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The market is expected to open on a positive note today; traders are
advised to assume intraday long if Nifty manages to hold above
5300 for upside targets of 5380 and 5420 levels. Alternatively,
short positions can be assumed if Nifty fails to breach and hold
5400 levels with final stop loss placed at 5425 levels. Lower
supports of 5200 may as well be utilized to assume intraday
long positions
Nifty Feb futures have witnessed
closure of long positions; Feb futures have shed 1 lakh shares
in open interest with discount decreasing to 4.45 points from
11.65 points. The overall market has witnessed 0.90% addition
in open interest with average cost of carry at 1.67% suggesting
fresh build of long positions in stock futures. On the options
front, Nifty higher strike Call options have witnessed fresh
buying suggesting possible upsides from the current levels.
We have a moderately bullish view on Reliance; we recommend a Bull Call Spread strategy
o Buy One Reliance Feb 2700 CA @ 24 - 26
o Sell One Reliance Feb 2800 CA @ 14 - 16
o BEP: 2710
o Tgt: 2800
o Investment: Rs.48,000 (Approx)
o Time Frame: 6 - 8 Days
With lack of global cues Indian markets are likely to trade in a range with a positive bias. Yesterday's trade clearly indicates a tough fight between bulls and bears and the indecision is likely to continue today too.
A business newspaper reports that Indian tax department can now probe in Mauritius and this might act as a minor dampener to the sentiments. Coming to the positive front Government is likely to extend the sops for the 100% EOU's for another year. In another interesting development government today announced the issue of '7.95 per cent Fertilizer Companies Government of India Special Bonds, 2026’ for Rs 3,610 crore (nominal) to 23 fertiliser companies as compensation towards fertiliser subsidy during the current financial year. Chambal Fert, Magalore Fert, Nagarjuna Fert, RCF, Tata Chemicas, Deepak Fertiizers are reported to be eligible for the above mentioned bonds.
Crude continued to surge due to continued tensions between Venezuela and oil major Exxon Mobil. Cues from Asian markets are positive today with US markets closing on account of President's day. Midcap strength is a postiive sign and the big question is whether the small and midcaps take off??
We expect a pre-budget rally and technically crossing Sensex 19,250 is definitely a huge task. We do not see immediate resistances after Sensex 19.250 levels. There will be trading oppurtunities available today though taking quick profits is advisable to counter volatility. Have a great trading
Stock in news - Reliance Industries, NTPC, Essar Steel, India Bulls, United Phosporus, IT companies and other stocks hit headlines today
ET reports Reliance Industries is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund
Government is likely to extend income-tax incentives for 100% EOU's for another one year.
Indiabulls Financial Services launched chartered aviation services after successful foray into financial services, broking, real estate, retail and power ventures.
Essar Steel plans a 6-million-tonne slab unit in Brazil reports Business Standard.
NTPC is likely to partner MCX’s power exchange.
Fortis Healthworld, a Rambaxy group company has tied up with Godrej Adhaar to extend its reach to rural India.
United Phosphorus Ltd (UPL) has purchased 100% stake through its subsidiary of Evofarms group of Companies (Evofarms), a major Marketing Company of generic products in the crop protection industry headquartered in Bogota, Colombia.
Everest Kanto Cylinder has granted an In Principle approval for acquisition of all the assets of a large manufacturing Company in the United States of America in a similar line of business, for approximately USD 70 million
1.) Sesa Goa: has witnessed fresh accumulation of long position in yesterday’s session. The stock had
seen 9.88 percent addition in open interest along with increase in cost of carry from 9.66 percent to 14.28 percent.
The stock surged by 5.80 percent to close above it resistance of 3300 levels. Long position can be assumed in stock
above 3335 levels for targets of 3400 and 3450 with final stop loss placed at 3300
.
2.) Tata Steel: Tata Steel futures have seen 9.55 percent addition in open interest along with increase in cost of
carry from 12.87 percent to 16.89 percent indicating fresh build of long position. Long positions can be assumed in
stock if it sustains above 820 levels for immediate targets of 830 and 845 levels with final stop loss placed at 810
levels.
3.) STER: STER futures have witnessed addition of long positions in yesterday’s trade; the stock has seen marginal
increase in open interest with cost of carry remained flat to spot levels. Long positions can be assumed in stock from
lower support of 765 levels with final stop loss placed at 750 levels.
4.) Reliance: Reliance has witnessed closure of short position and fresh build of long position in yesterday’s session.
The stock has seen 1.70 percent addition of open interest with cost of carry turned positive -1.03 percent to 9.29
percent. Long position can be assumed in stock at 2520-2530 with final stop loss placed at 2495 levels for immediate
targets of 2580 and 2600 levels.
5.) BPCL: BPCL futures have witnessed fresh build of long positions; the stock has seen 1472 percent addition in
open interest with cost of carry increasing from -7.18 percent to -4.30 percent. Long positions can be assumed in
stock above 460 levels for immediate targets of 480 and 490 levels with final stop loss placed at 450 levels.
6.) ONGC: ONGC has witnessed fresh build of short positions; ONGC futures have witnessed 1.24 percent addition
in open interest along with decrease in cost of carry to -13.58 percent from -4.49 percent. The stock immediate
support placed at 1000 levels where one can witness short covering. Long position can be assumed in stock it hold
above 1000 levels for immediate targets of 1025 and 1040 levels.
7.) DLF: DLF has witnessed closure of long position on account of profit taking; DLF futures have shed -1.07 percent
additions in open interest with slight decrease in cost of carry from 7.65 percent to 3.39 percent. Long position can
be assumed in stock at 850 levels for upside targets of 865 and 880 levels.