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Daily Market Strategy - Beyond limits! New highs for market today

Anil Mascarenhas,  India Infoline News Service | Mumbai | October 31, 2014 08:30 IST

The opening is a weak start. The global cues are subdued. The Federal ended its monthly bond purchase program.

Limitations live only in our minds. But if we use our imaginations,  our possibilities become limitless. - Jamie Paolinetti
 
With October turning out to be much better than expected, the indices are sitting perched at new highs as investors hope for a nice November now. Net buying by FIIs was over Rs 1,200 crore on Thursday while combined turnover on both the exchanges hit record highs of Rs 10.40 lakh crore.
 
The indices are set to open up higher and may hit new highs. Short sellers were trapped on Thursday after Nifty moved past confidently beyond the 8100 mark. Profit booking could set in anytime even though FIIs have opened their purses further.  M&M, NTPC and Gail results will be in focus.
 
Gone are the days when the fear of quantitative easing would pull down markets including India. Ironically, when the end of QE has been announced, markets are celebrating at upper levels.
 
While most stocks are seeing re-rating, the ratings of India too are set to improve. Big bang reforms remain on the wish list. Winter session of Parliament could hopefully be a winter of content. Moody's has reversed its India outlook, saying it may upgrade the country's sovereign rating if inflation stays under control in the long term and the recent measures to boost growth and attract investments are implemented properly. "We would revisit our assessment of India's institutional strength if its inflation metrics, investment climate, and policy predictability and transparency were to show sustained improvement," Moody's Investor Service stated.
 
Glenmark Pharmaceuticals Ltd posted a net profit at Rs. 1650.78 mn for the quarter ended September 30, 2014 as compared to Rs. 1542.97 mn for the quarter ended September 30, 2013..
 
Shares of Bharti Airtel Ltd will be in focus after the company has posted a net profit of Rs. 13832 mn for the quarter ended September 30, 2014 as compared to Rs. 5120 mn for the quarter ended September 30, 2013. Total Income has increased from Rs. 213428 million for the quarter ended September 30, 2013 to Rs. 228617 mn for the quarter ended September 30, 2014.
 
Hindustan Construction Company Ltd has posted a net profit of Rs. 67.60 mn for the quarter ended September 30, 2014 as compared to Rs. 316.00 million for the quarter ended September 30, 2013. The stock will be in focus today.
 
ICICI Bank Ltd has posted a net profit of Rs. 30646.20 mn for the quarter ended September 30, 2014 as compared to Rs. 26974.20 million for the quarter ended September 30, 2013. Total Income has increased from Rs. 190155.80 mn for the quarter ended September 30, 2013 to Rs. 221503.90 million for the quarter ended September 30, 2014.
 
Maruti Suzuki reported net profit at Rs. 8.62 bn as against Rs. 6.70 billion the same quarter in the previous fiscal. During the period under review, the total income increased to Rs.123.03 bn as against Rs. 104.68 bn. The stock was up 2% at Rs3264.
 
Shares of Dish TV India Ltd was down 4% at Rs55 post Q2 results. The company has posted a net loss of Rs. (150.70) mn for the quarter ended September 30, 2014 where as the same was at net loss of Rs. (85.30) mn for the quarter ended September 30, 2013. 
 
Yes Bank Ltd has posted a net profit of Rs. 4825.40 mn for the quarter ended September 30, 2014 as compared to Rs. 3711.30 million for the quarter ended September 30, 2013. Total Income has increased from Rs. 29473.90 mn for the quarter ended September 30, 2013 to Rs. 33379.70 million for the quarter ended September 30, 2014.The stock is up 25 at Rs652.
 
Shares of Gati Ltd surged 5% at Rs208 post Q2 results. In  Q2FY'15, the Company's consolidated net profit rose by 117% at Rs 12.49 crore as against Rs 5.76 crore in the corresponding quarter previous year. 
 
Ceat Ltd has posted a net profit after taxes, minority interest and share of profit of associates of Rs. 823.50 million for the quarter ended September 30, 2014 as compared to Rs. 765.50 mn for the quarter ended September 30, 2013. Total Income has increased from Rs. 13383.90 million for the quarter ended September 30, 2013 to Rs. 14448.00 mn for the quarter ended September 30, 2014.
 
Gold prices tumbled by Rs 400 to trade at nearly one-month low of Rs 27,100 per 10 grams. Report also said that Silver declined by Rs 550 to Rs 37,850 per kg.
 
Microsoft Corp launched a device called "Microsoft Band" that will allow users to monitor their fitness and exercise regime, says report.
 
Results Watch: Mahindra & Mahindra, ITC, NTPC, Suzlon Energy, Gail, IDBI Bank, JSW Energy, Union Bank, PVR, Whirlpool, Kirloskar Brothers, Karnataka Bank, NMDC, Zyden Gentec, Admanum, Asian Granito, Centum, Colinz Laboratories, Denora, Goenka, Healthfore Technologies, Hatson, JIK Industries, JK Papers, Investments, KEC International, Kirloskar Multimedia, Khyati Multimedia- Entertainment, Lanco Industries, Kalyanpur Cements, Indo-National.
 
Trends in FII flows: The FIIs were net buyers of Rs12.57bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were the net sellers of Rs940mn, as per the provisional figures released by the NSE.
 
Global Data: Gfk Consumer Confidence (Oct) GBP, Private Sector Credit (YoY) (Sep) AUD, Private Sector Credit (MoM) (Sep) AUD, Producer Price Index (YoY) (Q3) AUD, Producer Price Index (QoQ) (Q3) AUD, M3 Money Supply (YoY) (Sep) NZD, BoJ Monetary Policy Statement JPY, Housing Starts (YoY) (Sep) JPY, Annualized Housing Starts (Sep)JPY, Construction Orders (YoY) (Sep) JPY, BoJ outlook report JPY, BoJ Press Conference JPY, Retail Sales (YoY) (Sep) EUR, Retail Sales (MoM) (Sep) EUR, Consumer Spending (MoM) (Sep) EUR, Producer Prices (MoM) (Aug) EUR, Unemployment (Sep) EUR, Consumer Price Index (YoY) (Oct) Preliminar EUR, Consumer Price Index (EU Norm) (MoM) (Oct) Preliminar EUR, Consumer Price Index (EU Norm) (YoY) (Oct) Preliminar EUR, Consumer Price Index (MoM) (Oct) Preliminar EUR, Current Account Balance (Aug) EUR, Consumer Price Index (YoY) (Oct) Preliminar EUR, Consumer Price Index - Core (YoY) (Oct) Preliminar EUR, Unemployment Rate (Sep) EUR, Retail Sales (YoY) (Aug) EUR, Federal Fiscal Deficit, INR (Sep) INR, Producer Price Index (YoY) (Sep) EUR, Producer Price Index (MoM) (Sep) EUR, Bank Loan Growth INR, FX Reserves, USD INR, Gross Domestic Product (MoM) (Aug) CAD, Employment cost index (Q3) USD, Personal Income (MoM) (Sep) USD, Core Personal Consumption Expenditure - Price Index (MoM) (Sep) USD, Core Personal Consumption Expenditure - Price Index (YoY) (Sep) USD, Personal Consumption Expenditures - Price Index (MoM) (Sep) USD, Personal Consumption Expenditures - Price Index (YoY) (Sep) USD, Personal Spending (Sep) USD, Chicago Purchasing Managers Index(Oct) USD, Reuters/Michigan Consumer Sentiment Index (Oct) USD.
 
In other news in the media:
 
Cipla, which has launched its own version of the Novaritis's respiratory drug Indacaterol sold under the Onbrez brand, has asked DIPP to revoke five patents of Novartis relating to the product citing need for public health access and stated the patent holder Novartis does not manufacture the drug in India. (BS)
 
Oil and Natural Gas Corporation (ONGC) has ordered its executives to rework tender documents relating to material management including service and equipment contracts. The move follows the government's latest decision to withdraw the 10% price preference available to domestic companies against their foreign counterparts. (BS)
 
Vijaya Bank has augmented its Tier-II capital by raising Rs5bn through an issue of unsecured redeemable non-convertible Basel-III compliant Tier-II bonds with a coupon rate of 9.15% per annum. The issue was fully subscribed and allotment was made. (BS)
 
Bayer CropScience has signed an agreement to purchase certain DuPont Crop Protection Land Management assets in the US, Canada, Mexico, Australia and New Zealand for an undisclosed amount. (BS)
 
Tata Motors' Jaguar Land Rover opens GBP500mn factory in Britain; to create 1,400 jobs. (ET)
 
Mahindra Logistics, a subsidiary of Mahindra & Mahindra said it has partnered with Indian Vehicle Carriers to form a new entity '2x2 Logistics' with an aim to offer original equipment manufacturers global standards of service and technology. The company will initially invest in 100 specially designed car carriers to serve automobile and two-wheeler OEMs. (ET)
 
Indiabulls Power plans to bid for coal blocks being auctioned and has no plans to bring in a strategic partner or to sell stake as it hopes to grow organically. (ET)
 
Bharat Petroleum Corp Ltd aims to double its refining margins once it completes the expansion and upgrade of its Kochi refinery in southern India to process high sulphur crudes by 2016. (ET)
 
Thermax said it has bagged a contract worth Rs3.21bn for setting up a captive power plant in Africa. (ET)
 
In a major step forward towards building India's longest six lane access controlled expressway, the Akhilesh Yadav government signed the agreement with private companies such as L&T, Afcons Infrastructure, PNC Infratech and Nagarjuna Construction Company. (BL)
 
Wheels India Ltd, an automotive wheel manufacturer, is depending on the export market to sustain its growth. The company's investments of ~Rs850mn in the current year will focus on exports including capacity additions in aluminium-forged wheel production, other export-oriented products and expansion into allied products that are in demand in the domestic markets. (BL)
 
A delegation from Japan Iron and Steel Federation has discussed the possible areas of collaboration with the SAIL's operations team. The areas of likely cooperation included technologies related to products, CO2 reduction in steel making, improving coal blends and benchmarking studies. (BL)
 
Power Grid Corporation of India has commissioned the first 765-kV double circuit line from Nellore to Kurnool, thereby linking the South India Grid. (BL)
 
India's universal health plan that aims to offer guaranteed benefits to a sixth of the world's population will cost an estimated Rs1600bn over the next four years, a senior health ministry official said. Under the National Health Assurance Mission, Prime Minister Narendra Modi's government would provide all citizens with free drugs and diagnostic treatment, as well as insurance cover to treat serious ailments. (BS)
 
The government is likely to bring amendments to the Land Acquisition Act in the Winter session of Parliament. (ET)
 
Kerala High Court partially endorsed the government's liquor policy by disallowing the functioning of bars attached to two and three-star hotels, while, at the same time, allowing four and five-star bars as well as heritage bars to function. (BL)
 
TEN MOST ACTIVE FUTURES
Symbol

No.of Cont Traded

Last price

Open Interest

% chg in Op.Int

RELIANCE

55,013

979.25

4365000

-62.04

ICICIBANK

33,563

1,614.05

3793250

-30.78

SBIN

31,301

2,638.00

1280375

-45.48

TCS

27,837

2,558.20

1657750

-35.57

TECHM

27,120

2,479.55

705250

-62.52

DLF

26,151

124.15

5748000

-57.43

MARUTI

23,301

3,240.25

486875

-39.42

INFY

19,415

3,946.55

1602500

-22.10

HDFCBANK

18,471

896.65

5652000

-42.79

RELINFRA

16,812

597.55

1137500

-57.67

TEN MOST ACTIVE OPTIONS

Option Type

Strike price

No.of Cont Traded

Open Interest

% Chg in Op.In

INFY

CE

4,000

13,525

646625

-9.69

RELIANCE

CE

960

12,005

911500

-35.90

PTC

PE

80

10,907

22344000

17,919.35

SBIN

CE

2,650

10,151

278375

48.57

DLF

CE

130

8,360

2394000

18.75

ICICIBANK

CE

1,600

8,065

383000

-25.92

DLF

CE

125

7,590

2254000

3.02

DLF

PE

120

7,311

2510000

205.35

INFY

CE

3,950

6,947

89750

-32.58

MARUTI

CE

3,300

6,596

246500

446.26

SUPPORT & RESISTANCE LEVEL

Company Name

S3

S2

S1

Close

R1

R2

R3

ACC

1,470

1,475

1,481

1,492

1,503

1,509

1,514

AMBUJACEM

219

220

221

223

225

226

227

ASIANPAINT

641

642

643

645

647

648

649

AXISBANK

S3

425

426

430

433

434

436

BAJAJ-AUTO

2,527

2,535

2,544

2,560

2,577

2,585

2,593

BANKBARODA

899

902

905

912

919

922

925

BHARTIARTL

402

403

405

407

410

412

413

BHEL

252

253

254

255

257

258

259

BPCL

690

692

695

700

705

707

710

CAIRN

276

278

279

282

284

286

287

CIPLA

640

643

646

651

657

660

663

COALINDIA

354

355

356

358

360

362

363

DLF

118

119

121

123

126

127

128

DRREDDY

3,052

3,058

3,065

3,079

3,093

3,100

3,106

GAIL

495

498

501

507

513

516

519

GRASIM

3,396

3,407

3,418

3,439

3,460

3,471

3,482

HCLTECH

1,537

1,548

1,560

1,583

1,606

1,618

1,629

HDFC

1,043

1,047

1,052

1,060

1,068

1,073

1,077

HDFCBANK

888

890

892

896

901

903

905

HEROMOTOCO

2,995

3,002

3,010

3,024

3,038

3,046

3,053

HINDALCO

154

156

157

159

162

163

164

HINDUNILVR

719

722

724

730

736

739

742

ICICIBANK

1,577

1,584

1,591

1,605

1,619

1,626

1,633

IDFC

144

145

146

148

150

151

152

INDUSINDBK

691

696

701

712

722

728

733

INFY

3,889

3,902

3,917

3,945

3,973

3,988

4,001

ITC

351

352

353

355

357

358

359

JINDALSTEL

153

154

155

158

160

161

162

JPASSOCIAT

29

30

30

30

31

31

31

KOTAKBANK

1,081

1,085

1,090

1,098

1,106

1,111

1,115

LT

1,572

1,577

1,582

1,591

1,601

1,606

1,610

LUPIN

1,330

1,334

1,339

1,348

1,357

1,362

1,366

M&M

1,267

1,272

1,277

1,288

1,298

1,303

1,308

MARUTI

3,148

3,168

3,190

3,232

3,274

3,296

3,317

NMDC

165

166

166

168

170

170

171

NTPC

145

146

146

147

148

148

148

ONGC

393

394

395

397

399

400

400

PNB

900

904

908

915

923

927

931

POWERGRID

141

142

143

144

145

146

146

RANBAXY

617

619

621

625

629

631

633

RELIANCE

955

961

967

978

989

995

1,001

SBIN

2,623

2,628

2,634

2,644

2,654

2,659

2,664

SSLT

250

250

251

253

254

255

256

SUNPHARMA

818

820

823

828

833

836

838

TATAMOTORS

518

519

521

525

529

531

532

TATAPOWER

90

90

90

90

91

91

91

TATASTEEL

466

468

469

472

475

477

478

TCS

2,520

2,530

2,541

2,563

2,585

2,596

2,606

ULTRACEMCO

2,489

2,496

2,504

2,520

2,536

2,544

2,551

WIPRO

557

558

559

560

562

563

564









 

 
 
 
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