Market For Tomorrow: 24th Aug '11

After a bullish trend of yesterday's session market moves continuously upside, Market may recover from the bearish trend of last some days. Today Sensex closed at 16,498.47 with the +156.77 up points or up by 0.96%. And the Nifty closed at 4,948.90 having +50.10 positive points or 1.02% up. Tomorrow Market may show its strength again.

In Nifty technically the market is in a typically sideways zone with 4870 as a strong support zone to work with and 5010 as a strong resistance zone to work with.It is looking bullish in the coming trading session if it manages to trade above the Resistance level of 5010 else below the Support level of 4870 it would be down trend.

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Free Nifty Trend For Monday (13th June '11)

                    

Today Sensex closed at 18,268.54 with -116.36 down points or down by -0.63%. And the Nifty closed at 5,485.80 with -35.25 down points or down by -0.64%. On the other side in the Derivatives Nifty Futures: it closed with -32.10 negative points and settle at 5,487.05 down by -0.58%. So over all market was down today and may start with same manner in next trading session. At the llast trading session the market take the down trend and made a position in red points.

The market still has to deal with a few headwinds, high oil prices and rising interest rate cycle, this is not going to be very good for equity valuations at least in the near term. However, these won't dramatically impact the market because people are already underweight and aware of some of these risks. There can be a plus or minus 10% on either side at this point in time unless either things get significantly worse.

Nifty Futures Intraday Tips and Trend For Tomorrow 20-April

The benchmark indices closed flat, with a positive bias, after moving between the positive and negative terrain throughout the day. The S&P CNX Nifty closed at 5740.75, up by 11.65 or 0.20 %.

The Nifty futures closed and settled finally at 5760.30, up by 24.30 or 0.42 %. It looking bearish in the coming trading session if it manages to trade below the support level of 5695 else above resistance level of 5796 it would be in an upward trend.

RESISTANCE: It has first resistance close to the level of 5796 & above this level the next resistance is seen near the 5921 mark.

SUPPORT: It has first support close to the level of 5695 & below this level the next support is seen near 5660 mark.

Nifty Futures Trend For Tomorrow 16-March

The Indian markets ended in the negative territory. The S&P CNX Nifty closed at 5449.65, down 81.85 points or -1.48 %.

The Nifty futures closed in red and settled finally at 5463, down 92.30 points or 1.76 %. It is looking bearish in the coming trading session if it manages to trade below the support level of 5375 below this level it would be in a bearish trend else above 5505 it might be in an upward trend

RESISTANCE: 5505 & 5565.
SUPPORT: 5375 & 5310.

Bank Nifty Intraday Levels For Tomorrow 09-March

In banking, CNX Bank Index gained 149.30 points or -1.38 %. Amongst the banking stocks Canara Bank and oriental of Commerce lead the row.

Bank Nifty Futures shut stop at 10984.50, up 176 points or 1.63 %.It is looking bullish in the coming trading session if it manages to trade above the resistance level of 11155 else below 10790 it might be in a bearish trend.

RESISTANCE: It has first resistance close to the level of 11155 & above this level the next resistance is seen near to the level of 11325 marks.
SUPPORT: It has first support close to the level of 10790 & below this level the next support is seen near 10650 marks.

Nifty For Tomorrow 16-Feb

The benchmark indices rose for third straight session, after two days of pull back rally the S&P CNX NIFTY closed at 5481, up 25 points or 0.46 %. The Indian VIX which is currently at 22.85 and it was up by 0.27 % or 1.20 points indicates that the market will continue to volatile in the short term.

NIFTY Futures closed at 5476, up by 20.35 points or 0.37 %. It is looking bullish in the coming trading session if it manages to break the resistance level of 5566 else below 5340 it would be in a bearish trend.

RESISTANCE: 5566 & 5622.
SUPPORT: 5340 & 5195. 

Bank Nifty Futures For Monday 14-Feb

Bank Nifty Futures closed at 10465, up 370.25 points or 3.67 %.In banking sector index heavy weighted PNB, ICICI, AXIS lead the row. South Indian bank and ING Vysya Bank gained 7.10 % or 6.51 % respectively. It is looking bullish in the coming trading session if it manages to trade above the resistance level of 10515 else below 10010 it would be in a downward trend.

RESISTANCE: 10515 & 10800.
SUPPORT: 10010 & 9950.

Bank Nifty Trading Levels For Tomorrow

Bank Nifty Futures closed at 10160, down 215.65 points or 2.08 %.In bank sector some of stocks was down by 3%- 6%, ING Vysya, Kotak Mahindra Bank, united bank of India lead the row. It is looking bearish in the coming trading session if it manages to trade below the support of 10095 else it has resistance at 10430 above this level it would be bullish in trend.

RESISTANCE: 10430 - 10600.

SUPPORT: 10095 - 9950.

Intraday Nifty Futures Levels For 31-Jan

Nifty Future was in continuous down trend last week and breached its support of 5500 and tested 5485 level. It can continue down trend in coming trading session. One should adopt the strategy of sell at higher level. Support for nifty Future is at 5470/5412 and Resistance is at 5622/5682 levels.

RESISTANCE: It has first resistance close to the level of 5622 & above this level the next resistance is seen near the 5682 mark.

SUPPORT: It has first support close to the level of 5470 & below this level the next support is seen near 5412 mark.

Market News: Videocon, Punj Lloyd, RBI

Videocon Industries is reportedly set to enter financial services sector by forming a non-life insurance joint venture with Boston-based Liberty Mutual Group. Videocon will hold 74% stake in the venture.

Net profit of Punj Lloyd declined 97.02% to Rs 1.25 crore on 44.25% decline in net sales to Rs 1032.29 crore in the quarter ended September 2010 over the quarter ended September 2009.

The rupee edged higher on Tuesday as the dollar's losses versus major units offset demand related to Coal India's over-subscription refund.
 

D Subbarao governor of the Reserve Bank of India on Tuesday announced a hike of 25 basis points in the repo and reverse repo rates, respectively, in the mid-year review of its credit policy. The cash reserve ratio (CRR), as expected, has been left untouched at 6%.

The RBI had cautioned on Monday that inflation was still above its comfort level, adding to expectations that it will raise interest rates for the sixth time this year at the review.

The yen fell against its higher- yielding counterparts after Australia's central bank unexpectedly raised interest rates and a report showed wages in New Zealand increased.

Oil rose for a second day to trade near a two-week high before a government report forecast to show that U.S. supplies of diesel and heating oil are at their lowest level since July.

Share Market News: Coal India IPO, L&T, Rupee, Dollar Euro

Engineering conglomerate Larsen & Toubro Ltd on Monday maintained its revenue growth forecast at 20 percent for the year to March 2011.
 

State-run Coal India's up to $3.5 billion Initial Public Offering (IPO) was roughly 32 percent covered by early afternoon on Monday, the first day of bids, stock exchange data showed.
 

Petronet LNG Ltd., India's biggest importer of liquefied natural gas, will receive three cargoes of the fuel in the coming

Engineering conglomerate Larsen & Toubro Ltd on Monday maintained its revenue growth forecast at 20 percent for the year to March 2011. 

The rupee opened down on Monday tracking losses in Asian currencies.

Yields on India's 10-year government bonds are poised to rise above the inflation rate for the first time since January as the central bank tames prices.

The battered dollar rose on Monday, edging further away from a 10-month low, while Asian stocks pulled back from a two-year high as markets awaited details of a widely expected easing in U.S. monetary policy.

Oil declined for a third day in New York, its longest slide in a month, on a stronger dollar and concern that U.S. fuel consumption is rebounding too slowly.

The European Union's monetary affairs chief urged member states to agree on tough budget reforms on Monday after some countries said enthusiasm for far-reaching change was waning.

Yields on India's 10-year government bonds are poised to rise above the inflation rate for the first time since January as the central bank tames prices.

Indian Stock Market News

• Reliance Industries Ltd., owner of the world's largest refinery, received $1 billion of term loans from a group of 31 banks.

• The Indian car unit of Honda Motor Corp has not yet decided on starting assembly operations at its second manufacturing unit in Rajasthan, a senior official said on Thursday.

• Indian energy major Reliance Industries Ltd, controlled by billionaire Mukesh Ambani, is close to inking a deal with hedge fund DE Shaw to launch a $700 million to $800 million infrastructure fund.

• Maruti Suzuki, India's top car maker, is seeing good sales in August, its marketing and sales chief Mayank Pareek said.

• The rupee rose on Thursday supported by mild gains in domestic shares, and broad weakness in the U.S. dollar after weak home sales data sparked concerns of another downturn in the world's largest economy.

Share Market News: Vedanta-Cairn deal

• Vedanta Resources Plc, controlled by billionaire Anil Agarwal, is in advanced talks to buy a controlling stake in Cairn Energy Plc's Indian oil-exploration unit.

• Exide Industries buys out remaining 49 pct in Leadage.

• The UK-based Cairn Energy said it will sell 51 per cent stake in its Indian unit to mining firm Vedanta Resources Plc for USD 8.48 billion.

• Jaihind Projects gets order worth 100.7 mln rupees.

• India's Suzlon Energy June qtr net widens.

• Marico unit buys South African health brand.

Stock Market News Summary

Ranbaxy Laboratories Ltd., India's top drugmaker by sales, on Thursday swept past analyst estimates with a fifth straight quarter of profits.

State Bank of India (SBI), the country's biggest lender, beat forecasts with a 25 percent rise in quarterly profit as net interest income improved.

Tata Motors is looking at setting up a new plant in India to manufacture small trucks, the company's India head P.M. Telang said on Thursday.

Vedanta Resources Plc is in talks to purchase assets or take a multi billion-dollar equity stake in Cairn Energy Plc, a U.K. oil and gas exploration company.

The rupee was trading near its lowest in almost three weeks on Thursday, as an overnight rally in the dollar triggered early stop losses, and weak domestic shares and Asian peers hit sentiment.

Commodity Market News and Fundamental Review

News Highlight

GOLD FIRMS AHEAD OF FED MEETING.

OIL STRUGGLES TO REGAIN $83 PEAK.

INDIA COPPER EXTENDS GAINS TRACKING OVERSEAS MKTS.

CHANA CLOSED DOWN ON PROFIT BOOKING.

Fundamental Review

GOLD ROSE ON MONDAY AS UNCERTAINTY HIT THE MARKET AHEAD OF A U.S. FEDERAL RESERVE POLICY MEETING THIS WEEK, WITH SOFT ECONOMIC DATA SPARKING SPECULATION THAT THE FED MAY ANNOUNCE ADDITIONAL MONETARY EASING MEASURES.

INDIA COPPER FUTURES EXTENDED GAINS FOR A SECOND SESSION ON MONDAY EVENING TRACKING FIRM OVERSEAS LEADS, WHERE A DROP IN INVENTORY SUPPORTED THE RED METAL.

SEBI Permits Intraday trade for seven more Scrips

It said that the these seven companies -- Volant Textile Mills, Tilak Finance, GFL Financials, Virdhi Commercial, Window Glass Ltd , Shri Mahasati Investments and Mudit Finlease -- have "established connectivity with both the depositories (NSDL and CSDL)" in April, 2010.

Market regulator SEBI on Thursday directed the stock exchanges to allow intra-day trading in scrips of seven companies. The Securities and Exchanges Board of India (SEBI) said these companies can now shift from the Trade for Trade Settlement (TFTS), under which a company can not carry out intra-day trade, to a normal Rolling Settlement.

Equity Market News Summary

• Maruti Suzuki India's top car maker, is looking to speed up expansion plans to meet booming demand in the fast-growing south Asian country. 

• Reliance Communications expects to roll out 3G services by the end of 2010, provided government allocates spectrum by September, a company official said on Wednesday. 

• India's Larsen & Toubro gets orders worth $222 mln. 

• Steel Authority of India hopes to form a joint venture with Japan's Kobe Steel within six months, for setting up a 0.5 million tonne steel plant in India. 

• The Indian rupee climbed to a fresh one-month high on Friday as custodian banks, representing foreign investors, sold doll. 

• The government on Tuesday sought parliamentary approval to spend a net additional 545.89 billion rupees ($11.8 billion) in the 2010/11 fiscal year. 

• The Reserve Bank of India stripped some portfolios from a deputy governor who indicated the central bank would raise interest rates days before an unscheduled move. 

• Indian bond yields largely steady; supplies eyed . 

• The Institute for Supply Management said the US manufacturing sector grew at a faster rate than expected in. 

• The yen rose towards a 15-year high against the dollar on Wednesday, sending benchmark government bond yields below 1 percent and adding pressure on Japanese policy makers to keep the fragile economic recovery on course. 

• Crude oil declined from a three-month high in New York before the release of economic data forecast to show that the recovery is losing steam in the U.S., the world's second-largest energy consumer.

Repo Rate and Reverse Repo rate hike by RBI and its affect on Indian Stock Market - Should investors buy, sell or hold

Recently RBI hiked repo rate and reverse repo rate from 5.5% to 5.75% (‘25 basis points’ is another way of saying ‘0.25%’) and the reverse repo rate from 4 to 4.5% and investors are thinking should they buy, sell or hold stocks. First of all let us understand why did RBI hiked repo and reverse repo rate and the obvious answer is to keep the inflation under control. As we all know that access of liquidity in the financial system causes inflation but the main reasons this time were:

1. Reduction in the repo and reverse repo rates by the RBI during the downturn in 2008 and 2009
2. Continuous inflow of large sums of FII money into the Indian stock markets
3. Larger inflow of remittances from NRIs into India (due to the economic downturn in Europe and USA)

A crash in stock market is unlikely. The hike in the repo and reverse repo rates were already ‘discounted’ – which means that it was within expected limits.

Should investors buy, sell or hold

Answer to this question depends on individual invesotrs and traders. Here, I would like to say that it is not favourable for bull market,  as it raises the cost of doing business and affects profitability.

My recommendation here for traders who want to buy is to select only fundamentally strong stocks with a track record of flourishing through several bull and bear phases. If you already have such stocks in your portfolio, hold with trailing stop-losses and ride the bull. Book profits in any second or third rung stocks that you may own.

There is no reason to sell in a panic as long as the Sensex trades above a rising 200 day EMA, we are in a bull market. Setting stop-losses will save portfolios from getting destroyed.

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Read Daily Technical View on Nifty and Sensex on this blog.

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News Summary: Share Market

• Maruti Suzuki, India's top carmaker, reported a surprise 20 percent fall in net profit in the quarter to June, hit by high raw material costs, an increase in royalty payments, and a weakening of the euro which hurt export revenues. 

• India's Fortis Healthcare will be debt-free following the sale of its stake in Singapore healthcare firm Parkaway Holdings.

• Godrej Consumer Products reported a 67 percent rise in first quarter net profit on sales that rose 47 percent . 

• Vodafone Group Plc may sell its minority stake of 4.39 percent in Bharti Airtel that is valued at 52 billion rupees ($1.1 billion) at current market price.

• The Indian rupee rose to its highest level in more than a week on Monday as dollar sales by some exporters in early trade helped, but traders will watch stocks and the dollar's moves versus majors for further cues. 

 Indian Share Market Tips and Review

• The Indian government has grudgingly accepted the central bank will likely lift interest rates on Tuesday, but is not convinced conditions warrant further tightening therea.

• The Indian government has grudgingly accepted the central bank will likely lift interest rates on Tuesday.

• The Prime Minister's Economic Advisory Panel, forecast 8.5% growth in GDP in the fiscal year that ends in March 2011 It expects 4.5% growth.

• The combination of growing confidence in Europe's economy and mounting evidence of a slowdown in the U.S. is driving euro bears into hiding.

• Gold, little changed in London today, may gain on speculation physical demand for the metal will increase.

• Oil declined for a second day in New York on speculation that the global recovery may stall and crimp fuel consumption.

• The yen rose against the dollar and the euro, reversing earlier losses, as a decline in stocks supported demand for a currency investors perceive as a refuge.

Top News : Indian Share Market

• Sunil HiTech said on Tuesday it got orders worth 1.73 billion rupees in the first quarter, including a construction job secured by a consortium for the Maharshtra Airport Development Corp.

• Chennai-based Shriram Group is likely to take over the cash-strapped front-end retail arm of Vishal Retail Ltd after private equity investor Texas Pacific Group (TPG) takes charge of its wholesale division.

• Geodesic Ltd said on Tuesday it has signed a strategic deal with Zee Entertainment Enterprises;ZEE to launch real time entertainment applications for mobile and internet-enabled devices.

• The Indian rupee fell to its lowest level in a month and half on Tuesday, weighed down by defence-related import payments and demand for dollars from some companies.

• India may start using new wholesale price index (WPI) series from next month, Industry Secretary R.P. Singh said on Tuesday.

• Indian federal bond yields and swap rates inched up on Tuesday, tracking U.S. Treasury yields and as domestic cash levels remained tight.

• India is looking to rejig its subsidy mechanism, Cabinet Secretary K.M. Chandrasekhar told reporters on Tuesday, indicating the government's intent in slashing its fiscal deficit.

• China on Tuesday branded a group of U.S. lawmakers as protectionist for seeking to block an investment by the country's fourth-largest steel maker on national security grounds.

• The yen fell for a second day against the dollar on speculation the Bank of Japan will intervene to weaken the currency after it climbed to a seven- month high last week.

• Oil climbed to $77 on Tuesday as forecasts for a fourth consecutive weekly drop in U.S. crude inventories bolstered the positive influence of rising stock markets in most of Asia.

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