I can help you with fundamental/financial/technical analysis of your stock

[mohanlate]

Hi Mohan

Can you pls give you opinion on IFCI & Suzlon Energy. Is this the right time to enter.

Thanks in advance for all your help

Cheers
rsk

IFCI is overvalued. All the factors are discounted in the current share price. The intrinsic value comes to around Rs. 80. So its a SELL based on fundamentals.

The daily charts show upmove from72. Earlier resistance of 88 is taken out and there was a gap up today. It looks more like a HOLD at these levels. But the stock is not weak at these level. You may consider a buy on dip which may test the support of 88 again for the next target of 100.


Things are looking bright for Suzlon. Has an order book position of Rs 16,328.04 crore comprising of Rs 1988.88 crore of domestic orders and Rs 14,339.16 crore of export orders. The board of Suzlon Energy approved for the stock split of 5-for-1.

Suzlon Wind Energy Corporation, the US based step down wholly owned subsidiary of the company signed a contract for a 400 mega watt (MW) of wind turbine capacity with Horizon Wind of Houston, Texas, one of the largest wind power developers in the United States.

On 3 October 2007, the company secured a major order from DLF for setting up of a wind farm of 150 MW wind turbine capacity in the State of Gujarat.

Suzlon Energys net profit rose 40.27% to Rs 355.58 crore on 31.27% growth in sales to Rs 1687.46 crore in Q2 September 2007 over Q2 September 2006. The result was announced during the trading hours today, 23 October 2007.

The stock corrected from 1800 levels to 1500-1518 levels. It bounced with a gap up and many missed the chance of re-entering this stock. At current levels it looks overbought. Buy with a stoploss of 1800 or on dips with a much lower stoploss of 1560.

Hope it helps,

Mohan
http://investmentideas4india.blogspot.com

 

[mohanlate]

Dear Mohan,

I'm hoding 1000 shares of RPL brought @ various levels. As it broke out today, can I add more or to go for some other ones.

Awaiting your response

Regards

Reji

Since you already have 1000 shares you may consider other stock. RPL is overbought and the trend is showing some weakness-maybe awaiting a correction. If you still want to ride the momentum you may buy some with STRICT stoploss of 185. Which may get triggered on an intra day also. In that case wait for a deeper correction.

Hope that helps

Mohan
http://investmentideas4india.blogspot.com

 

[vishnuindian]

Hi,

In a bull market, as new levels are touched each day, it is becoming increasingly difficult in finding good scrips to buy. We need to be very cautious at these levels.

Let me know if you have any queries regarding any stock or want any fundamental/financial/technical analysis on your stock. Or have any query on valuations etc.

Thanks,
Mohan

Dear friend...

First of all a hearty thanks ...

Its really a great thing , to come forward to help others... its really Awesome friend...

Hats off to u...

the art of helping others is more than a social service... you are doing a great job... only some special ppl will have tendency to help... u r really a spl one...


dont think am simply saying all this.. these are true, in a world where ppl ask money for even a stock suggestion.. u r doing a great thing...

Carry on your service...

May u book huge profits... always...

 

[mohanlate]

DEAR MOHAN ,..

Welcome home. Keep on posting for technical calls along with Few of the fundamental calls.

One querry, i want to know if is there any good stocks being quoted around the PE of 7-10. IF ur scanner suggest any, then please do post them.

Regards,.. and best luck...
Darsh

Thanks Darsh,

I have put together a list of stocks with PE in the range of 7 and 15. Next I am going to take a close look at them and come out with the shortlist based on good technicals and/or fundamentals.

 

[mohanlate]

Dear friend...

First of all a hearty thanks ...

Its really a great thing , to come forward to help others... its really Awesome friend...

Hats off to u...

the art of helping others is more than a social service... you are doing a great job... only some special ppl will have tendency to help... u r really a spl one...


dont think am simply saying all this.. these are true, in a world where ppl ask money for even a stock suggestion.. u r doing a great thing...

Carry on your service...

May u book huge profits... always...

Thanks for the kind words.

 

[mohanlate]

DEAR MOHAN JI,

Let me introduce my self...
am vishnu... I entered this share mrkt to raise money for a noble cause
but i faces only losses....
( i don't know even almighty is not supporting me)
...
I am very new to this stock market... just 2 months....

to be honest, i lost around 15000 rupees in this 2 months...
.. i lost all in intraday trading... icici's margin plus is really a danger one..
i don't know intraday is risky...

I don'nt what to do now...

Kindly suggest me..

After a huge loss.. that too while in the begining itself.. i invested the remaining amnt in
KOUTON RETAIL - bought at 775
TELEDATA bought at 76
JAI CORP bought at 1300

Even this also loss now...
i dont know wheather my time is bad.. or .. !!!

If you don't mind kindly help me ji...
assist me please
sorry for the disturbance,,,

awaiting for your reply mohan Ji

Dear Vishnuji,

Raising money for a noble cause by trading intraday may not be a good idea. I have a couple of things to suggest -

1. If you really want to assure good returns, go long term and buy blue chips with an investment horizon of 2-3 years. The dividents from good divident paying stocks is a noble way to keep the money coming in at regular intervals.

Dont do intraday. Believe me it is certainly not a voble way of making money. Too early for someone with 2 months of exposure to stock market.

2. If you really want to make money here, I suggest you educate yourself to take investment decisions and not rely solely on tips and recommendstions. One should atleast know how to interpret the analysis given by analysts.

I suggest you book part or all losses at these levels OR take a long term view and stay invested since these are fundamentally good stocks.

Hope it helps !

 

[vishnuindian]

thanks for the reply ...
i ll do the same...


And the stocks which am holding now...
can i wait ... for a while..

what u think about jai corp..,,

and if u don't mind... do u have any ideas of buying stocks.. if so can u please say what are the stocks,,,,

Thanks a lot ji

 

[prafull]

how is Span Margin & Other margins calculated on sale of100 nifty option ce 5700 At rs.300/-. & how day to day margins will be required.

 

[mohanlate]

thanks for the reply ...
i ll do the same...


And the stocks which am holding now...
can i wait ... for a while..

what u think about jai corp..,,

and if u don't mind... do u have any ideas of buying stocks.. if so can u please say what are the stocks,,,,

Thanks a lot ji

Jai Corp is only 5-6% away from its top. So you cannot be more than 5-6% in loss. The stock is very popular and making some news lately. You should be able to get out of it one of these days. If you have a large position then you may want to book partial loss, because once this one starts correcting it has a long way down to go and you may get stuck and forced to take a long term view on it. People have accumulated this stock from levels as low as 100-150, 4 months ago.

Hope it works

 

[mohanlate]

how is Span Margin & Other margins calculated on sale of100 nifty option ce 5700 At rs.300/-. & how day to day margins will be required.

THE objective of SPAN is to identify overall risk in a portfolio of futures and options contracts for each member.

The system treats futures and options contracts uniformly, while at the same time recognising the unique exposures associated with options portfolios such as extremely deep out-of-the-money short positions, inter-month risk and inter-commodity risk.

In standard pricing models, three factors most directly affect the value of an option at a given point in time: * Underlying market price * Volatility (variability) of underlying instrument * Time to expiration

As these factors change, so too will the value of futures and options maintained within a portfolio. SPAN constructs scenarios of probable changes in underlying prices and volatilities in order to identify the largest loss a portfolio might suffer from one day to the next. It then sets the margin requirement at a level sufficient to cover this one-day loss.

Calendar Spread: As SPAN scans futures prices within a single underlying instrument, it assumes that price moves correlate perfectly across contract months. Since price moves across contract months do not generally exhibit perfect correlation, SPAN adds a Calendar Spread Charge (also called the Inter-month Spread Charge) to the Scanning Risk Charge associated with each futures and options contract.

To put it in a different way, the Calendar Spread Charge covers the calendar (inter-month etc.) basis risk that may exist for portfolios containing futures and options with different expirations. For each futures and options contract, SPAN identifies the delta associated each futures and option position, for a contract month. It then forms spreads using these deltas across contract months. For each spread formed, SPAN assesses a specific charge per spread which constitutes the Calendar Spread Charge.

The margin for calendar spread shall be calculated on the basis of delta of the portfolio in each month. Thus a portfolio consisting of a near-month option with a delta of 100 and a far-month option with a delta of - 100 would bear a spread charge equivalent to the calendar spread charge for a portfolio which is long 100 near-month futures contract and short 100 far-month futures contract. A calendar spread would be treated as a naked position in the far-month contract three trading days before the near-month contract expires.

Short Option Minimum Charge: Short options positions in extremely deep-out-of-the-money strikes may appear to have little or no risk across the entire scanning range. However, in the event that underlying market conditions change sufficiently, these options may move into-the-money, thereby generating large losses for the short positions in these options. To cover the risks associated with deep-out-of-the-money short options positions, SPAN assesses a minimum margin for each short option position in the portfolio called the Short Option Minimum charge, which is set by the NSCCL. The Short Option Minimum charge serves as a minimum charge towards margin requirements for each short position in an option contract.

For example, suppose that the Short Option Minimum charge is Rs 50 per short position. A portfolio containing 20 short options will have a margin requirement of at least Rs 1,000, even if the scanning risk charge plus the inter-month spread charge on the position is only Rs 500.

Net Buy Premium: In the above scenario only sell positions are margined and offsetting benefits for buy positions are given to the extent of long positions in the portfolio by computing the net option value. To cover the one-day risk on long option positions (for which premium shall be payable on T+1 day), net buy premium to the extent of the net long options position value is deducted from the Liquid Networth of the member on a real time basis.

This would be applicable only for trades done on a given day. The Net Buy Premium margin shall be released towards the Liquid Networth of the member on T+1 day after the completion of pay-in towards premium settlement. Computation of Initial Margin - Overall Portfolio Margin Requirement

The total margin requirements for a member for a portfolio of futures and options contract would be computed as follows: * SPAN will add up the Scanning Risk Charges and the Intracommodity Spread Charges. * SPAN will compares this figure to the Short Option Minimum charge* It will select the larger of the two values.

* Total SPAN Margin requirement is equal to SPAN Risk Requirement, less the `net option value', which is mark to market value of difference in long option positions and short option positions. * Initial Margin requirement = Total SPAN Margin Requirement + Net Buy PremiumRate of interest may be the relevant MIBOR rate or such other rate as may be specified.concluded