Monday, October 3, 2011

TECHOUTLOOK : Support for the Nifty is at 4820 and resistance at 4980.

Market Outlook: Indian markets are expected to open in a negative terrain and trade volatile on the back mixed trend seen on Asian counters.

On the global space: Wall St Week Ahead: Europe, China woes fuel earnings fears. Investors are worried US earnings growth may finally fall back to earth as turmoil in Europe and signs of a less robust Chinese economy hurt foreign support. The euro zone's debt crisis and weakness in China have fueled investor concern that the global economy could tip back into recession, possibly dampening US earnings growth at a time when the US economy is still struggling to gain ground

Asian markets trading lower; Hang Seng shed 3.8%.

Europe: European markets too were weak, the FTSE closing 1.32% lower and the CAC too pulled down by the negative sentiment with regard to the French banks. All of them closed badly. In fact, news from the Eurozone is even more worrying now. The inflation rate in the region has jumped up 3% in September on a month-on-month basis. Also, Greece has now come out with a statement that they will be defaulting on their debt this year and budget deficit is likely to come in 8.5% of GDP, missing the 7.6% target set by the EU and IMF. The finance ministers of the Eurozone are scheduled to meet at Luxemburg shortly.

Back to Indian Markets are following global cues, so we continue to hold a cautious outlook with support 4820 and resistance at 4980.

Global events to watch for today:

Þ Motor Vehicle Sales.

Þ ISM Mfg Index.

Þ Construction Spending.

Global indices Update @ 8:

Dow Jones : 10913 (-240.6)

NASDAQ : 2491 (-65.36)

Nikkei 225 : 8503 (-196.4)

Hang seng : 16890 (-701.8)

SGX CNX Nifty : 4849 (-82.00)

Gold (USD/t oz.) : 1636 (+13.8)

Nymex Crude (F) : 78.45 (-00.75)

INR / 1 USD : 48.92

TECHOUTLOOK : Support for the Nifty is at 4820 and resistance at 4980.

Call for the day :

BUY Tatamotors SL 150 Tgt 168.

SELL Maruti SL 1095 Tgt 1055/1040.

Stocks in action for the day: ADAG counter, Auto counter, BHEL, Glenmark.

ADAG stocks could see some traction since the CBI gave the group a clean chit in the Swan case over the week.

Eye on the metal and mining pack for an after effect of the new mining bill that calls for sharing of profits and royalty with the local communities.

The auto stocks are one to watch out for, considering that the entire pack, excluding Maruti, has posted good auto sales numbers even during a dismal September..

Tata Motors sales up 22% at 78,786 in Sept: Tata Motors today reported 22% increase in total sales during September to 78,786 units, but sales of its small car Nano declined 47%. The homegrown firm's total passenger vehicles sales in the domestic market stood at 26,319 units in September, up 10.22% from 23,877 units in the same month last year. The company's small car Nano's sales stood at 2,936 units during the month, down 47%.

Maruti Suzuki sales down nearly 21% in Sept: The country's largest car maker Maruti Suzuki today reported a 20.8% decline in sales for September to 85,565 units due to labour unrest at its Manesar plant that severely affected production. The company had sold 1,08,006 units in the same month last year, The company's total passenger car sales in the domestic market dipped 17.8% to 66,667 units in September from 81,060 units in the same month of 2010, it added.

BHEL files papers for FPO with Sebi: Notwithstanding volatile market conditions, BHEL today filed initial papers with regulator Sebi for the follow-on public offer that will see the government offloading its 5% stake in the company. The sale of government's 5% stake in the power equipment maker is expected to fetch over Rs 4,000 crore. The government in July had appointed four merchant bankers -- Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital -- for BHEL's follow-on public offer.

Glenmark. The New Jersey court has rejected the company's claim of double patenting of Tarka. The company may stand to lose up to USD 16 million as penalty to Abbott.


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