Excerpts from the morning mail that we sent to our paid clients.

Excerpts from the morning mail that we sent to our paid clients.

Hi All,

2011 to start on a bullish note, This week the Sensex may face resistance around 20,725-20,860 and seek support around 20,300-20,155. The last year peaks at 6338 and all time high of 6357 will be the major obstacle to be overcome. Traders can buy on declines as long as Nifty remain above 6090.

The American economy which has passed over two years of distress is now gradually improving. Many European nations that have been reported to have fallen financially and economically sick, are finding treatment in the nature of financial aids and reliefs packages. Thus the news-flow from foreign economies and markets will gradually turn positive. The FIIs which have set a record of pumping in the most funds in any single year during the year 2010, are expected to pour in more funds in the Indian stock markets in 2011. The domestic institutional investors are also getting more and more funds to be invested in the stock markets.

Good corporate Q3 results in January may prove trigger for bulls, Going by the Q3 advance tax payments and the growth indices, the results are likely to be encouraging, which in turn will propel the Sensex to hit an all time high by mid-February 2011.

There is nothing significant to get bearish at this stage except galloping inflation which may trigger strong reaction from RBI leading to tight money supply.

Metal stocks such as Hindalco, Hindutan Zinc, SterliteIndustries, Tata Steel, JSW Steel continued to march ahead as the prices of zinc, copper and aluminiumwere soaring at an all time high. However, a few stocks like Century Textiles, GE Shipping, JaiprakashAssociates, SAIL, etc. reacted and provide good opportunity for value buying.

PICK Of the Week: Tinplate Company of India Ltd(Bse Code: 504966) and the research report is only for paid clients later it will be disclosed on the blog.

Accmulate KESAR TERMINALS & INFRASTRUCTURE LTD(Bse Code: 533289)

Kesar Terminal & Infrastructure Ltd (KTIL) which is into Logistics infrastructure is a deerged entity of Kesar Enterprises, also Kesar Enterprises transferred liquid storage businessto KTIL.

Demerger Details ;

-Demerger ratio is 7 shares of KTIL on every 10 shares held in Kesar Enterprises

 Kesar Terminals and Infrastructure  has two bulk Liquid Chemical Terminals with a combined capacity  of 127,000 Kilo Litres (KL) in 64 tanks at Kandla, Gujarat, which include specialised tanks of stainless equipped with and

heating and insulation facilities and coated tanks. The company has plans to add capacities of about 7000 KL at its  Terminal No. 1 in Kandla and has approached the concerned authorities for permission.  The Storage Terminals at Kandla have done well during  the year and the revenue generated was much higher at  Rs.1,832.31 lakh compared to the previous year on completion of the expansion and commissioning of additional storage  capacity. The expansion was completed in March 2009 on commissioning of 8 additional tanks leading to higher revenue  earnings.

For H1FY11, the company has done well reporting a net profit of Rs.2.59 crore on sales of Rs.10.07 crore. The present capital of the company is Rs.5.25 croreYear 2010-11: With the upturn in economic activities, the tank capacity utilization is on the rise and the revenue of the Storage Terminals will go up further in the current financial year 2010-11. The Company also has plans for putting up

additional tanks in Terminal No. 1 subject to receipt of statutory clearances for which applications have already been submitted to the concerned authorities. While the demand for storage tanks is on the rise, the biggest impediment in creating new tankage is restricted availability of land at port locations. All the ports are going for SEZ complexes, which need large tracts of land and infrastructural facilities in terms of rail and road connectivity, warehouses for dry cargo and container terminals.

However, the company has been able to overcome this problem by getting an allotment of about 10 acres of land at  Kakinada in Andhra Pradesh and by purchasing about 16 acres of land in Pipavav Port in Gujarat and is thus free to expand bulk liquid storage capacities to tap the growing demand. The company plans to develop both dry and liquid cargo storage at these locations.

The promoter holding is around 59.28% while  insurance companies hold around 13.16%. 20% of the total shares are locked in , leaving a total of  20.72% for public.

 Thus the floating stock is low.

Scrip Code :  533289		Quarter ending :
Shareholding belonging to the category "Public" and holding more than 1% of the Total No.of Shares
Sl. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	National Insurance Company Ltd	286,090	5.45
2	Pacific Corporate Services Ltd	157,795	3.00
3	Oriental Insurance Company Ltd	247,220	4.71
	Total	691,105	13.16

Investors can keep a watch to accumulate this stock on dips in their core portfolio for good long-term growth.

Before Railway Budget keep eye on good counters related to  Railway projects like Zicom Electronics Ltd, Kernex Micro, Stone India, Titagarh Wagons, Texmaco,.

Buy Tata Steel in F & O segement for a target of Rs. 720.

xxxxxx xxxxxxx  Price has beaten badly from a high of Rs. 268 in April,  and it seems the stock will again cross Rs.200 in short term. This scrip is only for paid clients.

Corporate Developments:

JSW Energy has started commercial operations of second 300 MW unit at Ratnagiri.

JaiPrakash Associates Plans to set up a cement grinding unit in Sagar District of Madhya Pradesh. 

Jaiprakash Associates is setting up a cement unit with a capacity of 2.54 million tpa at Baga in Solan district of Himachal Pradesh.

To Cater UAE Market, Ashok Leyland has opened its new manufacturing unit in UAE.

Regards
VenkiStockCalls.

disclaimer:
Please buy stocks in small quantities always keep cash in hand to buy good scrips at decent levels.
The above recommendations are our own decisions and requested to take your own decision over buying/selling.  Please don't share the above information with friends/collegues as we are doing at most research and spending our valuable time to provide fundamentally sound stocks to you. If found to be forwarding or sharing we will discontinue our services to you and legal action will be taken against those persons. Investing in stocks is always carry risk.