Nifty Daily For 7th May 2014

                   Nifty opened with a gap up of 20 points at 6719 and made a high of 6743. The market after opening gap up went down to test 6700 levels. As per tuesday daily report the 6700PE provided the support and markets bounced to 6720. The market is failing to sustain the morning gains, which is a cause of concern for the Bulls. On the intraday charts the market is making a rising wedge, with higher top & higher bottom formation. The entire pattern from the 6869 high can be termed as Bearish Flag Pole pattern. The RSI has to move above the 53 levels and the price has to close conclusively above the 6730 level on hourly charts, for the markets to move up towards 6790-6800 level.

                    The support for nifty is at 6700-6681-6650and the resistance lies at 6741-6780-6820. Nifty April Future has been trading at 31-32 points premium to the spot. The implied volatility on the Nifty April Options of ATM strike calls were at 35.1 and for puts were at 37.05. India VIX closed at 33.2675. PCR for Nifty based on open interest was at 1.13 and PCR for the day based on volumes was at 0.76 for the market.

CASH MARKET:

FII               1702.11  -   1656.18   =  45.93    Cr.

DII              1352.01  -   1407.74    =  -55.73    Cr.

FII DERIVATIVES MARKET:

In Cr.	Buy	Sell	Net
INDEX FUTURES	788.94	1233.37	-444.43
INDEX OPTIONS	4809.54	5444.89	-635.35
STOCK FUTURES	1824.72	2019.25	-194.53
STOCK OPTIONS	598.06	573.01	25.04

CORPORATE ACTION:

Company	Purpose	Ex-Date	Record Date
Sasken Communication Technologies Limited	Interim Dividend - Rs 3/- Per Share	7-May-14	8-May-14
Kitex Garments Limited	Annual General Meeting/Dividend Re 1/- Per Share	7-May-14	-

STOCKS IN NEWS:**

Wipro Ltd: Wipro Ltd, a leading Information Technology, Consulting and Outsourcing company today announced that it has signed a partnership with Axiom Software Laboratories Inc.

Opto Circuits Ltd: The management informed the exchanges that its board has approved the proposal to raise funds for the Company and/or for its Indian/Overseas Subsidiaries by way of issue of securities, including Global Depositary Receipts (GDRs) and or American Depository Receipts (ADRs) convertible into equity share.

Titan Industries Ltd: Titan Company Ltd today reported 11.6 per cent increase in net profit at Rs. 206.44 crore for the fourth quarter ended March 31, 2014. The company had reported net profit of Rs. 184.97 crore in the corresponding quarter a year ago.

TCS & Infosys Ltd: Domestic firms including TCS , Infosys and Wipro are vying for Bharti Airtel's IT services contract said to be worth $1-2 billion, which is likely to close soon.

Essar Oil Ltd: Essar Oil's shareholders have accepted the proposal to acquire a group company and making investments in another at its extraordinary general meeting on Tuesday, the company informed the bourses.

BPCL: Bharat Petroleum Corp Ltd, India's second-biggest state refiner, plans to invest Rs 1,419 crore in replacing an old crude processing unit at its 12 million tons a year Mumbai refinery by May 2015.

NMDC Ltd: After keeping prices unchanged for two months, state-owned NMDC has slashed prices of iron ore lumps, considered high grade due to rich iron content, by Rs 200 per tonne in May due to continuing weak demand.

JSPL Ltd: O P Jindal Group's chairperson emeritus and minister for urban local bodies with the Haryana government Savitri Jindal on Tuesday inaugurated the 810 Mw captive power plant (CPP) of Jindal Steel & Power Ltd (JSPL) at its steel making site at Angul, said media reports.

Torrent Pharma Ltd: The Bombay High Court has directed Torrent Pharmaceutical to deposit money owed by Elder Pharmaceuticals to lenders in the court in a case relating to non-repayment of loans by the Mumbai-based Elder.

STOCKS IN BAN PERIOD:

RELCAPITAL

Source:**economictimes.com , nseindia.com

STOCK OF THE DAY:

Reliance Capital:

The Stock has been in a down trend after making the top of 388. The Fibonacci Retracement from 304 to 388 provides the support of 336 as 61.8% level. The 50DMA lies at 339 .Thus the stock is near a confluence of support. The RSI is also near the support of 40% level. The stock can be bought with stop loss of 332 for the target of 347-355-361.

Nifty Daily For 6th May 2014

                   Nifty opened with a gap down of 13 points at 6681 and made a high of 6741. In the first half of the session the market had gained 47 points, but lost all gains towards the end of second session. On the daily charts the market has formed a bullish hammer. After five days of steady decline the market closed in green for the first time on the back of good earnings. The market has not broken the low of 6656 providing clear indication that market is indicating a broadening formation. If this is the case then the high will be broken easily. I feel that as long as 6656 is intact the market can see the 6800 levels. The 6700PE has added more than 3 lacs in open interest on Monday, indicating a strong support.

                    The support for nifty is at 6694-6656-6620 and the resistance lies at 6725-6757-6781. Nifty April Future has been trading at 32-33 points premium to the spot. The implied volatility on the Nifty April Options of ATM strike calls were at 35.63 and for puts were at 37.11. India VIX closed at 34.1875. PCR for Nifty based on open interest was at 1.05 and PCR for the day based on volumes was at 0.95 for the market.

CASH MARKET:

FII                   2237          -     1957.14   = 279.86 Cr.

DII                  1065.17      -     1289.69   = -224.52 Cr.

FII DERIVATIVES MARKET: 

In Cr.	Buy	Sell	Net
INDEX FUTURES	1582.98	1496.99	85.99
INDEX OPTIONS	5393.74	6211.64	-817.90
STOCK FUTURES	2299.30	2528.02	-228.72
STOCK OPTIONS	819.77	826.25	-6.48

CORPORATE ACTION:

Company	Purpose	Ex-Date	Record Date
Gateway Distriparks Limited	2nd Interim Dividend Rs.3/- Per Share (Purpose Revised)	6-May-14	7-May-14
Godrej Consumer Products Limited	Fourth Interim Dividend - Rs 2.25/- Per Share (Purpose Revised)	6-May-14	7-May-14
Indiabulls Housing Finance Limited	Fourth Interim Dividend - Rs 9/- Per Share	6-May-14	7-May-14
Indiabulls Real Estate Limited	Third Interim Dividend - Rs.1/- Per Share	6-May-14	7-May-14
Federal-Mogul Goetze (India) Limited.	Annual General Meeting	6-May-14	-

STOCKS IN NEWS:**

Reliance Capital Ltd & MCX: Raising fresh concerns over Multi Commodity Exchange's "umbilical dependence" on Jignesh Shah- led FTIL, the bourse's main suitor Reliance Capital has asked regulator FMC to annul all agreements between MCX and its erstwhile promoter.

Idea Cellular & Bharti Airtel Ltd: GSM operators Idea Cellular, Vodafone India and Bharti Airtel have resumed offering third generation (3G) services on each-others networks, after the Telecom Disputes Settlement and Appellate Tribunal cleared the services last week.

Jet Airways Ltd: A change of government in India will not affect Etihad's equity holdings in Jet Airways, chief of the Gulf carrier has said, expressing "full confidence in the Indian process".

United Bank of India: The troubled state-run United Bank of India has announced a dramatic turnaround in its fortunes as three months of focused recovery of bad loans and adjustment of software issues has helped it post a Rs 469 crore net profit after recording the worst earnings in the December quarter.

Canara Bank: State-owned Canara Bank recorded 15.8 per cent decline in net profit at Rs 610.83 crore for the fourth quarter ended March, 2014.

Emami Ltd: FMCG major Emami today posted an 18.26 per cent rise in its consolidated net profit at Rs 111.15 crore for the fourth quarter ended March 31, 2014 on the back of good performance in domestic and international markets.

Tube Investments Ltd: Murugappa Group company Tube Investments of India Ltd reported a marginal increase in its consolidated net profit at Rs 121.10 crore for the fourth quarter ended March 31, 2014.

Piramal Enterprises Ltd: Piramal Enterprises posted a consolidated net loss of Rs 311.35 crore for the fourth quarter ended March 31, 2014, due to higher finance costs. The company had posted a net loss of Rs 200.41 crore during the same period of previous fiscal. 

STOCKS IN BAN PERIOD:

RELCAPITAL

Source:**economictimes.com , nseindia.com

STOCK OF THE DAY:

Canara Bank:

The stock has been forming a Inverted Head & shoulders Pattern for the past 6 months. The pattern breakout with good volumes has occurred on the daily charts. The target for the pattern is at 370 with stop loss of 260. The target is a medium term with possible completion time of 3 months. For short term buy the stock at cmp 304 and on the declines till 294 with a stoploss of 285 for the target of 320-361-370.

Weekly Nifty For 5th-9th May 2014

    The market corrected last week after the spectacular rally and more than two weeks of consolidation. The fall took support at the strong support zone of 6650-6665. The correction will intensify as and when the support is breached further correction will take place.
    At the same time the Nifty opened the week at 6778, made a high of 6786, low of 6656 and closed the week at 6694. Thus the Nifty closed the week with a loss of 88 points. This week Nifty has completed a Bearish Engulfing pattern on weekly charts which is a bearish reversal pattern, with the weekly body being an Opening Black body Marubuzo. On the daily charts, Nifty has formed a small black body candle which can be an Inside day. Thus both daily as well as weekly charts suggest a continuation of bearish bias in the near term.
    The Fibonacci retracement of the move from 6432 to 6869 has support at 6702-6651-6599. The 50% Retracement level coincides with the intermediate bottoms at 6665 & 6650. Thus the market has a strong Support Zone between 6665-6650. If and when this support zone is breached conclusively the correction of higher degree i.e. of the move 5933 to 6869 will start. The relevant Correction levels for the 5933-6869 move are 6512-6401-6291.
             Nifty has completed a Bullish Flag pattern when Nifty closed above 6562. The pattern has a potential targets lies at 6915 and 7190. These targets remain valid till Nifty trades above the intermediate low of 6432. The market has a Bullish Upward Gap at 6413-6403. This Bullish Gap has been tested when the markets moved from 6432 to 6869. Thus on any correction this gap will act as strong support. As per the Gap theory this Measuring Gap provides the target of 6886, Which has been more or less been achieved this week. The market has completed a six year consolidation on the monthly charts. The potential target of this pattern at 10480 remains valid till 6350 is not breached conclusively. On the long term investing front the market is buy on dips. This rally started from a low of 5933 and hence this bullish rally remains valid till the market stays above the 5933 levels.
    Nifty has closed below the short term average of 20dma (6749), however it continue to remain above the medium term average of 50dma (6529) and the long term average of 200dma (6133). Thus the trend in the short term has turned bearish whereas the trend in the medium term and the long term time frame continues to remain bullish. The 61.8% retracement of 5933-6869 move at 6512 and the 50DMA for a strong confluence of support.
    RSI @51 has reduced and is now just bearly hanging by its teeth to the equilibrium line. MFI @42 has dropped below the center line suggesting money flowing out of the market. Stochastic Oscillator %K is in Sell mode as it is below %D. ADX @27 has reduced suggesting that the uptrend has lost lot of its strength. The Directional Indicators are in Sell mode as +DI has gone below -DI. OBV too has started making lower top lower bottom formation. Buy signal in Bollinger Band now stands cancelled as the prices have closed below the mean of Bollinger Band. Thus Oscillators are suggesting a bearish bias in the near term.
     Open Interest Put Call Ratio O.I.PCR for the May series is at a reduced level of 1.14 which indicates the market is now in a balance. Highest Open interest build up is seen at 7000 Call and 6500 Put. This suggests that the market expects a trading range with support at 6500 levels and resistance around 7000 levels. Friday saw strong Put build up in 6400 strike. This suggests that the zone between Nifty 6500 to 6400 is likely to act as strong support.

Stock of the Week:
 Jain Irregation:

The stock has been moving in a steady range of 45 and 75 range for the past 15 months. As shown above the stock has formed a Inverted Head & Shoulders pattern on the weekly charts. The breakout appears on the back of large spurt in the volume. The dormant RSI has also broken past its resistance of 60 levels. The stock should be bought with stop loss of 69 for the medium term target of 105. For short term the stock can be bought on declines to 75 with the 71.5 as stop loss and 95-100-105 as target.

Nifty Daily For 2nd May 2014

                   Nifty opened with a gap up of 7 points at 6725 and made a high of 6780. However once the markets reached near the strong resistance of 6780 the market tumbled. The strong support of 6700 was breached easily and the 6650 support was tested. This pushed the market up 6718 levels but failed to help it close above the crucial psychological 6700 levels. The market looks to be forming a broadening formation on the daily charts as long as the 6656 lows are respected, it can go up. On the short term 120 minutes charts the market has broken the rising channel. The channel target is at 5570. On daily charts nifty has formed bullish hammer. A confirmation is necessary in the form of a gap up opening or a white body candle.

                    The support for nifty is at 6656-6595-5414 and the resistance lies at 6720-6757-6790. Nifty April Future has been trading at 44-45 points premium to the spot. The implied volatility on the Nifty April Options of ATM strike calls were at 28.85 and for puts were at 32.12. India VIX closed at 30.5925. PCR for Nifty based on open interest was at 1.01 and PCR for the day based on volumes was at 0.94 for the market.

CASH MARKET:

FII                   4444.92     -     3990.44    = 454.48 Cr.

DII                  1329.06      -     1322.6     =  6.46 Cr.

FII DERIVATIVES MARKET: 

In Cr.	Buy	Sell	Net
INDEX FUTURES	2686.25	2953.33	-267.08
INDEX OPTIONS	10076.49	10181.13	-104.64
STOCK FUTURES	3475.63	3424.92	50.71
STOCK OPTIONS	1265.18	1274.98	-9.80

CORPORATE ACTION:

Company	Purpose	Ex-Date
TVS Motor Company Limited	Second Interim Dividend - Re 0.75/- Per Share (Purpose Revised)	2-May-14
Castrol India Limited	Final Dividend - Rs 3.50/- Per Share	2-May-14

STOCKS IN NEWS:**

Bharti Airtel Ltd: Bharti Airtel could raise basic call rates for the first time in five years as it battles increasing input costs, a move that would make it the second major telco to do so after Reliance Communications raised them for prepaid users last month.

MCX Ltd: Manoj Vaish has resigned as Managing Director and Chief Executive Officer of the country's leading commodity exchange MCX exactly three months after joining the bourse, citing health reasons.

Reliance Industries Ltd: Reliance Industries has asked Oil Ministry to announce a new natural gas price immediately after polling ends on May 12, saying this was necessary to avoid irreparable loss to all parties, including the government.

Piramal Enterprises & Shriram City Union Finance: Piramal Enterprises, promoted by Ajay Piramal, proposed to acquire 9.99 per cent stake in NBFC firm Shriram City Union Finance for about Rs 790 crore. Piramal Enterprises has agreed to acquire 65.8 lakh shares for cash on preferential basis at a price of Rs 1,200 per share of Shriram City Union Finance.

IDBI Bank Ltd: State-run IDBI Bank reported 7 per cent drop in net profit at Rs 518 crore for the March quarter on higher provisioning, which jumped 28 per cent to Rs 1,332 crore.

KEC International Ltd: EPC firm KEC International reported a consolidated net profit of Rs 34.35 crore for the quarter ended March 31, 2014, as against a net loss of Rs 13.93 crore in the corresponding quarter of the previous fiscal.

M&M Ltd: Automaker Mahindra & Mahindra today reported 12 per cent decline in total sales at 36,274 units in April. It had sold 41,432 units in the same month last year, the company said in a statement.

Sesa Sterlite Ltd: Iron ore producer Sesa Sterlite Ltd said on Thursday it will not lay off 1,017 employees who were sent notices in January following a plan by the state of Goa to frame what it called a "transparent mining policy".

Maruti Suzuki India Ltd: The country's largest carmaker, today reported 11.4 per cent decline in total sales in April to 86,196 units, against 97,302 units in the same month last year.

SpiceJet & Jet Airways: Jet fuel or ATF prices were cut by 1 per cent, the second reduction since April, after a decline in international rates. The price of aviation turbine fuel (ATF) in Delhi was lowered by Rs 766.34 per kilolitre, or 1 per cent, to Rs 71,033.87 per kl, according to Indian Oil Corp.

IFCI: Infrastructure financing firm IFCI has reduced its benchmark lending rate by 0.5 percentage points to 12.20 per cent with effect from Friday.

SBI, UCO Bank: State Bank of India is trying to sell about Rs 2,000 crore of bad loans to asset reconstruction companies, reflecting mounting pressure from stressed assets. UCO Bank wants to offload Rs 1,000 crore of outstanding loans.

STOCKS IN BAN PERIOD:

NIL

Source:**economictimes.com , nseindia.com

STOCK OF THE DAY:

SpiceJet:

The stock has been moving after hitting the intermediate top of 17.9 and has reached the 50DMA at 14.99. This is the first time the medium term average is being tested. It is expected to provide strong support and move stock up towards 17.7 levels. The RSI is also near the support level of 40%. It can be bought for the target of 15.95-16.55-17.05 with stop loss of 14.55.