Monday, 9 September 2013

Morning Bells (10 Sept 13)


Good Morning Friends.

A truth – Apani zindagi ke kisi bhi din ko mat kosana kyonki Achchha din KHUSHIYAN lata he aur bura din TAZURBA, aur zindagi ke liye dono hi zaroori he.

So we are back after long weekend. Rajan effect boosted some sentiment in the market but now the week ahead the trend will be decided by currency movement against dollar, macroeconomic data and largely on FII investment trend. Beside currency movement participant would keep an eye on the movement of crude oil too.

Market will also witness volatility amid concerns over Syria. There is also rising speculation about hike in diesel prices.

In the trend deciding or to make sessions volatile many data are in the queue -
Data for industrial production and consumer price index (CPI) for July would be announced on Thursday.
RBI's monetary policy is due on September 20 and chances of rate cuts are very less.


Sectors that received large FDI inflows include hotels and tourism, pharmaceuticals, services, chemicals and construction. Most of the inflows came from Singapore, Mauritius, the Netherlands and the US.

Sectors that received large FDI inflows include hotels and tourism, pharmaceuticals, services, chemicals and construction. Most of the inflows came from Singapore, Mauritius, the Netherlands and the US.
On August 1, the government liberalised the FDI regime in about a dozen sectors, including telecom, and relaxed investment norms in multi-brand retailing. India attracted USD 22.42 billion of FDI in 2012-13 compared with USD 35.12 billion in the previous fiscal. India needs about USD 1 trillion to fund infrastructure such as ports, airports and highways to boost growth.

Global Front –

On August 1, the government liberalised the FDI regime in about a dozen sectors, including telecom, and relaxed investment norms in multi-brand retailing. India attracted USD 22.42 billion of FDI in 2012-13 compared with USD 35.12 billion in the previous fiscal. India needs about USD 1 trillion to fund infrastructure such as ports, airports and highways to boost growth.
Global Front –

Global Front –
MG’s View – Nikkei’s strength is positive for our market.

MG’s View – Nikkei’s strength is positive for our market.
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There is also some good news - Foreign direct investment (FDI) into India increased by 6 per cent year-on-year to USD 10.87 billion during the first six months of this year.

The official said the country will receive more and more foreign investment on the back of recent liberalisation in the FDI policy regime.
The euphoria of Tokyo winning the 2020 Olympics drove Japan's Nikkei share average to a five-week high on Monday, led by stocks expected to benefit from the event, with a sharp upward revision to second-quarter growth further boosting sentiment.

Important article, it’s a must read to know what RBI can do and what can’t –

MARKET OUTLOOK –
It may give some sign that trend is changing but still I am not convincing with the rally. My last point still there i.e. 5710, experts feel that it would face strong resistance around 5675 but I would prefer Nifty to close above 5710 for any trend setting.

So right now I would prefer it as big relief rally as nothing has changed on the big picture front. Anyone can see what has changed in past 4 sessions.

But yes, we are at the level where we can not short it yet nor we can take long positions, so better to wait and watch where market is going and do trades accordingly.

May be I would try to play some shorts with SL 5710 and above this level I would play for longs with SL 5695 but only on intraday basis.
STOCK OUTLOOK -
(Stock that can see some good moves either side)

Hindalco -
Hindalco Industries has said that metals business will face challenges in the near term as aluminium prices continue to remain weak in the international market and will have bearing on financial results in 2013-14.

Telecom –
Idea and Bharti are good pick if market support here onward.

Tata Motors –
Have already suggested trading ranges and view when stock was around 291. My view was simple, TM to move up 291-305 then 306-321 then 321-342 and then 380+ Here I would like to emphasize that you need to keep trailing SL everyday as per trade ranges. Once stock moves out of one trading zone you need to keep previous trading ranges as SL for mid term.

Importantly – TM outlook is in view with Nifty either positive or flat or small negative, for a deep cut in market TM wont be a big exception, yes it may hold its trading ranges.

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