News Views & Events 2nd April 2013

News:

Ø  Jindal Steel & Power Ltd is set to increase investments in an Australian iron ore exploration company and has made significant investments in another coking coal miner in that country.

Ø  IVRCL has sold three of its road assets to a Tata firm, making it the second infrastructure company to successfully sell its projects in the past couple of years.

Ø  UB Holdings has filed a petition in the Bombay High Court, seeking an order to restrain the State Bank of India from selling shares of group company United Spirits pledged with the lender.

Ø  GAIL inks deal with US firm for LNG liquefaction terminal.

Ø  Sebi has disposed of the case against Axis Bank that had alleged the private sector lender of violating various norms, including those related to insider trading as well as regulations for merchant bankers.

Ø  NSE will remove price bands from securities of six companies, including Engineers India and Oil India, from tomorrow. The six companies whose stock will not be subjected to a price band also include Bharat Electronics, Container Corporation of India and Shipping Corporation of India and Gujarat Mineral Development Corporation.

Ø  Timken India  Promoters to sell 42.65 lakh shares via IPP, Price band Rs 115-120/share, Issue opens and closes on April 3rd

Ø  TGP keen to sell remaining 10% stake in Shriram Transport, plans to exit company via block deal at a price not less than Rs 705/share.

Ø  Oil companies have reduced the price of petrol by Rs.1.07 per litre in Mumbai following a decline in international oil prices and a favourable rupee-dollar exchange rate, which also trimmed their revenue losses on diesel substantially.

Key events for the day:

Ø  Release of Flash Manufacturing PMI in Euro Zone.

Ø  Release of Manufacturing PMI in UK.

 

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First Morning Technical Call 2nd April 2013

MARKET OUTLOOK

 

Nifty (5704): S&P CNX Nifty closed positive on 1^st day of new financial year, and last 3days have been positive with beaten down sectors and stock rallying. BSE-REALTY +5.3%, BSE Small Cap +2.3% and BSE Mid-cap +1.28% on news flow, short covering and selective value buying DLF, SHOBA, HDIL, GODREJPROP and UNITECH up 6-8% and IBREALST likely play catch-up. Today Nifty has to cross 5725 failing which selling pressure till 5660 is possible. Weakness could begin in the Nifty only below 5660 where a fresh correction could start otherwise rally till 5788 & 5831 can be possible. Eight core industries shrank 2.5 per cent in February, a worst ever performance in decades, which is likely to result in muted overall factory output numbers. The India Meteorological Department will issue its first forecast of 2013 southwest monsoon in this month. India's manufacturing growth dropped to its slowest in 16 months, according to HSBC Purchasing Managers' Index, which reported a figure of 52 in March. NATCOPHARMA Rs.452 has Gapped-up (Rs.431-435) giving a break-out in daily & weekly chart and looks very good to target Rs.530 on higher side.

SENSEX (18865): Sensex closed positive on Monday, the first trading session of the financial year 2013-2014. Sensex for the day has to cross 18960 and sustain 18900in order to make a possible up move towards 19000-19050 in the days to come. On the other hand, Sensex could witness selling pressure if the index fails to hold onto current levels are not held. On the down side the Sensex slipping below 18700 could open up chances of lower levels like 18600-18550, being revisited.

 TECHNICAL CALLS 

BUY MRF Rs.12074: MRF has been making higher lows for the last 3 trading sessions after bottoming out at around 11350 levels. The stock is trading above its 200 DMA level from where it has taken good support and has made a bullish bat harmonic pattern on daily charts which suggests strength and a possible up move towards   12400-12450 cannot be ruled out. The stock can be bought on dips for higher levels.

BUY BAJAJCORP Rs.232: BAJAJCORP has given a triangle break-out after very long consolidation almost 53 trading days after making all time high of Rs.263.75. Stock looks very good to cross all time and target Rs.283 on higher side. Stock trades above all major averages 200DMA Rs.192, 100DMA Rs.226 and 50DMA Rs.230.

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Fwd: Derivatives Strategist 2nd April 2013

Data Feeler: Nifty future witnessed gap up opening following the better global cues and sustaining above 5700 psychological area it saw short covering rally towards 5740 zone in the first hour of trades. Nifty after a big fall in last few trading sessions may now witness some relief rally towards 5800-5850 levels. Nifty future for the day, if sustains above 5700 levels then bounce back may be continued towards 5750-5780 levels. Whereas sustaining below 5680 levels may put further selling pressure towards 5650 levels. Looking at the option concentration data for April series, maximum put OI is concentrated at 5600 followed by 5700 strike price and maximum call OI is at 5900 followed by 6000/5800/5700 strike prices. Bank Nifty for the day has immediate support around 11300 levels whereas immediate hurdle around 11500 levels and crossing these levels may trigger for next up move towards11650-11750 levels.

 

Put Call Ratio based on Open Interest of Nifty moved down from 0.98 to 0.97 levels. Historical Volatility of Nifty moved down from 16.06 to 15.98 levels and Implied Volatility also moved down from 15.44 to 14.50 levels.

 

Market witnessed buying interest especially in Realty, CG, Power, HC and Banking space whereas selling pressure was seen only in Metal and Auto sector stocks. Nifty future closed at premium of 22 points as compared premium of 32 points in previous trading session.

 

The market turnover significantly decreased by 71.7% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees decreased by 71.3%.

 

Derivative Calls: Buy on HUL & TATA GLOBAL

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