TECHNICAL VIEW ON STOCK

• HOLDING PERIOD – ONE MONTH PLUS

• APOLLO TYRE

• Present Price - Rs.52.50, Projected Price - Rs.62-63

Tyre industry is doing extremely well primarily because of the auto boom and all tyre stocks are on a roll. The stock has given a fresh breakout and should be bought at current levels and at all declines. The target of the stock works out to Rs.60 and Rs.64.

• INVESTMENT PICK

• HOLDING PERIOD – THREE MONTHS PLUS

• TULIP

Present Price – Rs.962 Projected price – Rs.1100

Tulip provides intra-city and inter-city multi protocol label switching virtual private network (MPLS VPN) connectivity, based on wireless last mile network and is now present in over 1400 cities across the country. In a very short span of time, Tulip has gained leadership position in VPN business with market share currently at ~38%. In order to cater to the customers with higher bandwidth requirements, Tulip has begun rolling out intra-city fiber in 10 CBD's. With fiber rollout, Tulip would also be able to extend its services by offering IPLC, DLC, corporate internet, etc. which would enable it to increase its share in the overall enterprise data service industry. Tulip has also deployed 3 data centers for providing hosting services, which brings customer stickiness and compliments data connectivity business. We expect the company to report an EPS of around Rs.110 for FY10. On the technical front, the stock is looking attractive and is all set for a strong rise from the current levels.