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Sell Nifty at opening of market n cover according to ur taste of profit
With the global indices
down 1-2 percent, our markets are likely to open on flat to
negative note today. Trader are advised to assume long
positions if Nifty holds 4800 levels or from lower supports of
4750 levels for upside targets of 4910 and 5000 levels with a
stop loss placed at 4700 levels.
The breadth of the market
remained positive in spite of negative market suggesting buying
prevailed in selective mid-cap and small-cap stocks. Nifty March
Futures have witnessed closure of short positions while April
Futures have witnessed fresh build up of long positions. April
Futures have seen 48 lakh shares addition in open interest along
with an increase in premium from 7.40 points to 12.25 points.
The rollover of the total market is at 48.73% while the Nifty
rollover stands at 43.74%. On the options front, Nifty 4800 Call
and Put options have seen buying suggesting market is likely to
remain highly volatile in today’s trade
We have a moderately bullish view on Tata Steel; we recommend a Bull Call Spread strategy
o Buy One Apr 660 CA @ 38-42
o Sell One Apr 700 CA @ 26-30
o BEP: 700
o Investment: Rs. 85,000
o Time Frame: 5-6 Days
We recommend a buy in Central Bank of India from a short-term perspective. The charts of Central Bank of India show that the stock was on a medium-term downtrend from its life-high of Rs 154.9 marked in early January 2008 till its mid March low of Rs 73.
More recently, the stock’s medium-term downtrend got arrested at around the support level of Rs 74
After opening with a positive bias, markets traded in a range bound for major part of the trading session. However, towards last hour of the day, a four day rally fizzled out as weak cues from the US, Asian and the European markets coupled with selling pressure in the Banking, Oil & Gas, Telecom and Pharma stocks dragged the benchmark Sensex to close in red. Finally, the BSE benchmark Sensex slipped 130 points to 16,086 and the Nifty index lost 48 points to close at 4,828.
Overall about 1,733 stocks advanced; 978 stocks declined while 50 stocks remained unchanged. Among the 50 Nifty 19 stocks ended in positive territory. On the other hand, 31 stock ended in red.
Among the BSE Sectoral indices, BSE Bankex index (down 0.8%), BSE Oil & Gas index (down 0.8%), BSE Teck index (down 0.7%) and BSE Pharma index (down 0.7%). Gainers were, BSE Small-Cap index (up 2.1%), Mid-Cap index (up 1.5%) and Metal index (up 1.5%).
Among the 30-stocks of Sensex, ICICI Bank, Bharti Airtel, Hindustan Unilever, RIL and BHEL were among the major laggards. However, bucking the trend were HDFC, Tata Steel and ITC.
Aries Agro advanced by 2.2% to Rs120 after the company announced that they opened largest Micronutrient unit at Hyderabad. The scrip touched an intra-day high of Rs125 and a low of Rs116 and recorded volumes of over 8,000 shares on BSE.
Dewan Housing was up over 3% to Rs108 after the company said that it entered into an agreement with UAE sponsorship centre. The scrip touched an intra-day high of Rs108 and a low of Rs102 and recorded volumes of over 3,00,000 shares on BSE.
Strides Arcolab was up by 1.4% to Rs156. The company said that it secured first US approval for HIV drug, according to reports. The scrip touched an intra-day high of Rs159 and a low of Rs151 and recorded volumes of over 10,000 shares on BSE.
Ashok Leyland marginally slipped by half a percent to Rs33. The company said that they raised US$200mn in overseas loan. The scrip touched an intra-day high of Rs33 and a low of Rs32 and recorded volumes of over 6,00,000 shares on BSE.
Maruti Suzuki ended on a flat note to Rs845. The company said that they would begin selling swift Dzire in India march 29. The scrip touched an intra-day high of Rs852 and a low of Rs833 and recorded volumes of over 1,00,000 shares on BSE.
Tata Chemicals slipped by half a percent to Rs274. Reports stated that the company would raise US$850mn to part fund its US$1bn acquisition of US-based General Chemicals Industries Products. The scrip touched an intra-day high of Rs278 and a low of Rs272 and recorded volumes of over 85,000 shares on BSE.
SBI was down by 1.5% to Rs1713. Report stated that the company has secured full bank license from the Monetary Authority of Singapore to establish up to 25 outlets. The scrip touched an intra-day high of Rs1791 and a low of Rs1696 and recorded volumes of over 3,00,000 shares on BSE.
Religare surged by over 4% to Rs380 following reports that the company would acquire UK broking firm Hichens, Harrison & Co for US$100mn. The scrip touched an intra-day high of Rs390 and a low of Rs351 and recorded volumes of over 65,000 shares on BSE.
Markets would further look to consolidate and with F&O expiry on Thursday traders should be cautious.
Corporate Front Page
Tata Motors has signed a deal to buy luxury brands Jaguar and Land Rover (JLR) from Ford for US$2.3bn in cash.
Pfizer has filed two law suits to block Ranbaxy's generic version of Lipitor and Caduet.
RCOM and TCS to enter last leg of bid for setting up 12,000 common service centres across the country.
Tatas to get approval to make an eco-car from the Thailand’s Board of Investment.
ONGC, along with its partner the Hinduja Group, to sign an initial agreement to develop two huge oil and gas fields in Iran.
Religare Enterprises to buy a London-based broking firm, for ~Rs7bn.
DLF to add Ferragamo to luxury brand portfolio.
IDBI reduces its benchmark prime lending rate by 50 basis points to 12.75% from 13.25%.
Gujarat NRE Coke plans to set up coke oven flu gas power plants in its production facilities.
KS Oils has acquired 50,000 acres of palm plantation in Indonesia with an investment of Rs2.3bn.
ITC stops non-filtered cigarette production.
Ashok Leyland has recently concluded an ECB program of US$200mn.
Tata Teleservices has partnered with PayMate to enable Tata Indicom customers to book domestic flight tickets.
Idea Cellular to extend its network to cover 3,000 towns and 30,000 villages by the end of the year.
Alok Infra, a subsidiary of Alok Industries, to raise $100mn through a PE fund.
Economy News
SEBI Board will take up listing norms for corporate bonds in the next board meeting.
Withdrawal of income tax holiday for refinery may hit three government refinery projects.
Cabinet to take up DPEB extension today.
The CAG has recommended the closer of 12 state PSUs on account of the poor turnover and continuous losses.
Maharashtra Government will not take further action for three months with regards to land declared as private forest.
Government to create a debt relief fund to provide liquidity to bank for implementing the Rs600bn loan waiver package.
Government still wary of easing ECB curbs.
TRAI to fix prices of pay channels on the DTH platform in line with the Rs5 per channel cap on CAS.
Government to talk to iron ore exporters for raw material security.
DoT may agree to allow niche operators specifically for providing services in the rural sector.
Cabinet nod for farm debt relief fund today.
India's crude oil production increased 2.3% yoy and natural gas output rose 4.7% yoy in February.
Indian refiners February oil processing grew 5.8% on yoy basis.
TRAI is looking to reduce a fee charged by telcos from other telcos.