Wednesday, March 16, 2011

Indian markets are expected to trade in a range manner i

Market Outlook: Indian markets are expected to trade in a range manner in positive terrian. Wall Street declines; Crude gains from two-week low while Asian markets trading firm; Nikkei gains 4.3% and Japan stocks surge after two-day rout. Brent crude prices tumbled 4.5 percent on Tuesday, the biggest drop in 13 months, as Japan's escalating nuclear crisis sparked risk aversion across markets, outweighing concerns about turmoil in Bahrain and Libya. Overall outlook for the markets today is that of cautious optimism with 5420 levels as a major support.

Global events to watch

Þ Housing Starts

Þ Producer Price Index

Global indices Update @ 8:

Dow Jones : 11855 (- 137.7)

NASDAQ : 2667 (- 33.64)

Nikkei 225 : 8981 (+375.9)

Hang seng : 22598 (- 80.18)

SGX CNX Nifty : 5495 (- 60.50)

INR / 1 USD : 45.27

Technical outlook: Sensex slipped below 18k on back of news of an unfolding nuclear disaster in Japan which led globally sell off. . Following weakness in Asian market, Sensex opened with downside gap and slipped at day’s low at 17920 in early trade. After that it witnessed strong recovery on the back of positive trade in Reliance group but later on weak opening in European market, Sensex faced sell off and closed lower at 18167, down by 271 points.

The action formed High wave candle with upper and lower shadow pattern indicates indecisiveness about the trend. In our view, as Sensex slipped below 0.618% of previous move and bounced back to trade above 18k levels could be good sign for the positive trade. In case, if Sensex succeeds to hold above 17950 and sustain above 18160 then it will continue its rally upto 18700 or more levels. Otherwise, it will try to re-test 17469 by correcting 80% of move which is 17720 levels.

In intraday, 17950 in Sensex , 5400 in Nifty will act as strong support for the day. Successful trade above these levels will creates the possibility of continuation in rise in indices.

Support levels

Sensex ( last close 18167) 1) 17950 2) 17720

Nifty ( 5449) 1) 5390 2) 5320

Nifty Fut. ( 5463) 1) 5405 2) 5335

Bank Nifty ( 10740) 1) 10650 2)10530

Resistance levels

Sensex 1) 18360 2) 18480

Nifty 1) 5510 2) 5545

Nifty ( Fut) 1) 5525 2) 5560

Bank Nifty 1) 10840 2) 10960

Stocks in Action for the day: Suzlon, Mahindra Satyam, Subex, Dhunseri Petrochem

Suzlon Energy’s promoters have sold 4 crore equity shares of Rs 2 each of the company, representing approximately 2.25% of the paid-up capital of the Company. Following this sale, the promoter group's holding in the company stands reduced to 54.84% of the paid-up capital.

Q4 Advance Tax Numbers

Colgate Palmolive Pays `25 Cr Vs `19 Cr (YoY)

ICICI Home Finance Pays `20 Cr Vs Nil (YoY)

Dow Chemicals International Pays `8 Cr Vs `3.5 Cr (YoY)

Videocon Pays `25 Cr Vs `25 Cr (YoY)

Kotak Mahindra Securities Pays `2 Cr Vs `2.1 Cr (YoY)

Allied Digital Pays `7 Cr Vs `2 Cr (YoY)

ILFS Transport Pays `12 Cr Vs Nil (YoY)

SBI Pays `1,500 Cr Vs `1,900 Cr (YoY)

Oberoi Realty Pays `17 Cr Vs Nil YoY)

Shoppers Stop Pays `6 Cr Vs `8.1 Cr (YoY)

Jai Corp Pays `5 Cr Vs Nil (YoY)

Varun Industries Pays `5 Cr Vs Nil (YoY)

Akruti Nirman Pays `5 Cr Vs Nil (YoY)

Prism Cements Pays Nil Vs `33 Cr (YoY)

Alok Industries Pays `26 Cr Vs `18.5 Cr (YoY)

Elder Pharma Pays `4 Cr Vs `1.5 Cr (YoY)

Zero Octa, specialist audit subsidiary of Kale Alliance, has been selected as preferred vendor for sales audit and revenue recovery and protection services for Star Alliance’s member airlines.

Bharat Heavy Electricals Ltd has declared and approved payment of interim dividend @ 132.5% i.e Rs 13.25 per equity share for the financial year 2010-11.

Mahindra Satyam has won a multi-million, multi- year contract from Qatar-based Aspire Zone Foundation to provide onsite and offshore support on various application development and infrastructure services projects. Aspire Zone will also utilise Mahindra Satyam’s expertise in event and venue management technologies as part of its sports event and venue management solution roadmap

ONGC lost a bid to buy Exxon Mobil’s 25% stake in an Angolan oilfield. The company had offered about $2 billion for the stake in Block 31 off Angola’s coast.

Subex has been chosen for a $12 million license contract by a mobile operator group in EMEA to implement its acclaimed and unique platform ROC for Fraud Management and Revenue Assurance. The project is to be executed in next 16-18 months.

Mahindra & Mahindra has completed all formalities related to the acquisition of a minority stake in Ssang Yong Motor Company.

Dhunseri Petrochem & Tea’s Haldia plant is likely to face disruption in operations after fire broke out in its raw material store. The company has adequate insurance coverage, it informed to the exchanges.

Jindal Steel and Power will start iron ore exports from Bolivia's El Mutun mines in next 2-3 months. Considered as one of the world's single biggest iron-ore deposits, the El Mutun mines has reserves of more than 40 billion tonnes and in 2007, the JSPL had entered into an agreement with the Bolivian government for its development.

SAIL which has an existing agreement with Kobe Steel, will extend its relationship with the Japanese steelmaker by jointly building a steel plant and a power unit at Jagdishpur in Uttar Pradesh for Rs 10,000 crore. This is part of a government-prepared plan to revive the steel plant, formerly called Malavika Steel, which was shut in 1998 due to adverse market conditions.

Kingfisher Airlines will go ahead with its plans to raise $300 million (Rs 1,351 crore) through Global Depository Receipt issue despite crisis in Libya casting a shadow over global economic rebound. The company might launch its GDR by the end of the next month if the Libya crisis eases out a bit.

Zuari Industries has acquired 20 lakh shares of Zuari Holdings thus making it 100 per cent subsidiary of the company.

GKW has recommenced production of screws and fasteners at its Pune unit, Maharashtra

Oil Cos To Hike ATF Prices By Avg `3,521.50/kL On Wednesday


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