Morning Bells (19 Nov 13)

Good Morning Friends.

Never cry for the person who hurts you, just smile and say: Thanks for giving me the chance to find someone better than you.

It was a day of stellar gains as the Indian equity market extended the momentum for the second trading session on Monday.

Sentiment also got a boost after the Indian rupee strengthened against the US Dollar and was trading at its 1-week high. The rupee was trading strong by 67 paise around the 62.44 against the dollar.

Last week, RBI Governor Raghuram Rajan had assured that he will not roll back the special dollar swap window for oil companies in a hurry.

Well, another positive news was in market - In order to ease liquidity stress to Micro and Small Enterprises (MSE) sector, the Reserve Bank of India today has extended the liquidity support to micro, small and medium enterprises.

“It has been decided to provide refinance Rs. 5,000 crore to the Small Industrial Development Bank of India (SIDBI),” the RBI said in a notification.

Sentiment also got boosted when positive news flow coming out of China. The rally was also on hopes that the Federal Reserve will continue its USD 85 billion monthly bond buying programme.

Brokerage house UBS has upgraded China to ‘overweight’ on the bet that the dragon country is due for a re-rating and simultaneously cut its rating on India to 'neutral' from 'overweight'.

"A re-rating on the other hand of China over the coming weeks is likely to make India pale by comparison. India is not likely to get much benefit from a China move—albeit more flows to emerging market equities might help if the China story attracts broader capital back to EM," UBS report said.

MARKET OUTLOOK –

Well we are round the corner of end of 2013 and to welcome 2014. In regards for our market, Election uncertainty and tapering concerns will keep markets volatile in 2014.

Well trend seems up (if there’s no bad news in current) and Nifty can test this time new high. Metal sector forming a bullish pattern, Bakes giving positive sign so all seems in favour of upmove. May there some selling pressure as still few investors are not comfortable with higher range.

MG’s Nifty trading range –

R – 6240 – 6290 – 6350

S –6120 – 6080- 6020 – 5980 (Trend Changer level 5950)

ECONOMIC EVENTS / RESULT CALENDAR –

OI Activity –

Nifty (November) futures’ premium decreased marginally from 32.80 points to 28.05 points.

Nifty call options underwent a reduction of 12.60 lakh shares in open interest whereas put options added 22.45 lakh shares in open interest.

STOCK OUTLOOK -

(Stock that can see some good moves either side)

OMCs –

Rating agency Fitch today said government may have to shift part of the soaring oil subsidy bill of the current financial year to the next fiscal. The government had allocated Rs 65,000 crore for petroleum subsidies in 2013-14, of which Rs 45,000 crore has already been utilised to pay the oil marketing companies to meet their subsidy requirement of previous financial year.

The government is now left with Rs 20,000 crore to meet the subsidy burden, arising out of under-recoveries of OMCs. "This is likely to be insufficient, and it is likely that the state will have to tap around Rs 45,000 crore from next year's budget," Fitch said in a report.

Dena Bank –

Dena Bank said that it will lower its credit growth target to 16% as against 18% this fiscal, according to a media report. The public sector lender had reported 18% credit growth till March-end in the previous fiscal. The scrip was up 3% and closed at Rs56.95 on NSE.

MBC PL –

Oct PL = -6600 - 700 (Loss Nifty 6200 PEs) = -7400

Open Call –