Sunday, April 20, 2014

THE WEEK AHEAD

Expiry of near-month F&O contracts may trigger volatility
The next batch of Q4 and year ended 31 March 2014 (FY 2014) results will dictate near term trend on the bourses. The market may remain volatile next week as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The near month April 2014 F&O contracts expire on Wednesday, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
Macroeconomic data, trend in investment by foreign institutional investors, trend in global markets, trend in other global emerging markets, the movement of rupee against the dollar and crude oil price movement hold key.
Shares of Reliance Industries (RIL) will on Monday, 21 April 2014, react to the company's Q4 March 2014 results. RIL unveils its Q4 results on Friday, 18 April 2014, the day when the stock market is closed on account of Good Friday.
A number of prominent companies are scheduled to announce their Q4 March 2014 and/or year ended 31 March 2014 (FY 2014) results next week. HDFC Bank announces its audited financial results for the quarter and year ending 31 March 2014 on Tuesday, 22 April 2014. Cairn India and UltraTech Cement are scheduled to announce audited financial results for FY 2014 on Wednesday, 23 April 2014. ACC and Ambuja Cements are set to announce their Q1 March 2014 results on Thursday, 24 April 2014. Maruti Suzuki India, ICICI Bank, AXIS Bank and IDFC are set to announce their financial results on Friday, 25 April 2014.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets over the past few years.

Saturday, April 19, 2014

THE WEEK THAT WAS

Market ends flat in truncated trading week
Key benchmark indices ended almost unchanged in a truncated trading week ended Thursday, 17 April 2014. The barometer index, the S&P BSE Sensex logged marginal declines while the 50-unit CNX Nifty settled a tad higher. The market declined in two out of three trading sessions in the week just gone by.
In the week ended Thursday, 17 April 2014, the 30-share S&P BSE Sensex fell 0.12 points to 22,628.84. The 50-unit CNX Nifty rose 3.10 points or 0.04% to 6,779.40.
The S&P BSE Mid-Cap index rose 0.83 points or 0.01% to 7,339.29 and the S&P BSE Small-Cap index gained 0.83 points or 0.01% to 7,524.01. Both these indices outperformed the Sensex.
The stock market remained closed on Monday, 14 April 2014, on account of Dr. Baba Saheb Ambedkar Jayanti.
Increase in global crude oil prices and weak domestic macroeconomic data weighed on Indian stocks on Tuesday, 15 April 2014. The S&P BSE Sensex lost 144.03 points or 0.64% to settle at 22,484.93, its lowest closing level since 7 April 2014.
Key benchmark indices edged lower after private weather forecaster Skymet on Tuesday, 15 April 2014, said it expects the June-September monsoon to be below normal this year. The forecast of below-normal rains triggered worries that food price inflation will edge up. Increase in global crude oil prices also hit sentiment on the domestic bourses adversely. The S&P BSE Sensex shed 207.70 points or 0.92% to settle at 22,277.23, its lowest closing level since 27 March 2014.
Key benchmark indices rallied on Thursday, 17 April 2014 after government bond prices surged after the Reserve Bank of India (RBI) on Thursday, 17 April 2014, fully sold the Rs 20000-crore worth of debt on offer, accomplishing the country's biggest-ever auction. The S&P BSE Sensex was up 351.61 points or 1.58% to 22,628.84, its highest closing level since 11 April 2014.
The stock market remains closed tomorrow, 18 April 2014, on account of Good Friday.
Among the 30-share Sensex pack, 15 stocks gained and rest of them declined in the week ended Thursday, 17 April 2014.
HDFC (down 3.99%), Tata Power Company (down 2.95%) and NTPC (down 1.2%) edged lower from the Sensex pack.
Bharti Airtel (up 0.99%), ONGC (up 0.65%) and GAIL (India) (up 0.59%) edged higher from the Sensex pack.
Index heavyweight and cigarette maker ITC gained 2.71% to Rs 353.20
Index heavyweight Reliance Industries (RIL) rose 0.61% to Rs 958.75. RIL unveils Q4 results on Friday, 18 April 2014.
RIL before market hours on Tuesday, 15 April 2014, said it has commissioned its new polyester filament yarn (PFY) facility at Silvassa. The entire production from this facility has been successfully placed in the domestic and international markets, RIL said. With the commissioning of this ultra-modern polyester filament yarn facility, RIL's total PFY capacity, including the Malaysian facilities, is now in excess of 1.5 MMTPA, RIL said. This expansion further strengthens RIL's position as the world's largest producer of polyester fibre and yarn. The new PFY plant at Silvassa is the most automated and one of the most environment-friendly plants globally. It is co-located with RIL's existing texturizing facility at Silvassa, eliminating the packaging and logistics costs. This coupled with integration with PTA will make the Silvassa facility amongst the lowest cost polyester filament yarn producing sites globally, RIL said. The commissioning of this facility marks the beginning of the mega petrochemical expansion of RIL, the company said.
Metal stocks were mostly lower. Sesa Sterlite declined 1.68%. Hindalco Industries rose 0.56%.
Tata Steel fell 0.3% to Rs 418.80. Tata Steel after market hours on Tuesday, 15 April 2014 said it completed the year ended 31 March 2014 (FY 2014) with an overall increase in production and sales volumes. Sales volume jumped 14% to 85.16 lakh tonnes in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Sales volume rose 6% to 24.07 lakh tonnes in Q4 March 2014 over Q4 March 2013.
Capital goods pivotals edged lower. L&T (down 2%) and Bharat Heavy Electricals (Bhel) (down 2.16%) declined.
Pharma stocks declined. Cipla fell 0.36%. Sun Pharmaceutical Industries shed 0.54%.
Dr. Reddy's Laboratories slipped 0.55%. The company during market hours on Wednesday, 16 April 2014, said that it has launched Eszopiclone Tablets (C-IV) 1 mg, 2 mg and 3 mg, a therapeutic equivalent generic version of LUNESTA (eszopiclone) tablets C-IV in the US market on 15 April 2014 following the approval of the United States Food & Drug Administration (USFDA). LUNESTA (eszopiclone) tablets C-IV brand and genric combined had US sales of approximately $887 million for twelve months ended 31 January 2014 according to IMS Health data.
Dr. Reddy's Eszopiclone Tablets (C-IV) 1 mg is available in bottle counts of 30. Eszopiclone Tablets (C-IV) 2 mg and 3 mg are available in bottle counts of 100. .
Auto stocks edged higher. Maruti Suzuki India (up 0.86%), Bajaj Auto (up 0.45%) and Hero MotoCorp (up 2.12%) gained. Mahindra & Mahindra (M&M) shed 0.54%.
Tata Motors rose 1.27% to Rs 428.65. Tata Motors Group's global wholesales including Jaguar Land Rover declined 17.89% to 95,668 units in March 2014 over March 2013. Global wholesales of Jaguar Land Rover rose 1.47% to 43,311 units in March 2014 over March 2013.
Tata Group's global wholesales including Jaguar Land Rover declined 15.59% to 10.09 lakh units in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Global wholesales of Jaguar Land Rover rose 15.53% to 4.29 lakh units in FY 2014 over FY 2013.
Bank stocks were mixed. Among private sector banks, Axis Bank (down 2.05%) and HDFC Bank (down 2.61%) declined. ICICI Bank gained 2.14% to Rs 1,262 after hitting a 52-week high of Rs 1,273 in intraday trade on Thursday, 17 April 2014.
State Bank of India (SBI) advanced 1.17% to Rs 2,017.80. The state-run bank after market hours on Friday, 11 April 2014, said that it has priced on 10 April 2014 and will issue $1.25 billion unsecured fixed rate notes in two tranches of $750 million having a maturity of 5 years at a coupon of 3.622% payable semi-annually and $500 million having a maturity of 10 years at a coupon of 4.875% payable semi-annually, pursuant to a standalone issue under Rule 144A/Regulation S of the US Securities Act of 1933. The notes will be issued through the London branch of SBI and shall be listed on Singapore Stock Exchange Securities Trading, SBI said.
IT stocks gained. Wipro rose 3.09% to Rs 585.55. The company declares its Q4 results on Thursday, 17 April 2014.
TCS gained 2.48% to Rs 2,217.45. TCS' consolidated net profit rose 2.3% to Rs 5297 crore on 1.2% growth in revenue to Rs 21551 crore in Q4 March 2014 over Q3 December 2013. The results are as per International Financial Reporting Standards. Net profit jumped 37.5% to Rs 19117 crore on 29.9% growth in revenue to Rs 81809 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). The result was announced after market hours on Wednesday, 16 April 2014.
TCS said that there was holistic growth across markets and industries during the financial year. Europe led growth in major markets, while UK and North America continue to grow in line with the company average, the company said. All major industry verticals grew in double digits led by Retail, Manufacturing, Life Sciences & Healthcare and BFSI during FY 2014, the company said in a statement.
TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace led by Infrastructure Services, Assurance Services, Global Consulting and Enterprise Solutions, the company said in a statement.
TCS' board of directors at its meeting held on Wednesday, 16 April 2014, recommended a final dividend of Rs 20 per share for FY 2014.
Infosys dropped 1.42% to Rs 3,189.90. Infosys before trading hours on Tuesday, 15 April 2014, said its consolidated net profit rose 4.1% to Rs 2992 crore on 1.2% decline in revenue to Rs 12875 crore in Q4 March 2014 over Q3 December 2013. Infosys' non-operational income jumped 16.4% to Rs 851 crore in Q4 March 2014 over Q3 December 2013. The results are as per International Financial Reporting Standards.
Infosys has forecast revenue growth of 7% to 9% in dollar terms for the year ending 31 March 2015 (FY 2015). The company has forecast revenue growth of 5.6% to 7.6% in rupee terms for FY 2015. The guidance in rupee terms is based on rupee dollar conversion rate of 60.
Infosys and its subsidiaries added 50 clients in Q4 March 2014 and 238 clients in FY 2014. There was gross addition of 10,997 employees during the quarter and 39,985 during the year by Infosys and its subsidiaries.
On the macro front, the rate of inflation based on the wholesale price index (WPI) accelerated to 5.7% in March 2014, from 4.68% in February 2014, data released by the government on Tuesday, 15 April 2014, showed. The government revised upwards WPI inflation for January 2014 to 5.17%, from 5.05% reported on 14 February 2014. Core inflation or non-food manufacturing inflation accelerated to a 12-month high of 3.5% in March 2014.
India's index of industrial production (IIP) dipped 1.9% in February 2014, snapping 0.8% growth recorded in the previous month. The data was announced after market hours on Friday, 11 April 2014.
Global credit rating agency Standard & Poor's (S&P) said on Tuesday, 15 April 2014, the direction and pace of policy reforms in India, more than which political party takes control after elections, will have a bearing on the sovereign rating.
Meanwhile, S&P on Thursday, 17 April 2014, said it may upgrade India's rating outlook if the government that is elected next month address some of the country's fiscal and economic challenges through steps such as passing a goods and services tax.
Global credit rating agency Fitch Ratings after trading hours on Friday, 11 April 2014, affirmed India's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BBB-'.
Private weather forecaster Skymet on Tuesday, 15 April 2014, said it expects the June-September monsoon to be below normal this year. It has forecast the monsoon at 94% (error margin of +/-4%) of the long period average (LPA) of 896 mm for the four-month period from June to September 2014.
The rate on inflation based all India general consumer price index (CPI) combined for urban and rural India accelerated to 8.31% (provisional) in March 2014, from 8.03% (final) in February 2014, led by increase in food prices, data released by the government after trading hours on Tuesday, 15 April 2014, showed. Core CPI inflation which excludes food and fuel prices eased to 7.82% in March 2014, from 7.84% in February 2014.
CPI inflation eased to 9.5% for the year ended 31 March 2014 (FY 2014), from 10.2% for the year ended 31 March 2013 (FY 2013).

Thursday, April 17, 2014

NIFTY VIEW

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R46766BULL68216589
R36728UP BREAKOUT67746636
R26714UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R16705SELL67846707
PIVOT6696 LAST DAYSTRONG BEAR LOW VOLATALITY
S16646BUYOPEN6727
S26637DOWN CAUTIONHIGH6749.0
S36623DOWN BREAK OUTLOW6665.0
S46585BEARCLOSE6675.3
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.26%
R26082LONGNIFTY WEEKLY VOLATALITY2.31%
R15976SHORT EXITNIFTY WEEKLY HIGH6819.0
S15765LONG EXITNIFTY WEEKLY LOW6665.0
S25659SHORTNIFTY DAY MEAN6742

BANK NIFTY VIEW

BANKNIFTY INTRADAY LEVEL BANKNIFTY PROBABLE HIGHBANKNIFTY PROBABLE LOW
R412789BULL 1300012322
R312692UP BREAKOUT 1283112491
R212657UP CAUTION LEVEL FOR LONGLEVEL FOR SHORT
R112634SELL 1283112610
PIVOT12602  LAST DAYWEAK BEAR
S112492BUY OPEN12557
S212469DOWN CAUTION HIGH12727.0
S312434DOWN BREAK OUT LOW12515.0
S412338BEAR CLOSE12563.15

BANKNIFTY


The Banking Sector Index

 BANKNIFTY DAILY VOLATALITY1.69%
 BANKNIFTY WEEKLY VOLATALITY4.32%
 BANKNIFTY WEEKLY HIGH13056.0
 BANKNIFTY WEEKLY LOW12515.0
 BANKNIFTY DAY MEAN12785.5

OPEN INTEREST

Nifty opened flat and stayed in a narrow range till noon, but saw huge selling from thereon to see the index below 6700. Nifty ultimately closed near the lows at 6675.30, huge loss of 57.80 points. The broader market was very weak, with just 474 advances to 1023 declines. Range for the time being at 6600-6800. 

  • Call option 6600-6900 added 20.77 lacs huge amount of OI with profit booking seen at 7000 and above strike prices.
  • Put option 6600-6500 added 1.73 lacs huge amount of OI with short covering seen at 6700 and above strike prices.
  • Nifty Open Interest is at 1,57,25,300 up by 3,70,150, with decrease in price, most probably huge short build-up.
  • Bank Nifty Open Interest is at 14,07,375 down by 14,100, with small decrease in price, most probably long liquidation.
  • FII’s bought huge 2.78 lacs Futures, mostly long build-up, as their net OI increased by 27771 contracts (includes 64920 longs to 59361 shorts for the day) and the average price per contract comes to around 6659.25.
  • FII’s future open contract as on date is 383768.
  • PCR Open Interest (Volume) has dipped down to 1.126.
  • Initial and best support now at 6600, with huge OI of 52.58 lacs and below that at 6500 with huge OI of 44.63 lacs.
  • Best resistance is at 6800 with OI of 52.96 lacs and above that at 6900 with OI of 43.88 lacs.
  • Day Range as per Option Table is 6637 - 6743 and as per VIX is 6566 - 6784 with 6696 as the Pivot.


India VIX : 31.16 down by 0.72 points
Call OI : 30906350
Put OI : 34797650
PCR OI : 1.126
SMR : 27.68 (Bearish: Bears broke the psychological level of 6700 and now need a follow-up action and they could be in the driver’s seat for the rest of the series...) 



SOURCES : KANAK ( EMAIL )

Wednesday, April 16, 2014

STOCK ALERT ( 16 / 04 )

Shares of public sector oil marketing companies (PSU OMCs) will be watched as the price of petrol was on Tuesday cut by Rs 0.70 a litre, excluding local levies, the second reduction in rates this month as appreciation of the rupee against the US dollar made oil imports cheaper. The reduction, effective midnight on Tuesday, excludes local sales tax or VAT and the actual cut will be higher, varying from city to city. There was no change in diesel prices.
DCB Bank's net profit rose 14.7% to Rs 39 crore on 15.65% growth in total income to Rs 133 crore in Q4 March 2014 over Q4 March 2013. The result was announced at the fag end of trading hours on Tuesday, 15 April 2014.
The bank's net interest income (NII) rose 21.95% to Rs 100 crore in Q4 March 2014 over Q4 March 2013. Non interest income remained same at Rs 33 crore in Q4 March 2014 as in corresponding previous quarter. Operating profit rose 16.27% to Rs 50 crore in Q4 March 2014 over Q4 March 2013.
Net interest margin (NIM) for Q4 March 2014 improved to 3.59%, from 3.52% in Q4 March 2013 and 3.55% in Q3 December 2013.
DCB Bank's deposits grew 23% year-on-year (YoY) to Rs 10325 crore as on 31 March 2014. Net advances grew 24% YoY at Rs 8140 crore as on 31 March 2014.
The bank's Capital Adequacy Ratio (CAR) stood at 13.71% under Basel III as on 31 March 2014 with Tier I at 12.86% and Tier II at 0.85% as per Basel III norms.
DCB Bank's provisions rose 22.22% to Rs 11 crore in Q4 March 2014 over Q4 March 2013. Provision coverage ratio stood at 80.54% as on 31 March 2014 as against 85.71% as on 31 March 2013.
The bank's gross non-performing assets (NPA) ratio lowered to 1.69% as on 31 March 2014, from 2.77% as on 31 December 2013 and 3.18% as on 31 March 2013. Net NPA ratio stood at 0.91% as on 31 March 2014 as against 0.77% as on 31 December 2013 and 0.75% as on 31 March 2013.
Current & savings account (CASA) ratio improved to 25% as on 31 March 2014, from 24.8% as on 31 December 2013 but declined from 27.16% as on 31 March 2013
DCB Bank's net profit jumped 48.03% to Rs 151 crore on 26.43% growth in total income to Rs 507 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
As on 31 March 2014, the balance sheet was at Rs 12923 crore, as against Rs 11279 crore as on 31 March 2013, a growth of 15%.
NIM for FY 2014 improved to 3.56%, from 3.34% in FY 2013.
Speaking on the company's financial performance, Mr. Murali M. Natrajan, MD & CEO, DCB Bank said, “We have to be watchful, work hard and over manage stress accounts in SME and Corporate portfolio until there is improvement in economic conditions. At the same time, we need to keep expanding our business in a calibrated manner”.
Mr. Nasser Munjee, Chairman, DCB Bank said, “Given the challenges faced by the economy and the banking industry, we are satisfied with our performance. We will continue to be conservative in our approach”.
DCB Bank's board of directors at its meeting held on Tuesday, 15 April 2014, decided to raise an amount not exceeding Rs 300 crore, including issue of shares under QIP, subject to securing appropriate regulatory and other approvals, as applicable.
TCS, Mindtree, IndusInd Bank and Reliance Industrial Infrastructure, among others, will announce their January-March 2014 earnings today, 16 April 2014.
Shares of Jubilant FoodWorks will be watched as the Reserve Bank of India (RBI) notified that Foreign Institutional Investors (FIIs), through primary market and stock exchanges, can now purchase up to 55% (revised from earlier limit of 49%) of the paid up capital of Jubilant FoodWorks under the Portfolio Investment Scheme (PIS). Jubilant FoodWorks Limited has passed resolutions at the board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 49% to 55% for the purchase of its equity shares and convertible debentures by FIIs.
Further, RBI notified that the foreign share holding by FIIs, in Jubilant FoodWorks have gone below the revised threshold limit stipulated under the extant Foreign Direct Investment (FDI) Policy. Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
Gujarat Pipavav Port said that a meeting of the board will be held on 17 April 2014, to consider and approve revision in expansion plan and its commencement.
With reference to a news report in a newspaper, "Sebi sniffs misuse of FII a/c by cos," DLF has clarified that it explicitly denies receiving any such query from Sebi. "We wish to reiterate that at no stage have we ever indulged in the activities mentioned in your news item, or been the subject of any investigation in this regard or received any query from Sebi on this matter," DLF said.
The news reports also suggest that investigation predates to investments made about eight years ago. DLF has been listed for little under seven years, having done its IPO in July 2007, the company said.
DLF said that it follows the highest standards of corporate governance and has always acted strictly in compliance with all applicable laws, rules and regulations.
Texmaco Rail & Engineering at the fag end of trading hours on Tuesday, 15 April 2014 said at its board of directors meeting held on 15 April 2014, the directors deliberated on and approved the formation of a Committee of Directors consisting of three independent directors and one executive director to explore and evaluate various organic and inorganic options available for expanding the product portfolio and businesses of the company, and ensuring the most efficient and cost effective operations of the company.
Upon completion of evaluation of the possible options, the Committee of Directors would submit its recommendations to the Board or to such other committee(s) of the Board, including the Audit Committee, as may be required under applicable laws, Texmaco Rail & Engineering said.
Punj Lloyd at the fag end of trading hours on Tuesday, 15 April 2014 said it has secured a contract worth Rs 3254 crore to design and construct infrastructure facilities of Zliten city (Libya). The project involves design and construction of the storm and sewer network, water network, telecommunication and power distribution network, natural gas networks, street lighting and road works including landscaping of parks and green areas. The said project covers approximately 2,400 hectares, almost the entire area of Zliten, Punj Lloyd said in a statement. The project implementation tenure is four years, the company said.
Titagarh Wagons after market hours on Tuesday, 15 April 2014 announced an open offer to the shareholders of Cimmco. The open offer is for the acquisition of 50.53 lakh equity shares of face value of Rs 10 each at an offer price of Rs 15.50 per share of Cimmco from its public shareholders, constituting 25.08% of the paid-up equity and voting share capital of Cimmco. The consideration for open offer will be Rs 7.83 crore assuming full acceptance of the open offer.
AstraZeneca Pharma India after market hours on Tuesday, 15 April 2014 said that its board of directors at a meeting held on 15 April 2014, deferred consideration of seeking approval of shareholders of the company through Postal Ballot for the delisting of equity shares of the company proposed by the promoters of the company, in the light of discussions with ICICI Securities, the Manager and Walker Chandoik & Co LLP, the Valuer and pending their response to the clarifications and explanations sought from them.
IL&FS Transportation Networks (ITNL) after market hours on Tuesday, 15 April 2014 said that the Committee of board of directors (COD) at its meeting held on 15 April 2014, approved the proposed rights issue schedule. The issue opens on Monday, 28 April 2014 and closes on Monday, 12 May 2014. The COD also approved the Letter of Offer for filing with the stock exchanges and the Securities and Exchange Board of India (Sebi), ITNL said.
It may be recalled that ITNL had on 4 March 2014 said that the COD finalized the rights issue of 5.24 crore shares at a rights issue price of Rs 100 per share at a rights entitlement ratio of 27:100 i.e. 27 shares to be issued on rights basis for every 100 shares held as on record date. The company had fixed 14 March 2014, as the record date for the purpose of rights issue of equity shares.
Sanofi India turns ex-dividend today, 16 April 2014, for final dividend of Rs 35 per share for the year ended 31 December 2013..
Styrolution ABS (India) turns ex-dividend today, 16 April 2014, for dividend of Rs 4 per share for the year ended 31 December 2013.

NIFTY VIEW

NIFTY INTRADAY LEVELNIFTY PROBABLE HIGHNIFTY PROBABLE LOW
R46842BULL68486689
R36796UP BREAKOUT68086729
R26779UP CAUTIONLEVEL FOR LONGLEVEL FOR SHORT
R16768SELL68076744
PIVOT6753 LAST DAYSTRONG BEAR
S16699BUYOPEN6793
S26687DOWN CAUTIONHIGH6813.0
S36671DOWN BREAK OUTLOW6712.0
S46624BEARCLOSE6733.1
NIFTY MONTHLY LEVELNIFTY DAILY VOLATALITY1.5%
R26082LONGNIFTY WEEKLY VOLATALITY2.54%
R15976SHORT EXITNIFTY WEEKLY HIGH6819.0
S15765LONG EXITNIFTY WEEKLY LOW6650.0
S25659SHORTNIFTY DAY MEAN6734.5

BANK NIFTY VIEW

BANKNIFTY INTRADAY LEVEL BANKNIFTY PROBABLE HIGHBANKNIFTY PROBABLE LOW
R412896BULL 1315912236
R312759UP BREAKOUT 1297412421
R212708UP CAUTION LEVEL FOR LONGLEVEL FOR SHORT
R112675SELL 1294112732
PIVOT12653  LAST DAYSTRONG BEAR
S112484BUY OPEN12830
S212452DOWN CAUTION HIGH12832.0
S312402DOWN BREAK OUT LOW12538.0
S412264BEAR CLOSE12579.9

BANKNIFTY


The Banking Sector Index

 BANKNIFTY DAILY VOLATALITY2.34%
 BANKNIFTY WEEKLY VOLATALITY4.95%
 BANKNIFTY WEEKLY HIGH13056.0
 BANKNIFTY WEEKLY LOW12440.0
 BANKNIFTY DAY MEAN12748

OPEN INTEREST

Nifty opened strong just below the psychological level of 6800 but saw huge unwinding to move towards the lows of the day around 6711. The index thereafter stayed in a narrow range and closed at 6733.10, huge loss of 43.20 points. The broader market was also weak, with 627 advances to 878 declines. Range for the time being at 6650-6850. 

  • Call option 6700-7000 added 18.38 lacs huge amount of OI with profit booking seen at 7100 and above strike prices.
  • Put option 6400 added 1.78 lacs huge amount of OI with short covering seen at 6800 and above strike prices.
  • Nifty Open Interest is at 1,53,55,150 down by 7,64,900, with decrease in price, most probably huge long liquidation.
  • Bank Nifty Open Interest is at 14,21,475 down by 71,025, with huge decrease in price, most probably long liquidation.
  • FII’s sold huge 15.35 lacs Futures, mostly long liquidation, as their net OI decreased by 4452 contracts (includes 46359 longs to 77055 shorts for the day) and the average price per contract comes to around 6709.43.
  • FII’s future open contract as on date is 355997.
  • PCR Open Interest (Volume) has dipped down to 1.278.
  • Initial and best support at 6700, with highest OI of 52.43 lacs and below that at 6600 with huge OI of 51.12 lacs.
  • Best resistance is at 6800 with OI of 45.59 lacs and above that at 6900 with OI of 42.15 lacs.
  • Day Range as per Option Table is 6696 - 6799 and as per VIX is 6621 - 6845 with 6753 as the Pivot.

India VIX : 31.88 up by 2.69 points
Call OI : 29451050
Put OI : 37643900
PCR OI : 1.278
SMR : 24.94 (Neutral: Huge profit booking of the last few days has brought the index near the best support level with the Bears sniffing a chance to nail it down below the psychological level of 6700...) 


SOURCES : KANAK ( EMAIL )

Tuesday, April 15, 2014

STOCK ALERT ( 15 / 04 )

Tata Motors in focus after global wholesales figures
Tata Motors Group's global wholesales including Jaguar Land Rover declined 17.89% to 95,668 units in March 2014 over March 2013. Global wholesales of Jaguar Land Rover rose 1.47% to 43,311 units in March 2014 over March 2013. Tata Motors Group's global wholesales including Jaguar Land Rover declined 15.59% to 10.09 lakh units in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Global wholesales of Jaguar Land Rover rose 15.53% to 4.29 lakh units in FY 2014 over FY 2013.
Infosys announces Q4 results today, 15 April 2014.
Tata Steel said that its total sales rose 6% to 24,07,000 tonnes in Q4 March 2014 over Q4 March 2013. The company's total sales rose 14% to 85,16,000 tonnes in the year ended March 2014 over the year ended March 2013.
On a consolidated basis, CMC's net profit rose 26.78% to Rs 89.43 crore on 11.10% increase in total income from operations to Rs 623.21 in Q4 March 2014 over Q3 December 2013.
Reliance Industries (RIL) commissioned its new polyester filament yarn (PFY) facility at Silvassa. The entire production from this facility has been successfully placed in the domestic and international markets. With the commissioning of this ultra-modern polyester filament yarn Facility, RIL's total PFY capacity, including the Malaysian facilities, is in excess of 1.5 MMTPA. This expansion further strengthens RIL's position as the world's largest producer of polyester fibre and yarn. The new PFY plant at Silvassa is the most automated and one of the most environment-friendly plants globally. It is co-located with RIL's existing texturizing facility at Silvassa eliminating the packaging and logistics costs. This coupled with integration with PTA will make the Silvassa facility amongst the lowest cost Polyester Filament Yarn producing sites globally. The commissioning of this facility marks the beginning of the mega petrochemical expansion of RIL.
Aditya Birla Nuvo before trading hours today, 15 April 2014, said that the company has resumed production at its urea plant at Jagdishpur in Uttar Pradesh with effect from 8 April 2014. The plant was under maintenance shutdown.
Bharti Airtel after market hours on Friday, 11 April 2014 said that the High Court of Judicature at Bombay, on Friday, 11 April 2014, approved the Scheme of the Amalgamation of Airtel Broadband Services (formerly known as Wireless Business Service) a wholly owned subsidiary with the company. The certified copy of this Order is yet to be received, Bharti Airtel said. The amalgamation will be effective upon completion of requisite statutory requirements, it added.
United Spirits (USL) will be watched after Diageo Plc, the world's largest distiller, has launched a second round of open offer to the shareholders of USL. The offer is for acquiring up to 3.77 crore fully paid up equity shares of face value of Rs 10 each, constituting 26% of the total fully diluted voting equity share capital of USL. The tender offer will be at a price of Rs 3,030 per share and the total consideration for the increased stake (assuming take-up in full at the announced price) will be Rs 11448.92 crore. Diageo has launched the tender offer through Relay BV (Relay), a wholly-owned indirect subsidiary of Diageo.
Asian Paints said that Asian Paints (International), Mauritius, (APIL) a wholly-owned subsidiary of the company on 14 April 2014 has signed an agreement with the shareholders of Kadisco Chemical Industry PLC, Ethiopia (Kadisco) to acquire either directly or through its subsidiaries, 51% of the equity share capital of Kadisco. This acquisition is subject to applicable regulatory and other approvals. Kadisco is engaged in the manufacturing and selling of paints, other coatings and adhesives in Ethiopia.
Zee Entertainment Enterprises (Zee) after market hours on Friday, 11 April 2014 said that Zee Turner and Star Den Media Services (Star Den) announced their intention to discontinue the distribution of their channels through the three year old distribution joint venture (JV) Media Pro Enterprises India (MediaPro), pursuant to the change in regulation regarding aggregators. TRAI's Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television System) (ThirdAmendment) Regulation, 2014 dated 10 February 2014, does not allow aggregators to bundle channels of multiple broadcasters in one bouquet. In light of this new development, Star Den and Zee Turner have decided to discontinue the distribution of their respective channels through the 50:50 distribution JV, MediaPro.
Going forward, Zee and Star would set up their independent Affiliate Sales team for their respective channels. The latest tariff order dated 31 March 2014, which permitted the inflation-linked hike of 27.5% in Reference Interconnect Offer rates (in two stages), is likely to provide a positive fillip to the subscription revenues, Zee said in a statement.
Mr. Punit Goenka, MD & CEO, Zee Entertainment Enterprises said, “We had created this joint venture to address various anomalies in the analog market, curb piracy and introduce transparency for the benefit of all stakeholders. I must say that we have been very satisfied with the outcome of the partnership. In the last three years, with DAS getting implemented, India is truly on the path to digitization. First two phases of DAS have already been implemented. Given the new regulation, Uday and I have taken a call to continue the business at an independent level. I wish our JV partners all the very best in their future endeavors.
Mr. Uday Shankar, CEO, Star India said, “MediaPro has been a truly delightful and path breaking partnership. Punit and I created MediaPro with the objective of accelerating digitization, promoting transparency and introducing best practices in distribution. Thanks to the commitment of both parties the JV has delivered exceptionally well on each of these. I am proud to say that MediaPro also led the industry consensus for the most efficient way of moving to a digital domain. This in turn allowed us to offer better content to our viewers. In the light of new regulation, both partners have decided to build independent affiliate sales. I take this opportunity to compliment the entire MediaPro team lead by Arun Kapoor for creating a best-in-class organization that helped pioneer digital transformation of cable”.
State Bank of India (SBI) said after market hours on Friday, 11 April 2014, that it has priced on 10 April 2014 and will issue $1.25 billion unsecured fixed rate notes in two tranches of $750 million having a maturity of 5 years at a coupon of 3.622% payable semi-annually and $500 million having a maturity of 10 years at a coupon of 4.875% payable semi-annually, pursuant to a standalone issue under Rule 144A / Regulation S of the US Securities Act of 1933. The notes will be issued through the London branch of SBI and shall be listed on Singapore Stock Exchange Securities Trading, SBI said.
Sun Pharmaceutical Industries (Sun Pharma) after market hours on Friday, 11 April 2014 announced a mandatory open offer to the equity shareholders of Zenotech Laboratories (Zenotech). The open offer is for acquisition of up to 96.93 lakh fully paid-up equity shares of face value of Rs 10 each of Zenotech, constituting 28.1% of the fully diluted voting share capital of Zenotech as of the tenth working day from the date of closure of the tendering period, at an offer price of Rs 19 per share aggregating to Rs 18.41 crore, subject to the terms and conditions mentioned in the open offer document.
The open offer is part of the scheme of arrangement (Scheme) entered into between Sun Pharma and Ranbaxy Laboratories (Ranbaxy) pursuant to their April 6, 2014 announcement of acquisition of Ranbaxy by Sun Pharma in an all-stock transaction.
As on 31 March 2014, Ranbaxy holds 1.61 crore equity shares, representing 46.79% of the fully diluted equity and voting capital of Zenotech. The primary acquisition and the consequential implementation of the Scheme are subject to customary closing conditions including the approval of the shareholders of Ranbaxy and Sun Pharma, High Court approvals, and other regulatory approvals, the offer document stated.
AstraZeneca Pharma India said it has on Friday, 11 April 2014, received intimation from AstraZeneca Pharmaceuticals AB, Sweden (AZP AB), the promoter of the company that the floor price for delisting of equity shares of AstraZeneca Pharma India has been fixed at Rs 854.10 per share. Public shareholders of AstraZeneca Pharma India are free to tender their shares in the reverse book building process at a price they elect, at or above the floor price, the statement said.
Financial Technologies (India) (FTIL) on Saturday, 12 April 2014, said that the company has received non-binding bids from 9 prospective investors, which includes marquee Indian and global conglomerates for the proposed sale of its 24% equity stake in commodity futures exchange -- the Multi Commodity Exchange of India (MCX). The company said that the Restructuring Committee constituted by the board of directors of the company has completed the process of shortlisting of the parties with whom FTIL's appointed banker JM Financial will take the discussion forward. The Restructuring Committee also noted that every shortlisted bidders has requested for management interaction with MCX and customary due diligence of MCX as a pre-condition.
The Restructuring Committee has decided that it will finalize the bidder(s) by 25 April 2014 and will recommend the same to the board of FTIL, subject to the above mentioned management meeting and customary due diligence request of bidders being completed by MCX. FTIL said that the company is making all efforts with a view to complete the proposed sale of its 24% equity stake in MCX by 25 April 2014 and has now called for a meeting of its board of directors on 25 April 2014 for selecting the final bidder(s).
FTIL will write to the board of MCX seeking their co-operation for management interaction with the shortlisted bidders and the customary due diligence to enable the proposed sale within the defined timelines, FTIL said. FTIL will also write separately to the Forward Markets Commission (FMC) to seek their support and co-operation in the matter and will update them periodically on the progress of customary due diligence and interaction with management of MCX.
FTIL said that the company is confident that with the full support of the FMC and MCX it will be able to select the final investor(s) within the defined timeline of 25 April 2014, FTIL said in a statement.
FTIL currently holds 26% stake in MCX. After the Rs 5600-crore crisis at the National Spot Exchange last year, a former exchange of FTIL group, the FMC has said that FTIL cannot hold more 2% in any commodity bourse in India.
Multi Commodity Exchange of India (MCX) after trading hours on Friday, 11 April 2014, said that foreign institutional investors (FIIs) and Qualified Foreign Investor-Corporate hold a combined 19.86% stake in MCX on 4 April 2014, which is within the cap of 23% for this category. Foreign corporate bodies hold 7.54% stake in MCX as on 4 April 2014, which is within the cap of 26% for this category, MCX said.
Patel Engineering after market hours on Friday, 11 April 2014 said that the meeting of Allotment Committee will be held on Tuesday, 15 April 2014, to consider the letter received from the Patel Corporation LLP holding zero coupon optionally convertible preference shares (OCPS) exercising his option to convert the balance 5,61,957 OCPS allotted on 21 March 2014 into 5,61,957 equity shares of Re 1 each at premium of Rs 56.50 per share as per the terms and conditions of OCPS.
Gujarat Gas Company (Gujarat Gas) after market hours Friday, 11 April 2014 said that its board of directors will meet on 21 April 2014, to consider and approve the proposed consolidation of the company with GSPC Distribution Networks (GDNL), GSPC Gas, Gujarat Gas Financial Services (GFSL) and Gujarat Gas Trading Company (GTCL), viz., the companies involved in city gas distribution business by way of proposed amalgamation. Further the company said its Board had already granted its inprinciple approval to the aforesaid proposal at its meeting held on 24 February 2014.
Indiabulls Securities said that on Friday, 11 April 2014, the company has issued and allotted 1.41 crore equity shares of face value Rs 2 each, upon conversion of equivalent number of warrants.
Balasore Alloys after market hours on Friday, 11 April 2014 said that a meeting of the Committee for preferential issue of warrants of the board of directors will be held on Wednesday, 16 April 2014, for allotment of 66 lakh equity shares of Rs 5 each at price of Rs 16 including premium of Rs 11 per equity shares in lieu of 66 lakh convertible warrants to the promoters on preferential basis, pursuant to the authority given by the shareholders in the Annual General Meeting (AGM) held on 26 September 2012.
Shilpa Medicare after market hours on Friday, 11 April 2014 said that its board of directors at a meeting held on Friday, 11 April 2014, in accordance with Regulations of Chapter VII of the SEBI (ICDR) Regulations, 2009 and section 42 of the Companies Act, 2013 and Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014, and subject to the approval of shareholders, stock exchanges, central government and other regulatory authorities if necessary, to raise funds upto Rs 75 crore by issuing equity shares on preferential basis to FIIs/FCBs/any other investor at the price calculated as per the regulation 76 of Chapter VII of the SEBI (ICDR) Regulations, 2009.
The Board also proposed to increase the Limit for FIIs' holding up to 30% from the existing general limit of 24% as prescribed under the FDI Policy subject to the approval of shareholders and prior intimation to Reserve Bank of India.
In this regard the Board authorized the Managing Director to issue notice to the shareholders of the company as required under the Companies Act and the applicable Regulations of SEBI and Listing Agreement and also to obtain necessary approvals from shareholders and various statutory bodies as required and to do all the needful thereto, Shilpa Medicare said.
Jaiprakash Power Ventures on Saturday, 12 April 2014, said that the company's 400 megawatts (MW) Vishnuprayag hydro power plant, which was shut down due to unprecedented floods of very high intensity in the Alaknanda river on 16 June 2013, has resumed power generation with effect from 12 April 2014.
SEAMEC on Monday, 14 April 2014, said that company's existing contract for the charter hire of its vessel "ALLIANCE" with Sea Horse General Contracting Establishment, UAE, Dubai for working in Offshore Egyptian Mediterranean waters has been extended until 30 April 2014. This vessel is under bareboat charter with SEAMEC, the company said. The company in the meanwhile has also entered into a Charter Period with Technip France, Abu Dhabi for her deployment in Dubai Offshore for a firm period of 75 days. The charter is likely to commence around middle of June 2014, SEAMEC said. The value of Charter with Technip would be around $3.5 million, SEAMEC said.
Rishi Laser on Monday, 14 April 2014, said that the board of directors of the company at its meeting held on 14 April 2014 has decided not to consider preferential issue of shares at present.
Everest Kanto Cylinder on Monday, 14 April 2014, said that workers have called off their illegal strike at the Gandhidham plant and that the operations at the plant have fully resumed.
MindTree on Monday, 14 April 2014, said that the company's board of directors will consider a proposal for declaration of bonus shares on 16 April 2014 along with the audited financial results for the quarter and year ended 31 March 2014.
Roto Pumps on Saturday, 12 April 2014, said that the board of directors of the company at its meeting held on 11 April 2014 has approved setting-up of a joint venture company in Singapore. The joint venture company would further make strategic investments in the related field including business development of company's products in African continent. The board has also approved setting-up of a wholly owned subsidiary company in United States to establish and grow significantly the sales and marketing of the company's products in North America, Roto Pumps said.
Swelect Energy Systems on Monday, 14 April 2014, said that the company has successfully completed design, installation and commissioning of its 15 megawatts (MW) SPV Solar Park on 11 April 2014 at Monjanur Village, Aravakurichi Taluk, Karur District, Tamil Nadu. The park is generating power to its near full capacity and evacuation of power made through a 33 KV dedicated feeder to TANGEDCO sub-station and further stepped - up to 110 KV in to the grid. The final overall cost of the SPV park with all the other remaining civil works will cost about Rs 110 crore, Swelect Energy Systems said.
Cimmco, a railway wagons manufacturer, on Saturday, 12 April 2014, said its board of directors has approved issue of 8% non cumulative redeemable preference shares aggregating to the extent of Rs 50 crore to its promoter group entity viz. Titagarh Wagons on private placement basis. Cimmco said that the funds raised from the issue would be utilized for general corporate purposes including derisking the business by diversification into related areas of operations for which the plant at Bharatpur is fully equipped. Cimmco's board has also decided to extend the financial year ended 31 March 2014 to end on 30 June 2014.
Gruh Finance's net profit rose 16.71% to Rs 73.60 crore on 31% growth in total income to Rs 254.42 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 11 April 2014.
Gruh Finance's net profit surged 21.3% to Rs 176.96 crore on 30.08% growth in total income to Rs 846.16 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Revenue from operations for Q4 March 2014 includes write back of excess provision of Rs 19.22 crore made in the earlier quarters of the year as against Rs 14.94 crore written back in the corresponding quarter in the previous year, Gruh Finance said.
The Gross non-performing assets (NPAs) of the company are at Rs 18.87 crore (0.27% of the loan assets) as on 31 March 2014, as against Rs 17.64 crore (0.32% of the loan assets) as on 31 March 2013. Net NPAs of the company are Nil as on 31 March 2014, as against Rs 2.70 crore (0.05% of the loan assets) as on 31 March 2013, Gruh Finance said.
Disbursements during FY 2014 amounted to Rs 2577.47 crore as compared to Rs 2174.39 crore during FY 2013, representing a growth of 19%. Loan assets have increased from Rs 5437.80 crore as on 31 March 2013 to Rs 7009.04 crore as on 31 March 2014, registering a growth of 29%, Gruh Finance said.
Gruh Finance's board of directors at its meeting held on Friday, 11 April 2014, approved bonus issue in the ratio of 1:1 i.e. one equity share of Rs 2 each for every equity share held as on the record date to be fixed for the purpose to the shareholders of the company. The issue of bonus shares is subject to the approval of the shareholders of the company. The Board also recommended dividend of Rs 3 per share for FY 2014.