9 APRIL 2012

MONTHLY REVIEW – APRIL 2012

INDEX

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CONTENTS PAGE NO.

INDICES IN FOCUSNIFTY OVERVIEW 3BANK NIFTY OVERVIEW 4

STOCKS IN FOCUSRAYMOND LTD 5SREI INFRASTRUCTURE FINANCE LTD 6NTPC LTD 7NEYVELI LIGNITE CORPORATION LTD 8KINGFISHER AIRLINES LTD 9GODREJ INDUSTRIES LTD 10BHUSHAN STEEL LTD 11

DISCLAIMER 12

NIFTY OVERVIEW

Technically, Nifty has formed an interesting setup. From the start of the calendar year 2012,

Nifty had a strong rally. So strong that Nifty broke a long term trendline resistance with ease.

And now it has corrected and re-tested this trendline. In the technical analysis parlance, once

a resistance is broken, it acts as a support in future.

Since last few weeks, prices are consolidating near the levels of 5300, making it difficult for

traders to indentify the trend.

In the coming days, results of the companies will determine movement of Nifty. Further the

RBI’s monetary policy will also be in focus. Any kind of monetary easing measure adopted by

RBI will be cheered by equity markets.

Technically, RSI (relative strength index) of Nifty did show some positive divergence. On the

upside, resistance lies at 5470 and downside supports lie at 5130.

Weekly Candlestick Chart of Nifty (spot)

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BANK NIFTY OVERVIEW

Bank Nifty too has a setup similar to Nifty. Since last few weeks, intra-week volatility is seen.

However, towards the end of the week, bank nifty does crawl back into the range of 10300-

10500. And the current activity would rather be termed as time correction in bank nifty. The

RBI’s monetary policy outcome would decide the course of action ahead for bank nifty.

A rise above 10600, can trigger buying action in Bank Nifty. On the upside, the near term

targets or resistance for bank nifty are 10850-11200. And supports lie at 9800

Weekly Candlestick Chart of Bank Nifty

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STOCKS IN FOCUS

RAYMOND LTD

BSE Code: 500330 NSE Symbol: RAYMOND P/E : 40.21

ISIN Demat: INE301A01014 Div & Yield %: 0.23 EPS : 10.59

Book Value: 173.6 Market Cap (Rs Cr.): 2613.86 Face Value : 10

Recommendation : BUY ABOVE 432Last Close : 426.25 Targets : 440-450-459 Stop loss: 420 (on closing basis)

Raymond is in an uptrend, making higher tops and higher bottoms. The stock is currently

trading at supports (as shown in the figure).

The volume action in the stock suggests strong buying on the rises.

The stocks uptrend is expected to resume once it crosses 432. And so it can be bought

above 432, for the targets of 440-450-459.

Once in the trade, stop loss can be placed at 420 on closing basis.

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STOCKS IN FOCUS

SREI INFRASTRUCTURE FINANCE LTD

BSE Code: 523756 NSE Symbol: SREINFRA P/E : 23.72

ISIN Demat: INE872A01014 Div & Yield %: 2.77 EPS : 1.14

Book Value: 50.75 Market Cap (Rs Cr.): 1360.85 Face Value : 10

Recommendation : SELL BELOW 26.65Last Close : 27.35 Targets : 25.50 – 24.50 – 23.50 Stop loss: 27.90 (on closing basis)

SREI Infrastructure is in a downtrend.

Further, a fall below 26.65 will result in resumption of downtrend after the recent rise from

24.50 to 27.50.

Traders can sell it below 26.65 for the targets upto 23.50.

Stop loss can be placed at 27.90 (on closing basis).

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STOCKS IN FOCUS

NTPC LTD

BSE Code: 532555 NSE Symbol: NTPC P/E : 14.70202

ISIN Demat: INE733E01010 Div & Yield %: 2.26527 EPS : 11.41

Book Value: 82.34 Market Cap (Rs Cr.): 138317.5915 Face Value : 10

Recommendation : SELL BELOW 167.80Last Close : 168.95 Targets : 162-158-154 Stop loss: 171 (on closing basis)

NTPC is seeing downward trend in past several months.

The volume action too is strong on the downsides, suggesting strength in the hands of

bears in the stock. The stock is trading below its long term moving averages of 50 and 200

days.

The stock is expected to resume its downtrend below 167.80 and can be sold below it.

Stop loss can be placed at 171 on closing basis and it can be traded for targets 162-158-

154.

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STOCKS IN FOCUS

NEYVELI LIGNITE CORPORATION LTD

BSE Code: 513683 NSE Symbol: NEYVELILIG P/E : 10.75

ISIN Demat: INE589A01014 Div & Yield %: 2.57 EPS : 8.3

Book Value: 66.61 Market Cap (Rs Cr.): 14981.95 Face Value : 10

Recommendation : BUY ABOVE 90.50Last Close : 89.60 Targets : 93-96-98.50 Stop loss: 88 (on closing basis)

Neyveli Lignite has made higher swing tops, giving first signs of trend reversal. A rise above

90.50 will result in higher swing bottoms and thus trend reversal.

The volume too is giving signs of strength when the stock rises.

Recently, the stock 50 dma crossed 200 dma and is now trading above 200 dma indicating

long term bullishness in the stock.

The stock can be bought above 90.50 for the target till 98.50. Once in trade, place your stop

loss at 88 (on closing basis).

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STOCKS IN FOCUS

KINGFISHER AIRLINES LTD

BSE Code: 532747 NSE Symbol: KFA P/E : 0 ISIN

Demat: INE438H01019 Div & Yield %: 0 EPS : 0 Book

Value: -57.26 Market Cap (Rs Cr.): 1068.6525 Face Value : 10

Recommendation : BUY AT CMPLast Close : 18.55 Targets : 23-27-30 Stop loss: 14.80 (on closing basis)

Technically, on the weekly charts, Kingfisher has given a bullish engulfing candlestick

pattern at its life-time low prices. Further the bullish reversal candle pattern is accompanied by

life time high volumes.

The entire setup is bullish and points towards rise from here on. Thus the stock can be

bought by traders/investors.

However, tight stop loss needs to be maintained since traders/investors must not forget that

the company has negative networth.

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STOCKS IN FOCUS

GODREJ INDUSTRIES LTD

BSE Code: 500164 NSE Symbol: GODREJIND P/E : 108.28

ISIN Demat: INE233A01035 Div & Yield %: 0.64 EPS : 2.5

Book Value: 33.96 Market Cap (Rs Cr.): 8597.43 Face Value : 1

Recommendation : BUY ABOVE 274.70Last Close : 270.90 Targets : 284-293-303 Stop loss: 265 (on closing basis)

Godrej Industries is in an uptrend. And the corrections in the stock can be used to buy it.

The volume in the stock is strong on the rises or upward rallies. This indicates strength in

the hands of bulls vs. bears.

The stock can bought above 274.70 for the near term target of 303.

Once in trade, place the stop loss at 265, on closing basis.

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STOCKS IN FOCUS

BHUSHAN STEEL LTD

BSE Code: 500055 NSE Symbol: BHUSANSTL P/E : 8.91

ISIN Demat: INE824B01021 Div & Yield %: 0.12 EPS : 46.22

Book Value: 274.44 Market Cap (Rs Cr.): 8745.63 Face Value : 2

Recommendation : BUY ABOVE 415Last Close : 412.10 Targets : 428-439-449 Stop loss: 406 (on closing basis)

Bhustan steel has recently come out of consolidation mode where it traded between 385-

402 range. After break out of the range, now the stock is re-testing the supports.

The recent correction in the stock is a healthy 50%, which also acts as a support level.

The stock can be bought above 415 for the short term targets of 449. Once in trade, place

your stop loss at 406 on the closing basis.

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DISCLAIMER

Created by: Inventure ResearchContact : Research Coordinator, Inventure Growth & Securities Ltd,201,Viraj Tower, Near Landmark Building,Western Express Highway, Andheri (East),Mumbai -400 069Tele: 91-22-39548500 Extension :577, Fax: 91-22-40751535.E-mail: milan.bavishi@inventuregrowth.com , website : http://www.inventuregrowth.com/Notice: This document is prepared by Mr. Milan Bavishi.

Research for Inventure Group for private circulation exclusively for their clients.Disclosure: We and our affiliates, officers, directors, and employees, including persons involved in the preparation orissuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, ofcompany/companies mentioned herein or (b) be engaged in any other transaction involving such securities and earnbrokerage or other compensation or act as a market maker in the financial instruments of the company / companiesdiscussed herein or act as advisor or lender / borrower to such company / companies or have other potential conflict ofinterest with respect to any recommendation and related information and opinions. The same persons may have actedupon the information contained here in.

Disclaimer: This document has been furnished to you solely for your information and may not be reproduced orredistributed to any other person. This material is for the personal information of the authorized recipient, and we are notsoliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buyany security in any jurisdiction where such an offer or solicitation would be illegal. The material is based upon technicalreading of the Graph. Though utmost care is taken by the writer of this document, and it should be relied upon as such.Neither Mr. Milan Bavishi of Inventure Growth & Securities Ltd. nor any person connected with any of these entitiesaccepts any liability arising from the use of this document. Opinions expressed herein the report are our own and are basedon Technical Research as of the date appearing in this document only. Reports based on Technical Analysis centers onstudying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals andas such, may not match with a report based on a company's fundamentals. While we endeavor to update on a reasonablebasis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent usfrom doing so. Prospective investors and others are cautioned that any forward- looking statements are not predictionsand may be subject to change without notice. Our proprietary trading and investment businesses may make investmentdecisions that may not exactly adhere to the recommendations expressed herein. No part of this material may beduplicated in any form and /or redistributed without Mr. Milan Bavishi’s prior written consent. In so far as this reportincludes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot beguaranteed.

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