The India Street Stock Picks had a 89% Success Rate!

Editor Note: Had you invested Rs. 10,000 into each of Vadivelu's 75 stock picks (Rs. 750,000) - today you will have accumulated an amazing Rs. 17,00,000 a whopping 226% return.

Sundaramurthy Vadivelu

Disclosure Please click the above link to view the disclosure document before reading this article. The contents may not be reproduced in any form without obtaining prior permission from the publisher. Please send your feedback

Self Appraisal

In my previous article, Psychology of investing and trading we classified the investors as short term, medium term and long term. Since July 2007, we picked several stocks for short, medium and long term investment. We have also pointed out that some stocks are bearish. Let us now review these stocks.

Though the “short term” investors may hold the stocks for few days to few weeks, the ultimate duration depends on their profit margin, risk profile etc. However, a holding time of 21 sessions i.e. one calender month can be considered “short term”.

The India Street short term picks and their highest returns (on close basis) are given in the following table. Due to space constraints only scrip code, close price on date of analysis, highest close price and percentage returns are given. The full list of these articles are available here.

1. 5 India Stocks You Need to Own in the Short Term

Scrip	Close	Highestclose	% return
GOKEX	236.65	259.20	9.53
HCC	119.15	139.95	17.46
ORBITCORP	281.05	355.65	26.54
OPTOCIRCUI	376.65	489.45	29.95
SOUTHBANK	121.05	159.70	31.93

2. 5 India Stocks You Need to Own Now

Scrip	Close	Highestclose	% return
EVERESTIND	123.95	-	-
INDIANB	141.05	163.70	16.06
POLYPLEX	144.60	173.90	20.26
SINTEX	259.65	299.70	15.42
SRF	175.75	-	-

3. These 5 India Stocks Set to Move Up in the Short Term

Scrip	Close	Highestclose	% return
ARVINDMILL	50.45	51.30	1.68
GNFC	124.90	139.85	11.97
PFC	169.30	195.65	15.56
PARSVNATH	394.00	-	-
TATAMETALI	147.95	-	-

Tata Metaliks closed at 180.30 on October 10 and Arvind Mill closed at 74.30 on October 25.

4. The Top 5 Bullish Stocks for this Week

Scrip	Close	Highestclose	% return
CELEBRITY	76.80	89.00	15.89
GALLANTT	13.50	13.95	3.33
INDIAGLYCO	167.55	184.80	10.30
KTKBANK	197.55	-	-
USHAMART	56.55	-	-

Karnataka Bank closed at 245.05 on October 3, Usha Martin closed at 85 on October 16 and Gallantt Metals closed at 19.25 on October 25.

5. 5 Reasons to Remain Bullish on India Stocks in the Short Term

Scrip	Close	Highestclose	% return
MRPL	44.35	-	-
NEYVELILIG	80.70	85.20	5.58
RCF	50.55	-	-
TATASPONGE	130.75	-	-
VARUNSHIP	67.40	-	-

These stocks were bullish just prior to US Sub-prime Mortgage Crisis. The highest close values after that crisis are given below. Tata Sponge, MRPL and Neyveli Lignite performed exceptionally well.

Scrip	Date	Close	% return
MRPL	26/09/07	74.30	67.53
NEYVELILIG	25/10/07	129.45	60.41
RCF	26/09/07	61.60	21.86
TATASPONGE	17/10/07	254.75	94.84
VARUNSHIP	16/10/07	76.35	13.28

6. Buy these 5 Stocks before the run up

Scrip	Close	Highestclose	% return
BOMDYEING	542.45	697.15	28.52
GTLINFRA	34.30	40.60	18.37
KOTAKBANK	699.35	922.20	31.87
SCI	178.85	221.70	23.96
SUNILHITEC	204.70	259.45	26.75

These short term picks were based on candlestick patterns.

7. The 5 Next Biggest Stocks in India

Scrip	Close	Highestclose	% return
BHAGWATIHO	40.95	47.00	14.77
BOC	147.80	154.45	4.45
DENORA	132.10	140.60	6.43
FDC	32.45	33.70	3.85
TVSMOTOR	70.35	-	-

It can be seen that out of 35 stocks discussed, the ‘true’ failures are Everest Industries, SRF, Parsvnath and TVS Motors. There is nothing technically wrong with these stocks. Investors with a little more patience (holding the stock for more than one month) might have gained better in other stocks.That said, we have a success rate of 89% in our short term picks during last four months.

We once again reiterate that technical analysis is all about probabilities; there are no certainties. No one can clearly predict which stock will rally on a given day. The best thing an investor can do in case of a failure is to accept it and get out of the stock. This should be used as a learning experience.

Medium Term Picks:

1. 5 India Stocks You Should Own for the Next 6 Months

Scrip	Close	Highestclose	% return
ADANIENT	274.30	787.55	187.11
GODREJIND	204.40	-	-
HIKAL	489.20	566.95	15.89
TINPLATE	62.40	-	-
XLTL	134.25	225.95	68.31

Godrej Industries has a strong support at 140. It has formed a “harami” candlestick pattern last week. Hopefully, it should be able to bounce back from the current levels. Tin Plate has support at 41.30 and 40.10. The stock should reverse at these levels.

2. Buy These India Stocks and Hold for 6 Months

Scrip	Close	Highestclose	% return
COSMOFILMS	99.80	-	-
HEG	213.70	274.55	28.47
KIRLOSOIL *	174.38	-	-
ROHITFERRO	40.60	53.10	30.79
ZEEL	342.90	-	-

* Adjusted close. Kirloskar Oil and ZEEL have lost marginally while Cosmo Films has just bounced back from support levels.

3. If you’re an Investor, Our India Stock Picks will add to your Net Worth

Scrip	Close	Highestclose	% return
ISPATIND	18.80	32.00	70.21
JINDALPHOT	122.05	169.75	39.08
RANBAXY	409.25	442.35	8.09
TODAYS	75.95	97.20	27.98
VENKEYS	171.60	195.85	14.13

4. Top Five All-Around Value Stocks

Scrip	Close	Highestclose	% return
INDRAMEDCO	39.65	40.85	3.03
INDUSINDBK	65.90	84.85	28.76
NAVNETPUB	77.80	90.40	16.20
SABERORGAN	17.55	19.95	13.68
ZUARIAGRO	275.25	292.65	6.32

5. There’s Something about These Five Stocks

Scrip	Close	Highestclose	% return
BASML	96.60	120.10	24.33
CAIRN	178.30	204.65	14.78
IL&FS	220.55	336.35	52.50
LLOYDSTEEL	13.15	16.10	22.43
PENINLAND	119.25	138.55	16.18

It should be remembered here that one may hold the stock up to six months for investment. So, some more time can be given for those stocks that haven’t rallied yet. Out of the 25 stocks that we discussed, 20 have closed higher. This gives us a success rate of 80%.

Long Term Picks:

1. 5 Great Long Term India Stock Buys

Scrip	Close	Highestclose	% return
DENABANK	46.75	69.00	47.59
GTL	225.55	265.55	17.73
GVKPIL	486.55	767.15	57.67
RPL	111.10	191.15	72.05
SREINTFIN	89.50	138.80	55.08

2. 5 Reasons to be Bullish in the Long Run

Scrip	Close	Highestclose	% return
HITACHIHOM	135.55	-	-
NAGARFERT	23.45	64.25	173.99
PSL	339.90	398.60	17.27
PTC	86.65	106.20	22.56
UNIONBANK	155.90	173.90	11.55

3. Buy These 5 Stocks and Forget about them

Scrip	Close	Highestclose	% return
CHAMBALFERT	49.80	58.35	17.17
GITANJALI	292.10	379.50	29.92
HONDAPOWER	241.30	259.15	7.40
MALUPAPER	44.90	57.55	28.17
MSPL	25.50	40.30	58.04

Except for HITACHIHOM, all the other stocks have gained reasonably well. This leads to a success rate of 93% as for as long term picks are concerned.

Conclusion:

This is an eye opener for all those who are skeptical about technical analysis. Of the 75 stocks that we have discussed so far, only 10 have closed lower. So our overall success percentage is 87%.

In future, we shall try to continue and improve this success story. We also thank all those who sent their feedback.

Keep visiting The India Street for more on real estate and stock markets!

Sundaramurthy Vadivelu

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The 5 Next Biggest Stocks in India

(short term perspective)

Sundaramurthy Vadivelu

Disclosure Please click on the above link to view the disclosure document before reading this article. The contents may not be reproduced in any form without obtaining prior permission from the publisher. Please send your feedback

In this article let us discuss 5 India stocks that are bullish for short term.

Bhagwati Banquets and Hotels Limited

(Group: B1, Scrip Code: 532845):

The Grand Bhagwati is situated in the outskirts of Ahmedabad. It has 35 guest rooms and 2 grand suite rooms. It also has a conference hall with an open area of over 7,000 square foot suited for special events like exhibitions, fashion shows, product launch, premieres etc. besides large wedding & reception parties. In April 2007 the company came out with an IPO to raise funds for its proposed hotel project near Surat. The company declared a net profit of Rs.1.55 crores for the quarter ended June 2007.

The stock’s IPO issue price was 40. There was a mixed reaction to this IPO from the media that the valuations are stiff.

In the daily chart shown below, it can be seen that on the day of listing it made a high of 57.35 and closed at 49.05. The stock was on a downtrend and touched a low of 25.60 on August 6. On September 6 it had broken its previous resistance at 39.60 and closed above it; it continues to trade above it. The stock is likely to test its previous high of 57.35 in short term.

http://groups.google.com/group/theindiastreet/web/BHAGWATIHO_160907.jpg

BOC India Limited (Group: B1, Scrip Code: 523457):

This company specializes in industrial gases production. It was established in 1935 as Indian Oxygen and Acetylene company and currently it is a subsidiary of BOC group, which is a pioneer in air separation technology. BOC India produces industrial gases such as oxygen, nitrogen, acetylene, hydrogen, carbon dioxide and special purpose gases that are used in medical/industrial applications. The company’s net profits were worth Rs.44.6 crores in 2006 – 07.

http://groups.google.com/group/theindiastreet/web/BOC_160907.jpg

The stock has been hit badly in the last one year. It made a high of 242.90 on May 9, 2006. On April 3, 2007, it registered a low of 122. This support has not yet been broken, though the stock came down to 122.05 recently. After about 4 months consolidation pattern, it had broken its resistance at 149.90 and closed above it. The stock is expected to target 198 in short term.

De Nora India Limited (Group: B1, Scrip Code: 590031):

The company was formerly known as Titanor Components Limited. The Italian group De Nora has 51% stake in this company. De Nora group has developed membrane cell technology for the chlor alkali industry. Denora India supplies cathodic protection systems, ion exchange membrane cell components, electrochlorination systems etc. The company’s net profit for the quarter ended June 2007 was Rs.1.23 crores.

http://groups.google.com/group/theindiastreet/web/DENORA_160907.jpg

Like BOC, this stock too had lost severely in the last one year. It fell from a high of 379 in May 2006 to a low of 80.05 in March 2007. It registered a higher low of 93 on July 30. On September 13, it broke its previous high at 122 and closed above it with very good volumes . There is a possible downside risk of 10 rupees for this stock. However, it is likely to test 164 in the short term.

FDC Limited (Group: A, Scrip Code: 531599):

FDC Limited (formerly Fair Deal Corporation) is a leading pharmaceutical company in India with more than 70 years of operation.

Electral, a popular oral rehydration salt formulation by FDC

FDC manufactures formulations as well as active pharmaceutical ingredients. Formulations include antibiotics, antivirals, antifungals, oral rehydration salts, cardiovascular drugs, opthalmics etc. FDC exports its products to over 50 countries, including advanced markets such as the United States, United Kingdom and Japan. The company declared a net profit of Rs.65.6 crores for the financial year 2006 – 07.

http://groups.google.com/group/theindiastreet/web/FDC_160907.jpg

This stock had made a high of 66 in December 2004. It fell to a low of 27.05 on August 22, 2007. On September 14, it broke the previous high of 31.80 made on September 4 and closed above it with very good volumes. This is the first bullish breakout for the stock after a long time. The stock is expected to test its resistance at 36.80 in the short term. It has entered the third wave in daily chart; but it is still in the first wave in weekly chart. A correction after achieving the target of 36.80 cannot be ruled out.

TVS Motor Company Limited (Group: A, Scrip Code: 532343):

TVS Motor Company is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. TVS first rolled out the TVS 50 moped in 1980 and later TVS Suzuki motorcycle. It reported total two wheeler sales of 102,734 units in August 2007 compared to 135,533 units in August 2006. The company’s net profit for the year 2006 – 07 was Rs.77.75 crores.

TVS Apache motorcycle

Like BOC and FDC, this too was a casualty since last year. Its high was 186.50 on April 5, 2006. From this, it had fallen to a low of 51 on April 3, 2007 (a loss of 72% in one year).

http://groups.google.com/group/theindiastreet/web/TVSMOTOR_160907.jpg

Over the last 5 months, the support at 51 has not been broken. On September 10 the stock had broken its resistance at 72 and closed above it with reasonably good volumes. The short term target for the stock works out to 90.

Sundaramurthy Vadivelu

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Buy these 5 Stocks before the run up

By Sundaramurthy Vadivelu

Disclosure

In my earlier article, “Top Ten Signs a Stock is Going to Move up or down” we discussed about possible technical reasons for stock price movements. One of them was candlestick patterns. These can be used to identify investment and trading opportunties particularly at support and resistance levels.

The most common method used by technical traders to enter ‘long’ positions i.e. (buy first and sell later) is ‘buy on resistance breakout’. We had picked several stocks in my earlier articles based on breakouts. But the risk associated with this method is that the stock can retrace back to support levels. After a correction traders can identify a possible reversal at support level and it can be used to initiate a trade.

The reversals discussed below are based on “Three inside up” candlestick patterns. There have been few theories that candlestick patterns work well in some markets better than others. But, when identified properly and applied correctly, these can be found to work in any financial market. The Japanese have strong belief that candlestick charting is a very powerful analytical technique. I have always used candlesticks in my analysis.

Bombay Dyeing & Manufacturing Company Limited:

Bombay Dyeing belongs to the well known Wadia group. They have diversified businesses in textiles, chemicals, aviation, food and health care industries. The company was established in 1879. Cotton spun yarn dyeing was then carried out manually. Today, this company exports more than 50% of its production to USA, UK, Germany etc. It has presence in all the major continents. The company’s net profits were worth Rs.36 crores in 2006 – 07.

http://groups.google.com/group/theindiastreet/web/BOMDYEING_290807.jpg

In the daily chart shown above, the two downward “gaps” can be noticed. It simply means that there was more supply than demand on those sessions. But invariably, these gaps get closed when the stock reverses. A “Three inside up” pattern i.e. “Harami” pattern followed by a higher close and green candle has been formed. Note the upward gap on the third day. 61.8% retracement works out to be 593.

GTL Infrastructure Limited:

GTL Infrastructure provides necessary infrastructure for mobile phone operators. The entire package includes ground based/roof top towers, microwave racks, cable racks, electrical accessories etc.

http://groups.google.com/group/theindiastreet/web/GTLINFRA_290807.jpg

The tower packages are owned by GTL Infrastructure while operators pay monthly or quarterly for using the facilities. The company declared a net profit of Rs.10 crores for the quarter ended June 2007.

A “Three inside up” pattern has been formed in the daily chart of the stock near support level on August 27. The previous high at 38.55 is the first target for the stock during the pull back rally. The technical target is 40.40 which is 61.8% retracement.

Kotak Mahindra Bank Limited:

We discussed about this stock in my previous article, “Hot or Not? Private sector banks on a roll!”. Kotak Mahindra Bank offers total financial solutions to customers, from personal/corporate banking, stock broking, life insurance, investment banking, loans etc. Mahindra & Mahindra have a stake in the bank.

http://groups.google.com/group/theindiastreet/web/KOTAKBANK_290807.jpg

Again, a “Three inside up” pattern has been formed in the daily chart. The previously formed downward gap temporarily acts as minor resistance for the stock. A close above 714 would mean that the 50% retracement is achieved and also the resistance would be broken. Once it happens the stock should be able to test its previous high at 815.

It is important to note that the formation of candlestick patterns in areas other than support or resistance levels may not really reflect a reversal. Hence the first task in deciding whether to enter a trade based on candlestick patterns is to identify support and resistance levels.

Shipping Corporation of India Limited:

The Government of India has about 80% stake in this company. For more than 40 years, SCI owns and operates 35% of Indian tonnage and it has diversified in nearly all areas of shipping business serving both national and international trades. It is the only Indian shipping company operating break bulk service, international container service, liquid / dry bulk service, offshore service, passenger service etc. It also monitors a large number of vessels on behalf of various government departments and organizations. Its net profits were Rs.1014 crores for the financial year 2006 – 07.

http://groups.google.com/group/theindiastreet/web/SCI_290807.jpg

In this stock too, a “Three inside up” pattern has been formed. There are a couple of gaps in the chart, on August 6 and August 10. However they are very minor (less than 0.50% of close price) and may be ignored. 61.8% retracement works out to 207 and this is the technical target for the current pull back rally.

Sunil Hi-Tech Engineers Limited:

Sunil Hi-Tech Engineers Limited is engaged in the fabrication, erection / testing and commissioning of bunkers, boilers, fuel oil systems etc. in the power sector.

It reported a net profit of Rs.7.60 crores during the financial year 2006 – 07.

http://groups.google.com/group/theindiastreet/web/SUNILHITEC_290807.jpg

The stock has more than doubled in the last 3 months. It has not fallen much during the recent correction. In this stock also, a “Three inside up” pattern has been formed. The support trendlines are intact; an indication that the stock is still bullish. On the second day of the candlestick pattern, a “doji” body as been formed. This has more significance, since a harami cross pattern is more reliable than a harami pattern. The stock is likely to test its previous high at 234.90.

Sundaramurthy Vadivelu

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5 Reasons to Remain Bullish on India Stocks in the Short Term

Disclosure

We have been discussing technically bullish Indian stocks for the last month. In this article we shall analyze 5 stocks that are interesting from a short term perspective. These stocks are either from ‘A’ group or ‘B1’ group of Bombay Stock Exchange (BSE).

Mangalore Refinery and Petrochemicals Limited (MRPL):

MRPL was set up in 1988 with a crude processing capacity of 3 million metric tonnes per year by HPCL (Hindustan Petroleum Corporation) and Aditya V Birla group. ONGC (Oil and Natural Gas Corporation) acquired entire shareholding of A V Birla group in 2003, making it a majority held subsidiary. Currently the refinery’s capacity stands at 9.69 million metric tonnes per year. MRPL implemented Quality Management System (QMS) as per ISO 9000:1994 standards from December 1999. In January 2003, MRPL upgraded its QMS to ISO 9001:2000 standards and was accredited on March 13, 2003 by TUV Rheinland. It has declared a net profit of Rs.525 crores for the financial year 2006 – 07.

Both weekly and daily charts of MRPL are displayed below. In weekly chart, an “inverse head and shoulder” pattern has been formed. We have seen in my previous article “Chart patterns and market’s reaction” that this pattern is a bullish sign. Watch the low on the ‘inverse head’ nearly going down to test the previous low. The neckline resistance has been broken comfortably.

In the daily chart, we can see the waves clearly. The first wave retraced from a low of 32.50 to a high of 45.70. Some decline and consolidation has taken place in the last two months; on July 23 it had broken its resistance with very good volumes. The next resistance exists at 48.50, which is also the 50% retracement level considering a previous high of 64.40 and recent low of 32.50.

Close above 48.50 will take the stock to 52.25 and 56.90.

http://groups.google.com/group/theindiastreet/web/MRPL.jpg

Neyveli Lignite Corporation of India Limited:

Neyveli Lignite Corporation (NLC) is located at Neyveli in the state of Tamil Nadu. It has been involved in exploitation of lignite deposits and thermal power generation for over 40 years. NLC offers consultancy services to other organizations in thermal power generation. It has two lignite mines with a capacity of 10.5 million metric tonnes per annum each and another with a capacity of 3 million metric tonnes per annum. The total installed power generation capacity is 2490 MW. It has also proposed to install power plants in Tuticorin (Tamil Nadu), Gujarat, Rajasthan and Orissa.

The company’s net profit for the financial year 2006 – 07 was Rs.567 crores.

http://groups.google.com/group/theindiastreet/web/NEYVELILIG.jpg

As in the case of MRPL, this stock too, has formed an “inverse head and shoulder” pattern in weekly chart. It has also broken its resistance in weekly chart.The breakout volumes in daily chart have been good in both MRPL and NLC. In fact, it has managed to close above 80.50 which is 61.8% retracement considering a low of 48.75.

The next target for the stock is its previous high i.e. 100.20.

Rashtriya Chemicals and Fertilizers Limited (RCF):

RCF manufactures various grades of urea, bio fertilizer, liquid micronutrients, methanol, sodium nitrate, sodium nitrite, ammonium bicarbonate, methylamines, dimethyl formamide, dimethylacetamide etc. Over the last 3 years, its net profits have been more or less consistent i.e. Rs.141, 149 and 148 crores.

http://groups.google.com/group/theindiastreet/web/RCF.JPG

The daily chart of RCF is displayed above. The stock, after making a high of 49.85 on February 9, 2007, was on a downtrend for about a month. Nearly after 4.5 months it has broken the previous high with very good volumes. The previous high should act as a support for the stock. It is also bullish on weekly charts. The next targets for RCF are 56.50 and 62.50.

Tata Sponge Iron Limited:

The company was initially set up in 1986 as a joint venture undertaking by Tata Steel and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). In 1991 Tata Steel acquired the entire stake of IPICOL. Tata Sponge manufactures sponge iron with an installed capacity of 390,000 metric tonnes per year. Company’s net profits for the last two years have been steady at around Rs.22 crores.

In the daily chart of TATASPONGE, the classic “cup and handle” breakout, a bullish continuation pattern can be observed. It has taken about 6 months to form this pattern. The cup’s left peak of 132 was broken on Monday with good volumes. In weekly chart, the stock had formed a “double bottom” between January and April 2007.

The target after the cup and handle breakout works out to 168.

http://groups.google.com/group/theindiastreet/web/TATASPONGE.JPG

Varun Shipping Company Limited:

Varun Shipping is a private hydrocarbon cargo carrier in India with a fleet of 12 LPG tankers, 3 crude oil vessels, 3 offshore supply vessels and 1 product vessel. These vessels are either placed directly with the end users or in the pools wherein the managers of the pool arrange for chartering of these vessels. The company had declared a net profit of Rs.141 crore for the year 2006 – 07.

http://groups.google.com/group/theindiastreet/web/VARUNSHIP.JPG

The stock is bullish in both daily and weekly charts. It has been consolidating over the last 2 months and on July 23 it had broken out with reasonably good volumes. Minor resistance exists at 71, after which the targets are 75 and 83.

Sundaramurthy Vadivelu

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Feeling Bullish - India Stock Market Weekly Review

Disclosure

Bulls make merry as Indices continue to rally!

In the last weekly review I had mentioned, “This week was an interesting one and now we have the confirmation that the bulls are back on track”.

This view was found correct as the indices were on a roll this week. The Nifty gained 61.50 points (1.37%) on weekly basis. Except for a minor correction of 15.40 points on Tuesday the index closed positive on all four remaining days. But the major rally was witnessed on Thursday as the index soared by 62.55 points. On Monday, Wednesday and Friday Nifty remained almost flat with gains of 7.60, 2.80 and 3.95 points respectively. The Nifty closed at 4566.

On Tuesday and Wednesday there were two candlesticks with ‘doji’ bodies. In my earlier article “Candlestick patterns in Indian stock markets” we discussed about single and multiple candlestick patterns and their use. A doji represents indecision among traders. ‘Doji’ candle’s open and close prices are same (or nearly the same). But the real body should be almost in the middle of the candlestick range. Tuesday’s and Wednesday’s candlesticks though, had a “doji” body meaning open and close were almost the same. But on Tuesday the real body was found below the middle of the candlestick range. On Wednesday it was above the midpoint. The long upper shadow on Tuesday indicated a sell off; it was reflected in Wednesday’s trade for the first 4 hours. During the last hour of trade the bulls had managed to close positive, though the gain was a meagre one. This is seen from the long lower shadow of the candlestick on Wednesday. In other words the bears tried to push the market down on Wednesday; but the bulls managed to push the index up. As a result we saw a rally on Thursday.

But that was a short lived one. Today Nifty has once again formed a ‘doji’ body with a long upper shadow similar to that of Tuesday, signifying selling pressure. Both daily and intra day chart of nifty are shown below. Today’s trading session has been a weak one, though with a small gain. The day, though opening higher, formed lower highs and lower lows continuously. The last hour of trade witnessed sell off as indicated on the chart. This means that the market is witnessing profit booking at higher levels. Going by this chart, we may see further corrections next week. But those corrections will be good for the index and the overall market.

Daily chart of Nifty

http://groups.google.com/group/theindiastreet/web/NiftyDaily200707.JPG

Intraday chart of Nifty on 20-Jul-07

(Courtesy: NSE, www.nseindia.com)

http://groups.google.com/group/theindiastreet/web/NiftyIntra200707.JPG

However, we still maintain our bullish view on medium and long term trends on the index.

Several index stocks are at a life time high. These include Bharti Airtel, Gas Authority of India, Grasim, Indian Petrochemicals Corporation, Larsen & Toubro, Reliance Communications and Reliance Industries. Bharat Petroleum and Hindustan Petroleum are bearish in short term charts.

The India Street analyzed Omaxe IPO. Today the issue got closed at 1700 IST. Following details are available now.

Total Issue Size	17796520
Total Bids Received	1197281780
Total Bids Received at Cut-off Price	51889820
No. of times issue is subscribed	67.28

As of yesterday, the qualified institutional buyers had oversubscribed by 8.59 times, non institutional investors by 3.26 times, retail investors 1.17 times and employees of the company by 0.95 times. These figures will change today.

Top gainers and losers among index stocks:

Scrip	% Gain	Scrip	% Loss
RELIANCE	6.72	SIEMENS	9.08
BAJAJAUTO	6.45	CIPLA	5.15
IPCL	6.15	ABB	4.72
GUJAMBCEM	5.70	BPCL	3.82
RCOM	5.22	SUNPHARMA	3.54

Top gainers and losers in overall market:

Scrip	% Gain	Scrip	% Loss
ZEENEWS	61.82	BSL	17.26
PTC	33.52	COLORCHIPS	16.73
KOTHARIPRO	30.23	NDTV	15.86
CELEBRITY	25.49	HEXAWARE	15.13
NIPPOBATRY	24.96	INFOTECENT	14.76

We discussed about Celebrity Fashions in my earlier article, “The Top 5 Bullish Stocks for this Week”.

We have analyzed 20 stocks for short term, 10 stocks for medium term and 5 stocks for long term investment. The following tables show the status of these stocks as of today. (Please note that ‘Initial’ refers to close price on date of analysis, Highest refers to the highest close price after the analysis date, % gain is calculated based on these two prices.)

Short term picks

Analysis date: 29-Jun-07

Scrip	Initial	Highest	% gain
GOKEX	242.60	259.20	6.84
HCC	123.20	132.00	7.14
OPTOCIRCUI	385.10	469.85	22.01
ORBITCORP	272.70	355.65	30.42
SOUTHBANK	127.50	152.55	19.65

Analysis date: 05-Jul-07

Scrip	Initial	Highest	% gain
EVERESTIND	123.95	123.95	0.00
INDIANB	141.05	163.70	16.06
POLYPLEX	144.60	154.20	6.64
SINTEX	259.65	289.75	11.59
SRF	175.75	176.10	0.20

Analysis date: 12-Jul-07

Scrip	Initial	Highest	% gain
ARVINDMILL	48.50	51.30	5.77
GNFC	124.90	137.30	9.93
PARSVNATH	394.00	394.00	0.00
PFC	169.30	195.65	15.56
TATAMETALI	147.95	147.95	0.00

Analysis date: 18-Jul-07

Scrip	Initial	Highest	% gain
CELEBRITY	76.80	89.00	15.89
GALLANTT	13.10	13.10	0.00
INDIAGLYCO	164.20	164.45	0.15
KTKBANK	196.05	196.05	0.00
USHAMART	280.00	289.90	3.54

Medium term picks:

Analysis Date: 02-Jul-07

Scrip	Initial	Highest	% gain
ADANIENT	270.70	320.75	18.49
GODREJIND	214.65	220.55	2.75
HIKAL	491.75	566.95	15.29
TINPLATE	60.80	60.80	0.00
XLTL	138.75	140.05	0.94

Analysis Date: 16-Jul-07

Scrip	Initial	Highest	% gain
COSMOFILMS	99.85	102.70	2.85
HEG	224.65	237.90	5.90
KIRLOSOIL	347.65	357.40	2.80
ROHITFERRO	39.50	39.50	0.00
ZEEL	335.80	335.80	0.00

Long term picks:

Analysis Date: 02-Jul-07

Scrip	Initial	Highest	% gain
DENABANK	49.75	56.95	14.47
GTL	222.60	231.75	4.11
GVKPIL	496.95	579.35	16.58
RPL	114.35	117.90	3.10
SREINTFIN	92.20	107.45	16.54

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SUNDARAMURTHY VADIVELU