SBI had got Reserve bank approval for its proposed joint venture with a unit of French bank Societe Generale. (ET)
Dabur India agreed to buy 72.15% in Fem Care Pharma in an all cash deal of Rs. 2.03 bn. (ET)
Power Grid Corporation is planning to have more external funding, including from multilateral lending agencies, for implementing its projects proposed in the 11th Five-Year Plan. (BS)
Prime Minister Manmohan Singh assured to industrialists that notwithstanding the global economic crisis, India would be able to achieve a growth target of 8%. (BS)
The government and the Reserve Bank of India are contemplating to open a special Rs. 200 bn refinance window to boost growth of small and medium enterprises, which are facing credit crunch (BS)
The UK home repossessions by mortgage lenders rose 12% in the third quarter as higher unemployment and the shrinking economy left more Britons unable to pay their debts. (Bloomberg)
NIFTY FUTURES (F & O) Rally may continue up to 2742-2744 zone. Support at 2674 & 2695 levels. Below these levels, expect profit booking 2600-2602 zone and thereafter selling may continue up to 2528-2530 zone.Below 2456-2458 zone, panic may continue up to 2384-2386 and thereafter it can tumble up to 2384-2386 zone by non-stop. On Positive Side, short rallies up to 2814-2816 zone can be used to sell. Stop Loss is too far away and can be placed at around 2885-2887 zone. Short-Term Investors: Short-Term trend is bearish and target at around 2392 level on down side. On Positive Side, rallies up to 2982 level can be used to exit. Maintain a Stop Loss at 3178 level for your short positions too. BSE SENSEX Technically Profit Booking should happen. Excellent move by Bulls on Friday and amazing too. But there is a suspicion that it might be due to short covering. Short-Term Investors: Trend is Bearish & Technical target at around 8183 level on down side. Rallies up to 9974 level can be used to exit. SL at 10571 level. ------------------------------------------------------------------------------------------------------------------------------------------------------------------- The Dow Jones Industrial Average closed at 8,046.42. Up by 494.13 points. The Broader S&P 500 closed at 800.03. Up by 47.59 points. The Nasdaq Composite Index closed at 1,384.35. Up by 68.23 points. The partially convertible rupee <INR=IN> ended at 50.04/05 per dollar on Friday, stronger than 50.18/22 at close on Thursday. ----------------------------------------------------------------------------------------------------------------------------------------------------------------- Strong & Weak futures FII DATA FII -705.56 DII 46.22 Weekly Index Outlook Sensex (8915.2) Sensex recorded an intra-week trough at 8316 on Thursday and just when everyone had braced themselves for an inevitable plunge below 8000, it reversed smartly on Friday afternoon. Derivative volumes were high on Friday implying that short-covering could have been the prime reason for the surge. The expiry of the November contracts next week could see the rally extend a few more sessions. Low open interest below Rs 50,000 crore is a positive. The reversal on Friday, though heartening, has not changed the short-term outlook, that remains downwards. The momentum provided by this reversal can take the index higher towards 9320 or 9940 in the short-term. However, if the index does an about-turn in the early part of next week and fails to surpass the first resistance, it would imply that the down trend would resume to take Sensex down towards 7600 again. The long-term support levels in the immediate vicinity are the October 2005 trough at 7657 and March 2005 peak at 6882. We have also explained that the next target of the third wave from the 21,206 peak is at 6887. These are the levels that we will look at, to buttress any sharp decline in the near future. The most likely movement over the medium-term is a range-bound move between 7500 and 11000 as the index garners strength to fight back. The upper targets for the week ahead are at 9320 and then 9941. If the second resistance in surpassed, a move towards the recent peak at 10945 would be possible. Supports can be expected from 8300 and then 7690. Nifty (2693) Nifty reversed from an intra-week trough at 2503 on Thursday. The index can move higher to 3167 or 3765 next week. However, if it fails to move past 3167, it would imply that weakness would resume and pull the index lower to 2502 or 2252 again. The medium-term outlook for the index is neutral. A sideways move between 2200 and 3400 is likely over this timeframe. Long-term support levels to watch out for are the October 2005 trough at 2300 and March 2005 peak at 2183. Global Cues The down-trend that commenced in the first week of November continued to chip away at the global indices. Many of them breached their October lows while some are hovering close to these levels. CBOE volatility index spiked to 80 again implying that the state of investor's nerves was as taut as it was in the last week of October. Dow Jones Industrial Average gave everyone a scare by plunging to 7506 on Thursday. But the index closed the week above the 8000 mark. The 2003 and 2002 troughs at 7416 and 7197 are the immediate support levels for this index. The S&P 500 appears weaker than the DJIA since it declined below 2002 trough last week. But it needs to be remembered that these are long-term trend deciding levels so we need more than two weekly closes below 760 to pronounce the end of the structural bull market in this index. Commodities did not fare any better. CRB index is hovering at 350; the level recorded in late October. Penetration of this level will drag the index another 15 to 20 per cent lower. Crude was one of the worst affected and declined to $49, as indicated last week. The next short-term support is at $46. | ||||||||||||||||||||||||||||||||||||||||||||
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Arvind Parekh
+ 91 98432 32381
