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> MARKET NEWS
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> Thursday, June 13, 2013
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> How your home loan EMIs are calculated
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> An EMI, or equated monthly instalment, is a certain amount of money that is payable by you to the bank (in case you have taken a home loan) in order to obtain legal possession of the house.
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> Tata Coffee clarifies to BSE after stock crashes 20% for 2nd day
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> Tata Coffee shares had crashed 20 per cent on Wednesday too, ending at Rs 1,100.But later recovered from lower levels.
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> RBI may hold rates as it eyes rupee, current account deficit
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> A Reuters poll showed 28 of 38 analysts expected the RBI to hold the repo rate at 7.25 per cent, while 30 of 34 expect banks' cash reserve ratio to be left unchanged at 4.00 per cent.
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> April IIP growth revised to 2.2 per cent
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> The data was revised as the government corrected production data for electricity, the statement said.
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> Ranbaxy eyes US drug launches with sales exclusivity
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> The first company that seeks approval from the US Food and Drug Administration (USFDA) for a generic version of a patented medicine gets exclusive rights to sell it for 180 days after patent expiry.
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> Chidambaram pledges more reforms but rupee drops further
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> The finance minister on Thursday pledged new reform measures by the end of June including lifting caps on foreign direct investment and changes in locally-produced gas prices to win back investor confidence.
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> Nikkei sinks 844 points to lowest close since April 3
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> The Nikkei average tumbled 6.4 percent on Thursday, hitting its lowest close since April 3 - the day before the Bank of Japan unveiled sweeping stimulus to revive the economy - as investors further cut their long Japanese equities and short yen positions.
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> Indian economy to grow 6.7% by FY15: World Bank
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> Exports and private investment, which slowed sharply in 2012, are projected to strengthen during 2013-15 and provide a boost to growth.
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> Rupee extends losses to 58.56, unaffected by Chidambaram's assurance
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> Rupee extends losses to 58.56, unaffected by Chidambarams assurance
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> Gold edged lower on Wednesday as stock markets rebounded after two days of losses, with the metal remaining under pressure from expectations that central banks' commitment to ultra-loose monetary policy may be waning.
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Data Feeler: Nifty future after a sell off on Monday took support around 5980 levels and a small bounce back was seen towards 6040 levels intraday. Nifty future may continue its lackluster move till the time it trading in between the range of 5980-6050 levels. Nifty future for the day, if it sustains above 6050 levels then only rally may be seen towards 6100 levels whereas sustaining below 5980 levels may see selling pressure in the market towards 5950-5920 levels. Looking at the option concentration data for May series, maximum put OI is shifted at 5800 followed by 5700 strike prices whereas maximum call OI is placed at 6200 followed by 6000 strike prices. Bank Nifty for the day immediate support is at around 12400 levels whereas s trong hurdle is placed around 12750 area.
Put Call Ratio based on Open Interest of Nifty moved up from 1.16 to 1.19 levels. Historical Volatility of Nifty moved down from 19.24 to 18.67 levels and Implied Volatility also moved down from 16.93 to 16.87 levels.
Nifty future closed positive at 6006 levels. Nifty future saw increase in OI by 5.66% with a rise in price by 0.19%. Market witnessed marginal buying interest in HC, Tech, PSU, Power, Oil& Gas, IT and CG space whereas selling pressure was seen in CD, Realty, Auto and FMCG sector stocks. Nifty future closed at premium of 10 points as compared to premium of 14 points in previous trading session.
The market turnover decreased by 6.1% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees decreased by 7.3%.
Derivative Calls: Buy on SUNTV & FEDERAL BANK
News:
Ø Ranbaxy has pleaded guilty to felony charges related to drug safety and will pay $500 m (about Rs.2740 Crs) in settlement.
Ø Tata Steel has announced a $1.6-billion goodwill impairment charge for the loss of value of Tata Steel Europe (TSE), formerly Corus, and other overseas assets.
Ø Bharti Airtel and Loop Mobile have moved the Delhi High Court seeking extension of their licences in metro areas
Ø Cairn India plans to drill 48 wells at a cost of less than $100 million in the Mangala oilfield in the prolific Rajasthan block to extend the current production plateau
Ø ONGC and energy major Shell are exploring the possibility of a strategic tie-up to jointly bid for global oil and gas assets,
Ø Bank of India has planned a Qualified Institutional Placement offer in the second half (October-March) of this financial year, to raise equity capital for its growth. It has estimated a capital requirement of about Rs 6,000 Crs.
Ø Syndicate Bank has set an ambitious target of 25 per cent growth in the overall business for 2013-14 as compared with 18.1 per cent growth it had achieved in the last financial year.
Ø Reliance Communications expects its CDMA technology-based mobile business to stop bleeding and start contributing to company's growth within 12 to 18 months.
Ø Directorate General of Central Excise Intelligence (DGCEI) has issued a show-cause-cum-demand notices to Vijay Mallya-owned firms United Breweries and United Spirits Ltd, for allegedly evading service tax of Rs 91 Crs.
Ø Punj Lloyd has bagged ONGC's Rs 730 Crs B-127 cluster pipeline project in Mumbai.
Ø Vakrangee Holdings Private Limited bought 25,25,000 shares of Vakrangee Software at Rs.74.25/share.
Ø Shriram EPC Limited has received Rs.126 Crs order from the Chennai Metropolitan Water Supply and Sewerage Board.
Ø Petronet LNG Ltd has invited bids to build facilities at its proposed 5 million tonnes LNG terminal at Gangavaram in Andhra Pradesh.
Key events for the day:
Ø Board Meeting for Q4 Results: DRL, Novartis India, Muthoot Finance, Pfizer, Reliance Infra, United Bank, Sun Pharma ADV, Bartronics, DCW, Dwarikesh Sugar, Elder Health, Elder Pharma, HT Media, Jindal Hotel, JSL Inds, Maharashtra Scooters, Mirc Elec, Munjal Auto, Plethico Pharma, Suven Life, Whirlpool
Ø Release of WPI Inflation data in India.
Ø Release of Industrial Production data in Euro Zone.
MARKET OUTLOOK
NIFTY (5980): CNX Nifty almost made a double top with 6111.80 on 29th January ,2013 and 6114.55 on 11th May,2013, Nifty has rallied substantially from 5477.20 to 6114.55 in 21 trading days which is important Turn date where profit booking was seen. Nifty's rally from 5477.20 to 6114.55 has already has retraced 23.6% and now 38.2% comes to 5871 and 50% comes to 5795. For the day Nifty holding 5960 and crossing 6040 to target 6080 & 6111, while Nifty below 5960 could have chances of correcting till 5871-5844 ,which cannot be ruled out. Multiple factors aide d market correction, Market talks of PM stepping down, weak trade data, Fed's exit strategy has been associated with market weakness and RBI probe into COBRA post expose, Banks suppressing alerts on suspect dealings. Exports from India up 1.6% even as trade deficit widens to USD 17.7 bn, Gold and silver imports during the month under review has increased by a staggering 138 per cent to USD 7.5 billion from USD 3.1 billion in April 2012.
SENSEX (19692): Sensex corrected 430 Points almost highest ever single day correction in last 14 months and in the process closing the gap of 19694 caused on 7th May by making a low of 19667. Sensex rallied from 18144 to 20146 in 18 trading days for which 38.2% retracement comes to 19381 & 50% comes 19145. For the day Sensex has to cross 19840 to negate the corrective move, while below 19660 the index could witness support around 19550 & 19380 levels.
TECHNICAL CALLS
BUY CADILA Rs.805: CADILAHC has closed at its 63 trading days high after making good bottom formation, on weekly making a U-pattern which would complete near Rs.870. The company announces its result on 22nd May,2013 and hopes are very high on good turn around results. The stock is trading above 50DMA Rs.757 and 100DMA Rs.801.
SELL CANBANK Rs.406: CANBANK is on the process of completing a Head & Shoulder pattern, below Rs.396 the stock would break the neckline, therefore expect a correction of 8-10% from current levels in the stock. CANBANK has closed below 200DMA Rs.422, 100DMA Rs.444 and 50DMA Rs.408.
News:
Ø Tata Motors is considering producing another car, possibly a new compact car, alongside the small car at the Sanand plant.
Ø Mahindra & Mahindra plans to modify some of its vehicles to help them avoid a 3% additional excise duty on sports utility vehicles as its sales have come under pressure.
Ø DLF has sold 32 acre of land in Hyderabad for about Rs.650 Cr to Suvarnabhoomi Developers as part of its strategy to exit from the non-core assets and reduce debt.
Ø New US Visa Rules to Hit Cognizant & TCS Most.
Ø Lupin expects to launch 20-25 products in the American market every year in the next couple of years.
Ø Germany's DVB Bank is in advanced talks with private equity fund India Star to purchase a 29% stake in Global offshore (formerly Garware Offshore) for around Rs. 100 Cr.
Ø Oberoi Realty to Tie Up with Ritz-Carlton for City Hotel.
Ø Shriram City Union Finance may raise around Rs. 325 Cr capital through either an institutional placement of shares.
Ø Reliance Industries has sold off its holdings in four banks, HDFC Bank, Axis Bank, Canara Bank and PNB, but has tanked up its holdings in two others - SBI and ICICI Bank.
Ø Canara Bank plans to raise up to $1 billion through bonds this month from the overseas market to fund global business expansion.
Ø L&T in race for Rs 2,000-cr howitzer tender.
Ø Ashok Leyland has gone in for an organisational revamp by which it will create three different divisions: truck, bus and power solutions.
Ø In Elder Pharma Ratnakar Bank has sold 1.4 lakh shares on Saturday at Rs.320/share. Promoter pledge at 80%. The stock hit 20% lower circuit on post the deal.
Ø Ashoka Buildcon board approves bonus issue in ratio of 1:2
Ø Blackstone is in talks Life Insurance Corporation (LIC) to buy its stake in Stock Holding Corporation of India (SHCIL). IDBI set to lose battle for SCHIL. (IFCI with 34% stake likely to oppose the merger).
Key events for the day:
Ø Board Meeting for Q4 Results: Bank of India, BoB, Rel Power, Eicher Motors, Nestle, Tata Coffee, TTML, Amara Raja, 3i Infotech, Amtek Auto, Aptech, Blue Star, ABC Bearings, Amtek India, HMVL, Mawana Sugars, Network 18, TV18 Broadcast, Praj Inds, Rain Commodities, RCF, Thomas Cook, Titagarh Wagon, Zydus Wellness, Sterling Tools.
Ø Release of USD Retail Sales m/m.
Weekly Data Feeler
Ø Open Interest of Nifty future increased by 22.40% with a rise in price by 2.69% from the previous week, indicating built up of long position as market continued its positive momentum towards 6100 levels.
Ø Bank Nifty also witnessed built up of long position as OI increased by 16.19% with the rise in price by 3.14% from the previous week.
Ø Put Call Ratio based on Open Interest of Nifty moved up from 1.12 to 1.23 levels with the support of Put writing at all lower strikes. Now if Put Call Ratio sustains above 1.20 levels then momentum may continue in the market otherwise a consolidation or profit booking dip may be seen in coming sessions.
Ø HV (Historical Volatility) of Nifty moved down from 18.53 to 17.72 levels.
Ø Implied Volatility of Nifty moved up from 14.74 to 16.44 levels.
On the Option front, maximum Put OI is at 5800 followed by 5700 strike, whereas maximum Call OI is at 6200 followed 6100 strike. Fresh Put writing seen at 6000 strike which indicates that participants are expecting market to hold above 6000 levels. Fresh Call writing at 6200 strike may put pressure on the market on rise.
Nifty future moved well by more than 11% from 5480 to 6130 levels with the support of rising Put Call Ratio and also making higher high top - higher bottoms from last five consecutive weeks. Market has moved well and a small profit booking dip cannot be ruled out, but overall trend is positive and till it doesn't breach below 6080 levels positive momentum is likely to continue in the market.
Now if Nifty future sustains above 6080 levels then momentum may continue towards 6200 levels, longs can trail their position with the stop loss of 6080 levels. On downside if it sustains below 6080 levels then a profit booking dip may be seen towards 6020-5980 levels. Bank Nifty future is finding hurdle at around 12750 levels, if it sustains 12750 then it may head towards 13000-13300 levels. Bank Index has strong support at around 12500 levels.
STOCK OF THE WEEK - MAHINDRA & MAHINDRA
COMPANY BACKGROUND
o Founded in 1945 as a steel trading company, M&M entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, they've diversified into many new businesses in order to
o better meet the needs of our customers.
o M&M follows a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies.
o This principle has led their growth into a US $15.9 billion multinational group with more than 155,000 employees in over 100 countries across the globe.
RATIONALE
o M&M increased prices by around 3% over its UV portfolio after the govt announced an additional SUV tax in the FY14 Budget. With only the Quanto and the Verito outside the ambit of the SUV definition, the PV segment demand deteriorated in April. Mgmt has noted in press (Source: Economic Times) that the additional 3% tax burden will be significantly detrimental to the SUV segment. Mgmt's outlook is that of cautious optimism, with hopes of a positive impact from a possible interest rate cut by the RBI.
o Mgmt has noted that the company could look into launching new variants / models that do not attract the additional tax i.e. lower than 1.5 liter engines, smaller than 4m in length and reducing the ground clearance to below 170mm.
o Festival timing helps tractor volumes rise around38% YoY - With major festivals of Gudi Parwa and Navratras falling in April this year vs in March last year, April volumes for the tractor segment were robust. We think there could be a build-up of inventory on expectations of a strong monsoon and we should have more clarity over end May /early June.
MARKET OUTLOOK
NIFTY (6107): CNX Nifty made a high above 6111.80, by marking its new high for the CY2013 at 6114.55 which is also the highest level touched by the index in as many as 28months, and closed highest in 131 weeks too. Nifty is in its lifetime high territory on Weekly closing basis ,where it has closed above 6100 for 6th time which gives more reasons for 6357 all time high to be crossed and taken apart. For the day Nifty holding 6080 is important to target 6165 & 6200, while Nifty below 6080 could have chances of correcting below 6040 and can take support around 6020. DRREDDY R s.2091, has gapped-up(2029-2042) and made all time high Rs.2108 ahead of results on 14/May stock looks very good for 5-8% returns on higher side. YESBANK Rs.512 has closed highest in 59trading days and now all time high Rs.545 could be potential target in days to come. Market is on verge of major bull rally with political uncertainty being the only risk, so if fluid political conditions don't disturb the markets then Nifty crossing its all time high levels at 6357 in next few months could be possible once we see close above 6130.
SENSEX (20122): Sensex has closed highest in 123 weeks and 20203-20260 are important levels to be crossed with 19850 becoming very important support in short term. Today Sensex holding 20045 and crossing 20150 could possibly give an up move till 20203 & 20325 are possible levels on higher side while the index drifting below 19995 could open up gap levels on the down side and 19694 can be retested.
TECHNICAL CALLS
BUY ICICIBANK Rs.1168: ICICI BANK has made a pole and flag formation on daily charts, and within the flag the stock has formed an inverted head and shoulder pattern which suggests that there is more upside to be seen in the stock in the days to come, the stock's double top is at around Rs.1188 ,which if crossed could take the stock to its next levels on the upside at Rs.1230 & Rs.1280 which could be potential targets for the stock. ICICI BANK is trading above 200DMA Rs.1067, 100DMA Rs.1119 and 50DMA Rs.1083.
BUY BAYERCROP Rs.1213: BAYERCROP after making all time high of Rs.1340 has corrected to low of Rs.1040 and has almost consolidated for 22weeks and now given triangle break-out and closed highest in 16weeks and all to cross all time high. The stock is trading above all major moving averages with the 200DMA at Rs.1108, 100DMA at Rs.1165 and 50DMA at Rs.1129.
Data Feeler: Nifty future after a gap up opening following the better global cues had volatile session ahead of Expiry day. Nifty continued to maintain its northward journey with buying seen in the last hour of trades mainly supported by Auto, HC and Oil & Gas sector stocks. Nifty future for the day, if it sustains above 5900 levels then rally may be continued towards 5950 levels whereas sustaining below 5880 levels may see profit booking in the market towards 5850-5820 levels. Looking at the option concentration data for May series, maximum put OI is concentrated at 58 00 followed by 5700 strike prices whereas maximum call OI is placed at 5900 followed by 6000 strike prices. Bank Nifty for the day it has support around 12500 levels whereas the immediate hurdle area is around 12800-13000 levels.
Put Call Ratio based on Open Interest of Nifty moved down from 1.22 to 1.05 levels. Historical Volatility of Nifty moved up from 19.1 to 19.42 levels and Implied Volatility also moved down from 15.1 to 14.38 levels.
Market witnessed buying interest especially in Auto, HC, Oil & Gas, Metal, Banking, Power, PSU, CG and FMCG sector stocks whereas selling pressure was seen in IT, Tech, Realty and CD space. Nifty future closed at premium of 6 points as compared to discount of 2 points in previous trading session.
The market turnover increased by 47.33% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees increased by 48.9%.
Derivative Calls: Buy on ULTRACEMCO and M&M.
MARKET OUTLOOK
NIFTY (5916): CNX Nifty gapped up on Thursday (5844.30-5853.30) and made a higher high and a higher low yesterday too as has been doing the same for the past seven trading sessions. Nifty closed above 5900 suggesting that it has now broken the short term resistance around the psychological 5900 levels. Nifty has closed above all its moving averages after 30 trading sessions and now looks good to target 6000-6100 on the upside and move towards its 52 week high levels. For the day if Nifty crosses 5950 on the upside then a rally towards 5980-6050 cannot be ruled out. Failing to cross 5980 the index could witness some profit booking till 5870-5840 levels and till such time Nifty keeps making higher highs and higher lows, the trend is likely to remain on the upside. May Month derivative contract is bit long with almost 24 trading days so traders should always follow strict stop loss levels and trailing Stop loss levels as we have seen sharp rally in last 7 days.
SENSEX (19407): Sensex closed higher yesterday as traders rolled over their positions from the April, 2013 series to the May, 2013 series. For the day, Sensex holding 19250 on the down side and crossing 19575 on the upside could be a major positive trigger for the index as this could open up possibilities of 19800-19900 in the days to come. On the flip side, the index struggling to hold onto 19250-19230 levels could see some profit taking till 19100-18900 too.
TECHNICAL CALLS
BUY DRREDDY Rs.1992: DRREDDY has made all time high of Rs.2000 crossing previous high of Rs.1970 after gap of 60trading days with very high volume and looks very good to target Rs.2150 & 2300 on higher side. It has been trading above all major moving averages such as 200DMA at Rs.1774, 100DMA at Rs.1858 and 50DMA at Rs.1836. DRREDDY is buy on any dip for 8-10% rally in next 3-4weeks.The stock has taken support at the lower trend line support of the ANDREWS PITCHFORK around 1750 levels.
BUY HINDZINC Rs.118: HINDZINC has closed above its 50DMA Rs.117, and looks very good to target Rs.125 on higher side. Stock 2013 high Rs.143 and has corrected till 2013 low of Rs.106 made on 17th April2013 and now sharp recovery with good volumes are seen suggesting good buying in the stock.
News:
Ø Jet Airways has agreed to sell a 24% stake to Abu Dhabi based Etihad for $369 million (Rs. 2061 Crs), valuing the Indian company at Rs.8545 Crs, a 72% premium to its market capitalisation of Rs. 4954 Crs.
Ø Bharti Airtel will share part of its submarine cable network with Reliance Industries' telecom arm.
Ø India's first plant to purify sea water has run into rough weather with its foreign partner Spain's Befesa Agua suing infrastructure company IVRCL for violating the shareholder pact underpinning their joint venture. Sentimentally Negative for IVRCL
Ø Tata Communications said it has partnered with Mercedes AMG Petronas, to deliver trackside connectivity for the team at all Formula One race locations..
Ø Tech Mahindra has acquired a Sweden-based Type Approval Lab for undisclosed amount.
Ø Union Bank of India will be deploying the $350 million it raised through a bond sale for lending at its international branches.
Ø Denso Corporation has announced acquisition of 51% share in Pricol Components Ltd, a subsidiary of Pricol Ltd to produce instrument clusters for passenger vehicles in India.
Ø Maruti Suzuki India will consider amalgamation of the company's seven wholly-owned subsidiaries with itself at the upcoming board meeting.
Ø Jsw steel plans to bid for iron ore mining blocks in Karnataka that could go up for auction after a Supreme Court order.
Ø Liberalising investment norms for the oil and gas sector, RBI allowed state run ONGC Videsh (OVL) and Oil India (OIL ) to invest in their incorporated overseas entities for exploration and drilling of oil and natural gas
Ø The Bombay HC has ordered Angola-based Sanzi Commercio to stop selling whiskey using the brand name Sonate and pay Rs. 1 lakh fine to Tilaknagar Industries for infringing its trademark and copyright of its Senate brand.
Ø BSE and NSE have identified 39 scrips to be shifted to the restricted trading category with effect from April 29, as a part of a surveillance review.
Key events for the day:
Ø Board Meeting for Q4 Results : Bata India, Biocon, CanfinHome, Cera, Delta Corp, IDBI Bank, Idea Cellular, Jindal Steel, IBREALST, Hind Zinc, Strides Arcolabs, Rallis India, United Phosphorus, Esab, Gillette, L&T Fin, Oil Countub, PGHH & Vesuvius.
Ø Release of EUR Spanish Unemployment Rate.
Ø Release of Prelim GDP in UK.
Ø Release of USD Unemployment Claims.
Ø Nifty future after a strong pullback run finally take some pause at higher levels with profit booking seen in selected sector stocks however index finally managed to close marginally positive. Nifty future for the day, if it sustains above 5850 levels then rally may be continued towards 5880-5900 levels whereas sustaining below 5820 levels may see profit booking in the market towards 5780-5750 levels. Looking at the option concentration data for May series, maximum put OI is concentrated at 5500 strike price and maximum call OI is placed at 5900 strike price suggesting broader range could be in between 5500-5900 levels. Bank Nifty for the day it has support around 12400 levels whereas the immediate hurdle area is around 12800 levels.
Ø Put Call Ratio based on Open Interest of Nifty moved up from 1.17 to 1.22 levels. Historical Volatility of Nifty moved down from 19.69 to 19.1 levels and Implied Volatility also moved down from 15.54 to 15.1 levels.
Ø Nifty future saw decrease in OI by -0.4% with a rise in price by 0.17%. Market witnessed buying interest especially in HC, IT, Oil & Gas, Tech and Auto sector stocks whereas selling pressure was seen in CG, CD, Realty, Banking, PSU and Metal space. Nifty future closed at discount of 2 points as compared to discount of 2 points in previous trading session.
Ø The market turnover decreased by 1.8% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees decreased by 1.2%.
Ø Derivative Calls: Buy on DRREDDY & RELIANCE IND
MARKET OUTLOOK
NIFTY (5837): CNX Nifty made double top 5844 but managed to close marginally higher on a day where Nifty traded mostly negative ahead of the expiry for the month of April 2013, crossing 5845 then 5950 on higher side opens. Today Nifty crossing 5845 is important for targeting 5914 & 5950 on higher side while failing to cross 5810 then important support comes around 5765 & 5710 today derivative settlement would keep market volatile. Global markets have been positive and SGX Nifty pointing to higher opening and Monsoon announcement likely today could keep market buoyant. Nifty has rallied from 5477 to 5844 almost 367Points in 8trading session, so if we don't cross 5864 on closing basis then caution is advised. Nifty is trading above 200DMA 5667 & 50DMA 5765 while marginally below 100DMA 5861.
SENSEX (19179): Sensex closed a flat after a tough day of trade on Tuesday. Today Sensex has to cross 19250 on a closing basis to support the ongoing uptrend in the short term. Failing to cross 19250 and drifting below 19040 could spell trouble for the index as people trapped on the long side would try to liquidate their positions to avert losses, as the derivatives contracts expire today.
TECHNICAL CALLS
BUY JKCEMENT Rs.259: After correcting from 369 to 242 levels the stock has formed a solid base around the 240-250 zone. Now the stock looks ready to take off towards its previous highs as there is an evident trend reversal in the stock as it is a falling trend line breakout candidate and could surpass 280-285 levels in the days to come.
BUY TALWALKARS Rs.146 : TALWALKARS has closed above its 20 DMA levels at 141.60 levels and now the stock looks good to rally towards 180 in the days to come. The stock has seen some accumulation from lower levels with good volumes in the recent past. The stock clearing the 50 DMA at 154 levels can rally smartly towards the mentioned target levels soon.
News:
Ø The cabinet committee on investment (CCI) cleared 13 power projects and 25 oil blocks, which will provide much needed to boost to the struggling power and oil and gas sectors. Out of 20 projects, CCI cleared 13 power projects worth Rs 33,000 Crs, which were stuck due to various reasons including environmental concerns.
Ø Transformers and Rectifiers (India) Ltd (TRIL) has received Rs 296 Crs order from the state power transmission company, Gujarat Energy Transmission Corporation Limited (GETCO) for supply of 392 units of transformers.
Ø Cadila Healthcare's board has approved the merger of Zydus Animal Health Ltd (ZAHL), Liva Healthcare Ltd (LHL) and Zydus Pharmaceuticals Ltd (ZPL) with itself.
Ø Ultratech Cement in final talks to buy Jaypee's 2 Gujarat plans for EV of Rs 4100 Crs.
Ø Tata Steel plans to raise $250-500m debt in Singapore dollars through subsidiary to repay earlier loan.
Ø SBI to make some strategic announcement today.
Ø Ashok Leyland and its two investment arms - Ashley Holdings Ltd and Ashley Investments Ltd - have infused around Rs 45 Crs in Ashok Leyland UAE LLC.
Ø Videocon Industries announced that a significant amount of natural gas has been discovered in offshore Rovumal block, Mozambique.
Ø GMR Infrastructure is learnt to have filed qualification documents for a formal bid to develop 17.5-billion peso ($425 million) Mactan-Cebu International Airport project in the Philippines.
Ø IL&FS has received a Letter of Intent (LOI) from IPTF, Fujairah, FZC for oil pipeline work at Port of Fujairah for an amount of Rs 71.4 Crs.
Ø Havmor Ice Creams has tied up with another homegrown pharmaceutical major Zydus Wellness, for sourcing ingredients for its latest 'Sugar Free' range of ice creams. Also, the tie-up would allow Havmor to use the 'Sugar Free' brand owned by Zydus for its ice creams.
Key events for the day:
Ø Board Meeting for Q4FY13 results of: HDFC Bank, M&M Financial, Indiabulls Securities, Coromandel International, AP Paper, Binani Industries.
Ø Release of Flash Manufacturing & Service PMI data in Euro Zone.
Ø Release of Flash Manufacturing PMI, HPI, New Home Sales data in US.
MARKET OUTLOOK
NIFTY (5834): CNX Nifty made a higher high and a higher low yesterday and has been doing the same for the past five trading sessions. Nifty closed above 5830 suggesting that it has broken the short term resistance pegged at the psychological 5830 levels. Nifty has closed above its 50 DMA after 28 trading sessions and now looks good to target 5877 on the upside which is also near 100 DMA 5860 level. For the day if Nifty crosses 5860 on the upside then a rally towards 5900-5920 cannot be ruled out. Failing to cross 5860 the index could witness some profit booking till 5780-5750 levels and till such time Nifty keeps making higher highs the short term tr end is likely to remain on the upside. M&MFINANCE Rs.212 is near major triangle break-out above Rs.215 stock can soon cross all time high of Rs.244.45.
SENSEX (19170): Sensex closed higher on Monday as a stunning leg of rally during late in trade, yesterday took the index above 19150 levels. Now if the index holds 19100 then a rally till 19700-19800 cannot be ruled out in the days to come as shorts will start covering their positions if the critical resistance at 19250-19280 is taken apart in tomorrow's trading session and with just two days to go for the derivatives settlement , volatility is expected.
TECHNICAL CALLS
BUY CUMMINS INDIA Rs. 504 : CUMMINS has been consolidating in a tight range of 480-520 for many trading sessions and now the stock has been observed to be making higher lows for the past five trading sessions which suggests that a big breakout is on the cards anytime now ,which cannot be ruled out. The stock is trading above all moving averages and looks good for a rally till 545-550 in the day s to come.
BUY BAJAJCORP Rs.238 : BAJAJCORP has made a cup and handle formation on daily charts and now looks good for a rally towards 255-260 in the days to come. The stock is trading above all moving averages and is also making higher highs and higher lows from the past five trading sessions.
Data Feeler: Nifty future witnessed gap up opening following the better global cues and then northward journey remained continue towards 5840 zone. Nifty has been witnessing sustained buying interest since last week with gain of around 340 points from 5500 zone; traders should now be little bit cautious while making fresh long positions in the Index at current levels as Risk- Reward is not favorable however stock specific move may be continued. Nifty future for the day, if it sustains above 5820 levels then rally may be continued towards 5850-5880 levels whereas sustaining below 5800 levels may see profit booking in the market towards 5750 levels. Looking at the option concentration data for April series, maximum put OI is at 5600 followed by 5700 strike prices and maximum call OI is shifted at 5900 followed by 5800 strike prices. Bank Nifty for the day it has support around 12400 levels whereas the immediate hurdle area is around 12800 levels.
Put Call Ratio based on Open Interest of Nifty moved up from 1.15 to 1.17 levels. Historical Volatility of Nifty moved down from 19.88 to 19.69 levels but Implied Volatility moved up from 15.27 to 15.54 levels.
Nifty future saw decrease in OI by -2.44% with a rise in price by 0.86%. Market witnessed buying interest almost across the board especially in CD, Realty, CG, Banking, Metal, Power, PSU, FMCG, Auto and HC sector stocks whereas selling pressure was seen only in IT & Tech space. Nifty future closed at discount of 2 points in previous trading session.
The market turnover increased by 4% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees increased by 4.57%.
Derivative Calls: Buy on GODREJIND & BHEL.
News:
Ø Reliance Communications said it is no longer in talks with Bahrain Telecommunications Co (Batelco) for selling a stake in its enterprise business unit. Instead, the company said, it is in talks with a private equity consortium that included Samena Capital and hoped to complete the deal by May-end.
Ø Two state-owned steel makers - Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) have evinced interest to be NMDC's joint venture partner in the Rs.15,525-crore proposed steel project at Nagarnar in Chhattisgarh.
Ø Tata Power plans to set up a 28.8 MW solar plant near Satara, Maharashtra this fiscal, as a part of its strategy to meet its clean energy capacity target.
Ø Muthoot Fincorp is targeting to nearly double its micro-lending business to Rs.600 crore this fiscal from Rs.330 crore in FY14.
Ø Cairn India plans to invest Rs.5,000 crore on its Rajasthan oil fields in three years to 2016 under a new integrated development plan, even as it seeks extension of block contract beyond 2020.
Ø Work at auto-major Mahindra and Mahindra 's engine manufacturing facility at Igatpuri near Nashik, which has been stalled for the last 13 days following the "tools down" agitation by workers, is likely to resume from tomorrow with the management agreeing to reinstate two suspended employees.
Ø Kolte-Patil has its eye set on Mumbai and Bangalore. Expansion in these new cities will help the company in margin expansion from 35 percent to atleast 40-45 percent.
Ø United Breweries completes Scottish & Newcastle merger.
Ø BPCL announces new gas discovery in offshore Mozambique.
Ø HP may sell stake in Mphasis.
Ø Sesa Goa expect to start production in Karnataka by May. Company is awaiting forest clearance from environment ministry. Hope to get environmental clearance from MoEF.
Ø PC Jeweller plans to open around 20 new showrooms in the country by the end of the current financial year.
Key events for the day:
Ø Board Meeting for Q4FY13 results of: Cairn India, Ultratech Cement, Mindtree, Persistent, Tamilnadu Petroproducts, Mahindra Life, Swaraj engines, Tata Sponge, Zensar Tech, Foseco, Manali Petrochemicals.
Ø India - Parliament session resumes today.
Ø Release of EUR Consumer Confidence.
Ø Release of USD Existing Home Sales.
