ESCORTS (RR FINANCIAL)

OUTLOOK

• The key benchmark indices may remain volatile as investors may refrain from taking large positions ahead of extended holiday. Market will remain closed on Monday, 19 October 2009 on account of Diwali. Asian markets were trading mixed.

• Investors will keenly watch Q2 result from India's largest software services exporter TCS today, 16 October 2009. A total of ten brokerages expect a between 6.8% fall to a 4.9% growth in TCS' consolidated net profit as per US accounting standards at between Rs 1416.30 crore to Rs 1595.40 crore in Q2 September 2009 over Q1 June 2009. Their expectations peg a between 0.4% to 3.8% growth in revenue at between Rs 7237.70 crore to Rs 7478.40 crore in Q2 September 2009 over Q1 June 2009.

• Meanwhile, Inflation based on the wholesale price index (WPI) rose 0.92% in 12 months to 3 October 2009, slightly above previous week's annual rise of 0.7%, data released by the government on Thursday showed. Within the WPI, the food articles index rose 13.34%. The government revised upwards inflation for the year through 8 August 2009 to a much smaller decline of 0.37% from an estimated fall of 1.53%.

• The IPO of Indiabulls Power was subscribed 21.84 times. Indiabulls Power, a unit of Mumbai-based developer Indiabulls Real Estate, is developing five thermal power plants in western and central India, with total capacity of 6,600 megawatts, and will use the issue proceeds to fund two projects. The issue closed on Thursday, 15 October 2009.

• Asian stocks were trading mixed today as a decline among financial shares was offset by a weakening yen that boosted the outlook for Japan's exporters.

• US markets closed with marginal gains after a topsy- turvy session on Thursday on positive economic news and better than estimated earnings from Goldman Sachs and Citigroup.

• As per provisional data, foreign funds on Thursday, 15 October 2009, bought equities worth a net Rs 752.48 crore. Domestic funds dumped stocks worth a net Rs 443.08 crore

To see the full report: ESCORTS

>IDEA CELLULAR LIMITED (RR FINANCIAL)

Idea Cellular (Idea), part of the Aditya Birla Group, is one of the leading providers of wireless communication services in India. Currently, the company is operating in 17 of 22 telecom circles in India, is set to become a pan-India player by end-2009. The company is a unique wireless play—strong incumbent in a tough industry environment with superior spectrum profile, as well as a new entrant capitalising on new growth opportunities. Idea’s expansion into new circles is expected to provide a leg up to its subscriber and revenue growth in the near term and offer long-term profit growth opportunities. It is slated to launch operations in five circles over the next two quarters—three category C circles (Assam, NE, J&K), one category B circle (West Bengal), and one Metro circle (Kolkata). On valuation front, Idea’s consolidated EBITDA and net profit to post a healthy CAGR of 20% and 14%, respectively, over FY10-12E. The company is in a comfortable funding position (ex-3G) post stake sale to Axiata and Providence Equity We expect Idea (incl Spice) to post a healthy revenue CAGR of 14% with new circles driving revenue growth; old circles are expected to post a 10% CAGR over FY10-12E. Revenue share of new circles is expected to touch 15% in FY12E.However the Idea Cellular stock has been de-rated by the markets over the last couple of days, and has been trading much below its issue price on the back of worries about declining revenues. Along with the Key risks that include irrational bidding for 3G spectrum and execution risks on new launches, news that hammered the stock was the TRAI’s planning to make per second billing option mandatory. Tariff cuts will intensify the pressures on the sector in the near-term.

Technicals: The counter has been witnessing a steep downtrend. The third part of the down
trend that commenced from the Rs 77 peak is currently in motion and has dragged the stock
towards its long-term support at Rs 62. The stock can form a long-term trough at this level and
move up towards Rs 72-75 again. However, the long-term outlook for this stock will turn
positive only if it moves above Rs 75. Counter bottomed out in the beginning of 2009 at the
level of 43-45 and since then it started to retrace back along with good amount of volumes and
touched the high of 92.

To see full report: IDEA CELLULAR

>3i Infotech (RR FINANCIAL)

Business Profile
3i Infotech is a global IT company which offers a comprehensive range of software and IT solutions, including packaged applications, for the banking, financial services & insurance (BFSI), manufacturing, contracting, and retail & distribution industries. In addition, it offers a broad range of software services such as custom software development, IT consulting, IS and IT security consulting, enterprise application integration (EAI), and specialized services such as product reengineering, compliance consultancy, application rehabilitation and egovernance, among others.

Technical Analysis
The Stock has been trading in a consolidation phase for the past few sessions. In the last 3 sessions the stock has perform showing decent gains. A clear breakout above the level of 90 has occurred and it is expected to trade in the uptrend for the coming sessions.

Technical History
After bottoming out at 26 in march09 the stock has made a high of 105. All the trends are giving bullish indication (Long term, Short term, Immediate term).The volumes are important aspect. Increasing volumes are confirming the uptrend.

The Ascending triangle formation on the daily chart with rising trend line gives the immediate target of 117..The RSI on the weekly chart trading at 64 .The stock is trading above its 200EMA. The resistance is seen at 118-120.At these levels some correction is expected .Strategy for short term traders would be to book profit at these levels while long term investors can stay invested for the next target of 136.

To see full report: 3I INFOTECH