Thursday, April 8, 2010

Market Outlook 8th April 2010

Derivatives EOD http://www.indiabulls.com/securities/mailermis/derivative-strategy/derivative-EOD-07-Apr-2010.htm



  Corporate News Headline
Punj Lloyd bagged India's largest solar based EPC contract of Rs. 2.32 bn from Government of Bihar. The scope of work includes design, construction and commissioning of 850 solar powered water treatment plants across the state of Bihar. (BS)
JSW Steel earmarked a capex of Rs. 70.00 bn for the current financial year and plans to increase capacity of its Bellary plant in Karnataka from 7 million tonne per annum (mtpa) to 10 mtpa by the end of this year. (BS)
Reliance Industries has allotted 43,533 equity shares of Rs. 10 each to its employees under employee's stock option scheme. (BS)
  Economic and Political Headline
Continuing the trajectory of growth, government has earned more than Rs. 55 bn as foreign exchange from tourists in March this year. The total foreign exchange earnings in March this year were Rs. 55.07 bn as compared to Rs. 44.37 bn in the corresponding period last year and Rs. 50.35 bn in March 2008. (BS)
Europe's economy unexpectedly stagnated in the fourth quarter as companies cut spending more than previously estimated. Gross domestic product in the 16-nation euro region remained unchanged compared with the third quarter, when it rose 0.4%, the European Union's statistics office said. It had previously reported a fourth- quarter expansion of 0.1%. Corporate investment dropped 1.3% instead of the 0.8% estimated earlier. (Bloomberg)
Consumer credit in the US declined in February more than anticipated, indicating Americans are reluctant to take on more debt without further improvement in the labor market. Borrowing fell by USD 11.5 bn, the most in three months, after a revised USD 10.6 bn January gain that was twice as much as initially estimated, the Federal Reserve said in Washington. (Bloomberg)

Strong & Weak Stocks
This is list of 10 strong Stocks: 
Allahabad Bank, Andhra Bank, Sintex, Ansal Infra, Pir Health, Nagarjuna Const, Concor, Orient Bank Indian Bank & GE Shiping. 
And this is list of 10 Weak Stocks: 
Renuka, BEL, Balrampur Chini, Bajaj Hind, Tech Mahindra, HCL Tech, Hind Petro, BPCL, Mphasis, Hind Uni Lvr.
The daily trend of nifty is in Up trend  since 16th February

SPOT /CASH INDEX LEVELS TODAY
NSE Nifty Index   5374.65 ( 0.16 %) 8.65       
 1 23
Resistance 5401.185427.72   5455.78  
Support 5346.585318.52 5291.98

BSE Sensex 17970.02 ( 0.16 %) 28.65      
 1 23
Resistance 18052.4818134.95 18222.03
Support 17882.9317795.85 17713.38

NIFTY FUTURES (F & O):
Below 5361 level, expect profit booking up to 5338-5340 zone and thereafter slide may continue up to 5324-5326 zone by non-stop. 
Hurdles at 5389 & 5394 levels. Above these levels, rally may continue up to 5401-5403 zone and thereafter expect a jump up to 5415-5417 zone by non-stop. 
Cross above 5422-5424 zone, can take it up to 5435-5437 zone by non-stop. Supply expected at around this zone and have caution. 
On Negative Side, rebound expected at around 5318-5320 zone. Stop Loss at 5304-5306 zone.

Short-Term Investors: 
Bullish Trend. 
Up Side Target at 5429.95. 
Stop Loss at 5106.55. 
We are trading near Target level. We should assume that, Target level won't be crossed. If crosses & closes this level by consecutive 3 days then it can zoom up to 5591.65 level by non-stop.

STOCK FUTURES (NSE):
BHARATFORG FUTURES: 
Real Buying taken place on yesterday. If rally continues, then it can zoom up to 288.10 level by non-stop. Unexpectedly, if profit booking starts, then it can slide up to 264.05 level and have caution.
5 Day's Holding: 
EKC FUTURES (NSE): Real Buying taken place in last 5 trading days. If rally continues, then it can zoom up to 141.90 level by non-stop. Unexpectedly, if profit booking starts, then it can slide up to 121.40 level and have caution.

OPTIONS (NSE):
NIFTY 5400 CALL OPTION: 
Yesterday's rally was a surprise. But speculative too. If rally continues, then it can zoom up to 85.40 level by non-stop. Unexpectedly, if profit booking starts, then it can slide
up to 38.60 level and have caution.

IDFC 180 CALL OPTION: 
Real Buying taken place on yesterday. If rally continues, then it can zoom up to 3.35 level by non-stop. Unexpectedly, if profit booking starts, then it can slide up to 0.85 level and have caution.

Equity:
TATAMOTORS (NSE Cash): 
Yesterday's rally was a surprise. Real Buying too. If rally continues, then it can zoom up to 823.95 level by non-stop. Unexpectedly, if profit booking starts, then it can slide
up to 774.50 level and have caution.

APOLLOTYRE (NSE Cash): 
Yesterday's rally was a surprise. Real Buying too. If rally continues, then it can zoom up to 83.05 level by non-stop. Unexpectedly, if profit booking starts, then it can slide up to 73.40 level and have caution.

ICICIBANK (NSE Cash): 
Yesterday's fall was a surprise. Speculative Selling too. If fall continues, then it can tumble up to 949.20 level by non-stop. Unexpectedly, if short covering starts, then it can zoom up to 1009.00 level by non-stop.

EDUCOMP (NSE Cash): 
Speculative Selling taken place on yesterday. If fall continues, then it can tumble up to 712.20 level by non-stop. Unexpectedly, if short covering starts, then it can zoom up to 765.80 level by non-stop.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
CategoryDate Buy ValueSell Value Net Value
FII 07-Apr-20103415.45 3076.67338.78
DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category DateBuy Value Sell ValueNet Value
DII07-Apr-2010 1412.691436.12 -23.43

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