Morning Bells (3 Apr 13)

Good Morning Friends.

Being a good person is like being a Goal Keeper, no matter how many goals we save. People will always remember only the one we MISSED.

I love this quote very much because in this materialistic world human nature is like that only. I remember that few months back when my 2-3 calls went wrong, some of advantage takers on MCB started arguing for failed calls but that time most of follower kept them aside and forgot how many profitable calls were made by me. I didn’t take it otherwise as I know its human nature.

The Indian equity market ended with smart gains for the fourth straight trading session on Tuesday amid all round buying witnessed in the scrips across the sectors. In fact, the broader outperformed the benchmark indices. Both the S&P BSE Mid-Cap and the Small-Cap indices gained 1.5% and 2.2% respectively.

Gainers –

RIL, Infosys, TCS, Wipro, Sterlite Inds, Hindalco Inds, Maruti Suzuki, Dr Reddys Lab, Tata Motors, Gail India, NTPC, Tata Steel, SBI and ONGC were among gainers in Sensex and Nifty. 

Losers –

Bharti Airtel, Hindustan Unilever, Hero MotoCorp, Bajaj Auto, Hero MotoCorp, Tata Power and HDFC were among losers in Sensex and Nifty.

Domestic Front –

Ambani Bro -

Mukesh Ambani-led Reliance Jio Infocomm and younger brother Anil’s Reliance Communications have signed an Rs 12 billion agreement. The deal -- a first between the two siblings since they parted ways in 2005 – will enable Mukesh’s firm to use R-Comm's fiber optic network to facilitate the rollout of 4G services.

There was huge speculation on whether Mukesh’s company would set up their own network. Market rumors of him likely to bailout the debt-ridden brother’s company led to a rally in R-Comm.

The deal gives Reliance Jio Infocomm access to R-Comm’s 1.2 lakh km inter-city fiber optic network for rolling out its state-of-the-art 4G services. R- Comm in turn gets reciprocal access to any future optic fiber infrastructure built by Reliance Jio Infocomm.

NSE to remove price band for 6 companies -

National Stock Exchange is planning to remove price bands from securities of six companies, including Engineers India and Oil India, from Tuesday, according to reports.

Reports said that this move to remove price bands has been taken by NSE after periodic surveillance review.

The six companies whose stock would not be subjected to a price band also include Bharat Electronics Ltd, Container Corporation of India and Shipping Corporation of India and Gujarat Mineral Development Corporation Ltd, report said.

Global Front –

In Asia, the Japan's Nikkei average fell 1.1% to a nearly four-week low, the Shanghai Composite index in China was down 0.3% and the Kospi index declined by 0.50%. On the other hand, the Taiwan index gained 0.2%, the Hang Seng index in Hong Kong gained 0.30% and Straits Times added 0.32%.
There are reports that the Bank of Japan will ease monetary conditions further at its policy meeting this week.
European shares rose and the euro edged away from a four-month low. The FTSE index in UK was up 1%, the CAC index in France was up 1.2% and the DAX index in Germany added 1.23%.

=====================  MARKET OUTLOOK  =====================

Indian equities may see sluggish trading sentiment early this week following data that India's CAD touched a record high of 6.7 per cent in the October- December quarter, but the markets are expected to bounce back in view of the recent downtrend.

Sentiment is likely to be subdued as investors may react to the Current Account Deficit data that was made public by RBI in its report on Balance of Payments - released after market hours on Thursday, followed by long weekend because of Good Friday holiday.

Nifty 5700 mark will play a big role, it will act as physiological level and further buying interest will come only after that.

Note that –

1. Auto & Cement stock will start throwing monthly sales figure from Monday.

2. Performance of services sector will come out on Wednesday.

The INDIA VIX on NSE was down 5% and ended at 14.10 against previous close of 14.85.

FNO PCR is 0.96 against previous close 0.84.

Indian Rupee – Rupee closed almost flat and was trading at 54.26 against its previous close of 54.28.

S&P 500 (US) was trading at 1572.53 up 10.36 then its previous close at the time of writing M Bells.

=======================  NIFTY OUTLOOK  ========================

Fresh series, fresh start, taking cues from March series, current outlook Nifty range is 5550 on downside while upside is 5975. Remember as told y’day abfter 5715 mile upmove can be seen, now 5760 & 5850 has stiff resistance.

Intraday Resistance – 5840 – 5797 – 5772 and Support – 5705 – 5662 – 5637 (Pivot 5729)

Opening – Seems a bit negative, as market was up y’day due to Ambani bros deal.

========================  STOCK OUTLOOK  ======================

(Stock outlook needs to watch stock movement carefully and then one can bet after having a look, I tried to put related info which will help you in taking positions.)

Bajaj Auto –

Bajaj Auto February total sales stood at 301,231 units as compared to 3,35,515 units in March 2012, down by 10%.Shares of Bajaj Auto ended lower by 1.5% to close at Rs1757.

Maruti –

Maruti Suzuki Ltd sold a total of 119,937 units in March 2013.This includes 12,047 unit of exports. Shares of Maruti gained by 1.6% to close at Rs1304.

L&T –

L&T Construction has bagged new orders valued over Rs37bn across business segments in March 2013. Shares of L&T further surged by 1.8% to close at Rs1422.

Sterlite –

Shares of Sterlite Industries surged over 4.5% after the Supreme Court set aside a Madras High Court ruling of 2010 which called for the closure of Sterlite’s Tuticorin plant. The apex court imposed a fine of Rs 1bn on the company’s unit for environmental damages. Despite the squashing of the lower court order, the closure order issued by the Pollution Control Board in March still stands.

RCom-

Shares of RCom shot up by over 16% to close at Rs66.5 after Reliance Jio Infocomm Ltd. and Reliance Communications announced the signing of a definitive agreement for approx. Rs12bn as one time indefeasible right to use (IRU) fees for sharing RCOM's nationwide inter-city fiber optic network infrastructure. Under the terms of the agreement, Reliance Jio Infocomm will utilize multiple fiber pairs across RCOM's 1,20,000 kilometres inter-city fiber optic network to provide a robust and future-proof backbone for roiling out its state-of-the-art 4G services.

UBL-

Shares of United Spirits closed 2% lower after banks started selling the pledged shares of brewery to recover loans given to the beleaguered Kingfisher Airlines.

Digitization –

The move from analog to digistiation is set to usher in transparency by enabling fair distribution of pay revenue and better monetisation of content. In the last one year, stocks operating in the broadcast distribution space had seen huge gains on hopes of a step-jump in revenue of multi-system operators.

But should you invest now? In a research report on March 20, IIFL Institutional Equities has advised caution on companies operating in the broadcast distribution space due to the rich valuations.

==================== OPEN CALLS ====================

# Please remember when I make special remark with any position then one should need to take care of that else you can make loss instead of profit.

# Be with strict SL and don’t hesitate to book even small profit if Nifty doesn’t shows strength.

Balram Chini @44.8 TG 47 SL 43.5 (qty 1K)

(Booked profit @46.95, profit 2150)

HPCL 300CE @4.25 TG 6+ SL 3.25

=============== INVESTMENT BASKET ===============

(Stock in this section is with view of 3 months to 1 year)

Mahindra Holiday – @334 TG 375+ (Active from 15 Dec 12)

Satyam Computer – @103 TG 130+ SL 112 (Active from 15 Dec 12)

(Book profit in your 50% holdings and keep balance with SL 119, on 18 Mar 13)

On Mobile – @44 TG 60+ Updated SL 39 Qty 2K (Active from 01 Jan 13)

============ PL Sheet (started from Jan 2013) ============

(If someone find any error in PL, please draw our attention)

MG Blog Since Jan 13 (Total 50,300) + Apr 13 = +3750 + 2150 (profit in Balram Chini) = +5900

Billionaire Club Since Jan 13 (Total 1,09,350) + Apr= +3750 (profit in Balram Chini) = +5900

Today’s MG Mantra –

Play only for short to very short term with cautious approach.

============ Join MG on FaceBook ============

One can join me on FB, just search MudraGuru in FB, you will find me there in top list.

After FB page started, I am receiving so many joining request, but as told you all repeatedly I am on FB only for blog readers and followers, secondly past experience wasn’t good in popular forums and pages like FB, so this time a bit cautious and will accept joining request only when, when one will send a separate message on FB saying “I am blog reader / follower”, because this will ensure that you know me and you are not unknown person who just sending me joining request to steal info of my FB group.

Have a Profitable day – MG

Disclaimer –

1. I have shared my view as per my limited knowledge; please use your own skills to make a wise decision before execution of trade or consult your financial advisor.

2. Those that don’t have patience and are not willing to book loss also in cases don’t enter this market.