The Bank of Japan left its benchmark interest rate at 0.1 percent at a policy meeting in Tokyo

International News:

The Bank of Japan left its benchmark interest rate at 0.1 percent at a policy meeting in Tokyo. Asian stocks fell for a fourth day, the longest losing streak since July, after Sony Corp. pushed back its profitability targets and Dell Inc. posted lower-than- estimated earnings. Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said Chinese growth is likely to be hurt by an absence of consumer demand from trading partners such as the U.S. Interest on U.S. debt is at $4.8 trillion.. More than half of the $9 trillion in debt that U.S is expected to build up over the next decade will be interest. In 2015 alone, the estimated interest due - $533 billion - is equal to a third of the federal income taxes expected to be paid that year. The Organisation for Economic Co-operation and Development(OECD) in its latest report has projected that the Indian Economy is expected to grow 7% in FY’10. Business Confidence among the country’s 545 large firms has surpassed even the level that prevailed before the global financial crisis hit sentiments, according to NCAER-Master-Card Worldwide Index of Business Confidence. Food Inflation stood at 14.6% for the week ended November 7, 2009 against 10% during the corresponding period last year. 3G auctions are expected to be on schedule, as per the Empowered Group of Ministers (EGoM).

Corporate news:

Corporation Bank, Andhra Bank and Dena Bank are amongst the prospective candidates for acquisition by large PSU Banks. Bhushan Steel may sell 5% stake for a consideration of Rs.400 crore. Suzlon has sold 35% stake in Belgian arm, Hansen for a consideration of Rs.1720 crore. These proceeds would be used by Suzlon to reduce its debt levels. JSW Steel has announced a strategic alliance with Japan’s second largest steel-maker, JFE Steel. Edelweiss and Tokio Marine have agreed to float a joint venture in the life insurance business and are expected to submit their application to the regulator shortly. HDFC expects interest rates to go up by 25 to 50 basis points in the first quarter of next fiscal. Setco Automotives is on the look-out for acquisitions in Europe and the US. NALCO is eyeing mineral properties in Namibia. NDTV Group has sold its stake in lifestyle subsidiary for USD55 million.

Technical View:

Nifty: (4989): The index opened on a negative note and declined throughout the day’s trading session. It ended the day with loss of 1.30%. The index witnessed profit taking around the 5050 level and saw sharp intra day decline. The level of 5050-5100 ia a stiff resistance level. On the downside index has support around 4950. Break below 4950 can see index test lower levels around 4900. Nifty Nov contract ends the day down by 68.45 points at a discount of 2.40 points paring OI marginally. Nifty Open Int PCR at 1.465 compared to 1.540 yesterday on back of paring of 24.41 Lakh Nifty puts and addition of 8.32 Lakh calls. Nifty VIX at 28.55 from 26.39 yesterday.
Highest OI in Nifty put at 4800 Nov strike and calls is at 5100 Nov strike. Nifty put option addition seen in 4700 Nov Strike. 5000, 4900, 5100 strike Nov puts pared OI. FII side saw short build up in Nifty futures stock futures and Nifty options was bought.