News Views & Events 23rd April 2013

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.

 

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First Morning Technical Call 23rd April 2013

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.

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Derivatives Strategist 23rd April 2013

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.

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