Nifty Daily For 10th April 2014

                   Nifty opened with a gap up of 31 points at 6724 and made a high of 6733. After testing the first resistance market went down the support level of 6703. The market then bounced back sharply to close 100 points up at 6303 levels. The highest closing basis level. The up move after testing the mere 38.2% of Fibonacci retracement indicates the strength of the up move. On the short term hourly charts market has broken out of the rounding bottom formation. The target for which lies at 6920. However the RSI index shows that the market has reached near a resistance and hence the market is expected to test 6777 levels, before moving up.  

                    The support for nifty is at 6774-6714-6650 and the resistance lies at 6820-6848-6900. Nifty April Future has been trading at 39-40 points premium to the spot. The implied volatility on the Nifty April Options of ATM strike calls were at 15.49 and for puts were at 12.58. India VIX closed at 26.9175. PCR for Nifty based on open interest was at 1.17 and PCR for the day based on volumes was at 1.08 for the market.

CASH MARKET:

FII                   5347.46     -      4303.6     = 1043.86 Cr.

DII                   1576.68     -     2040.46    =  -463.78 Cr.

FII DERIVATIVES MARKET: 

In Cr.	Buy	Sell	Net
INDEX FUTURES	1689.04	1568.08	120.96
INDEX OPTIONS	12088.69	10614.64	1474.05
STOCK FUTURES	3495.59	3615.01	-119.42
STOCK OPTIONS	1536.58	1539.79	-3.21

CORPORATE ACTION:

 

Company	Purpose	Ex-Date	Record Date
Gulf Oil Corporation Limited	Interim Dividend - Rs 2.20/- Per Share + Special Dividend - Re 0.30/- Per Share	10-Apr-14	14-Apr-14
State Bank of Mysore	Interim Dividend - Rs 3/- Per Share	10-Apr-14	12-Apr-14
Honeywell Automation India Limited	Annual General Meeting / Dividend - Rs 10/- Per Share	10-Apr-14	-
Foseco India Limited	Annual General Meeting / Special Dividend - Rs 12.50/- Per Share + Final Dividend - Rs 3/- Per Share	10-Apr-14	-

STOCKS IN NEWS:**

Financial Technologies (India): FTIL is learnt to have received non-binding bids for its stake in MCX from around a dozen domestic and international companies like BSE, Kotak, Warburg Pincus, Deutsche Borse, CME group and the like.

The company is being advised by JM Financial, which sources say is expected to take stock of the expressions of interest by the week-end or early next week, before shortlisting prospective bidders.

MCX: Multi Commodity Exchange of India today said it has decided, for the time being, not to go ahead with its controversial preferential allotment issue. The board, at a meeting, decided not to go ahead with the controversial preferential allotment of shares issue, for the time being, the Jignesh Shah-promoted exchange said in a statement here.

SBI: State Bank of India, the country's largest lender, is set to raise $750 million to $1 billion through bond sales, reviving overseas fund raising by Indian companies amid rising confidence in the economy which seems to have put the worst behind.

Torrent Pharma & Elder Pharma: Fair trade regulator CCI has approved Torrent Pharma's proposed Rs 2,000 crore acquisition of Elder Pharma's formulations business in India and Nepal, saying that the deal does not raise any competition concerns.

Ranbaxy Laboratories Ltd: In what might seem like ironic timing, Ranbaxy saw some good news from the US drug regulator just days before the announcement of its acquisition on Monday by Sun Pharmaceutical in a $4-billion deal inclusive of debt.

HDFC Bank Ltd: The government's approval to the proposal of HDFC Bank for raising overseas shareholding limit to 67.55 per cent may get delayed as Commerce and Industry Ministry is scrutinising all foreign investments made in the bank.

Man Industries: The Company announced that it has bagged orders worth Rs 700 crore. Following this, according to the pipe major, its order book stands at Rs 1,200 crore.

Ruchi Soya Industries: FMCG firm Ruchi Soya launched its refined sunflower oil "Sunrich" in Tamil Nadu, eyeing 15 per cent of market share.

NTPC: State-run power producer NTPC has settled the dues of two Coal India subsidiaries, bringing to a close a protracted tussle over quality of fuel the state-run miner was providing.

STOCKS IN BAN PERIOD:

HDIL

L&TFH

Source:**economictimes.com , nseindia.com

Stock of the day:

Ranbaxy (CMP 467)
The stock is in a steady up move for past few days on the news of its acquisition by Sunpharma. It has moved into strongly over the past few days. The stock is expected to move higher till the clear outline of the acquisition is out. Thus it can be bought with stop loss of 460 for the target of 475-485 levels.

Nifty Daily For 09th April 2014

                   Nifty opened flat and soon made a high of 6725 and tested lower trend line of the rising channel. The market then tumbled down to the levels of 6650 levels. The 38.2% of the Fibonacci retracement acted as support and the market bounced back to close near the opening. Thus on the daily charts it has formed a doji. This indecision on the back of the on going Loksabha elections. This is in line with my expectation. As long as 6776 remains intact, the market is expected to remain range bound. On the 120 minute charts the market has formed a bullish engulfing pattern. Thus a pull back can be expected in the short term till 6720-6733 levels.

 

                    The support for nifty is at 6650-6603-6563 and the resistance lies at 6736-6776-6820. Nifty April Future has been trading at 41-42 points premium to the spot. The implied volatility on the Nifty April Options of ATM strike calls were at 13.65 and for puts were at 11.71. India VIX closed at 24.9525. PCR for Nifty based on open interest was at 1.17 and PCR for the day based on volumes was at 1.09 for the market.

CASH MARKET:

FII                   3591.96    -      2888.25  = 703.71Cr.

DII                  689.84     -       1771.2   =(1081.36)Cr.

FII DERIVATIVES MARKET: 

In Cr.	Buy	Sell	Net
INDEX FUTURES	1510.94	1412.59	98.35
INDEX OPTIONS	9827.73	10233.50	-405.77
STOCK FUTURES	2739.30	3183.23	-443.92
STOCK OPTIONS	1174.85	1181.52	-6.68

CORPORATE ACTION:

Company	Purpose	Ex-Date	Record Date
State Bank of Travancore	Interim Dividend - Rs 2.50/- Per Share (Purpose Revised)	9-Apr-14	10-Apr-14

STOCKS IN NEWS:**

Suzlon Ltd: Wind turbine maker Suzlon Group has signed an loan agreement worth Euro 850 million with a consortium of banks for funding its working capital requirements and expansion plans.

Maruti Suzuki Ltd: In the biggest-ever auto recall issued for a single model in the country, market leader Maruti Suzuki India is expected to soon issue a recall notice for around 1.5 lakh units of the new Swift Dzire compact sedan, said media reports.

Tata Power Ltd: The country's electricity regulator's decision to compensate Tata Power for its higher costs has been challenged by Rajasthan and Punjab governments before the Appellate Tribunal for Electricity while Maharashtra and Haryana are also expected to file their petitions soon.

Coal India Ltd: State-owned miner CIL produced 462 million tonnes coal in the just-concluded 2013-14 fiscal, missing the target of 482 MT. Coal India Ltd, which accounts for over 80 per cent of the dry fuel's domestic production, has been drawing flak for missing production targets.

Alstom India Ltd: To consider sale of auxiliary components business to Indian entity. ALSTOM India has announced that on 07 April 2014 the Company has received a letter from Alstom Finance B.V.

GVK Power Ltd: Indian conglomerate GVK Power & Infrastructure Ltd and Australia's richest woman on Tuesday were ordered to meet strict environmental conditions over water conservation before developing a coal mine in the arid Australian Outback estimated to cost $10 billion.

Tata Steel Ltd: Tata Steel is selling a unit of its international operations, specifically the business in New Zealand and Pacific Island for NZ$ 27.5 million or Rs 143 crore, to a Kiwi company, Steel and Tube, as part of its restructuring strategy.

ABB: Power and automation technologies provider ABB has bagged $ 18 million worth order from Power Grid Corporation to construct a 400 kV gas-insulated switchgear (GIS) substation at Kolhapur in Maharashtra.

Piramal Enterprises: The company has inked a pact with Merisant India to distribute the company's artificial table-top sweetener brand, Equal, in the country. Piramal Enterprises has partnered with Merisant India for an exclusive sales and distribution partnership in the country for its artificial table-top sweetener Equal, Piramal Enterprises said in a statement.

Yes Bank Ltd: The Bombay High Court has asked the co-promoters of Yes Bank, Rana Kapoor and Madhu Kapur, to amicably settle their dispute over the right to nominate directors.

STOCKS IN BAN PERIOD:

HDIL

L&TFH

Source:**economictimes.com , nseindia.com

Stock of the day:
Maruti Suzuki 

The stock has been in a steady down move after hitting the all time high of 1980. On the hourly charts the stock has formed bullish harami along with confirmation. Thus the stock can bought for the target of 1920-1940 stop loos of 1870.

Weekly Nifty For 7th - 11th April 2014

                 As mentioned in the Nifty Daily for 4th April 2014 the market tumbled down to close below the 6700 levels. Market has been moving up for past eight sessions and saw the last two days of week profit booking from investors. The market has given a 6 year consolidation breakout and has a very big target. Hence the declines provide good investment opportunity.
                Nifty opened the week at 6723, made a high of 6776, low of 6662 and closed the week at 6694. Thus the Nifty closed the week with a minor loss of 1 point. On the weekly charts, Nifty has formed a small black bodySpinning Top which is a neutral formation. On the daily charts it has  formed an opening Black body Marubuzo which indicates bearishness. Hence both daily as well as weekly charts suggest a pause in the ongoing rally with a slight bearish bias. This situation is likely to prevail till the elections, with nifty moving in a broad range.
                 This week the market has given a six year ascending triangle breakout on the monthly charts. The target for which lies at 10470. Last week, market completed a Bullish Flag pattern when Nifty closed above 6560. The pattern has a potential target of at least 6910 and on the higher side 7180. These targets are likely to be achieved as long as Nifty stays above 6432.

                The market has left behind a Bullish Upward Gap at 6413-6403. This Bullish Gap will provide a strong support as it has been tested when market rallied from 6432 lows to 6777 highs. This Bullish Gap is a Measuring Gap and as per Gap theory the target is at 6886.
On the weekly line charts the entire move from the 4531 levels till 6777 can be seen to be perfectly channelized.  The rising channel be nature has bearish implications. It can also be seen to contain a rising wedge formation with bullish bearkout given last week inside the channel. The target lies at 7325. I expect the market to consolidate in the upper trendlines of these two patterns i.e. 6777 and 6570 levels.

                Current rally has started from a low of 5933. Thus a breach of  6255 (61.8% of Fibonacci retracement from 6777 till 5933) will reverse the current bullish rally. This week, Nifty managed to remain above the short term average of 20dma (6589), the medium term average of 50dma (6325) and the long term average of 200dma (6058). Thus the trend in the short term, the medium term and the long term timeframe continues to remain bullish.
                MACD and ROC are both positive and continue with its Buy signal. RSI @ 70 continues to remain overbought territory since last two weeks. MFI @70 indicates positive money inflow for the market. Stochastic Oscillator is in overbought zone and has signaled a Sell as %K went below %D. ADX @ 42 has matured, suggesting that the uptrend remains very strong. The Directional Indicators continue in Buy mode as +DI continues to remain above -DI. OBV continues in Buy mode making higher top higher bottom formation. Both the indices continue with Buy signal on Bollinger Band. Since the Oscillators are in overbought territory, one can expect some weakness in the short term and if that happens, then one should use that as an opportunity to buy into the market.
                 The Nifty O.I. PCR is at a level of 1.31 which implies prevailing bullish bias in the market. For the April series, highest Open interest build up is seen in 6600 Put and 6900 Call. This suggests that the market trading range at 6600 levels and 6900 levels.

STOCK OF THE WEEK:
IRB Infra

The IRB infra has broken out of a falling channel on the weekly charts as shown above. The pattern target lies at 178. The stock can bought till the levels of 106 from medium term perspective for the target of 119-135.45-150 with stop loss of 98.