Buy : Fedders Lloyd Corp

Investors with a short-term trading perspective can buy Fedders Lloyd Corporation at current level. Short-term trend in the stock is bullish. It has been moving up vertically without any correction since October 6. Momentum indicators in the daily chart have moved in to the overbought region but there is no sign of weakness yet. The stock closed above the immediate resistance at Rs 69 on Monday implying that the vertical climb can extend. Investors can buy the stock with a stop at Rs 68. The uptrend is expected to take the stock to the target of Rs 82 in the short-term.

Experts pick stocks/sectors to buy ahead

After a bout of correction, Indian equity markets seem to have changed track again, upwards. The National Stock Exchange’s Nifty 50 closed Monday at 4,898 bouncing back after a brief but strong correction to about 4,600 levels.

The road ahead

The Indian market has been rising on the back of the weakening dollar, feels Jitendra Sriram, VP & Fund Manager – Equities at HSBC. “The markets will remain volatile ahead because the amount of cues that’s are coming in from global sources whether be the euro zone or US remains mixed,” he said.

The market looked a little expensive at Nifty 5,000 levels, Sriram said. “To our mind, either there is a time value where corporate earnings catch up or there is a pullback in the index, which will tempt investors to come back and buy into the market.”

“A lot of people are still convinced that market is just not yet a buy on rallies or aggressively buy on dips,” said Sajiv Dhawan of JV Capital Services. “There are a lot of people looking to short and they are expecting the markets to fall further in month of November-December.”

“Personally speaking we are on the long side as we do follow strict levels, there is no reason as of now to short, I think that time is obviously gone but sentiment remains skittish,” he added.

Dhawan’s advice is to keep buying but with strict stop-losses.

View on stocks/sectors

Banks: “It’s an investment call; you buy the dips,” Dhawan said. “The stocks corrected maybe 10-15% plus from their highs. The negative news in the form of higher interest rates ahead if factored in into the prices to an extent. It’s still full of potential of mergers and acquisitions, you have seen ministers discuss their state banks saying they would like bring their down holding into that stock. You have seen private sector banks like ICICI Bank, HDFC Bank having several ‘buy’ recommendations,” he added. “Across the board whether it’s a PSU, private banks for us it’s an investment call and you buy on any sharp decline.”

Aviation: “From a near-term perspective there are various triggers,” said Sriram. “One is you are entering the busy season in terms of tourist arrivals, generally the monsoon quarter tends to be little weak and you are entering a phase where load factors will go up,” he said, adding that air tariffs were also showing some kind of strength. “These are the two factors, which are driving up space.”

Sugar: Sriram said he was positive on the sector, adding that the fair and remunerative price (FRP) the nation introduced recently was a plus for the long term. “It brings down the impact of the vagaries of local state level regulations on the space.”

Upto exchanges to extend trading hours: SEBI

In the wake of brokers raising objections to the extension of trading hours, market regulator Sebi today said it is entirely upto the exchanges to increase the market timings.

"There is perhaps a misconception in the market that we extended the market hours, we have told the exchanges that they can choose any hours between nine am to five pm for trading. Now the exchanges have to decide what is practical for them. We don't have any regulatory concerns," Sebi Chairman C B Bhave told reporters here.

Bhave was replying to a query about some brokers raising objection against the extension of trading hours.

Asked whether Securities and Exchange Board of India (Sebi) was in talks with RBI for extending banking
hours to align with extended trading session, Bhave said, "If the exchanges ask us for help to approach any institution, we will help them."

Country's two prime bourses, the National Stock Exchange and the Bombay Stock Exchange, are likely to extend trading time by two and half hours from next month and a formal notification to this effect is expected shortly.

"Both the exchanges (BSE and NSE) have discussed the issue (extension of trade timings) and a formal notification is expected shortly," a senior exchange official has said.

Last month, Sebi approved extension of trade timings by up to two-and-a-half hours from 9 am to 5 pm. The current market hours stand from 9.55 am to 3.30 pm.

RIL investors get richer by Rs 11,000 cr

MUMBAI: Investors of Reliance Industries on Monday got richer by more than Rs 11,000 crore as the country's largest private sector company closed with a gain of over 3 per cent on the bourses.

Shares of the company continued their northward journey for the fourth consecutive day, settling at Rs 2,024.55 on the Bombay Stock Exchange, up 3.46 per cent over the previous close.

On the National Stock Exchange, RIL closed higher by 3.45 per cent at Rs 2,025.05.

At close, RIL added Rs 11,140.37 crore in market cap in a single day. The valuation of the company stood at Rs 3.32 lakh crore, up from Rs 3.21 lakh crore on Friday last week.

The surge came amid reports that RIL is likely to acquire a part of the assets of troubled LyondellBasell. Reliance Industries today said that "RIL is reviewing a number of global opportunities for growth in its core business."

Equities Head of brokerage firm
SMC Capital, J Thunuguntla, said, "Positive sentiments helped in boosting the trading activity in RIL. Besides, the news about foreign acquisition would start showing some impact on the stock when the details of the transactions would be disclosed."

On the volume front, over 32.78 lakh shares exchanged hands on NSE and over 7.65 lakh shares got traded on BSE.

The Sensex closed at 16,498.72 points, a gain of 340.44 points or 2.11 per cent.

Mahindra Satyam restarts hirings, recalls bench

Mahindra Satyam is back to hiring once again. It is set to hire 120 employees and recall its employees who were on the bench, reports CNBC-TV18’s Kritika Saxena.

Mahindra Satyam has lifted its hiring freeze and is set to hire 120 employees in the next one month. And that's not all. It has also called back 1,400 of its 6,000 employees who are on the bench. CNBC-TV18 learns that this hiring comes after new deals being signed this quarter especially in the emerging markets.

Says CP Gurnani, CEO, Mahindra Satyam, “For our business strategy and growth, we started working with Bain & Company, a high-end consulting. With them, we have come out with a new value proposition for our clients. We are definitely engaging and trying to get some additional leverages from opening new markets like defence and providing new service offerings like ICT.”

Gurnani believes that this quarter has been better than expected and is confident that Mahindra Satyam will meet the deadline of June 2010 to submit its re-stated accounts.

“As of date, KPMG is confident that they will be able to declare the accounts and give it within the stipulated period. It’s not about one day. It is going to take one step at a time. If one step I take everyday like this, I will be in good shape,” Gurnani adds.

Clearly Mahindra Satyam has fast-tracked its plans to acquire customers. This move also comes after some clients have increased their IT spends. Going forward, Mahindra Satyam expects to hire a larger number of employees and call back more from the bench.

Sell : Tata Power Company

We recommend a sell in the stock of Tata Power Company from a short-term perspective. It is evident from the charts of the stock that its intermediate-term uptrend that commenced in March low of Rs 602 was arrested at Rs 1,487 in late October. The stock has a significant long-term resistance in the band between Rs 1,450 and Rs 1,500 level. Triggered by the negative divergence in the weekly relative strength index and moving average convergence and divergence indicator the stock reversed its direction. Since late October, it has been on a short-term downtrend. On October 30, the counter tumbled 4 per cent penetrating its intermediate-term up trendline. Moreover, it declined 4 per cent with good volume on November 6, reinforcing the downtrend. The stock is trading well below its 21- and 50-day moving averages. The daily momentum indicator has entered the bearish zone. Our short-term outlook on the stock is bearish. We anticipate its decline to continue until it hits our price target of Rs 1,145. Traders with a short-term perception can sell the stock while maintaining stop-loss at Rs 1335.