Good Morning
Friends.
Someone
asked Swami Vivekanand – What did you get by Prayer & Meditation, he
politely replied – I gained nothing, in fact I lost Anger, Depression,
Jealousy, Irritation & Insecurity.
After a long
time your favourite MBells is back.
Well it was
a weak start and fall in Indian equities continue for second consecutive day amid fresh selling in oil and gas, power and capital
goods and as discussed even midcap stocks were under pressure in trade today.
Auto sales data for May jolted sentiment on disappointing numbers. Sales at
market leader Maruti Suzuki India declined 13% year-on-year to 77,821 units
while Tata Motors’ passenger vehicle sales slipped 44.6% YoY.
On the other hand, IT,
realty and metal counters were the only saving grace in today's session.
Gainers –
Infosys, Wipro, Bharti
Airtel, Dr Reddy's Laboratories, Tata Steel, Coal India, and Hindustan Unilever
were among the major gainers in Sensex & Nifty.
Losers -
Reliance Industries, Tata Motors, Sun Pharmaceutical,
ONGC, Hero MotoCorp, ITC, BHEL, L&T, Bajaj Auto, Maruti Suzuki, SBI and
Tata Power were among the major losers in Sensex & Nifty.
Sectoral –
Domestic Front
–
PMI –
May HSBC Manufacturing Purchasing Managers’ Index sank to
a 50-month low of 50.1 from 51 in April. This was its third straight monthly
fall.
Operating conditions
in the Indian manufacturing economy stagnated during May. The seasonally
adjusted HSBC Purchasing Managers’ Index™ (PMI™) – an indicator derived from
individual diffusion indices measuring changes in output, new orders,
employment, suppliers’ delivery times and stocks of purchases – fell from 51.0
in April to 50.1 and was at a 50-month low.
Global
Front –
UK PMI –
The UK manufacturing sector
continued its positive start to the second quarter of 2013. After returning to
growth in April, May saw operating conditions improve at the fastest pace in
over a year, with growth of production and new orders both accelerating. The
domestic market was the main driver of new order inflows, although new export
business also contributed with a modest increase.
At 51.3 in May, up from a
revised 50.2 in April, the seasonally adjusted Markit Purchasing Manager’s
Index (PMI) posted its highest reading since March 2012 and remained above the
neutral 50.0 mark for the second straight month. The expansion of manufacturing
output was broadbased in May, with growth registered by the consumer,
intermediate and investment goods sectors. The strongest performance was seen
at consumer goods producers. UK manufacturers generally linked higher output to
improved new order inflows, successful new product launches and efforts to
clear backlogs of work.
===================== MARKET OUTLOOK =====================
Now next big triggers are RBI
guidelines on 4th, 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 up 1.77% and
ended at 17.29 against previous close of 16.99.
FNO
PCR was 0.98 against previous close 0.xx.
Indian Rupee – Rupee declined further by 27 paisa and was trading at 56.76
against its previous close of XX.
The rupee continued
to haunt traders by hovering around its 11-month low.
There is a widespread concern
that the weakness in the rupee could prompt foreign institutional investors to
sell Indian shares.
According to experts, there could
be some amount of decoupling because some of the dollar strengthening is not
because per se emerging market (EM) weakening but it is purely a supply demand
tactic. He sees rupee touching 62 over next couple of months.
S&P 500 (US) was trading at 1628.31 down 2.43 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.
So if Nifty hold at least 100DMA then Private Bank,
Pharma and FMCG looks attractive.
Opening – Seems flat and some profit booking as well as cool off
can be seen after such a wonderful rally.
======================== 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.
Today
is important for TM as its holding 312, a good support and positive one but
after disappointing sales figure it would be interesting to see the effect, if
it holds 312 level then there is high chances to touch new high.
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.
RIL -
Reliance Industries slipped 2.3% after
output from its eastern offshore KG-D6 dipped below 15 million mmscmd.
Sun Pharma –
Sun Pharmaceutical
declined 2.7% in trade today. The Wall Street Journal said the company is in
talks to acquire Swedish drugmaker Meda for $5-6bn to boost its generics
business in developed markets.
Opto Circuits -
Global Medtech conglomerate Opto Circuits received one of its
worst poundings on Friday after it reported 95 percent fall in net profit for
the quarter ended March 2013. Shares of Opto Circuits plunged more than 30
percent to touch its 52-week low last week.
Speaking about its fourth quarter numbers, Vinod Ramnani of Opto
Circuits said it was below expectations and the company is taking steps
to address working capital issues. "We are trying to unlock valuations of
all subsidiaries," he told CNBC-TV18. The stock has partially recovered on
Monday. At 10. 25 AM, it was trading at Rs 33.40, up 6.03 percent.
Meanwhile, Ramnani said the company’s order book continues to be
healthy and India contributes a significant 25 percent to its overall business.
DLF –
DLF Ltd has guided for pre-sales of 8-10 million
square feet worth 60 billion rupees in fiscal 2014, up from 38 billion rupees
in fiscal 2013, according to Macquarie Capital Securities India, which cited an
analyst conference call.
DLF has also guided for net debt
of 170 billion rupees by the end of fiscal 2014, down 20 percent from fiscal
2013 levels, Macquarie said in a note to clients on Monday.
RBI to kickstart sale of
inflation – indexed bond on June 4 -
The Reserve Bank of India will
sell Rs 10-20 billion of inflation-indexed bonds on June 4, kickstarting
monthly sales of a new type of debt the country is introducing this year.
The Reserve Bank of India (RBI) y’day
released on its website, clarifications to queries on the Guidelines for
Licensing of New Banks in the Private Sector.
The Reserve Bank of India (RBI)
on Monday issued a series of clarifications against 443 queries sent by
external parties in relation to new banking licence guidelines that were issued
on February 22, 2013. The central bank, however, revised the validity period of
in-principal approval for setting up of a bank to 18 months from earlier 12
months.
What’s New: Validity period of
the in-principle approval
The validity of the in-principle approval for setting up of the NOFHC / bank was one year from the date of issue and would lapse automatically, thereafter.
RBI has decided to extend the validity period of the in-principle approval from one year to 18 months. It is expected that this would provide sufficient time for the Promoters/Promoter Group to comply with the various stipulations in the guidelines that would be set out while granting the in-principle approvals to successful applicants.
====================
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.
============
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Have a Profitable day – MG
