Add sheth_jg@yahoo.com or know more subscription
Stock in news - Reliance Power, Tourism Finance, IRB Infra, IOC and many other stocks hit the headlines today.
IRB Infrastructure is listing on the bourses today.
Tourism Finance is planning a Rs 400 crore equity fund reports Mint. Earlier RBI permitted FII's to increase stake in the company.
Entertainment Network India Limited is likely to benefit from TRAI's recommendation of FM radio channels allowing broadcasting news and increasing FDI
Bombay Dyeing is reporedly planning Rs 60 cr retail expansion, foray to UAE.
Reliance Power approved bonus in the ratio of 3:5
Renaissance Jewellery is likely to sell its retail venture soon
On the upside market faces an immediate resistance at 5160 - 5180 upon successfully crossing this level and stay above this level can take Nifty straight to 5310.Above which the market can even touch 5440.
But again remember the level between 5380 - 5410 is an important resistance currently Nifty is facing, we have seen from past few days that reversal happening around this level. So be careful.
On the downside market finds immediate support at 5090, If this level is broken then we can see more fall and the Nifty could show 5020
We are now in a do-or-die zone with the biggest possible trigger, the Union Budget coming up on Friday Feb 29th. All eye are on Mr.Chidambaram to deliver the goods. Low expectations can be considered as a welcome sign. Export driven sectors are hoping for a relief package and are likely to get the same. All in all a populist budget is expected from the FM taking next year's general elections into consideration. At the same time Mr.PC cannot take the chance of neglecting the country's economic growth. Infrastructure needs a big boost and there might good news on the taxation front for common man.
Reliance Power declared a 3:5 bonus in yesterday's board meeting. The price after bonus works out to be Rs.269 for a retail shareholder and Rs.281 for a HNI. We leave it to Mr.Ambani to decide whether the bonus is in agreement to the extreme high valuation of the IPO or a sympathy towards the retail investor. The stock is likely to react positively to the news though we do not see a huge rally in the coming days.
Private banks are likely to be re-rated on the news of HDFC-Centurion bank merger. Stocks to watch in this space include Bank of Rajasthan, Dhanalakshmi Bank, IndusInd Bank, City Union Bank and South Indian Bank.
Given the volatility and the drag in the capital markets not many investors are likely to believe in our theory. In case of a subdued market response to the budget we are unlikely to see rallies till Q1 results or any global news that impacts Indian bourses. So in short it is a 'Now or Never' situation for Indian markets to perform.
We expect the markets to open strongly and hold on to the gains. The extent of gains are largely dependant on the pre-budget rally, which we believe will set in any time.