Nifty

#95 Nifty Update

NIFTY CLOSE:
·       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
IN-HOUSE UPDATES:
·      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.
GLOBAL FEEDS
·      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

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