Yesterday, markets opened on a positive note but lost all gain and closed on a negative note as selling intensified in the last hour of the session. Immediate bigger support for Nifty now comes at 5,985 and break below 5,985 may likely to test 5,925-5,850 levels. Immediate resistance comes at 6,050 and sustaining above will recheck 6,080. Further, aggressive buying in 5,700 to 6,000 put option and writing in OTM calls is indicating that investors are expecting more corrections in the short term.
Indian market is likely to open gap down by 30 point following negative cues from global markets which plunged after China's unexpected credit tightening and by fears that U.S. banks might be on the hook for billions of dollars in souring mortgage bonds. Decline in commodity prices may put pressure on Metal and Oil&Gas stocks. Further, investor's will eye on Q2 results of companies like Canara bank, Yes bank, HCL Tech, Ashok Leyland, and Power Grid which are due today.
Tip for the day
BGR ENERGY (SELL)
RSI is at 31 showing negative crossover indicating correction.
Stochastic is moving in oversold territory showing negative crossover also indicating downside.
Stock is trading below 08 day and 34 day EWMA and showing correction.
MACD is showing bearish crossover.
CMP
Buy/Sell
Target Price
Stop Loss
Support/ Resistance
723.85
SELL
717/710/700
735
692/788
ABG SHIPYARD (SELL)
RSI is at 65 showing negative crossover indicating correction.
Stochastic is moving in oversold territory showing negative crossover also indicating downside.
Stock next support level seems at 270 if its break then stock could fall up to 260.
Wide correction is expected.
The stock has been rising steeply over the past few sessions and the correction in it is long overdue.
CMP
Buy/Sell
Target Price
Stop Loss
Support/ Resistance
305.35
SELL
301/295/290
312
270/326
FIN PIPE (BUY)
RSI is at neutral territory at 68 levels and on the brink of entering into positive territory.
Stochastic is hovering in neutral zone and expecting to show positive crossover.
Stock already crossed 34 Day EWMA and expecting to rise further.
MACD showing positive divergence.
CMP
Buy/Sell
Target Price
Stop Loss
Support/ Resistance
124.50
BUY
126/127/130
120
112/129
ING VYASA BANK (BUY)
RSI is at 66 neutral territory showing positive crossover indicating uptrend.
Stochastic is hovering in neutral zone showing positive crossover suggesting upside.
MACD showing positive divergence.
Today stock has made new candlestick above 34 day EMA which is sign of uptrend.
CMP
Buy/Sell
Target Price
Stop Loss
Support/ Resistance
417.75
BUY
421/428/435
410
371/440
TRADING CALLS SELL IBREAL SL 210 T 190 SELL HDFC SL 740 T 650 SELL CHAMBLE SL 87 T 78 BUY MUNDRA SL 160 T 182 BUY GSPL SL 117 T 133 BUY GODREJ SL 376 T 422 BUY FEDRALBANK SL 444 T 498 SELL SBIBANK SL 3200 T 3030 SELL BOBBANK SL 995 T 935 SELL CANBANK SL 65 T 618 SELL HDFCBANK SL 2424 T 2310 SELL IDFC SL 208 T 190 SELL TCS SL 988 T 945 SELL TISCO SL 60 T 600 BUY TISCO SL 600 T 660 BUY ICICI SL 1096 T 1138 BUY ACC SL 960 T 990 BUY RELCAP SL 809 T 840 BUY TELCO SL 1150 T 1188 BUY HPCL SL 480 T 510 BUY BAHRTI SL 314 T 339 SELL INFOSYS SL 3027 T 2980 SELL LNT SL 1505 T 1465 SELL SESAGAO BLW 360 T 350 SL 365 SELL BOIBANK BLW 520 T 505 SL 525 SELL LIC BLW 1315 T 1290 SL 1320 BUY HINDZINC ABV 1240 T 1265 SL 1230 { NOTE ; ALL LEVEL CLOSING BASE
US markets
US markets plunged as an unexpected rate hike by China, a sharp decline in permits for future home construction and a mixed batch of corporate results weighed on investors' sentiments. Markets started the day on negative note as investors reacted negatively to the news that China has hiked its one-year benchmark deposit rate to 2.50% from 2.25% and the one-year lending rate to 5.56% from 5.31%. The move is being perceived as an effort to slow down the economy. Further, market fell as commerce department showed that permits for new construction fell 5.6% to a 5,39,000 unit pace due to a decline in multi-family units. Market also digested a flurry of mixed earnings reports from corporate heavyweights. Technology stocks declined after Apple's iPad sales numbers fell short of expectations while IBM reported a slowdown in business service signings.
European markets
European markets closed in negative territory as commodity producers retreated sharply after commodity prices fell on China's surprise rate hike. Investors worried that move will slowdown the Chinese economy and would lead to lower demand for commodities. Further, slump in German investor confidence to the lowest level in 21 months also weighed on markets. The ZEW index of economic sentiment fell to minus 7.2 from minus 4.3 in September. Stocks also fell after news of a sharp decline in permits for future home construction in US. Tech shares took a tumble after slightly disappointing results from consumer electronics giant Apple in the US yesterday.
Indian markets (Prev Day)
The domestic bourses witnessed a very volatile session, as late hour selling dragged the benchmark indices deep into the negative terrain after it gained momentum post mid-session. The market opened on an upbeat mood taking cues from the positive Asian indices. The strong closing for the US bourses, on the back of better than estimated earnings from Citigroup and improvement in the housing sector, fuelled the morning sentiment across globe. But soon the gains disappeared and the benchmarks dipped below the baseline. As the day progressed, the market traded in a narrow range before a sudden upsurge took the domestic indices to taste fresh intraday highs. But the rally didn't sustain and the final couple of hours witnessed a sharp cut in the gains. Hefty selling pressure was seen at higher levels and the benchmark Sensex was finally seen closing below the 20,000 mark after crossing 20,300 levels during the session. In the sectorial front, the IT sector was hammered the most as the index lost more than 2%. Besides, the Realty and Metal space also witnessed substantial selling and declined by 1.75% and 1.25% respectively. Both the Nifty and Sensex failed to hold on the session gains. The NSE Nifty closed below the 6,050 mark, while the BSE Sensex ended below the 20,000 level.
Crude oil plunged below USD 80 a barrel in the biggest drop in nearly two months, after China's central bank boosted interest rates for the first time since 2007 to curb inflation in its booming economy. Gold also fell to settle at USD 1,336, wiping out all the gains of the last week.
International News
Housing starts in the US unexpectedly rose by 0.3% in September to an annualized pace of 610,000 units. This result represents the third consecutive monthly increase, following August's 10.5% increase to an upwardly revised 608,000 annualized units.
The People's Bank of China (PBoC) raised its leading benchmark lending rate by 25bps to 5.56% and also its leading benchmark deposit rate by 25bps to 2.5%. However, maturities longer than one year, benchmark lending rates were cut by just 20 bps, while the benchmark deposit rates with maturities longer than a year were raised by substantially more than 25bps.
Coca-Cola Co has reported a higher quarterly profit, helped by volume increases in its North American and international businesses.
Domestic News
The Hinduja Group's cable distribution arm, IndusInd Media and Communications (IMCL) has said that it is looking at raising up to Rs 500 crore over the next 6-18 months to drive digitisation of services and acquisitions.
The Public sector lender State Bank of India (SBI) has earmarked highest ever fresh lending of Rs 300 crore to encourage commercial dairy farm projects in the state.
As per the government's data, India's net direct tax receipts for the first six months of the year grew 19.09% from a year ago, totalling 1.82 trillion rupees.
Currency
Exchange-Rate
1D Chg(%)
1M Chg(%)
USD
44.46
0.45 %
-1.10 %
EUR
61.85
0.65 %
1.11 %
GBP
70.51
0.15 %
-0.23 %
FIIs Activity
Rs. Cr.
MTD
YTD
Equity in flows
4166.30
64466.20
585713.40
Equity Out flows
3350.60
40787.60
477675.10
Net
815.70
23678.60
108038.40
SUPPORT/ RESISTANCE IN CASH MARKET FOR INTRADAY TRADING
Banking Index Benchmark Exchange Traded Scheme (Bank BeES)
NSE
1232.04
1251.03
1219.03
1270.01
1206.01
1283.03
1187.03
BGR Energy Systems Ltd.
NSE
723.85
748.88
709.93
773.92
696.02
787.83
670.98
Bharat Electronics Ltd.
NSE
1775.35
1795.10
1760.30
1814.85
1745.25
1829.90
1725.50
Bharat Forge Ltd.
NSE
370.45
375.68
366.28
380.92
362.12
385.08
356.88
Bharat Heavy Electricals Ltd.
NSE
2502.95
2539.07
2476.52
2575.18
2450.08
2601.62
2413.97
Bharat Petroleum Corporation Ltd.
NSE
707.75
718.15
696.20
728.55
684.65
740.10
674.25
Bharati Shipyard Ltd.
NSE
229.65
233.42
227.32
237.18
224.98
239.52
221.22
Bharti Airtel Ltd.
NSE
327.20
334.13
321.63
341.07
316.07
346.63
309.13
Bhushan Steel Ltd.
NSE
510.70
517.62
506.42
524.53
502.13
528.82
495.22
Biocon Ltd.
NSE
454.95
480.00
422.45
505.05
389.95
537.55
364.90
Chambal Fertilisers & Chemicals Ltd.
NSE
84.60
88.87
82.07
93.13
79.53
95.67
75.27
Federal Bank Ltd.
NSE
457.80
466.47
444.67
475.13
431.53
488.27
422.87
Financial Technologies (India) Ltd.
NSE
1155.95
1180.55
1140.80
1205.15
1125.65
1220.30
1101.05
GMR Infrastructure Ltd.
NSE
54.50
55.47
53.92
56.43
53.33
57.02
52.37
GVK Power & Infrastructure Ltd.
NSE
42.50
43.40
42.00
44.30
41.50
44.80
40.60
India Cements Ltd.
NSE
114.15
116.15
112.95
118.15
111.75
119.35
109.75
India Infoline Ltd.
NSE
114.40
117.40
111.90
120.40
109.40
122.90
106.40
Indiabulls Financial Services Ltd.
NSE
180.50
184.30
178.10
188.10
175.70
190.50
171.90
Indiabulls Power Ltd.
NSE
27.75
28.07
27.57
28.38
27.38
28.57
27.07
Indiabulls Real Estate Ltd.
NSE
205.20
211.18
201.48
217.17
197.77
220.88
191.78
Indiabulls Securities Ltd.
NSE
28.55
29.23
28.13
29.92
27.72
30.33
27.03
Indian Bank
NSE
294.80
301.12
290.37
307.43
285.93
311.87
279.62
Indian Hotels Company Ltd.
NSE
100.40
101.82
99.27
103.23
98.13
104.37
96.72
Indian Oil Corporation Ltd.
NSE
403.35
409.70
399.30
416.05
395.25
420.10
388.90
Indian Overseas Bank
NSE
156.90
159.80
155.00
162.70
153.10
164.60
150.20
LIC Housing Finance Ltd.
NSE
1312.95
1351.93
1289.48
1390.92
1266.02
1414.38
1227.03
Mercator Lines Ltd.
NSE
65.60
67.50
64.00
69.40
62.40
71.00
60.50
NSE Index
NSE
6027.30
6100.18
5981.28
6173.07
5935.27
6219.08
5862.38
Orchid Chemicals & Pharmaceuticals Ltd.
NSE
303.50
312.18
298.13
320.87
292.77
326.23
284.08
Praj Industries Ltd.
NSE
70.45
71.57
69.77
72.68
69.08
73.37
67.97
Television Eighteen India Ltd.
NSE
85.40
86.68
84.38
87.97
83.37
88.98
82.08
Vijaya Bank
NSE
101.90
105.07
99.92
108.23
97.93
110.22
94.77
*LTP stands for Last Traded Price as on Tuesday, October 19, 2010 4:04:25 PM
#1R1 stands for Resistance level 1 @1S1 stands for Support level 1
#2R2 stands for Resistance level 2 @2S2 stands for Support level 2
#3R3 stands for Resistance level 3 @3S3 stands for Support level 3
The levels given above are with respect to previous closing price on the NSE / BSE.
International News
Housing starts in the US unexpectedly rose by 0.3% in September to an annualized pace of 610,000 units. This result represents the third consecutive monthly increase, following August's 10.5% increase to an upwardly revised 608,000 annualized units.
The People's Bank of China (PBoC) raised its leading benchmark lending rate by 25bps to 5.56% and also its leading benchmark deposit rate by 25bps to 2.5%. However, maturities longer than one year, benchmark lending rates were cut by just 20 bps, while the benchmark deposit rates with maturities longer than a year were raised by substantially more than 25bps.
Coca-Cola Co has reported a higher quarterly profit, helped by volume increases in its North American and international businesses.
Domestic News
The Hinduja Group's cable distribution arm, IndusInd Media and Communications (IMCL) has said that it is looking at raising up to Rs 500 crore over the next 6-18 months to drive digitisation of services and acquisitions.
The Public sector lender State Bank of India (SBI) has earmarked highest ever fresh lending of Rs 300 crore to encourage commercial dairy farm projects in the state.
As per the government's data, India's net direct tax receipts for the first six months of the year grew 19.09% from a year ago, totalling 1.82 trillion rupees.
Global Cues:
U.S. stocks tumbled, dragging benchmark indexes to their biggest drop since August, amid concern banks will be forced to buy back soured mortgages and after Apple Inc. forecast profit that missed analyst estimates
*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
