Morning Bells (17 Sept. 12)

Good Morning Friends,

So finally Govt. makes it T20, Marta Kya Na Karta, after fuel hike now Govt. has approved FDI too, and its turn for RBI, though inflation is much above comfort level so only expectation for CRR for 25 point is on card. Nothing much hurt the market on reform part except further political situations. However Govt. has got enough time to handle the ruckus. But now market will go volatile even on small political development whichever will go against stability of Govt.

I have already share my deep thought about Govt. move and further possibilities on political front on MCB & on my blog under Weekend Special post. One can still catch it on blog easily.

On Friday evening, the Govt. allowed FDI - 51% in multi-brand retail, 49% in aviation and raised the FDI cap in broadcasting from 49% to 74%. Many of the stocks from these sectors have already seen a rally in past few days on hopes of these decisions and the upmove is likely to continue on Monday so stocks of aviation, retail and cable companies are likely to be on buyers' radar.

MARKET OUTLOOK -

Fed and ECB actions had their immediate impacts on inflation as the commodity prices rose instantly across the globe. So if RBI somehow joins the party (why I am thinking because now $ stock will grow so if in any chance RBI thinks to take risk) will bad news for those who are expecting Nifty correction and expiry will go above 5500.

After FDI announcement today market will continue with the momentum, enjoy the ride.

NIFTY –

Bulls are partying at the moment and today also it will be good day for them. Sentiments have boosted already.

So as per current data I do not see weakness in Nifty. 52 week high is 5630 and that’s suggested Nifty will face first resistance at 5630 – 5650 -5685, then my final range for Nifty is 5650-5685 where Nifty can go for correction if market continue with uptrend. Trend remains bullish till 5390 is safe on closing basis.

PCR at 1.06 & Iindia Vix 15.38. Huge unwinding seen in 5400, 5500 & 5600 calls, while 17 lac share were added to 5800 call. Fresh shorts were created in 5600 & 5500 PUT. Now 5600 call & 5300 Put has highest OI and that’s most of us are expecting correction. Huge addition in a single day (i.e. on 14^th) to 5600 Put giving sense bears will fight tough and give a try to close Nifty below 5600 after having gap-up today. DII are still on sell counter while FII is on Buy counter, let see what in store today for both.

Another gap-up opening is on card, to my view Nifty will open either somewhere around 5605 or between 5620-5625.

STOCK OUTLOOK -

Coal Blocks - The inter-ministerial group (IMG) on coal blocks has decided to recommend cancellation of two mines awarded to Bhushan Steel & SKS Ispat & Power, so stock will be on sellers RADAR. Panel had also recommended cancellation of Gouganrdih ABC mine given jointly to JSW Steel and Himachal EMTA. Recommendation for Tata Steel, Reliance Power, Bhushan Steel blocks reviewed. - Source MoneyControl.com

Banks – Will remain volatile with upmove.

DiD – Stock will remain in news & on buyers RADAR - Hindustan Copper, Oil India, Nalco, Neyveli Lignite, MMTC and Rail India Technical and Economical Services (RITES) due to IPO planning.

TM- will face resistance 273, 276-282 is the range from where we can expect correction, while support comes to 264 & 259. Do not make fresh position on this counter today till RBI announcement, wait and watch will be good for wealth.

Sesa Goa & Sterlite Industry - Goa has temporarily suspended all mining activities, effective from Tuesday, after an expert panel formed by the central government found "serious illegalities and irregularities" in mining operations, according to reports. Reports stated that Goa has not banned movement of iron ore already produced and stored at ports or in transit. Sesa Goa and Sterlite Industries will be most affected stocks if anything goes against mining orders. Be safe on this counters.

OPEN CALLS –

Right now I have only 1 open call, all other I have closed with good profit booking.

Cox&Kings - TG 148, SL 121

Today’s MG Mantra –

Market is expected for correction which can take place as per operators convenience -1 (i.e. from today) or +2 (i.e. as ppl expecting on Tue, so could be from Thus). Trade with strict SL is suggested and don’t set big TGs.

Have a Profitable day – MG

Disclaimer – I have shared my view as per my limited knowledge; please use your own skills before making a wise decision.