Bucking the Trend

I was watching the sensex movement and some of the scrip who were performing against the sensex moods. The follwoing three scrips caught my attention. So just thought of sharing with all of you.

Scrip 1
Skumars Nationwide
Photobucket - Video and Image Hosting
The stock cut acrossed the nifty index pattern and rose over 10% to end at Rs. 50. The scrip witnessed a huge jump in volumes with over 27 lac shares traded. The company's AGM is scheduled for 14th July. Leading Investment Company Goldman Scahs has bought 1 Lac shares of the company on 7th July,2006. Goldman Scahs now hold 77.38 lac shares of the company which is about 5% of Skumar's capital. Another Investment company Bear Stearns & Co. had acquired 4 Lacs shares in April,2006 and in total holds 81 Lac shares of the company. The stock is poised for good retruns over medium term. For those who are new to the blog, this stock was recommended on this blog as a turnaround story at a price of Rs.24 !! and reached a high of Rs. 72 before crashing back to mid 40's range during the recent crash.

Scrip 2
D-Link India
Photobucket - Video and Image Hosting
The stock witnessed huge jump in volumes. 8 Lac shares were traded today against 3 months average volume of 33,000 shares. The stock was locked at upper circuit of 20%. Current market price : Rs. 83 with 52 Week high of Rs.184 and a low of Rs. 62.

Scrip 3
Polaris Software
Photobucket - Video and Image Hosting
Another case of extraordinary volumes on the counter. The stock saw trading of over 47 lac shares against 3 months average volume of 6 lac. The stock was up 10% and closed at Rs. 83. Read More!

Infosys steals the show

Posts 50% rise in profits, Ups FY07 growth at 40%

It was another blast at Mumbai, this time at the Dalal Street where Infosys Technologies rocked the bourses with its scintillating first quarter results. The blast was so powerful that it affected other tech stocks too and send them soaring in anticipation of a general uptrend in the technology sector. Infosys, the technology bellweather, today beated the market expectation by announcing 50% rise in net profit accompanied by a 45% rise in Revenue.

One of the surprise of today's announcement was a upward revision in the FY07 guidance by the company. Infosys is considered to be conservative in giving the guidance and hence a sharp increase from the guidance given at the year end in March has taken everybody by surprise.
The strong results were backed by improved business as well as depreciating rupee.

Highlights of Infosys Q1 Results
Net Income at Rs.3015 Crore for Q1
Net Profit at Rs. 794 Crore
Q1 EPS at Rs.28.71
38 New clients were added during the quarter
8000 New employess during the quarter.

Business outlook for FY07 :
Income for Fy07 expected at Rs.13350 crore , YOY growth of 40%
EPS expected to be in range of Rs. 124.51 -125.74.

The stock was up 8% from its yesterday's claose at the time of writing this post.
Investors should note that the stock is going to be ex-bonus from 14th July,2006. The company had earlier annouced a bonus of 1:1.

Given the excellent set of results and robust guidance, the stock price is expected to move up in tandem. Investment Guru is of the view that investors should have this stock in their portfolio with a long term perspective in order to generate an equally excellent return.

Happy Investing !
Read More!

Markets shakes at higher levels, still in caution Zone

Q1 Results on watch-list, Monsoon disappoints, UPA allies play spoilsport
The sensex closed at 10510 down 99 points over previous week. And this has a message for Investors. Markets are yet not confident enough to take this rally forward and every rise in sensex is followed by bouts of profit booking activity.

Let’s look at some facts which would help us indicate the future corse of action :
FII’s & MF’s were net buyers !
Over the last week FII’s were net buyers to the tune of Rs. 8.5 Billion while the Mutual funds bought about Rs. 3 Billion.

Photobucket - Video and Image Hosting
Monsoon disappoints !

Markets had built hopes of timely arrival of monsoon. However, the rain gods have shown delay and this had disappointed the markets. The IMD ( India Meteorological Department) lowered its forecast of the southwest monsoon to 92 percent of long period average (LPA) from the earlier expectation of 93 percent. It however expressed bountiful rainfall in the month of July. The IMD annually gives two projections - an advanced forecast in April followed by another in the first week of July. The projections are important as July is a crucial month for agriculture sowing, particularly for crops like rice with two-thirds of the farm land dependent on rainfed irrigation.

UPA allies play spoilsport
Manmohan singh's government is coming under continous presuure from its allies specially over the disinvestment issues. The government has recently planned to put the divestment plans into cold storage, thanks to the rising clout of leaders like karunanidhi. The Neyveli Lignite drama was an example to this. There are rumors going around suggesting threats to stability of the UPA government. However, this seems unlikley.

Q1 Results to unfold
With companies lined to announce their quarterly results, the stock specific action is expected in thier counters. However, results of companies like infosys would act as a short term trigger for technology pack as a whole.

Going technical
I was just having a look at the technical chart of the sensex for the 6 month period and the results were sending a caution signal.
Photobucket - Video and Image Hosting
The Senxes is trading below the 200 as well as 100 day moving average which is not a good sign for the markets. This suggests that the pattern is still bearish at the macro level.

To summarise the above discussion, the markets are expected to be volatile in coming week with stock specific action. The broad indicators are showing downwards trend which means that every rise would result in profit taking and would stop indices from marching ahead. Large caps will continue to outperform their midcap counterparts for some more time. Hence Invetsors are advised to stick to fundamentally strong stocks.

In coming posts , I would talk about some mid cap stocks which look good investment opportunity with long term perspective.

Happy Investing!! Read More!