F&O Expiry to add fuel to Korean fire

Dalal Street is likely to open marginally in the green and might hit the roller coaster again, thanks to the Futures & Options expiry slated for tomorrow.

US Markets sank Tuesday as a clash in the Korea peninsula was added to the list of uncertainties weighing on investors. The Dow Jones Industrial Average fell

142.21, or 1.27%, to 11, 036.37 and the S&P 500 lost 16.81, or 1.40%, to 1,181.03. The Nasdaq dropped 37.07, or 1.46%, to 2,494.95.

Asia developed cold feet on Wednesday morning with Nikkei sliding 1.18 pct while Shangai is trading in the green.

DII Buying

It is interesting to see the Domestic Institutional Investors (DII) picking stocks during the panic session on Wednesday. The next rally we believe will be triggered by DIIs and FIIs who are selling now to cash their chips for the year end may have to pay premium for buying Indian equities.

Coal India

Coal India Ltd. is open to acquiring U.S.-based Massey Energy Co , the Business Standard reported on its website Tuesday, citing the Indian company's chairman, Partha Bhattacharyya.

Market Outlook

Though Indian Markets are not out of woods, Investors can start cherry picking with the expectation of another 4-5 pct downside in the Indices. Only bravehearts can trade in this market.

It would be interesting to see if Nifty closes around 6000 or 5900 levels for the expiry.

Mumbai realty stocks likely to witness further interest

Dalal Street is likely to open in the red on Tuesday morning on negative global cues with consolidation the name of the game after a big move yesterday. Wall Street recovered from a 100 point loss on Dow Jones. After hours Hewlett-Packard posted strong quarterly results.

Nikkei is closed today on account of a holiday while rest of the Asian markets are trading in the red Tuesday morning.

Stocks in News :


* The Dainik Jagran group, publishers of India’s third-largest Hindi daily, has bought a stake in Chennai-based EdServ, an education and placement company.

* RPG group-owned Zensar Technologies acquired US-based infrastructure management company PSI Holding , which operates under the name Akibia, in an allcash deal of $66 million, the Indian software exporter said at a conference on Monday.

Markets - Next move critical

The next move of the Market is critical. With expiry on Thursday, major slide in the indices can be ruled out. volatility is likely to stay there but do not expect major moves in the market for the next three trading sessions.

Mumbai realty stocks are likely to be in limelight after Navi Mumbai airport news yesterday. Also stocks like GVK, GMR might see some interest too.

China ups Reserve Ratio, Asian Markets trade in green

Irish government said Sunday that it will start formal negotiations with the European Union and the International Monetary Fund over a financial rescue package, pushing speculators to look forward to other European countries like Portugal and Spain.

Portugal is seen as the next domino likely to fall once Ireland’s debt crisis is resolved, but the true showdown will pit bond-market vigilantes against Spain. We believe if Spain goes down, that would be the end of the bull run across the globe.

On Friday US Markets closed in the green after China’s central bank, the People’s Bank of China, announced the year’s fifth hike in the reserve requirement ratio by 50 basis points effective November 29.

Asian Markets are trading in the green today with the exception of China.

Dalal Street : Whats happening ?

Indian Markets are in no mood to take any positive global cues and ready to slide on the slightest negatives cues. Key technical levels were breached and we might see more sell-off in the coming days. Year FII selling is blamed to be one of the reasons for the current slide, there is no buying support for the markets on every slide.

While a target of 5600 is doing rounds, it is too early to come out with targets. Investors should stay cautious and pick good stocks at lower levels. We continued our Wait and Watch mode and believe the current volatility gives no room for traders.

While global markets go ga ga, Dalal Street sees a soft opening

US Markets had a field day on Thursday as worries about Ireland's debt situation eased and better than expected jobless claims data.

Asian markets are trading higher on Friday on global cues. Barring Dalal Street rest of the global markets clocked decent gains on Thursday. Looking at Singapore Nifty at 07:00 AM IST today, the cues suggest another volatile day and traders are cautious to take positions to the upside.

Yesterday's rocky session caught traders on the wrong foot and we advice investors to stay put and cherry pick stocks at lower levels. While the current sell-off is not driven by any fundamental reasons, the year-end profit booking seems to have advanced and Chinese rate hike fears is just an excuse.

Midcaps to stay weak

During the current conditions Midcaps and Smallcaps will be out of favour and action will be more focussed on Largecap stocks. It is indeed a good time to add quality midcap stocks.

Inflation data is softening and thats good news for investors. The data will relieve RBI from considering another rate hike in the near term. FIIs were net sellers in Index Futures, Index Options and in Cash segment.

We expect market to open flat despite amazing global cues and staying short at these oversold levels might be a little tricky but certainly momentum is not showing any bullish moves.

Nikkei, the only Asian market weathering the storm

Bears are likely to dictate terms in the early session when Dalal Street opens for trade on Thursday morning on weak Asian cues.

Except for Japanese market Nikkei, rest of the Asian markets were hit really hard in the past one week. Wall Street closed the day flat on good retail sales numbers.

Traders eyeing technicals

While Nifty has huge support at 5970 level the next major support stands at 5840, we still believe that Bulls have an out and out chance in today's trade to protect the major support level today.

Traders should keep an eye on next week's F&O expiry. For now the "Max Pain" for Nifty stands at 6000 levels and it is worth noticing that FIIs were net buyers in Index options and Index Futures on Wednesday.

Chinese rate hike fears are overblown and we expect things to settle down soon. Investors are adviced to start adding stocks to their kitty but avoid buying at a single price inorder to tackle market corrections

Calm after storm, Dalal Street to open flat

Mumbai stocks are most likely to open marginally in the green after Asian markets are trading positively on Ireland bail out news. Japan's gross domestic product grew 0.9% in the July-September quarter, picking up from 0.4% growth in the previous three months, pushing Japanese stocks higher.

Irish Bailout

While till yesterday Irish officials were denying EU bailout, Germany pushed to accept a bailout and help reverse a bond sell-off across the euro-region’s periphery.

Dalal Street - Subdued open on cards

We expect Indian markets to open in the green after severe battering in the last two trading sessions. It is not advisable to go short at higher levels atleast for today. One should be cautious with commodity stocks along with Banking stocks.

While Finance minister's comments about 9 pct growth might not bring too much cheer from the market, dead cat bounce might bring in some gains to the market. We believe the trend would be clear only after Wednesday and one should be cautious in the next three trading sessions.

We do not have a second thought in saying this correction is just a passing cloud and Indian markets will be back on track soon

GMR might sell Intergen stake to China's Huaneng Power

Dalal Street might be heading for another gap down open despite of flattish global cues on the the last trading day for the weak, thanks to hectic selling in Index futures by the FIIs.

Wall Street received a jolt in the form of Cisco's weak estimates but recovered from the lows of the day. Asian markets are trading down marginally.

GMR to sell Intergen stake

Chinese utility company Huaneng Power emerged the highest bidder for the purchase of 50 per cent stake in InterGen, which was put on the block by GMR. Investment banking sources say Huaneng one of the largest power companies in China is known to have put in a bid for as much as $1.5 billion.

GMR bought the stake for $1.1 billion in October 2008.

Intensive Selling

Yesterday's afternoon session reminded the days of Euro crisis and we witnessed a big round of basket selling. We believe the selling is something related to domestic factors and nothing to do with global crisis or Kospi's slide in yesterday's trade. Year end profit booking is one thing we can think of and slow down of inflows due to holiday season might added weight to the selling.

Current selling should be treated as a good oppurtunity for adding fundamentally sound counter