Japan’s exports fell at the slowest pace in a year in

Japan’s exports fell at the slowest pace in a year in October as worldwide government spending boosted demand, sustaining the economic recovery. The broadest measure of the nation's economic growth grew at a slower pace last quarter than initially thought, adding to bets that the US recovery will be sluggish. US home prices rose 3.1% in the third quarter versus the second, but remained almost 9% lower versus a year ago, according to an S&P/Case-Shiller study of the 20 largest metropolitan areas. Prices rose 0.3% in September versus August, but fell versus a year ago. The US Consumer Confidence index rose to 49.5 in November from 48.7 in October versus forecasts for a reading of 47.5. The dollar weakened against higher- yielding currencies, reversing earlier gains, as renewed signs that the global economy is recovering spurred investors to buy riskier assets.

Domestic News:

Subir Gokarn, Deputy Governor of RBI warned that the Indian Economy is on a better footing compared to last year but recovery is still sluggish and not broad-based.
The Auction of 3G spectrum is likely to be deferred by a few weeks as the DoT and the defence ministry need to co-ordinate and assign the airwaves vacated by the armed forces. The Government has decided to double the limit of authorized capital in public sector banks to help some banks such as Uco Bank, Syndicate Bank, Oriental Bank of Commerce raise funds. The rupee gained 9 paise against the dollar to settle at Rs.46.37. RIL plans to fund its acquisition of LyondellBasell Industries by selling treasury stock. Unitech will raise USD700 million through foreign currency convertible bonds. The company has sought approval from DIPP and RBI to raise funds through convertible instruments. Hindalco has raised USD600 million from a qualified institutional placement of shares. JSW Steel may sell up to 40 per cent stake in its upcoming project in West Bengal. Infosys Technologies plans to stay away from top auto customers in its engineering services business and shift its focus from commoditized and price-sensitive projects. BHEL has bagged a Rs.5600 crore order for setting up the upcoming 1980MW Prayagraj Thermal Power Project. IL & FS’s open offer for acquiring an additional 20% stake in Maytas Infra opens today. Essar Oil is likely to seal the deal with Royal Dutch Shell to buy its three refineries – two in Germany and one in the UK. Infosys may acquire companies in Europe for USD400-500 million. The Central Bureau of Investigation has unearthed additional fraud of Rs.4739 crore in Satyam. Gujarat Fluorochem plans to invest Rs.500 crore in doubling its existing capacities in Bharuch, Gujarat. Sanghvi Movers has planned a capex of Rs.350 crore for FY’11. The company plans to acquire 60 new cranes.

Technical View:

Nifty: (5090): The index opened on a negative note and remained range bound throughout the day’s trading session. It ended the day with loss of 0.25%. The index exhibited range bound consolidation post its sharp upmove. It has closed around the 5100 level. On the upside index faces resistance around the 5150 level. Index can see consolidation around the current levels. On the downside index has support around 5050 level, intra day declines should find support around this level. Lower support is around 5000. Nifty Nov contract ends the day down by 21.05 points at a discount of 3.30 points in Nov contracts adding OI by 4.5% across all active Nifty contracts. Nifty Open Int PCR at 1.659 compared to 1.649 last day on back of addition of 15.18 Lakh Nifty puts and Lakhs calls. Nifty VIX at 26.09 from 26.69 the last day. Highest OI in Nifty put at 4800 Nov strike and calls is at 5100 Nov strike. FII side saw short build up in Nifty futures over the day and long build up in stock futures over the day. Long build up over the day seen DENABANK, HINDZINC, SINTEX, NAGARFERT & JSWSTEEL etc. Short build over the day seen in ASHOKLEY, TATASTEEL, KOTAKBANK, BEML, MOSERBAER, RELINFRA & JINDALSTEL etc. Market wide rollover seen at 44.56% compared to 3 month average of 40.79% and 37.80% last expiry. Nifty rollover at 53.50% compared to 50.69% in last expiry. 7.63% higher no of Nifty contracts ( 24601 contracts ) rolled over compared to the previous expiry.