27 May 2009

I traded in Tata communications stocks assuming it will rise, because it reported Q4FY09 profit(302.37) 5 times
that of Q4FY08 (56.03cr).
FY09 net profit 515.95 cr FY08 net profit 304.9 cr
Revenue, net profit & consolodated revenue all grew vis-a-vis FY08.
Company declared dividend of Rs. 4.5 per Rs. 10
Global mood was upbeat because US consumer price index was the highest since Sept08 & sharpest ever rise in 6 yrs.
Asian markets were green & sensex rose by more than 300 pts.
NSE rise to decline ratio was 11:1
On previous day, Tatacomm had plummetted from 585 to 542 i.e. by 43 pts without ne negative news & Q4FY09 results
were declared after market was closed.
I expected stock to rise in short term & hence decided to do intra-day trading in spite of the fact that net profit
was quintupled due to sale of stake in tata teleservices by tatacomm.
I did a few profit booking day trades, but stock breached the support of 538 & reached Rs.526 just after press
conference by Pranab Mukherjee; though there was no bad news for telecomm sector.
NIIT on the other hand, rallied 5% in spite of 15% dip in net profit of Q4FY09 vis-a-vis Q4FY08.
I minimised the loss by selling stock at market price. I was right in doing so becos afterwards the market price
of share reached 516.
It seems that market does not view sale of stock to Japan's DoCoMo positively.
Market did not view MTN-Airtel merger as positive development either.
I had bought BHartiartl at 866 & sold it at 894 on announcement of merger b/w bharti & MTN.
After I sold it,bharti nose dived to 810 the same day & currently trading at around 770. This is level
at which Bharti was trading before the Golden Monday. I think bhartiartl has support at this level.
I was right in timing the sale of Bharti.