Tuesday, December 13, 2011

TECHOUTLOOK : Support for Nifty is at 4710 resistance at 4850.

Market Outlook: Indian markets are expected to open negative tracking negative Asian markets as investors turned bearish post the summit meeting which failed to restore investor confidence. We expect the weakness in the markets to prevail and for the Nifty to breakdown below 4700 over the next few sessions.

Global Markets: US markets closed down 1.3-1.5% and major European indices fell between 2-3.5%. The worrying situation is in the bond market in Europe, as bond yields touch all time highs. The Italian 10 year yield is inching close to 7%, and Spanish bond yields are above 6% currently. On the back of the weak cues from the western world, Asian equity markets are trading down. The brief rally post the European Union summit is over, signalling the end of the honeymoon period. Investors are now bracing for a likely EU downgrade as ratings agencies are not satisfied with the outcome of the summit.

Global events to watch:

  • NFIB small business index for November.
  • U.S Retail sales for November

Global indices Update @ 8:

Dow Jones : 12021 (-162.8)

NASDAQ : 2612 (-34.59)

Nikkei 225 : 8523 (-130.5)

Hang Seng : 18344 (-231.3)

SGX CNX Nifty : 4883 (-65.50)

Gold (USD/t oz.) : 1663

Nymex Crude (F) : 97.78

INR / 1 USD : 52.59

TECHOUTLOOK : Support for Nifty is at 4710 resistance at 4850.

Call for the day:

Sell Coal India SL 314 Target 280-285.

Buy HCL Tech SL 405 Target 435.

Sell Tata Motor SL 184 Target 165-168.

Stocks in action for the day: RIL , JSW Steel ,Ultra tech, ACC, Unitech,

Mobile operators, including Videocon, Etisalat, Aircel and Idea Cellular, have approached the Telecom Ministry seeking a reduction in their financial bank guarantees in accordance with the licence agreement.

Vijay Mallya has agreed to pay service tax liability to the tune of Rs 15-20 crore to the government by Tuesday morning. The government has agreed to unfreeze Kingfisher Airlines accounts subject to the payment of the liability.

Cement output for the month of November came in at 13.98 million tonne against 11.91MT the previous year.

South Indian Bank is planning to open exclusive corporate finance branches in metro cities to tap potential in corporate sector.

Aditya Birla Group is in negotiations with six thermal coal mine companies in Australia in its search for raw material assets to feed its $5-billion growth programme in aluminum

RBI issues guidelines for banks' investments in non-finance cos: Equity investment by a bank in a non-financial service company would be subject to a limit of 10 per cent of the company's paid-up capital or 10 per cent of the bank's paid-up capital and reserves, whichever is less, according to the Reserve Bank of India.

Tata Teleservices and the Srei group want to reduce their stake in tower company Viom and have held talks with Japan’s Sumitomo and private equity firm TPG Partners.

Unitech has put on hold its plans to demerge the infrastructure vertical indefinitely on account of sluggishness in economy.

Sistema Shyam TeleServices (SSTL), which operates under the MTS brand, has reported a net loss of . 1,009.7 crore for the third quarter ended September 30 on account of increased foreign exchange charges against a net loss of . 494 crore in the year-ago period.

Banks to ‘Focus’ on Essar Loan Accounts: More than Rs. 30,000 crore loan accounts of various Essar Group companies will become ‘focus accounts’ for banks as the Central Bureau of Investigation filed charge sheets against executives including members of the promoter Ruia family for violating telecom licensing rules.

Lok Sabha passed the Life Insurance Corporation (Amendment) Bill 2009: The bill seeks to raise the capital base of the state-owned insurer to Rs 100 crore from 5 crore, bringing it on a par with private insurers, both in life and non-life segments, which are required to have a minimum capital base of 100 crore as per IRDA norms. Cabinet to Discuss Anti-Money Laundering Tweaks, Food Bill and Power Fund Today

Essar group of companies will be in focus following reports of its alleged involvement in the 2G spectrum allocation scam. However, the group denied any involvement.

SBI, NTPC, LIC the PSU's gained the most from tax refunds. SBI, NTPC, Life Insurance Corporation received substantial income tax refunds, which are expected to shore up their bottom lines.

The Singapore Mercantile Exchange (SMX) will launch five contracts for Indian-origin commodity products next year.

BEML the Government-owned company is to hive off its rail business into a separate company to tap the business in rail rolling stock of nearly Rs 1 trillion over the next ten years.

Napo Pharmaceuticals, Inc has announced it has terminated its Collaboration Agreement with Glenmark Pharmaceuticals Ltd.

Tata Power, along with its Norwegian partner SN Power, is scouting for hydroelectric projects in India and Nepal.

Kamat Hotels is set to consider the course of action on outstanding foreign currency convertible bonds. (FCCBs)

GMR Infra has added 384 megawatts to its power grid in Andhra Pradesh

The board of Gati has opened the issue of FCCBs and plans to raise up to USD 22 million

Maharashtra state government is planning to raise duty on captive power plants. If this move comes through, it could affect power companies like RIL , JSW Steel ,Ultra tech and ACC .

Cement output for the month of November came in at 13.98 million tonne against 11.91MT the previous year.

Banks are set to recast loans of textile companies.

Coal India trade unions seek 50% pay hike.

IL&FS bags China expressway project

TCS bags 5-year deal from Call Genie

GMR Bids for Airport Projects in Brazil

Bharti, Tata Comm Told to Pay Fines in 2 Weeks


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