Market Updates 25th April11
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Market Outlook »

Nifty could head towards 6000 and can further rise till 6150 levels

In the past two trading sessions, over 20 lakh puts have been written
at 5800 and over 40 lakh Puts at 5900 .We observed that put writers
were highly active at 5800 and 5900 put strikes hinting at their
bullish stance.Going forward, the Nifty is expected to face resistance
in the range 5900~5950. However, any close above can trigger short
squeeze resulting in the Nifty crossing 6100. .



Technical Calls »

Buy PARABOLIC cmp 51.2 stoploss 50 target 55

Buy TCI FINANCE cmp 66.05 stoploss 60 target 70

Buy BILPOWER cmp 118.5 stoploss 115 target 125

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] Momentum Calls »

Buy HOEC 217.00 Near term it may touch 225

Buy Garware 70.00 Near term it may touch 80

Buy Timken 213.00 Near term it may touch 220

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Investment »

Honda Siel Products

HSPP is the undisputed market leader when it comes to portable
generators. This has created a dual advantage. First, it provides a
solid network for launching other products as well as address the



Investment »

eClerx

eClerx has been the best performing India listed IT-BPO stock over the
last 3 years giving a cumulative return of 277%.This has been driven
by revenue growth, margins and returns that have been the best in



Corporate Report »
Zee Entertainment

Sports business and ad revenue surprised. Zee's 4QFY11 operating
revenue of Rs7.98bn improved 6% QoQ and 23% YoY on a positive surprise
in its sports business, and was 13% ahead of expectations.....



Analyst Corner »
Sesa Goa

If Sesa acquires 20% from open offer (at Rs355/share): Sesa Goa will
own 30.4% stake in Cairn India i.e., 10.4% stake acquired at Rs331/
share from Petronas and 20% stake acquired at Rs355/share from the
open offer.



Focus


Telecom

Traffic growth continues to be strong; slight pressure on tariffs: We
expect RPM decline of 2-3% QoQ v/s 1-2% decline for GSM incumbents in
the last two quarters and an average decline of 7-8% QoQ in the
preceding three quarters. Subscriber additions back to normalized
level of 19m-20m: Industry subscriber netadds were 19m-20m in January-
February 2011 v/s an average of 21.5m in 3QFY11, mainly due to decline
in subscriber additions for BSNL, Uninor, Videocon, and S Tel. MNP
update



Hindsights


Q4FY11 Earnings Preview

hile revenue growth will remain buoyant driven by seasonal Q-O-Q
vehicle sales growth (MHCV 36%, LCV 12%, PC 15%, 2W 2%), high
commodity prices(Crude 17%, steel 10%, lead 9%, rubber 16% Q-O-Q) will
impact sector wide margins despite product price increases.We expect
the Net Interest Margins (NIMs) to have peaked in Q3FY11 and there
will be substantial pressure on the same in Q4FY11E due to
hardeninginterest rate environment.