Sensex and Nifty Weekly Technical Analysis and Stock Trading Tips

Sensex Resistance will be at 20481-20513. Weekly resistance will be at 20583-21100. Weekly support will be at 20066-19549. Traders short can keep the stop loss at 20600. Cover short positions at 20273-19900. Sell on a fall below 19900 with the high of the week as stop loss or 20600, whichever is higher. Sell on rise to 20899-21133 with a stop loss of 20200. Minor pullback seen unless 19900 stands violated

Previous week, the BSE Sensex opened with a gap down in relation to the previous week’s closing of 20513.85. It opened at 20479.03 and maintained the high for the week at 20489.35. The fall to 19963.11 marked the low for the week while it finally closed the week at 20376.56 and thereby showed a net fall of 137 points on a week-to-week basis.

The support of 20137 was tested and 20100 were violated but it closed the week at 20376.56. The retracement of the last rally from 17448 to 21483 is placed at 19947, 19448 and 18985. The low of last week at 19963 was very near the 38.2 percent retracement level of 19947. We, therefore, assume that the first retracement was tested. A pullback of the fall from 21483 to 19963 is likely to be seen before putting the pressure back on 19963.

Further weakness or correction will continue on a fall and close below 19900. If that happens, then expect 19448 and 18985 to be tested.

Resistance will be at 20481-20513. Weekly resistance will be at 20583-21100. Weekly support will be at 20066-19549. The pullback retracement levels are placed at 20515, 29686 and 20903. For the near term to short term, a pullback to retracement can be seen. If a stronger rise and close above 21100 happens, a rally towards the top may be seen.

On the daily chart, we have gaps that can provide resistance. The gaps are at 20572-20647 and 20899-21133. These gaps will be tested and can also offer resistance. The pullback to resistance levels, retracement and gaps can create a lower top and could subsequently test back the low of 19900.

Alternatively, if there is a fall immediately below 19900, then expect it to test the 19448-18985 range.

BSE Mid Cap Index

Further correction can be seen below 6180. Expect a pullback first to the levels of 6420-6495-6570.

BSE Small Cap Index

Further correction can be seen below 6164. If that happens, then expect the range of 5980-5880-5688. If the support of 6164 is not violated, then a pullback to 6374 to 6508 could be seen before putting pressure back on 6164. If the slide continues below 6164 then anyway the trend is down.

BSE Bankex

Retracement of the last rise from 9535 to 13928 was seen. The 50 percent-61.8 percent range is at 11712-11237. The low registered last week was 11373. Expect 11979-12359-12645 to be tested. A pullback can be seen in the near term before putting pressure on the support of 11373.

Strategy for the week For Sensex

Traders short can keep the stop loss at 20600. Cover short positions at 20273-19900. Sell on a fall below 19900 with the high of the week as stop loss or 20600, whichever is higher. Sell on rise to 20899-21133 with a stop loss of 20200

Nifty Weekly Pivot at 6022 is first support. Now 200DMA is at 5977. So the level is 5955-5977 is a Major Support. Below 5955 Bears can touch 5733-5622. On Weekly Chart Trend Line Support is at 5733. The long term trend line in the Monthly chart is now at 5622.

Stock Trading Tips



Nifty Macd in Selling Mode and Stock Market Tips

Nifty Fut tumbles as anticipated as it has broken its descending triangular pattern on the lower side. The minimum target of the pattern comes to 5900 levels and below those 5770 levels. On the upside, 6210 levels are a crucial resistance and till that are not taken off the short to medium term bias remains down. Nifty is currently trading in its wave C down of wave (2).The impetus pointer Moving Average Convergence Divergence has gone into sell form on the daily as well as weekly charts

Bank nifty we were expecting this fall in since more than one month i.e. ever since it was in its final stages of completing the wedge pattern. The fall came as anticipated and it has come in W-X-Y-X-Z fashion. Now, we got a positive close in its Friday’s session which indicates that there can be a bounce in its wave B of wave z which can take the prices till 10600 levels. However, this bounce should be utilized as a shorting opportunity as our target of 9900 to 9600 levels remains intact i.e. its 61.8 percent of the rising wedge pattern. The momentum indicator Moving Average Convergence Divergence has gone into sell mode on the daily as well as weekly charts.

Ultratech Cement Fut The stock has formed a base near 1660 levels and till those levels are held it has a high probability of breaking on the upside. The previous rise appears to be a five wave rise, so another five wave rise is expected which will take prices to 1790 to 1830 levels. However, one should initiate longs only above 1730 levels as above that it will also provide a breakout from the double bottom pattern. The daily MACD is well into buy mode, however the weekly Moving Average Convergence Divergence remains into sell mode. Candlestick pattern Double Bottom has formed

Larsen Toubro Fut the stock has formed a head and shoulders pattern which will confirm its breakdown below 965 levels. The minimum target below 965 levels comes to 915 levels, whereas, the resistance on the upside comes to 986 levels, so the risk to reward ratio is quite favorable for the bears. Below 915 levels, it enters into a free fall area and it can slide till 881 to 830 levels. The daily Moving Average Convergence Divergence has gone into sell mode and it has formed a hinge which is quite dangerous. The weekly Moving Average Convergence Divergence is about to provide a sell signal. Candlestick pattern Head and shoulders formed

Gail Fut the stock has formed an inverse head and shoulders pattern; however, the breakout of the same will be confirmed above 359 levels. The minimum target above 359 levels comes to 390 levels and above that it will provide a breakout of a long term downward sloping trend line. So, above 390 levels we can see the levels of 402. The support on the lower side is pegged at 339 levels i.e. its forty DEMA. The daily Moving Average Convergence Divergence has come into buy mode, whereas, the weekly is already is buy mode. Candlestick pattern Inverse head and shoulders formed

Stock Market Tips

SELL NIFTY FUT BELOW 6175 SL 6210 TGT 5900-5775




National Stock Exchange (NSE) of India


National Stock Exchange (NSE) of India was set up by the government of India upon recommendation of Pherwani committee of 1991 which was promoted by leading financial institutions led by the Industrial development bank. Currently, it is the 11th largest stock exchange worldwide by market capitalization and the largest in India via daily turn overs.NSE India was incorporated as a tax paying corporation in November 1992 and recognized as stock exchange under the securities contracts Act in the year 1956. It started its operation in the Wholesale Debt market segment in June 1994 while its Capital market segment begun in June 2000.Though National Stock exchange of India is a legal entity on its own, it is co-owned mutually by leading financial institutions, banks, insurance companies and financial intermediaries. This exchange usually operates on an electronic market that permits trading to be mainly automated on the systems with sophisticated software programs and interfaces that aid potential investors to transact and research. Trading of this stock only occurs fro Monday to Friday only. There have been a milestone of events that have taken place in this NSE of India, they include:

  • 12th June, 2000 – Started trading in derivatives with launch of index futures.
  • August, 2008 – Introduction of currency derivatives with launch of currency future in USD.
  • 31st August, 2009 –Added currency futures of Euros, pounds and yen. Further introduced interest rate futures.
  • 29th August, 2011- Launched derivative on contract on world’s most followed equity.
  • 3rd May, 2012- Launched derivative contracts on FTSE 100.

There were several objectives for the formation of NSE India. These are:

  • To establish a global trading facility for all types of securities.
  • To facilitate a equal access to investors by providing an appropriate communication network.
  • To meet international benchmark and standards.
  • To enable shorter settlement cycles and book entry settlements.


There are a lot of benefits that have accrued from this Indian stock. These benefits are discussed below:

  • Source of information for investors’ investments decision – NSE publishes notice about brokers, traders and investors. These notices are essential for determining investment strategies on the side of investors.
  • Reveals de-listed companies- NSE can let potential investors know de-listed companies so as to stop investing in them to avoid future loss of in investments.
  • Makes investors aware of suspension stocks and hence make decisions wisely.
  • Makes idle money and saving s productive by bringing together lenders and borrowers.
  • Educates people about higher profits in shares and bonds, how and when to buy shares and bonds.
  • Facilitates good management of companies through periodic performance reports and daily market reports it issues.


Online stock trading has taken a deep root in India. Approximately 8 million transactions are carried out daily on NSE of India. To participate in on line stock trading, one should open an online stock trading account. There are several online accounts that enable one to trade online. The following procedures are hence followed in order to start online trading:

  • Choose an appropriate online broker.
  • Open an online account for online stock trading for beginners along with a depository account as demanded. Hint: Trader needs to have bank account that supports online transactions.
  • Use the username and password provided to carry out online trading.


Investing stock may look simple when in real sense it is complex and unpredictable. There are several tips that should be employed before one invests in stocks especially when one is a beginner in stock investment. These tips include:

  • Manipulation of a budget for investment; One should not invest all the money in stock because in the event of loss, he/she suffers a great deal.
  • Know which to invest; Investors need to understand profit yielding stocks of which they should choose to invest in them.
  • Understand market trends; this will provide chances and assumptions of what time to invest in and what time are not favorable for investment.


The set up of stock market is a vital tool in an economy. Through the stock market exchange, vital data about investment, performance of countries economy, investment activities, profits of firms & investors and risk bearing confidence are revealed. India has accrued benefits from its NSE due to its early set up of NSE.

NSE India – Tips for Safe and Profitable Stock Market Investment in India

NSE India stands for National Stock Exchange of India. NSE is the largest stock exchange market in India that stands at the third position among the world’s biggest stock markets. NSE was established in November 1992 as a tax paying company and promoted by the leading financial institutions in the country. Headquartered in one of the most popular metrocities in the country, Mumbai, NSE today is the prime trading facility for investment in India providing a reach to all major segments of stock trading including equity or capital markets, mutual funds, futures & options, derivatives market and so on.

Tips for Investing in NSE India

Investment in NSE India can bring good profits to the traders who are experts in trading the securities. A NSE investor should have required knowledge to make an investment in stocks. He/she should possess relevant knowledge of stock trading and up-to-the-minute market trends in order to make good returns from an investment in NSE India. The investors who have knowledge of investing stocks will have an idea of a few sure shot techniques which can help in gaining investment returns even in volatile or harsh stock market situations.

Knowledge of working of NSE stock markets, when and how to invest for a profitable stock market investment is necessary.

Prior to investment in stock market, the investor must be aware of the different kinds of stocks that are available in the market for trading.

Risks are a part of stock trading and for an investor to become a good stock trader, it is required that he/she does not fear to take risks. If the investor is not ready to take any risks then he/she should not invest in shares and stocks.

Investment within budget is always a good idea. Set the budget for your investment according to the gains you desire and then plan your investment in the NSE stocks.

There are number of companies listed in NSE stock market. You need to find out the best companies whose shares or stocks are expected to give you good returns in the future.

Be informed of the stock market positions on a regular basis if want to make a good investment decision while avoiding the investment loss.

Before investing it is important that you decide upon the type of stocks which can suit your investments and whether you have to make short term or long term investments. If you are looking for gaining returns for short term investments, day trading would the best idea to go for. Just by selection of the right stocks for investment, you can make good profits from your short term investment.

To trade comfortably in NSE, you should gather information on online trading which can be done from anywhere, any part of the world to buy as well as sell stocks online in the NSE market.


Therefore it is clear that with proper knowledge and little wits one can successfully invest in NSE. To know about the stock market investing tips provider in India, click here.

This article educates reader about NSE in India and tips for investing successfully in NSE.

Best Investment Options in India

Stock Market Investment in India

Best Investment Options in IndiaBeing one of the rapidly growing economies in Asia and the world, investors from all over the world should consider investing in the Indian stock market. If you want to participate in India’s stock market investment, you must trade at the NSE (National Stock Exchange) or BSE (Bombay Stock Exchange). The trading mechanism at the NSE and BSE is the same; it is done through a limit order book whereby the matching of orders is electronically done by a computer.

When/why should you invest in stock?

There are many questions from traders about when to invest in stock and why to invest in stocks. The answer to the question of when to invest in stock is now. The answer to the question why to invest in stock is because of the good returns.

Why invest in India stock market and any other?

The reason why you should choose the Indian stock market investment is that there are no specialists or market makers. The entire process of trading is driven by orders – meaning that the market orders which the investors place are automatically matched with the best possible orders of limit. In consequence, the sellers and buyers in the Indian stock market investment remain anonymous. Orders in the system of trading are placed through stock brokers. The stock brokers provide vital stock market tips for local and foreign investors in India. The institutional investors can invest through the DMA (Direct Market Access) option whereby they use terminals of trading (which are usually provided by the brokers) for direct placing of orders in the Indian stock market.

Futures and Options Trading

What is future & option trading? In simple words, a futures contract refers to one whereby one undertakes to take or make the delivery of a certain productat a future date at a price that is set out and determined at the present. In the formal futures trading in India, there are standardized agreements that specify the quantity, price, and time of delivery. In the past, futures trading was about agricultural products. These days, various products such as currencies, precious metals, and stock indices can be traded on options and futures. Options are similar to insurance; the buyer of the option pays premiums to the seller of options for the right of buying or selling of a futures contract at price that is specified. Like insurance, the buyer of options can choose to exercise or not to exercise his or her rights.

How the investment in futures and options can give good returns compare to other investments

There are two main reasons for the existence of the markets of options and futures in India, namely price discovery and risk transfer. The losses or gains in the trading of futures are dependent on changes in prices. After selling futures contracts, you will realize profits if there is a fall of prices. For a buyer of a futures contract, an increase in prices will lead to profit. To realize profit on trade in futures, you can buy low first and sell high later, or make a reversal of the order and sell at a high price and then buy at a low price.

Commodity Exchange

One of the vital stock market tips to all investors is that they should invest in commodities. Commodities are the best option for those investors who are interested in diversifying their portfolios of investment beyond real estate, bonds and shares. The commodities being talked about here are silver, gold, crude oil and even oilseeds in the market of futures.

How does commodity exchange trading work?

Will the prices of gold increase? Will the prices of crude oil decrease? Because of the prevailing drought, will the prices of soya beans increase? If you have reasonable grounds to believe that any or all these predications can turn true, and you are prepared to bet some money on them you should try doing so in the commodity futures market. This is how the commodity futures market works.

Why invest in commodities?

Compared to the stocks, commodities trading is cheaper because the margins are significantly lower as compared to stock futures. The brokerage is also lower in the commodity futures. Because of this reason, commodity exchange is the best choice for those investors who love speculating about the future happenings in the market.


There are various options of investments which offer different rates of return. There are various risks associated with such investments which you need to be aware of before you make any investment decision. Whether you are a beginner or novice trader, it is good to sign up for equity and commodity advisory services when to invest in stock and other vital stock market tips that will help you stay informed about the latest happenings in the market to make a wise investment decision

Brief about Stock Market Investment & Stock Trading

What is Stock Market?

Stock market is the place where company equities are traded across the board. Companies are listed with their shares to be traded among buyers and sellers. Before a couple of decades, stock market was place bound of buying and selling the script but now on the edge of internet evaluation, it has become so easy of online stock trading, resulting more people are taking interest in stock trading.

What is Stock Trading?

Stock trading is a skilled task and need in-depth knowledge and experience of company equities and share market process. Trading of stocks have become easy, though it needs good analysis power, vision and speculation mind to draw a future prospects of any company based on its situation today as of now. Good understanding, precautions and analysis can put your money in right equity investment that can fetch you benefits in short or long duration.

What is Stock Market Investment?

The stock market investment is based on the individual nature and risk appetizing capacity. If you are not ready to lose your money in short duration, you need to invest your money in safe investment options like mutual funds, some large cap stocks, bank fixed deposits and all. These are the secured options, which ensure to invest your money in safe instruments with low but secured returns. But if you dare to load more risk on your shoulders, there are chances to earn good returns in short duration. Daily script trading, future & option, commodity trading, small and midcap stocks, penny stocks are the options for those, who are ready to take risk of their money. There are chances, even to lose money where risk factor is high. But when the investment is done with deep calculations, it can fetch the huge opportunity to earn drastic money.

Thus, in share market it is known that more risk can fetch more money; no risk can give you less money. Here risk must be considered as a calculated risk or the growth investment portfolio offered by equity advisory services, where the fund managers have speculated the stock movements based on their skill and years of experience to fix the return by investing in equity market.

Multibagger Stock Tip – Cera Sanitaryware


Company Overview:

Cera Sanitaryware one of the leading business houses of India and it is the third largest company in the organized sector with over 20% market share. Cera has been steadfastly moving towards its mission of becoming a total bathroom solution company. It is the first Sanitaryware Company to use Natural gas and the company engaged into wide spectrum of activities related to manufacturing Ceramic Sanitaryware, import and export of various bathroom related products like Tiles, C.P Fittings etc.

It is the first Sanitaryware company to implement ISO 9002 and ISO 14001 certifications for Quality Management Systems and Environment-friendly Manufacturing systems.

Business Details:

Cera has been on the forefront of launching a versatile colour range and introducing the bath suite Concept. It also launched innovative designs and water-saving products. The twin-flush model launched in India by Cera for the first time, reduces the water needs of households considerably. WCs designed to flush in just 4 litres of water is another notable innovation by Cera. Its product range includes:

  • Vitreous China Sanitaryware
  • Faucet ware- C.P Fittings and Taps
  • Wellness products like Shower Panels, bathroom cubicles, bath tubs, whirlpools- Jacuzzi, Bath fittings
  • Allied products- PVC Cisterns & Seat Covers
  • Kitchen sinks and bathroom Mirrors

The Company Having a state of the art production facility at Kadi, in North Gujarat. To achieve growth in the rapidly changing retail market in the country, Cera, has launched its one of a kind Cera Style Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin, Hyderabad and Mumbai. Cera Style Studios will complement its existing network of 600 dealers and 5000 retailers. To increase penetration, along with Style Studio’s, Cera has launched several Cera Style Galleries across the country which are Exclusive Cera Retail Centre.


Besides having a very good presence in the domestic market they are presently exporting the products to as many as 20 different countries spread across in Canada, North America, Africa, Australia, New Zealand, and Middle East etc.

Future Projects & Expansion Plans:

Cera Sanitaryware is planning to invest Rs 140 crore in its manufacturing facility in Kadi in Mehsana district of Gujarat, to enhance capacity. As per the plan it will spend Rs 100 crore to increase production of range of wall and vitrified tiles from the present 2.7 million to 3 million pieces. The company currently has a production capacity of 2 million pieces per annum, which is already being expanded to 2.7 million pieces. The ongoing expansion is likely to be commercially commissioned by January 2013. Another Rs 40 crore for manufacturing faucets from 2,500 to 5,000 pieces per day at the facility. The company expects to add capacity to 3 million pieces per annum over the period of next one and a half year. The company has also forayed into manufacturing of tiles. In this regard, it has launched an array of elegant range of high-definition (HD) digital wall and digital polished glazed vitrified tiles with matching floor tiles. It is also offering the normal vitrified tiles with nano technology. With these new launches, Cera has laid the groundwork for a quantum leap in growth in the coming years and has reaffirmed the brand in the market. The company is expecting revenue of Rs.20 crore from tile business this year and Rs.60 crore next year. Cera, however, will not manufacture tiles but will outsource them from indigenous tile makers. With the compounded annual growth rate (CAGR) of 25 per cent over the past five years, the company is now targeting a turnover of Rs 500 crore for 2012-13.

Financial Performance:

Cera has registered sharp numbers for the quarter ending September 2012. The company has achieved yet again impressive growth with a figure of Rs. 111.38 Cr. being 52% smart increase in top line as against Rs.73.29 crores in the like quarter last year. Operating profit skyrocketed about 58% at Rs.18.43 crore Vis-a-Vis Rs.11.70 crores YoY. The increase in business was due to increased demand. Despite the market vagaries, the company has registered a 44 per cent rise in its profit after tax (PAT) at Rs 11.03 crore for the quarter ended 30 September, 2012 as compared with Rs.7.65 crores in Q2FY12. EPS stood at Rs.8.72 as against Rs.6.05 clocked in quarter ended September 2011. By way of a CAGR of 25 per cent over the last five years, the company is expecting to increase its turnover from Rs 319 crore in 2011-12 to nearly Rs 500 crore this fiscal. The company enjoy’s 75 percent share in Gujarat’s Sanitaryware market


Cera Sanitaryware Ltd. is trading at an attractive valuation at 11.84x and 10.21x of FY13EPS of Rs.31.92 and FY14EPS of Rs.37.02.

We Bet the Share to Grab at 375 for Target of 475. In a time frame of 9-12 Months.

Nifty Trading Tips & Foreign Institutional Investors Derivative Data – 30 October’2012

The Bse Index Shuts at 18636 up 11 points from its Previous Close or +0.06%. The Nse Index Shuts at 5666 up 2 Points from its Previous Close or +0.02%.

On End of Day Chart Nifty Still below weekly average and now Nifty Month average is at 5595 and then three months average at 5430. Indicators or still on Selling Side.

  • RBI macro view on Indian Economy was out today and the most important take away was, Monetary policy needs to be cautious in the interim, focusing on inflation while using the available space to support growth to the degree it can, It indicates interest rates are likely to go down but will it be tomorrow as Festival gift, obscurity will be determined by tomorrow 11 AM.

FII Derivative Data:

  • Foreign Institutional Investors sold 4589 Contracts of Index Future, worth 120 cores with net OI decreasing by 7175 contracts.
  • Nifty Future was up by 3 points and Open Interest in Index Futures decreased by 7175, so Foreign Institutional Investors again liquidated longs which were rollover from October series. Nifty formed a doji candle pattern which is signaling indecision with regards to the trend of Nifty ahead of tomorrow’s key event of RBI’s mid quarterly policy review.
  • Nifty Spot closed at 5666 after making a high of 5698 and low of 5645.Nifty spot again was unable to break 5725 and 5638 so still trading within the range of 5635-5725.Tomorrow event RBI can again push Nifty to higher end of range, Nifty is expected to make volatile moves 15 mins before the news come out
  • Resistance for Nifty has come up to 5698 and 5725 which needs to be watched closely ,Support now exists at 5651 and 5635 .Trend is Sell on Rise till 5725 is not broken on closing basis.
  • Nifty Future November Open Interest is at 1.78 cores with liquidation of 1.6lakh in OI, long liquidation in Nifty. Only concern is 40 points premium is Nifty Future which denotes extreme level of Bullishness in market participants so caution is advised in long positions.
  • Total F&O turnover was at 0.77 lakh Cores with total contract traded at 1.49 lakh, PCR at 0.89 and VIX at 15.12.Cash market Volume were low as compared to Friday suggesting lack of participation of investors/traders ahead of the key economic event.
  • 5900 Call is having highest Open Interest of 42 Lakhs with addition of 4.4 lakhs in OI, 5800 Call added 4.6 lakhs in OI with net OI at 38 Lakhs. 5400-6000 Call added 18.7 lakhs in OI
  • 5600 Put is having highest Open Interest of 44 lakhs so 5600 is strong base for Nifty from start of November series. 5400 PE again added 7 lakhs in OI, Thus 18 lakhs OI added in 2 days with average premium of Rs 16. FII were net buyers in Options worth 1172 cores and looking at data it suggests they have bought equal amount of Calls and Puts suggesting volatile session ahead 5400-6000 Put added 18 lakhs in OI. Rupee loses 52 paise to slip below 54-mark ahead of RBI meet.
  • Nifty Futures Trend Deciding level is 5677(For Intraday Traders), Trend Changer at 5716 Nifty (For Positional Traders).
  • 5 DMA at 5689
  • 20 DMA at 5695
  • 50 DMA at 5538
  • 200 DMA at 5272
  • 5 Days Relative Strengthen Index at 41 and 14 Days Relative Strengthen Index at 53 Indicates Nifty in Neutral Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5688 and above the level marks the track point at 5711 later zipper levels at 5755 marks.

Nifty Support at It has the First support close to the level 5644 and below the level marks the track point at 5622 later zipper levels at 5600 marks.

Nifty Future Momentum Call for 30 Oct’2012:

Buy above 5711 sl 5688 Tgt 5733-5755 {Or} Sell Below 5688 sl 5711 Tgt 5666-5644

Bank Nifty Future Momentum Call for 30 Oct’2012:

Buy Above 11622 sl 11577 Tgt 11666-11711 {Or} Sell Below 11533 sl 11577 Tgt 11488-11400

Share to Grab – Rural Electrification Corporation

Rural Electrification Corporation

Company Overview:

  • Rural Electrification Corporation Limited (REC) is a leading public Infrastructure Finance Company in India’s power sector. The company finances and promotes rural electrification projects across India, operating through a network of 13 Project Offices and 5 Zonal Offices, headquartered in New Delhi. The company provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers
  • REC is a Navratna Company functioning under the purview of the Ministry of Power – Government of India. The company is currently among the top 500 Global Financial Services brands by UK-based plc Brand Finance (Brand Finance @ Global Banking 500 for 2010). The company is also among the Forbes Global 2000 companies for 2010.

Business Operations:

  • REC’s business model spans across the value chain of power infrastructure financing including
  • Equipment finance,
  • Technical/ financial appraisal of project,
  • Project finance as well as short term or bridge loans for generation, intensive electrification, transmission, distribution, repair and maintenance,
  • Support functions like project monitoring, consultancy and advisory.
  • The company operates autonomously as a Central Public Sector Enterprise under the Ministry of Power, Government of India and also acts as nodal agency for expansive Government of India schemes for building electricity infrastructure.
  • Business operations in India are supported by a network of 19 offices headquartered in New Delhi.

Financial Performance:

  • REC had excellent results for Q1 FY13 with net profits up by 32% at Rs.880 crores. Net Interest Margin also saw a good improvement of 25% and now stand at 4.53. The cost of borrowing for REC was quite low at 8.1% since it raises about 80% of its borrowing from Tax free and Taxable bonds. The pace of disbursement was good with the Loan book going up by 25%.


  • REC finances all types of Power Generation projects including Thermal, Hydel, Renewable Energy, etc. without limit on size or location. The company aims to increase presence in emerging areas like decentralized distributed generation (DDG) projects, and new and renewable energy sources to reach remote and difficult terrains not connected by power grid network.
  • In Transmission & Distribution (T&D), REC is primarily engaged in ascertaining financial requirements of power utilities in the country in the T&D sector along with appraising T&D schemes for financing. REC has financed T&D schemes for system improvement, intensive electrification, pump-set energization and APDRP Programme. The company is also actively involved in physical as well as financial monitoring of T&D schemes.
  • REC also offers loan products for financing Renewable Energy projects. The company has tied up a line of credit for EUR 100 mn (approximately Rs. 6000 mn) with KfW under Indo-German Development Cooperation for financing renewable energy power projects at concessional rates of interest. Eligible projects include Solar, Wind, Small Hydro, Biomass Power, and Cogeneration Power & Hybrid Projects.

Asset Quality:

  • State Government PSU’s form 84% of the Loan book of REC, the gross NPA was at the low of 0.46%. Despite wide spread worries about the repayment from State Governments, the payments were received without any difficulty.


  • In terms of valuation, the stock trades at a low PE of 7 on FY12 earnings and 6.1 on FY13 earnings based on an EPS of Rs.35 for FY13
  • Q2 Results on Nov 02, 2012
    • We Bet The Share to Grab at 215 for Target 270 In a Time Frame of 6-9 Months

Multibagger Stock Tip – Tube Investment of India Ltd.


  • Tube Investment of India Ltd. Belongs to Murugappa Group is a Chennai based Indian Conglomerate. Being a market leader in several of them it has a total of 28 businesses and has manufacturing facilities spread across 13 states in India.

It Has Classified in Four Business It Shows:

  • One is the engineering business where it produces precision tubes, which used in automotive industry and general engineering industry.
  • The second business is cycle business where company has acquired 30-31% of market share. Last year it sold about 4.5 million cycles.
  • Third is a metal formed product business wherein the company manufactures automotive chains, industrial chains and car doorframes. In the car doorframes business the company is a market leader with a market share of almost 60% and supplies to almost all the major passenger car manufacturers.
  • The fourth is a finance business – it holds 54.5% of equity stake in its subsidiary Cholamandalam Investment, the company does vehicle financing, home loans and as well as gold loan business. We can expect considerable increase in bottom-line due to Cholamandalam Investments.
  • Recently company has undertaken a capex of Rs 5 billion whose impact we will witness soon in upcoming years. Expectations Company has showed consistent growth in NPM & bottom-line. EPS has grown from 3.06 to 9.7 over five year’s period nearly 316%. For 2014-15, we are expecting the EPS to be around 19-20.
  • It Shows Expanding Triangle pattern at 165-170 levels. We Bet the Share Grab at 173 for Target 195 In Duration of 6-8 Months Target 225-250 For Long Time Traders in Period 1-2 Years.