October 12, 2010

Trade info rom geojit

Markets may open with a flat note ahead of IIP data and one can expect recovery by noon.

sensex (20339)

Sensex has resistance at 20321 and 20550. Support at 20175, 20145 and 20090.

NIFTY (6135)

Resistance at 6141, 6154 and 6166. Support at 6108, 6083 and 6077.

RECOMMENDATIONS

1) KRBL (40)

Resistance is there at 41 above it can test 43, 45 and 48.Support at 39.5 and 37 (Buy at declines for delivery)

2) P&G (2211)

Support at 2197 and 2139 levels (Buy at declines for delivery). Resistance at 2225 above it can test 2295, 2345 and more.

3) RELIANCE INDUSTRIES (1069)

. Support at 1062 and 1053 (Buy at declines). Resistance at 1073 above it can test 1080 and 1099. (Buy at declines)

4) INFOSYS (3074)

Support at 3058 and 3045. Resistance at 3083 and 3095 above it can test 3135 (Buy at declines for delivery).

5) UTV SOFTWARE (536.9)

Support at 530 and 526 levels. Resistance at 539.5 above 545, 548 and 560. (Buy at declines)

DERIVATIVE STRATEGIES

BUY SBI FUTURES AT AROUND 3238

Commentary

The markets had opened on a positive note tracking global markets and moved down from the opening highs but managed to remain above the green line for the day with minor recovery seen in the later part of the day which helped the markets to close in green. In the Asian front, buying interest was seen in metal, auto and energy stocks on speculation that US Federal Reserve may step in with more action to support the economy. Also news came in that China had raised the percentage of funds that banks must set aside as reserves by half a percentage today which is seen as an attempt to drain liquidity in the economy. European stocks also showed positive trend. In the domestic front, the FIIs remained buyers. On the commodity side, Gold after correcting a bit on Friday, recovered from the lower levels and made gains for the day as a hedge against falling currency. Copper too showed positivity during day. Sugar futures were at highs on concerns that supplies from Brazil may be affected due to bad weather. This brought buying interest in sugar stocks in the domestic market. The major trigger for the markets is the quarterly numbers which have started to come out and the majors will start with Infosys on 15th. Nifty will show some consolidation around current levels and depending on the results we may see directive moves. For Nifty the major supports are at 6090 and 6015 while the resistance is there at 6185 and 6225. In midcap space, CMC shot up 18%. Chambal Fertiliser, Rashtriya Chemical, Rei Agro and Nirma went up 7-10% while Indiabulls Financial, Apollo Hospital, Praj Industries, Binani Cement and Radico Khaitan slipped 3.4-4%. In smallcap space, Entegra was locked at 20% upper circuit. Jindal PolyFilm jumped 19%. Geodesic, Garware Poly and Uflex went up 11-15% while Koutons Retail tumbled 10%. JMD Telefilms, LGS Global, Ramsarup Inds and Hind Dorr-Oliver were down 4-8%. Volume slipped below Rs 1 lakh crore mark today; total traded turnover on exchanges stood at Rs 94,003.98 crore. This included Rs 14,442.34 crore from NSE cash segment; Rs 74,818.28 crore from NSE F&O and the balance Rs 4,743.36 crore BSE cash segment.

NEWS BOX

· State-owned NFL on Tuesday said it has cancelled the contract for the 14.7 MW Wind Energy Project in Jaisalmer. The company has not given any reason for the cancellation of the contract but at present company does not have any other wind energy project in hand.

· The surprise announcement by the Rs 4,600-crore Nirma to delist itself is being viewed as a decision taken by a fiercely-private person to keep his company away from the public glare.

· Surya Roshni, the flagship company of Surya Group, has earmarked an investment of Rs 100 crore to produce both pipes and lighting products at Shimoga in Karnataka.

· Coal miner major GUJ NRE on Monday said it would invest $450 million in its coal mines in Australia to take its total annual production capacity to six million tonnes in the next five years, besides creating 150 new jobs.

· Drug firm Vivid Labs on Monday said it has received approval from the government to set up a special economic zone for chemicals and pharmaceuticals at Srikakulam district in Andhra Pradesh.

· The Indian animation industry will grow at a compounded annual rate of 30 per cent to reach a market size of $1.7 billion by 2012 and add over three lakh skilled animators. With over 1.5 lakh skilled animators, it is currently a $1 billion industry.

· Asian Hotels North today informwed that pursuant to its earlier deliberations andevaluations it has decided to participate in a joint venture (JV) in an overseas company. The investee company is in the business of hospitalityconsulting services and holds investment in hospitalitysector.

· Hindustan Construction Company (HCC) has received an order worth Rs 514.1 million from Hindalco Industries. The order is for potline structural steel erectionworks for Aditya Aluminium Project at Sambalpur, Orissa.

· Kilburn Engineering has bagged orders totalling Rs 264.9 million during the quarter July 2010 to September 2010.

FUTURES OPTIONS STATUS

Markets opened on huge gap up with sensex gaining over 200 points.After that Consolidation was seen throughout the day. Selling was seen in Bharti, HCL tech,Axis bank and HDFC Bank.Howvever buying was seen in Sterlite, Reliance, Tata motor, Kotak bank and Rcom.

The Advances to declines ratio was to 1250 2011.Total F&O Turnover in the NSE was 1.75 lakh crores.

The October futures ended flat after touching a high 6192 in the morning. October futures added 8 lakh shares added in open interest. Nifty futures touched a high low of 6136.

Among sectorial indices,BankNifty oct series gained marginally with addition of 259575 shares in open interest. While the CNXIT October series ended flat with 550 shares added in open interest.

On the most active stock futures for october,Tata Motor gained by adding 7.5 lakh shares in open interest.Chambal Fertilizer gained by adding 41 lakh shares in open interest.Godrej industires gained by shedding 2.6 lakh shares in open interes.Moser Baer saw buying with 2.8 lakh shares added in open interest.Bharti declined by adding 11.4 lakh shares.Axis bank declined by adding 3.6 lakh shares.Praj industries declined by adding 15.7 lakh shares in open interest.Biocon declined by adding 2.2 lakh shares.Tulip declined by adding only 2 lakh shares in open interest.

Small and midcap gainers were Gallispat, Entegra,Jindal poly,CMC and Alchem.

Reliance was the most active counter on the NSE with turnover of 628 crores followed by Gallispat and Jindal Poly

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