Buy Hotel Leela with a stop loss of Rs 52 for a target of Rs 60

Sell HPCL around Rs 519.80-514.40, stop loss Rs 540, cover short at Rs 505.20-490.50

Buy Wockhardt around Rs 227.10-234, stop loss Rs 223, book profit at Rs 244.80-262.50

Buy Tata Communication around Rs 339-345.2; stop loss Rs 335; book profit around Rs 355-371

Sell Mahindra Satyam around Rs 79.6-80.1; stop loss Rs 81; book profit around Rs 78.7-77.2

Buy State Bank of Bikaner & Jaipur with stop loss of Rs 725 for target of Rs 840

Tulip Telecom

BSE Code : 532691

Claims to be India’s one of the largest enterprise data connectivity service provider, a leading network integrator and managed services player, with significant experience in creating and managing large networks across most vertical segments including Banking, Financial Services, Insurance, Telecom, Manufacturing, Logistics, Media, Retail, IT, Consulting, Education, Healthcare and Government. Presently, company derives 90% of its revenue from Enterprise Data Services and the rest 10% from Network Integration. As of now company ranks 4th in the total Enterprise data market commanding 11.34% market share. It is also looking to generate income from newer avenues like Managed Services such as DC, RIM, Security etc and from other Value added services Recently it entered into partnership with Qualcomm to provide Broiadband Wireless Access in key telecom circles of Delhi , Mumbai, Haryana & Kerala. For Q1FY11 its revenue grew by 20% to Rs 525 cr but PBT remained flat at Rs 84 cr. Due to higher tax provisioning PAT declined by 15% to Rs 64 cr posting an EPS of Rs4.50 for the quarter on equity of Rs 29 cr having face value as Rs 2/- per share. Company has the potential to clock an EPS of Rs 22 for the current fiscal. A decent buy at current levels.

Sell Everest Kanto Cylinder with a stop loss of Rs 118 for a target of Rs 98

Buy Power Grid Corporation around Rs 103.10-104.50, stop loss Rs 101, book profit at Rs 106.90-110.70

Sell Tech Mahindra around Rs 692.80-680.40, stop loss Rs 701, cover short at Rs 660.30-627.80

China’s Shanghai Composite was down 0.62% or 16.32 points at 2,623.05.

Hong Kong’s Hang Seng shed 0.62% or 129.66 points at 20,759.35.

Japan’s Nikkei 225 tumbled 1.23% or 112.54 points at 9,004.15.

Singapore’s Straits Times was down 0.12% or 3.57 points at 2,922.42.

South Korea’s Seoul Composite declined 0.59% or 10.47 points at 1,757.24.

Taiwan’s Taiwan Weighted slipped 0.37% or 29.18 points at 7,946.75

Buy Ispat Industries, last close Rs 19.30, buy around Rs 18.30-19, stop loss Rs 17.95, book profit at Rs 20-21.60.

Sell Colgate Palmolive around Rs 837-828, stop loss Rs 845, cover short at Rs 811-785

Buy Ucal Fuel with a stop loss of Rs 85 for a target of Rs 99

Asian markets opened marginally higher; Straits Times was up 0.5% and Nikkei up 0.35%. Taiwan and Kospi gained 0.3%. Shanghai and Hang Seng went up 0.1%. European markets hit 1-week high: CAC was up 1.8%, DAX up 1.57% and FTSE up 1.4%.

Argentina was up 2.8%, Athex up 2.7% and PSI General up 1.8% on strong demand for Irish and Spanish debt auctions, which allayed fears.

US economic data:

Industrial production rose 1% in July versus expected 0.7%; Factory output was up 1.1% in July. Housing starts rose 1.7% in June to annualized unit of 5.46 lakh, market expected 5.5 lakh units. US PPI was up 0.2% in July versus drop of 0.5% in June, 1st time in last 4 mths (in line with expectations). Capacity utilization rate rose to 74.8%, 5.7% higher than last year.

Global Movers & Shakers:

Wal-Mart went up 1.2% post better-than-expected results, raised full year forecast. Potash (Agriculture space) was up 26% after board rejects BHP Billion’s takeover bid. Potash’s rival: Mosaic was up 8.7% and Agrium up 4.6%. Aegon rose 7% after negotiating a deal with European commission; allayed fears of a large share issue to repay state aid. Aviva gained 5% on speculation of bid interest from French peer Axa, both firms declined.

Commodities:

Crude oil ended up 0.7% at USD 75.77/bbl, after losing continuously for last 5 days. Natural gas was up 0.8% at USD 4.27 per MMBtu. Gold ended up 0.1% at USD 1228.3/ounce after hitting USD 1230 in an intraday – highest in 2 months. Silver was up 0.7% at USD 18.59/ounce.

Data to watch:

US MBA mortgage applications
Weekly oil inventories
Earnings from Deere and Target

Sell Reliance Industries with a stop loss of Rs 1020 for a target of Rs 870

Buy Prakash Industries around Rs 172.90-177.70, stop loss Rs 169, book profit at Rs 186.30-199.80

The Nasdaq ended up 8.4 points at 2182, after seeing recovery of 27 points from day’s low of 2155. The S&P 500 Index ended flat at 1079, after seeing recovery of 10 points from day’s low of 1069.

NYSE trading volume didn’t even break 800 million shares; most thinly traded session’s all year.

MSCI Asia Pacific Index was lower for the first time in last 3 days on speculation that Japan will introduce economic stimulus measures

European markets ended flat; CAC was down 0.4% while DAX and FTSE ended flat.

Global Economic News

US homebuilder confidence fell to 13 in August versus 14 in July, lowest level since March 2009 (market expected 15))

NY Empire State Manufacturing Index rose to 7.10% in August, from 5.08 in July (market expected 8.25)

Employment Index rose to 14.29 in August from 7.94 in July

Global M&S

Research In Motion was down 4.8%; after the BlackBerry maker assured Indian authorities of limited access to its Messenger services by September 1, according to government sources

Vedanta was up 4.8% and Cairn PLC up 5.3% yesterday on LSE.

Currencies

Dollar dropped 0.5% versus euro at 1.28

Yen rose to 6-week high versus Euro.

Yen went up 62 bps versus USD at 85.2.

Commodities

September crude oil was down 0.2% at USD 75.24/bbl, 5th consecutive session of losses

Sept natural gas was down 2.3% at USD 4.23 per MMBtu, lowest levels since late May

Gold rose 0.9% at USD 1226.2/ounce, one-month closing high

September silver gained 1.7% to USD 18.43/ounce

Grains fell 2.5%, December wheat futures slipped 5.2% after forecasts for rain in Russia weighed on prices

Data to watch

Treasury Department is scheduled to host a public forum on reforming Fannie Mae and Freddie Mac

US Producer Price Index, Housing starts, industrial production

Earnings before the bell from Home Depot, Wal-Mart