NEWSLETTER

(Satyam Sit)

So 4825 worked brilliantly (high made 4823.5) and still holds the good for bears. The corrective up looks to be weakening as long 4825 is breaking on the upside. Though as discussed on yesterday's post that an 5 wave impulse is in course in the smaller time frame on the upside, so that's the last hope for the bulls to make this corrective up a bit more lengthier.

Supports: Immediate support is 4745. As told previously, as the very short term chart exhibiting impulse upward movements, so 4715-4690 is the most critical place to sustain this upside rally. Below that 4640 can come in no time. Further break down can bring 4520-4440 positionally.

Resistances: 4765-75. Above that It can witness some recovery upto 4795-4805. Main hurdle still @ 4825. Above which 4860/75 can bring very easily. More strength can bring 4915-4935-4955/60.

 

Market Outlook: Indian equities are expected to open on positive node in line with Asian equities. However, it needs to be seen whether the gains can be sustained as investor sentiment still remains cautious. Nifty has supports at 4675-4700 and resistances are at 4830-4870.

Global Events to watch for today

• Jobless Claims
• 3-Month Bill Announcement
• 6-Month Bill Announcement
• 30-Yr Bond Auction

Global indices Update @ 8:

Dow Jones : 10038 (- 20.26)

NASDAQ : 2150 (- 03.00)

Nikkei 225 : 9936 (+31.09)

Hang seng : 20189 (+267.5)

SGX CNX Nifty : 4779 (+23.50)

INR / 1 USD : 46.68

On the global counter: Wall St ends lower; France, Germany to present bailout plan & Asian markets trading firm; Hang Seng, Straits Times up. Wall Street ended in the negative zone but off intra-day lows. Traders mulled a possible bailout of Greece. Reports suggest that France and Germany are expected to present a bailout plan at an EU summit today. Speculation about the Fed's exit strategy after comments from Fed Chief Ben Bernanke also weighed on the market.

Stocks in action for the day: Religare, Fortis, Bombay Dye, NMDC, SAIL

RBI releases guidelines on base rate RBI Says: -Sub-PLR (prime lending rate) lending for loans below Rs 2 lakh stands withdrawn -Banks to exhibit information on base rate at all branches, websites -Base rate change to be made public from time to Time -Banks to inform RBI on actual minimum, maximum lending rates quarterly
-Banks should ensure interest rates charged are non-discriminatory

Divestment Secretary -To meet steel secretary today: sources -Meeting in backdrop of NMDC & SAIL FPO Divestment secretary met SEBI Chairman yesterday

Azim Premji Says: -IT industry to grow by 20% in FY11 -Software, BPO industries to be strong job generators in FY11 -Govt needs to focus on IT industry going forward

IPOs -Hathway, ARSS Infra IPOs close today Man Infra construction IPO opens on February 18, closes on February 22, price band not decided yet

Stock of Hotel Leela Ventures is flying: he stock of Hotel Leela Ventures is flying on bourses, after its showed a strong recovery in revenues and profitability in Q3. Of all the leading hotel operators, it was the only company that reported growth on year-on-year basis.

Hindalco to raise Rs 49 bn Hindalco Industries, India`s largest aluminium maker, hopes to complete Rs 49 billion of debt-raising in the next two weeks to achieve financial closure for Utkal Alumina Refinery, a 1.5-million tone per annum project in Orissa. The debt syndication was launched in the third week of December by Hindalco`s bankers, SBI Capital Markets, IDBI Bank and ABN Amro.

DLF to raise Rs 10 bn; hints at rise in housing prices The country`s biggest realty player DLF today said it planned to raise Rs 10 billion through unsecured loans by the end of this month, while hinting that prices in the housing segment could witness an increase

Wadias to up stake in Bombay Dyeing Bombay Dyeing, a textile major which has forayed into real estate as well, has approved the preferential issue of warrants to its promoters, the Wadia family. Warrants are securities that are issued by companies, allowing the holder the right to purchase a certain amount of shares at a stated price in a specified time-frame. The company has issued 3.9 million warrants. Of this, 1.9 million warrants will have the option to subscribe to equivalent number of equity shares of Rs 10 each. The Wadias would be able to exercise this option in one or more tranches till March 31, 2011

Green signal on, Cairn-ONGC JV begins work in Gujarat The Cairn India-ONGC JV has initiated exploration in its Gujarat-Saurashtra basin block. ``The JV has received environment ministry clearance for initiating exploration following a positive environmental impact assessment (EIA) report in the NELP-V block. It will be allowed to drill one well in the west coast block during 2010.

Shree Cement bullish on demand, eyes North India: Shree Cement will consolidate its presence in northern India by getting into South Punjab and North Rajasthan markets by early next fiscal. The company, which runs the largest single-location cement factory in North India, is setting up grinding units at Roorkee (Uttar Pradesh) and Suratgarh (Rajasthan) for an investment of Rs 3.5 billion to cater to new markets. The units will have a combined capacity of 8,000 tone per day and will commence operations by March.

Kingfisher plans 1:1 rights issue to mop up Rs 4 bn: The Vijay Mallya-promoted Kingfisher Airlines is likely to come out with a rights issue offering shareholders one equity share for every one they hold to raise nearly Rs 4 billion in order to retire mounting debt. The troubled carrier has appointed SBI Capital as the arranger for the issue, said persons privy to the development. The persons said with a current market capitalisation of Rs 13.41 billion, Kingfisher might offer as much as a 70% discount over the current market price of the stock to its shareholders. The Kingfisher stock closed at Rs 50.5, down 3.2% on Wednesday.

Mittal to buy 4.9pc promoter stake by Feb-end: UttamGalva

Reliance Capital sells 1.03 mn shares of Inox

Fortis Healthcare to raise up to Rs 1,250 crore

Bombay Dyeing to issue up to 3.96 million warrants on preferential basis, promoter stake to go up by 5%

Religare rights issue closes on February 15 (Monday)

JSW set to buy 2 coal mines in US

Essar Steel plans to raise $1 bn from overseas market

Thu, 11 Feb 2010

Nifty (Daily) Last Close – 4757.20 Support – 4790, 4733 Resistance – 4790, 4856 10 Day EMA – 4842.45 40 Day EMA– 4988.40

Trading Range - The Nifty opened at 4793.00, moved up to an intra-day high of 4826.85, declined to an intra-day low of 4748.10, and closed at 4757.20. Review - Outlook - The Nifty had a mixed trading session. It opened neutral, moved both ways, faced selling pressure at higher levels, and came off from its intra-day high, ending in negative territory on higher volume. Volatility can persist; a likely intra-day upside could come in above the 4758 level while significant resistance at higher levels of 4785 may limit the upside and result in a decline. Our outlook for the day is negative. We expect resistance at the 5274+ level and support at the 4613 level.

Stock Picks For The Day (strictly intra-day) Date Scrip Rec CMP Stoploss Target 11/02 Cummins S 459.95 464 452 11/02 Indian Bank S 171.65 175 166 11/02 Lupin B 1581.30 1574 1596 Stock Picks (intra-week/fortnightly) Date Scrip Rec CMP Range Stoploss Target 07/01 Petronet Lng. B 71.45 74-75 70 86 08/02 Century S 472.65 486-487 500 450 11/02 Gtl S 407.50 410-411 420 389 11/02 Jsw Steel S 960.50 975-976 986 941 Daily Support / Resistance Levels   Scrip Support Last Close Resistance ACC 851, 822 869.90 888, 937 DR. REDDY’S 1069, 1031 1083.40 1096, 1123 HUL 219, 208 230.10 233, 246 INFOSYS 2419, 2373 2466.95 2498, 2539 ITC 231, 215 243.90 249, 261 RIL 981, 956 985.10 1021, 1050 SBI 1903, 1844 1911.85 1941, 1992 T MOTORS 653, 621 669.70 672, 724 TCS 719, 694 732.30 751, 790 T STEEL 503, 467 522.45 545, 598

GLOSSARY: CMP - Current Market Price, MACD - Moving Average Convergence Divergence, RMI - Relative Momentum Index, RSI –elative Strength Index, ROC - Rate of Change, SMA - Simple Moving Average, Cls - Closing Price, Support - Level where buying can be expected, Resistance - Level where selling can be expected, Tu - Turning Upwards, Td - Turning Downwards, Sd - Sideways, Up - Uptrend, Dt - Downtrend, Ob - Overbought, Os - Oversold.

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