Nifty Daily For 2nd April 2014

                   Nifty opened with a gap up of 25 points at 6729 and made a high of 6732. On daily charts the market has formed doji, which has implies indecision. There was no confirmation for the shooting star, so it becomes invalid. A gap down opening or a black body candle after two consecutive dojis will provide the confirmation of reversal, but it looks unlikely due to strong global markets. The market is expected to move towards the 6776 levels where the weekly trend line is present. The RBI credit policy was non event as expected. The rates were kept unchanged. Today the market is expected to be trending sideways with positive bias. The entire move from 6100 can be mapped in a perfect channel as shown below, I feel only the breach of this channel will revere the rally from the 5933 lows.

                    The support for nifty is at 6675-6629-6570 and the resistance lies at 6755-6790. Nifty April Future has been trading at 35-36 points premium to the spot. The implied volatility on the Nifty April Options of ATM strike calls were at 13.91 and for puts were at 14.60. India VIX closed at 20.68. PCR for Nifty based on open interest was at 1.19 and PCR for the day based on volumes was at 1.02 for the market.

CASH MARKET:

FII                   3568.87     -     3183.21   = 385.66 Cr.

DII                 1158.87    -      1406.75  =  (247.88) Cr.

 FII DERIVATIVES MARKET: 

In Cr	Buy	Sell	Net
INDEX FUTURES	2159.68	2100.61	59.06
INDEX OPTIONS	11839.60	11746.73	92.86
STOCK FUTURES	3611.07	3521.52	89.54
STOCK OPTIONS	1537.68	1531.30	6.38

STOCKS IN NEWS:**

BPCL, HPCL & IOC: The Oil Ministry has put on hold further diesel price increases, citing a reason that had not prevented it from hiking rates uninhibitedly about a year ago. The Cabinet had in January last year decided that diesel prices should be raised by 40-50 paise a litre every month until losses on the fuel are wiped out,

United Spirits Ltd: Leading bourse National Stock Exchange (NSE) has given its approval to Vijay Mallya-led United Spirits' proposal for transfer of a distillery in Tamil Nadu to Enrica Enterprises.

SpiceJet & Jet Airways Ltd: Jet fuel or ATF price was today cut by 4 per cent and rates of non-subsidised cooking gas (LPG) by Rs 100 per cylinder, reflecting global trends.

Coal India Ltd: State-owned Coal India(CIL) has tweaked the provision of calculating the compensation and incentive under fuel supply agreements models for the non-power consumers like cement, iron and steel.

Reliance Power Ltd: Reliance Power said its 600 MW coal-based power plant at Butibori in Maharashtra is fully operational.

Axis Bank Ltd: The Reserve Bank of India (RBI) said that foreign institutional investors will not be allowed to buy additional shares in Axis Bank Ltd as the total holding by the investors had breached the overall limit of 49 percent of the lender's paid-up capital.

South Indian Bank: The Reserve Bank restricted purchase of shares in South Indian Bank by foreign investors as the prescribed limit reached the trigger level.RBI said the foreign shareholding through Foreign Institutional Investors, NRIs, PIO, Foreign Direct Investment, Global Depository Receipts has reached the trigger limit.

STOCKS IN BAN PERIOD:

NIL

Source:**economictimes.com , nseindia.com

Stock of the day:

ICICI Bank (CMP 1224)

The stock has been reached near its short term support of 1218. It can be bought for the targets of 1244-1260-1275 with the stop loss of  1200.