Tuesday, November 8, 2011

TECHOUTLOOK : Support for the Nifty is at 5251 and resistance at 5380.

Market Outlook: Indian Markets is expected to open higher tracking recovery seen in Asian markets while concerns on surging bond yields could stifle debt-ridden Italy’s fund raising ability keeps markets under check. Technically support seen at 5251 and resistance at 5380.

Key earnings to watch: Reliance Infrastructure, Reliance Power, IDFC, Bank of India, Aban offshore, ABB, Aurobindo Pharma, Hindustan Copper, United Breweries, Aptech, Opto Circuits, Welspun India, Godrej industries, Monnet Ispat, Firstsource Solutions, Kernex Microsystems, J Kumar Infra, BOSCH, Kavveri telecom, Nitin Fire Protection Ind, Hercules Hoists, Finolex Cables, Morepen Lab, BF

US Market: US stocks closed a volatile, lightly traded session slightly higher, with sentiment continuing to shift with the latest headline from Europe. Volatility in the stock market has become more closely correlated with shifts in European bond markets, another sign of Europe's influence on U.S. equities. Greece continues to struggle to stay afloat, Italy is emerging as the next big threat.

Global events to watch:

Þ Germany's industrial production data.

Þ U.S. economy: Consumer credit for September.

Global indices Update @ 8:

Dow Jones : 12068 (+85.15)

NASDAQ : 2695 (+09.10)

Nikkei 225 : 8751 (-15.23)

Hang seng : 19780 (+102.8)

SGX CNX Nifty : 5316 (+51.50)

Gold (USD/t oz.) : 1794

Nymex Crude (F) : 95.51

INR / 1 USD : 49.08

TECHOUTLOOK : Support for the Nifty is at 5251 and resistance at 5380.

Call for the day:

Buy Coal India Sl 322 Target 333.

BUY Rpower SL 97.50 Target 104.

BUY Axis Bank SL 1118 Target 1165.

Stocks in action for the day: GMR Infra, Gemini Comm, Rel Power, ONGC.

Oil Ministry says -Revisiting prices of fuel hike left to UPA leadership -'I have reduced excise & custom duty' -Asking the state governments to reduce VAT -Can absorb price hike if Finance Ministry reimburses oil companies' losses -If rupee appreciates significantly will announce oil price cut -Mamata Banerjee is a respected leader; UPA has take a decision

HPCL says -Not heard from govt on potential rollback of petrol price hike -Will reduce prices on own if there is over-recovery -Still have 0.2 paise under recovery so can't reduce prices

IOC says -OMCs have suffered losses of` Rs 2,300 crore in FY11 -OMCs have suffered losses of Rs 2,500 crore this year -Cannot keep absorbing losses -Better to pass on costs than reduce production -Will decrease prices as soon as global oil prices come down

SBI Chairman, Pratip Chaudhuri says: -Govt has put aside Rs 4000 crore for us-Rights issue has not been ruled out

Aviation minister agrees to ease FDI norms; foreign carriers may get to pick 24% stake in domestic airlines (FE)

Glenmark gets over Rs 24 crore payment from Sanofi on completing the 1st phase of molecule study

Goa miners fear a Karnataka like crisis; even as govt may not favour blanket ban (BS)

GMR Infra set to bag Rs 1500 crore Andhra highway project (BS)

Gemini Communications announces buy back at maximum Rs 45/share (CMP: 21.65)

SpiceJet board to meet on November 11 to decide on USD 450 million aircraft order (Mint)

Balaji Amines to invest Rs 70 crore in Solapur unit expansion (BL)

Kerala govt reduces surcharge of 34 paise on fuel prices

Anand Sinha deputy governor RBI says: -Transition to Basel-III will be smooth-To issue draft Basel-III norms by December 31-Hope to finalise Basel-III norms by March end-Savings Bank Rate deregulation can shrink banks' margins-Banks' NPAs rising but don't see any systemic risks Slippages in banks higher than recoveries-Need to have more fixed rate products in banking industry -10 action products agreed under Damodaran committee-Products agreed upon in Damodaran Committee should be taken forward-Banks to gear up for comp due to new bank licences -Asset liability mismatches due to infra finance will affect banks

Post office savings deposits to earn higher interest: Post office savings bank deposits without any fixed maturity will now earn interest of 4 per cent, up from 3.5 per cent now. And interest rates on other small saving instruments such as National Saving Certificate, will be indirectly linked to the market. The new rates could be notified from July 1, 2011 for the current fiscal year.

Axis Bank to step up lending to small businesses Private sector lender Axis Bank today said it will maintain its growth in the Small and Medium Enterprises (SME) segment and is targeting to grow the loan book by up to 25 per cent over the next two years, despite concerns over asset quality in the context of rising interest rates.

The government has stuck to its guns on the petrol price hike. The Petroleum Minister Jaipal Reddy has said that a rollback is possible only if the rupee appreciates or crude prices fall.

Big boy ONGC is riding high on surging crude prices. The PSU major's profits exceeded market expectations with a 60% jump to Rs 8,642 crore. Sales grew 24% to Rs 22,616 crore.

Reliance Power will be in focus today. Sources indicate that it has achieved financial closure for 40 mega watt solar PV project in Rajasthan. The Rs 700 crore project is to be financed at a debt-equity ratio of 75:25. The company will infuse Rs 175 crore into project.

CIL allowed to buy stakes in unlisted foreign companies: Coal India has been allowed to buy stakes in foreign unlisted companies by its parent ministry, paving the way for the world's largest coal mine.

FII investment limit in bonds, G-secs may be hiked by $5 bn: The government is likely to soon raise the investment limit for FIIs in corporate bonds and G-secs by $ 5 billion each, a move that will help the Centre raise funds through market borrowing programme without hurting availability of money for the private sector.

Jaiprakash Associates will mull restructuring of cement operations by November 14.

Essar shipping to list as new company after demerger on November 15.

NTPC targets 1,28,000 MW capacity by 2032: NTPC Ltd hopes to ramp up its generation capacity to over 1,28,000 MW by 2032, up from the installed capacity of close to 35,000 MW.

ONGC board approves acquisition of ADB stake in Petronet.

Motherson Sumi to seek shareholder nod for QIP.


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