Morning Bells (02 July 13)

Good Morning Friends.

Your dream will not die. Your plans will not fail. Your destiny will not be aborted. The desire of your heart will be granted only if you believe in YOU.

It was again cheers for bull and fantastic start of July series. After enjoying a fantastic Friday, the Indian equity market continued its winning streak on Monday with the Nifty ending a shade below the 5900 mark. The Sensex managed to close above the 19,500 mark at 19,577, up 182 points, while the Nifty shut shop at 5,899 up 57 points over Friday's close.

Gainers –

Losers -

Sectoral –

Despite a good day of trade, the IT segment was dull after comments of Infosys scaling down its FY14 revenue guidance and the impact of the US Immigration Bill .

Reliance Communications was one of the stars in the broader markets on news of repayment of loans . The stock has already rallied 80 percent on a year-to-date (YTD) basis and is currently trading at levels of Rs 130.

Domestic Front –

PMI -

India's Purchasing Manager Index (PMI) for manufacturing snapped a three-month declining streak in June, rising slightly to 50.3.

Global Front –

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

Now week all eyes will be on ECB meet on interest rates and unemployment data from the US and Eurozone will be tracked closely. 

Reserve Bank's policy meet on July 30, 13.

The INDIA VIX on NSE was up by 0.78% and ended at 18.09 against previous close of 17.95.

FNO PCR was 1.00 against previous close 1.01.

Indian Rupee – Rupee declined by 13 paisa and was trading at 59.52 against its previous close of 59.39.

S&P 500 (US) was trading at 1623.13 up 16.85 than its previous close at the time of writing M Bells.

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

Finally Nifty breached most of resistance in a row and now its just below 5900 mark, now it would be interesting to see whether it going to breach 5935 that much easily or not.

I personally see some buying momentum above 5900 mark but decline at 5935 and if somehow Nifty closes above 5935 for 2 successive day then trend will change to bullish from bearish.

Opening – I guess to see first decline at today’s opening.

========================  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.)

Auto Sector : under pressure –

There seems to be no respite for auto players. Rising petrol prices, a slowing economy and fall in discretionary incomes are giving auto companies sleepless nights.

Indian auto sector (passenger car makers) seems under pressure. Top 3 manufacturer declined its sales figure in June includes – TM 18%, M&M 8% and Maruti declined 13%.

Beside decline in sales hike in diesel price also playing panic for car makers.

After petrol price hike of Rs 1.82 per litre on Friday, Indian Oil Corporation today announced a hike in diesel prices by 50 paise per litre, excluding VAT with effect from midnight of Monday.

This is the seventh hike in diesel price since January when the government authorised state-owned oil firms to increase prices by up to 50 paisa per litre every month till entire losses on the fuel are wiped out.

TM June sales down 18% –

Tata Motors' total sales in June declined 18 percent year-on-year to 52,708 units, amid continued sluggish demand for trucks and passenger cars.

The company sold 36,908 commercial vehicles in the domestic market, down 10 percent from a year ago. While LCV sales were down 9 percent to 25,778 units, M&HCV sales declined 12 percent to 11,130 units.

Tata Motors exported 3,996 units in June, down 34 percent.

Tata Motors shares closed at Rs 289.80 on NSE on Monday, up 3 percent. The sales figures were announced after markets closed.

M&M-

Mahindra and Mahindra (M&M) witnessed a smart rebound on better-than-estimated growth in tractor sales — 17.5 percent month-on-month growth. In the light of a further slump in auto sales.

New Banking Licence : 10 companies are hopeful to get nod from RBI –

The deadline for putting in applications for banking license ends today. As of now around 20 applicants have formally submitted applications for banking license.

There is no clarity on when the Reserve Bank of India (RBI) will set up a committee for this process.

Following are the top contender – JM Financial, Bajaj Financial Services, L&T Fin. Holdings, Reliance Capital, LIC Housing Finance, Religare Enterprise, PFC, Aditya Birla Nuvo, IDFC, SREI Infra,

Among above all companies like L&T Finance Holdings , IDFC  have a good chance of getting the licence as these are extremely respectful names in terms of governance and experience, says experts.

==================== 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.

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

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

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

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

MG Blog Fronm Jan 13 to April 13 (Total 58,800)

Since most of you haven’t entered CG, GAIL & BOI Calls, I am not considering it under Blog PL while trio made approx 25K profit in past 3 days.

Billionaire Club from Jan 13 to June 13 (Total 1,25,600)

Today’s MG Mantra –

Book at least part profit on longs and wait for Nifty to break 5935.

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.