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BSE Sensex: (14899) we said ‘the market is expected to be volatile due to profit booking’ and market unfolded as expected and closed sluggish due to profit booking and yet not compromising the trend so far…technically the trend is still intact up…and I would like watch the crucial support of 14765 and trade long…

Tata Motors fell 0.24% to Rs 428.80 on BSE, off early low of Rs 418 touched after the company suspended work at the Nano plant in Singur, West Bengal.

Meanwhile, the BSE Sensex was down 129.16 points, or 0.86%, to 14,920.70.

KSK Energy Ventures spurted 9.02% to Rs 215.70. It was the top gainer from BSE’s A group shares.

Akruti City jumped 7.60% to Rs 962.15. It was the second biggest gainer in A group. It was one of 39 stocks included for trading in the futures & options segment of the National Stock Exchange (NSE) from Thursday, 21 August 2008.

Sanju Verma, Executive Director and Head-Institutional Business, HDFC Securities, feels the markets are still not out of the woods yet. “Cues from the global and domestic front are still mixed. Dark clouds are still hovering on the macro front. So, I don’t see too much of an upside in the markets.”

IIFL has recommended a buy rating on United Phosphorous (UPL) with a 12 months target price of Rs 373 in its September 4, 2008 research report. “UPL management’s upbeat commentary on outlook and strong revenue growth indicates a healthy demand environment for agricultural inputs. On the other hand, supply and cost pressures on raw materials remain an overhang on agro-chemical suppliers. We expect UPL to report better return ratios from FY09, as cost savings from Cerexagri restructuring begin to accrue. The company should also benefit from rupee depreciation, given its net exposure of 27% to forex earnings. UPL’s cash position remains comfortable following the recent equity infusion, which should support near term acquisitions and organic investments, Buy,” says IIFL’s research report.

Angel Broking has recommended a buy rating on Sadbhav Engineering in it September 1, 2008 research report. “Sadbhav Engineering (SEL), a mid-sized player in the Infrastructure space, is becoming a player to reckon with on account of moving up the value chain, from being a sub-contractor to an asset owner. Notably, SEL has also acquired mines in Mozambique to ride the current boom in the Mining segment. However, we have currently not accorded any value to it. But, we believe that going ahead, this business will add substantial value to SEL. We have valued SEL’s core Construction business at 10x FY2010E EPS of Rs71.6. As per our DCF methodology, we have valued SEL’s BOT business at Rs320 per share. We Intiate Coverage on the stock, with a buy recommendation and SOTP Target Price of Rs1,036.” says Angel Broking research report.

पेपर उद्योग से जुड़ी कंपनी श्रीशक्ति पेपर मिल्स (SREE SAKTHI Paper, Bse code-532701 ) की खरीदारी 17.50 रुपए के आस-पास करें। बाजार में जब जबरदस्त गिरावट का दौर चल रहा था, उस दौरान भी इस स्‍टॉक में मजबूती बनी रही । कुछ दिनों से इसका भाव 17.50 रुपए के आस-पास चल रहा है। 15 दिनों में क्राफ्ट पेपर बनानेवाली श्रीशक्ति पेपर मिल्स (Sree Sakthi Paper Mills ltd ) के शेयर के भाव में 30 फीसदी तक की बढ़ोतरी हो सकती है। तमाम बड़ी कंपनियों के लिए पैकेजिंग सामाग्री बनाने वाली केरल की यह कंपनी डिविडेंड देने के मामले में काफी उदार रही है।

IIFL has recommended a buy rating on Axis Bank with a 12-month target price of Rs 904 in its September 4, 2008 research report. “Axis Bank has a first-class track record in managing its asset quality, as its incremental slippages for the last two years have been significantly below its peers, including HDFC Bank and ICICI Bank. Its gross NPL ratio of 1.04% is also the lowest among peers, so the 29% QoQ rise in 1QFY09 NPLs came from a low base. Although we expect NPLs to peak in the next 1-2 quarters, this should not detract from the still-positive story of a bank that we believe is set for a strong 33% CAGR in earnings over FY08-10ii and rising ROE. The stock has underperformed its peers in the last six months and is currently trades at 2.7x FY09ii PB, a significant discount to HDFC Bank (3.9x FY09ii PB). Buy 12-month target price of Rs 904,” says IIFL’s research report.

Austral Coke and Projects is mainly engaged in manufacture of low ash metallurgical coke (LAM Coke). It is also in the business of equipment rental, refractory and textile trading. The scrip of the company listed at Rs 201.40 on the NSE against the issue price of Rs 196 at a premium of 2.76%.

Sajiv Dhawan of JV Capital Services is of the view that banking space has become a good sector for the momentum traders and the short-term traders.

IIFL has recommended a buy rating on Bharat Heavy Electricals (BHEL) with a 12-month target price of Rs 2037 in its September 4, 2008 research report. “Ongoing capacity expansion and introduction of new products in its various businesses makes BHEL confident of achieving revenue of Rs 450 billion by FY12 (20% CAGR over FY09-12). Current order coverage ratio of 4.2x provides robust growth visibility till FY11. The balance sheet provides strength to undertake capacity expansion in current businesses and to enter new ones despite likely deterioration in operating cycle going forward. Buy 12-month target price of Rs 2037,” says IIFL’s research report.

Motilal Oswal has maintained its buy rating on Piramal Healthcare in its August 25, 2008 research report. “The macro environment for CRAMS business remains very favourable given India’s inherent cost advantages and chemistry skills. We believe that PHL will be a key beneficiary of the increased outsourcing from India, given the strong MNC relations which the company enjoys. We believe that PHL’s CRAMS business is gaining increased traction with more products being added to its CRAMS portfolio. Based our revised estimates, PHL is currently valued at 16.2x FY09E and 13.2x FY10E earnings. We believe that valuations do not fully reflect the scaling up of the CRAMS business and the expected benefits from acquired companies. Maintain Buy,” says Motilal Oswal’s research report.