Technical Analysis: SBI

This stock refused to buckle under pressure and managed to hold above the key support at Rs 1,600 last week.

The near-term outlook for SBI has been revised to neutral.

The stock is expected to fluctuate in the band between Rs 1,600 and Rs 1,800 next week. Fresh longs are recommended only if the stock moves Rs 1,800.

The medium-term view for SBI stays negative. Move between Rs 1,600 and Rs 1,800 will be construed a pause before the resumption of the downtrend from the January peak.

Investors should wait for a close beyond Rs 1,950 before buying the stock. The stock could move towards Rs 1,400 over the medium-term.

Infosys seen reporting good Q4 results

IT bellwether Infosys seen reporting good Q4 March 2008 results. The company unveils results on Tuesday, 15 April 2008. A total of five prominent brokerages expect a between 3.56% to 6.2% growth in Infosys’ adjusted consolidated net profit at between Rs 1223.10 crore to Rs 1254.40 crore in Q4 March 2008 over Q3 December 2007. Operating profit margin is seen remain more or less steady compared to 32.6% in Q3 December 2007.

These five brokerages expect a between a 5.5% to 6.5% growth in revenue at between Rs 4504.50 crore to Rs 4546.90 crore.

Market men will focus on the company’s guidance for the current year. Infosys guidance will give investors a sense of the effect of the weakening US economy on technology spending by companies there.

Opto Circuits completes acquisition of Criticare Systems

Medical diagnostics manufacturer, Opto Circuits (India), on Friday said that it has successfully completed the acquisition of US-based healthcare company, Criticare Systems, Inc.

With effect from April 10 Criticare Systems is a wholly-owned subsidiary of Opto Circuits, a press release issued stated.

Commenting on the deal, Opto Circuits' Chairman and Managing Director, Vinod Ramnani, said that "we are pleased to complete the acquisition of Criticare."

The transaction would also open many new markets for Criticare's products, he added.

Criticare Systems designs, manufactures and markets cost-effective patient monitoring systems and non-invasive sensors for a wide range of hospitals and alternate health-care environments globally.

"We are confident that our global infrastructure and marketing presence will enhance Criticare's position as an innovator and supplier of world-class healthcare solutions," Ramnani said.

HOT STOCKS FOR 11 - 04 - 08

STATISTICS :

Markets today will open with a positive movement of 30+ points in Nifty and will trade volatile, Todays news to watch out is inflation so Markets will rebound once inflation comes below 7%, analysts expect to be @ 6.92% so could be positive with volatile session, Nifty has some support @ 4700 and resistance @ 4810 levels. Sensex has some support @ 15558, and resistance @ 15981 level. steel is a sector to watch out for todays session.

INTRADAY :

SAIL : buy for a tgt of 165+, sl @ 157.55

ADLABS : buy for a tgt of 640+, sl @ 617

DELIVERY :

RAJESH EXPORTS : buy for a tgt of 125+ for 2- 3 months : 240 + for 1 year

SAIL : buy for a tgt of 240+ in 2 - 3 months

MTNL : buy for a tgt of 130+ :: 3 months tgt

FUTURES :

SAIL : buy for a tgt of 180+, sl@ 153.2 :: delivery 5- 8 trading sessions

SATYAM : buy for a tgt of 432+, sl @ 419 :: intraday

ZEELTD : buy for a tgt of 247+, sl @ 236 :: intraday

RPL : buy for a tgt of 180+, sl @ 173 :: intraday

RCOM : buy for a tgt of 494+, sl @ 479 :: intraday

Nifty : buy for a tgt of 4910+, sl @ 4672 :: delivery

OPTIONS :

Nifty : buy 4900 call for a tgt of 120+ :: delivery

RCOM : buy call 500 for a tgt of 30+, sl @ 8

SAIL : buy call 170 for a tgt of 15+, sl @ 3

Brokerages' Q4 core incomes to see sharp drop

Indian brokerages are likely see their Jan-March earnings nearly halved from the previous quarter, mirroring the sharp fall in trading volumes in the equity market, officials said.

The average daily derivatives turnover on National Stock Exchange (NSE) dipped to Rs 45600 crore in March from Rs 67000 crore in December, according to the NSE website.

The average turnover in the cash segment of NSE fell to Rs 14000 crore at the end of March from Rs 19300 crore.

"It (the impact) would be in line with the market volume, so the market volume has come down by 50 percent, the broking volume will come down by 50 percent," said Rashesh Shah, chairman of Edelweiss Capital.

There will be decline in the earnings on a quarter-on-quarter basis, but on a year-on-year basis the earnings will be very high and could be five times higher than last year, said Motilal Oswal, chairman of Motilal Oswal Financial Services.

The benchmark 30-share BSE index has shed more than 22 percent during the first three months of 2008.

Spreading to contain

"We don’t use these huge rises in the market as the basis for making a future projection," Amit Majumdar, executive director, Angel Broking, said when asked about his expansion plans.

Angel Broking's average daily trading volume has come down to about Rs 2000 crore against Rs 3500-4000 crore earlier, he said.

However, the revenue impact would not be so high as many clients have switched to delivery-based trading, he added.

"The market has moved from unsafe hands to safer hands, which means it has moved from F&O (futures & options) based business to delivery based business."

"So, though its a Rs 2000 crore business, the brokerage rate is higher as delivery charges are higher, so you tend to break even," Majumdar said.

Indian brokerages have been rapidly expanding their services and reach to tap the huge potential in smaller towns and cities.

India has 193 broking firms with terminals in more than 100 cities and 25 of them have more than 1,000 terminals each, advisory firm Dun & Bradstreet said in a report.

They are also diversifying their income stream by distributing third-party financial products like mutual funds, insurance products and earnings fees from them.