News Views & Events 14th May 2013

News:

Ø  Ranbaxy has pleaded guilty to felony charges related to drug safety and will pay $500 m (about Rs.2740 Crs) in settlement.

Ø  Tata Steel has announced a $1.6-billion goodwill impairment charge for the loss of value of Tata Steel Europe (TSE), formerly Corus, and other overseas assets.

Ø  Bharti Airtel and Loop Mobile have moved the Delhi High Court seeking extension of their licences in metro areas

Ø  Cairn India plans to drill 48 wells at a cost of less than $100 million in the Mangala oilfield in the prolific Rajasthan block to extend the current production plateau

Ø  ONGC and energy major Shell are exploring the possibility of a strategic tie-up to jointly bid for global oil and gas assets,

Ø  Bank of India has planned a Qualified Institutional Placement offer in the second half (October-March) of this financial year, to raise equity capital for its growth. It has estimated a capital requirement of about Rs 6,000 Crs.

Ø  Syndicate Bank has set an ambitious target of 25 per cent growth in the overall business for 2013-14 as compared with 18.1 per cent growth it had achieved in the last financial year.

Ø  Reliance Communications expects its CDMA technology-based mobile business to stop bleeding and start contributing to company's growth within 12 to 18 months.

Ø  Directorate General of Central Excise Intelligence (DGCEI) has issued a show-cause-cum-demand notices to Vijay Mallya-owned firms United Breweries and United Spirits Ltd, for allegedly evading service tax of Rs 91 Crs. 

Ø  Punj Lloyd has bagged ONGC's Rs 730 Crs B-127 cluster pipeline project in Mumbai.

Ø  Vakrangee Holdings Private Limited bought 25,25,000 shares of Vakrangee Software at Rs.74.25/share.

Ø  Shriram EPC Limited has received Rs.126 Crs order from the Chennai Metropolitan Water Supply and Sewerage Board.

Ø  Petronet LNG Ltd has invited bids to build facilities at its proposed 5 million tonnes LNG terminal at Gangavaram in Andhra Pradesh.

Key events for the day:

Ø  Board Meeting for Q4 Results: DRL, Novartis India, Muthoot Finance, Pfizer, Reliance Infra, United Bank, Sun Pharma ADV, Bartronics, DCW, Dwarikesh Sugar, Elder Health, Elder Pharma, HT Media, Jindal Hotel, JSL Inds, Maharashtra Scooters, Mirc Elec, Munjal Auto, Plethico Pharma, Suven Life, Whirlpool

Ø  Release of WPI Inflation data in India.

Ø  Release of Industrial Production data in Euro Zone.

 

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First Morning Technical Call 14th May 2013

MARKET OUTLOOK

NIFTY (5980): CNX Nifty almost made a double top with 6111.80 on 29^th January ,2013 and 6114.55 on 11^th May,2013, Nifty has rallied substantially from 5477.20 to 6114.55 in 21 trading days which is important Turn date where profit booking was seen. Nifty's rally from 5477.20 to 6114.55 has already has retraced 23.6% and now 38.2% comes to 5871 and 50% comes to 5795. For the day Nifty holding 5960 and crossing 6040 to target 6080 & 6111, while Nifty below 5960 could have chances of correcting till 5871-5844 ,which cannot be ruled out. Multiple factors aide d market correction, Market talks of PM stepping down, weak trade data, Fed's exit strategy has been associated with market weakness and RBI probe into COBRA post expose, Banks suppressing alerts on suspect dealings. Exports from India up 1.6% even as trade deficit widens to USD 17.7 bn, Gold and silver imports during the month under review has increased by a staggering 138 per cent to USD 7.5 billion from USD 3.1 billion in April 2012.

SENSEX (19692): Sensex corrected 430 Points almost highest ever single day correction in last 14 months and in the process closing the gap of 19694 caused on 7^th May by making a low of 19667. Sensex rallied from 18144 to 20146 in 18 trading days for which 38.2% retracement comes to 19381 & 50% comes 19145. For the day Sensex has to cross 19840 to negate the corrective move, while below 19660 the index could witness support around 19550 & 19380 levels.

TECHNICAL CALLS

BUY CADILA Rs.805: CADILAHC has closed at its  63 trading days high after making good bottom formation, on weekly making a U-pattern which would complete near Rs.870. The company announces its result on 22^nd May,2013 and hopes are very high on good turn around results. The stock is trading above 50DMA Rs.757 and 100DMA Rs.801.

SELL CANBANK Rs.406: CANBANK is on the process of completing a Head & Shoulder pattern, below Rs.396 the stock would break the neckline, therefore expect a correction of 8-10% from current levels in the stock. CANBANK has closed below 200DMA Rs.422, 100DMA Rs.444 and 50DMA Rs.408.

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