Buy Assam Company, Target 21 - Sushil Finance

Sushil Finance has recommended a buy rating on Assam Company, ACL with price target of Rs 21, in its report dated June 22, 2009.

“ACL is one of the leading producers of the most exquisite, high-quality, premium tea. The Company operates through 17 tea estates and gardens with planted area of about 8644.2 hectares on a grant area of 14663.8 hectares. The average yield per hectare stands at 1983 kgs. The Company manufactures around 17 mn kgs of tea and being a bulk manufacturer, 95% of the operations are undertaken through B2B route. The company also has invested in Austin Exploration Ltd., a company having interest in oil & gas blocks in Australia and USA. The company is expected to deliver very decent earnings growth from oil and gas segment. The stock currently trades at 11x its FY10E fully diluted equity earnings and 1.0x BV. Buy the stock with target of Rs 65,” says Sushil Finance’s report.

Buy GIPCL - Target 130 : IIFL

IIFL has maintained its buy rating on Gujarat Industries Power Co. (GIPCL), with 12-month price target of Rs 130, in its report dated June 23, 2009.

"GIPCL's proposed 250MW expansion has been delayed, and now the management expects to commission unit-1 in 3QFY10ii as against 1QFY10ii, which is reflected in our forecasts. At CMP, GIPCL is trading at 0.9x FY10ii BV and 10x FY10ii P/E. We maintain 'BUY', with 12-month price target of Rs 130," says IIFL's research report.

Nifty sheds 7.2% in four days

Indian markets extended losses on Thursday with the NSE Nifty index losing over 5% or 318 points and the BSE Sensex shedding 6.2% or 947 points in last four trading sessions.

The Sensex dropped 257 points or 1.7% to end at 14,265 after touching a high of 14,630 and a low of 14,188. The index had opened at 14,503 against the previous close of 14,523.

The NSE Nifty declined 104 points or 2% to shut shop at 4,251.

Among the BSE Sectoral indices BSE Realty index was the top loser declining 5.2%, followed by the BSE Metal index down 4.4%, BSE Power index down 3.6%, BSE Capital Goods index down 3.6% and BSE PSU index down 3.2%.

In the Sensex, the major losers were, ACC, JP Associates, Tata Steel, Grasim, NTPC, Hindalco, ONGC, Reliance Infra, L&T and BHEL. SBI, Sun Pharma, Tata Motors, Infosys, Bharti and TCS were the gainers among the 30-components of Sensex.

Outside the frontline indices, the top loser included Aban Offshore, Max India, GMDC, Moser Baer, Bhushan Steel and Ispat Industries. Among the big gainers in the broader market were Mphasis, Marico, TTML, IDBI Bank, Biocon, GVK Power, Andhra Bank and OBC.

Technical Views on CIPLA

Cipla has made a triple top between 255-260 levels. Once it manages to cross 260 one can buy it with for a target of 280.

Buy Tata Steel on dip with a SL of Rs 410: Nirmal Bang

MUMBAI: Nirmal Bang has advised traders to buy Tata Steel on dip with a stoploss of Rs 410.
“Buy Tata Steel on dips with stoploss of Rs 410. Resistance is seen at Rs 445 and if it maintains above Rs 445 then next target is Rs 470,” said the technical note.

(Source: ET)