Friday, November 18, 2011

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 5000

Market Outlook: Indian markets are expected to open in a negative terrain on the back of feebling Asian markets. Europe's funding difficulties intensified, with Spanish borrowing costs hitting levels which might not be sustainable. Mounting concerns on Europe debt will keep Indian markets and global markets under pressure.

Key earnings to watch: HMT.

US Market: U.S markets closes negative backed by turbulent affects of European economy. At the same time U.S economic data reflected positive momentum reflecting in the U.S Consumer spending which is up by 0.5% in October and industrial production 11% to the highest level in a year and a half. US claims for jobless benefits hit a seven-month low last week, while permits for future home construction rebounded strongly last month, bolstering views the economy was gaining traction, initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 388,000.

Global events to watch:

  • U.S. leading indicators for October.

Global indices Update @ 8:

Dow Jones : 11770 (-134.9)

NASDAQ : 2587 (-51.62)

Nikkei 225 : 8367 (-112.3)

Hang Seng : 18478 (-339.0)

SGX CNX Nifty : 4890 (-35.50)

Gold (USD/t oz.) : 1722

Nymex Crude (F) : 98.70

INR / 1 USD : 50.72

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 5000

Call for the day:

Sell HDFC Bank SL467 Target 450.

Sell Sesa Goa Sl 198 Target 180

Buy Orchid Chemical SL 145 Target 180-190 (Short term)

Stocks in action for the day: OMDC, Everonn, HCC, Zee Enter, Rel Infra.

Food inflation eases to 10.63%: Food inflation eased to 10.63% for the week ended November 5 even as prices of agricultural items, barring onions and wheat, continued to rise on an annual basis. Food inflation, as measured by the Wholesale Price Index (WPI), stood at 11.81% in the previous week ended October 29. The rate of price rise of food items stood at 11.41% in the corresponding week of the previous year.

Fitch marks Negative outlook for most telcos in 2012: Fitch Ratings said in a special report released today that the 2012 outlook for most Indian telecommunications operators (telcos) is negative, as the nationally-owned and six private telcos will continue to suffer operating losses. Fitch expects that the fifth- and sixth-largest operators may manage to break even in EBITDA terms in 2012.

Govt to take decision on sugar exports on Nov 21.

FII cap in govt, corp debt raised by $5 bn each: The Finance Ministry increased the investment limit for foreign institutional investors (FIIs) in government securities (G-secs) and corporate bonds by $5 billion each, a move that will enhance capital flows and increase the availability of resources for Indian Corporates. The FIIs can now invest up to $15 billion in G-secs and $20 billion in corporate bonds. The investment limit in long-term infrastructure bonds, however, has been kept unchanged at $25 billion. A notification giving effect to the new FII investment ceilings will be issued by market regulator Securities and Exchange Board of India (Sebi) soon.

Suzlon promoters sell 2 pct in firm: The controlling shareholders in Indian wind turbine maker Suzlon Energy on Thursday sold 37.01 million shares, or 2.08 percent in the company bringing down the promoters' stake to just under 53 percent.

Cabinet likely to discuss commerce ministry note on 51% FDI in multi-brand retail next week

Lupin Acquires Japanese Injectables: Lupin Pharmaceuticals has acquired I rom Holdings or IP, an injectable maker from Japan. Kyowa Pharmaceutical, the Japanese subsidiary of Lupin, will acquire 100 % shares of the company

JSW Energy Ltd after the regulatory authorities have rejected JSW Energy's plea to revise power tariffs because of difficulty in procuring fuel from Indonesia, a decision that analysts said was a setback for other companies seeking higher electricity rates on similar grounds.

HCC Ltd after the company has discontinued three of its verticals - thermal power, ports and hydrocarbons - that were started nearly a year ago. The contribution of these verticals to HCC's current order book of roughly Rs 18,000 crore is insignificant.

Everonn Education Ltd after India's largest technology-enabled education firm, is getting ready to enroll more global marquee investors. Global private equity majors such as Carlyle Group and New York Life Capital Partners are in advance talks with the company to pick up a stake, according to a report.

Reliance Infrastructure Ltd after the company said it has repaid external commercial borrowings worth USD 360 million (about Rs 1,815 crore). These borrowings were raised by the company in November 2006.

Finance Ministry -Sources say Rs 30,000 crore fuel subsidy likely in second budget supplementary -Second budget supplementary to be tabled in winter session -Rs 14,000 crore bank recap also likely in second supplementary

OMDC (Orissa Minerals Development Company): Board to meet consider stock split

MERC rejects JSW Energy’s plea to raise tariffs – Reports

HCC to discontinue thermal power, ports & hydrocarbon verticals (ET)

DoT wing asks to cancel Idea’s overlapping licences (ET)

Zee Entertainment in talks with Time Warner & Comcast corp to expand distribution & presence in USA (DNA)

Road ministry plans to remove cap on number of bidders for EPC projects (FE)

Railways may seek new bids for engine projects (Mint)

GAIL, HPCL ink pact with WB govt for supplying coalbed methane gas (Mint)

Reliance Infrastructure says repaid Rs 1,815 crore overseas debt on Wednesday

Empowered Committee of Secretaries recommends rejecting RIL's bid for two blocks


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