Nifty has been trading essentially flat or range bound for the day. It opened gap up at 19 points at 5627 and made high of the day at 5635 and then started drifting lower. After testing the support of 5600 it kept trading in the range of 10-12 points and kept rising. Once Nifty reached 5630 it got sold off sharply in the last one hour of trading, creating he lows at 5579. The past few day pattern has been, trading in the range and then breaking it on down side. Nifty closed near day's lows, essentially due to FII selling. During the entire decline of the markets FII's are selling huge chunk of their portfolios, both in cash and futures markets. Even the investor friendly norm changes did not create any good will and the efforts of the government failed miserably.
Yesterday I had posted,
"The last half an hour sell off took nifty again below 5600, which is creates doubt about a sustained up move. In order to have a sustained up move nifty now has to
trade above 5655 levels. Nifty is falling in a channel for the entire
month. The upper trend line is around the levels of 5750-5720."
Nifty showed no signs of revival and never even went near the 5655 mark. Even the strong European markets did not help much. The broader markets have been sold off like there's no tomorrow. Many of the quality stocks has been hammered pretty badly. Even a small negative news brings in a huge sell off in the stocks. The Advance-Decline ratio has been weak even during the range bound movement. It is becoming more and more likely that in the near future the markets will test the supports of 5520.
Nifty is trading in the tight range of 5660-5550 and might expire in this price band tomorrow. A directional move can occur post the expiry day. The support for nifty is at 5565-5535-5500 and the resistance lies at 5660-5700-5740. Nifty July Future has been trading at 3-4 points discount to the spot. The implied volatility on the Nifty
July Options of ATM strike calls were at 16.18 and for puts were at
23.68. India VIX closed at 21.07. PCR for Nifty based on open interest
was at 0.85 and PCR for the day based on volumes was at 0.91 for the
market.
Cash Market:
FII 3062.4 - 3610.19 = (547.79) Cr.
DII 1187 - 850.02 = 336.98 Cr.
FII Derivaties Market:
| BUY | SELL | NET | |
| INDEX FUTURES | 5861.92 | 5804.64 | 57.28 |
| STOCK FUTURES | 9131.69 | 8663.74 | 467.95 |
Stocks in news:
CCEA meet today: To consider- National Fertilisers (NFL) divestment
-Proposal to divest 7.64 percent of GOI stake in NFL
- Yes Bank proposal for higher foreign equity
-Yes Bank proposal for up to 60 percent foreign equity via QIP
-QIP for eligible non-residents &/or GDR issue
-Reimbursement of Cotton Corporation losses on MSP operations
Alert: MSP is Minimum Support Price
-Price policy for kharif crops for 2013-14 season
-Fixation of domestic gas prices as per Rangarajan report
Panic in rupee is unwarranted; will correct itself: Finance ministry sources
-FIIs have aggressively bid for G-Secs
Rupee collapse due to defence and crude oil related demands: Govt sources say
-About USD 250-300 million requirement seen today on defence account
-No advance intimation from defence min on dollar needs
-About USD 200 million requirement from oil importers seen yesterday
-Yesterday’s total dollar demand was at about USD 1.2 billion
-Additional demand of USD 400 million seen in forex markets yesterday
-Speculations on exchange rate added to rupee collapse yesterday
-All factors played out simultaneously
Coal India board approves fuel supply agreement (FSA) with NTPC ; to sign pact within 2 Weeks
-Coal India says contentious issues with NTPC over fuel supply resolved
Religare Enterprises
-Promoters to sell 22.75 percent stake in company to US based bank
-Promoters stake sale to meet RBI norms for banking licence
-Customers Bancorp of US picks 6.1 percent in company for USD 51 million
-To issue USD 28 million warrant, USD 1 million shares to Customers Bancorp
-Promoters to sell USD 22 million worth shares to Customers Bancorp
-To also ink business alliance pact with Customers Bancorp
Oil India says
-Plan to fund Mozambique buy via overseas bonds
-Rupee depreciation not to impact Mozambique deal
-Every dollar increase in USD 4.2 to boost topline by Rs 400 crore
-Every dollar increase in USD 4.2 to boost bottomline by Rs 250 crore
-Gas price of USD 6.7 to boost topline by Rs 1,000 crore
-Gas price of USD 6.7 to boost bottomline by Rs 625 crore
-Gas price of USD 6.7 to impact EPS by Rs 10/share
Inter ministerial group: PTI
-Recommends issuing showcause notices to 40 more coal mines
-Companies issued showcause notices are Jindal Steel , Hindustan Zinc and Ultratech Cement
-Showcause notices issued for delaying production
Alert: Coal ministry had issued showcause notice to 30 coal mines earlier this month
Sasan Power:
-CERC directs company to retest 101 MW capacities
-Fresh testing of SPL unit to achieve tested capacity
-CERC order based on WRLDC petition
Alert: WRLDC is Western Regional Load Despatch Centre
Alert: WRLDC had petitioned CERC against Sasan Power
-Fresh testing for company units in accordance with PPAs
-CERC refused to accept Sasan’s earlier COD of March 31, 2013
-CERC terms power generated before COD as ‘infirm’ power
Alert: Infirm power is electricity generated prior to commercial operations
Alert: COD is Commercial Operational Date
Alert: Sasan Power is Reliance Power UMPP
Alert: Sasan Power has a capacity of 4,000 MW
Reliance Power Says
-Sasan Power to move appellate tribunal to quash CERC order
-WRLDC has no locus standi to question COD
-WRLDC plea listed on May 23 for hearing at CERC
-Hearing was confined to maintainability
-Surprised CERC order dealt with merits of IE certificate
-Sasan Power or IE was not heard, order ex-parte
-WRLDC order violative of justice, not tenable in law
CCI meet today to consider ITC pulp project: Sources
Alert: CCI is cabinet committee on investments
-ITC requires 445 hectares of forest land in Andhra Pradesh
-ITC to expand plant to 2 lakh tonne per annum
-Initial capex of Rs 3,500 crore planned over 5 years
-Forex savings worth USD 260 million per annum expected
Ex-Dividend - HDFC Bank AGM Rs 5.5/share
- HDFC Rs 12.5/share
- Century Enka Rs 6/share
- Ingersoll Rand Rs 3/share
- Sobha Developers Rs 7/share
Other stocks and sectors that are in news today:-Lenders of Winsome Diamonds refuse recast, company owes Rs 4000 crore to consortium of 15 banks FE
-French Company Vicat to buy Shriram Group's cement unit for Rs 1000 crore TOI
- Magma Fincorp makes an application to RBI for banking licence
- Shree Ganesh Jewellery board to meet today to consider issue of preferential shares
Stocks In Ban Period:
| PUNJLLOYD |
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