Finally budget day.
But cautious is advised as today the market to swing in the tune of FM.
On the downside the Nifty finds a support at 5220 and then at 5170 and then 5130
5020 is a good support which is not expected to be broken in tomorrow trade.
On the upside Nifty faces a resistance at 5320, 5350 and as usual still maintaining my words the zone of 5370 - 5410 is a tough resistance
Trading strategy -- Don' trade simply because you want to trade. Can skip tomorrow trade, or else do quick buying and selling
Indian Markets are in no mood to couple with global markets from the last couple of days though F&O settlement tried to create ripples. Markets are lacklustre and are expected to react sharply on the up today unless Mr.Chidambaram hands over a negative surprise. With very low expectations set in the run up to budget the downsides are negligible. Lets take a peek at the Industry wish list.
1. IT Sector - Looking for an extension of the STPI (Software Technology Park of India) scheme, which expires on March 31, 2009.
2. Telecom Sector - Looking for a cut in license fee
3. Oil Sector - Looking for series of tax and duty changes related to oil product retailing, exploration activities and natural gas
4. Textiles - More sops to the sector like enhanced TUF(Technology Upgradation Fund).
5. Consumer Durables - Looking for more attention in the form of incentives as a slow down is visible.
6. Automobile - Looking forward to a reduction in excise duties.
7. Pharma - Looking for Price control and tax benefit from investments in R&D
8. Agricommodities - We believe this sector is likely to grab major attention today from Mr. FM
9. Fertilizers - More subsidies look imminent here
10. Infrastructure - Looking for more allocations towards the development of infrastructure in the country
General
Positives : Increase in FII investment in sectors like such as media, banking and insurance.
Negatives : Likely tax net on Mauritius registered VC's
It is always tough to read the mind of the FM, proved number of times. But the expectation that the budget will prefer the common man will be spot on as the Government will try to pacify him along with the political allies in the wake of next year's general elections.
Majority analysts feel the budget is a non-event. We think otherwise and this is the only opportunity for Bulls to take advantage visible for the next 40 days or so. Keep fingers crossed and the coin tossed till Mr.Chidambaram opens the mystery bag.
Stock in news - Aban Lloyd, IB Real Estate, Matrix Labs, DLF, Gammon and other stocks hit the headlines today.
NIIT Technologies has acquired German-based SofTec GmbH, a specialist in providing IT solutions and services in the airline revenue accounting and operations space.
Sonata Software Ltd has teamed up with Oceanus, a UK based company to enhance their development of integrated Case Management Solutions and Environment Management Solutions, which are specifically designed for customer service environments.
DLF is likely to invest about $5 billion or Rs 20,000 crore to build and operate more than 25,000 rooms in the next 7-8 years.
Gammon India has filed the Red Herring Prospectus in connection with the IPO of its subsidiary Gammon Infrastructure Projects Ltd (GIPL).
Apollo Hospitals is likely to set up a Rs 280 cr hospital in Mauritius
Indiabulls Real Estate (IBREL) will acquire its partner Dev Property Development (DPD) in an all-stock deal worth
Aban Offshore Ltd has received a 3 well contract offshore Myanmar, for the jack-up drilling rig Deep Driller 5, with an estimated duration of 4 months. This contract will be in direct continuation of the current contract with Cairn Energy Sangu Field Ltd. The estimated contract value is approximately USD 25 million