Market outlook for week starting 26th Nov

Volatility seems to be the flavour of Market for the past few weeks.

Last week we saw the market losing around 845 points.Everyday sensex
traverses from negative to positive and vice versa territories.

Heavy Selling by foreign investors along with the gloomy US economic outlook are the prime reasons for the volatility.Weak dollar and increasing crude prices are adding up the pressure.

We expect volatility to continue in the coming weak. Investors should mention a cautious approach and keep on picking up quality stocks at low levels as Indian economy looks very strong in the long run.

Recommendations for the week

Buy Prakash Industries @ 180. One year Target 300.

Prakash Industries, a diversified business house with interests in steel, power and mining.

Market outlook for week starting 19th Nov

In the last week sensex has zoomed up by around 790 points.

Capital Goods companies and banking stock are the frontrunners of the market gain. IT industry is still showing weakness due to reports of US market slowdown and dollar depreciation.

We expect a positive opening on monday as Left has formally given a
green signal to the Goverment on nuclear deal.

The movements in the market will continue to be volatile. FII's are still
pumping in fresh money in the Indian market which augurs as a good sign.

Our recommendations on India Bull, Yes bank, Power Grid and petronet LNG have already achieved their respective targets.

We continue to maintain a buy Rating on Ashapura mine and Lic housing.

Hold TTSL.

Market outlook for week starting 12th Nov

Indian market is still witnessing heavy volatility. For the first time
in last seven years the market ended in red during mahurat trading.

The direction of market henceforth will be driven by global markets.

Global markets specifically dow and nasdaq have ended on a lower side
indicating furthur downside on monday. Furthur downside is expected in
USA markets next on account of pending home sales index on tuesday and
october retail sales on wednesday.

Indian economy is strong at macro level and there are no problems with fundamentals.

Rising crude oil prices are a cause of concern.

The outcome of 16 November UPA-Left meet on nuclear deal is also critical.

Recommendations

Ashapura Mine @ 375 . One year Target 580.

Mahurat Buy

Our pick for Mahurat buy is LIC Housing Finance Ltd.

LIC Housing Finance Ltd is one of the largest housing finance companies
in India having network of 115 offices across the country.The Company was
promoted by Life Insurance Corporation in 1989.

Net profit for the Q2 showed a growth of 53 %.
The Company's total Income for the second quarter grew at 37 %.
There was a decline in the NPA's of company and it stood at 1.65 % as of September 2007.

We are already seeing an EPS of around 20 as per half yearly results.
Looking at the PE commanded by its compatriot like HDFC we definitely think that we will get a rerating on this scrip.

Buy @ 335 . Long term Target 600.

Market outlook for week starting 5th Nov

Last week was a week of high volatility.The sensex gained around 730 points during the same. There was frenzy buying and selling of frontline stocks throughout the day. Capital goods and banking stocks showed buying intrests.

These week we expect the market to consolidate amidst high volatility. Results of all frontline stocks are already out and there are not any major triggers left.

There is a concern in the telecom sector due to tough spectrum allocation norms which may eat into profit margin of leading GSM players.We may expect furthur dips in gsm players stock and this could be a good buying oppurtunity.

Medium Term Recomendation

Subscribe to Mundra port IPO.


Short Term Recommendation

Buy petronet lng @89 target 110

Wish all our readers a happy Diwali.