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Record Date – Munjal Auto Industries Stock Split

Munjal Auto Industries Ltd has informed BSE that the Board of Directors of the Company has approved December 30, 2011 as a ”Record Date” for the Subdivision of Shares (stock split) for the purpose of ascertaining the eligibility of the shareholders/beneficial owners of the Company who would be entitled to 5 (Five) equity shares of Rs. 2/- each for every 1 (One) equity share of Rs. 10/- each held, whose names appear on the Register of Members of the Company as on the Record Date.

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Buy Call – IPCA Laboratories

We recommend a buy in the stock of IPCA Laboratories from a short-term perspective. It is evident from the charts of the stock that following a medium-term downtrend from the key resistance level of Rs 350, encountered in June, the stock found support at Rs 230 in October.

The range between Rs 230 and Rs 235 is a significant long-term support band that coincides with 38.2 per cent fibanocci retracement level of the stock’s prior up move. Triggered by positive divergence in daily relative strength index and price rate of change indicator, the stock changed its direction, and since October low, it has been on a nascent uptrend.

The daily as well as weekly price rate of change indicator is featuring in the positive territory implying buying interest. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue and reach our price target of Rs 278 or Rs 286 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 262.

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Monnet Ispat board confirms buy back

The board of directors of Monnet Ispat approved company’s proposal on Thursday to go for a buyback shares worth Rs 100 crore from the open market at a price not exceeding Rs 500 each. Monnet Ispat scrip touched an intra-day high of Rs 380 on the BSE before closing at Rs 364.65, a gain 1.50 per cent over previous close.

Promoters — the Jajodia family and group companies — own 49.42 per cent stake in Monnet Ispat as of September end. The foreign institutional investors own 35.26 per cent of the company.

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Short Term Buy Call – Patel Engineering

We recommend a buy in the stock of Patel Engineering from a short-term perspective. It is evident from the charts of the stock that it has been on a long-term downtrend from its September 2009 peak of Rs 526. Medium-term trend is also down for the stock. However, its short-term trend is reversing up.

After registering a multi-year low at Rs 78 on November 25, the stock bounced up forming a bullish engulfing candlestick pattern. Further, on Monday the stock jumped nine per cent reversing the short-term downtrend. This reversal has been backed with positive divergence in the daily relative strength index and daily moving average convergence divergence indicator. Weekly RSI and MACD are also displaying positive divergence strengthening the stocks trend reversal.

Daily RSI is inching higher in the neutral region and its weekly indicator is recovering from the oversold territory. We notice that there is an increase in daily volumes in the past three trading sessions. Daily price rate of change indicator has entered into the positive territory implying buying interest.

Taking a contrarian stance on the stock we are bullish on it from a short-term perspective. We expect its current rally to prolong and reach our price target of Rs 92.5 or Rs 96.5 in the days ahead. Traders with short-term perspective can buy the stock with stop-loss at Rs 88.

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Nuziveedu Seeds IPO Updates

The world’s third-largest producer of cotton seed had revenue of more than Rs. 6bn last year, according to its website.

Nuziveedu Seeds has reportedly chosen five investment banks for its proposed initial public offering (IPO) that may raise up to Rs. 8bn.

The Andhra Pradesh-based company has selected Goldman Sachs, IDFC Capital, Enam Securities, JM Financial and JPMorgan Chase for the IPO, which is expected to take place in the first half of 2012, according to reports.

The world’s third-largest producer of cotton seed had revenue of more than Rs. 6bn last year, according to its website.

Nuziveedu is a unit of NSL Group, which also has business interests in Sugar, Textiles and Power.

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Record Date – Sezal Glass Stock Split

Sezal Glass has fixed 22 October 2010 as the record date for the purpose of sub-division of existing equity shares of the company from each 1 equity share of Rs. 10 each into 10 equity shares of Re. 1 each.

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Record Date – Maximaa Systems Stock Split

Maximaa Systems has fixed 08 November 2011 as the record date for the purpose of sub-division of face value of equity shares from Rs 10 per share of the company into the shares of Rs 2 each.

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