Today, Nifty has support at 4,853 and resistance at 5,079 and BSE Sensex has support at 16,448 and resistance at 17,06
The Indian Market is likely to have a negative opening due to unfavoring cues from the Asian markets. On Friday, Indian market closed in red due to negative cues like the growth in domestic inflation figures that rose at the fastest pace in three and half years to 7.61% in the week ended 26th April. Also the surge in global crude oil prices above $125 led to the negative sentiments in the market. From the sectoral front, the oil and gas stocks faced the heavy selling across the counters. The BSE Sensex closed lower by 343.58 points at 16737.07 and NSE Nifty fell by 99.10 points to close at 4,982.60. We expect that the market may remain volatile during the trading session
Results Today: Blue Star, Dewan Housing Finance, Graphite India, Indiabulls Real Estate, RCF and Unichem Labs.
Today's Pick - EIH
We recommend a sell in EIH from a short-term perspective. From charts of the EIH, we note that the stock has been on a downtrend (forming lower peaks and lower troughs) form its 52-week high of Rs 246 (touched on January 7).
However, in late March the stock found support at around Rs 119 levels and witnessed a corrective up move to Rs 160 level.
The stock met with a resistance (down trendline) around Rs 160 levels during late April and it failed to surpass this resistance due to selling pressure. Subsequently the stock began to decline and it appears to have resumed its downtrend.
On May 9, the stock fell penetrating the 50- and 200-day moving averages, indicating further bearishness. The daily momentum indicator is on the verge of entering the bearish zone.
A cross over in the daily moving average convergence and divergence indicates a sell signal. We are bearish on the stock in the short-term.
We expect the stock’s downtrend to continue until it hits our price target of Rs 124 in the upcoming trading sessions. Investor with short-term perspective can sell the stock while keeping the stop-loss at Rs 149.
Corporate News
India’s largest DTH company Dish TV to offer free set-top boxes.(BS)
Ranbaxy is likely to announce a drug discovery research tie-up with US drug manufacturer Merck.(BS)
M&M announces an upward revision of vehicle prices in the range of 1.5-2.5%.(BL)
NTPC on the look out for coal mines abroad.(BL)
Heidelberg consolidates its cement business in India.(BS)
DLF Assets is likely to launch an IPO of its office trust in Singapore by June to raise US$2 billion.(BS)
Bharti Airtel-MTN alliance talk gets a boost as a key investor backs the deal.(BL)
Spencer's Retail, a RPG group company, to invest Rs15bn to open 250 new retail outlets within a year.(BS)
SBI to add 1,000 branches in rural and semi-urban areas in the current fiscal.(BL)
Reliance Communications awards US$400mn deal to Alcatel-Lucent for network managed services.(Mint)
Great Offshore to acquire SeaDragon Offshore for US$1.4bn.(BS)
Idea Cellular may withdraw from Indus Towers.(FE)
Thermax India plans to invest Rs2bn on expansion in the current fiscal.(ET)
GMDC on the look out for coal mine partners in Africa; to set up three power projects.(BL)
Essar Power gets government approval to operate as a holding company and infuse up to Rs80bn as FDI.(BS)
Hungarian firm MOL Hungarian Oil and Gas Plc acquires a 35% stake in onshore exploration block of ONGC in the Himalayan foothills.(FE)
Kotak Mahindra Bank makes a provision of Rs860mn in the March quarter for potential losses from derivative transactions of its clients.(BS)
Telcel, Emirates Telecommunications and Altimo are in race to pick up equity worth US$1bn in Tata Teleservices.(ET)
BPCL, Indian Oil seek a relook into the impact of 10% ethanol blending.(FE)
Satyam Computer draws up capital expenditure of US$125mn to develop four SEZs.(BL)
GVK Power & Infrastructure gets in-principle approval to generate gas-fuelled power of 1,500MW.(Mint)
Idea Cellular cuts STD and roaming rates.(ET)
Reliance Industries to use closed fuel outlets for malls and multiplexes; earmarks Rs50bn for the project.(BS)
Health insurer Apollo DKV plans to invest up to Rs5bn in the next five years.(FE)
ADAG may pick up a stake in AB Corp.(ET)
Blackstone, New Vernon and ADAG pick up stake in Everonn Systems.(TOI)
Lafarge discusses with L&T to acquire the latter’s ready mix concrete business for Rs12bn.(ET)
Infotech Enterprises receives a three year contract from Powercor Australia.(DNA)
BHEL has formally taken over Bharat Heavy Plate & Vessels.(ET)
Vishal Retail plans to raise Rs24bn over the next three years for its expansion.(DNA)
Tata Power to raise Rs14bn through issue of shares to its promoters.(ET)
Bennett, Coleman & Co, India’s largest print media company, plans an IPO.(BS)
Barclays to set up a 5,000 seat captive BPO unit in India.(ET)
BSNL has set a slew of stiff conditions for companies who want to participate in its Rs400bn tender for a 93mn GSM lines.(ET)
ONGC has put its plans on hold to roll out fuel retail outlets.(TOI)
Reliance Money has tied up with Sify Technologies to sell its financial products.(ET)
Economic News
Higher prices of fruits and manufactured goods like locomotives and non-ferrous metals push WPI to 7.61% for week ended April 26th, the highest since November 2004.(BL)
Non-life insurance companies may get approval to change the coverage, wordings, terms and conditions of policies.(BS)
Bank credit for the fortnight ended April 25th declines by Rs 120bn.(BL)
Government notifies export duty of up to 15% on various steel products to contain price rise of the alloy.(BS)
Cement prices decline by Rs6 per bag to Rs210 in Gujarat. (DNA)
Government to seek annual fee from successful bidders of non-metro airports.(BL)
GMR and GVK plan to increase landing and parking fees at the airport.(ET)
3G players not suited for India, TRAI cautions finance ministry.(FE)
Steel companies may roll back prices as government has notified export duty on steel items.(ET)
Union government plans to open a national chain of generic drug stores, one in each district, to sell inexpensive, unbranded medicine.(Mint)
The Supreme Court will decide how coal companies should conduct e-auction.(ET)
Japan to invest Rs85bn to develop nine infrastructure projects in India.(ET)
Civil aviation ministry is considering a capital infusion of Rs10bn in Air India.