Dr Reddy's: Outlook positive, buy June futures
Mumbai: The outlook on Dr Reddy's stock appears positive. The upside price target is Rs 1,115. The risk is that profit-taking can push the stock down to Rs 985. Consider buying the June futures on the stock. You will be exposed to a 70-point risk if the stock declines to Rs 985. There is no cost-effective hedge to protect this downside. For one, the puts are highly priced in absolute terms and will, therefore, cut into the profits. For another, puts will rapidly lose value, because time decay will increase at a faster rate as the option approaches expiration. So, do not enter this position, if you cannot afford the risk. If the stock rises to Rs 1,115 at the horizon, the June futures will generate Rs 24,000 cash flows. If the stock declines to Rs 985, the position will lose Rs 28,000. The trading horizon is six days. The market lot is 400.
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BEML registers high volumes
Chennai: Sustained operator interest saw large volumes being registered at the BEML counter on the bourses today. The stock was one of the `volume shockers' of the day with around 17.84 lakh shares traded on the NSE and with around 8.8 lakh shares traded on the BSE. The counter moved up by almost 5.57 per cent on the BSE and ended the day at Rs 89.10. On the NSE it ended the day at Rs 89.20 up 6.13 per cent. A leading market operator is said to have reportedly been mopping up shares at this counter. Apart from being touted as a `turnaround story,' brokers said the general `feel good factor' in the market also impacted the counter.
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CLB asked to expedite cases filed by DCA
New Delhi: In an effort to expedite the prosecution process of companies indicated in the stock market scam of March 2001, the Department of Company Affairs (DCA) has requested the Company Law Board (CLB) to take up the cases filed by the department on a priority basis. Cracking the whip on companies facing charges of stock market manipulation, the department had initiated prosecution proceedings against more than 14 companies for serious violations of the Companies Act. "In a meeting with the officiating Chairman of the CLB, S. Balasubramanian, the DCA Secretary has made a request to expedite the cases," informed sources. The charges against these companies include attempts to fraudulently induce persons to invest money and misstatements in the prospectus. It said that the company management had conducted business with intent to defraud its creditors, members, etc., in a fraudulent and unlawful manner, which is also oppressive of the members of the company.
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Rupee gains more; bonds bullish
Mumbai: The rupee ended on Tuesday at 46.5950/6050, gaining 6 paise against the dollar, as compared to Monday's close of 46.6550/6650 in the local currency markets. The rupee was steady for most of the day until the fag end when some corporates came to sell dollars. This made the rupee gain against the dollar, said a forex dealer in a private sector bank. The rupee opened at 46.65/66, which was the intra-day low and the close was the intra-day high.
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