Daily Market Strategy - Strength and weakness! Another thud at start!

The outlook is a weak start. Sentiment could improve as Asian markets are staging a recovery.

Mar 11, 2015 03:03 IST India Infoline News Service

Dwell not upon thy weariness, thy strength shall be according to the measure of thy desire. - Arab Proverb
 
The market has been in struggle zone after it surged to new highs intra-day last week after a surprise rate hike. The Nifty and Bank Nifty are finding it difficult to even close in the green. The strengthening of the dollar has been taking its toll on most emerging markets too. Commodities are going for a toss and a surging US dollar has pulled oil prices on Tuesday to their lowest settlement for the month of March.
 
The outlook is a weak start. Sentiment could improve as Asian markets are staging a recovery. Nifty support is at 8640 levels. Global cues are subdued again. Dow crashed 1.85% while S&P slumped 1.7%. Nasdaq was down 1.67%. Asian market are mixed again with Nikkei higher and Hong Kong's Hang Seng lower. China's Shanghai index is also higher.
 
The Lok Sabha passed the land acquisition Bill on Tuesday but things could get difficult in the Rajya Sabha. The Opposition has stalled passage of the mines & minerals Bill. Housing companies and infra firms will be in focus. Reforms could take a back seat as Opposition is set to stall the government’s plan to call for a joint sitting.
 
The country’s current account deficit (CAD) narrowed to USD 8.2bn or 1.6 percent of GDP in Q3 of 2014-15 from USD 10.1 billion or 2 percent of GDP in Q2. The reduction in the CAD in Q3 2014-15 was primarily on account of net exports of services which picked up in q-o-q terms on the back of an improvement in net earnings.

Maruti Suzuki could shed weight as it is recalling over 33,000 units of the Alto to fix a problem with the right-hand door.
 
In a first, bid levels for the spectrum auction fell by around Rs 2,000 crore to close Tuesday at Rs 92,000 crore, as steep prices in the key 900 Mhz band forced operators to reduce the amount of airwaves they were vying for, thus leaving some spectrum unsold and reducing revenue assured for the government, says a report.

Cairn Energy said it is engaged with the Indian Government to resolve a tax dispute that has stalled sale of its 10 per cent stake in Cairn India Ltd and led to 40 per cent job cuts.
 
According to SIAM data, the domestic passenger car sales was up by 6.85% to 1,71,727 units in February this year. The motorcycle sales in last month were down by 8.22% to 7,74,122 units from 8,43,436 units in the same month 
previous year, SIAM data says.
 
L&T’s Metallurgical and Material Handling (L&T-MMH) business has secured orders worth Rs 1242 crores across various business segments during Q4 of FY 14-15. 
 
Bharti Airtel stock hits 10% upper circuit at Rs. 369. Bharti Airtel is planning to double its 4G network by next fiscal, according to a media report. 
 
Shares of Persistent Systems was trading lower by 9% at Rs. 848 after company turned ex-bonus.The company announced a 1:1 bonus recently.
 
Adani Enterprises surged to a high of Rs. 680 on hopes of striking more deals for supply of coal to overseas mines. 
 
ITC stock ended flat at Rs. 338 on reports that company is scouting for more acquisitions to scale up its non-cigarette fast-moving consumer goods (FMCG) business.  
 
TCS has extended its south-bound journey for the fourth straight trading session today. The stock was down 0.01% at Rs. 2642.
 
Jubilant Industries has jumped 20% its maximum daily upper limit at Rs. 81 on the back of heavy volume at the NSE counter.
 
KNR Constructions Ltd stock was up 2% at Rs. 450 after company has received its First International Orders worth of Rs. 515.33 Crores.
 
Shares of HSIL was flat at Rs 412 after the company announced the QIP issue price at Rs. 412.53 per equity share. 
 
Ashoka Buildcon is reportedly panning to buy out a controlling stake in Jaora Nayagaon Toll Project in Madhya Pradesh, according to a television report. The stock ended 3% lower at Rs174.
 
Monnet Ispat and Energy stock rallied 9% at Rs. 71.Report said that the company is planning to sell some stake in its power generation subsidiary to fuel expansion plans and future growth, company's Chairman and Managing Director Sandeep Jajodia said.
 
Events: ECB President Draghi's Speech
 
Trends in FII flows: The FIIs were net sellers of Rs7.48bn in the cash segment on Tuesday. The domestic institutional investors (DIIs) were net buyers of Rs2.9nn, as per the provisional figures released by the NSE.
 
Global Data:  Home Loans (Jan) AUD, Investment Lending for Homes (Jan) AUD, M2 Money Supply (YoY) (Feb) CNY, New Loans (Feb) CNY, Industrial Production (YoY) (Feb) CNY, Retail Sales (YoY) (Feb) CNY, Urban investment (YTD) (YoY) (Feb) CNY, Nonfarm Payrolls (QoQ) (Q4) EUR, Current Account (Jan) EUR, ECB President Draghi's Speech EUR, Industrial Production (YoY) (Jan) GBP, Industrial Production (MoM) (Jan) GBP, Manufacturing Production (MoM) (Jan) GBP, Manufacturing Production (YoY) (Jan) GBP, Consumer Price Index (YoY) (Feb) EUR, Consumer Price Index (MoM) (Feb) EUR, MBA Mortgage Applications (Mar 6) USD, EIA Crude Oil Stocks change (Mar 6) USD, MPC Member Weale Speech GBP, NIESR GDP Estimate (3M) (Feb) GBP, 10-Year Note Auction USD, Monthly Budget Statement (Feb) USD, RBNZ Interest Rate Decision NZD, Monetary Policy Statement NZD, Food Price Index (MoM) (Feb) NZD, BSI Large Manufacturing (QoQ) (Q1) JPY, Foreign bond investment (Mar 6) JPY, Foreign investment in Japan stocks (Mar 6) JPY, Tertiary Industry Index (MoM) (Jan) JPY.
 
Other news in the media:
 
JSW Steel plans to focus on acquisitions as well as expansion through the brownfield and greenfield routes in order to raise its steel-making capacity to 40mn tonnes per annum by 2025. (BL)
 
Asian Paints is set to sign up with the Andhra Pradesh Government for setting up a greenfield plant near Vizag. The company is likely to invest Rs.17.50-18bn on the project in a phased manner. (BL)
 
Dr Reddy's Custom Pharmaceutical Services division has expanded its existing custom service facilities with a new formulation development laboratory in Hyderabad. (BS)
 
ITC is scouting for more acquisitions to scale up its non-cigarette fast-moving consumer goods business as it expects cumulative brand turnover from this segment to increase to Rs.150bn in the next two-three years. (ET)
 
L&T unit wins orders worth Rs.12.4bn. (BL)
 
Cairn Energy said it is engaged with the Indian Government to resolve a tax dispute that has stalled sale of its 10% stake in Cairn India Ltd and led to 40% job cuts. (BL)
 
Telenor group and Tata group are likely to merge their wireless telephony operations in India with Telenor running the day-to-day operations of the merged entity. As per the valuation of both companies, the Tata group will end up with a minority stake in the merged entity. (BS)
 
Tata Power commissioned 63 MW sized first unit of its 126 MW Dagachhu Hydro Power Corporation in Bhutan. (BS)
 
Cholamandalam Investment and Finance Company has roped in Cognizant Technology Solutions to digitize its vehicle finance business operations for cost efficiency and speeding up loan delivery. (BL)
 
The Lok Sabha cleared the contentious land acquisition Bill, along with nine amendments proposed by the government. (BS)
 
Government is likely to allocate 17 food parks to different companies by the end of this month, which will attract an estimated investment of about Rs.21bn. (ET)
 
India's natural rubber production in February fell 13.5% from a year earlier to 50,000 tonnes, while consumption rose nearly 4% to 82,500 tonnes. (BL)
 
Government has launched long- term measures including those to target integration of economically important genes for crop yield improvement. (ET)
 
India's current account deficit rose to $8.2bn for third quarter ended December 2014 from $4.2bn for October-December 2013. (BS)
Symbol

No.of Cont Traded

Last price

Open Interest

% chg in Op.Int

SBIN

29,960

288.75

82,641,250

-1.11

AXISBANK

29,402

588.70

29,041,500

-1.00

BHARTIARTL

26,908

370.55

12,221,500

5.52

AUROPHARMA

23,394

1,134.20

12,074,750

-1.52

JINDALSTEL

20,739

190.65

26,563,000

-0.11

RELIANCE

18,311

865.20

36,401,250

1.09

YESBANK

18,025

833.20

10,646,500

3.65

LT

17,075

1,763.35

7,641,000

1.46

HDFCBANK

16,972

1,061.15

46,640,000

-0.86

WOCKPHARMA

16,701

1,793.60

2,601,000

13.83

TEN MOST ACTIVE OPTIONS

Option Type

Strike price

No.of Cont Traded

Open Interest

% Chg in Op.In

SBIN

CE

300

4,774

6,680,000

4.25

RELIANCE

CE

900

4,454

1,156,750

5.02

RELIANCE

CE

880

4,113

544,500

35.03

RELIANCE

CE

920

3,441

615,000

3.58

SBIN

CE

310

3,432

5,333,750

7.78

AXISBANK

CE

600

3,336

1,208,500

13.90

RCOM

CE

70

3,332

3,710,000

9.38

BHARTIARTL

CE

380

3,260

364,500

22.11

AUROPHARMA

CE

1,150

3,117

215,500

-6.30

TCS

CE

2,700

2,883

110,625

9.80

SUPPORT & RESISTANCE LEVEL

Company Name

S3

S2

S1

Close

R1

R2

R3

Sensex Index

28,469

28,528

28,590

28,710

28,830

28,892

28,951

Nifty Index

8,646

8,662

8,679

8,712

8,745

8,762

8,778

ABB Ltd

1,294

1,303

1,312

1,329

1,347

1,356

1,365

ACC

1,620

1,627

1,635

1,649

1,664

1,671

1,678

Ambuja Cements

255

256

257

260

262

263

264

Bajaj Holdings

1,354

1,360

1,367

1,379

1,392

1,399

1,405

BHEL

254

255

257

259

262

263

264

Bharti Airte

343

349

355

368

381

387

393

Cipla

712

716

721

730

739

743

747

Dabur India

257

259

261

266

270

273

275

GAIL India

378

379

381

384

387

388

389

Grasim Ind.

3,649

3,660

3,672

3,694

3,717

3,729

3,740

HCL Tech

2,018

2,024

2,031

2,044

2,057

2,064

2,070

HDFC Bank

1,040

1,043

1,046

1,053

1,059

1,063

1,066

Hero Honda

2,603

2,608

2,612

2,621

2,629

2,634

2,638

Hindalco

133

134

136

138

140

142

143

Hindustan Unilever

939

943

948

957

966

970

974

ICICI Bank

329

330

331

334

336

337

338

Infosys Tech

2,171

2,178

2,186

2,200

2,215

2,222

2,229

ITC Ltd

334

335

336

339

341

342

343

L&T

1,710

1,720

1,731

1,753

1,775

1,786

1,796

MTNL

25

25

26

26

26

27

27

M&M

1,207

1,212

1,217

1,227

1,237

1,243

1,248

Maruti Suzuki

3,617

3,625

3,633

3,648

3,664

3,672

3,680

Mahindra Satyam

2,790

2,803

2,815

2,840

2,865

2,878

2,890

National Alumin

48

49

49

49

49

50

50

ONGC

309

310

312

315

318

319

321

Oriental Bank

233

234

235

237

238

239

240

PNB

162

162

163

164

164

165

165

Ranbaxy Labs

786

790

795

804

814

819

823

Reliance Capital

435

438

442

448

454

457

460

Reliance Comm

61

62

63

64

66

67

68

Reliance Energy

446

449

452

458

464

467

469

Reliance Inds

846

849

853

859

866

869

872

R Power

57

57

57

58

58

59

59

Siemens India

1,348

1,353

1,357

1,367

1,376

1,381

1,386

SBI

282

284

285

288

290

292

293

TCS

2,590

2,603

2,617

2,643

2,669

2,682

2,695

Tata Motors

551

553

556

560

565

567

569

Tata Power

79

80

80

81

82

83

83

Tata Steel

327

328

329

332

335

336

338

Tata comm

409

412

416

422

429

433

436

Wipro

642

646

649

655

661

664

668

Wire And Wireless

37

37

38

39

40

40

40

Zee Entertainment

335

336

338

341

345

347

348


 
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