Thursday, March 24, 2011

Market Outlook: Indian markets are expected to open flat in positive terrain

Market Outlook: Indian markets are expected to open flat in positive terrain on the back of supportive global cues. US markets end higher; crude at two and half year high and Asian markets trading firm; Hang Seng, Straits Times gain. Overall outlook for the markets today is that of cautious optimism with 5360 levels as a major support.

Global events to watch

Þ Jobless Claims.

Þ Durable Goods Orders

Global indices Update @ 8:

Dow Jones : 12086 (+67.39)

NASDAQ : 2698 (+14.43)

Nikkei 225 : 9430 (- 18.97)

Hang seng : 23001 (+175.8)

SGX CNX Nifty : 5514 (+11.50)

INR / 1 USD : 44.96

Technical outlook: Sensex surged higher levels on second consecutive day. After opening lower, Sensex rebounded on back of strong bounce in heavyweight stocks like Bhel, SBI, and Ril and rose to day’s high at 18218.28. At the end, Sensex closed with 217 points gain and Nifty closed with 66 points gain.

The formation of another bullish but huge candle indicates strength in the market. In such a case, Sensex’s trade above trend line levels which is 18250 remains important to watch. Sensex will see 18500 again if it succeeds to hold and sustain above 18250 levels. Failure to this will creates the possibility of fall below 18k in Sensex.

In intraday, 18470 in Sensex, 5540 in Nifty will act as strong resistance levels for the day. If indices fails to holds these levels, they will creates the possibility of fall.

Resistance levels

Sensex ( last close 18206) 1) 18300 2) 18470

Nifty ( 5480) 1) 5515 2) 5565

Nifty Fut. ( 5503) 1) 5540 2) 5580

Bank Nifty ( 10990) 1) 11050 2)11150

Support levels

Sensex 1) 18040 2) 17900

Nifty 1) 5435 2) 5380

Nifty ( Fut) 1) 5460 2) 5420

Bank Nifty 1) 10900 2) 10800

Stocks in Action for the day: Cairn India, India Infoline, Mahindra Satyam, Wockhardt

SBI bonds listing: Dalal Street debut yields 3% returns: SBI's retail bonds traded the highest ever for a fixed income security on debut on bourses, yielding 3% returns for investors, but it may not yet be the beginning of evolution of a vibrant bond market which regulators and the government are hoping for.

ONGC seeks Cairn's approval for KG basin discoveries: Cairn, whose $9.6-billion stake sale in its Rajasthan oilfields to Vedanta has run into a roadblock, appears to have turned the tables on partner Oil and Natural Gas Corporation in their joint venture in the Krishna Godavari basin.

The price of gold may hit USD 5,000 per ounce (Rs 74000/10 gram), nearly three times current levels, in three to four years, as demand from sovereign states, central banks and exchange-traded funds (ETFs) rises, the chairman of two Canadian gold mining companies. Gold is traditionally used as a hedging tool against inflation and economic uncertainty. The yellow metal has also been a favorite investor hedge against loose monetary policies in the wake of the global financial crisis’s.

India Infoline has received SEBI final approval for IIFL Mutual Fund. This will enable the company to launching mutual fund schemes in due course.

Acropetal Technologies has entered into definitive agreements to acquire 100 per cent equity in Line Beyond Inc and 70 per cent stake in Optech Consulting Inc for $ 4.90 million each. Both the companies will become subsidiaries of Acropetal Technologies April 01, 2011.

Global Offshore Services’ vessel M.V.Beaucephalus has been awarded a four year contract in Brazil. The approximate annual value of the contract is Rs 49 crores. The company is a wholly owned subsidiary of Garware Offshore Services.

Mahindra Satyam is gearing up for a long legal battle with the income-tax department. The company on Tuesday moved the Andhra Pradesh High Court, seeking a stay on the proceedings related to Rs 616 crore claim made by the tax department. The claim is based on Rs 345 crores foreign tax credit availed by the then management of Satyam Computer Services.

The ministry of environment and forests renewed its tough position on adherence to green rules by taking on Jindal Steel & Power. Environment minister Jairam Ramesh has asked the Orissa government to take action against the Delhi-based steelmaker for violating forest norms at its proposed plant site at Angul.

The sharp fall in the share price of DB Realty in the past couple of months has forced promoters of the company to pledge an additional 8 per cent stake in the company to cover margin calls from the pledge, ICICI Bank, pushing the total pledged position to around 40% of the company’s shares.

Alembic board will meet on on March 31, 2011 to consider and approve demerger of Alembic Pharmaceuticals.

Shares of Neyveli Lignite slipped lower after reports that the CBI has carried out searches at the corporate office of the company and residential premises of four NLC officials.

Shares of Wockhardt gained momentum after division bench of the Bombay High Court stayed winding up petition filed by the trustees to the foreign currency convertible bonds. Wockhardt has agreed to deposit in court Rs 115 crores by May 03, as per direction of the court.

Golden Tobacco has entered into agreement with Sheth Developers and Suraksha Realty for the joint development and or sale of plots of land owned by the company admeasuring about 31128.48 square meters at Vile Parle, Mumbai.

Shopper'S Stop has opened one store at Durgapur. With the opening of this store, the company has 37 stores under operation. It subsidiary has Crossword Bookstores has opened one Crossword' franchisee store at Sadashiva Nagar, Bengaluru.

Glenmark Pharmaceuticals’ subsidiary Glenmark Generics has received final approval from the USFDA for Norethindrone and Ethinyl Estradiol, USP 0.4 mg/0.035 mg tablets. The product, which provides a continuous 28 day regimen for oral contraception, will be marketed under the trade name Briellyn. According to IMS Health for the 12 month period ending December 2010, this product achieved sales of $30 million.


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