Thursday, March 17, 2011

Market Outlook: Indian markets are expected to open with a gap down

Market Outlook: Indian markets are expected to open with a gap down taking cues from the global destructive sentiments. On the global markets US mkts plunge to 2011 lows on nuclear crisis in Japan and Asian mkts trading weak; Nikkei slips 2%, Hang Seng down. As the West Asian crisis gained momentum in Libya, Bahrain and other countries, oil witnessed volatile trading. US crude jumped to USD 98 while Brent traded around the USD 110 per barrel levels. Overall outlook for the markets today is that of cautious optimism with 5420 levels as a major support.

Global events to watch

Þ Consumer Price Index

Þ Jobless Claims

Þ Industrial Production

Global indices Update @ 8:

Dow Jones : 11613 (- 242.1)

NASDAQ : 2616 (- 50.51)

Nikkei 225 : 8903 (- 189.8)

Hang seng : 22277 (- 423.4)

SGX CNX Nifty : 5477 (- 52.00)

INR / 1 USD : 45.18

Technical outlook:

Sensex recouped all its previous days losses by gaining 191 points. Following strong recovery in Asian market, Sensex opened with upside gap at 18263 and traded within 200 points range throughout the day. At the end, it closed at 18358 with the gain of 191 points.

The formation of “body gap up” bullish continuation candle with upper shadow pattern indicates selling pressure on upper side levels. In case, if Sensex succeeds to hold above 18450 and sustain above 18560 then Index will test 18700 or more levels in coming trade. On the other hand, if it fails to hold above 18560 and remains below 18450 then it will creates the chance of at least intraday correction below 18200 mark.

In intraday, 18560 in Sensex , 5565 in Nifty will act as resistance for the day. If indices fails to holds these levels, they will test 18200 and 5460 in the form of intraday correction.

Support levels

Sensex ( last close 18358) 1) 18200 2) 18080

Nifty ( 5511) 1) 5460 2) 5420

Nifty Fut. ( 5529) 1) 5475 2) 5435

Bank Nifty ( 10983) 1) 10860 2)10730

Resistance levels

Sensex 1) 18460 2) 18560

Nifty 1) 5540 2) 5570

Nifty ( Fut) 1) 5555 2) 5585

Bank Nifty 1) 11050 2) 11150

Stocks in Action for the day: Hero Honda, HEG, Cals Refineries, Educomp, IVRCL Infra, Voltas, Central Bank, Asian Paints, DRL, SRF, GMR

Hero's new identity costs Rs 100 cr; new name and logo on products: Hero Honda has set aside a kitty of Rs 100 crore to create a new brand identity that will lead to a new company name and corporate logo to be etched on every bike and scooter it sells in the Indian market

Mukesh Ambani on Bank of America board, first non-American member: Billionaire Mukesh Ambani , chairman of India's most valued company Reliance Industries or RIL, has joined the board of the Bank of America Corporation, the largest US lender by assets. Mr Ambani's nomination will be ratified at the bank's annual meeting of shareholders.

HEG has approved buy-back of shares of upto Rs 67.50 crores from investors at maximum price of Rs 350 per share.

Integra India Group has decided to borrow in the form of inter-corporate loan a sum of Rs 3 crores from group company Schlafhorst Engineering.

Cals Refineries has entered into agreement to purchase the Cenco and Atas refinery equipments, on a refurbished basis, from certain affiliates of Hardt GroupGmbH. The payment for these equipments will be made through Global Depository Receipt for $317 million and the balance $100 million will be paid in cash at a later date.

Educomp Solutions has bagged multimedia content development project from Government of Gujarat and Assam.

GEI Industrial Systems has secured orders worth Rs 450 million for supplying air cooled vacuum steam condensers.

IVRCL Infrastructures & Projects has bagged orders valued at Rs 564.62 crores.

Voltas has launched its new range of air conditioners in the range of 0.75 ton to 3 tons. The company plans to enter the market with a set of 70 air-conditioners.

Shipping Corporation of India has taken physical delivery of its Aframax size Tanker - "m.t. Desh Samman" of 114683 DWT capacity.

Tecpro has bagged orders worth Rs 188 crores from SAIL, Tamil Nadu Generation and Distribution and Gujarat State Electricity Corporation.

Eid Parry India has fixed March 25, 2011 as the record date for interim dividend if approved by the Board.

Dr Reddy's Labs (DRL) -Goes ex scheme of arrangement -Scheme of arrangement for Unsecured Redeemable Non Convertible Bonus Debentures -Quantum is Rs 506 cr –but not exceeding Rs 520 cr-Ratio of 6 paid unsecured redeemable non convertible bonus debentures of Rs 5 for every share of Rs 5 each -Coupon Rate of 9.25% on debentures payable annually -Debentures will be redeemable at the end of 36 months from date of allotment -March 18 fixed as Record Date

SKS Microfinance -Not To Go For Corporate Debt Restructuring -To Look At Fund Raising From Banks, NBFCs

Cairn & Petro Min Discuss ONGC Royalty Issue yesterday -Cairn & Petro Min Also Discuss Apr 15 Deal Deadline --Petro Min, FinMin Seem Open To Reducing ONGC Royalty -“Mood In Govt Is To Somehow Make The Deal Go Through” -ONGC Will Not Benefit If Cairn-Vedanta Deal Fails -“If Deal Fails, ONGC Would Continue To Pay High Royalty” -“Good Opportunity To Reduce Burden Of Maharatna PSU”

Bill Gammell -Awaiting Clarity From Govt On Vedanta Deal -Not To Go To Shareholders For More Time On Vedanta Deal

TCIL stake sale -DoT May Revisit TCIL Stake Sale In Bharti-Hexacom JV -DoT To Conduct Threadbare Analysis Of Stake Sale -DoT To Recommend If GoI Should Proceed With Stake Sale – Bharti Airtel & Punj Lloyd In Fray For Buying Stake -DoT May Not Proceed With Single Bidder Cabinet Approved Sale Of TCIL's 30% Stake In JV -Reserve Price For Stake Sale At `1,802 Cr – Bharti Airtel Has Withdrawn Bid Over Sale Delay Other stocks and sectors that are in news today:

Jyothy Labs acquires 14.9% equity of Henkel India Ltd from Tamil Nadu Petro at a price of Rs. 35/- by way of off mkt transaction for Rs 60.73 cr

India Hotels to sell stake to Singapore incorporated Omega TC Holdings Pte for Rs 150 cr (BS)

GMR, GVK, JSW Energy in race to develop the Rs 3000 cr Tadadi port project in Karnataka with a capacity of 34.1 mtpa (BS)

SRF Ltd buyback opens today, buyback at max Rs 380/sh

Tata Power to buy stakes in mines in Indonesia, South-Africa, Mozambique & Australia to offset shortage & boost generating capacity (Mint)

Mindtree loses contract from Japan based Kyocera resulting in a quarterly revenue loss of Rs 11 cr (DNA)

Tech Mahindra forays in Cloud Services

Asian Paints: wholly-owned subsidiary, Berger Paints Bahrain impacted by state of emergency in Bahrain

Central Bank: ex rights 3:5

Suzlon and Orchid chem in F&O ban

Losses on Diesel sales touch Rs 15.79/litre as govt continues to bar them from raising rates in line with spurt in cost of crude oil (ET)

Cane Fair Price raised by 4.2% to Rs 145/quintal for the 2011-12 season starting October (ET)

Karur Vysya Bank’s rights issue of 3 cr equity shares at Rs 150/sh close today (BS)

IDFC tax-saving long-term infrastructure bonds Issue extended till 21st March 2011 (earlier 16th March)

Listing of Equity Shares of Dhunseri Investments Limited pursuant to Scheme of Arrangement on 18th


No comments: