Morning Bells (8 July 13)

Good Morning Friends.

By Shri Krishna – Kisi ko dukh dekar mujhase apane such ki ichchha mat karna, lekin, agar tum kisi ko ek pal ki bhi khushi dete ho phir apane dukh ki chinta mat karna.

The Nifty closed above 5,850 while the Sensex shut shop above the 19,400 mark, a gain of 0.5% each. The Nifty briefly touched the 5,900 mark but profit booking and weak European cues pulled it down. For the week too, the gains have been muted around 0.5% each.

Positive Asian market cues at the start of trade lifted benchmark indices. However, in afternoon trade, the Sensex shed its gains of over 150 points from the day's high as the Indian rupee continued its slide against the dollar. Erasing all its initial gains, the rupee weakened further to 60.45 against the greenback.

The indices managed to close marginally higher for the week powered by some comments from the ECB and Bank of England which indicated that stimulus measures are not running away in a hurry. Finance Minister and the RBI are suggesting that banks could reduce lending rates.

Crude prices surged on account of political tensions in Egypt. The country, though not an oil producer, controls the Suez Canal. It is one of the world's busiest shipping lanes through which majority of the world's energy passes. On the global front, China's services sector showed weak growth in June. The June services Purchasing Managers' Index fell to 53.9 from May's 54.3. Meanwhile, US manufacturing activity grew in Jun with construction spending hitting a near four-year high in May.

So in short - market saw a second straight positive weekly close on Friday. The last week's rally was led by government initiatives of hiking gas prices.

Gainers –

IDFC, JP Associates, Jindal Steel, NMDC, Asian Paints, Bank of Baroda, ONGC, BHEL, Reliance Industries and HDFC Bank were among the gainers.

Losers -

GAIL India, Bharti Airtel, Lupin, ICICI Bank, M&M, Hero MotoCorp, HCL Technologies, Coal India and DLF lost out.

Sectoral –

Among sectoral indices, oil and gas, FMCG, metals, capital goods, banking and healthcare stocks gained. Even mid- and small-cap stocks ended with modest gains. On the other hand, the losers pack included telecom, IT and auto stocks.

Domestic Front –

NSE Launch LIX 15 Index –

The National Stock Exchange is pleased to announce the launch of ‘LIX 15’ Index. The index shall be disseminated online, from Monday, the July 08, 2013.

‘LIX 15’ Index is designed to provide exposure to the liquid stocks while making the index easily replicable and tradable.

In order to make the index easily replicable and tradable, the index includes limited number of stocks and selection criterion is based on the minimum turnover ratio and free float market capitalization.

The index includes 15 stocks, which are available in the F&O segment. Currently these stocks represent 9 industries, 22% of turnover in Cash Segment and 34% of single stock derivatives turnover in F&O segment on NSE in previous 6 months. The weight of single stock in the index is capped at 15%.

The methodology and values of the index will be available on www.nseindia.com

Global Front –

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

Market is now turned to trade in selective stocks since long, instead of big fall few stocks did well while instead of good rally many stock didn’t do well. So its stock specific market. So one can initiate longs in selective stocks no matter where Nifty is going same one can start short sell no matter where Nifty is going.

The INDIA VIX on NSE was up by 0.48% and ended at 18.67 against previous close of 18.58.

FNO PCR was 1.08 against previous close 0.97.

Indian Rupee – Rupee declined by 09 paisa and was trading at 60.23 against its previous close of 60.14.

S&P 500 (US) was trading at 1631.89 up 16.48 than its previous close at the time of writing M Bells.

Buzz –

12 July – Q1 No.s from Infy

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

As I was hoping 5920-35 would act as strong resistance but it seems Nifty is declining at 5900. And my suggestion for immediate support at 5840 and then 5750. 5840 is for day traders and 5750 for short term.

View is that Nifty has positive outlook for short term, thought 2 successive close above 5935 would act as trend changer and then Nifty can head towards 6000 and then for a year’s new high. While its again true that if Nifty slips below then horror of 5485 is also on card.

Opening – As Nifty declined at 5900 after such surprising rally in bear market, opening seems again down and lets one can hope it will rebound.

========================  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.)

United Spirit –

United Spirits closed at Rs. 2,523.70, down Rs. 33.75 or 1.3%. Diageo announced it has raised its stake in United Spirits to 25% and appointed five directors to the board chaired by Vijay Mallya.

Adani Enterprise –

Adani Enterprises closed at Rs. 203.60, down Rs. 2.35 or 1.14%, after the company exited from a $1.7bn coal railway project with Indonesia's PT Bukit Asam citing tough licencing restrictions.

CG –

Crompton Greaves, a part of the Avantha Group, closed at Rs. 87.10, down Rs. 1.25 or 1.4%, after it bagged a 3.5mn euro contract from Nordex and H2air for setting up a wind farm sub-station at the 75 MW Seine Rive Gauche Nord windfarm in France.

Bajaj Auto

There seems no end to union strike in near term.

The fight between Bajaj Auto and its striking workers continues as the union claiming that it had a right to a share in company’s profits (through employee stock options), report said.

The recognised labour union at Chakan reportedly said the union has the support of 138 other unions operating in the neighbouring industrial belts.

Dilip Pawar, President, VKS said that each of the workers at Chakan got only 22 paise for every Pulsar sold.

While Rajiv Bajaj, Managing Director, Bajaj Auto, trashed the claim unequivocally, calling it “contrived nonsense”.

Bajaj Auto stated that union had refused to accept a labour court notice on Thursday.

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

Apollo Tyre – 62.5CE @2.75 SL 2 TG 4+ (Max 1 lot)

(Closed at cost)

Nifty 6000CE –@42 SL 5840 Nifty spot TG 55/60 (4 lot)

TRACK Today –

IDFC (can up) Rcom (up)

=============== 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)

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

Today’s MG Mantra –

Just take care of 5900/5935 and 5840/5750, you can make good money.

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.