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Daily Market Strategy - Muted start... narrow movement likely

Anil Mascarenhas ,  India Infoline News Service | Mumbai | November 19, 2014 08:31 IST

The market is likely to be driven more by global cues than local factors for now. Investors could get a bit unnerved as FIIs and DIIs turned net sellers on Tuesday. Global cues will play a major factor in the coming days for want of other reasons.

When you are right you cannot be too radical; when you are wrong, you cannot be too conservative. - Martin Luther King Jr.

India Infoline Daily Market Strategy
The market is likely to be driven more by global cues than local factors for now. Investors could get a bit unnerved as FIIs and DIIs turned net sellers on Tuesday. Global cues will play a major factor in the coming days for want of other reasons. Investors will closely watch the developments in Japan too. News flow from Germany is also awaited.
 
The outlook is a positive start. Indices could cool soon. The total market valuation of the BSE-listed companies could cross the Rs. 100 lakh crore-mark if the sentiment remains upbeat today. The BSE has decided to shift stocks of 55 companies to the restricted trading segment from next week.
 
The Dow 0.23% while S&P 500 added 0.51%. The Nasdaq added 0.67%. Asian markets are lackluster. Nikkei was marginally higher while Hang Seng has shed half a percent. Kospi and Shanghai are also trading lower.
 
The Prime Minister of India and the Prime Minister of Australia reaffirmed that the Strategic Partnership between India and Australia is based on converging political, economic and strategic interests; a shared desire to promote regional and global peace, security and prosperity; and a commitment to democracy, freedom, human rights, and the rule of law.
 
Moody's Investors Service says its outlook on Asia's non-financial corporates (excluding Japan) remains stable, reflecting a modest improvement in external demand, led by the US, still-accommodative global monetary conditions, and an orderly economic rebalancing in China.
 
Shares of jewellery companies are trading lower on reports that the Reserve Bank of India (RBI) may increase the restrictions on gold imports.Shares of Titan Company was down 1% at Rs373, while Tribhovandas Bhimji Zaveri is down 2% at Rs157.Tara jewels shares were lower by 2% at Rs93, has dipped 1%.

RBI deputy governor S.S. Mundra reportedly said policymakers are concerned that higher gold imports will worsen the trade deficit.
 
Shares of Punj Lloyd Group has hit 5% upper circuit at Rs40 after the company bagged Rs 666 Crores Asian Highway contract from the Ministry of Road Transport & Highways
 
Shares of Rasoya Proteins Ltd hit 20% lower circuit at Rs4.Last week, the company has posted its Q2 results.
 
Shares of Adani Enterprises was flat at Rs496 after the company received support from Indian and Australian government to help to build a $ 7 billion coal mine, rail and port.
 
Tata Power has issued two series of Non-Convertible Debentures (NCDs) worth Rs. 1500 crore on a private placement basis. The 9.32% unsecured, non-cumulative, redeemable, listed, and rated Series 1 NCDs aggregating Rs. 1,000 crore will repaid in 2017.
 
The 9.48% unsecured, non-cumulative, redeemable, listed, and rated Series 2 NCDs aggregating Rs. 500 crore will be repaid in 2019.The NCDs will be listed on the Wholesale Debt Market segment of National Stock Exchange of India Limited.
 
Ranbaxy Laboratories Ltd has sued US Food and Drug Administration (FDA) for revoking approvals granted to the firm to launch copies of two drugs including AstraZeneca Plc's heartburn pill Nexium, according to reports.Last month, FDA told Ranbaxy that it believed its decisions to grant the company tentative approvals for copies of Nexium and Roche AG's antiviral Valcyte were "in error".
 
Cable distribution firm Ortel Communications Ltd  has received SEBI's approval to raise funds through an initial public offer (IPO), according to reports.Report stated that the company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in September.

Trends in FII flows: The FIIs were net sellers of Rs 1.01bn in  the cash  segment  on Tuesday, while the domestic institutional investors (DIIs) were  the  net sellers of Rs 2.32 bn, as per the provisional figures released by the NSE.
 
Global Data: MNI Business Sentiment Indicator (Oct) CNY, BoJ Interest Rate Decision JPY, BoJ Monetary Policy Statement JPY, All Industry Activity Index (MoM) (Sep) JPY, Leading Economic Index (Sep) JPY, Coincident Index (Sep) JPY, BoJ Press Conference JPY, Current Account n.s.a (Sep) EUR, Current Account s.a (Sep) EUR, Bank of England Minutes GBP, BOE MPC Vote Cut GBP, BOE MPC Vote Hike GBP, BOE MPC Vote Unchanged GBP, Construction Output w.d.a (YoY) (Sep) EUR, Construction Output s.a (MoM) (Sep) EUR, ZEW Survey -  Expectations (Nov) CHF, MBA Mortgage Applications (Nov 14) USD, Building Permits (MoM) (Oct) USD, Housing Starts (MoM) (Oct) USD, EIA Crude Oil Stocks change (Nov 14) USD, FOMC Minutes  USD, Producer Price Index - Output (QoQ) (Q3) NZD, Producer Price Index - Input (QoQ) (Q3) NZD, Foreign bond investment (Nov 14) JPY, Foreign investment in Japan stocks (Nov 14) JPY, Merchandise Trade Balance Total (Oct) JPY, Adjusted Merchandise Trade Balance (Oct) JPY, Exports (YoY) (Oct) JPY.
 
In other news in the media
 
Cadila Pharmaceuticals Ltd is now focussing on ayurvedic over-the-counter products segment to fuel growth in the Indian market, which has recently seen several allopathic drugs come under price control. (BS)
 
Ranbaxy Laboratories Ltd has sued the US Food and Drug Administration for revoking approvals granted to the firm to launch copies of two drugs including AstraZeneca Plc's heartburn pill Nexium, court documents showed. (BS)
 
MTNL has raised Rs15bn by selling bondsto institutional investors and the funds would be used to repay debt. (BS)
 
Punj Lloyd announced securing a Rs6.66bn contract for the 90.58 km Asian Highway project from the Ministry of Road Transport. (BS)
 
Fair trade regulator CCI has approved Jaiprakash Associates proposed sale of its Haryana's cement grinding unit to Shree Cements, saying the deal will not raise anti-competition concerns in the country. (BS)
 
IOC is reportedly planning to set up an ethylene derivative plant at its Paradip refinery complex in Orissa with an investment of Rs40bn. (BS)
 
Praj Industries has bagged a Rs2.35bn order for oil & gas process skids for Petrobras, Brazilian energy major. (BS)
 
After test marketing its products for almost two years in southern parts of the country, Mother Dairy will formally launch its dairy products in Chennai in a month and the company which is currently growing at a CAGR of 20 %, is also eyeing Rs100bn business by 2017. (ET)
 
Tata Global Beverages is looking to cash in on the growing awareness on health and wellness to reinforce its dominance in the green tea segment in the country by launching new products and tapping small towns. (ET)
 
Godrej group, which is eyeing a ten-fold increase in business volumes within a decade, is banking heavily on e-commerce to achieve its 'Vision 2020' target. (ET)
 
Kolte-Patil Developers said it has entered into a development management agreement with NOW Realty to develop a residential project in Pune. (ET)
 
National Mineral Development Corporation and Odisha Mining Corporation are vying for 51% stake in a mega steel project planned in Keonjhar district. (BS)
 
Tata Power said it has raised Rs15bn through issue of securities. The proceeds would be used for general corporate purposes of the company, including repayment of maturing foreign currency convertible bonds, capital expenditure and working capital. (BS)
 
For a country that boasts of an expansive coastline of 7,500 kilometres, coastal shipping plays a surprisingly small role, transporting a little over 160 mn tones (mt) of cargo in 2012-13, in the domestic movement of goods. To rectify this imbalance, the government is mulling over a scheme to promote coastal shipping.(BS)
 
India's economic growth is expected to pick up to 5.6 % in the current fiscal on account of structural reforms being rolled-out by the government, Fitch Ratings said today. (ET)
 
The government is likely to announce measures to curb gold imports, a senior finance ministry source said, as a surge in inbound shipments threatens to worsen the trade deficit.(BS)
 
TEN MOST ACTIVE FUTURES
Symbol No.of Cont Traded Last price Open Interest % chg in Op.Int
SBIN 54,964 2,945.90 5641375 -8.36
RELCAPITAL 41,148 524.10 13669500 -7.50
HDFCBANK 34,617 936.65 42971750 -1.54
RCOM 31,457 115.70 50402000 3.67
TATASTEEL 27,202 488.65 19863000 0.67
RELIANCE 22,905 991.10 32998500 -2.16
BHARATFORG 21,472 947.30 4065000 3.07
RELINFRA 20,705 659.75 5786000 -1.92
CROMPGREAV 19,676 203.65 16917000 -4.22
IDFC 18,845 163.10 54912000 4.53
 
TEN MOST ACTIVE OPTIONS
Option Type Strike price No.of Cont Traded Open Interest % Chg in Op.In
SBIN CE 3,000 24,560 829500 7.47
SBIN PE 2,900 14,672 391500 18.73
SBIN CE 3,100 12,056 409375 51.27
SBIN CE 2,950 10,775 461875 10.63
SBIN PE 2,800 9,489 622750 -5.55
RELIANCE CE 1,000 9,294 2612750 -0.20
SBIN CE 3,050 8,642 232625 55.21
SBIN PE 2,850 7,988 274125 19.38
SBIN PE 2,950 7,733 108000 146.15
RCOM CE 115 6,124 1856000 12.08
 
SUPPORT & RESISTANCE LEVEL
Company Name S3 S2 S1 Close R1 R2 R3
ACC 1,472 1,476 1,480 1,488 1,496 1,500 1,503
AMBUJACEM 224 224 225 227 228 229 229
ASIANPAINT 684 688 691 698 705 708 712
AXISBANK S3 468 470 473 476 477 479
BAJAJ-AUTO 2,619 2,625 2,631 2,644 2,657 2,663 2,670
BANKBARODA 1,040 1,043 1,047 1,053 1,060 1,064 1,067
BHARTIARTL 391 393 395 400 404 406 408
BHEL 250 251 252 254 256 257 258
BPCL 711 713 715 720 724 726 728
CAIRN 265 266 266 268 270 270 271
CIPLA 600 602 604 608 611 613 615
COALINDIA 345 347 348 351 354 356 357
DLF 136 137 137 139 140 140 141
DRREDDY 3,405 3,412 3,419 3,434 3,448 3,456 3,463
GAIL 478 480 483 489 494 497 500
GRASIM 3,553 3,563 3,574 3,596 3,618 3,629 3,639
HCLTECH 1,582 1,587 1,591 1,600 1,609 1,614 1,618
HDFC 1,083 1,089 1,094 1,105 1,116 1,122 1,127
HDFCBANK 919 922 926 934 942 945 949
HEROMOTOCO 2,982 2,989 2,996 3,011 3,026 3,033 3,040
HINDALCO 151 152 153 155 157 158 159
HINDUNILVR 746 747 749 752 755 756 758
ICICIBANK 1,671 1,673 1,676 1,681 1,686 1,689 1,692
IDFC 158 159 160 162 164 165 166
INDUSINDBK 717 719 720 723 726 727 729
INFY 4,150 4,159 4,169 4,187 4,205 4,215 4,224
ITC 368 368 369 370 372 372 373
JINDALSTEL 152 153 154 157 159 160 161
JPASSOCIAT 33 34 34 35 35 36 36
KOTAKBANK 1,065 1,070 1,075 1,085 1,095 1,100 1,105
LT 1,627 1,633 1,639 1,650 1,661 1,667 1,672
LUPIN 1,422 1,427 1,432 1,442 1,452 1,457 1,462
M&M 1,252 1,255 1,259 1,265 1,272 1,276 1,279
MARUTI 3,324 3,333 3,342 3,359 3,376 3,385 3,393
NMDC 150 150 151 152 153 153 154
NTPC 145 146 146 147 148 148 149
ONGC 386 387 388 391 394 395 396
PNB 961 965 969 978 987 991 995
POWERGRID 146 146 147 148 149 150 151
RANBAXY 613 617 621 629 637 641 645
RELIANCE 979 981 983 988 992 994 996
SBIN 2,904 2,913 2,923 2,941 2,959 2,968 2,977
SSLT 238 240 242 246 250 252 254
SUNPHARMA 846 851 856 867 877 883 888
TATAMOTORS 535 536 538 542 545 547 548
TATAPOWER 88 88 89 89 90 90 90
TATASTEEL 478 480 482 486 490 492 494
TCS 2,555 2,562 2,570 2,586 2,601 2,609 2,617
ULTRACEMCO 2,490 2,500 2,510 2,530 2,550 2,560 2,570
WIPRO 564 565 566 568 570 571 572
 
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article
113110817830
Daily Market Strategy - Muted start... narrow movement likely
Daily Market Strategy - Muted start... narrow movement likely
The market is likely to be driven more by global cues than local factors for now. Investors could get a bit unnerved as FIIs and DIIs turned net sellers on Tuesday. Global cues will play a major factor in the coming days for want of other reasons.
http://www.indiainfoline.com/article/news-top-story/daily-market-strategy-smart-start-for-market-with-moody’s-boost-and-global-gains-113110817830_1.html
November 19, 2014 08:31 IST
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Sensex, Nifty, BSE, NSE, RIL, National Spot Exchange Limited, NSEL, Raghuram Rajan, IIP, P Chidambaram, vote on account, fiscal deficit, F&O expiry, Finance Minister Arun Jaitley, budget, ICICI Prudential Life Insurance, ICICI Prudential Mutual Funds, Reliance Mutual Fund, SBI Life, Birla Mutual Fund, Tata Mutual Fund, Axis Bank
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