Dated 12 July 2009

5 stocks less than Rs. 50........
1. PRECISION WIRE cmp 39 tgt 49
2. SURYA ROSHNI cmp 35 tgt 45
3. BARAK VALLEY cmp 23 tgt 30
4. VIP INDUSTRIES cmp 43 tgt 53
5. UNIVERSAL CABLES cmp 43 tgt 55

Trade in small qty as market is in downtrend. (Expected Time frame 1-2 months)

INSIDE NEWS:

* Fiscal deficit at 6.8% of GDP has turned many big time FIIs into sellers. They cannot invest in economies with fiscal deficit of 4.5% of GDP or more. So, where is the trigger for a rally?

* Mahindra & Mahindra was hopeful of a repeat performance this quarter but with the monsoon paying truant there is no hope now.

* Reliance Industries may fall to Rs.1600 if the Supreme Court judgment goes against it.

* Infrastructure sector may slow down as monsoon worries may put all planned expenditure out of gear.

* Tech Mahindra acquired only 0.04% shares against the proposed 20% offer for Satyam Computer. Seems good days are ahead for Satyam shareholders!

* MIC Electronics has signed an MOU with IOC for marketing its Solar LED Lantern in rural areas. If successful, it will open huge opportunities for the company.

* Reliance Infrastructure recently allotted 4.29 cr. convertible warrants (i.e. 19% of current equity) to promoters at the rate of Rs.929 per warrant. Anil Ambani is thus looking to infuse Rs.4000 cr. in the company.

* The shares of Uflex are an excellent buy as it may post an EPS of Rs.30 in FY10.

* With further expansion and excellent FY09 results, Graphite India can be bought for decent appreciation in the long-term.

* Some funds strongly recommend IDBI Bank, which is all set to post an EPS of Rs.14+ in FY10.

* The shares of Shiv-Vani Oils are being acquired by HNIs and some funds. Expected EPS for FY10 is over Rs.44.

* Infosys Technologies has cut down on profit forecast but is still one of the best bets. Accumulate at declines.

* GRM Overseas has posted an EPS of about Rs.9 for FY09 and has announced 20% dividend. Quoting around Rs.27 it’s a steal!

* Budget announcements are good for rice processing stocks like KRBL.

* The grey market for forthcoming IPOs has begun with Excel Infoways @ Rs.4-5 per share, Adani Power @ Rs.9-11 and Mahindra Holiday @ Rs.4-6.