Monday, March 21, 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 5320 levels as a major support.

Global events to watch

Þ Existing Home Sales

Global indices Update @ 8:

Dow Jones : 11858 (+83.93)

NASDAQ : 2643 (+07.62)

Nikkei 225 : 9206 (+244.0)

Hang seng : 22574 (+274.3)

SGX CNX Nifty : 5426 (+43.50)

INR / 1 USD : 45.09

Technical outlook:

Sensex slipped another 271.06 points and ended below 18k mark first time in this month. Nifty shaded 72.095 points and closed at 5373.70 levels. After opening in green on back of positive global cues, Sensex could not hold the gain on account of rising price in crude oil and slipped below 18k mark towards day’s low at 17849.53 levels.

The formation of huge bearish candle followed by yesterday’s “body gap down” upper shadow candle indicates further negative trade in the market. As Sensex dragged below 17950, the next immediate support lies at 17720 levels as Trend line’s value. The Opening action failing to hold this level would lead Sensex to re-test of 17469. (Remember, the action below 17300 will lead us to make an end of X wave at 18400.)

In intraday, 17700 on lower side in Sensex and , 5320 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 rally in the market.

Support levels

Sensex ( last close 17878.81) 1) 17700 2) 17490

Nifty ( 5373.70) 1) 5320 2) 5260

Nifty Fut. ( 5383) 1) 5330 2) 5270

Bank Nifty ( 10744) 1) 10600 2)10450

Resistance levels

Sensex 1) 18100 2) 18260

Nifty 1) 5435 2) 5480

Nifty ( Fut) 1) 5445 2) 5490

Bank Nifty 1) 11050 2) 11150

Stocks in Action for the day: Cairn India. SBI Bond, USL, Monnet Ispat, Ashok Ley, PFC.

SEBI clears Vedanta open offer for Cairn: Sources: The Securities and Exchange Board of India (SEBI) has approved the Cairn-Vedanta open offer worth Rs 13,631 crore, which was expected to open on October 11th last year. Sources said that the SEBI will dispatch the 4-page letter of offer in 10 days. London-listed Vedanta had agreed to buy 51% of Cairn Energy's stake in Cairn India last year and an additional 20% is supposed to be acquired by Sesa Goa through an open offer. The open offer price had been announced at Rs 355 per share.

SBI bonds likely to yield 5% returns on Street debut: Largest lender State Bank of India's (SBI) retail bonds , which were bid over four times the offer and were beyond the reach of millions of investors, may yield a 5% return when it begins trading today. The Rs 10,000 face value bonds may be traded in Rs 10,400-10 ,500 range, reflecting the grey market trading value.

ONGC row should not spoil Vedanta deal: FinMin: The finance ministry has said that the government should not arm-twist Cairn Energy by linking the approval of the $9.6-billion Cairn-Vedanta deal with disputes between the British explorer and its estranged partner, ONGC. The deal to sell a controlling stake in Cairn's Indian unit to London-listed Vedanta Resources has been mired in controversy since it was announced in August last year. Cairn said it did not need government approval for the transfer of the Rajasthan block, which produces 1,25,000 barrels per day. Later, it backtracked and sought approval.

Mahindra Lifespace Developers has declared an interim dividend on 10.50% 10,00,000 non cumulative redeemable preference shares of Rs 100 each for the period April 01, 2010 to March 22, 2011.

Thyrocare Laboratories has approved allotment of 25,000/- equity shares of Rs. 10/- each at a premium of Rs 90 per share on preferential basis.

Talwalkars Better Value Fitness has recently opened health clubs in Kota, Ujjain and Pune. With this it has 95 health clubs in 46 towns across India.

Essar Shipping Ports & Logistics has taken delivery of a 1982 Japan built, 136,600 DWT Capesize Dry Bulk Carrier.

Seamec has entered into a contract with National Petroleum Construction, Abu Dhabi, U.A.E for charter hire of its vessel "SEAMEC PRINCESS" for working in Mumbai High. The contract is likely to commence from March 17, 2011 for a firm period of 15 days with option of extension.

Boards of Vardhman Textiles and Vardhman Special Steels have fixed March 30, 2011 as the record date for determining the entitlement of shareholders of Vardhman Textiles to Vardhman Specials Steels. Shareholders of Vardhman Textiles would be allotted one equity share of Rs 10 each of Vardhman Special Steels for every five shares of Rs.10 each held in Vardhman Textiles.

Ranbaxy Laboratories has fully redeemed $440,000,000 zero coupon convertible bonds on March 18, 2011.

Shipping Corporation of India has appointed Dolphin Offshore Enterprises as its subcontractor for providing diving services on board ONGC's two multi support vessels and one geo technical vessel. This contract is for a firm period of one year starting from March 24, 2011 with a value of approximately Rs 580 million with SCI having option to extend it for further 18 months; taking the total potential contract value up to Rs 1450 million over a period of 30 months.

Japan Cabinet Secretary says: DJ -Daiichi Reactors 1-3 Stable Due To Water-Spraying -Mulling Spraying Water Into Reactor 4's Spent Fuel Pool -3-4 Kinds Of Agri Produce Found Contaminated Higher Than Normal Radiation Levels Detected In Fukushima -Ibraki, Fukushima Govts To Investigate, Take Needed Steps

PFC files FPO DRHP with SEBI Sources say -PFC Files FPO DRHP With SEBI; :: To Issue 22.95 Cr Equity Shrs -PFC FPO To Lead To 17.39% :: Equity Dilution -JM Fin, ICICI Sec, BoAML, GS :: Bankers To PFC FPO

RBI slams banks for the misuse of Liquidity adjustment facility in the overnight money market by the means of arbitrage (BS)

Ashok Leyland & Nissan together to invest Rs 2500 cr for setting up a factory to manufacture Light commercial vehicles (BS)

Monnet Ispat acquires the 100 m tonne coal mine in Indonesia (BS)

REC to raise $ 1 billion through a corporate bond issue in the USA (BS)

Central Bank of India issue of 24 cr equity shares at Rs 103/sh opens on March 24 (FE)

Sesa Goa eyes set to acquire another mine in Kolha Roida in Orissa owned by Orissa Minerals Development co (DNA)

United Spirits to invest around Rs 600 cr to set up glass manufacturing plants to rein in volatile input costs (TOI)

Iron Ore prices set to drop on the back of demand cut by Japan Steel cos accounting for about 13 % of global iron consumption (ET)

Western forces pounded Libya’s air defences by launching over 110 Tomahawk missiles in Operation Odyssey Dawn on Sat & Sun (ET)

Libya mulls offering oil block contracts directly to China, India in order to increase production which has fallen to less then 4 lakh barrels per day (BS)


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