Headlines for the day
Corporate News Headline
Reliance Capital reported Q2'09 results, total operating income rose 38% yoy to Rs. 13.13 bn, and net profit improved 15% yoy to Rs. 2.29 bn. (ET)
Suzlon Energy reported Q2'09 results, total income rose 40.15% yoy to Rs 22.34 bn but net profit dipped 95.22% to Rs. 170 mn. (BS)
Unitech reported Q2'09 results, total income declined 6% yoy to Rs. 10.01 bn and net profit dipped 12% to Rs. 3.58 bn. (BS)
Economic and Political Headline
The government approved the comprehensive Insurance Bill, which seeks to raise foreign direct investment cap in private sector to 49% from 26%. (BS)
The RBI cut 100 basis points in cash reserve ratio in two tranches and a 0.5 % reduction in repo rate, signalling softening of interest rates to prop up growth. (BS)
The Bank of Japan cut its benchmark interest rate to 0.3% to help stave off a prolonged recession. (Bloomberg)
NIFTY SPOT LEVELS
1 | 2 | 3 | ||
Resistance | 2972.53 | 3059.47 | 3197.58 | |
Support | 2747.48 | 2609.37 | 2522.43 | |
SENSEX LEVELS
| 1 | 2 | 3 | |||
| Resistance | 9985.10 | 10182.14 | 10493.86 | ||
| Support | 9476.34 | 9164.62 | 8967.58 | ||
NIFTY FUTURES (F & O)
Above 2916 level, expect rally up to 2982-2984 zone by non-stop.
Support at 2852 & 2872 levels. Below these levels, expect profit booking up to 2785-2787 zone and thereafter slide may continue up to 2719-2721 zone.
Buy if touches 2610-2612 zone. Stop Loss at 2545-2547 zone.
On Positive Side, if crosses & sustains at above 3047-3049 zone then uptrend may continue.
Short-Term Investors
:Short-Term trend is bearish and target at around 2546 level (Already broken) on down side.
On Positive Side, rallies up to 3085 level can be used to exit. Maintain a Stop Loss at 3265 level for your short positions too.
BSE SENSEX
Technically buying should continue.
Short-Term Investors:
Trend is Bullish & Technical target at around 10898 level on upper side. Corrections up to 8498 level can be used to buy. SL at 7697 level.
----------MAHINDRA & MAHIN (NSE Cash): Likely to Zoom
. Technically it should go up.If crosses & sustains at above 392 level then uptrend may continue.
Support at 309 level. Should not be allowed to break at any cost.
HDFC FUTURES (NSE): Likely to Zoom. Technically it should go up.
If crosses & sustains at above 1806 level then uptrend may continue.
Support at 1580 level.
Should not be allowed to break at any cost.------------
The Dow Jones Industrial Average closed at 9,325.01. Up by 144.32 points.
The Broader S&P 500 closed at 968.75. Up by 14.66 points.
The Nasdaq Composite Index closed at 1,720.95. Up by 22.43 points.
The rupee <INR=IN> ended at 49.44/46 per dollar, stronger than
Wednesday's close of 49.69/70 per dollar.
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Trading Calls 3rd Nov 08
+ve sectors & scripts : Banknifty, IT & Nifty, Hoteleela,IndianBan k,SterlinBio, Techm, MTNL
Buy Tatacomm-484 for 504-518 with sl 480 [Trading]
Buy Tatasteel-209 for 238 with sl 203
Buy Indiainfo-57 for 65 with sl 54
Buy Rcom-219 for 233-243 with sl 212
Buy Hindalco-60 above 63 for 70-74 with sl 60
Buy GEShip-220 for 245 with sl 211 [positional]
Buy HDFC-1764 for 1908 with sl 1740
+ve to Market
1. Global cues, 2. CRR,Repo,SLR cut by RBI 3. FII buying 4. Asian Market
Index Outlook
Forced smiles gave way to genuine cheer as stock prices zipped upwards to light up the Diwali sky last Tuesday. A consensus seems to be building up across the globe that the selling had been over-done and some respite is in order. Sensex ricocheted upward from Monday's trough at 7697 to close with a triumphant 1087 points weekly gain, that too in just three full sessions!
There is however no doubt that equity markets will take some time to recover from the battering received in October 2008. The losses this October rank among the top ten monthly losses in S&P 500 and the highest ever in points in the Dow Jones Industrial Average. Sensex too has lost 3072 points in October and it was down 5163 points when it reached the nadir on October 27.
It is after a hiatus of five dismal weeks that some semblance of reversal is visible on the technical charts. The hammer pattern on the daily candlestick chart and the bullish piercing pattern on the weekly chart imply that a short-term trough has been formed at 7697. The Sensex has closed above our key long-term support at 9700. Mild signs of strength are also visible in the daily oscillator charts. But the magnitude of the fall over the past month has rendered such spurts immaterial in the weekly as well as the daily time-frame.
In e-wave term, it is too early to judge if the C wave that commenced from 15579 has ended. As explained earlier the first and second targets for this wave are 10209 and 6887. The wave could terminate between these two levels also. The action over the next two weeks needs to be observed before drawing any conclusion.
We stay circumspect from a medium-term perspective. The one-week-up-one-week-down kind of move observed in global indices over October means that any up-move needs to sustain for more than one week before it can be taken seriously. Oscillators in the weekly chart are still muted. Investors should watch out for the 10700 level. If this level is surpassed, there can be a surge towards the long-term resistance at 12500.
The resistances for the week ahead would be at 10177 and then 10275. The minor wave counts of the down-move from 15579 indicate the current short-term up-trend will face strong hurdle in the zone between 10100 and 10300. A downward reversal from this zone will mean that the index will head lower to 8000 and below. This up-trend will turn overtly positive on a close above 10750. Short-term supports would be at 9040 and 8543.
Nifty (2885.6)
Nifty recorded an intra-week trough at 2252 before re-bounding. But the piercing pattern in the weekly candlestick chart of Nifty is weaker than that in Sensex. As explained earlier, the target of the third wave from 6357 peak is 3070 and 2093. A significant trough is possible anywhere between these two targets. November 2005 trough at 2314 is the support around which last Monday's decline halted. The medium-term resistance to watch is at 3200. This level needs to be surpassed if the Nifty has to make a dash towards 3830.
For the week ahead, there would be strong resistance in the zone around 3000. If this level is crossed, the next resistance is at 3235. Reversal below 3000 will imply that the down-move would resume to pull the index towards 2200 again. Supports would be at 2670 and 2510.
Global CuesIt was a splendid recovery in equities across the globe and the investor trepidation level too came down; as was indicated by the CBOE VIX's decline to 59.8 from the peak of 89 recorded in the previous week. However, if we consider the movement over the last three weeks, most indices are moving sideways in a range resulting in wide week-to-week swings. The DJIA too is moving sideways and has closed near the upper boundary of this range. A close beyond 10400 is needed to signal that a sustainable recovery is underway in this index.
CRB index, that maps the commodity price movement, is recovering from the key support at 356. Though the recovery is not strong enough, the fact that the index is attempting to stabilize is a positive. Comex gold declined below the support at $730 to an intra week trough at $680. The next long-term support for the precious metal is at $650 and the third leg of the decline from March peak has the target at $630. A trough in the area between $630 and $650 is possible on a close below $700. —
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Strong & Weak futures
This is list of 10 STRONG futures:
Gtl
Sterlinbio
Bhushansteel
Titan
IndianBk
Infosys
Hotel leela
Satyam
Bhel
&Dabur
10 WEAK Futures
Unitech Jetairways
Parsvnath
Gitanjali
Briade
Jstainless
Ivrprime
Uniphos
Purva&
Suzlon
Nifty is in Down Trend until 3070 levels.
INDIABULLS
--
Arvind Parekh
+ 91 98432 32381
