Morning
Bells (30 Jan 14)
Good Morning
Friends.
The trouble
with the world is that… the stupid are full of confidence and the intelligent
are full of doubts.
Royale Casino – was a perfect name for y’day. It
did like that only, no would have thought that 6050CE would bounce from 1.5 to
24, TM 350CE would bounce from 0.8 to 14.
It was one of finest day for us as I was sure what’s
going to happen today and it moved on expected lines. Very rare you get such
opportunity when you remain confident about your trades and that was the reason
we didn’t squared off CEs even they went down to almost 10% but it bounced
back. Such trades called CONFIDENT TRADES, even levels were too perfect whether
it was HCL Tech or TM or Nifty.
I didn’t find any call writer on board else I had
so many trades on that counter.
Well, welcome to new expiry. Nothing to assure
here, just have a look to some key fact which will decide further course of
market direction.
Federal Reserve’s Ben Bernanke, in its last meeting as a chairman,
reduced monthly bond purchases by another USD 10 billion to USD 65 billion
while upgrading assessment of economy’s performance.
The market is worried because the inflow of foreign money may come down
going forward as the Fed said the tapering will continue. The tapering may push
foreign capital outflow from emerging markets, but that (tapering) is bullish
for emerging markets, experts believe.
Some FIIs still says they are not worried about market reaction to Fed
taper and emerging market slide. They expect healthy returns from emerging markets
like India in 2014.
Another jolt for the market was China’s Markit/HSBC final manufacturing
PMI for January that dipped to 49.5 from December's 50.5, the lowest in last
six months. It highlighted that the business conditions for China's
manufacturers worsened in January and a reading below 50 indicates a
contraction.
Meanwhile, the rupee closed at 62.56 against the US dollar, down 15
paise compared to previous day's closing value.
Foreign institutional investors have net sold Rs 430.20 crore worth of
shares today while domestic institutional investors bought Rs 132 crore of
shares, as per provisional data available on the NSE.
DAY IT
WAS -
Traders and investors preferred to remain on the
sidelines ahead of the F&O expiry. The Fed’s also dampened the sentiment.
MARKET OUTLOOK -
Now two views, as Nifty bounced from our level 6020
so we can expect Nifty to move some level of 6230 and or it may test levels
6020-5980-5940. So just take a look at market first and then decide your course
of action.
But on broad basis it would remain sell on rally
till it don’t turn into pre-election rally.
Till now we are in MG’s trading range -
Now resistances are 6235- 6330 – 6357 - 6415 and
supports are 6235-6140/6110-6020/5980.
FINAL
WORD -
As told I turned bearish on market with small
trades till Nifty don’t come out of range. Also its suggesting that shorts can
be taken at higher levels or say its sell on rise market. Keep SL 6141/6235 for
shorts and for longs 6020/5980.
EVENT CALENDER –
27
Jan – Q3 HUL
28
Jan – RBI monetary review policy / Q3 –
Maruti, SesaSter, JSPL, NTPC
29
Jan - Q3 - BhartiAirtel, GAIL
30
Jan - Q3 - HeroMoto
31
Jan - Fiscal Deficit No. / Q3 - BHEL,
IDFC, Lupin, PNB
TRADE IDEAS–
HeroMoto –
Hero Motocorop, which announced Q3 earnings after
market hours, slipped 3.5 percent. The world’s largest two-wheeler manufacturer
reported 7.5 percent growth (year-on-year), less-than-expected, in net profit
at Rs 524.6 crore in the quarter gone by, impacted by higher tax rate, raw
material cost and advertisement spends.
AshokLey –
Commercial Vehicle maker Ashok Leyland on Thursday launched two new
light commercial vehicles (LCVs) -- PARTNER truck and MiTR bus, an LCV bus, the
latest offering from the Ashok Leyland-Nissan JV stable.
The company said it is taking efforts to expand exports and is looking
to increase its footprint in the LCV segment. “The new launches will help fill
the gap in product portfolio,” said V Sumantran, Vice-Chairman, Ashok Leyland.
BOI –
Public sector lender Bank of India disappointed street with the third
quarter net profit falling 27 percent to Rs 586 crore on account of higher
provisions. Net interest income grew 17.8 percent, slightly
higher-than-expected, to Rs 2,719 crore in the quarter ended December 2013 as
against Rs 2,308 crore in same quarter last year.
OPEN CALL -
Jai
Hind.
Be
on board. Have a profitable day.
