Fwd: News Views & Events 22nd March 2013

News:

Ø  Oil & Natural Gas Corporation (ONGC) has made three significant discoveries including two in the Krishna Godavari basin and one in Tripura. The company has decided to invest over Rs 4,050 crore to upgrade western offshore facilities through two major projects.

Ø  Fertiliser subsidy payment worth Rs.31,580 crore is likely to remain outstanding to the nutrient manufacturers this fiscal, Parliament was informed on Thursday.

Ø  Sadbhav Engineering has bagged a contract for four-laning of a road project estimated at Rs.1,210 crore. The project is to be executed on design-build-finance- operate-and-transfer pattern under NHDP Phase-III in the state of Haryana.

Ø  Gujarat Sidhee revival plan hits a hurdle. Minority shareholders file plea against BIFR-approved package, saying it favours only the promoter family.

Ø  IT major Wipro said the Karnataka High Court has approved its demerger scheme through which the firm plans to hive off non-IT business. Wipro had announced that it will demerge its non-IT businesses like Consumer Care & Lighting into a new company to focus exclusively on information technology.

Ø  Alstom has bagged a contract worth Rs.573 crore from state-run BHEL for supplying equipment for a thermal power plant at Nabinagar in Bihar.

Ø  Shree Renuka board okays merger of overseas arm (Renuka Commodities DMCC, UAE) with self. Will await for shareholders nod before mergers finalized.

Ø  Kerala govt restrains OMCs from hiking price for diesel supplied to KSRTC (Kerala State Road Transport Corporation).

Ø  Two-wheeler maker Hero MotoCorp has set a capital expenditure target of Rs.1,100 crore for 2013-14 and has put in place a strategy to build upon its leadership position in the domestic market.

Ø  Power Min to LS: Have received 19 Corruption Cases against NHPC From 2010-12.

Ø  Shasun Pharma approves conversion of 15 lakh warrants into equity shares.

Ø  Finance Minister may review Excise Duty hike on SUVs and may examine exempting  certain vehicles from definition.

Ø  Sri Lanka Declares partial seizure of Indian Oil facility. India Voted for the US Resolution on Sri Lanka.

Key events for the day:

Ø  SAIL OFS today. Government fixes floor price at Rs.63/Share. OFS for over 24 Cr shares or 5.82% stake. Govt Owns 85.82% Stake in SAIL.

 

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Fwd: Derivatives Strategist 22nd March 2013

Data Feeler: Nifty future turn out to be an extremely volatile trading day with recovery seen in first hour of trades but in the later half of trading session pullback rally fizzled out from higher levels around 5770 till 5655 levels. Nifty future for the day, if sustains above 5700 levels then only bounce back may be seen towards 5750 levels. Whereas sustaining below 5670 levels may put further selling pressure towards 5640-5600 levels. Looking at the option concentration data for March series, maximum put OI is still intact at 5700 followed by 5600 strikes whereas maximum Call OI is at 6000 followed by 5900 strike price. Fresh call writing is seen at 5800 & 5700 strike prices suggesting immediate hurdle area for the markets in very short term. Bank Nifty for the day has immediate support around 11200- 11000 levels whereas strong hurdle around 11500 levels.

 

Put Call Ratio based on Open Interest of Nifty moved down from 0.89 to 0.83 levels. Historical Volatility of Nifty moved down from 17.64 to 17.61 levels and Implied Volatility also moved down from 17.17 to 16.78 levels.

 

Nifty future saw decrease in OI by 0.45% with a fall in price by 0.89%. Market witnessed marginal buying interest in CD, IT and Tech space whereas selling pressure was seen especially in Realty, Power, CG, Auto, PSU, Oil & Gas, Metal, HC, FMCG and Banking sector stocks. Nifty future closed at premium of 6 points as compared to premium of 21 points in previous trading session.

 

The market turnover increased by 27.17% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees increased by 26.96%.

 

Derivative Calls: Buy on WIPRO & IGL.

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Fwd: First Morning Technical Call 22nd March 2013

MARKET OUTLOOK

 

NIFTY (5659): Nifty closed lowest in 81 trading day's by  closing the Gap-up created on 27^th November 2012 and now below 5645,the Nifty could drift to 5548 & 5490 which could be next possible levels. Nifty after making higher high failed to hold higher levels saw sell-off in Cements, Power sector stocks, PSUBANKS, Capital Goods and Auto stocks. Nifty is already down -3.6% in this week while 9 Stocks down more than 9% down ACC, AMBUJACEM, BANKBARODA, BHEL, DLF, IDFC, JPASSOCIATE, RELINFRA and PNB while heavy weights like MARUTI, L&T, BPCL, HINDALCO, SESAGOA, TATAPOWER, TATASTEEL, COALINDIA, ONGC are down 6-8% with one more day for the week to go. Today Nifty has to hold 5645 and cross 5700 to Target 5750 & 5775 while any move below 5645 then 5590 & 5548 would be very important. Nifty is in very crucial support 5629 which is High of February 2012, 5647 is low of 2013 and low of 4months, and 5599 is 38.2% retracement for Nifty's entire move from 4770 to 6111.80. So for the Nifty 5590-5663 is very crucial in days and week to come. Oil Companies like ONGC, OIL, IOC, BPCL, HPCL are seeing pressure the reason being the hiking Diesel prices post fluid political condition would become dif ficult. 

 SENSEX (18793):  Sensex closed lowest in 81 trading days as the Gap-up Made on 27^th November 2012 still remains pending to be filled . Sensex for the day has hold 18750 and cross 18900 to target 19025 & 19140, Now for the Sensex, a close above 19140 is required for any fresh rally to begin from here on.  Sensex failing to hold 18740 or slipping below the said level can see sustained selling pressure till 18620-18535 on the downside. Sensex is trading below its 100DMA 19329, 50DMA 19552 and 20 DMA 19225 while 200DMA 18515 is very important level to be watched out for in any correction.

TECHNICAL CALLS

BUY BAYERCROP Rs.1101: The stock has made irregular bottom between 1^st March ,2013 with the low being 1040 and 21^st March's  low at 1057 ,almost taking 200 DMA Support on both occasions . BAYERCROP crossing 1120 then Rs.1185 & Rs.1220 are possible target on the stock which is safe bet in volatile market holds good value for long-term investor. 

SELL TATAPOWER Rs.94: The stock has made a Dead Cross, where 200DMA Rs.101 is cut by 50DMA Rs.100 from the above post which the stock has already corrected 6.9% this week and stock looks very weak to target Rs.85 on lower side. TATAPOWER is trading below all major averages 200DMA Rs.101, 100DMA Rs.103 and 50DMA Rs.100. Stock on weekly charts has broken major support now near 41 weeks lowest close.

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