take a more activist role in the companies they invest in.

Sintex Industries announced its Q1 FY13 results: Microsec

Sintex Industries announced its Q1 FY13 results on 13 July 2012. The company’s consolidated Net sales decreased by 3% YOY to INR1081 crore and its EBITDA decreased by 6% YOY to INR178crore. EBITDA Margin of the company declined from 17.0% to 16.4% YOY. Consolidated PAT Ex EO declined by 20% YOY to INR76 crore. We maintain Buy at the current level of INR67.

Mundra Port & SEZ To reap benefits of cargo shift --Espirito Santo,

Mundra Port & SEZ
To reap benefits of cargo shift
Adani Port & SEZ (ADSEZ) is our silver bullet idea in the infrastructure
space. Tariff reduction at the major ports and infrastructure
bottlenecks at JNPT are likely to aggravate congestion at JNPT,
driving additional volumes at Mundra Port. We expect ADSEZ’s
superior growth profile to continue (FY13 volume growth at 35% yoy),
based on capacity expansion by its assured customers and the benefit
of its own timely capacity expansion. We aren’t too concerned with
its leveraged acquisition of Abbot Point, as the port has take or pay
agreements for its entire capacity (in a phased manner) and scope for
margin improvement. We think the current price presents an entry
point with an attractive valuation. But despite being a rare defensive
growth stock in the Infrastructure space, the governance risk means
caveat emptor.

Why not demat insurance too? :: Business Line

After the successful transition of shares and mutual funds to the electronic format, it is now time to turn attention to the other important instrument of the financial markets — life insurance. The insurance regulator IRDA (Insurance Regulatory and Development Authority) is expected to give its nod to the dematerialisation proposal soon.

To be sure, dematerialisation of insurance policy documents offers substantial benefits to all stakeholders. Policyholders, of course, are the biggest beneficiaries as they are not required to physically preserve policy documents.

Apart from the assurance that their policy document is in electronic format, policyholders also avail of single reference point for all their life insurance purchases. This is on the lines of the consolidated mutual fund statement that displays investment details across mutual funds.

This takes a load off the policyholder who invests a great deal of time and effort in tracking various policies, especially at the time of paying the premium. Equally relieved will be the family members who do not have to run pillar to post to seek policy details in case of an emergency.