Good Morning Friends.
Today’s MG Mantra –
Disclaimer
– I have shared my view as per my limited knowledge; please use your own skills
to make a wise decision before execution of trade.
Word of Caution - Those who
don’t have patience and are not willing to book loss also in cases don’t enter
this market.
There are 3 kinds
of students in general. 1- Some make wonders happen! 2. Some see wonders
happen! 3. Other wonders what happened!
So, finally Nifty ended 34
points down on Friday due to some selling pressure in the Power, Metals,
Capital Goods, Auto and the Banking stocks. Even we have seen some offloading
in the Mid-Cap and the Small-Cap stocks too. Market participants were cautious
as a two-day European Union summit got underway in Brussels.
On home ground Aviation regulator DGCA has suspended
the flying licence of Kingfisher Airlines for failing to come up with a viable
plan for its financial and operational revival and resolve the impasse with its
employees over payment of their salary dues. The Directorate General of Civil
Aviation (DGCA) has suspended the Scheduled Operator Permit of Kingfisher
Airlines till further orders, Civil Aviation Ministry officials said. KFA has debt
burden of another over Rs 7,524 crore. (Reports Moneycontro.com)
Market regulator Securities and Exchange Board of
India (Sebi) has set a one-year target to complete investigations, saying that
the long-drawn probe processes are a thing of past and manipulators can't
escape the long arm of the law. "The impression about market manipulators
going scot-free or the enforcement action getting delayed for years are all matters
of the past," Sebi chairman UK Sinha told PTI in an interview.
On corporate earning side, TCS has announced
good result and above market expert’s expectation. Market analysts were expecting
TCS to report 3.5-4%. TCS posted net profit of Rs. 34343.70 mn for the
quarter ended September 30, 2012 as compared to Rs. 23010mn for the quarter
ended September 30, 2011.
Another major player ITC Ltd has also
posted good result with a net profit of Rs. 18364.20 mn for the quarter ended
September 30, 2012 as compared to Rs. 15143.10 mn for the quarter ended
September 30, 2011.
On Global front the U.S. stocks
ended slightly with a negative bias in the previous trading session after
disappointing results from Google and Microsoft. Google Inc reported
consolidated revenues of US$14.10bn for the quarter ended September 30, 2012,
an increase of 45% compared to Q3 of 2011, while Microsoft Corp announced
quarterly revenue of US$16.01bn for the quarter ended Sept. 30, 2012.
MARKET OUTLOOK –
Ahead of expiry seems bears are
trying to nod bulls but market seems in bullish phase and bulls are gearing up
to drive Nifty up ahead of festive seasons, but of course after expiry, they
are just waiting for expiry as its again one day short trading week.
So finally it closed below 5700
mark, as told, since past 2 weeks they playing passing the ball, had also
informed that they could give a miss on Friday and same has happened. Still
Nifty is trading in 5630-5730 range since a long time. Market may be highly
volatile as it has only 3 trading sessions.
Best idea is to stay sideline
till Nifty don’t break this trading range as its giving sense for something
big. Its
still in No Trade Zone, one can make only Intraday position or can wait for
breakout of level either side.
NIFTY OUTLOOK –
FII DERIVATIVES
STATISTICS FOR 19-Oct-2012
|
|||||||
BUY
|
SELL
|
OI AT THE END OF
THE DAY
|
Difference
|
||||
No. of contracts
|
Amt in Crores
|
No. of contracts
|
Amt in Crores
|
No. of contracts
|
Amt in Crores
|
||
INDEX FUTURES
|
55801
|
1589.21
|
66577
|
1871.75
|
622617
|
15622.37
|
-282.53
|
INDEX OPTIONS
|
701360
|
19949.16
|
681339
|
19387.15
|
1859086
|
52857.20
|
562.01
|
STOCK FUTURES
|
169366
|
4868.11
|
168258
|
4893.88
|
1072645
|
31401.69
|
-25.76
|
STOCK OPTIONS
|
62555
|
1903.33
|
62560
|
1918.88
|
92284
|
2919.92
|
-15.55
|
So
as we see clearly that FII has taken short position in Nifty. 5800CE has
highest OI of 1.10 Crore with addition of 15.5 lacs, while 5900CE & 5700CE
has OI 64 lacs & 62 Lacs. 5700 PE OI has come to 75.89 Lacs with unwinding
of 11.6 Lacs.
India
Vix slipped another day and closed to 14.54 and Nifty PCR is 0.93.
Now
Resistance comes to 5710 - 5737 – 5762 and Supports comes to 5658 – 5632 - 5607.
Trend is not clear, so No trade zone,
sitting on cash is always good, just watch out for breakout of any support or
resistance will only give clear indication. Buying momentum is likely to
accelerate above 5745 levels, and then Nifty may retest 5800+.
Opening seems subdued say with
slightly negative bias.
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 can decide stock move either side.)
My top pick for next 3 months are – Cement, Infra
& Banks – yes not blindly to any stock, in select good stocks only.
Realty
Sector –
Is set to move big after expiry ahead of festive
season.
Steel
Sector –
Steel seems under pressure.
Tata Steel – Has broken
out its support level and can test 400 mark in coming sessions.
Power
Sector –
For
slow but steady gain is seen. Keep eye for Mid to Long term bet.
Banks
Sector –
May see some pressure.
IT Sector –
IT
was on buying radar on Friday and will continue.
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 profit if Nifty shows strength.
DhanBank -
@55 for TG 70 SL 45
Jindal Photo -
@145 for TG 160+ SL 130
Omkar Chemicals – Bought
@102 for TG 115 SL 83
Its No Trading Zone, watch for breakout of
either side else play only Intraday and close positions before market close.
Have
a Profitable day – MG
