Free stock tips 24.09.2010

Ayodhya verdict by Allahabad High court will be delivered on 28.9.2010 instead of 24.09.2010. So market will not be affected much till such time.

Reliance industries.(Rs.998) Target Rs.1050/-
The rights issue in East india hotels will help reliance to reduce its purchase value in EIH to almost market price of EIH. Entering in hotel business and expanding it globally is the vision of reliance thus expanding its growth laterally in many sectors to offset any weakness in any one sector. This is a good management practice and investors will be benefited by it.
Expected good refining margins. Expected good half yearly earnings.
Crude price may increase at any time. It is better than ONGC as Govt may allow ONGC to make loss in order to gain votes. Due to Shale gas companies purchase will help reliance to achieve very good growth path. In India, it will be leader in shale gas contracts as it is the one which joined bandwagon of shale gas companies recently compared to others who are just thinking to join. So invest and wait for just 6 months to get results.

Cheap Energy stock. Don't miss to purchase it now thus not repenting later.
Really reliance is cheap at this price and Mukesh Ambani is just like his father to preserve investors networth. It is a suppressed stock. All finance consultants agree on this.If gas price increase, it will shoot up.

Cairn india: Open offer will be increased soon to rs.405/- to induce all miniority share holders. So buy.

Bank, reality and software stocks- sell.
Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 5900 to 6000 as domestic institutions and retail investors will step in and replace FII soon. Bringing back ELSS to all people in savings plan will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI. Finance ministry should look into it.

For reality also, removal of benefit of income tax concession for repayment of principal from 80 C negatived the reality stocks. This is not a good step in Direct tax code to be implemented soon. DTC meticulously planned to remove this benefit from tax payers hand and plan to increase the reveneue of Govt. But it dented the real income in the hands of salaried people and also dent on reality stocks as demand for houses will fall as there is no tax benefit from DTC implement date. Govt should re-consider and reinstate the benefit so that reality sector will shine. Till such time, there will not be much demand for bank loans and new flats etc. So profitability of banks and reality sectors will suffer. People should object to this removal of benefit for repayment of principal amount of housing loans in income tax.

Steel and cement stocks - Buy
There is talk of another price rise by Jindal steel.All others will follow the same. Buy steel stocks including visa steel. Bulk investors can study visa steel and plan to appoint director in this growing steel gem which is growing just like tata steel.

"Visa steel"

Mr.Vishambar Saran, ex- tata steel officer, now Chairman of Visa steel has already applied for mining lease in Orissa and Madhya pradesh. When new mining policy is announced, this company will get it soon. Present price is Rs.38.5 Target Rs.50 within 6 months.
The promtors hold 71% and floating stock is only 29%. If any company corners this 25%, it can have the capacity to negotiate for directorship and also participate in networth of the company. The stock price is not in consonance with real networth of the company. Promoters are managing the share price low so that no one can dare to take over. But debts will compel them to come out of shell and when they sell the stake,then real value will come out for open offer by new partner.

EIH: Buy Rs.140/-
News repot from economic times:
" EIH, owners of the Oberoi and the Trident hotel chains, will raise up to Rs 1,300 crore by selling rights shares, the company said on Thursday without disclosing the end-use of the proceeds.

In a board meeting in Bangalore, the first after Reliance Industries bought 14.8% stake in EIH last month, the company has decided the size of the rights offer. It has also formed a committee to determine the price and ratio of the offer. "
So soon open offer will come out and benefit investors. So cash in.

IFCI: Buy Rs.62.20 Target short term rs.65
Govt has appointed advisor for IFCI who will submit report before dec2010.


Currency- Buy US $ Rs.45.60

Nifty Put 6000 Buy