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Daily Market Strategy - Happy Diwali! Market set to light up

Anil Mascarenhas,  India Infoline News Service | Mumbai | October 22, 2014 08:30 IST

The outlook is a positive start. The Nifty will hope to hit the 8000 mark ahead of the long weekend.

Diyas of Hope are burning bright, filling hearts with eternal delight Hope, joy, prosperity and health...Wishing you happiness & Peace this Diwali
 
The dazzle was brought in by Dhanteras and on the eve of the festival of lights, the market appears to be in a mood to sparkle. Besides spring cleaning your home, you may like to check if your portfolio requires some cleaning.  Just because the overall long term outlook remains positive doesn't mean all stocks will move up.
 
The outlook is a positive start. The Nifty will hope to hit the 8000 mark ahead of the long weekend. Customary trading will be done during Muhurat trading late in the evening tomorrow. Attention will be on Wipro numbers later in the day.  The Bank Nifty has been soaring on hopes that the RBI may consider a rate cut sooner than later.  Global cues also appear supportive.
 
US stocks gained with corporate results coming in better than expected.
 
The S&P 500 and Dow Jones added over 1%, while the Nasdaq rallied more than 2%. Hopes of broader monetary stimulus in Europe kept global markets upbeat.
 
Asian indices also appear to be in Diwali mood with the Japan's Nikkei 225 gaining over 1.50%. Hong Kong's Hang Seng index and South Korea's Kospi index are up over half a percent while China's Shanghai index is marginally lower.

NCC Limited's rights issue of equity shares aggregating to Rs. 598.70 crore has been oversubscribed.

SEBI has sought clarification from the merchant banker of Rashtriya Ispat Nigam Ltd (RINL) regarding the company's proposed initial public offer (IPO). Without disclosing the details of clarifications sought from RINL, SEBI has said "clarifications (are) awaited from lead manager" for the proposed public issue, a report stated.

Kalyanpur Cements said that the board of directors of the company on Monday had decided not to proceed with the rights issue of equity shares and hence the proposed issue stood withdrawn.

The stock of DIC India crashed 10% after the delisting offer by its promoter failed to get good response.

DIC Asia Pacific, promoter of DIC India (formerly Dainippon Ink and Chemicals India), had fixed the floor price at Rs174 and an indicative price of Rs260 a share to its shareholders, says a report.

Justdial has received board approval to raise up to Rs 1,000 crore, a move seen furthering its ambitions in the booming online retail industry.
 
Ukraine and Russia on Tuesday failed to get a decisive breakthrough in their standoff over gas supplies to Kiev and will resume European Union-sponsored talks next week. Russian President Vladimir Putin and his Ukraine counterpart Petro Poroshenko had agreed on a broad thrust of a deal on Friday, but the issues on how, when and how much Ukraine should pay continued to divide the sides, a report stated.
 
Foreign funds are buying more Indian corporate bonds as there is no sign that the $25-billion limit on government securities -- close to being exhausted -- is going to be raised. Overseas portfolio investors have used up nearly half the overall investment limit in corporate bonds compared with 37 per cent four months ago, says a report in ET.
 
Cairn India Ltd has posted a net profit of Rs. 22778.80 mn for the quarter ended September 30, 2014 as compared to Rs. 33850.80 million for the quarter ended September 30, 2013. Total Income has decreased from Rs. 51899.70 mn for the quarter ended September 30, 2013 to Rs. 45683.30 mn for the quarter ended September 30, 2014.The stock will be in focus today.
 
HDFC Bank Ltd has posted a net profit of Rs. 23814.60 mn for the quarter ended September 30, 2014 as compared to Rs. 19823.20 million for the quarter ended September 30, 2013. Total Income has increased from Rs. 119376.90 mn for the quarter ended September 30, 2013 to Rs. 138947.30 million for the quarter ended September 30, 2014.The stock is trading flat at Rs. 898.
 
Punjab National Bank has posted a net profit of Rs. 5753.40 million for the quarter ended September 30, 2014 as compared to Rs. 5054.90 million for the quarter ended September 30, 2013.The stock is down 2% at Rs. 940 as against the previous close of Rs. 956 on BSE.
 
Shares of Financial Technologies (India) hit 20% lower circuit at Rs 169 after the company said it has received a draft order of amalgamation of National Spot Exchange Limited (NSEL) with the company.
 
The Indian government's 18 October decision to deregulate diesel prices will have a positive effect on the national oil marketing companies that are the principal retailers of petroleum products, says Fitch Ratings. The decision is also likely to lead to more private firms entering the diesel market in the medium term, resulting in greater competition.
 
Gold rose to a six-week high at above $1,250 an ounce on Tuesday, and concerns over an economic slowdown in China.

BJP Legislative Party leaders has appointed Manohar Lal Khattar to be the next Chief Minister of Haryana.

Results Watch: Asian Paint, Binani Industries, DIC India, Grindwell Norton, Havells India, HDFC Corp, Kansai Nerolac Paints, Kotak Bank, KSB Pumps, Mahindra & Mahindra Financial Services, Mastek, Saint Gobain, Tata Metaliks and Wipro.

Trends in FII flows: The FIIs were net sellers of Rs324mn in the cash segment on Tuesday, while the domestic institutional investors (DIIs) were the net buyers of Rs689.4bn, as per the provisional figures released by the NSE.

Global Data: Consumer Price Index (YoY) (Q3) AUD, Consumer Price Index (QoQ) (Q3) AUD, RBA trimmed mean CPI (QoQ) (Q3) AUD, RBA trimmed mean CPI (YoY) (Q3) AUD, BOE MPC Vote Cut GBP, BOE MPC Vote Hike GBP, BOE MPC Vote Unchanged GBP, 30-y Bond Auction EUR, Bank of England Minutes GBP, MBA Mortgage Applications (Oct 17) USD, Retail Sales (MoM) (Aug) CAD, Retail Sales ex Autos (MoM) (Aug) CAD, Consumer Price Index (YoY) (Sep) USD, Consumer Price Index (MoM) (Sep) USD, Consumer Price Index Core s.a (Sep) USD, Consumer Price Index Ex Food & Energy (MoM) (Sep) USD, Consumer Price Index Ex Food & Energy (YoY) (Sep) USD, Consumer Price Index n.s.a (MoM) (Sep) USD, BoC Interest Rate Decision (Oct 22) CAD, BOC Rate Statement CAD, Bank of Canada Monetary Policy Report CAD, EIA Crude Oil Stocks change (Oct 17) USD, BoC Press Conference CAD, MPC Member Weale Speech GBP, BoC Governor Poloz Speech CAD, RBA's Governor Glenn Stevens Speech AUD, Consumer Price Index (YoY) (Q3) NZD, Consumer Price Index (QoQ) (Q3) NZD and Foreign bond investment (Oct 17) JPY.

In other news in the media:
 
Looking to bolster its overseas presence, drug major Lupin is scouting for acquisition opportunities in the US market, especially in inhalers and injectables segments. (BS)
 
Natco Pharma's marketing partner in US, Breckenridge Pharmaceutical Inc, has received a tentative approval from the US health regulator for its generic Armodafinil tablets used for improving wakefulness in adults.
 
Stone India has made a break through with a Chinese Freight Car builder and received the first ever export order for their proprietary brake system. (BS)
 
Tata Motors owned Jaguar Land Rover (JLR) has opened its first overseas manufacturing facility in China. The Range Rover Evoque will be the first model to be built under the first Chinese-British automotive joint venture with Chery Automobile Company Ltd. Inaugural sales are due to begin in early 2015. (BL)
 
Deepak Fertilisers has failed to acquire the targeted 26 per cent additional stake in UB group-run Mangalore Chemicals and Fertilisers (MCF). (BL)
 
The eight iron ore and manganese mines that have got express orders from the state government to run operations have been asked to obtain all statutory clearances and execute lease deeds with the government latest by November 15. The leases include four held by Tata Steel and three mines held by Steel Authority of India Ltd (SAIL). (BS)
 
SpiceJet has announced its "Diwali Dhamaka" sale, with one way fares starting as low as Rs 899 (all-inclusive). (BS)
 
Steel Authority of India Ltd (SAIL) has set a December deadline for lighting up the blast furnace of the 2.7 million tonnes (mt) IISCO Steel Plant in West Bengal. The Rs170bn plant, which is replacing the 100-year-old steel making facility, is already delayed by three years due to land-related problems. The facility is expected to be commissioned in January. (BL)
 
Granules India Ltd will be setting up a 100 per cent wholly-owned subsidiary in the United States of America. (BL)
 
Hindustan Motors Ltd has agreed to settle claims of the West Bengal Government worth Rs1.94bn for additional profit on the sale of 314 acres of surplus land in its plant in the State in 2006-07. (BL)
 
State Bank of India is determined to carry on retail banking operations in the UK despite a recent crackdown by the Bank of England on the operations of foreign-owned banks in the country. (ET)
 
The government's new rule that 85% of the space in a cigarette pack should contain warnings like 'smoking kills' and gory pictures depicting serious health hazards might prove to be a hurdle to ITC's growth. (ET)
 
Odisha Mining Corporation (OMC) has earmarked 417,000 tonne iron ore fines and 365,000 tonne iron ore lumps of different grades to be sold on the auction scheduled for October 27, according tender document of the mining firm. (BS)
 
Agri commodities prices are likely to decline due to a massive diesel price cut resulting into steep decline in transportation cost. (BL)
 
Finance Minister Arun Jaitley said the revised Constitution Amendment Bill to roll out GST would be introduced in the forthcoming Winter Session of Parliament.
 
TEN MOST ACTIVE FUTURES
Symbol

No.of Cont Traded

Last price

Open Interest

% chg in Op.Int

PNB

28,554

929.35

4594000

2.96

SBIN

26,981

2,594.65

4516250

4.35

HDFCBANK

24,245

900.25

33163000

-2.58

ICICIBANK

22,428

1,577.75

8643250

-1.01

RELIANCE

20,957

933.25

33674500

-0.53

JINDALSTEL

18,704

146.00

20831000

-6.51

INFY

18,671

3,783.50

3962500

5.00

DLF

18,251

121.50

21578000

-3.76

TATASTEEL

16,749

457.45

19585000

1.11

TCS

12,849

2,436.20

4906125

0.71

TEN MOST ACTIVE OPTIONS

Option Type

Strike price

No.of Cont Traded

Open Interest

% Chg in Op.In

SBIN

CE

2,600

9,733

576875

-0.73

INFY

CE

3,900

7,270

372125

-21.92

INFY

CE

3,800

6,436

362250

18.43

SBIN

PE

2,500

5,932

222625

10.35

RELIANCE

CE

940

5,787

1398000

22.55

SBIN

CE

2,650

5,381

205125

30.45

INFY

PE

3,700

5,268

465750

-7.01

TCS

CE

2,500

5,041

535125

-0.58

ICICIBANK

CE

1,600

4,785

436250

15.56

INFY

PE

3,800

4,769

267500

-16.01

SUPPORT & RESISTANCE LEVEL

Company Name

S3

S2

S1

Close

R1

R2

R3

ACC

1,427

1,431

1,436

1,445

1,453

1,458

1,462

AMBUJACEM

211

212

212

213

214

214

215

ASIANPAINT

634

637

639

644

649

651

654

AXISBANK

S3

420

421

424

426

427

428

BAJAJ-AUTO

2,387

2,393

2,400

2,413

2,426

2,433

2,439

BANKBARODA

874

876

879

883

887

890

892

BHARTIARTL

401

403

405

409

413

415

416

BHEL

231

233

235

239

243

245

247

BPCL

677

680

682

687

692

694

697

CAIRN

274

276

277

279

282

283

284

CIPLA

601

603

605

609

613

615

617

COALINDIA

348

350

352

355

358

360

362

DLF

115

116

118

121

124

125

127

DRREDDY

2,939

2,946

2,954

2,969

2,984

2,992

2,999

GAIL

464

468

472

481

489

494

498

GRASIM

3,311

3,318

3,325

3,340

3,355

3,362

3,369

HCLTECH

1,489

1,493

1,498

1,508

1,517

1,522

1,527

HDFC

1,009

1,012

1,015

1,022

1,029

1,032

1,035

HDFCBANK

885

888

891

897

903

906

909

HEROMOTOCO

2,942

2,955

2,970

2,997

3,024

3,038

3,052

HINDALCO

146

146

147

148

149

150

151

HINDUNILVR

737

741

745

752

760

764

768

ICICIBANK

1,552

1,560

1,567

1,583

1,598

1,606

1,613

IDFC

142

142

143

145

147

148

149

INDUSINDBK

666

669

671

677

683

685

688

INFY

3,683

3,705

3,729

3,775

3,821

3,845

3,867

ITC

347

348

349

350

352

353

353

JINDALSTEL

139

141

142

145

149

150

152

JPASSOCIAT

30

30

30

30

30

31

31

KOTAKBANK

1,004

1,007

1,009

1,015

1,021

1,024

1,026

LT

1,499

1,503

1,507

1,515

1,523

1,527

1,531

LUPIN

1,333

1,340

1,349

1,365

1,381

1,390

1,397

M&M

1,204

1,210

1,216

1,229

1,241

1,248

1,254

MARUTI

3,028

3,040

3,052

3,077

3,102

3,114

3,126

NMDC

160

161

161

163

164

165

166

NTPC

145

146

146

147

148

149

149

ONGC

398

400

403

408

413

416

418

PNB

890

899

909

928

947

957

966

POWERGRID

136

137

138

140

141

142

143

RANBAXY

586

587

589

592

595

597

598

RELIANCE

921

923

925

928

931

933

935

SBIN

2,561

2,567

2,573

2,586

2,598

2,604

2,610

SSLT

240

242

244

248

251

253

255

SUNPHARMA

786

788

791

796

801

804

806

TATAMOTORS

496

498

499

503

506

508

510

TATAPOWER

87

87

87

88

88

88

88

TATASTEEL

450

452

454

457

460

462

464

TCS

2,416

2,421

2,426

2,435

2,444

2,449

2,454

ULTRACEMCO

2,348

2,361

2,374

2,400

2,426

2,440

2,452

WIPRO

561

564

567

573

578

581

584









 

 
 
 
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