Monday, November 21, 2011

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 4935

Market Outlook: Indian markets are expected to open in a whammy sentiments backed by negative cues from Asian economies as Japan swings to surprise trade deficit in October.

Bills of Expectation: The winter session of Parliament gets under way on Tuesday. Following are some of the important bills expected to come up during the month long sitting:

  1. Lok Pal Bill 2011,
  2. Judicial Standards & Accountability 2011,
  3. Seeds Bill 2004,
  4. Pension Fund Regulatory & Development Authority Bill 2011
  5. The Constitution (108th Amendment) Bill 2010 as passed by Rajya Sabha

Global Markets: Wall Street closed on Friday mixed in another thin choppy session. Investors were reluctant to commit to the market ahead of the weekend amid ongoing nervousness over the debt talks in Europe and Washington. Major indices closed at their worst levels in almost two months. European markets too hit their six-week closing lows.

Global events to watch:

· U.S. leading indicators for October.

· Federal Reserve's Lockhart to speak.

· The grand deal to keep Greece from default had an unintended consequence.

· Treasury to auction $35 billion in 2-year notes

· U.S. existing home sales for October.

Global indices Update @ 8:

Dow Jones : 11796 (+25.43)

NASDAQ : 2572 (-15.49)

Nikkei 225 : 8365 (-09.48)

Hang Seng : 18125 (-365.2)

SGX CNX Nifty : 4874 (-48.50)

Gold (USD/t oz.) : 1720

Nymex Crude (F) : 97.73

INR / 1 USD : 51.35

TECHOUTLOOK : Support for Nifty is at 4850 and resistance at 4935

Call for the day:

SELL Nifty SL 4935 Target 4850.

BUY L&T SL 1220 Target 1275.

BUY ICICI at lowers with a stop loss of 20 points target 805.

BUY CESC SL 248 Target 269.

SELL SBI SL 1750 Target 1650 (Positional call).

Stocks in action for the day: Kingfisher, Gitanjali Gems, L&T, IFCI, GTL.

Kingfisher :Sahara group likely to invest USD 500-600 million in Kingfisher Airlines – CNN-IBN exclusive -Mallya, Sahara deny bailout deal for Kingfisher Airlines (Agencies) -Govt nudges LIC to buy 10% stake in Kingfisher Airlines valued at around Rs 120-125 crore (BS)

Winter Session: Govt to pursue reforms in higher education

FDI jumps 77% on M&A spree: The latest available data from the Reserve Bank of India show a 77 per cent jump in the FDI in the first half of the current financial year (April-September), compared to what was $19.5 billion the same period a year ago

Bank of India likely to relaunch mutual fund biz by December.

Centre okays Rs 1,600 cr for AP power sector.

RIL gets clean chit for capex till Fy 08 in KG-D6 gas fields: The Directorate General of Hydrocarbon has given a clean chit to Reliance Industries' capital expenditure of $2.5 billion spent up to 2007-08 in developing the KG-D6 gas fields because the CAG's audit has not quantified any loss to the exchequer.

Bobby Pawar set to quit Mudra

Government may turn IFCI debt into equity, make it PSU

Consumption growth short of estimate: The consumption of petroleum products in India is growing at a rate much lower than the conservative projection of 4.58 per cent made for this year by the Petroleum Products Planning and Analysis Cell (PPAC), a wing of the petroleum ministry. In the first six months of 2011-12, consumption grew a mere 3.61 per cent. The trend is much lower than the growth witnessed in recent years and is in line with the global trend.

Banks'-KFA meet: Sources -KFA may not be required to bring additional equity -KFA seeks additional working capital loans of Rs 2,300 crore -Company seeks LCs worth Rs 1000 crore to replace maintenance reserves -KFA to appoint consultant to look into operational issues -SBI Caps to submit report on financial viability in 15 days -KFA allowed to individually negotiate with each lender -Lenders to take call only after both reports submitted

GTL: Sources -ICICI Bank to return 29.5% stake in GTL -ICICI has proposed to transfer Rs 650 crore debt of GTL to CNIL -CNIL: Chennai Network Infrastructure Ltd -Banks to take final decision on November 29

New divestment strategy-Divestment Dept lists new capital market strategy-Aims to raise Rs 46,000 crore in immediate to medium-term

Monetisation of SUUTI portfolio to raise Rs 23,000 crore (Major holding – Axis Bank, ITC and L&T) Raise Rs 17,800 crore via buyback of equity Raise Rs 13,400 crore via strategic cross purchase -Raise Rs 15,000 crore via secondary sales -Divestment strategy prepared by DoD & ICICI Securities -10 PSUs identified for buyback -Buyback size based on 50% capex utilization -Buyback candidates are ONGC, NTPC,SAIL, BHEL,Coal India, OIL -Buyback candidates are Neyveli Lignite, NALCO, Satluj Jal -Buyback would provide Rs 4,300 crore cash to public -Long-term approach suggests holding co structure -Real estate co structure to monetise surplus land -5 companies listed as secondary sale candidates -Stake sale via private placement or on market -VSNL surplus land to be hived off into SPV -Can look at divesting stake in listed PSBs -Can look at divesting stake in insurance companies -PNB, OBC, Canara Bank, Bank Of Baroda likely candidates
-Retain minimum GoI's share at 51% in PSBs -Divestment paper looks to raise total of Rs 91,112 crore -Cross purchase wants NTPC to acquire 5% stake in Coal India & BHEL -Cross purchase wants Coal India to acquire 5% in SAIL -Cross purchase wants NALCO to buy 5% in Hindustan Copper

Exclusion of F&O Contracts w.e.f November 25 (Gitanjali Gems, Great Offshore, Jindal South West Holdings, Kingfisher Airlines, KS oils)

FM panel clears 3 mega infra projects worth Rs 25000 crore including L&T’s Hyderabad Metro of Rs 16000 crore

Govt plans to bring IFCI under its direct control by converting its loan into equity (ET)

Govt sources say cabinet likely to take up retail FDI proposal this week

Cairn India Sources: Expect Home Ministry nod for Vedanta deal next week

Govt seeks to protect KG D6 revenue share; oil ministry may link cost recovery to capacity

utilization after RIL fails to meet gas production targets (Mint)

Govt likely to hike excise duty on diesel cars in the next budget (BL)

IFCI, DCB pull out of corporate debt recast model owing to lopsided structure & favoring big lenders (ET)

Hinduja Foundries plans Rs 125 crore rights issue (CMP: 67)), (M-cap: Rs 192 crore)

Amtek India: Ex
bonus issue 1:1

Ex Dividend: Timken India Interim dividend Rs 20/sh

F&O ban: Gitanjali Gems, Ruchi Soya, Suzlon

Power Ministry seeks withdrawal of import duty on coal (FE)

Future group may exit insurance biz with Generali, sell stake to IITL (ET).


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