Good Morning
Friends.
Give Love
and Care as loan to everyone… these are the only things which come back with
the highest interest.
Once again
bear took the grip and market witnessed selling on third session, benchmark indices ended near the day’s low amid heavy
selling in rate sensitive. Selling pressure gripped IT and metal stocks too.
In a major step, the
Reserve Bank said foreign investors can subscribe to the newly launched
inflation-linked bonds. This will result in a diversion of funds from
equities to bond markets.
Gainers –
Wipro, Larsen &
Toubro, Mahindra & Mahindra, NTPC, Bajaj Auto, Tata Steel, Bharti Airtel,
Hero MotoCorp and Dr Reddy’s Laboratories were among the major gainers in
Sensex & Nifty.
Losers -
Reliance Industries, Infosys, Tata Motors, Sun
Pharmaceutical, ONGC, Hero MotoCorp, ITC, BHEL, HDFC, Coal India, Maruti
Suzuki, SBI and Tata Power were among the major losers in Sensex & Nifty.
Sectoral –
Domestic
Front –
Monsoon –
Monsoon advances to
Goa and parts of south central maharashtra. Also advances to
telangana, south coastal andhra pradesh. Covers entire south interior
karnataka and rayalseema, said Indian Metrological department (IMD).
Inflation
Indexed Bonds –
Institutional investors fully subscribed the first tranche of
inflation indexed bonds (IIBs) worth Rs 1,000 crore auctioned by the Reserve Bank
of India (RBI) on Tuesday. The central bank set a real yield at 1.44 percent
for those 10-year government securities maturing in 2023.
However, retail investors could
not participate in the auction. The government had earmarked 20 percent (Rs 200
crore) of bond sales for non-competitive bidders including retail and select
institutional investors (like non-banking finance companies and others). The
rest 80 percent is for large institutions, which will be engaged in the bidding
process.
Non-competitive bidders can buy
those bonds at the notified cut-off price while institutions have to bid higher
price over and above that in a particular auction. Currently, non-competitive
bidders can buy government securities to the tune of 5 percent of notified
amount.
Global
Front –
===================== MARKET OUTLOOK =====================
Now next big triggers CPI,
WPI Inflation on 12 and IIP on 14 or 15 and then RBI monetary policy review on
17th.
The
INDIA VIX on NSE was almost
unchanged, down 0.03% and ended at 17.26 against previous close of 16.29.
FNO
PCR was 0.98 against previous close 0.xx.
Indian Rupee – Rupee strengthen further by 32 paisa and was trading at 56.44
against its previous close of 56.76.
S&P 500 (US) was trading at 1635.33 down 5.09 then its
previous close at the time of writing M Bells.
======================= NIFTY OUTLOOK
========================
Nifty breached the neckline of a head and shoulder
pattern in intra-day trades which indicates that selling could intensify
further. Now only hope is that Nifty to hold 5915 as physiological level while
5860 could act as support as this is the 100DMA level.
If weakness continue then rate sensitive stocks will
lead, specially banks will be on sellers radar.
Opening – Seems flat and under pressure as Nifty is just around the
physiological level of 5915.
======================== 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.)
TM
The
company's domestic sales of Tata commercial and passenger vehicles for May 2013
were 45,430 nos.
Data released by most automakers
over the last few days shows sales across two-wheelers, passenger vehicles and
commercial vehicles remained weak in May.
Infy –
Founder Narayana Murthy is back at the helm of
affairs at Infosys, hoping to turnaround the IT bellwether's dwindling
fortunes. This fuelled the stock rally. It ended up 4% erasing early gains.
The brokerage house IIFL has a 12-month price target of Rs. 2,683, which
is an 11% upside from its current market price of Rs. 2,412 per share.
Dr. Reddy -
Dr Reddy's scrip was up 2.5% after Fujifilm
Corporation decided to enter into an exclusive partnership for generic drugs.
Idea Cellular –
Idea Cellular ended
up 3.5% on reports that the firm is in talks with its second-largest
shareholder – Axiata -- to sell its towers to the Malaysian company. The
company is looking to divest 9,400 towers to raise funds for capital
expenditure.
Reliance Power -
Reliance Power clarified an earlier announcement
dated June 03, 2013 regarding compliance with minimum Public Shareholding
requirement, Reliance Power Ltd has now informed BSE that the number of shares
off loaded by the promoters is 4,50,000 equity shares and not 5,00,000 equity
shares as incorrectly stated, which is 0.02 % of the present holding and thus
meeting with the minimum Public shareholding requirement of 25 %
BhartiAirtel –
Bharti Airtel, along with consortium partners, has submitted final
technical bid for a telecom licence in Myanmar, media report said.
According to reports, Myanmar had called bids for two mobile
licences and short-listed 12 international consortia.
Vodafone and China Mobile dropped out of the race last week.
The winner is expected to be declared by June 27 this year, says
report.
Hindalco –
Hindalco Industries plans to raise Rs 5,000 crore to refinance
high cost debt, for which State Bank of India ( SBI ) may be appointed as
lead manager, exclusive sources told CNBC-TV18. Currently, the aluminium maker
has a debt of around Rs 13,000 crore.
Of the total, the company will raise Rs 2,000 crore by issuing
bonds which will hit the market by September quarter. It will borrow loans of
about Rs 3000 crore to repay high cost debt at its Utkal Alumina. The Aditya
Birla group company plans to double capacity to three million tonne at this
unit.
Bata India –
In light of the Motilal Oswal report on Bata India , Gautam Sinha
Roy of Motilal Oswal says that Bata is one of the favourite consumer
discretionary stocks in India. "Going by valuations, there has been some
sort of discount to the broader sector in general. I expect the stock to offer
strong returns on underpenetration and strong dividend growth for a sustained
period of time."
New Banking Licence -
Rajiv Takru, financial services secretary, told CNBC-TV18
that the number of banking licenses to be issued could be clear only after
the first committee of the Reserve Bank of India (RBI) does an interim
scrutiny by September-October. He added that the clarifications issued by the
RBI on Monday were clear and the regulator had been as fair as possible.
On non banking financial companies (NBFCs) finding it tough
to comply with the norms on reserve requirements and priority sectors, he said
that there would be no compromise on the lending to such sectors. He added that
if the companies found it difficult to meet norms, they could reconsider their
decision to apply for licenses.
On the new bank-licence clarifications announced by the RBI on Monday
and the stocks that might be impacted, Roy expects a few of the non-banking
financial companies sponsored by corporate houses to be strong contenders for
banking licences."The stocks that might be affected include Mahindra and
Mahindra (M&M), Tata Capital and L&T Finance . On the PSU side, NBFCs
sponsored by state-owned units such as the Power Finance Corporation (PFC) or Rural
Electrification Corporation (REC) have a good chance of getting bank licences.
However, since the process is long-drawn it is not a very near-term trigger.
But when the licences are issued, it will be a big positive for those that do
get the licences."
====================
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.
Union
Bank – 230CE @4.75 TG 7+ SL 2 (Max 2 lots)
===============
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)
June 2013 = 00
Billionaire
Club from Jan 13 to April 13 (Total 1,22,200)
June 2013 = 00
Today’s
MG Mantra –
Nifty to hold 5915 if not then 5860.
After breach of 5915 a 75-100 point fall is on card, so be carefull.
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.
============
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