 Corporate News Headline | |
| • | Larsen & Toubro bagged orders worth Rs. 15.00 bn from various vendors for construction of hospitals, residential towers and factories. The company has received two orders worth Rs. 6.27 bn from HLL Lifecare Ltd for construction of hospital buildings and a Rs. 3.42 bn contract is secured from Shree Ahuja Properties & Realtors for residential buildings. (BS) |
| • | IVRCL Infrastructure & Projects has tied up Rs. 11.43 bn in debt for its road project on the Gujarat-Madhya Pradesh border. (BS) |
| • | ONGC has lost out on acquisition of Uganda oil fields to China's Cnooc, the latest instance Chinese firms outbidding the state-owned explorer in race for scarce oil properties. (BS) |
 | |
| Economic and Political Headline | |
| • | India will need an investment of over USD 1 tn for infrastructure development in the 12th Five Year Plan (2012-17), twice the amount that is likely to be achieved in the current plan. (BS) |
| • | Orders for long-lasting goods rose in February for a third month, while inventories and backlogs climbed by the most in more than a year. The 0.5% increase in bookings for durable goods followed a 3.9% gain the prior month, the Commerce Department said. Excluding transportation equipment, orders advanced 0.9%. (Bloomberg) |
| • | Sales of new homes in the US unexpectedly fell in February to a record low as blizzards, unemployment and foreclosures depressed the market. Purchases decreased 2.2% to an annual pace of 308,000, figures from the Commerce Department showed in Washington. (Bloomberg) |
 | 5225.30 | ( 0.39 %) | 20.10 |  |
| 1 | 2 | 3 | ||
| Resistance | 5248.13 | 5270.97 | 5298.33 | |
| Support | 5197.93 | 5170.57 | 5147.73 | |
 | 17451.02 | ( 0.23 %) | 40.45 | | |
| 1 | 2 | 3 | |||
| Resistance | 17535.66 | 17620.30 | 17709.81 | ||
| Support | 17361.51 | 17272.00 | 17187.36 | ||
NIFTY FUTURES (F & O):
Below 5208 level, expect profit booking up to 5200-5202 zone and thereafter slide may continue up to 5182-5184 zone by non-stop.
Hurdles at 5237 & 5240 levels. Above these levels, buying may continue up to 5246-5248 zone and thereafter expect a jump up to 5264-5266 zone by non-stop.
Cross above 5270-5272 zone, can take it up to 5288-5290 zone by non-stop. Supply expected at around this zone and have caution.
On Negative Side, rebound expected at around 5176-5178 zone. Stop Loss at 5157-5159 zone.
Short-Term Investors:
Bullish Trend.
Up Side Target at 5438.30.
Stop Loss at 5105.50.
Strong & Weak Stocks
This is list of 10 strong Stocks:
JSW Steel, Dr Reddy, Chennai Petro, India Cement, Triveni, India Hotels, LITL, DCHL, Cairn India & Biocon.
And this is list of 10 Weak Stocks:
Balrampur Chini, Bajaj Hind, Bank Of India, HDIL, Hind Petro, Tulip, KFA, Orchid Chem, BPCL & DCB.
Nifty is in Up trend
Equity:
TATAMOTORS (NSE Cash)
Yesterday's selling could be considered as a speculative selling.
If fall continues, then it can tumble up to 701.55 level by non-stop.
If short covering starts, then it can zoom up to 768.45 level by non-stop
and have caution.
JSWSTEEL (NSE Cash)
Yesterday's rally was surprising & real buying too.
If rally continues, then it can zoom up to 1336.25 level by non-stop.
If profit booking starts, then it can tumble up to 1233.75 level and have
caution.
SBIN (NSE Cash)
Yesterday's rally was surprising & speculative buying too.
If rally continues, then it can zoom up to 2096.70 level by non-stop.
If profit booking starts, then it can tumble up to 2001.95 level and have
caution.
ARSSINFRA (NSE Cash)
Yesterday's rally was surprising & speculative buying too.
If rally continues, then it can zoom up to 952.75 level by non-stop.
If profit booking starts, then it can tumble up to 912.00 level and have
caution.
OPTIONS (NSE):
NIFTY 5200 CALL OPTION
Unwinding continued on Tuesday & in line with expectations.
If selling continues, then it can tumble up to 20.10 level by non-stop.
If short covering starts, then it can zoom up to 52.00 level by non-stop and have caution.
RELIANCE 1080 CALL OPTION
Rallied on yesterday & it was a surprise. It was a speculative buying.
If rally continues, then it can zoom up to 20.45 level by non-stop.
If profit booking starts, then it can tumble up to 3.15 level and have
caution.
STOCK FUTURES (NSE):
LITL FUTURES
Rallied on yesterday & it was a surprise. Bulls beaten expectations & Bulls should not get panic at lower levels.
If rally continues, then it can zoom up to 59.30 level by non-stop.
If profit booking starts, then it can tumble up to 51.40 level and have
caution.
APIL APRIL FUTURES (3 Days Holding)
Rally may continue for next 3 trading days. Bulls should not get panic at lower levels. As for today's trend, rally
should continue & Bulls should not get panic at lower levels.
Buy with a Stop Loss of 583.10 level with a Target of 645.80 level. These levels applicable for today & for next 3 trading days also.
INVESTMENT VIEW
Sugar: Down 43 Per Cent And Still Falling!
Sugar-Mills In UP Will See RED in The Sugar 10-11 Season
The weeds of self destruction have been planted by the mill owners in the Sugar year 09-10 by accepting cane supplies at Rs 260 per quintal. This means, no mill can produce sugar below Rs 30 a kg.
With better plantation, higher expected price and bumper cane crop in Brazil, while wholesale price of Sugar will continue to drop for most of CY10, the farmers in the Northern State of UP will not agree to Sell Cane below the Sugar year 09-10 price. Balrampur, Dhampur and Bajaj Hindustan have yet to see the worst of times, and their stocks can fall even more significantly on the bourses.
Sugar prices are falling after reports indicate Brazil is harvesting a plentiful crop that could boost global supplies.
Tuesday's decline is the latest setback for sugar futures, which have retreated about 43 percent since it hitting a 29-year high in early February.
Analysts say the reversal is occurring as traders pull out of the market because of growing expectations that global supplies will improve on higher production.
Other commodities were mixed as the dollar rose against most other major currencies. Gold and most energy prices rose while grains fell.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
INVESTMENT VIEW
Jim Rogers: India Will Muddle Along Till The Next Debt Crisis Hits Them Hard!
Forbes: The finance minister has changed the direction of India's budget deficit by reducing the target for 2010-11 to 5.5%.
Jim Rogers: You really believe it will happen? Go back over the years and see their previous claims.
He has got a lot of praise for that in India. Still you are not impressed. Why?
Even if it happens, it is not being done by sound budgeting. It is from selling off the family jewels, if it happens.
Don't you think a high deficit was justified last year when the government had to spend and help the economy revive?
No. They are just trying to push the problems out into the future rather than solving the underlying problems. Do you really think the solution for a problem of too much debt and too much consumption is more debt and more consumption?
Are we not living in extraordinary times when we have to follow such flexible policies?
We are indeed. They are making the problems worse in extraordinary times which require tough measures to correct decades of abuse.
The finance minister rolled back some of the economic-stimulus measures he had announced last year. Would you have preferred to see a complete rollback rather than a partial one?
Yes. And more.
If you were to set an agenda for the government, what would it be?
Cut spending and subsidies dramatically. Many studies have shown that countries start having serious growth problems when debt is 90% of GDP (gross domestic product). India is now [at] 80% and will be [at] 90% soon under this budget. The subsidies distort the economy in less-productive areas.
Did you see any reform measure in the budget?
I see some words for some small steps in retailing and energy. We will see.
India doesn't have a convertible currency. Neither does China. You have backed China in the past but not India. Why?
I have pointed out scores of times that China is mistaken having a blocked currency. What is wrong with you?
No country has ever become a world player or even a significant economy with a blocked currency.
Some specific global lessons or examples that India can adopt from other countries such as China?
Open your borders to foreign capital and brains. For example, foreigners cannot enter retailing in India, but Wal-Mart, etc. are all over China. Your politicians close down free commodity markets every time prices rise as if the markets were making the prices rise!
Farmers can own only very, very small farms, so India cannot compete on the world stage, yet India should be one of the great agriculture nations of the world.
What will it take to get you to invest in India?
Some sense of 21st-century reality. Open the economy [in areas] such as retailing, energy, agriculture, etc. Make the currency fully convertible.
What are the lost opportunities in the budget, according to you?
The same things I just mentioned. Likewise why not start reducing the gigantic debt if things really "are getting better," as he claims?
You have watched India for a long time. Where do you think the country will go from here?
Continue muddling along until the reality of the huge debt-to-GNP [ratio] hits home and stops things.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 23-Mar-2010 | 2385.54 | 2025.79 | 359.75 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 23-Mar-2010 | 1078.06 | 1151.45 | -73.39 |
Disclosure: I don't have any positions in the above said scrips & NIFTY FUTURES.
Disclaimer:
"I do not make any warranties, express or implied, as to results to be obtained from using the information in this e-letter. Investors should obtain individual financial advice based on their own particular circumstances before making any investment decisions based upon information in this report."
-- Arvind Parekh
+ 91 98432 32381
