News Views & Events 25th April 2013

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.

 

www.myshitphotography.com

Derivatives Strategist 25th April 2013

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

www.myshitphotography.com

First Morning Technical Call 25th April 2013

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.

www.myshitphotography.com