INFY : LONG BUTTERFLY
SELL INFY 2800 PUT @ 104 & SELL 2900 CALL @ 96
BUY INFY 2600 PUT @ 42 & BUY 3100 CALL @ 29
NET INFLOW : 129 POINTS
MAX RISK : 71 POINTS
MAX REWARD : 129 POINTS
LBEP : 2670
UBEP : 3029
(PROFIT - IF INFY REMAINS IN BETWEEN 2670 TO 3029 LEVELS)
News:
Ø Mahindra & Mahindra said that the company experienced stoppage of work at its engine making plant in Igatpuri, Maharashtra.
Ø Tata Steel, India's biggest producer is considering selling some of its UK assets as a weakening economy erodes demand leaving factories underutilized.
Ø BHEL has proposed to set up a backward integrated project for its solar photovoltaic panel business. The company has planned to set up an integrated manufacturing facility for ingots to wafers, cells and panels using crystalline photovoltaic technology.
Ø Telecom, Defence to Lead FDI Drive. Government could also allow foreign companies to hold at least 49% equity in any sector.
Ø KFA lenders to initiate process to liquidate Mallya's assets next week.
Ø Petronet LNG Ltd, India's biggest importer of liquefied natural gas, will take 26 per cent stake in a shipping venture planned to haul gas to its new terminal at Kochi in Kerala.
Ø Eveready Industries India is mulling to form a joint venture with an interested party to develop its Hyderabad and Noida properties, which the company has put on the block for quite sometime now.
Ø Bajaj Auto said it hopes to sell around 2,000 units of the premium sports bike from the Kawasaki Ninja platform launched yesterday, which is priced at Rs.3.5 lakh.
Ø Etihad Airways' purchase of a stake in Jet Airways could be delayed until at least August as the Abu Dhabi carrier seeks assurances following setbacks for several Gulf investors in India.
Ø Siemens has signed a contract worth Rs.104.4 crore with Bangladesh Steels Re-Rolling Mills Limited (BSRM), to build a gas-insulated switchgear (GIS) substation.
Ø Cairn India produced 3.6% less crude oil than the stated target of 175,000 barrels per day from its prolific Rajasthan block in the fourth quarter ended March 31.
Ø IOC's Lanka plans on the table despite Colombo's takeover threat. Colombo is yet to inform Lanka IOC that it would partially take back unused World War II time strategic oil storage depot in Trincomalee.
Ø Tata Motor's, Jaguar Land Rover (JLR) posted a 16 per cent rise in global sales at 53,772 vehicles in March, following an array of new launches. The British car-maker's sales for the month in India rose 28 per cent, compared with the same period a year ago.
Ø Suzlon Group said its subsidiary, REpower Systems, has reached one gigawatt (GW) installed capacity across UK wind farms.
Key events for the day:
Ø Release of EUR French & German CPI m/m.
Ø Release of USD Unemployment Claims & 30-y Bond Auction.
MARKET OUTLOOK
NIFTY (5559): CNX NIFTY made lower low 5477 but recovered smartly to close positive, in the past couple of trading sessions volatility is high with whiplashes of almost 100 odd points during the day. Nifty was highly oversold so a relief rally was on cards as we are in very strong support zone of 5440-5470 and if this rally holds 5650-5720 could be possible before any fresh correction. Nifty for the day has to hold 5520 and cross 5575 to target 5620 & 5665 on higher side while below 5520 then 5480 & 5440 are good support level. Tomorrow we have IIP data & INFY results would be announced with INFY results to be announced before markets open, INFY was at 2322 before result and post results INFY rallied around 29% to make a high of 3009, using options strategies smartly would reduce risk. Our economist expects IIP to contract by 1.8% in Feb'13 due to a drag from electricity and mining production and RBI to cut the repo rate by 25bps on 3 May'13 and continue its liquidity enhancing measures.
SENSEX (18414): Sensex closed higher on a day which was very volatile. Sensex has to hold 18200 on the downside in order to make any up move towards 18600-18650 in the days to come. Sensex has closed positive but has closed below its 200 DMA too. On the other hand, Sensex falling below 18200 can bring in a lot of selling pressure as multiple supports could break if the index doesn't stabilize from current levels.
TECHNICAL CALLS
BUY CORPORATION BANK Rs. 390: CORPBANK has corrected from high of Rs.495 to low of Rs.378 in 57trading days and now looks for a good rally till Rs.413 which is 200DMA or Rs.425 which is 100DMA as good base formation is seen.
BUY DIVISLAB LAB Rs.1030: DIVISLAB after making panic low of Rs.973 has recovered to close around 50DMA Rs.1030 and stock looks very good to target Rs.1100. Stock has corrected from 1234 to 973 and made a strong base to rally 5-6% minimum from current level.
Data Feeler: Nifty future finally witnessed relief rally after five days of continuous fall with buying emerged at lower support area around 5500 levels and a strong short covering rally was seen towards 5680 levels on the back of buying seen almost across the board. Nifty future for the day, if it sustains above 5580 levels may rally towards 5620-5650 levels whereas sustaining below 5550 levels may put selling pressure in the market towards 5500 levels. Looking at the option concentration data for April series, maximum put OI is shifted at 5400 followed by 5500 strike price and maximum call OI is at 5700 followed b y 5800 strike prices. Bank Nifty for the day it has strong support around 11000 levels whereas it has immediate hurdle around 11250-11400 levels.
Put Call Ratio based on Open Interest of Nifty moved up from 0.83 to 0.88 levels. Historical Volatility of Nifty moved up from 17.20 to 17.50 levels but Implied Volatility moved down from 16.82 to 16.71 levels.
Nifty future saw increase in OI by 4.72% with a rise in price by 1.15%. Market witnessed buying interest almost across the board especially in IT, Tech, CG, Banking, Realty, Auto, Power, CD and PSU sector stocks whereas selling pressure was seen only in FMCG space. Nifty future closed at premium of 5 points as compared to premium of 6 points in previous trading session.
The market turnover decreased by 8.8% in terms of number of contracts traded vis-à-vis previous trading day whereas in terms of rupees decreased by 9%.
Derivative Calls: Buy on HDFCBANK & TATA MOTORDVR
