Technical calls 26 June 2009

4272-4246 On Thursday 4272-4246 will be buy area.
Strong Markets will not break 4262.
4330-4379-4517-4437-4552-4604-4694-4913-5065-5300. Above 4272 Nifty could test 4306 (Wednesday's high).Further it could open for 4330-4379-4517-4437-4552-4604-4694-4913-5065-5300.
4194-4090-3995-3737 Nifty has support at 4218 (Wednesday's low).Below it could open 4194-4090-3995-3737


14374-14292 On Thursday 14374-14292 will be buy area.
Strong markets will not break 14343.
14636-14786-15101-15155-15292-15600-16196-16678-16951. Above 14374 Sensex could test 14480 (Wednesday's high). Further it could open for 14636-14786-15101-15155-15292-15600-16196-16678-16951.
14162-14075. Sensex has support at 14207 (Wednesday's low). Below that we open for 14162-14075.

Technical Calls 25 June 2009

Nifty Combincation call n Put Buy 4300 Call @ 188 , 4200 Put @ 166--------- hold till 7th July
European markets were subdued in today as investors turned cautious after the US Federal Reserve reiterated concerns over the economic outlook. Key benchmark indices in UK, Germany and France were down by between 0.05% and 0.65%.
U.K. FTSE 100 index declined 0.10% to 4,275.91
German DAX 30 index lost 0.6% to 4,804.31
French CAC-40 index fell 0.01% to 4,275.91
Unitech, ICICI Bank, HDFC gained while Tata Motors, M&M, ONGC, Tata Steel, Maruti slipped in a volatile market. Mid and small caps bettered broader indices
Primary articles group was up 0.1% while manufacturing product was up 1% on a week on week basis. Fuel group was up 0.4%.
SUDDEN MOVE CAN COME IN EDUCOMP ABOVE 3550 MOVE OF 200- 300 RS STOP LOSS 3490
OUR TODAYS BUY CALL OF TATA MOTORS AT 355 NOW 343. STOP LOSS TRIGGERED. EXIT POSITION
505 ABOVE BUY AURO BINDU OPENS Tgt 600 STOP LOSS 477
64 ABOVE BUY MERCATOR 526235 TARGET 69-75 STOP LOSS 58.5 OR 54
139 ABOVE BUY IDFC STOP LOSS 127 TARGET INV STOP LOSS 115 TARGET 190
BUY IDBI BANK (BSECODE 500116) AT 115 FOR TARGET 137, STOP LOSS 98. VENTURA
282 ABOVE BUY NAV BHARAT 513023 TARGET 295-307-324 STOP LOSS 268
153 STOP LOSS BUY ESSAROIL 500134 TARGET 178-184
BUY TATAMOTORS (BSE CODE 500570) AT 355 FOR TARGET 377, STOP LOSS 343.VENTURA
311 ABOVE BUY BGR ENERGY 532930 TARGET 322-333-351 STOP LOSSS 284
373 STOP LOSS BUY EVERON 532876 ABOVE 407 FOR 432-451-477 TARGET
98 STOP LOSS BUY IDBI 500116 ABOVE 115 TARGET 137

4220-4184 On Wednesday 4220-4184 will be buy area.
Strong Markets will not break 4206.
4287-4379-4437-4552-4604-4694-4913-5065-5300. Above 4220 Nifty could test 4267 (Tuesday's high).Further it could open for 4287-4379-4437-4552-4604-4694-4913-5065-5300.
4090-3995-3737. Nifty has support at 4146 (Tuesday's low).Below it could open 4090-3995-3737.

14248-14135 On Wednesday 14248-14135 will be buy area.
Strong markets will not break 14469.
14636-14786-15101-15155-15292-15600-16196-16678-16951. Above 14248 Sensex could test 14394 (Tuesday's high). Further it could open for 14636-14786-15101-15155-15292-15600-16196-16678-16951.
13780-13518. Sensex has support at 14016 (Tuesday's low). Below that we open for 13780-13518.

Technical calls 24 June 2009

BUY ICSA 531524 AT 169 TARGET 176-183-194 Stoploss 155
BUY KALPATRU---522287---ABOVE 746 TARGET 790 STOP LOSSS 720
122 STOP LOSS BUY CORE 512199 ABOVE 125 TARGET 137
149 STOP LOSS BUY APTECH 532475 ABOVE 157 TARGET 171-177-185
90 ABOVE BUY UTV 532619 TARGET 402-416-439 STOP LOSSS 3703200 STOP LOSS BUY CRISIL 500092 ABOVE 3375 TARGET 3535-3675----4000
290 STOP LOSSS BUY GLOBAL 500160 ABOVE 310 TARGET 360
149 STOP LOSS BUY APTECH 532475 ABOVE 157 TARGET 171-177-185
310 IS BGR RESULTS DAY HIGH CLEAR BUY ABOVE THAT TARGET 323-333---350 STOP LOSS TODAYS DAY AVG
322 ABOVE BUY AREVA 522275 TARGET 333----343- 358 STOP LOSSS 310
STOP LOSS 575 BUY LIC AT 610 TARGET 750

14423-14542 On Tuesday 14423-14542 will be sell area.
Weak markets will not cross 14469.
14737-14894-15014-15155-15292-15600-16196-16678-16951.Above 14542 Sensex could test 14668(Monday's high). Further it could open for 14737-14894-15014-15155-15292-15600-16196-16678-16951.
14168-14075 Sensex has support at 14269 (Monday's low). Below that we open for 14168-14075

4271-4310 On Tuesday 4271-4310 will be sell area.
Weak Markets will not cross 4286.
4379-4437-4552-4604-4694-4913-5065-5300. Above 4310 Nifty could test 4350 (Monday's high).Further it could open for 4379-4437-4552-4604-4694-4913-5065-5300.
4155-4280-4090-3995-3737 § Nifty has support at 4222 (Monday's low).Below it could open 4155-4280-4090-3995-3737

Technical Calls 23 June 2009

711-722 STOP LOSS BUY ACC AT 740 TARGET 770-785-808
880 ABOVE BUY ABBAN 523204 TARGET 912-940-1010 STOP LOSSS 855
190 STOP LOSS BUY KALINDI RAIL AT 202 TARGET 237
125 STOP LOSS BUY MOTILALAL 532892 AT 135 TARGET 148-155-167
Bharat Gala: 2350 ABOVE BUY HDFC 500010 TARGET 2450--2480 STOP LOSS 2280
893 ABOVE BUY RIL CAP TARGET 930 STOP LOSSS 873
330 STOP LOSS BUY NMDC 526371 AT 347 TARGET 379-393---416
RNRL 532709 BUY WITH 76 STOP LOSS AT 80-82 AREA FOR TARGET 94-97-103
1900 STOP LOSS BUY RIL ABOVE 1935 TARGET 2080

14413-14299 On Monday 14413-14299 will be buy area.
Strong markets will not break 14369.
14737-14894-15014-15155-15292-15600-16196-16678-16951. Above 14413 Sensex could test 14559 (Friday's high). Further it could open for 14737-14894-15014-15155-15292-15600-16196-16678-16951.
14168-14075 Sensex has support at 14179 (Friday's low). Below that we open for 14168-14075 .

4279-4244 On Monday 4279-4244 will be buy area.
Strong markets will not break 4266.
4379-4437-4552-4604-4694-4913-5065-5300. Above 4279 Nifty could test 4324 (Friday's high).Further it could open for 4379-4437-4552-4604-4694-4913-5065-5300.
4155-4280-4090-3995-3737 Nifty has support at 4206 (Friday's low).Below it could open 4155-4280-4090-3995-3737

Market Commentary for the week ended June 19, 2009

The first installment of advance taxes offered a mixed picture. Corporate are required to pay 15% of the total anticipated profits for the entire year as first installment The overall payments structure was flat with all sector contributing on the fringes except the banking sector. At every level keep on accumulating the equity shares of banking companies especially the PSU banks.

Weekly Pointer 22nd June 2009

Technical Calls 22 june 2009

120 ABOVE BUY DABUR 500096 TARGET 146 STOP LOSS 112-105
AVOID SHORTS IN MKTS FOR TIME BEING

610 STOP LOSS BUY STERLITE ABV 630 TARGET 670

2920 STOP LOSS--ABOVE 3155 EDUCOMP IF TARDES CROSOSO RECENT HIGH 3250 OVER ALL TARGET 3800

82 ABOVE BUY GMDC 532181 TARGET 92-100 STOP LOSS 76

14413-14299 On Monday 14413-14299 will be buy area.
Strong markets will not break 14369.
14737-14894-15014-15155-15292-15600-16196-16678-16951. § Above 14413 Sensex could test 14559 (Friday's high). Further it could open for 14737-14894-15014-15155-15292-15600-16196-16678-16951.

14168-14075 Sensex has support at 14179 (Friday's low). Below that we open for 14168-14075 .


4279-4244 On Monday 4279-4244 will be buy area.
Strong markets will not break 4266.
4379-4437-4552-4604-4694-4913-5065-5300. Above 4279 Nifty could test 4324 (Friday's high).Further it could open for 4379-4437-4552-4604-4694-4913-5065-5300.

Techinical Calls 19th June 2009

hi!! don't hold our morning call ( Nifty 4300Call
Nifty 4300Put ) coming days premium will come down , because of timevalue. So we close the position @ Rs 1000 profit.

our combination call going in profit side , calculate now 50+ 132 = 182 our investment avg price 176 so now profit = Rs6 wait till 3:15 if profit comes Rs 20 we will close the position
2005 STOP LOSS BUY RELIANCE 500325 AT ABOVE 2055 TARGTET 2130-2175-2210
BUY TCS ABOVE 395 TARGET 475 STOP LOSS 370
2005 STOP LOSS BUY RELIANCE 500325 AT ABOVE 2055 TARGTET 2130-2175-2210
794 BELWO SELL BAHRATI TELE STOP LOSSS 813 TARGET 745
2250 BELWO HDFC OPENS 2202-2150---2122-2070 STOP LOSS 2278 OR 2298
BUY TCS ABOVE 395 TARGET 475 STOP LOSS 370
794 BELWO SELL BAHRATI TELE STOP LOSSS 813 TARGET 745
2250 BELWO HDFC OPENS 2202-2150---2122-2070 STOP LOSS 2278 OR 2298
Buy Combination (call /put) Nifty4300 Call @ 87 and Nifty4300Put @89 wait upto Expirty ----------Required amount for this call (8800 for call & put per lot) code call 41352 , put 41353
Buy Combination (call /put) Nifty4300 Call @ 87 and Nifty4300Put @89 wait upto Expirty ----------Required amount for this call (8800 for call & put per lot) code call 41352 , put 41353
305 OR 311 STOP LOSSS BUY BOM DYENG ABOVE 323 TARGET 350-364-385
280-295 STOP LOSS BUY CORP BANK ABOVE 325 TARGET 400--420
794 BELWO SELL BAHRATI TELE STOP LOSSS 813 TARGET 745
Results Today: ABG Shipyard, Berger paints, DCB, Emkay Global, Four Soft, Ion Exchange, Man Industries, Marico & Royal Orchid Hotels
794 BELOW SELL BAHRATI TELE STOP LOSSS 813 TARGET 745
BAJAJ HIND (500032) CMP (Rs 202;) Sell for target of 182 with stop loss of 214.

4412-4473 On Thursday 4412-4473 will be sell area.
Weak markets will not cross 4435
4552-4604-4694-4913-5065-5300. Above 4473 Nifty could test 4517 (Wednesday's high).Further it could open for 4552-4604-4694-4913-5065-5300.
4155-4280-4090-3995-3737 Nifty has support at 4333(Wednesday's low).Below it could open 4155-4280-4090-3995-3737

14955-14841 On Thursday 14955-14841 will be sell area.
Weak markets will not cross 14735
14884-15014-15111-15292-15600-16196-16678-16951 Sensex could test 14995 (Wednesday's high). Further it could open for 14884-15014-15111-15292-15600-16196-16678-16951
14168-14075 Sensex has support at 14447 (Wednesday's low). Below that we open for 14168-14075.

Technical Calls 18th june 2009

SENSEX HAS STARTED FORMING LOWER TOP. YESTERDAY IT HAS BROKEN IT'S PREVIOUS BOTTOM OF 14536. SO IT MAY START FORMING LOWER TOP & LOWER BOTTOM FORMATION SO PER MY VIEW WE ARE ENTERING INTO CORRECTION MODE. FROM 8047 TO 15600..... 38% 12730 --- 50% 11823 & 62% IS 10917. (PLS TAKE CARE OF YOUR LONG POSITOIN & IF U R BULLISH PLS FOLLOW STOPLOSS)
SENSEX HAS STARTED FORMING LOWER TOP. YESTERDAY IT HAS BROKEN IT'S PREVIOUS BOTTOM OF 14536. SO IT MAY START FORMING LOWER TOP & LOWER BOTTOM
HDFC and HDFC Bank are set to reduce interest rates on term deposits by upto 25 basis points.
Dow-7, Nasdaq+12, Nikkei-177.
Yday FIIs-364cr in Cash, -1299cr in FNO. DIIs+569cr in Cash.

GRASIM (500300) CMP (Rs 2405;) Buy for target of 2611 with stop loss of 2321.

14868-14748 On Wednesday 14868-14748 will act as buy area.
Strong markets will not break 14822
15111-15292-15600-16196-16678-16951. Above 14868 Sensex could test 15022 (Tuesday's high). Further it could open for 15111-15292-15600-16196-16678-16951.
14549-14168 Sensex has support at 14621 (Tuesday's low). Below that we open for 14549-14168

4487-4450 On Wednesday 4487-4450 will act as buy area.
Strong markets will not break 4473.
4552-4604-4694-4913-5065-5300. Above 4487 Nifty could test 4536 ( Tuesday's high).Further it could open for 4552-4604-4694-4913-5065-5300.
4365-4155-4090 -3995-3737 Nifty has support at 4411 (Tuesday's low).Below it could open 4365-4155-4090-3995-3737

Technical Calls 17th June 2009

2110 BELWO RIL OPENS 2015 STOP LOSS 2130 OR 2145
1080 BELWO IF ONGC TARDES OPENS FOR 100 RS FALL STOP L.OSSS 1111
605 STOP LOSS BUY JAIN IRRIGATION 500219 ABOVE 670 TARGET 900
BUY KALPATRU POWER 522287 ABOVE 735 TARGET 770---800 STOP LOSSS 710
1700 ABOVE BUY MONSANTO 524084 TARGET 1780---1840---1900 STOP LOSS 1620
BUY JAYSHREE TEA 509715 ABOVE 192 TARGET 300 STOP LOSS NEAREST 174 FAR 156
75 NEAR STOP LOSS 67 FAR STOP LOSS BUY HARRISON MALYALAM 500467 AT 85 TARGET 120
CONFIDENCE IN TECHNICALKS CONFIDENCE IN CHARTS THIS IS 150 RS STOCK AVAILABLE AT 100 , GDL
BUY GATEWAY DISTRIPARK (BSECODE 532622) AT 103 FOR TARGET 150, STOP LOSS 91.
BUY BANK OF RAJASTHAN (BSECODE 500019) AT 63.5 FOR TARGET 77, STOP LOSS 54. VENTURA
BUY GATEWAY DISTRIPARK (BSECODE 532622) AT 103 FOR TARGET 150, STOP LOSS 91. VENTURA
4487-4450 PALAT LEVELS .BLW 4450 BUY LEVLS 4390-4242-4280.WEAK BLW 4280.ABV 4545 OPENS 4553-4605 SELL LEVELS .SAFE ABV 4605
270 ABOVE BUY GE SHIPP 500620 TARGET 278-285-296 STOP LOSSS 258

Technical Calls 16th June 2009

IF DLF TRADES ABOVE 350 OPENS FOR 374-384-395 STOP LOSSS 340
735 ABOVE BUY AXIS BANK TARGET 763-794 STOP LOSSS 712
428-437-458 CORRECTIVES CENTURY STOP LOSSS 410 CMP 420
144 STOP LOSS BUY GMR INFRA 532754 TARGET 158-163-170
Ansal Properties & Infrastructure Ltd is planning to raise up to Rs 1,500 cr.through QIP route.
BUY DLF AT 350 FOR TARGET 374-384-395, STOP LOSS 340
82 STOP LOSS BUY J P HYDRO ABOVE 84 TARGET 89-92-96
380 STOP LOSS BUY ADLAB ABOVE 394 TARGET 408-418-435
685 STOP LOSS BUY TECH MAHINDTA AT 705 TARGET 746-768-802
138 ABOVE OPENS 145----150 ROLTA STOP LOSS 133
133 STOP LOSS BUY CORE PROJECT 512199 ABOVE 138 TARGET 144-148-154

SIEMENS (500550) CMP (Rs 480;) CMP Sell for target of 439 with stop loss of 493.

15112-15350 § On Tuesday 15112-15350 will act as sell area.
Weak markets will not cross 15204
15600-16196-16678-16951 § Sensex could test 15261 (Monday's high). Further it could open for 15600-16196-16678-16951

14768-14549-14168 § Sensex has support at 14807 (Monday's low). Below that we open for 14768-14549-14168

4484-4506-4542 sell levels slight strength abv 4542 opens 4552-4605.safe above 4605 low made is 4411.Weak mkts dnt cross 4484.supp 4390

Market Commentary for the week ended June 12, 2009

The trends emerging from equity markets in the last one week have been one of strength, hope and conviction. The markets invariably find support at lower levels and not only that, the rally upwards seem to be more in momentum, thus we are finding markets creating higher tops and higher bottoms. Thus this market has changed its character in the last 6 weeks to become a “BUY on DIPS” rather than “SELL in RALLY”.

The inflection pint would be the budget and if proposals live up to the expectation we can safely say that markets can re conquer its earlier highs in 12 months or even before if we are blessed with normal rains. Even if the budget doesn’t meet all the expectation the markets don’t seem like going too far down from the current levels and BUY on DIPS will be the correct strategy.

Weekly Pointer_15thJune09

Technical Calls 15th June 2009

SELL AXIS ABNK BELOW 697-FOR TARGET 677-654-627 STOP LOSS 715
BUY LANCO INFRA 532778 ABOVE 385 TARGET 401-410-424 STOP LOSS 371
329 STOP LOSS BUY R COM ABOVE 340 TARGET 350-357
99-97-94 ARE SUPPORTS FOR RNRL STRONG RNRL WILL NOT BREAK 99 POSSSIBLE TARGET 117
BUY INDRA PRASTH GAS 532514 ABOVE 151 TARGET 180 STOP LOSS 128 NEAR STOP 138
235 IS ALL TIME HIGH UNION BANK CROSSED TODAY
2215 ABOVE BUY RIL STOP LOSS 2190 TARGET 2247-2264--2290
225 STOP LOSS BUY FEDERAL BANK ABOVE 255----500469 TARGET 320
112 RNRL 5 RS FROM 117 VENTURA
IPO MKT START . MAHINDRA RESORTS 24 JUNE AND ADANI POWER 14TH JULY
201 STOP LOSS BUY R POWER ABOVE 210 TARGET 228 SHORT TYERM CALL
WE WANT RNRL ON 117 ON SCREENS 103 STOP LOSS NEAREST IS 104.75
1480-1455--1424-1385 LARSEN FALL BELOW 1500 STOP LOSS 1545
I THINK MKTS WILL OPEN 20 PTS ABOVE TMMMRW THEN TODAYS CLOSE
VALUE OF ANALSYSIS--Mkts to open below 4565 Nifty opens 4527-4467.Short covering at 4465.Weak below 4465 opens 4365-4340.Sell levels 4615-4629-4655.+Ve only above 4655

Technical Calls 12th June 2009

BUY AREVA 522275 ABOVE 380 TARGET 475 STOP LOSS 349

BUY ASIAN PAINTS 500820 ABOVE 1100 TARGET 1370 STOP LOSS 1087

BUY CHAMBAL 500085 ABOVE 74 TARGET 100 STOP LOSS 62

BUY CONCOR 531344 ABOVE 1011 TARGET 1270 STOP LOSS 949

BUY EDELWISE 532922 ABOVE 525 TARGET 600 STOP LOSS 470

BUY GMDC 532181 ABOVE 98 TARGET 130 STOP LOSS 80 OR 87

Sensex (15411)Res 15580-15868-16675 & Sup 15168-14999.

Nifty (4637) Res 4688-4745-4829 & Sup 4586-4546.

NiftyFut (4642) Res 4696-4747-4846 & Sup 4591-4554.

BUY CASTROL (BSE CODE 500870) AT 333 FOR TARGET 355, STOP LOSS 326.


117 ABOVE BUY SASKEN 532663 TARGET 157 STOP LOSS 105

BUY GMDC 532181 ABOVE 98 TARGET 130 STOP LOSS 80 OR 87

128 ABOVE BUY SUZLON 532667 TARGET 135-140-143 STOP LOSSS 121

Our buy call of RELIANCE on 11.06.09 at 2320 with target of 2577 is now 2365. Revise stop loss from 2237 to 2280. VENTURA

Technical Calls 11th June 2009

750 ABOVE BUY TULIP 532691 TARGET 820-870-900 STOP LOSS 685
500303 BUY ABIR NUVO 500303 ABOVE 1035 TARGET 1500 STOP LOSS 850--
550 STOP LOSS BUY JSW STEEL 500228 ABOVE 610 TARGET 800
OUR BUY CALL OF BHARTIARTL JUNE 800 CA ON 28.05.09 AT 48 NOW 72. BOOK PROFITS. VENTURA.
BGR Energy 380 Our Tgt Minimum Rs1000 with 6 month , our call from Rs 180 , hold the share. if not bought Buy BGR cmp 380 Tgt 500 Shortterm Stoploss 150
BUY ON MOBILE ABOVE 532944 ABOVE 470 TARGET 530 STOP LOSS DAY AVG
BUY LIC AT 602 TARGET 675 STOP LOSS 580
BUY RPOWER 532939 ABOVE 196 TARGET 230 STOP LOSS 186---182
BUY RENUKA SUGAR (BSECODE 532670) AT 148 FOR TARGET 174, STOP LOSS 141. VENTURA

Calls 10th June 2009

Sensex (15127)Res 15257-15579-15998 & Sup 14935-14752-14526.

Nifty (4550) Res 4636-4664-4786 & Sup 4478-4427-4365. NiftyFut (4551) Res 4643-4654-4823 & Sup 4483-4412-4385. VENTURA. (10/06/09) BUY KOTAK BANK (BSE CODE 500247) AT 684 FOR TARGET 760, STOP LOSS 631. BUY RIL INFRA (BSE CODE 500390) AT 1144 FOR TARGET 1238, STOP LOSS 1098. VENTURA

Sensex (15127)Res 15257-15579-15998 & Sup 14935-14752-14526.

Nifty (4550) Res 4636-4664-4786 & Sup 4478-4427-4365. NiftyFut (4551) Res 4643-4654-4823 & Sup 4483-4412-4385. VENTURA. (10/06/09) BUY KOTAK BANK (BSE CODE 500247) AT 684 FOR TARGET 760, STOP LOSS 631. BUY RIL INFRA (BSE CODE 500390) AT 1144 FOR TARGET 1238, STOP LOSS 1098. VENTURA

ho-vsl-bkg: 415 ABOVE PATEL ENG TARGET 600 STOP LOSS 350—-531120

ho-vsl-bkg: 415 ABOVE PATEL ENG TARGET 600 STOP LOSS 350—-531120

Asia Power Lunch (3 June 2009)

Asia Power Lunch (3 June 2009)

stock levels 09/06/09

stock levels 09/06/09

Technical Calls June 9th 2009

1695 STOP LOSS BUY SBI ABOVE 1725 TARGET 1770 CMP 1718
1800 SBI CALL AVAILABLE AT 55-57
1160 STOP LOSS BUY ORACLE ABOVE 1220 TARGET 1400
674 STOP LOSS BUY DR REDDDY ABOVE 700 TARGET 757
830 ABOVE BUY ACC TARGET 852 STOP LOSS 810

Reliance Power Report

Blogger Buzz: GrandCentral: receive calls and post voicemail with your blog

Is RNRL - Reliance Power merger on the cards?

Is RNRL - Reliance Power merger on the cards?


By SP Tulsian

For the past couple of days, market has been agog with speculation and rumours that Reliance Natural Resources Ltd. (RNRL) is likely to be merged with Reliance Power Ltd. (RPL). Market, as usual, has started viewing this news as a move to ramp up the share price of RPL, more especially, after the "no-effect" of bonus announcement on the share price of RPL, which closed at Rs.385 on 15th February 08, (prior to bonus announcement), and rose by just Rs.25 to close at Rs.410, on 20th February 08.



If the merger does indeed happen and we are asked to analyse it, there would then be two aspects to it - Synergy and Momentum.



Momentum cannot really work at this stage, as has been seen with the bonus announcement and hence even this news would prove to be a damp squib.



However, Synergy does have its role to play. RNRL came into existence, at the time of separation, between the Ambani brothers, mainly to secure the gas rights by Anil Ambani over the entitled and agreed quantity of gas, at the agreed price, to be produced by Reliance Industries Ltd. (RIL) at eastern cost mainly at Krishna Godavari Basin, for his power projects. This means, RNRL was brought in, as feedstock rights securing and procuring company for the power projects of Reliance ADAG.



RNRL has bagged some coal bed methane gas blocks, as also one on-shore oil exploration block and has applied for permission to lay a pipeline to carry gas from eastern coast to Dadri. RNRL has also been exploring to acquire coal mines and blocks in Australia, Africa and South East Asian countries, mainly to secure feed stock for its Ultra Mega Power Project at Krishnapattanam. Sasan Ultra Mega Power Project, has its own captive source, which is being implemented by RPL.



Earlier, Reliance ADAG had various companies, including Reliance Energy Ltd., to implement its various coal and gas based and hydro power project, which is now being implemented by RPL, a company which recently went public. Hence, it is logical and administratively convenient for the group to merge RNRL into RPL, as ultimately, the sole customer of RNRL would be RPL. Also, under agreement with RIL, RNRL is prohibited to trade in gas procured from RIL, which implies that there can't be any add up on the gas price, being supplied by RNRL to ultimate users of gas by Reliance ADAG companies. So how will RNRL show its financial performance, which would be nothing but a disappointment for its investors? This in itself makes it prudent and advisable to merge RNRL with RPL.



Also in the past, it was learnt that Reliance ADAG through RNRL has settled with RIL over gas dispute, under which RNRL would get transferred to RIL or Mukesh Ambani Group at a higher than its market price and net consideration received on such transfer, would get used, to pay higher gas price by Reliance ADAG to RIL. Earlier, agreed price of gas between them were $ 2.34 per mBtu, which was agreed to be raised to $ 4.00 per mBtu. Mind it, RNRL is just a shell company, with no earning business models, and still if it gets valued at over Rs.25,000 crore, that must be a quid pro quo.



Also, if one looks at it from the point of view of better control of the companies, merger of RNRL into RPL would always be in the larger interests of Reliance ADAG as it has about 54.84% stake in RNRL while it has 89.90% stake in RPL. Post merger and post bonus issue by RPL, still group can have an effective control of anywhere between 75% to 80% of merged entity. RNRL largely has intangible assets, except office premises of 95,000 sq. ft. at Reliance Centre, Ballard Estate, Mumbai.



Post RPL IPO, it may become difficult for the Reliance ADAG now even to please RNRL shareholders, who have entered into the stock, in the recent past at Rs.200 plus. The stock has seen a high of Rs.250 in the month of January 08. Though promoters of the company have no responsibility and obligations towards new investors, having bought shares of RNRL above Rs.200 per share, still, those investors look upon the promoters and some of them even held promoters guilty of a rampant price rise. So, everyone has reached to a conclusion that RNRL may not be able to see its share price crossing its previous top, in the recent times. Also, gas dispute with RIL is not likely to get resolved very soon, as expected earlier.



In nutshell, merger of RNRL with RPL may happen, as it would be synergistic and in the larger interests of the shareholders of both the companies. However, it would be a wishful thinking to presume that this move would inject fresh lease of life in RPL and take its share price northwards. How can an ant lift a mountain?

HOW TO ACTIVATE THE CLIENT LOGIN & CONTRACT

Click here to view Notes

BUY RNRL CMP 246 TGT 350 NO STOPLOSS REQUIRED

Bharat Gala: 1118 STOP LOSS BUY HDIL AT 1165 TARGET---1200-1247-1300
Bharat Gala: 416 STOP LOSS BUY SATYAAM ABOVE 425 FOR 450 TARGET
Bharat Gala: 4350 STOP LOSS BUY EDUCOMP ABOVE 4590 FOR 4750---4850 TARGET
Bharat Gala: 895 BELWO SELL TISCO FOR TARGET---880-855 STOP LOSSS---912-//918
Bharat Gala: 6288 and 20860 belwo close will attract correction
Bharat Gala: 146 stop loss buy krbl above 166--530813 for target---200
Bharat Gala: Tisco best call low 875---895 BELWO SELL TISCO FOR TARGET---880-855 STOP LOSSS---912-//918
Bharat Gala: AFTER SHARP RISE ON MONDAY MKT HAS TO CORRECT ON TUESDAY --- FOR THE HIGHEST CLOSING ON FRIDAY
Bharat Gala: BREAKING NEWS: Reliance says to register for Iraq oil tenders
Bharat Gala: ASIAN POINTS 1240 KS OIL-125 RNRL 246
Bharat Gala: 1118 STOP LOSS BUY HDIL AT 1165 TARGET---1200-1247-1300
Bharat Gala: BTST HDILLLLLLLLLLLLL----1118 STOP LOSS BUY HDIL AT 1165 TARGET---1200-1247-1300
Bharat Gala: 117 STOP LOSS BUY POLARIS AT 131 FOR 150 TARGET HDILLLLLLLLLLLLLLLLLLL 1130
Bharat Gala: '