>JET(CITI)

What's new? — Press reports (ET, Mint) indicate Jet is negotiating to sell a 10%
equity stake to Temasek Holdings for consideration of Rs2.5bn. The company
is also reportedly raising debt funds of Rs10bn from Abu Dhabi-based
Mubadala Development Corporation to help fund working capital requirements.

Management denies this development — Management has indicated these talks
are speculative, and that the company has no plans to infuse equity or debt
(from Mubadala). However, management has said that Jet plans to raise fresh
debt funds to meet its working capital requirements.

What are Jet's funding requirements? — We forecast Jet's cash losses at
Rs31.3bn (over FY09E-10E) (after interest payments, but before principal
repayments of c.US$280m). The company is trying to curb operational losses
through various initiatives – cutting loss-making flights, reducing ticket
commissions, etc. The biggest positive is the sharp fall in crude oil prices
(<$60 vs. our FY10/11 estimates of $75/bbl). If crude prices continue to
decline, there could be a substantial positive upside to our current numbers.

Read full report here JET(CITI)

>Hindlever(Merrill Lynch)

Rising concern on demand but relative safe haven; Buy
Our mgmt meeting revalidated our view that margin outlook is improving but we
were surprised by mgmt's rather sombre outlook for demand. Our 2009 forecast
of margin expansion of 150bp remains intact. However our sales forecast of 11%
could be at risk should macro environment continue to deteriorate. Nonetheless
overall, we believe HUVR is well placed to grow earnings in mid teens, way ahead
of average Sensex growth. Hence we reiterate our Buy rating.
Margin outlook is improving
We estimate lower input cost benefits will begin to flow in partly from March Q and
fully from June Q. The benefits will differ category to category - Soaps will witness
benefits being passed on, detergents will see benefits being retained.
Key issue #1: Is there risk to volumes?
HUVR’s volume growth has been slowing down from 10% in March Q to 7% in
Sept Q in response to rising prices. Despite stabilizing retail prices, the macro
environment is not favourable enough to suggest that volume acceleration is likely
near term. Key concern is falling employment in 2nd tier cities and uncertain
economic outlook. Yes, HUVR’s products are non discretionary but down-trading
is likely as was the case during the drought years of 2002/2003.
Key issue #2: Will low price competition be rekindled?
Lower commodity prices invariably come in with the negative of reenergizing low
price competitors. This is most likely the case in soaps as margins here will
expand the maximum. We expect HUVR to withstand higher competitive activity
through its diversified portfolio which gives it the flexibility to cut prices and retain
margins more effectively versus competitors.

Read full report here Hindlever(Merrill Lynch)

>Technical & Derivative strategy(EMKAY)

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Technical & Derivative strategy(EMKAY)

>Daily call(ANAGRAM)

Global markets are going through turmoil of enormous proportions. Large amount of shares are changing hands everyday with extreme price volatility. On one side we have Mutual fund and Hedge fund as sellers who face redemption and needs to get out of markets soon and on the other side are the traders who earlier went short and want to lock in their profits by reversing their positions or long term investors who appear on the scene when they perceive a bargain.

Take an example of US markets. While we were closed on Thursday, US markets fell shapely on their Wednesday session and for most part of Thursday's markets, albeit to recover all its losses in the last few hours of trading. From Tuesday's close to Thursday's low Nasdaq was down almost 10% and Dow almost 8%. In two hours of the trade yesterday, they surged back 12% and 10% respectively. To put these numbers in perspective, US market first lost as much market cap as India's size of Economy and recovered more than that by the closing.

The reverse is likely to happen in our markets, we may open higher with the world markets, but sustaining opening gains looks daunting. 10300 is the resistance now, on our way up and 9300 and 9000 are the supports for the Sensex.

Read full report here Daily call(ANAGRAM)