Chart shows clearly we should wait patiently till SUZLON crosses 90 then it will go up to 100 without hurdle.

Mamaji ki Nazar se

Nifty has crossed it long time hurdle that was 5180 confortably and with a jist. It will now rally nonstop till 5230 then 5360. 5360 n the expiry looks possible on 31st Dec 2009.

Suzlon Energy unit REpower today said it has bagged an order to supply up to 954 MW wind turbines for five projects in Canada.

REpower Systems AG has signed a contract with EDF Energies Nouvelles and RES Canada which comprises of delivery of turbines with a capacity of 748 MW, with an option to supply an additional 206 MW capacity, Suzlon Energy said in a filing to the Bombay Stock Exchange.

"This is a historic order, one of the largest in the North American market. It underlines the REpower value proposition not just as the world leader in the offshore with technology, but onshore as well," Suzlon Energy Chairman, MD and Chairman of Supervisory Board of REpower Systems Tulsi Tanti said.

The contract guarantees a minimum purchase capacity of 748 MW for deliveries between 2011 and 2015, the filing added.

Suzlon Energy holds 91 per cent stake in Germany-based REpower.

"This is a giant leap forward for REpower towards our establishment in Canada, and bolsters our intentions of further growth in the whole of North America -- Canada and the US," REpower Systems AG CEO Per Hornung Pedersen said.

France-based EDF Energies Nouvelles, is a major player in wind power and renewable energy market and Renewable Energy Systems Canada (RES) is renewable energy company.

New order energises Suzlon Energy

Suzlon Energy spurted 4.67% to Rs 83 at 12:55 IST after the company's German unit, REpower won an order to deliver 70 wind turbines to US-based enXco.

The announcement was made during trading hours today, 7 December 2009. Meanwhile, the BSE Sensex was down 35.99 points, or 0.21%, to 17,065.55. On BSE, 95.67 lakh shares were traded in the counter as against an average daily volume of 1.35 crore shares in the past one quarter. The stock hit a high of Rs 83.60 and a low of Rs 79.40 so far during the day. The stock had hit a 52-week high of Rs 145.85 on 5 June 2009 and a 52-week low of Rs 33.05 on 12 March 2009. The stock had outperformed the market over the past one month till 4 December 2009, soaring 43.79% as compared to the Sensex's 7.47% rise. It underperformed the market in past one quarter, falling 20.82% as against 9% increase in the Sensex. The large-cap wind turbine maker has an equity capital of Rs 311.34 crore. Face value per share is Rs 2. The turbines, with rated power of 2.05 megawatt (MW) each, are slated for delivery in 2011 for a wind farm project in the US. Suzlon Energy holds 91% stake in Germany-based REpower. In November, REpower Systems AG had signed a set of wind farm project contracts with EDF Energies Nouvelles and RES Canada for delivery of up to 954 megawatt for five projects in Canada. In the same month, Suzlon's Australian arm, Suzlon Energy Australia Pty, signed a pact with Infigen Energy for supplying wind turbine generators. As per the agreement, Suzlon Energy Australia will supply 20 units of 2.1 MW wind turbine generators (WTGs) to Infigen Energy. These WTGs will be installed at one of the wind farms in Infigen's pipeline for its future projects. Financial details were not mentioned. Suzlon's US unit had on 16 November 2009 secured a 20 megawatt order. Suzlon Wind Energy Corporation, the US step-down wholly owned subsidiary of Suzlon Energy, had received a new order for the community-based Grant County Wind Farm in Southwestern Minnesota, US. The project consists of 10 Suzlon S88 2.1 MW wind turbines. The wind farm is expected to be in commercial operation in the first quarter of 2010. Recently, Suzlon Energy sold a 35% stake in a subsidiary, Hansen Transmissions, for $370 million, or about Rs 1,720 crore, as part of its efforts to reduce debt. Post stake sale, Suzlon's shareholding in Hansen declined to 26% from 61%. This is the second divestment of Suzlon's stake in Hansen this year, with the firm selling 10% in January this year to the London-based investment firm Ecofin. Suzlon had bought the Belgium-based Hansen in 2006 for $565 million (about Rs 2,656 crore). Suzlon Energy reported a net loss of Rs 184.91 crore in Q2 September 2009 compared with a net profit of Rs 16.98 crore in Q2 September 2008. Net sales fell 72.3% to Rs 616.02 crore in Q2 September 2009 over Q2 September 2008. Suzlon's profit were hurt as the company got fewer orders this year because major economies are struggling with last year's financial crisis. Suzlon said its order book stood at 1,488 MW, with 1,365 MW in international orders and 123 MW in domestic orders. For the current fiscal year that end on March 2010, the company revised its full year guidance to a range of 1,900 MW to 2,100 MW. Suzlon Energy's order book as on 30 October 2009 stood at Rs 8,285 crore, which is 1.15 times its sales of Rs 7235.58 crore for the year ended March 2009, giving strong revenue visibility. Suzlon Energy designs, manufactures, operates, and maintains wind generating equipment. The company constructs large wind parks. Promoters have pledged 35.76 crore shares representing 22.97% of the equity capital of the company. Total promoters shareholding in the company is 53.08% (as on September 2009).

Suzlon Energy has received 143.5 MW project in US. The stock shot up 5%.

In the last two hours of trade the stock futures were piling up and the discount of nearly 6-7 points was indicating that there were fresh shorts at the higher levels. Suzlon Energy added nearly 52 lakh shares in the open interest.

Weekly Chart Suzlon

On Weekly Chart Suzlon is Bullish. Prise is rising with rising volume.
Rest other indicator is also bullish with SUZLON

Buy Suzlon above 83.00

Buy Suzlon @83.00; Tgt: 92.00; It is going to be benefited PM meeting in Russia.
Long term tft: 125.00 before March, 2010

A Beginner's Guide To Hedging

What Is Hedging?

The best way to understand hedging is to think of it as insurance. When people decide to hedge, they are insuring themselves against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced. So, hedging occurs almost everywhere, and we see it everyday. For example, if you buy house insurance, you are hedging yourself against fires, break-ins or other unforeseen disasters.

Portfolio managers, individual investors and corporations use hedging techniques to reduce their exposure to various risks. In financial markets, however, hedging becomes more complicated than simply paying an insurance company a fee every year. Hedging against investment risk means strategically using instruments in the market to offset the risk of any adverse price movements. In other words, investors hedge one investment by making another.

Technically, to hedge you would invest in two securities with negative correlations. Of course, nothing in this world is free, so you still have to pay for this type of insurance in one form or another.
Although some of us may fantasize about a world where profit potentials are limitless but also risk free, hedging can't help us escape the hard reality of the risk-return tr adeoff. A reduction in risk will always mean a reduction in potential profits. So, hedging, for the most part, is a technique not by which you will make money but by which you can reduce potential loss. If the investment you are hedging against makes money, you will have typically reduced the profit that you could have made, and if the investment loses money, your hedge, if successful, will reduce that loss.

How Do Investors Hedge?

Hedging techniques generally involve the use of complicated financial instruments known as derivat ives, the two most common of which are options and futures. We're not going to get into the nitty-gritty of describing how these instruments work, but for now just keep in mind that with these instruments you can develop trading strategies where a loss in one investment is offset by a gain in a derivative.

Let's see how this works with an example. Say you own shares of Educom. Although you believe in this company for the long run, you are a little worried about some short-term losses in the education industry. To protect yourself from a fall in Educom you can buy a put option on the company, which gives you the right to sell Educom at a specific price (strike price). This strategy is known as a married put. If your stock price tumbles below the strike price, these losses will be offset by gains in the put option.

Keep in mind that because there are so many different types of options and futures contracts an investor can hedge against nearly anything, whether a stock, commodity price, interest rate and currency - investors can even hedge against the weather.

The Downside

Every hedge has a cost, so before you decide to use hedging, you must ask yourself if the benefits received from it justify the expense. Remember, the goal of hedging isn't to make money but to protect from losses. The cost of the hedge - whether it is the cost of an option or lost profits from being on the wrong side of a futures contract - cannot be avoided. This is the price you have to pay to avoid uncertainty.
We've been comparing hedging versus insurance, but we should emphasize that insurance is far more precise than hedging. With insurance, you are completely compensated for your loss (usually minus a deductible). Hedging a portfolio isn't a perfect science and things can go wrong. Although risk managers are always aiming for the perfect hedge, it is difficult to achieve in practice.

What Hedging Means to You

The majority of investors will never trade a derivative contract in their life. In fact most buy-and-hold investors ignore short-term fluctuation altogether. For these investors there is little point in engaging in hedging because they let their investments grow with the overall market.

So why learn about hedging?

Even if you never hedge for your own portfolio you should understand how it works because many big companies and investment funds will hedge in some form. Oil companies, for example, might hedge against the price of oil while an international mutual fund might hedge against fluctuations in foreign exchange rates. An understanding of hedging will help you to comprehend and analyze these investments.

Conclusion

Risk is an essential yet precarious element of investing. Regardless of what kind of investor one aims to be, having a basic knowledge of hedging strategies will lead to better awareness of how investors and companies work to protect themselves. Whether or not you decide to start practicing the intricate uses of derivatives, learning about how hedging works will help advance your understanding the market, which will always help you be a better investor.

Global mkt momentum crucial for Nifty to cross 5,200

The Nifty faltered in its attempt to cross its intermediate high, stopped short and ended flat at 5,120. It was a quiet session for largecaps, Tata Motors, DLF and a few financial stocks starred in an otherwise lacklustre session. Trading volumes remained a bit subdued as global markets also go sideways robbing the markets here of any great momentum.

This morning what the market needed was some leadership to take the Nifty beyond the level of 5,180 and it didn’t get support from the heavyweights. Reliance, SBI, those kind of stocks didn’t move and we were finally left with a few outperformers like Tata Motors which had another good session, DLF in the real estate space looked quite strong, Ranbaxy’s run is still not done even as Sun Pharma corrected a bit today and today actually belonged to the financial sector, ICICI Bank, HDFC Bank, and IDFC all looked very smart today.