Friday, March 18, 2011

Market Outlook: Indian markets are expected to open in a positive range

Market Outlook: Indian markets are expected to open in a positive range on the back of global support while higher crude price could keep pressure on rallies. On the global markets US markets gain on positive economic data and Asian markets trading higher; Hang Seng, Nikkei up. Overall outlook for the markets today is that of cautious optimism with 5400 levels as a major support.

Global events to watch

Þ No major events to eye on

Global indices Update @ 8:

Dow Jones : 11774 (+161.2)

NASDAQ : 2636 (+19.23)

Nikkei 225 : 9120 (+158.2)

Hang seng : 22365 (+80.80)

SGX CNX Nifty : 5494 (+15.50)

INR / 1 USD : 45.24

Technical outlook:

Sensex tumbled 208.82 points to end at 18149.87 and Nifty lost 64.50 points to close at 5446.65. Following negative Asian cues, Sensex opened with downside gap at 18227.16 but recovered in next trade and touched day’s high at 18354.27. After that, news of rate hike in mid session, Sensex witnessed selling pressure throughout the sector which led Sensex to close in negative by 208.82 points.

The formation of red “body gap down” candle with upper shadow pattern still indicates further weakness in the trend. In case, as we said earlier if Sensex succeeds to hold 17950 on lower side which is 0.618% correction levels of previous move and sustain above 18150 then it will creates the possibility of rise. In this case, the possibility of Sensex testing 18700 will remain wide open. On the other hand, if it fails to hold above 18150 and remain below 17950 then Sensex will re-test 17469 levels in coming trade.

In intraday, 17950 on lower side in Sensex and , 5380 in Nifty will act as strong support levels for the day. If indices succeeds to holds these levels, they will creates the possibility of pullback ..

Support levels

Sensex ( last close 18149) 1) 18050 2) 17950

Nifty ( 5446) 1) 5415 2) 5380

Nifty Fut. ( 5479) 1) 5445 2) 5410

Bank Nifty ( 10983) 1) 10820 2)10700

Resistance levels

Sensex 1) 18360 2) 18500

Nifty 1) 5500 2) 5545

Nifty ( Fut) 1) 5530 2) 5570

Bank Nifty 1) 11050 2) 11150

Stocks in Action for the day: Deccan Chronicle, Shopper's Stop’s, Apar Industries’, Ramky Infra, ABG Ship, GHCL, Rel Infra, HCL Info

Ramky Infrastructure has secured orders aggregating Rs 288.32 crore across water and waste water and building verticals.

Deccan Chronicle Holdings is launching the Kochi Edition of its English Daily from March 18, 2011.

Procter & Gamble will reduce the price of Whisper sanitary napkins and Pampers diapers starting Wednesday. This decision was made subsequent to the slash in excise duties on sanitary napkins and baby diapers from 10% to 1% in the Union Budget.

Shopper's Stop’s subsidiary Crossword Bookstores has opened one "Crossword' franchisee store at Junction Mall at Durgapur. With these, there are now 68 'Crossword' stores.

MindTree has secured SAP support deal in the UK having been selected by 2e2, Europe’s fastest growing ICT Lifecycle services provider, as a long term applications outsourcing partner.

Tata Communications and the Westin Tokyo are offering free use of their telepresence facilities from Japan. Consumers and businesses with a critical face-to-face communication need will have free-of-charge access to the high-definition video conferencing room in order to stay connected to friends, family or business counterparts across the globe.

Apar Industries’ conductor division has bagged orders worth Rs 2500 millions from Power Grid Corporation of India for manufacture and supply of ACSR conductors. The company has also received orders from other customers for supply of high temperature conductors worth Rs 250 millions.

Hindustan Composites has decided to close the buyback of equity shares from the open market through the stock exchanges with effect from March 18, 2011.

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. The company has shortlisted five agencies -JWT, Draftfcb Ulka, Mudra, Law & Kenneth and Percept H - to create the new brand identity.

Jyothy Laboratories has acquired a 14.9% stake in Henkel India from Tamil Nadu Petro Products for Rs 60.73 crore in an all-cash deal. The deal makes Jyothy the largest Indian shareholder in the struggling Indian arm of Germany's Henkel AG. With Jyothy shelling out Rs 35 a share, the deal values the target company at Rs 408 crore.

Tata Steel aims to raise as much as Rs 1500 crore in the nation’s first sale of rupee perpetual bonds by a non-finance company. JP Morgan Chase & Co and ICCI Bank are likely to arrange the sale.

Venus Remedies has got GCC approval to market its Oncology & Carbapenem range of products in Gulf

Selan Exploration Technology has fixed March 25, 2011 as the record date for the purposes of second interim dividend.

Sources say Cabinet Okays Pension Regulatory Authority Bill PFRDA Bill To Be Introduced In Parliament This Session Cabinet Okays SBI Amendment BillFM Says Will Try To Bring PFRDA, SBI Bills In This Session

ABG Shipyard Co has applied for issuance of Industrial Licence for defence production
FIPB allows max foreign hldg at 21.9% (had made an appolication for 26% to FIPB. currently at foreign eq hldg at 21.9%)

RBI Includes Telecom Towers As Infra Facility For Bank Loans

GHCLBuyback FCCBs worth $0.7m

EPFO: Finance Ministry ratifies 9.5 per cent interest on PF deposits for 2010-11.

Bharti Airtel likely to buy Qualcomm’s Wireless broadband business in India valued at around $ 1.2-1.3 billion with a premium of 25-30% (ET)

GVK, RPower, ICVL to bid for coal assets of the Australia’s largest thermal coal explorers Bandanna energy valued at $ 1.5 billion (ET)

Reliance Infra bagged an EPC order worth Rs 7200 cr from RPower for its 2400 mw gas fuelled Samalkot power plant in AP

HCL Infosystems bags a Rs 300 cr order from Indian Air Force to deploy portable wireless network across various Air Force stations (BS)

SBI to refinance Rs 3000-4000 cr of the total of Rs 9500 cr debt of JSW Ispat (BS)

UBI expects govt to infuse Rs 308 cr by this month end (BS)

Bank of India raises Rs 1000 cr from the govt through preferential issue of shares (BS)

Indiabulls, Lodha in race to buy construction rights from National Textile Corp for about Rs 200 cr (Mint)

Aditya Birla, Essar Oil, Adani Enterprise & Lanco Infratech in race vying for Coal India’s under ground coal gasification project bids (DNA)

Karnataka Bank rights issue of 5 cr shares at Rs 85/sh opens today (ET)

PTC Financial Services IPO closed today (ET)

Shilpi Cable Technologies Ltd IPO opens on March 22 with a price band of Rs 65-69/sh (BS)

BHEL: ex div by 13.25

Suzlon and Orchid Chem in F&O ban

Power Finance Corp OKs draft prospectus for 229.5-mln-shr FPO

Power Grid approves 3 invesmtents aggregating to Rs 4359


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