If Bajaj Hindusthan can trade above Rs 200, then it is likely to go further up, says Vijay Bhambwani, technical analyst, on CNBC-TV18. It has a target price of Rs 280, he adds. And if Balrampur Chini can sustain above Rs 85, then it has the potential to go up to Rs 125-130, he says. Bajaj Hindusthan is at Rs 227, up 6.2% and Balrampur Chini is at Rs 94.10, up 7.1% on the BSE.

If Europe opens weak today, then short Nifty in the afternoon, suggests Deepak Mohoni, technical analyst, on CNBC-TV18. Asian markets are witnessing a bad day, with Tokyo's Nikkei hitting the lowest level in 15 months and currently down 386 points. South Korea's Kospi has fallen 67 points, while Hong Kong's benchmark index Hang Seng is down a whopping 1108 points. Taking cues from its Asian peers, the market back home is also witnessing selling pressure across the board. The Sensex is down 481 points and Nifty down 159 points from the previous close.

The markets are trading extremely weak with deep cut on the back of heavy selling witnessed across the sectors in the early trade today. This has been mainly triggered by the weak cues from the global markets as US mkts ended in red on account of credit concern leading to the decline in the Asian peers.

Market breadth has been extremely weak since opening today. On NSE around 152 stocks were on the advancing side and over 956 stocks were on the decline side. Rupee was quoting at 39.33 against a US dollar. Yen has further appreciated and was trading at 109.96 against a USD.

At 11.10 hrs IST, the Sensex is down 446.14 points or 2.36% at 18461.46, and the Nifty down 135.50 points or 2.39% at 5527.75. About 974 shares have advanced, 2011 shares declined, and 80 shares are unchanged.

Top gainers on the Sensex are ITC at Rs 172.15 up 1.92%, Satyam at Rs 432.45 up 1.29% and HUL at Rs 195 up 0.91%.

Top losers on the Sensex are Reliance Comm at Rs 674.45 down 4.95%, BHEL at Rs 2,650 down 4.49% and Hindalco at Rs 193.20 down 4.45%.

Top gainers on the Nifty are ITC at Rs 172 up 1.90%, Satyam at Rs 431.75 up 1.23% and HUL at Rs 195.05 up 0.96%.

Top losers on the Nifty are Sterlite Ind at Rs 907 down 8.24%, Hindalco at Rs 191.50 down 5.43% and Tata Power at Rs 1,152 down 5.07%.

Most active shares on NSE are Reliance at Rs 2,616 with 718,207 shares, Reliance Natural at Rs 140.15 with 12,275,766 shares and Reliance Petroleum at Rs 213.65 with 7,861,974 shares.

Mkt open with huge gap down on weak global cues

The markets opened with huge cut today in line with its global peers. Asian markets plummeted along with US markets as credit worries persist in the US economy.

At 9:56 am, Sensex was down 448 points at 18459 and Nifty was down 142 points at 5520. Major losers in the opening trade were Rel Energy, Rel Petroleum, RIL, Sterlite, SAIL, BHEL, Hindalco, ICICI Bank.

Asian markets were trading weak. Hong Kong's Hang Seng plunged 3.06% or 881.85 points at 27,901.56, Japan's Nikkei fell 2.4% or 374.64 points at 15,208.78, Taiwan's Taiwan Weighted tumbled 2.91% or 260.80 points at 8,710.12, Singapore's Straits Times declined 2.72% or 97.85 points at 3,501.82 and South Korea's Seoul Composite was down 3.04% or 60.54 points at 1,929.93.

Market cues:

* All global markets weak on US cues
* First negative closing for benchmark indices on Mahurat trading in 9 years
* NSE F&O Open Interest down by Rs 242 crore on Diwali day at Rs 92,769 crore

Asian markets are down over 3%, compared to which Indian markets do not look so bad, says Ashwani Gujral, technical analyst, on CNBC-TV18. This shows the market strength. Around 5500 looks like a levels from which the market can bounce back to go up to 5700-5750, he adds. So long positions can be opened in the morning with a stoploss of 5500, he suggests.

The US subprime problem is not over yet, says Manishi Raychaudhuri of UBS Securities, on CNBC-TV18. Last Fed minutes hinted that the recent rate cut may last for sometime, and it seems the emerging market liquidity is being hurt by the possible stalling of Fed rate cut, he explains. But the houseview is that the Fed might cut rates till mid-2008, he adds.

The market is still moving south, though at a slower pace now. The Sensex is currently trading at 18,383, down 519 points from the previous fall. Nifty is at 5494, down 108 points. Market breadth is extremely weak, with 121 advances against 870 declines on the NSE.

Buy Indraprastha Gas CMP Rs 141 Target Rs 165-180

Indraprastha Gas’ future growth prospects look bright on account of the sustained growth in CNG vehicles in the Delhi NCR driven by increased conversion of private four-wheelers and impressive growth in customers for piped natural gas (PNG). The potential for converting LCVs into using CNG is also another sweetener.

Company Background

Indraprastha Gas Ltd (IGL) is a joint venture between GAIL, BPCL and the Delhi state government. The company was incorporated to implement a compressed natural gas (CNG) expansion programme, and project for piped natural gas (PNG) for various applications in the domestic and commercial sector.

The company started operations in February 1999 by taking over the Delhi City Gas Distribution project from GAIL. The project took off with setting up of 9 CNG stations catering to approximately 1,500 cars. On the PNG front, the Delhi City Gas Distribution project provides natural gas through piped network to the national capital.

Investment Rationale

Court ruling to boost clean fuels
We believe the recent Supreme Court directive to the Haryana and Uttar Pradesh governments to speed up the setting up of CNG stations in selected cities is positive for IGL, which is on expansion mode. The company is likely to grow at over 10% per annum. It is also planning an aggressive marketing strategy for PNG by targeting LPG customers and commercial establishments.

Conversion to CNG likely in near-term
An ordinance is to be passed, subsequent to which all new light commercial vehicles (LCVs) will have to be compulsorily run on CNG. Further, existing vehicles that are over 8 years will also have to be converted to CNG. This move would boost demand for CNG significantly. Moreover, the prospects for private petrol vehicle converting to CNG are robust based on favourable economics. This argument will be further strengthened by the hardening crude prices, which is currently at over US$90 a barrel.

Business with significant entry barriers
IGL is the sole distributor of CNG and PNG in Delhi. To start a CNG and PNG business, a new entrant requires large investment in gas distribution network, several government approvals, gas allocation and land. Putting all these things at one place erects a very high entry barrier. With the entry barrier is significantly high in CNG and PNG business, IGL is likely to continue to enjoy the monopolistic status for the years to come.

Commonwealth games to boost demand
In order to prepare for the 2010 Commonwealth games, the Delhi government proposes to introduce new CNG buses in the private sector. IGL will be the major beneficiary of this move. The company is investing Rs 300 crore over FY08E-10E to expand its city gas and CNG infrastructure in Delhi. The expansion will increase the number of CNG outlets from the current 156 to 171 by FY08 end, including three new outlets in Greater Noida.

Geographic expansion
The Haryana and Uttar Pradesh governments have approved IGL’s plan to set up PNG and CNG distribution networks in 2006. However, the progress on these projects has not been fast, though it is picking up of late. The regions include Faridabad, Greater Noida and Ghaziabad in Uttar Pradesh, and Sonepat and Panipat in Haryana. Initially, the company plans to start up 3 of the 5 proposed CNG outlets by the end of 2007 at an investment of Rs 12 crore to Rs 20 crore. Based on this, and modest demand for piped gas from commercial and domestic segments, the company expects revenues from Greater Noida to start accruing from FY09.

Buy Reliance Energy CMP Rs 1838 Target Rs 1950-2000

Reliance Energy electrifies on buzz on winning bid for large power project

The BSE Sensex was up 200.23 points, or 1.05%, to 19259.16. A special one-hour trading session to mark the beginning of the New Year Samvat year 2064 is being held today on the bourses. Trading began at 18:00 IST and will end at 19:00 IST.

On BSE, 4257 shares of the scrip were traded. The stock had an average daily volume of 17.99 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 1909.90 and a low of Rs 1899.28 so far during the day. The stock had hit a 52-week high of Rs 2000 on 1 November 2007 and a 52-week low of Rs 448.20 on 5 March 2007.

The scrip had outperformed the market in the one month to 8 November 2007, adding 34.18% as against the Sensex's 8.96% gain. It had also outperformed the market in the past three months, soaring 136.36% against the Sensex's 24.50% rise.

India's second largest power utility by revenue has an equity capital of Rs 229.09 crore. Face value per share is Rs 10.

At the current price of Rs 1900, the scrip trades at a PE multiple of 43.41, based on Q2 September 2007 annualised EPS of Rs 43.76.

As per reports, Reliance Power, the subsidiary of the company, is set to bag the 4,000 mega watts (MW) Krishnapatnam ultra mega power project (UMPP) after emerging as the lowest bidder. The Anil Dhirubhai Ambani Group Company reportedly outbid Larsen & Toubro (L&T) and Sterlite Industries for the Andhra Pradesh-based Rs 16,000-crore project.

Reliance Power quoted a tariff of Rs 2.33 per unit for 25 years against L&Ts Rs 2.68 per unit bid. Sterlite quoted Rs 4.18 per unit, the report said.

The financial bids for the imported coal based project were opened by Power Finance Corporation (PFC) on Thursday, 8 November 2007. Reliance, L&T and Sterlite were the three firms in the fray.

Reliance Power has already bagged the Sasan ultra mega power plant project (UMPP) in Madhya Pradesh for a tariff of Rs 1.196 per unit. That project will also require an investment of over Rs 16,000 crore.

Reliance Energys net profit rose 34.2% to Rs 250.08 crore on 10% rise in sales to Rs 1541.73 crore in Q2 September 2007 over Q2 September 2006.

Reliance Energy is a private sector utility company. The group distributes nearly 21 billion units of power to consumers in Mumbai, Delhi, Orissa and Goa, across an area covering 1,24,300 squre kilo metres.

Buy Hindalco at Rs 190-195 Target Rs 210-215 CMP Rs 203. it will come down to Rs 190-195

Hindalco Industries gains ahead of amalgamation

The company made the announcement on Wednesday, 7 November 2007. Yesterday, 7 November 2007, the stocks ended 7.95% up at 203.65.

The BSE Sensex was down 43.90 points, or 0.23%, to 19015.03. A special one-hour trading session to mark the beginning of the New Year Samvat year 2064 is being held today on the bourses. Trading began at 18:00 IST and will end at 19:00 IST.

On BSE, 4.27 lakh shares of the scrip were traded. The stock had an average daily volume of 12.38 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 211, its 52-week high. It hit a low of Rs 203.05 so far during the day. The stock had hit a 52-week low of Rs 125.25 on 7 March 2007.

The scrip had outperformed the market in the one month to 8 November 2007, galloping 26.06% as against the Sensex's 8.96% gain. It had also outperformed the market in the past three months, adding 25.83% against the Sensex's 24.50% rise.

India's largest aluminium producer has an equity capital of Rs 122.71 crore. Face value per share is Rs 1.

At the current price of Rs 205.50, the scrip trades at a PE multiple of 8.88, based on Q2 September 2007 annualised EPS of Rs 23.14.

Hindalco Industries net profit rose 7.6% to Rs 642.80 crore on 7% rise in sales to Rs 4959.70 crore in Q2 September 2007 over Q2 September 2006.

Hindalco is India's largest aluminium producer and is engaged in producing aluminium and semi-fabricated products.