Morning Bells (14 Mar 13)

Good Morning Friends.

Nice Lines – Usako Ishwar ne sab kuchh diya kyunki use Ishwar par bharosa tha… muhje Ishwar ne kuchh nahi diya (except HUNAR) kyonki Ishwar ko mujh pe bharosa tha.

The Indian equity market ended near day’s low on Wednesday amid heavy sell off seen in scrips across the sector. Market participants preferred to remain cautious ahead of the monthly inflation data to be released on Thursday.

The NSE Nifty has declined by almost 130 points or 2.1% in the past three trading sessions. Today’s decline was led the Banking stocks, index heavyweights like SBI, ICICI Bank, Axis Bank and PNB were among the major laggards.

Gainers – ITC, Sun Pharma, Tata Power, Bharti Airtel, Coal India, Hindustan Unilever were among gainers in Sensex and Nifty.

Losers - RIL,  Infosys, TCS, Wipro, Bajaj Auto, HDFC Bank, ONGC, Gail India, Tata Motors, ICICI Bank, HDFC, Hero MotoCorp, Maruti,  Jindal Steel, Tata Steel were the major losers in Sensex and Nifty.

Sectoral - Barring the FMCG sector all the other major BSE sectoral indices ended in the red. Among the other major losers were Consumer Durables, PSU, Auto and the IT stocks. Even the Mid-Cap and the Small-Cap stocks were under pressure.

On Domestic Front –

1.

Finance Minister P Chidambaram has reportedly said that Core inflation has reduced to 4-4.5%.

Government is taking steps to bring down prices of food, says FM.

FM reported that they are seeking to tackle high prices, fiscal deficit.

On Global front –

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

As told on Tuesday that PCR at 1.35 isn’t good signal for market, CPI also diluted hopes of rate cut and y’day we had seen the impact of that.

The INDIA VIX on NSE surged 7% and ended at 16.20 against previous close of 15.13.

FNO PCR is 1.30 against previous close 1.35. - ITS NOT GOOD SIGN FOR NEAR TERM.

Indian Rupee – Rupee declined by 6 paisa and was trading at 54.23 against its previous close of 54.17/18.

S&P 500 (US) was trading at 1552.48 down 3.74 then its previous close at the time of writing M Bells.

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

Technically, Nifty extended its weakness and closed below its 100-DMA (5,857), confirming a breakdown in the index after last week’s recovery. The undertone remains cautious and there is no point to taking any risky bets ahead of the RBI policy meet next week

As per current outlook Nifty range is 5600 on downside while upside is 6200.

Intraday Resistance – 5934 – 5914 – 5882 and Support – 5831 – 5810 – 5779 (Pivot 5862)

Weekly/Monthly Resistance – 6333 – 6143 – 6044 and Supports – 5755 – 5664 - 5466

Opening – Seems flat and can go for a bit under pressure and range bound till Inflation figure out.

========================  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.)

RIL –

Reliance Industries is planning to expand investment in its telecom and retail businesses by up to Rs 65bn a year for the next five years, beginning April 1, according to reports.

Media reports say Reliance is in talks with AT&T to sell 25 per cent stake.

The part of the cash in the telecom business will be used to set up a tower company and the company is open to offer a part of the stake to a foreign partner, says reports

TM –

Tata Motors ended lower by 1.2% after Jaguar Land Rover reported global retail sales growth of just 3% after growing 32% in January’13. JLR sold 26,855 units in February. Sales in China which grew 80% in January saw a decline of 22% in the month of February.

ONGC–

Shares of ONGC slipped by 2.7% on Wednesday. The company is looking at hiring Reliance Industries' unused facilities on the east to quickly bring to utilized its discovered gas in the Krishna Godavari basin.

Hexaware –

Hexaware Technologies Limited, a leading global provider of IT, BPO and consulting services has today announced the inauguration of its third Global Delivery Center (GDC) in Saltillo, Mexico.

The inauguration was hosted by Hexaware executives; R V Ramanan, Executive Director & President - Global Delivery, and Amberin Memon, Chief People Officer and local Saltillo government officials and members of the media were invited. This expansion in the facilities will allow Hexaware to hire 85 IT engineers in the coming months to add to the current employee strength of 300 at the existing Software Development centers.

The new Development center will focus on providing IT services for clients in business segments such as Quality Assurance & Testing (QATS), Business Intelligence and Analytics (BI/BA), Remote Infrastructure Management Services (IMS) and domain-based offerings in Banking & Financial Services Vertical. Currently, the Global Delivery centers at Mexico serve over 30 customers and deliver over 100 active projects.

Systema –

Moody's Investors Service has today said that the result of a recent auction for mobile spectrum in India is creditpositive for Sistema JSFC (Ba3 stable) as it implies that the company will need to make only moderate additional investment to retain its business in India, while it also provides growth opportunities due to technological neutrality of the won spectrum.

On 11 March, Sistema's 57% subsidiary Sistema Shyam TeleServices Ltd (SSTL), a mobile operator in India, won the auction for mobile spectrum in the 800 MHz band in eight Indian circles, for a total consideration of $665 million. Of this total, $297 million is covered by SSTL's licence fees, which it has already paid. The remaining $368 million is to be paid in 10 equal annual instalments starting from 2016.

Bharti Airtel –

Bharti Airtel has reportedly said that its wholly-owned Nigerian subsidiary has acquired 13.36% additional stake in Nigeria's Airtel Networks.

With this acquisition, Bharti Airtel Nigeria B.V. owns 79.06% equity stake in Airtel Networks Limited, Nigeria, media reports said.

Airtel Network Limited holds telecom licence to provide services Nigeria.

The financial details of this transactions was not disclosed by the company.

NALCO –

The Finance Ministry today said the government's 12.5 per cent stake sale offer in Nalco will hit the markets on March 15, which could mop up around Rs 1,400 crore to the exchequer.

The share sale through OFS route will be held on Friday, Disinvestment Secretary Ravi Mathur told reporters here after a EGoM meeting.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram met today and decided on the base price for the share sale. He, however, did not disclose the base price for the issue. The sale of 12.5 per cent stake, or 31.31 crore shares, of Nalco is expected to fetch around Rs 1,400 crore to the exchequer at the current market price.

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

Renuka Sugar 30CE – bought @0.8 (1 Lot) SL 0.45 TG 1.25+ (Active from 12 Mar 13)

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

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 36,850) + Mar 13 = +11,750 + 1250 (TCS Gain) = +13,000

Billionaire Club Since Jan 13 (Total 67,700) + Mar = +20,700 + 1250 (TCS Gain) = +21,950

Today’s MG Mantra –

Market will wait for Inflation figure.

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.