Monthly Archives: September 2011

#102 Nifty Update

§  NIFTY Close:
Investors in Garba mood!!!! Today NIFTY fluctuated from Positive to negative giving a start to Navratri Today. NIFTY closed near to my support level of 4945 down by around 30 points. We expect NIFTY to remain same tomorrow.
§  IN- HOUSE Updates:
1.        ADAG had a Annual general meeting yesterday and Anil Ambani promised many new ideas which made its shares who had lost almost thrice then what index lost last year to recover in this 2  session. He said that many companies from foreign are seeing interest in getting stake in its AMC and Nippon deal is almost final. He even assured that Tower business of R-Com will be sold soon and promoters are likely to increase their stake to maximum possible limit of 75%.  So now I think Anil ambani got the vibes that ultimately he has to do something to save his companies…Where were u till now Mr. Ambani…anyways I hope that this gives a light of hopes to his group  of companies.
RCOM Technical’s:-
Rcom has been facing resistance near to 86 level and has a strong support at 72 levels which is making stock a range bound. On monthly basis stock has witnessed increasing volumes. Buy the stock on dips.
2.       Talking about the steel hero “TATA Steel”  it has been facing some beating from investors on the screen. But fundamentally we may see some good numbers this time around. Last FY we had many CAPEX but this year they have pressure in sales volume but they don’t have much CAPEX. Infact they have sales proceeds from the sale of its one arm of business. So I recommend buying the stock currently at this valuation.
Tata Steel Technical’s:-
On weekly chart we have seen a negative divergence of RSI and Price. Even a Doji has been formed on weekly chart. Stock has strong support around 418 levels so buy the stock on dips.
3.       In the Auto Industry, we have seen a great volatility in TATA motors after its split 2 weeks ago. India Sales of JLP is not cashing in much. Indian Business should be more pushed . Jaguar has low margins than Rand lover. So RL should be marketed more in markets like china and India. But analyst expect a good sales next FY for JLR in india and stock looks attractive at CMP.
TATA Motors Technical’s:-
On weekly chart stock has been taking strong support at 137 levels. Weekly    RSI and MACD has given a bullish crossover. On daily chart we have a gap downside around 148 level which will be the best level to buy the stock
4.      Coal India in trouble:- Coal India wagers have planned to go on  strike and have kept company in a great dilemma. They have demanded a bonus of Rs.25000/worker by October 10th or else they will stop working. Now if company accepts the offer then it will affect its balance sheet with almost about 4500 million rupees which is a significant amount and if they don’t accept then they will face company image. On other side even the environmental problem has been pending so now stock has to face beatings from the investors. Long term players can take this as a opportunity to buy.
Coal India Technical’s
Technically stock has been trading below all the moving averages and it’s at a crucial level. It has been seen that environmental issue has already been discounted so may see a bounce back from this levels.RSI and MACD has seen a bounce back from oversold zone.
There is the same story chewing in the global markets and that is of financial crisis.  But we witnessed a interesting interview of german chancellor saying that they have extended full support to Greece and it promised Greece visiting president that they will get bailout by next month from EU and IMF. Germany even said that they want Greece to be very much part of the EU. So we can expect a good month ahead in the markets all over the world.
As expected NIFTY has been range bound due to expiry tomorrow. I am noticing again a formation of Inverted H&S and neckline is at 5167. Head is yet to form. We have strong support at 4911 but we may see a intraday fall upto 4885. Therefore short term traders can go short once NIFTY is at 5167 in near term with a target of 4885. Long term investor wait for a bounce back from 5167.
NIFTY levels for 29th Sept:

#101 Nifty Update

§  NIFTY Close:
Nifty closed at 4971 way above the expectation almost 140 points up above yesterday’s closing. All the frontline script had seen a good movement except the few like Hero Moto, Tata Steel etc.
§  IN- HOUSE Updates:
§  Today a DBS report said that India’s 2020 Growth story will be achieved at ease and the leading  sectors will be education, Infrastructure and FMCG. I agree with it because we know that most of the Indian Population is below the age of 28 at present and importance of education amongst the country is flowing high. While on other side Infrastructure is a must for all so we may see this 2 sectors booming a lot. Education stocks are on downside today as they are in news but infrastructure stocks are a good buy at CMP. Stocks like HDIL
§  HDIL Technical’s:
                                                               i.      Stock has seen a strong support around the 96 levels and its currently trading around the short-term moving averages which is a sign of consolidation. Long term investors may buy the stock with SL of 90 as RSI has given the Bullish crossover.
§  As I have been mentioning about the consumer goods company, same thing has been nicely said by HDFC Securities that  they have seen a steep rise in numbers even due to pressure in margins. The key being the rural market penetration and now they expect that commodity prices will ease which will add a cherry on the ice-cream . So I too continuously recommend to have at-least one FMCG stock in your portfolio like HUL or ITC.
§  As I have already mentioned about infrastructure in first point, I want to add more from a CITI group report that south India is the hot cake for real estate. Prices have been stable but volumes have dipped. But banglore and Chennai have seen the best volumes. Mumbai has been worst hit in the infrastructure companies so go for the companies of southern India.
§  Steel sector has been in news and today JSW Steel declared that they might have to close down plant in Karnataka due to shortage of Iron ore. Already it has been downgraded by many firms before and today it was again downgraded by almost all the firms with the revise tgt of around 500. So I recommend you guys to exit the stock
§  JSW Steel Technical’s:
All the indicators are showing bears in the driving seat. It is trading below all the moving averages which is also negative sign
CMP:610 Downside tgt- 593,463
§  Titan Industries have seen a great fall in last 3 sessions majorly due to the fall in price of gold. But fundamentally it is getting stronger because of its various new steps. Firstly they are going to introduce low profile jewellery for middle class and they are penetrating the rural areas. They are getting a first mover advantage so they will get better sales figures. Secondly, prices of eyewear and watches are hiking which will improve the margins of the company. And lastly they have tied up with the Muthoot finance company in Andhra Pradesh which will provide customers jewellery  on finance with just 20% upfront payment. And of-course rakesh jhunjhunwala has this stock so we should also have this in our portfolio.
§  Titan Technicals:
Titan has been trading in upside channel since its listing and volumes are gradually increasing. Stock has been taking strong support at 200 DEMA. So I recommend buying on each dip
CMP:212  Upside tgt: 223/240
§  English banks have got a funding gap of $3.96 trillion which is huge and to finance them they are approaching mutual funds and other financial subsidiaries. So please god help us fight the crisis otherwise we will see 4000 on NIFTY for sure.
§  On other hand people are talking about growth story of china but if u all have not read then in a City named “Wenzhou” in china, have started witnessing sub-prime crisis. In last week 9 businessmen have ran away due to debt and that has left 1000 of employers in shock. Monetary tightening has made it difficult of SME to get loan from banks so they had approach local money lenders who have charged high interest. It is said that even selling of real estate haven’t helped them to repay. So guys china may see a downfall.
§  Europe and US are trading way above the support levels on the news that IMF and world bank are ready to help the Crisis affected countries. This news have sparked the momentum in stock markets across the globe and it is expected to remain the same for few more days. So people with long cheers!!!
§  Technically NIFTY has given a False “double top” as we couldn’t get a third close today below 4900 level. Today’s session was a gap up opening , now leaving a 3 gaps . NIFTY is at very crucial level and it is totally driven by foreign markets. Expiry is near and we may even see high volatile session due to the same in next 2 days.  Stochastic has turned from the oversold zone while RSI and MACD are showing slight biasness towards bulls. But now as we even have a gap below the current level be cautious in short term investment.
NIFTY levels for 28th Sept:

#100 Nifty Update

·       NIFTY had opened at crucial level of 4875 and then we saw a low of 4758. People would have been in panic but I had sensed a reversal as there was a negative divergence on the hourly chart. NIFTY closed at 4835 just 32 points down.
·       PIPAVAV-MDL deal at Halt:- After the written complaint by many private shipyard owners such as LT and ABGShipyard , ministry has kept the JV at Halt. This complains were regarding transparency of the bidding process. This JV could lead to Rs.1 lakh crore  order which is the reason ministry is going carefully ahead.
o Technically stock has seen a continues down side from the day this complains had been lodged. Volumes have been decreasing and many Doji’s are witnessed on the chart which clearly suggests indecisiveness between bulls and bears due to this uncertainty of JV. So avoid the stock until clearance of JV. If the JV is in favor of PIPAVAV then surely have this stock in portfolio.
·       Banking sector:
o Technically Speaking banking sector seems to recover soon as have seen high volumes today on the market recovery in the last. I would like to suggest you to go for HDFC Bank, ICICI , SBIN and Axisbank for short term as these will be stocks to lead the market.
·       Reliance KG Basin: Reliance has been in news since its dispute with the ministry regarding the cost at KG-6 basin. Stock has been beaten hardly and it is expected the reliance may be sued for wrongly posting the higher cost. It has not been able to achieve the target of extraction from the basin which it had promised 2 years back. So stock seems to be volatile.
o Technically stock had given the double top breakout at 800 with downside tgt of 840 which has been achieved today. I expect stock to consolidate at current levels between 750-800 until the clearance of its issue of KG-6. So avoid this stocl.
·      Greece has been the concern and it still remains the concern but we have seen a sharp recovery in many markets as EU said that if not Bailout then they surely will come out with some strategies to save Gree
ce. This statement got markets boomed on Friday and continued today. Most of the Greece banks holding government papers have been downgraded by a notch but still every1 hopes that EU will find a way-out. We should keep our fingers crossed.
·      IMF on 24 sept told that they are ready to help Greece and other Europe countries to fight this crisis. This one statement has given the global market hope of some recovery and we expect DJIA to open positive tonight. Futures of DJIA are trading way above expectations after the biggest weekly erase last week since 2008.
·       NIFTY has confirmed the double top breakout but still one more close below 4900 has to be given. Bulls and bears are indecisive since last 2 days and viewing the global market we expect and short term recovery. Technically NIFTY is very dangerous so don’t go short but risk taker may be long on NIFTY for a week with strict SL.
NIFTY levels for 27th September:-            
R-4885                 S-4818
R-4911                  S-4785
R-4965                  S-4760
R-4995                  S-4720

#99 Nifty Update

NIFTY has seen a blood bath since last week. And it seems to have changed its path from a Bullish reversal of Inverted H&S to more bearish “Double top” formation. Double top breakout had been seen and now target comes around 4650 if we see close below 4900 for 2 more days. But foreign markets seem to have seen short covering on the Friday so we might see some profit booking this week. Expiry seems to be too volatile this month. Now we could see that another gap has been created last week around 5150-5050 . So in total we have 2 gaps upside which needs to be fill up any time soon theoretically. NIFTY has been trading below all the moving averages since last week. Now question arises what NIFTY trades positive next week??? Don’t get carried away. Markets are expected to be bearish or range bound between 4900-5200. So breakout of any level by this expiry will decide the trend for next month. If we see global markets they are certainly in negative sentiments. Greece is expected to go bankrupt within next 15 days if they are not given a bailout. On other side EU have asked Greece to reduced budget deficit to get bail out. Greece did increase property tax but effect of that can’t be seen so soon. So Europe markets are expected to extreme levels next month on decision of whether Greece is to be given another bailout package or not. Talking about US, conditions are worsening. Obama has given a tax increase plan but that is only too extent of $400 billion and which too cannot avail benefits in reduction in short term. But I feel until employment doesn’t push up we cannot see any good things in US. Prominent Banks in America are getting downgraded by top rating commission which is also a downside. Bernake added more fear by mentioning that US economy couldn’t recover until mid-2013. But analyst says that Emerging markets such as India and China are ought to recover first as valuation are cheap but for sure first we will get affected against this turmoil. Rupee is depreciated to almost life time high while gold and silver are touching lower circuits. So we could conclude that we may see some downside in stock market in recent future but then we might recover fast than any other developed markets. Our strategy could be buying 10% of long term portfolio on every dips of 5% in your preferred stock. But surely be cautious on Intraday position next week. And yeah I prefer Banks and Steel sector at current valuation. Wish you all a Happy trading ahead!!!!!

#98 Nifty Update: NIFTY passed Away

NIFTY is the only 3rd person in INDIA after Sachin and Sensex to score 200 runs in ONE DAY!!! Today is my shortest message for NIFTY Diagnosis….Just one advise “Pack up your bags and go on vacation”…….No technicals nor Fundamentals will work for our markets…Just wait for Americans and Europe to settle until then sit quietly……Today i wont mention any levels for NIFTY tomorrow because its of no use…But hold your long term investment and add on each dips…..Market will be volatile and be CAUTIOUS …..Market may touch 4400 if 4780 is breached on long term…..

#97 Nifty Update

·       NIFTY had opened at crucial resistance which i mentioned at 5153 and closed almost flat and the session was range bound as expected. Market closed at 5133 down by 7 points.
·       NTPC to Exit:- NTPC to exit IVRCL consortium as they havent performed as requirement. Since last 6 years the company has not even to acquire any coal mine for which the consortium was formed. So avoid the stock.
o Technically IVRCL is making lower highs since its listing so you should exit the stock on rise
·       NMDC won:- I had mentioned about the NMDC takeover of legacy in Australia before 2 days which is been accepted by legacy. This implies that NMDC will get access to coal mine in Australia which will good for company currently as domestically environmental clearance issue is on. So it wont affect the companies production
o Technically NMDC has given a reversal from the downside. Monthly chart has given a bullish engulfing and Weekly chart is also suggesting a bull run ahead. You may buy this stock on each dip for the long term
·       Everonn sold stake to Dubai- Varkey Group: Everonn stock was in news as its MD is in Jail but they declared that they have sold stake to dubai group at a rate of Rs 543/share which is way below CMP. Therefore you should buy this stock for short term with target of 543
o Technically seeing volumes have increased tremendously since last few days. All the indicators are suggesting a buy while monthly chart has formed a dragon fly Doji which is bullish sign..
·      Coal Shortage: Power sector is facing coal shortage in the country due to mining constrain and not efficient transport facility. Coal India is the company to look out with NMDC for this sense. They both are the largest supplier of coal in India so they may get good margins which will improve their profits this quarter so have this stocks in your short term portfolio.
o Technically Coal India has given close above all the moving averages confirming the previous Dragon fly Doji. RSI has given bullish crossover while MACD is moving towards the central line. So you may buy the stock with SL of 370
·      Today is the deciding day for Crisis. FOMC meet is going to end today and results will be out around 2am IST. Everyone’s eyes is gonna be on Bernake. Be ready for the volatile opening tomorrow.
·      Housing data was out yesterday which came to low near to April in US economy. That was the major reason for the Downside of US markets yesterday. Today it will be a cautious market for US.
·       NIFTY has confirmed the Inverted H&S but we havent noticed a breakout yet. Volumes have increase marginally and Indicators are still on the bulls side. While PCR is around 1.06 which states Bulls and bears are equal in  strength. Now today’s FOMC meet output will decide the further trade in NIFTY. Hold my Long call on NIFTY with SL 
NIFTY levels for 22cd September:-
R-5153                 S-5107
R-5188                  S-5072
R-5209                  S-5040
R-5233                  S-4995

#96 Nifty Update

NIFTY View:-
  • NIFTY was  the out-performer today with a sweeping 108 to close at 5140. We had seen a high buying interest in NIFTY and its stocks as NIFTY crossed 5100 mark. Banking stock and Education stocks were leading the race while Auto stocks were lagging behind. Steel sector had seen a marginal move. I feel steel and Banking sector will be the leading hero in next rally. 
  •  Fortis the Big-B of Pharma Sector:- Fortis healthcare is going to acquire hospitals in singapore and will become one the biggest chain in Asia. Its revenue is likely to touch Rs.4800 crore after acquistion. So you can have this stock in your portfolio.
  • Maruti Stock shrinks: Maruti Suzuki strike is affecting stocks at dealers in South. This is a bad sign for the company and they might lose heavy sales volume during festive season. So better be away from this stock in near future
  • Sun-TVs profits to slide down: Sun TV profits to slide as said by sources as high interest cost to affect the company’s balance sheet. They may post a lower growth thsi quarter so if you are holding it then you must book profits and exit.
  • GTL got approval:- GTL gets approval to re-structure its $1billion debts. there are 16 Banks for the same and they are given 60 days to decide on it. This news might spurt up the stock for short term. So you may buy it for short term investment
  • BGR Energy one order nt enough:- BGR had spurred up by 14% on the bag of 1 order but analyst say that this is not enough for the company’s future. But i am still neutral on the stock and you must be on the bulls for the stock.
  • Reliance may be sued:- Reliance industry may be sued as said by CBI for the in-appropriate production at KG Basin .But this news won’t affect stock price much as it has already been discounted so hold your longs on the stock.
  • Cement season:- Cement demand to spike as post monsoon is the best time for infrastructure development. And rise in cement price will also improve quarterly results for the companies so go for the cement stock for next 2 quarters.
  • Obama raise $3trillion tax bill: Yesterday Obama declared $3 Billion plan to raise taxes for higher income people. Common man appreciated it but opposition says this is the political stunt and this is practically not feasibly. But on investor part of view it will bring short term rally and we must be bullish. Dow Jones has strong resistance at 11700.
NIFTY Technicals:-
  • NIFTY has closed above the strong resistance level of 5072 with higher volumes and the inverted H&S is still intact.You can notice in the graph that NIFTY has closed exactly at the neckline and one more close above 5140 with higher volumes may take NIFTY to 5400 once. MACD and RSI are suggesting bulls for short term rally. NIFTY is expected to fill up the gap at 5300. So i suggest to hold your longs on NIFTY
NIFTY levels for 21st September:-
R-5153                 S-5107
R-5188                  S-5072
R-5209                  S-5040
R-5233                  S-4995

#95 Nifty Update

·       Nifty closed down at 5031 down by almost 52 points. Mixed global cues and worry about euro crisis is affecting the down side for the markets
·      Two Wheeler’s margins to Shrink:- People are talking about slow down in automobile sector but 2 wheeler sector has seen a growth in their business but the concern now is that margins are about to shrink as tax holidays and Duty drawback schemes to hit companies margin.
·      Pride for Gujarat:- Fords and Peugeot followed TATA motors to come to gujarat.. But that is not the end of the list. Now Even Two Wheelers manufacturers are planning to have their Plants near sanand. Bajaj, Hero and Maruti to be next immigrants to gujarat. Jai Ho!!!
·       NMDC back in news:- We had just heard about their Australian JV with legacy but now as you know it the only company which is allowed to mine in karnataka. Therefore this monopoly of them will lead to good profit margins this quarter. So better have this stock in pocket.
·       GVKPIL turnaround story:- GVKPIL has lost almost 80% of its market cap since Jan 2008. Investors are worried about its cash deficit but i feel the company is on a turnaround plan. They just overtook Hancock coal mine in Australia. Ofcourse they have to infuse fund but for long term they are gonna have a good revenue from the same. So you must buy this stock at such a cheaper valuation of around Rs.17
·       ECB:-External Commercial Borrowings limit has been raised to $30billion ofr the company and they are allowed to raise in chinese yuan. But will this step make easy funding for the corporates? Seeing such a slow down in IIP will it attract FII to our counrtry?? I Think government should have tightened the limit because this is just raising debt of the companies making it more difficult for the future.
·      Greece is in dilemma:- Greece is on the verge of crisis but the last hope is 109 Billion pounds bailout but that has been temporarily denied by EU unless greece proves that they have taken step to reduce deficit. On the other side, to reduce deficit Greece has to close down many government bodies and increase tax which could lead to people protest and a re-election. So now big question remains can this crisis be saved?? 
·       Higher Tax for wealthier in US: Today Obama is gonna speak on how to reduce deficit and road to reach that destination. It is expected by people that he will increase the Tax slab for the wealthier people. This will help to a great extent for US to save them from crisis.  
·       JLR to launch new engine plant in UK worth of $630million. This will boost employment in UK. Even Britain government has thought to be a helping hand.
NIFTY Technical’s:-
·      Technically NIFTY indicators are flat. NIFTY is trading in a range of 4900-5100. Volumes have been decreasing in the market which is a concern for SEBI and both the national exchanges. Right now there is not much specific strategy for NIFTY but hold your longs with a strict SL.
NIFTY levels for 20th September:-
R-5072                 S-5017
R-5095                  S-4985
R-5127                  S-4965
R-5153                  S-4911

#94 Nifty Update

Pheewww!!! Finally it closed above strong resistance level of 5072. But be cautious it has exactly closed there so market can go either way!! NIFTY closed 75 points up while NIFTY future last trade was at 5097.


·            RBI RBI RBI…Thats what on every1’s mind ..Yeah..tomorrow is the big day… but i feel RBI is not going to give any rate hike. Why?? Firstly because we have seen sharp decrease in IIP which is a major concern..>Secondly, RBI was the first bank around the world to start rate hikes so i think we should pause. and Third, SBIN is showing negative divergence on the chart which means its bullish and we show heavy buying today and it formed “morning star pattern” which is bullish. 
·            Just in- Prices of petrol has been increased by around Rs.3…Thank god I am done with my college life…!! Guys it gonna be expensive to have girlfriends..Single is better 😉
·      ATF (Aviation Turbine Fuel) rate has been increased by OMC (Oil Marketing Companies) which led the aviation stock down yesterday. So be cautious on fundamental side as this will squeeze their margins in such a recession period
·         INFY is seeing high buying interest since yesterday because sources have said that they are planning to purchase a US IT firm which its presence in Health care segment so its again a good news for IT sector after TCS JV with Malaysian Prodata company.
·         Retail sector has not yet got its cream on its cake. FDI limit increase in the sector has been postponed to next fiscal year. This is getting lil bit tough for the bill to be passed. And i surely think it will effect 
·         Reasons to smile for the ADAG group fans or investors. Their subsidiary company Rel cap got approval from IRDA for Nippon life stake sale and CBI has giving a little relief to rcom in 2g case.. But i personally doubt can RCOM reach 600 by Jan…No?? Then what will it do of FCCB conversion due in Jan…Guys stay away from the stock. And ADAG is gonna sake 700 executives….Ghossh!!!1 thts huge…but ofcourse it will improve that profit margins alot.
·       One of my favorite sector back in news i.e., Mining sector… NMDC is planning to buy 50% stake in Legacy mine in australia..Now this was third in a row in this month 1)Sail Consortium in Afghanistan 2) Essar Steel in Zimbabwe and this was third…Steel sector will be the most performing after banking. So go for it guys
·       Tata steel is going to invest $800 million in just improvement program in UK for next 5 years..Thats really good …but I hope its worth and people make it cost effective on later stage for the company.
·         Power sector back in news…but dont worry this tym they are not gonna export power but CESC has joined hands with Shanghai electricity company for equipments marketing. Power companies trying to cop up with their lagging…can they do that?? i still doubt so be neutral for the sector
·             Pipavav Magazon deal opposed by LT…YEH india hai dude…No1 gets piece of cake easily. LT has asked government to review the selection of Pipavav..No deal in India can go easily…Dont u think??
·         Cairn-Vedanta finally approved by shareholders…I think they are ready to pay royalty on Rajasthan mine
·         Marico was down on the concern of weak quarter earnings…As usual company MD said on TV that we are fine and blah blah..but tell him dude..we are not blind…even better companies are gonna perform worse…how can u?? If u can we should salute the CEO
·      Nothing much to say in global news but just one thing that china has confirmed that they might buy bonds of the crisis affected countries…but damn…where is china getting money from??? I think china is playing a game …they will ask target company to buy their products…One day whole world will be china product..huh huh
·       Greece to remain in Euro zone it wa
s declared yesterday EU is planning to issue common debt   instruments of EU…hope this plan work and Greece is bailed out.
·         Technically speaking market has closed at strong weekly resistance at 5075..5072 was what i mentioned…Still inverted Head shoulder is valid as Volume characteristics is confirming it. Hold your long if you bought today as i said yesterday..Banking and Real estate sector to be next hero’s if RBI supports us.
NIFTY levels for 16th September:-
R-5095                 S-5030
R-5127                  S-4985
R-5153                  S-4965
R-5127                  S-4911

#92 Nifty Update

“Dhak-Dhak , Dhak-Dhak”…Nope its not the previous Hero Honda advertisement it was the heart beats of the investor that i could feel during the market hours today.NIFTY opened up on the back of good US markets and then saw a fall of almost 100 points from the days high to end at 4940 almost flat just 5 points down. NIFTY future has also closed at the same point after long time. 

Stock in news since last two days is TATA MOTORS..basically for 2 reasons one being the stock split from FV 10 to FV 2 and other being CEO Forster resignation on Friday on short notice. He was the key guy on the acquisition of JLR. Company official says that his resignation wont affect the JLR operation in india. NALCO (National Aluminum Company) a state-run company, operating in orrisa, is the third largest produce of aluminum had to reduce production of 6% on daily basis due to power supply cut. This is a shame to Indian government.. Dont you think?? If you just recollect before few days NHPC joined hands with Sri-lankan Ceylon Elec board to supply power…Damn, why dont you first fulfill our domestic needs??..Jaago Grahak Jaago!!! It is going to affect aluminum output up to 20000 tonnes. Stock buzz was of PIPAVAVYARD  who yesterday got selected by Mazagon dock (indian govt. co.) to manufacture Indian Navy vessels. This brought stock up by 15% in just two trading session. Jai Ho Gujarat!! Gujarati’s are rocking stock market ;). MCX on another side got the approval of IPO and they are planning offstake 12.5% of their holding. To boost Infra bonds government has decreased the minimum FII limit to $5billion and lock-in period is decreased to 1 year from 3 years. Industry official said lock-in period was not the problem but the problem was 20% tax that was levied by indian government on such investment. Another such issue was that IRDA (Insurance Regulatory and Development Authority) has planned to stop giving sanction to High NAV gurantee plans because they make market to fall further as they do heavy selling when they get small profits to avoid loss. So guys dont get attracted by Plans which gurantee’s u high NAV rather invest urself. Talking about the telecom sector analyst expect that service providers will earn more as they give high devices compulsory with Data plans. But do remember Apple has been sued by CCI as they choose such bundled distribution channel and nt going through retail channels making it a monopoly. Tomorrow we have GDP and Inflation Data so guys keep a watch on it

German car maker Volkswagen’s JV with Suzuki will come to end. Suzuki was accused of using diesel engines of Fiat and they think Volkswagen is trying to advantage of their size over them. So they have offered $2.2billion for the Volkswagen stake. OPEC (Organization of Petroleum Exporting countries) has downgraded world crude demand for the next fiscal. They say world crisis will affect the crude most and demand is to decline drastically from US which is the largest pool of crude customers. They even said Demand-supply gap is about to get filled up fast as Libya’s Oil production will resume to normal by 18months,faster then expected.Yesterday Blast took place in France nuclear plant 2cd of its kind this year after Japan.  US banks are expected to post 45% less profit then expected by analyst due to crisis. So avoid Banking stock if you trade in US. But yesterday we saw sharp recovery in the US markets as the news ws flooded that China is expected to buy Italian bonds which may save Europe crisis temporarily. 

Today NIFTY in the morning gave a good start to cover the gap which i mentioned yesterday at 4990-5040. Now NIFTY is left with one gap around 5209-5330 which must be filled up sooner or later. MACD is still flat on daily chart without a bearish crossover so be cautious. A remarkable point to notice today was that NIFTY made a low at same point which it made yesterday making 4911 a strong support. NIFTY still has that “inverted head and Shoulder” intact.. More time it takes to built up more significant is the breakout of the pattern. So fingers crossed for the bulls. Strategy is yet to be cautious on NIFTY.

NIFTY levels for 14th September:-
R-4985                 S-4911
R-5017                  S-4882
R-5030                  S-4865
R-5082                  S-4812