November 08, 2010

Market may open with an upside gap and is expected to trade higher. Minor profit booking can be seen throughout the day.

Sensex (21004)

Sensex has resistance at 21063, 20243 and 20394. Support at 20881 and 20748.

NIFTY (6312)

Resistance at 6328, 6336 and 6361. Support at 6295, 6286, 6270 and 6244.

RECOMMENDATIONS

1) CIPLA (352.95)

Support at 349.9 and 345. Resistance at 355 if moves up with volumes then it can test 359 and 362. (Buy at declines)

2) ONGC (1379)

The stock has resistance at 1386 above 1405 and more. Support at 1368 and 1359 levels. (Buy at declines)

3) CAIRN (332)

. Support at 328 and 253 (Buy at declines). Resistance at 265.5 above it can test 338, 343 or more.

4) VIDEOCON INDUSTRIES (262)

Support at 258 and 120.85 levels. Resistance at 265.5 above 271 and 278 and more. (Buy at declines).

5) TISCO (623.55)

Support at 618 and 613 levels (Buy at declines). Resistance at 628 if moves up then it can test 631 and 636.

DERIVATIVE STRATEGIES

BUY CAIRN FUTURE AT 328

SELL BPCL FUTURE AT 768

It was indeed a Diwali dhamaka for the Dalal Street with both markets hitting all time high at one point in time. Buying in mahurat trading, strong global cues post Fed’s plan to buy more treasury debt and US October’s same-store sales data and consistent foreign inflow helped the markets to inch closer to an all-time high. India has been seen more than Rs 1 lakh crore in Indian equity markets since last Samavat 2066. Experts believe that flow would continue in Indian markets. US stocks wavered Friday despite data showing the US economy added jobs in October 2010 for the first time in five months as private-sector hiring picked up, as the rise appeared too small to signal a turnaround in a stagnant labor market. The Dow Jones Industrial Average fell 2 points to 11,433 in early trading. The Nasdaq Composite slipped less than a point to 2575. The Standard & Poor’s 500 index edged up 0.1% to 1222. . The US Labor Department said the US economy added 151,000 jobs in October 2010, more than economists expected. The unemployment rate held steady at 9.6% for the third straight month in October 2010. Back home, food inflation eased for a third week in late October 2010, the latest government data showed. The food price index in the year to 23 October rose 12.85% compared with 13.75% rise in the previous week. In smallcap space, Delta Corp shot up 16.26%. Nitin Fire Protection, Parekh Aluminex, Sujana Metal and Nagarjuna Agri were up 8.7-13.7% while Intra Infotech, Borosil Glass, Well Pack Paper, Maharashtra Elektrosmelt and Maharashtra Polybutenes slipped 4-10%.In midcap space, Allcargo Global, Dish TV India, Shriram City, OnMobile Global and Anant Raj Industries rallied 4-6% while AIA Engineering, Sadbhav Engg, Nava Bharat Venture, Whirlpool and Alfa Laval lost 1-1.9%.

· Reliance Industries Ltd (RIL) may lose authorisation for the proposed 1,100-km pipeline from Kakinada in Andhra to Haldia in West Bengal. It may be given, instead, to an Andhra Pradesh state utility, as it has failed to make progress. The Andhra Pradesh Gas Infrastructure Corporation, a joint venture of AP Industrial Infrastructure Corporation and AP Genco, has issued an expression of interest (EoI) to build a pipeline for the 90 km from Kakinada to Vizag.

· GVK Energy, the energy arm of Hyderabad-based GVK Power and Infrastructure (GVKPIL), is close to sealing a private equity deal where 3i India Infrastructure Fund will invest around Rs 1,200 crore in it. The dedicated infrastructure fund, promoted by UK-based 3i, is likely to get around 20 per cent stake in the company. An announcement is likely tomorrow. Actis, the US-based private equity firm, is also known to be planning to invest in the company through the infrastructure fund.

· ABB, providers of power and automation technology services, has bagged an order worth $40 million (Rs177 crore) from PMC Project (I) to supply three new sub-stations for Maharashtra Eastern Grid Power Transmission Company Ltd (MEGPTCL). It has also bagged an order from Powergrid Corporation of India Ltd (PGCIL) worth $32 million (Rs141 crore) for construction of two transmission sub-stations in Gwalior and Indore.

· Silver is sizzling this festive reason, despite having hit record prices this week. The auspicious day of Dhanteras, followed by Diwali, has seen strong sales of the white metal, even as gold purchases have remained robust.

· Siemens AG, Europe’s largest engineering company, said it is close to signing a contract to supply a Chinese city with electric-vehicle charging infrastructure. The company expects to complete a deal this month to provide customised charging posts for one city, Song Xiao, the Shanghai-based president of Siemens China Smart Grid, said in an interview in Shenzhen, China yesterday. He declined to name the city as the deal hasn’t yet been approved by the government.

FUTURES OPTIONS STATUS

Markets opened on a positive note and traded higher.Nifty continued its uptrend. Breath was also positive with 1978 shares advancing and 1299 shares declining. Finally the nifty closed with a gain of 30 point to close at 6312.

The November futures index gained for the day The index added 3lakh shares in open interest. Nifty futures touched a high 6349 and a low of 6316 for the day.

Among sectorial indices, Bank Nifty nov series saw good buying and took the nifty higher. The index added 30950 shares in open interest for the day.CNXIT index gained marginally by adding only 150 shares open interest.

Some stock futures which took nifty higher were, Hindalco gained by adding 3.1 lakh shares in open interest.JP Associates gained by adding 33 lakh shares in open interest. M&M gained by shedding 79500 shares in open interest. The draggers were.RPOWER declined with 1.5 lakh shares added in open interest. Jindal Steel declined by adding only 6000 shares.

Some other F&O gainers were Dish TV,KFA ,On mobile and GMDCL .The losers were DCHL,SR transport ,Grasim and RNRL.

Small and midcap gainers were Northgate, Madras fertiliser, Paral and Delta corp.

Coal India was the most active counter on the NSE with turnover of 1167 crores .

Source: Geojit

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