Nifty below 4800 or above 5000
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Today's Pick - Indusind Bank
We recommend a sell in IndusInd Bank from a short-term perspective. It is evident from the charts that the stock was on a medium-term uptrend between late March 2008 and early May 2008, from its a low of Rs 68 to an high of Rs 105. After finding resistance around Rs 105, the stock reversed direction and began to decline.
On May 12, the stock breached the medium-term up trendline. The stock witnessed moving average compression at around Rs 90 levels and has now penetrated these average lines. The daily and the weekly momentum indicators are declining in the neutral region.
The stock appears to have resumed the long-term downtrend and we are also bearish on it in the short-term. We expect the stock’s down move to continue until it hits our price target of Rs 74 in the upcoming trading sessions. Investors with short-term perspective can sell the stock while keeping the stop-loss at Rs 90.
NEWS
Indian ADRs concluded the day on a negative note on NYSE
barring ICICI Bank (up 0.54%). Laggards were led by Infosys
Technologies (down 1.28%), HDFC Bank (down 1.07%) and
Wipro (down 0.99%).
Ø India's Bharti Airtel Ltd. is considering buying 100% of South
Africa's MTN Group Ltd. for cash and stock.
Ø Indian utility-vehicle major Mahindra & Mahindra Ltd. is in
talks to buy a majority stake in two-wheeler maker Kinetic
Motor Co. Ltd. for INR700 million-INR800 million ($16.7
million-$19.1 million).
Ø India-based Cals Refineries Ltd. has bought two distillation
plants and a delayed coker plant from Petro-Canada for $110
million.
Ø India-based Cals Refineries Ltd. has bought two distillation
plants and a delayed coker plant from Petro-Canada for $110
million.
Ø The US Exim has committed a $2.2 billion line of credit to fund
infrastructure projects in the country. In addition, it also plans
credit support of another $6 billion for funding of aircraft
purchases by Air India and Jet Airways over the next few years .
Ø As part of its efforts to narrow the time between the allocation
of shares in a public issue and their listing, the Securities and
Exchange Board of India on Tuesday gave an ‘in-principle’ nod
to marking lien on bank account as an alternative mode of
payment in public and rights issues.
Ø Reserve Bank of India (RBI) has taken a hardline approach to
the country’s largest private bank ICICI’s investments in ICICI
Venture the country’ biggest private equity fund.