TECHNICAL ANALYSIS On UNITED SPIRITS LTD (MCDOWELL & C) And Lupin LTD

United Spirits (USL) is the largest spirits company in India and a flagship entity of $2 billion UB group. It manufactures wide range of whisky, vodka, rum and other spirits. United Spirits is among the top three spirits companies in the world. It has a presence in over 59 countries. USL's technical centre is located in Bangalore, which develops new products, conducts research and development, flavor testing and quality management. It has 62 manufacturing units. The company has received recognition for its quality products from independent jury such as International Wine & Spirits Competition (UK), International Spirits Challenge (UK), World Beverage Competition (US), Monde Quality Institute (Belgium) and Mundusvini (Germany). India's changing demography presents a significant opportunity for United Spirits to tap especially in the prestige segment. The company currently operates at 53 percent share-points in the segment. McDowell's No. 1 Platinum was launched in March 2010, is available in packs of 750 ml, 375 ml and 180 ml and is a part of Rs 8,300 crore McDowell's franchise.

On technical perspective, stock currently shows significant correction from the highs of Rs 1688 however we believe it's a temporary one and we might see some buying opportunities in the near term. Nevertheless its technical indicators i.e. RSI and MACD also revealed some technical pull back in near term.

Lupin is a transnational company engaged in development of APIs, generic and branded formulations. It is the largest manufacturer of Tuberculosis drugs in the world. It has onshore and offshore presence of its products in 70 countries. Its manufacturing unit is located in Goa, Tarapur, Ankleshwar, Jammu, Mandideep, Indore, Aurangabad and Kyowa in Japan. The manufacturing facilities of the company are approved by various international regulatory agencies like US FDA, UK MHRA, TGA Australia, WHO, and MCC South Africa. We expect Lupin to start API supply to Salix after a couple of years (~ in FY2013). The scale up in the deal clearly outlines the high probability of success for the drug to commercialise. Further, an approval for new indications would lead to higher API supplies and royalties in future. At the current market price of Rs440, the stock trades at 18.3x FY2012E fully diluted earnings and at 15.8x FY2013E fully diluted earnings. We maintain our Buy recommendation on the stock with a price target of Rs480.

On technical viewpoint, stock has shown upward bias after having consolidation around Rs 420. In close proximity we believe stock is well poised to move in upward direction. Moreover it's RSI and other technical indicators stands in the positive territory where possibility of turnaround couldn't be rule out. Hence investors are advised to BUY this stock for a price target of Rs 470-480 in near term.

Read more about  Mansukh monthly magazine report on Indian Stock Market

Mansukh brings to you the most updated monthly magazine which will not only help you in understanding online share market but will also help you do your own Analysis conveniently and smartly. Mansukh is providing derivative trading and Technical Analysis for last 15 years. For all the latest happening of the market please visit http://moneysukh.com

Indian Equity Indices - From The Desk Of Research

Indian equity indices went through a turbulent week as they failed to negotiate a close above the neutral line for even a single session and eventually snapped the week with a cut of over two percent. The week largely remained characterized by choppiness because investors were reluctant to pile up positions and indulged largely in stock specific activities as corporate India continued to divulge their fourth quarterly report card. Volatility gradually accelerated session after session as the April series Futures and Options settlement neared while quarterly earnings' announcements by RIL,Wipro,Bank of Baroda, Ambuja Cement,

Crompton Greaves, TVS Motors were punished badly as they remained below Street's expectations.On one hand spiraling international crude oil prices become the headache of policymakers while on the other, worries over global economic recovery loomed large, given the fact that world's biggest economy continues to grow at a tepid pace. The April series F&O settlement day turned out to be another pathetic trading session for the Indian stock markets as the selling pressure gathered greater momentum after government released the disappointing food inflation numbers which stayed absolutely flat at 8.76% on annual basis during week-ended April 16 compared with 8.74% recorded in the previous week. Rate sensitive counters like Real Estate and Bankex witnessed relentless selling pressure through the week ahead of the RBI's annual monetary policy review meet on May 3rd where it is expected to bite the bullet and hike rates by 50 bps to cool the spiraling inflation which has vehemently hovered at uncomfortable levels on the back of crude oil prices which have skyrocketed by over 50% in last six months. The Foreign Institutional Investors on the other hand ploughed back their money from the local markets to the extent of Rs 2,703 crore in the week on expectations that deteriorating domestic macro headwinds will have adverse impacts on the companies' earnings thereby reducing the returns on investment. The Bombay Stock Exchange (BSE) Sensex lost 466.27 points or 2.38% to 19,135.96 during the week ended April 29, 2011. The BSE Mid-cap index declined by 141.07 points or 1.95% to 7,094.23 and the Small-cap index shed 163.26 points or 1.84% to 8,715.31. On the sectoral front, Reality lost 201.17 points or 8.45% to 2180.10,

Capital Goods (CG) shed 607.16 points or 4.45% to 13,036.91, Bankex declined by 468.163 points or 3.46% to 13545.13, Oil & Gas tumbled by 301 points or 2.92% to 10,008.27 and Metal index down by 467.98 points or 2.81% to 16,190.59,were the top losers on the BSE, while Health Care(HC) adding 74.77 points or 1.21% to 6232.55 and FMCG advanced 24.78 points or 0.66% to 3755.16 were the only gainers on the sectoral space. The S&P CNX Nifty trimmed 135.20 points or 2.30% to 5750. On the National Stock Exchange (NSE), Bank Nifty lost 3.46% to 11,483.75, CNX mid-cap shed 1.36% to 8,200.95, CNX Nifty Junior declined by 1.35% to 11,376.70 and CNX IT tumbled by 0.92% to 6718.35. Conclusively we expect slightly range bound scenario between 5555-5960 though sentiments remain subdued for the upcoming sessions. Any closing above this 5960 with substantial volumes for at least 2 consecutive days may generate another 2-3% return and we might see 6070-6080 in the short term.HAPPY TRADING......

Read more about  Stock Market Monthly Report By Mansukh

Post Budget Analysis Of 2011 - FROM THE DESK OF RESEARCH

It turned out to be a roller-coaster ride for the frontline indices which zoomed over three percent in today's session but finished the day with moderate gains of around half a percent. The Union Budget 2011-12 had a surfeit of positives including retention of excise duty and service tax at 10%, a lower than forecasted fiscal deficit target of 4.6% for FY12, more spending power to consumers through an increase in income tax exemption limit, and permission for foreign investors to invest in Indian mutual funds. The positives led to around a 600 point short covering rally but the jubilation met with strong resistance at crucial 18,300 levels which eventually resulted Uturn for the 30 share benchmark. Weak start for the European counterparts along with towering crude oil prices over fears of supply disruption in the wake of the political turmoil in West Asia, limited the upside for the indices.

The NSE's 50-share broadly followed index, Nifty climbed around half a percent  a n d settled below the c r uc i a l  5 , 3 5 0 level while the Bombay Stock Exchange's Sensitive Index, Sensex managed to hold on to the psychological 17,800 mark. The broader markets continued their run of inderperformance against their larger peers for yet another day as the BSE's midcap and smallcap indices went home with moderate gains of 0.31% and 0.36% respectively. The FMCG counter on the BSE sectoral space settled as the top gainer as it rallied 4.47% underpinned by ITC, the FMCG major, which skyrocketed 8.23% in the absence of any excise duty hike on cigarettes and other tobacco products.

The Public sector Undertaking (PSU) pocket too witnessed huge buying interests as it surged 2% on the back of 12.42% spurt in Coal India after the company opined that it would get $1.4 billion in additional revenue and realizations will go up 12.5% to 13% in the next fiscal year as the firm hiked prices by 30%. The healthcare pack on the other hand remained the only laggard in the space as it settled with loss of 0.04% after stocks of companies like Glenmark Pharmaceuticals and Ranbaxy plummeted 10.20% and 3.59% respectively. Index heavyweight Reliance Industries failed to make its presence felt as it settled with marginally losses on the BSE after erasing all early gains due to profit-booking amid a volatile broader market. While the tension in Middle East was still prevailing, the markets were trapped in the double whammy of F&O series expiry and there were hardly any trigger on the domestic front that could help the markets.

Read more about Equity research monthly report

Online Share Trading System

Today we possess scores of civilians from different professions whom swear via online trading. Not alone is online share trading a great distance towards incur a number of additions income, but a number of civilians also get a thrill from endeavoring towards speculate the stock market.

For those of you whom are not familiar with the online share trading procedure, we shall explain it as well as grant you a number of tips onto how you can activate trading online.

How to learn share trading online:

The former pace towards being successful at online share trading is towards spend moment researching the market. Any corporation that you get embroiled within lacks experience of your market and what needs towards be done within order towards succeed within it, online share trading is none different, you possess towards invest within your education, whether this processes investing moment, finance or both. Constantly be knowledge and evolving and be rehearsed towards adapt as situations change.

Develop a System of Online Share Trading

There is none ideal system that always victories, but every successful online share traders possess a number of system that they consume towards determine whether towards invest within certain shares or not and when towards sell. You should profession onto designing a system that works for you and stick towards it even whether there are occasionally failures. The system you grow should predetermined limits of when you shall cut your defeats and how much risk and loss you are rehearsed towards agree ahead of marketing out.

Being successful at online share trading processes that you should constantly be knowledge and evolving and investing within your education and personal development. You should also hear towards be patient and see the big film so that specified defeats do not give away you making a long term profit and so that you alone agree the greatest trades. Develop a system that determines when you buy and sell and be disciplined within holding towards this system.

What is online share trading all about?

In the old days, share trading would occur at the stock exchange. It embroiled the exchange of share licenses and lots of paperwork. However, with the dematerialization of shares, the shares are already held within electronic form.  Today it's possible towards sell within shares without having towards go towards the stock markets. One can sell within shares – that is, site an order towards buy or sell shares – either across a dealer or they can do it themselves across online share trading portals.

The advantage of online share trading is that you need not handle papers or licenses as the transaction occurs online and the shares are held electronically. You can sell shares from anywhere and at anytime. All you need to do is towards site an order towards buy or sell shares at a particular value.

What are the prerequisites for online share trading?

In order towards sell within shares online, you need towards sign up with a dealer whom bids an online trading platform. You shall possess towards design a trading and Demat fund and relate it towards a bank account. There are a number of musicians whom bid everybody these below one roof. To sell online, you shall need an internet connection.

What are the benefits of online share trading?

• The simplicity of buying and marketing shares is the extreme benefit of online trading. You can sell from anywhere. All you need is an internet connection.
• The online brokerage shall produce an announcement for everybody your transactions providing you a confirmation of your transactions.
• The dividends and bonus shares declared get credited towards your fund directly.
• You can activate trading with low sizes of money.

What are the dos and don'ts of online share trading?

• Have a trading strategy within mind and Endeavour towards diversify your investments as far as possible.
• Do not rob rash decisions onto stocks. Analyze the companies you mean towards invest within and audit their beyond tail record.
• Stay updated onto the stocks you hold within your portfolio.