Morning Bells (14 Oct 13)

Good Morning Friends.

All the relations are like an insurance policy, we should pay the premiums of feelings, love & care regularly to maintain the relations.

It was another fantastic day on Friday as the stock market registered solid gains. There were few triggers for that rally – first a global rally overnight following some hope of compromise in US regarding raising the debt ceiling secondly IT bellwether Infosys delivered better than expected quarterly earnings.

ON bad news – Industrial output data of August, which was announced after market hours on Friday, is very disappointing. After a 2.6 percent rise in July, IIP has come to a screeching halt in August. Industrial output has slowed down to a mere 0.6 percent. Manufacturing, capital goods and mining growth, too, have contracted.

Global Front –

White House discussions with Republicans failed to reach an agreement to end the budget crisis on Thursday evening, as quoted in various media reports.

US President Barack Obama met with a group of about 18 leading Republicans on Thursday afternoon at the White House, where the two sides discussed a proposal by House Speaker John Boehner to raise the debt limit by 17^th October.

According to Republicans, the White House must delay Obama’s flagship healthcare scheme by a year before they will agree to permanently raise the debt ceiling, or a new stop-gap budget.

MARKET OUTLOOK –

This week would remain highly volatile, as this is the week full of thrills, market participant will keep close eye on WPI which due on Monday 14, US debt ceiling resolution voting on 17^th. This is also week of Q2 no.s from industry heavyweights, have a look - RIL Q2 NO.s are due today, during the week – HDFC Bank, TCS, Bajaj Auto, Axis Bank, HCL Technology, L&T, Ultratech, Bajaj Auto are few of them.

Industrial output data for Aug. is also not in favour, so lets see how market pan out this week and specially today.

I see some pressure at higher levels and cautious approach ahead of important data and Q2 earnings.

Be cautious at levels 6100-6115 / 6200-6235 and nothing harm in taking precautions, max to max you will lose few rupee earning but any mishap can prevent you from big loss. That’s the MG’s tag line till levels not crossed.
MG’s Nifty trading range –

R – 6194 – 6140/45 – 6230

S – 5840 – 5762 - 5670 – 5610 – 5552 - 5516

Nifty swing band is 5600-6100 and 4900-5600

ECONOMIC EVENTS / RESULT CALENDAR –

14 Oct – WPI, Result Baja Corp, Indusind Bank, RIL

15 Oct – HDFC Bank, TCS

16 Oct – Bajaj Auto

17 Oct – US senate voting decision, Result HCL Tech.

21 Oct – Result – KTK Bank

STOCK OUTLOOK -

(Stock that can see some good moves either side)

RIL

The petroleum ministry is working on cabinet note stated that RIL would be paid the old price of $4.2 a million British thermal unit (mBtu) even after April 2014, says report.

Petroleum Secretary Vivek Rae reportedly said that the Cabinet note would be finalised within a week.

The Cabinet note was to deny RIL a higher price from existing fields due to a fall in output.

IndiaBulls –

Indiabulls Housing Finance Ltd (IBHFL), the country’s third largest housing finance company, has received approval from the Reserve Bank of India to raise $200 million through external commercial borrowing (ECB), giving the company access to another source of inexpensive funding.

MBC PL –

Oct PL = -1000 + 250 = -750 – 1250 = -2K

Open Call –

Ashokley 17.5CE @0.7 SL 0.45 TG- 18.5 in Cash

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