Today, we expect another cautious to slightly positive start,
Nifty (4653) Sup 4580 Res 4695
Seeing buying in Ashok , Suzlon in dips
The bulls may have regained some lost ground with bears covering their shorts in the last couple of days. Global markets too have largely held up quite well and oil prices have retreated a bit. Lack of fresh bad news coupled with buying by local institutions have kept the bears on the defensive in the last two days. FIIs turned net buyers in the cash segment yesterday on a provisional basis. However, it remains to be seen whether the current momentum can be sustained, as the bulls still lack conviction.
Mutual funds may be sitting on a huge pile of cash, but the market needs FIIs to turn net buyers in a big way. In short the FIIs have to light the fuse to ignite positive action in the Indian bourses.
Results Today: Aurobindo Pharma, Dish TV, Era Infra, Finolex Industries, Greenply, Hotel Leela, Indraprastha Gas, Kei Industries, Marg, Mascon Global, Power Grid Corp., PNB and Rajesh Exports
Today's Pick - Allcargo Logistics
We recommend investors buy the stock of Allcargo Global Logistics with a short-term perspective. From the charts, we see that it has been on a long-term downtrend from its January 2007 peak of Rs 1,355 to its June 2008 low of Rs 620.
However, the stock found support at around Rs 640 for the second time (a key support level) recently and commenced an up move. At around Rs 700, the stock crossed over the 21-day moving average, showing signs of bullishness.
Recently, the stock penetrated the 50-day moving average as well as the long-term down trendline. The daily relative strength index is featuring in the bullish zone and the weekly RSI is rising towards this zone. The moving average convergence and divergence is on the brink of entering positive territory.
We are bullish on the stock in the short-term. We expect the stock’s current up move to prolong until it hits our price target of Rs 895 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining stop-loss at Rs 750
Corporate News
Reliance Industries and ONGC may resume oil production from PMT fields. (ET)
Reliance Communications is considering buying over 40% in MTN. (BS)
Hindalco plans US$1bn rights issue. (ET)
IDEA close to launching operations in Mumbai. (ET)
UBI plans to raise upto US$2bn via MTN. (BS)
Reliance Power, Tata Power, Lanco, amongst companies qualified for Rajpura thermal power project. (BL)
Ashok Leyland may divest stake in Nissan JV. (ET)
Tech Mahindra enters into IPTV global alliance with Microsoft. (ET)
GMR’s Delhi hospitality project hits AAI hurdle. (ET)
Tata Motors plans to build US$150mn factory in Mexico to assemble cars for exports to South America. (DNA)
Two Glenmark drugs are set to enter the clinical trial stage in October 2008. (DNA)
JSW Steel Group will invest Rs5.5bn in Chile mines. (BS)
Jet Airways and SpiceJet are introducing sharp cutbacks in staff cost and salaries. (BS)
Pantaloon Retail’s arm ties-up with Dubai’s Aramex to open a 90,000 sqft warehouse in Mumbai. (BL)
Aditya Birla Group’s BPO division plans to acquire captive arms of niche financial services firms. (DNA)
Voltas buys remaining 50% stake in Fedders International. (FE)
Cadila to spin-off and merge the consumer products division into its unit, Carnation Nutra Analogue-Foods Ltd. (FE)
Escorts Group is developing a bio-fuel powered tractor. (FE)
Castrol intends to spend Rs1bn on advertisement and product promotion. (BL)
S Kumars Nationwide plans acquisitions in Europe and North America. (BS)
IBM set to invest in KLG Systel. (DNA)
Ipca Labs is looking at an overseas acquisition in the range of US$10-20mn. (DNA)
Chettinad Cement plans new plant in Karnataka and defers rights issue. (BL)
Indo Asian Fusegear is planning to foray into power generation. (BS)
KEC International wins Rs1.6bn order from NTPC for rural electrification in Jharkhand. (ET)
Godawari Power to invest Rs2.8bn over the next two years to expand capacity and acquire majority stake in an iron ore pelletisation plant. (DNA)
Champagne Indage plans to raise US$50mn through issue of securities in overseas market. (BL)
Shri Lakshmi Cotsyn plans to invest an additional Rs3.5bn in FY09 on capacity expansion. (ET)
Plethico Pharma plans to acquire a US-based nutraceuticals company. (DNA)
Economic News
Nuclear Power ventures may get overseas funding. (ET)
Indirect tax collection registers a growth of 12.8% in the first two months of the current fiscal