Monday, July 12, 2010

DAILY TRADING REPORT - 12.07.10 (Monday)

Nifty Futures 10.30AM Call

10.30AM: Nifty Futures opened today at 5369 against its previous close of 5354, and is currently trading at 5396. It has so far recorded a HIGH of 5399 & a LOW of 5369. Asian cues are positive, US futures are in red, and European markets may open little changed today. The trading range for NF today is likely to be 5369-5410 in a rangebound trade.

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Nifty Intraday Trade

10.28AM: Sold nifty at 5398. SL 5407.

11.05AM: Booked out at 5373. Gain 25 points.

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Added to Normal Portfolio

08.07.10: 100 Hindustan Composites @ 429.

12.07.10: 500 Trend Electronics @ 47.75.

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BUY for a target of 1000!!!

Hindustan Composites (formerly known as Hind Ferrado) has a very low capital base of 5.50cr, and with a 52 weeks low of 156 & high of 480 is all set to touch a 4-figure mark within 6-9 months. The normal operations of the company may fetch a net profit of only 1 cr on a total turnover of 80 cr, giving EPS of Rs 2. But the company has received in last quarter of 2009/10 a whopping land sale proceeds of 566 cr. Net of income tax, the company is holding around 480cr which is almost 90 times its share capital. The interest income alone on this sum will give the share an EPS of 80-90 per share. A sure bet for 4-figure mark in 6-9 months. BUY at least 100 at CMP, add 100 more if it falls below 380, hold the investment TIGHT till 1000 mark. If the management is able to utilise this amount in a highly profitable project like real estate development, the profits could be still higher.

FLOATING STOCK of the share is very less. I could buy 100 shares in 3 days with an average rate of Rs 429 by placing my small buy orders on top of the bid list every day. Turnover is also very less because of low floating stock.

BUY at CMP (429), hold it tight, and get out only above 800/1000.

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Nifty SMS Trade

1.49PM: Sold nifty at 5387. Target 5340. SL 5401.

3.14PM: Booked out at 5377. Gain 10 points.

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Market Close Report

3.30PM: Nifty futures closed the day at 5382, up 28 points, after touching a low of 5355 & a high of 5399.

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