Morning Bells (29 July 13)

Good Morning Friends.

There are millions of people in this world, then why you born? Because God is expecting something from you which is not possible by millions. Be special in your life.

On Tuesday after RBI announced additional liquidity tightening measures to contain excessive speculation and volatility in the foreign exchange market. It reduced the liquidity adjustment facility for each bank from 1% of total deposits to 0.5% of its own net demand and time liabilities, thus limiting bank's access to borrowed funds. The limit will come into force with immediate effect and continue till further notice.

In another measure, it asked banks to maintain their average cash reserve ratio at 99% of the daily requirement as against earlier 70%. This measure would come into effect after a fortnight.

Gainers –

Losers -

Sectoral –

On weekly basis - capital goods ended down 10.2%, metal (-6.7%), banking (-4.7%), oil & gas (-3.2%) were the major losers. The only sector to end the week in the positive was pharmaceuticals up 2% week-on-week.

Domestic Front –

Global Front –

In economic news, China’s manufacturing weakened further in July, signaling the worst of the nation’s slowdown has yet to be reached. The PMI reading of 47.7 was less than estimated and if confirmed in the final report August 1, would be the lowest in 11 months. Readings below 50 indicate contraction. To compound matters, China has ordered more than 1,400 companies in 19 industries to cut excess production capacity this year, part of efforts to shift toward slower, more-sustainable economic growth.

Japan’s exports rose for a fourth straight month in June as a weak yen made the nation’s products more competitive and shipments to the European Union rebounded. Exports gained 7.4% from a year earlier.

Eurozone Purchase Managers' Index rose to an 18-month high in July. The PMI rose for the fourth successive month, up from 48.7 in June to 50.4.

US factories received more orders for automobiles and machinery in June, pointing to a pickup in manufacturing that will help propel the world’s largest economy in the second half of 2013.

US Jobless claims rose by 7,000 to 343,000 in the week ended July 20 from a revised 336,000 in the prior period. Consumer confidence rose last week as an improving job market helped make Americans the least pessimistic about the economy in more than five years.

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

Apart from corporate earnings, Reserve Bank of India's monetary policy and monsoon session of parliament will provide the next big trigger for the market.

The INDIA VIX on NSE was up by 0.36% and ended at 16.78 against previous close of 16.72.

FNO PCR was 1.12 against previous close XX.

Indian Rupee – Rupee gain by 7 paisa and was trading at 59.04 against its previous close of 59.11.

S&P 500 (US) was trading at 1691.65 up 1.40 than its previous close at the time of writing M Bells.

Buzz Q1 Nos –

29 July – Allahbad Bank, Arvind, IDFC, JPA, MCX, RelCapital, Syndicate Bank, SesaGoa

30 July – Dr. Reddy, FinTech, Havells, Jindal Steel, NTPC, Rel Infra, Sun Pharma

31 July – BhartiAirtel, HCL, ICICI, KTK Bank, United Spirit

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

We were talking about 5477 last series but somehow Nifty shown some upmove and again failed to breach 6100 level. Now sentiments are weak and there could be possibilities to retest that level once RBI policy meet hype is over.

Bank Nifty was the major losers and hopefully to sustain 10,000 level.

Opening – Seems on positive note as nobody can take risk and hoping for a miracle from RBI, so today could be the day where one needs to book profit and exit their longs. Bulls can attempt to close 5940-50.

========================  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.)

==================== 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 July 13 (Total 59,600)

Aug 13 = +00

Billionaire Club from Jan 13 to June 13 (Total 1,30,450)

Aug 13 = +00

Today’s MG Mantra –

For longs SL is 5880

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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