Morning Bells (7 Mar 13)

Good Morning Friends.

When you truly believe that you deserve success… you mind will automatically generate ways to achieve it. Good Morning.

Hello Friends, Have some technical issue with my system and that's cutting short MB. Will discuss on board.

The Indian equity markets extended its winning streak to second straight trading session following overnight gains in the US market. The Dow Jones Industrial Average surged to a new all-time high, surpassing the record set more than five years ago infact the index closed well above its all time high. The tech-rich Nasdaq Composite Index gained 1.3%.

Nifty managed to close above the 5800 mark led by IT heavyweights like Infosys, HCL Tech and Wipro. TCS surpassed Reliance Industries in terms of market cap.

Gainers – RIL, Infosys, Wipro, TCS, Dr Reddy’s Lab, Hero MotoCorp, Bajaj Auto, SBI, ICICI Bank, Tata Steel, BHEL, HDFC, ONGC were among gainers in Sensex and Nifty.

Losers - Maruti Suzuki, M&M, Tata Power, NTPC, Sun Pharma, Bharti Airtel, Coal India, HDFC Bank, Gail India, ITC, Cipla were the major losers in Sensex and Nifty.

Sectoral - S&P BSE Realty index up 4.5% followed by S&P BSE Capital Goods index up 2.5%, S&P BSE Metal index up 2.2% and S&P BSE IT index 1.3%. Even the S&P BSE Mid-Cap and Small-Cap index added 1.1% and 1.5% respectively while major losers were S&P BSE FMCG index down 1% and S&P BSE Consumer Durables index down 0.5%.

On Domestic Front –

1.

On Global front –

1.

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

Nothing much to say here, market seems range bound with a bit volatility, now all eyes will be on Reserve Bank of India (RBI) policy which will be the next domestic trigger, there one can expect 25 bps cut based on the Budget.

The INDIA VIX on NSE was slightly up 0.1% and ended at 13.40 against previous close of 13.39.

FNO PCR is 1 against previous close 0.92.

Indian Rupee – Rupee gained 20 paisa and was trading at 54.72 against its previous close of 54.92.

S&P 500 (US) was trading at 1541.03 up 1.24 then its previous close at the time of writing M Bells.

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

Now we are in New series so not much to say here, will just follow the trend. Short term range 5550 – 5650 - 5835 – 5940. Here 5835-40 is the level where Nifty face strong resistance, so this level should be watch closely as short covering can take place here if Nifty try to break this level decisively while 5650-55 can give small support to Nifty, if broken then next support comes around 5565.

Intraday Resistance – 5866 – 5847 – 5833 and Support – 5799 – 5780 – 5765

Weekly/Monthly Resistance – 6047 – 5963 – 5841 and Supports – 5634 – 5550 - 5428

Opening – As told Nifty to face resistance around 5840, so opening could be either flat or a bit down.

========================  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.)

M&M –

Shares of M&M slipped by 2% after workers at company’s Nashik plant threatened to go on a strike in a notice to the management after March 11, if their demands for higher wages were not settled by the company. The workers yesterday reportedly stopped work at 2 assembly lines for a short period of time causing a fall in production of about 90 vehicles. Reports said that production was back to normal from the second shift in all shops of the plant. The management is reportedly in dialogue with the union and is trying to break a mutually agreeable settlement.

RIL-

Reliance Industries is planning to finalized Samsung as a partner to source the Korean conglomerate's long-term evolution (LTE) technology platform for voice services over high speed 4G networks across the country, according to reports.

Reports stated that Samsung has agreed to offer entry-level 4G smartphones at a little over $100 (about Rs 5,500) for use with RIL's voice and high-speed internet services.

RIL is planning a soft launch in Mumbai and Delhi by mid-2013 and a formal launch is set to be announced later this year, most likely on December 28, the birth anniversary of Reliance founder, late Dhirubhai Ambani, according to reports.

For Samsung, the JV with RIL will allow it to use the India launch to showcase it in the US market

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

Hexaware – Place order for March 80PE below 1.5 (max 4 lots) first buy 2 lots and then buy another 2 lots at 20-30 paisa below. SL 0.5 TG 2.5+ (Remember its Positional, Active from 26 Feb 13, not executed yet)

Note – Unfortunately we missed it y’day. Lets see if buying opportunity comes once again.

Tata Steel 360CE – bought @5.5 (2 Lot) SL 3.5 TG 9+ (Active from 5 Mar 13)

Booked profit @7.75 & 9, Total Gain 5250

=============== 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 = +2500 + 5250 = 7750/-

(Profit in TS)

Billionaire Club Since Jan 13 (Total 67,700) + Mar = +11,350 + 5200 = 16,550 (Y’day gain)

(Profit in TS 360CE)

Today’s MG Mantra –

Watch 5840 level closely, market may remain range bound for next 1 or 2 days.

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.