Experts from the morning mail sent to paid clients,

Hi All, 

200DMA BREACHED :- There is no place to hide as the Bears rule the market. After a long time the 200dma was decisively broken. The last time the 200dma was broken, was way back in May 2010. This has caused lot of panic especially amongst the retail participants in the market. The mid-cap and small-cap prices have been smashed beyond recognition; they are quoting at yearly lows

Foreign Institutional Investors (FIIs) turned net sellers for the first time since the Greek debt crisis in May, They sold 912 $ million(Rs. 4168) worth of equities net of purchases so far this month.

In the past four years from 2008 to 2011 FII Inflows into Indian markets are negative,below is the link for the same venkistockcalls.

U.S GDP for the fourth quarter jumped to 3.2 pct but fell short of the expected 3.5 pct. Wall Street lost its way after couple of months of gains. This might be a positive for emerging markets as the outflows might stop in the short term. Which is positive for Indian markets.

Technnically bounce back in Indian markets is awaiting, and as Pre budget rally is going to kick off, we will see a smart rally in Indian browses.

Bihar Sponge Iron:  Buy Bihar sponge as good turnaround story is associated with it. Promoted by Modi family, Bihar Sponge Iron is engaged in manufacture of sponge iron with installed capacity of 2 lac tonnes. So far, its financial performance has been bad as company has buy iron ore, coal etc from outside at higher price and due to small capacity,

has been making losses: After incurring loss of 7.75 crores in 2009-10, its loss in H1 current year have gone up sharply to 17.74 crores. As against installed capacity of 2 lac tonnes, company is able to produce and sell hardly 1.30-1.40 lac tonnes, thus operating at 70% capacity.

Bihar Sponge has been allotted IRON ORE mines spread over area of more than 400 hectares. Bihar Sponge has also been allotted Coal Mines. For production of sponge iron, iron ore and coal are main cost constituents. Both mines of Bihar Sponge are likely to become operational in 2012. Once, BSIL uses iron ore and coal from captive mines, company can report big profits.

One can Buy xxxxxx  xxxxxxxxx  xxxxxx as it is bouncing back after a favourable judgement came for its side.

xxxxxx xxxxxx xxx : Accumulate this for sure returns, one the market stablizes it will start hitting upper circuits.

Developments during Last week:

Suzlon Energy Ltd. (SEL) announced the signing of an order with Caparo Energy India Ltd. (CEIL) for 1000 MW

wind power projects to be developed in India progressively by March 2013.

The Bombay High Court postponed the hearing on Lavasa township near Pune to March 10. Lavasa had sought

six weeks’ time to submit documents sought by the Union Ministry of Environment and Forests (MoEF).

GVK Power and Infrastructure Ltd. (GVKPIL) signed two Memorandums of Understanding (MoUs) with the Government of Indonesia to develop greenfield international airports in North Bali and Yogyakarta, Java. The MoU for the Bali airport is a three-way agreement between Badan Koordinasi Penanaman Modal (BKPM – a board set up by Indonesia for investments), PT Pembangunan Bali Mandiri (a SPV for airport development) and

GVKPIL.

Cadila Healthcare: Company Investment in ZYDUSWELLNESS of Rs.51.8crs as per today

market value is Rs.1672crs higher by 32times. Management has reiterated its revenue guidance of US$1bn for FY11E.

Net profit of Garden Silk Mills rose 232.11% to Rs 25.24 crore in the quarter ended Dec.2010 as against Rs 7.60 crore during the previous

quarter ended Dec.2009. Sales rose 19.17% to Rs 791.83 crore in the quarter ended Dec.2010 as against Rs 664.48 crore during the previous

quarter ended Dec. 2009.

HDFC Bank reported a net profit of Rs 10.87 billion as against Rs 8.18 billion, a growth of 32.89% on year-on-year basis. The bank`s total income

for the quarter ended Dec. 31, 2010 was at Rs 63.58 billion as against Rs 49.34 billion for the quarter ended Dec. 31, 2009, a rise of 28.86%.

IDBI Bank reported strong PAT growth of 58% yoy to `4,540 mn well ahead of market estimates mainly on account of NII growth of 67.5% yoy and lower

employee costs. However, the deviation was moderated by the increase in provisions of 176% yoy due to higher npas (slippages of `6.9bn, gross npas

of 2.2% a 22% increase).

Sathavahana Ispat: Recently SIL has commissioned new furnace with capacity to produce 150000 tonnes of Metcoke which has increased its Metcoke capacity to 4.50 lac tonnes.  Impact of same will be felt from Q4 of current year onwards. SIL is also in process commissioning additional 10MW power plant which will enhance power generation capacity to 40MW. These 2 developments will  add siginficantly to its bottomline in FY12. Safe bet which will shoot to Rs.85 in 2 to 3 months.

Thanks & Regards

Venkistockcalls