A note on what Reliance stands for...!!!

In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures.It was rumored that company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, a bear cartel which was a group of stock brokers from Calcutta started to short sell the shares of Reliance. To counter this, a group of stock brokers till recently referred to as "Friends of Reliance" started to buy the short sold shares of Reliance Industries on the Bombay Stock Exchange.

The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the transactions and would be ready for settlement under the "Badla" trading system operative in the Bombay Stock Exchange. The bulls kept on buying and a price of Rs. 152 per share was maintained till the day of settlement. On the day of settlement, the Bear Cartel was taken aback when the Bulls demanded a physical delivery of shares. To complete the transaction, the much needed cash was provided to the stock brokers who had bought shares of Reliance, by none other than Dhirubhai Ambani. In the case of non-settlement, the Bulls demanded an "Unbadla" (a penalty sum) of Rs. 35 per share. With this, the demand increased and the shares of Reliance shot above 180 rupees in minutes. The settlement caused an enormous uproar in the market and Dhirubhai Ambani was the unquestioned king of the stock markets. He proved to his detractors just how dangerous it was to play with Reliance.

To find a solution to this situation, the Bombay Stock Exchange was closed for three business days. Authorities from the Bombay Stock Exchange(BSE) intervened in the matter and brought down the "Unbadla" rate to Rs. 2 with a stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit out of The Bear Cartel's adventure.

After this incident, many questions were raised by his detractors and the press. Not many people were able to understand as to how a yarn trader till a few years ago was able to get in such a huge amount of cash flow during a crisis period. The answer to this was provided by the then finance minister, Pranab Mukherjee in the parliament. He informed the house that a Non-Resident Indian had invested up to Rs. 22 Crore in Reliance during 1982-83. These investments were routed through many companies like Crocodile, Lota and Fiasco. These companies were primarily registered in Isle of Man. The interesting factor was that all the promoters or owners of these companies had a common surname Shah. An investigation by the Reserve Bank of India in the incident did not find any unethical or illegal acts or transactions committed by Reliance or its promoters.
A Document extract by Ankit gupta...

Inflation@ 0.26% and IIP @ -1.2% :data released on 09-04-09

Inflation for the week-ended March 28 has come in at 0.26% as against 0.31% a week earlier. A CNBC-TV18 poll conducted earlier saw inflation coming in at 0.35%. The FY09 provisional average inflation is seen at 8.37% versus 4.67% year-on-year.
Meanwhile, inflation for week-ended January 31 has been revised to 3.98% versus the provisonal figure of 4.39%.

The Index of Industrial Production for February has come in at a negative 1.2% as against 9.5% year-on-year and negative 0.5% month-on-month. The number was not as bad as the street had expected and this was probably due to the capital goods growth number coming in at 10.4%. A CNBC-TV18 poll conducted earlier saw February IIP at a negative 1.86%.

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TRADING LEVELS & INTRADAY RECOMMENDATIONS

TRADING RANGE:

The support for the SENSEX is 9332 and the resistance to the up move is at 9900
NIFTY: (2978) the support for the Nifty is at 2900 and the resistance to the up move is at 3050

Day's trading Ideas -

HDIL
Buy above 79.45 for targets of 80.45 and 81.60
Sell below 75.40 for targets of 73.10 and 72.25

ICICI
Buy above 341 for targets of 346 and 352
Sell below 324 for tergets of 320 and 314

LNT
Buy above 660 for tergets of 668 and 674
Sell below 630 for tergets of 624 and 619


HAPPY TRADE TO ALL ....!!!

Market View 01-04-2009

Good Morning .....!!!

Sensex has managed gained nearly 150 points after a volatile session yesterday. Allthe sectors have Contributed in yesterday's trade. US markets did the same and gained 86 points. Buying came in Bankingand IT stocks . Crude is trading below 50$ a barrel with highinventory report from US as the industries cut the production costs.

Indian markets are expected to gain in the opening trade. As the Global & the Asian sentiment is positive we see markes to be in the positive. Banking and Reality sector are ecpected to do well in todays trade.

SBI, HDFC BANK, AXIS BANK & PNB are our favourites. SUGAR sector the stocksdid well in yesterdays trade and we see today also the run may continue.

*Members those are in profits should book profits in the trade today.